International Trade
Non Tariff Measures
Non Tariff Measures (NTMs) are all measures other than normal tariffs namely trade
related procedures, regulations, standards, licencing systems and even trade defense
measures such as anti-dumping duties etc which have the effect of restricting trade
between nations. Some of these measures could be justified under the provisions or the
exceptions provided under the various multilateral agreements governing international
trade. On the other hand, certain non tariff measures which cannot be justified under any
of these legal provisions are normally termed as non tariff barriers (NTBs).
With the lowering of tariffs across the globe, NTMs have come into prominence with
Members using these measures to erect entry barriers for goods and services. It is
therefore, not surprising that the developed countries with relatively lower tariffs are the
more prolific users of NTMs / NTBs especially to keep out developing country exports.
The details of some of the major NTMs that are maintained against Indian exports are as
under:
Country
Item
Details of NTM
United States
Marine products
Increased inspections under the Bio-Terrorism
Act, Customs Bond requirement, Mandatory
labeling discriminating “farm raised” and “wild”
with punitive fines and non-recognition of EIC
certification.
United States
Paper products
Non scientific quarantine restrictions, customs
surcharges, eco labeling stipulations and food
safety/ health standards exist on paper
products exports.
United States
Tobacco
A TRQ regime restricts imports.
United States
Food products
Detailed labeling requirements are stipulated
with extensive product and content description.
Argentina
Processed Marine Products, Matches,
Insecticides, Fungicides, Plastics, Rubber,
Leather, Wood & Paper Products, Textiles &
Clothing, Headgear, Footwear, Articles Of
Iron & Steel, Mechanical & Electrical
Machinery, two wheelers, optical instruments,
furniture, toys, miscellaneous manufactured
articles
A new regulation (57 &58/2007 dated
24.08.2007) wherein minimum import price has
been established for specified product imports
from India and some other countries. Under this
the Argentine Customs authorities can ask for
validation of Indian customs invoice with a full
set of original documents if they suspect that
the invoiced value is less than the minimum
import price established.
Argentina
Pharmaceuticals
There is delay in registration leading to nonviability of exports.
Australia
Mangoes
Australia maintains ban on the pretext of the
presence of fruit flies and stone weevils.
Armenia
Agro chemicals and pharmaceuticals
Armenia stipulates registration requirements
and mandates permission for imports and
exports
Bangladesh
Poultry products
Bangladesh continues to ban imports despite
India gaining the avian influenza free status.
Brazil
Pharmaceuticals
Procedural delays occur in the clearances,
inspections and registration by the Brazilian
Health Surveillance Agency (ANVISA)
Canada
Chile
Paper products
Wheat, wheat flour and sugar
Non scientific quarantine restrictions, customs
surcharges, eco labeling stipulations and food
safety/ health standards exist on paper product
exports.
A complex price band system wherein a
minimum import price (well above the
international price and domestic prices) is
stipulated. On account of a WTO dispute
decision, this band would be lowered by 2%
every year from 2008 to 2014 after which a
Presidential review would be undertaken.
China
Agricultural products
Opacity of Sanitary and Phytosanitary (SPS)
measures and delays in giving clearances
Colombia
Pharmaceuticals
The registration by Colombian Drugs Control
and Certification takes 11 to 12 months,
inspections are undertaken for environmental
compliance and a 10% price preference is
granted for French pharmaceutical companies
under a bilateral agreement.
European
Communities
Bovine meat
Standards are more stringent than OIE (World
Organization for Animal Health) Terrestrial
Animal Health Code, a ban is maintained on
account of Foot and Mouth Disease (FMD) and
prolonged delay in upgradation of India’s status
to GBR1 (No risk of BSE)
European
Communities
Marine products
Rejection and subsequent destruction of
consignments with chloramphenicol / nitrofuran
residues, rejections in Italy and France due to
presence of Vibrio Parahaemolyticus without
judging the virulence factors, rejection due to
alleged presence of bacterial inhibitors/ antibiotic residues without any confirmatory tests.
European
Communities
Chemicals
The Registration, Evaluation and Authorisation
of Chemicals (REACH) legislation increases cost
of compliance by € 85,000 to € 325,000 per
chemical.
European
Communities
Engineering and Electronics
The stipulation of CE (originally known by the
French term Conformité Européenne) marking
to indicate conformity with the essential health
and safety requirements increases cost for
small and medium enterprises.
Japan
Footwear
The tariff rate quota (TRQ) restricts imports to
the quantum of the quota.
Korea
Chemicals, pharmaceuticals, computer and
medical equipment
Certification requirements (including prior
approval) add on to the cost of exports.
New Zealand
Paper products
Non scientific quarantine restrictions, customs
surcharges, eco labeling stipulations and food
safety/ health standards exist on paper
products exports.
Norway
Marine products
The pathogen analysis is carried out by the
NMKL method which is not accepted
internationally.
Russia
Meat products
Standards for bovine meat are more stringent
than the OIE Terrestrial Animal Health Code,
EIC Conformity certificates are not recognized
and Certification with respect to swine fever
and FMD are insisted upon for poultry exports
which are not relevant..
Ukraine
Bovine meat, coffee, tea, spices,
A compulsory certification with the option of
Uzbekistan
pharmaceuticals, cosmetics, plastics, leather
products, textiles & clothing
either (a) certificate of acceptance of foreign
certification by Derzh Standard or (b)
Conformance certificate by Ukrainian Agency.
Though ISO 9000 Standards are adopted by
Derzh Standard, foreign certification recognition
exists only to the extent of international treaty
obligations of Ukraine.
All products
Cumbersome procedure for registration and
certification, a custom processing fee @ 0.7%
of value and lengthy procedure for conversion
of hard currency as well as profit repatriation.
With a view to strengthening its information base on NTMs/ NTBs, the Department of
Commerce has attempted to put in place a database of NTMs/ NTBs imposed by trading
partners on its exports.
We would welcome inputs from the trade and industry, apex chambers of commerce,
export promotion councils, trade analysts, researchers etc on specific NTMs/ NTBs
imposed against Indian exports with a view to expanding this database.

Database of NTMs/ NTBs
i.
Country wise
ii.
Product wise

India
i.
ii.
iii.
iv.
v.
vi.
vii.
specific NTB Database based on study by ICRIER
Electric & Electronic products
Pharmaceuticals products
Product Specific requirements in the US
Product specific requirements in the EC
State Specific requirements in the US
State specific requirements in the EC
NTBs in the Gulf C00peration Council (GCC)