What do "Non-Tariff Barriers" refer to?

Non-tariff barriers refer to trade restrictions that do not involve the imposition of tariffs or taxes on imported goods. Instead, they encompass a variety of regulations, practices, and standards that countries use to control the amount and type of goods that can be imported or exported. These barriers can include quotas, which limit the quantity of a specific product that can enter a market, and other mechanisms such as import licensing, customs procedures, and technical standards that foreign goods must meet.

Understanding non-tariff barriers is crucial for customs brokers and trade professionals since these measures can significantly impact trade flows and market access without directly altering the financial costs through tariffs. Many countries utilize non-tariff barriers strategically to protect domestic industries from foreign competition, regulate product safety, and ensure compliance with local standards. This aspect makes them a significant factor in international trade negotiations and compliance.