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Product nomenclature and concordances
This glossary contains definitions and explanations of all technical terms used in MAcMap. In every glossary entry you will find the technical term marked in blue. This is a link to the source of the entry as well as to further information.
Ad valorem equivalent (AVE)
is a tariff presented as a percentage of the value of goods cleared through customs. It is the equivalent of a corresponding specific tariff measure based on unit quantities such as weight, number or volume. There are several methodologies for calculating AVEs. The method chosen depends on the intended application of the data. Most important to the process of calculating an AVE is the way the Unit Value of the product is calculated. The unit value is the value of each unit quantity imported of a product. It is based on the total value of imports of that product divided by the quantity of imports.
Ad valorem equivalent (AVE) calculated in MAcMap
In Market Access Map, all non ad valorem (NAV) applied tariffs are converted to ad valorem equivalents (AVEs) according to the unit value (UV) based method. This means that AVEs are calculated by dividing a given NAV tariff per unit by the value of the product per unit. For more information on this calculation method, see the
Additional taxes and charges
Additional taxes and charges are additional charges, which are levied on imported goods in addition to customs duties and surcharges and which have no internal equivalents. They include tax on foreign exchange transactions, stamp taxes, import licence fees, consular invoice fees, statistical taxes and tax on transport facilities.
Administrative pricing refers to the fixing of import prices by the authorities of the importing country by taking into account the domestic prices of the producer or consumer (e. g. establishing floor and ceiling price limits; reverting to determined international market values). There may be different price fixing methods, such as minimum import prices or prices set according to a reference. See also
Price control measures
is a tariff calculated as a percentage of the value of goods cleared through customs. For example, 15 percent ad valorem tariff means 15 percent of the value of the entered merchandise.
Advance import deposit
An advance import deposit is a requirement that the importer should deposit a percentage of the value of the import transaction before receiving the goods: no interest is paid on the deposits (e.g. a payment of 50% of the transaction value is required three months before the expected arrival of the goods to the port of entry). See also
Advance payment of customs duties
Advance payment of customs duties is a requirement to pay all or part of the customs duties in advance. However, no interest is paid on these advance payments (e.g. payment of 100% of the estimated customs duty is required three months before the expected arrival of the goods to the port of entry).
Advance payment requirements
Advance payment requirements related to the value of the import transaction and/or related import taxes. These payments are made at the time an application is lodged, or when an import licence is issued. See also
African Growth and Opportunity Act (AGOA)
passed as part of The Trade and Development Act of 2000 provides beneficiary countries in Sub-Saharan Africa with liberal access to the U.S. market for a list of products. Originally set to expire in 2008, the AGOA Acceleration Act of 2004 extended the legislation to 2015. Currently,
have been designated as AGOA eligible.
African, Caribbean and Pacific Countries (ACP)
is a group of countries with preferential trading relations with the EU under the former Lomé Treaty now called the Cotonou Agreement. There are currently 79
Andean Community (CAN)
CAN (Comunidad Andina)
is an arrangement between Bolivia, Colombia, Ecuador and Peru for the coordination of economic policies including the formation of a free trade zone in the Andean region. The trade bloc was established in 1969 with the signing of Cartagena Agreement and was called the Andean Pact until 1996.
Anti-competitive measures are levied to grant exclusive or special preferences or privileges to one or more limited group of economic operators. They include for example restrictive import channels (e.g. Imports of salt and tobacco are reserved for the respective state trading companies) and compulsory national service (e.g. A requirement that imports must be carried by a national shipping company).
Anti-dumping duties are levied on certain goods originating from specific trading partner(s) to offset the dumping margin. Duty rates are generally enterprise-specific (e.g. an antidumping duty of between 8.5 to 36.2% has been imposed on imports of “biodiesel products”).
An anti-dumping measures is a counter measure taken against a dumping action of an exporter. It is considered that dumping takes place when a product is introduced into the commerce of an importing country at less than its normal value, i.e. if the export price of the product exported is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country.
Applied tariffs or
applied tariff rates
are considered to be the tariff rates applied by a customs administration on imported goods. They are the rates published by national customs authorities for duty administration purposes. These rates are often considerably lower than the bound rate established as a result of trade negotiations or than the rate listed in the national tariff schedules. They can also be lower than the MFN rate. Applied tariff rates also include the preferences that a country may apply to certain trading partners as a result of a bilateral or regional trade agreement.
ASEAN Free Trade Area (AFTA)
includes Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
Asia-Pacific Economic cooperation (APEC)
is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. It has
and works to reduce tariffs and other trade barriers across the Asia-Pacific region.
Asia-Pacific Trade Agreement
Asia-Pacific Trade Agreement
is a regional trade agreement between Bangladesh, China, India, Republic of Korea, Lao People's Democratic Republic and Sri Lanka. The agreement was formed in 1975 and was originally called the Bangkok Agreement (until 2005).
Asociacion Latinoamericana de Integraction (ALADI)
(English: Latin American Integration Association, LAILA)
is the largest Latin-American group of integration. It has twelve member countries: Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela. The 1980 Montevideo Treaty (TM80) is the global legal framework that constitutes and rules the ALADI and was signed on August 12th 1980. It establishes the following general principles: pluralism, convergence, flexibility, differential treatment and multiplicity. The ALADI promotes the creation of an area of economic preferences in the region, aiming at a Latin-American common market.
Association of Southeast Asian Nations (ASEAN)
, established in 1967, is a regional political and economic organization comprising: Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam.
Asia-Pacific Trade Agreement
Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
. The Basel Convention lays down rules to control, at an international level, transboundary movements of wastes hazardous to human health and the environment, and their disposal.
is an agreement between two countries, as opposed to a multilateral agreement.
Quotas reserved for a specific exporting country (e.g. maximum of 1 million tons of wheat may be imported from Country A).
Binding coverage is the percentage of product lines with an agreed
bound tariff rates
are a commitment not to increase a rate of duty beyond an agreed level. Once a rate of duty is bound, it may not be raised without compensating the affected parties.
Bound rates or bound tariffs represent the upper threshold to which a country is allowed to raise its tariff on an item, as committed under the GATT. This commitment is called
is a group of agricultural exporting nations comprising Australia, Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand and Uruguay which was established to develop a common negotiating position for the Uruguay round. It aims to achieve fair trade in agricultural exports.
Caribbean Basin Initiative (CBI)
provides for tariff exemptions or reductions for most products from
countries in Central America and the Caribbean region. The CBI trade preferences are not subject to annual reviews. Countries can lose their CBI benefits under certain conditions. This program was enacted by the United States as the Caribbean Basin Economic Recovery Act. This Act became effective on January 1, 1984.
Caribbean Basin Trade Partnership Act (CBTPA)
is a U.S. law which came into force in October 2000, outlining enhanced trade preferences and eligibility requirements for the
17 beneficiary countries
of the Caribbean Basin region.
Caribbean Common Market (CCM)
Caribbean Community (CARICOM)
Caribbean Community (CARICOM)
In 1972, Commonwealth Caribbean leaders decided to transform the Caribbean Free Trade Association (CARIFTA) into a Common Market and establish the
, of which the Common Market would be an integral part. The objectives of the Community are: to improve standards of living and work; the full employment of labour and other factors of production; accelerated, coordinated and sustained economic development and convergence; expansion of trade and economic relations with third States; enhanced levels of international competitiveness; organisation for increased production and productivity; achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description and the enhanced co-ordination of Member States’ foreign and foreign economic policies and enhanced functional co-operation. Current members of CARICOM are: Antigua and Barbuda, The Bahamas, Barbados, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Suriname, Saint Lucia, St. Christopher and Nevis, St. Vincent and the Grenadines and Trinidad and Tobago.
Cash margin requirement
A cash margin requirement is a regulation to deposit the total amount of the transaction value in a foreign currency, or a specified part of it, in a commercial bank, before the opening of a letter of credit (e. g. deposit of 100% of the transaction value is required at the designated commercial bank). See also
Central African Economic and Customs Union
Union Douaniere et Economique de l'Afrique (UDEAC)
Central African Economic and Monetary Community (CAEMC)
is a regional trade agreement comprising Cameroon, Central African Republic, Chad, Congo, Equatorial, Guinea and Gabon.
Central American Common Market (CACM)
is a preferential trade arrangement between Guatemala, El Salvador, Honduras, Nicaragua, Panama and Costa Rica.
Central European Free Trade Agreement (CEFTA)
is a free trade agreement initiated 2006 among Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Moldova, Montenegro, Serbia and the United Nations Interim Administration Mission in Kosovo.
Closer Economic Relations Agreement (CER)
(also known as The Australia New Zealand Closer Economic Relations Trade Agreement or ANZCERTA) between Australia and New Zealandis the main instrument governing economic relations between the two countries. It entered into force in 1983 and was by design intended to be an outward-looking trade agreement. Its central provision is the creation of a World Trade Organization (WTO)-consistent Free Trade Area consisting of Australia and New Zealand. The CER Agreement was built on a series of preferential trade agreements between Australia and New Zealand, including the 1966 New Zealand Australia Free Trade Agreement (NAFTA).
Common external tariff
A tariff rate that is applied uniformly by a common market or customs union to imports from countries outside the union. The European Common market for example is a free internal trade area with a common external tariff applied to products imported from non-member countries. A common external tariff is not necessarily a feature of "free trade areas" and is seldom a feature of free trade agreements.
Common Market for Eastern and Southern Africa (COMESA)
was formed in 1994 to replace the former Preferential Trade Area (PTA). Its main focus is on the formation of a large economic and trading unit that is capable of overcoming some of the barriers that are faced by individual states. COMESA consists of
19 countries in Eastern and Southern Africa
. In order to increase trade liberalisation and customs cooperation members aim among others to establish a customs union, establish a common external tariff and cooperate in customs procedures.
Commonwealth of Independent States (CIS)
is a free association of Russian Federation and 11 other former Soviet states. It was formed in 1991 and its members include: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, the Republic of Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. In 1993 its members agreed on the creation of an economic union allowing the free movement of goods, services, labour and capital.
Communauté économique et monétaire de l'Afrique Centrale (CEMAC)
Central African Economic and Monetary Community (CAEMC)
is a tariff that combines an ad valorem duty to which is added or subtracted a specific duty (e.g.: 10% plus $2 per kg; 20% less $2 per kg).
contains trade statistics managed by the United Nations Statistics Division (UNSD). The United Nations Commodity Trade Statistics Database (UN Comtrade) contains detailed imports and exports statistics reported by statistical authorities of close to 200 countries or areas. It concerns annual trade data from 1962 to the most recent year.
Cost, Insurance and Freight (CIF)
stands for the price of a traded good including transport cost. It means that a price includes the various costs, such as transportation and insurance, needed to get a good from one country to another.
is also called the ACP-EC partnership agreement. A partnership agreement between the members of the African, Caribbean and Pacific group of states and the European Community and its members states. It was signed in Cotonou, Benin, on 23 June 2000. The agreement covers many aspects including trade cooperation.
are intended to offset any direct or indirect subsidy granted by authorities in the exporting country. These may take the form of countervailing duties or undertakings by the exporting firms or by authorities of the subsidizing country.
Custom surcharges are an ad hoc tax imposed in addition to customs tariff to raise fiscal revenues or to protect domestic industries (e.g. surtax or additional duty).
are tariffs levied at the border on goods entering or leaving the country. These charges are specified in the national tariff schedule. They are usually based on the value of the goods known as ad valorem tariffs and sometimes as a cost per unit in the form of a specific tariff.
is a form of agreement where members apply a common external customs tariff.
Decreed customs valuation
A decreed customs valuation is a practice to determine the value of goods by a decree for the purpose of imposition of customs duties and other charges. It is applied as a mean to avoid fraud or to protect domestic industry. The decreed value de facto transforms an ad-valorem duty into a specific duty (e. g. the so-called "valeur mercuriale" in Francophone countries). Decreed customs valuation can be appealed according to the WTO rules.
is a term usually applied to the the top group in the hierarchy of developed countries (DCs), former USSR/Eastern Europe (former USSR/EE) and less developed countries (LDCs). This classification currently includes
. For a similar categorization see the term of
used by the International Monetary Fund (IMF).
is an imprecise term based as much on economic and social foundations as on political perceptions and aspirations. The main criteria used by the WEO to classify the world into advanced and emerging economies are per capita income level, export diversification and degree of integration into the global financial system. These are not the only factors considered in deciding the classification of countries. There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system. However, currently
are classified as developing countries by the United Nations Statistics Division (UNSD).
Development Assistant Committee (DAC)
For 50 years now, the
has grouped the world’s main donors, defining and monitoring global standards in key areas of development. The Development Co-operation Directorate (DCD) contributes to developing policies for better lives through transparent data on development finance, and improved development co-operation practices and policies. Together, DAC and DCD have played a role in forging major international development commitments, including the Millennium Development Goals and the Paris Declaration on Aid Effectiveness.
Development Co-operation Directorate (DCD)
Development Assistant Committee (DAC)
occurs when goods are exported at a price less than their normal value, generally meaning they are exported for less than they are sold in the domestic market or third-country markets, or at less than production cost
East African Community (EAC)
is the regional intergovernmental organisation of Kenya, Uganda, the United Republic of Tanzania, Rwanda and Burundi with its headquarters in Arusha, Tanzania.
Economic Community of West African States (ECOWAS)
is a regional group of fifteen countries and was founded in 1975. Its mission is to promote economic integration in all fields of economic activity; particularly industry, transport, telecommunications, energy, agriculture, natural resources, commerce, monetary and financial matters as well as social and cultural issues. Members include: Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
Economic Cooperation Organization (ECO)
is an intergovernmental regional organization established in 1985 by Iran, Pakistan and Turkey for the purpose of promoting economic, technical and cultural cooperation among the
Economic Partnership Agreements (EPA)
is supposed to be special trade agreements which, like the Cotonou Agreement that spawned them, aim mainly to ensure the development of ACP countries and their gradual integration into the global economy. They must be compatible with the rules of the World Trade Organisation. In addition to the gradual nature of any trade liberalisation among ACP countries, the EPAs must fulfil a second criterion, i.e. asymmetry, which means that they must take account of the difference in the levels of social and economic development between the European Union and ACP countries. At the same time, the European Union will assist ACP countries and businesses to implement the necessary structural and macro-economic reforms, by building their capacities so as to enable them to better cope with the challenges of competition and globalization.
Effective level of protection
effective rate of protection
attempts to measure the protection on the value-added of an industry, by comparing the amount available to pay primary factors of production in the presence and absence of a tariff regime.
occures when aggregation of tariffs from the HS 6-digit level up to the HS 4 and HS 2-digit level takes into account import values. In theory, tariffs should be aggregated for imports occurring under a hypothetical situation of free trade. As this is not the case in practice, tariff aggregations, using national imports as weights, cause a distorted perspective on the level of protection since these imports depend on the tariff. That is, a high tariff generates limited imports and therefore the tariff contribution to the overall protection level of the country is reduced. A low tariff produces the reverse effect. So, using national imports as weights leads to an underestimation of the protection level of a country. Market Access Map manages this endogeneity bias by weighting the imports of a country by the trade pattern of a Reference Group to which the country belongs. That is, the Reference Group’s imports of the product from the world, is used as the weighting.
EU Export Helpdesk
is an online service, provided by the European Commission to facilitate market access in particular for developing countries to the European Union. This free service provides information required by exporters interested in supplying the EU market.
Eurasian Economic Community (EAEC)
is a regional trade agreement between Belarus, Kazakhstan, Kyrgyzstan, the Russian Federation and Tajikistan. EAEC seeks to effectively promote the process of creating the free trade regime, introducing common customs tariff and harmonizing non tariff regulation and creating the common customs area with the common system of customs regulation and the common management of the customs services.
Europe from 1995
In 1995, Austria, Finland and Sweden joined the EU.
Europe from 2004
In 2004, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia joined the EU.
European Economic Area (EEA)
is composed of the 27 member states of the European Union and three of the four members of EFTA (Iceland, Liechtenstein and Norway). It allows the EFTA States to participate in the Internal Market on the basis of their application of Internal Market relevant acquits. All new relevant community legislation is dynamically incorporated into the agreement and thus applies throughout the EEA, ensuring the homogeneity of the Internal Market.
European Economic Community (EEC)
Treaty, signed in Rome in 1957, brings together France, Germany, Italy and the Benelux countries in a community whose aim is to achieve integration via trade with a view to economic expansion. After the Treaty of Maastricht the EEC became the European Community, reflecting the determination of the Member States to expand the Community's powers to non-economic domains.
European Free Trade Association (EFTA)
is an intergovernmental organisation set up for the promotion of free trade and economic integration to the benefit of its four member states Iceland, Liechtenstein, Norway and Switzerland.
European Union (EU)
is created by the treaty of Maastricht signed in 2002. The EU consists of three parts: (i) the European Community, (ii) a common foreign and security policy, and (iii) cooperation in the fields of justice and home affairs. Only the European Community has a legal personality and can sign international agreements. The 25 members of the EU are: Austria, Belgium, Bulgaria, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Rumania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom. Member states have eliminated tariffs among themselves and established a common external tariff against non-members.
Everything But Arms (EBA)
is a European Union initiative for duty-free and quota-free access to all products except arms and ammunition originating in least developed countries. It took effect on 5 March 2001 for all products. Sugar, rice and bananas have quantitative restrictions for a limited period.
Export restrictions are restrictions to the quantity of goods exported to a specific country or countries by the government of the exporting country for reasons such as a shortage of goods in the domestic market, regulating domestic prices, avoiding antidumping measures or for political reasons.
Finance measures are intended to regulate the access to and cost of foreign exchange for imports and define the terms of payment. They may increase import costs in the same manner as tariff measures.
Free on Board (FOB)
means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer hast to bear all costs and risks of loss or of damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can be used only for sea or inland waterway transport.
Free trade agreement (FTA)
free trade area
Free trade area
Free trade area
is a group with duty free trade. However, member set their own tariffs on imports from non-members (e. g. NAFTA).
General Agreement on Tariffs and Trade (GATT)
has been superseded as an international organization by the WTO. An updated General Agreement is now the WTO agreement governing trade in goods. GATT 1947 is the official legal term for the old (pre-1994) version of the GATT. GATT 1994 is the official legal term for the new version of the General Agreement, incorporated into the WTO, and including GATT 1947.
is a duty on a product levied against imports from a country that is not granted most favored nation status and is not subject to a preferential arrangement. Therefore, when a country is not a member of the World Trade Organization (WTO) only general tariffs and preferential tariffs are available.
Generalized System of Preferences (GSP)
which is in force since 1971 grants tariff preferences for developing countries, by which developed countries let certain manufactured and semi-manufactured imports from developing countries enter at lower tariffs than the same products from developed countries. There are currently
13 national GSP schemes
notified to the UNCTAD secretariat.
is an import quota that specifies the permitted quantity of imports from all sources combined. This may be without regard to country of origin, and thus available on a first-come-first-served basis, or it may be allocated to specific suppliers.
Global Trade Analysis Project Consortium (GTAP)
was established in 1993 as a global network of researchers and policy makers conducting quantitative analysis of international policy issues. GTAP is coordinated by the Center for Global Trade Analysis in Purdue University's Department of Agricultural Economics. GTAP's goal is to improve the quality of quantitative analysis of global economic issues within an economy-wide framework. There are currently 28
Government procurement is the purchase of goods and services by the government and by state-owned enterprises.
Group of 20 (G20)
is the premier forum for international cooperation on the most important aspects of the international economic and financial agenda. It brings together the world’s major advanced and emerging economies: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States of America and the European Union.
Group of 7 (G7)
is the group of seven leading industrial countries: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America.
Group of 77 (G77)
was established on 15 June 1964 by seventy-seven developing countries signatories of the “Joint Declaration of the Seventy-Seven Countries” issued at the end of the first session of the United Nations Conference on Trade and Development (UNCTAD) in Geneva. It now has
. The Group of 77 is the largest intergovernmental organization of developing countries in the United Nations, which provides the means for the countries of the South to articulate and promote their collective economic interests and enhance their joint negotiating capacity on all major international economic issues within the United Nations system, and promote South-South cooperation for development.
Gulf Coopoeration Council (GCC)
was established in 1981. It consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. These members have established a free trade area covering industrial and agricultural products; but not petroleum products. A customs union was established in 2003.
Harmonized System (HS)
is an international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonised System for classifying goods is a six-digit code system. The HS comprises approximately 5000 article/product descriptions that appear as headings and subheadings, arranged in 97 chapters, grouped in 21 sections. The six digits can be broken down into three parts. The first two digits (HS-2) identify the chapter the goods are classified in, e.g. 09 = Coffee, Tea, Maté and Spices. The next two digits (HS-4) identify groupings within that chapter, e.g. 09.02 = Tea, whether or not flavoured. The next two digits (HS-6) are even more specific, e.g. 09.02.10 Green tea (not fermented) in immediate packings of a content not exceeding 3 kg. Up to the HS-6 digit level, different countries classification codes are identical. Beyond this, countries are free to introduce national distinctions for tariffs by adding more digits to make the HS classification of products even more specific. This greater level of specificity is referred as the national tariff line level. For example the United States of America adds another four digits to its exports and imports to classify them in greater depth. The Harmonised System was formally known as the Harmonised Commodity Description and Coding System. It was developed by the World Customs Organization and has been adopted by most trading nations
Hygienic requirements are regulations related to food quality, composition and safety, which are usually based on hygienic and good manufacturing practices, recognized methods of analysis and sampling: The requirements may be applied on the final product or on the production processes. Example: requirements on water quality, use of detergents and hygienic quality of equipment in the cow-milking farm.
Import monitoring is a measure to monitor the
import value and volume of specified products. It may be applied with the purpose of signalling concern over import surges (e.g.
automatic import licence on textile and apparel imports).
Initial Negotiating Rights (INR)
is the right of a WTO member to ask for tariff concessions by another member in a WTO negotiating round even though it is not the principal supplier. INRs are valuable negotiating tools for countries with important trade interests in a product or commodity, though these rights no longer hold the importance they once had in trade negotiations. The question of who has initial negotiation rights does not arise in the case of a formula approach (for example linear tariff cuts) because all participants agree to cut tariffs on specified product categories by a given percentage rate, regardless of their importance to any given trading partner. It may however come up in subsequent bilateral negotiations. WTO members have therefore agreed to create so-called floating initial negotiating rights. These are initial negotiating rights that would be enjoyed by members having principal supplier rights at the time of the renegotiation of a tariff item that had earlier been subject to linear cuts.
Inside-quota tariff rate (IQTR)
The tariff rate applicable to a product imported within the limits of a tariff quota.
An inspection requirement is a requirement for product inspection in the importing country. It may be performed by public or private entities. It is similar to testing, but it does not include a laboratory testing (e.g. a requirement to inspect animals or plant parts before entry is allowed).
Intellectual property are products of the mind, such as inventions, works of art, music, writing, film, etc.
Internal taxes and charges levied on imports
GATT Article III permits the application of
internal taxes and charges on imports
so long as they are treated in the same way as domestic production. The general sales tax levied on imports is the equivalent of those internal taxes that are applied to all or most products. There are three types of internal taxes: sales tax, which is an ad valorem tax based on the gross receipt of sales of goods; turnover tax, which is a tax imposed at more than one level of production and distribution and is based on grow receipts, resulting in a cumulation of taxes; value added tax, which is a modified turnover tax based on the net value added instead of on the gross receipts, avoiding the cumulation of taxes and not affecting the price structure and the allocation of resources. The excise tax levied on imports is the equivalent of the excise tax on domestic products, which is an internal tax imposed on selected products, usually of a luxurious or non-essential nature, such as alcoholic beverages and tobacco. This tax is levied separate from, and in addition to, the general sales taxes. Sumptuary taxes, luxury taxes, commodity or consumption taxes all have the same nature as the excise tax. In some countries the consumption tax is similar to a sales tax, being applicable to all products, while in other countries, generally applied taxes are sometimes called excise taxes. Charges for sensitive product categories include emission charges, product taxes and administrative charges. These latter charges are meant to recover the costs of administrative control systems. These various charges normally have an internal equivalent.
International Monetary Fund (IMF)
is an international organization of
187 member countries
. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment.
International Trade Centre (ITC)
is the technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for operational, enterprise-oriented aspects of trade development. ITC supports developing and transition economies, and particularly their business sector, in their efforts to realize their full potential for developing exports and improving import operations. ITC works in six areas: Product and market development; Development of trade support services; Trade information; Human resource development; International purchasing and supply management; and Needs assessment, programme design for trade promotion.
Labelling requirements are measures defining the information, which should be provided to the consumer. Labelling is any written, electronic, or graphic communication on the consumer packaging or on a separate but associated label (e.g. labels that specify the storage conditions; 5 degree C maximum, or room temperature for dry foods).
Latin American Integration Association (LAIA)
Asociacion Latinoamericana de Integraction (ALADI)
League of Arab States
Leage of Arab States
is an association of mainly Arabic-speaking countries founded in Cairo in 1945 to strengthen ties among the members, coordinate policies among them, and promote their common interests. As of July 2010, it had 22 members: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauretania, Morocco, Oman, State of Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria (participation was suspended in November 2011), Tunisia, United Arab Emirates and Yemen.
Least developed countries (LDC)
are a group of
determined on the basis of the following indicators: Low-income , nutrition, health, education, adult literacy rate, population size, remoteness, merchandise export concentration, share of agriculture, forestry and fisheries, in GDP, share of population living in low elevated costal zones, instability of exports of goods and services, victims of natural disasters, instability of agricultural production. The Committee for Development Policy (CDP), a subsidiary body of the UN Economic and Social Council, is – inter alia - mandated to review the category of LDCs every 3 years and monitor their progress after graduation from the category. The list of least developed countries therefore varies.
Licence combined with or replaced by special import authorization
Licence combined with or replaced by special import authorization means that a special import authorization required, in addition to or instead of, a licence issued by the main licensing body (usually the Ministry of Trade). This authorization or a requirement for an inscription in a register is required by a specialized authority which is coordinating the sector of the domestic economy related to the concerned products (e. g. A special import authorization from the Ministry of Agriculture is required to import rice).
Licence for specific use
A licence for specified use is a licence granted only for imports of products to be used for pre-specified purpose. Normally granted for use in operations generating anticipated benefit in important domains of the economy (e.g. licence to import steel is granted only if it is used for the construction of a bridge).
Licence linked with local production
A licence linked with local production is a licence granted only for imports of products with linkage to local production (e.g. licence to import coal is granted only if it is used for the production of electricity).
Licence linked with non-official foreign exchange
A licence linked with non-official foreign exchange is a licence granted only if non-official foreign exchange is used for the import payment.
Licence with no specific ex-ante criteria
A licence with no specific ex-ante criteria is a licence issued at the discretion of the issuing authority. It may also be referred to as a discretionary licence (e.g. imports of automobiles are subject to discretionary licence).
Linear reduction formula
Linear reduction formula
is a formula for achieving linear tariff cuts. The reduction in tariffs is the size of reduction linearly related to the initial tariff: %Δ
, where %Δ
is the percent reduction in the tariff,
is the initial tariff, and
Linear tariff cut
linear tariff cut
is a reduction in tariffs with the size of reduction linearly related to the initial tariff. The cut usually takes place by a given percentage, of equal magnitude, across whole classes of products, with or without exceptions for products deemed to be sensitive. Sometimes the linear tariff cut is referred to as horizontal reduction of tariffs, across-the-board reduction of tariffs or equal percentage reduction of tariffs. The linear reduction formula is one of the possible formula approaches. The simplest linear cut, a horizontal reduction, reduces all tariffs by the same percentage.
Local content measures
Local content measures are requirement to use certain minimum levels of locally made component, restricting the level of importing components (e.g. Imports of clothing is allowed only if more than 50% of the materials used are originating from the importing country).
Marking requirements are measures defining the information for transport and customs that the packaging of goods should carry (e.g. country of origin, weight, special symbols for dangerous substances, etc).
Melanesian Spearhead Group Trade Agreement (MSG Trade Agreement)
MSG Trade Agreement
is a preferential trade arrangement between four Melanesian states concluded in 1999. Members include Fiji, Papua New Guinea, Solomon Islands and Vanuatu.
Members of the Kimberley Process (KP)
is a joint governments, industry and civil society initiative to stem the flow of conflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate governments. The trade in these illicit stones has fuelled decades of devastating conflicts in countries such as Angola, Cote d'Ivoire, the Democratic Republic of the Congo and Sierra Leone.
Mercado Común del Sur (MERCOSUR)
(South American Common Market) is a customs union covering trade in goods except sugar and automobiles. Members are Argentina, Brazil, Paraguay, and Uruguay. Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela have joined Mercosur as Associate members. MERCOSUR objectives include the free transit of all goods, services and the factors of production, and the lifting of non-tariff restrictions.
are partner country data that ITC uses for countries that do not report trade data to United Nations. Mirror statistics is better than no data at all but there have a number of shortcomings. They do not cover trade with other non-reporting countries and mirror statistics invert the reporting standards by valuing exports in cif terms and imports in fob terms.
is a rate of duty that is based on a conditional choice between an ad valorem duty and a specific duty, subject to an upper (ceiling) and/or a lower (floor) limit (e.g.: 30% or £2 per kg, whatever is the highest).
Agreed in 1987 following the discovery of the “ozone hole”, the
protects the ozone layer from damage caused by certain industrial chemicals known as ozone-depleting substances (ODS). The Protocol will, by the end of 2009, have banned production of chlorofluorocarbon (CFC) refrigerants and solvents and halon fire extinguishants. It has set a clear timetable for phasing out other harmful substances such as hydrochlorofluorocarbons (HCFCs) and methyl bromide.
Most-Favoured-Nation tariffs (MFN tariffs)
tariffs are the tariffs applied by WTO members to goods from other WTO members. In the case of WTO non members, the application of these rates may be a requirement of a bilateral trade agreement. Article 1 of the General Agreement on Tariffs and Trade (GATT) lays down the principle of Most Favoured Nation treatment (MFN). The MFN clause states that a member of the GATT must treat all GATT members equally. The WTO is the successor of the GATT and the WTO’s rules derive from the outcome of the 1986-94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT). So the application of the MFN principle is required of WTO members. Every time a WTO member improves the benefits that it gives to one trading partner, it has to give the same "best" treatment to all other WTO members, so that they remain equal. Countries are to grant equal treatment - not more favourable or discriminatory - to goods and services from all WTO members. The MFN principle applies to all tariffs - whether or not they have been subject to negotiations between GATT members - as well as to all policy measures affecting imports or exports.
However, there are some exceptions to the MFN principle.
GATT article XXIV allows countries that are seeking regional integration to reduce their tariffs below the MFN rate if the following conditions are met: tariff and other barriers to trade among the contractors of the agreement must be eliminated substantially for all products within a reasonable period of time; regional integration must not worsen the market access conditions granted to other WTO members previous to the enforcement of the agreement.
Derogations to the MFN treatment are also conceded to developing countries, in respect of specific conditions, by the signatories of the GATT (i.e. Contracting Parties) Decision of 25 June 1971, relating to the establishment of "Generalized, non-reciprocal and non-discriminatory preferences beneficial to the developing countries" (BISD 18S/24) and the Decision of 28 November 1979 on "Differential and More Favourable Treatment, Reciprocity, and Fuller Participation of Developing Countries" (L/4903), also known as the "Enabling Clause”.
Another exception derives from the Marrakesh Agreement (establishing the World Trade Organization) article XIII which, under specific conditions, allows for the case of non-application of MFN treatment between original Members of the WTO, which were contracting parties to GATT 1947, and countries that made their accession later (article XII).
Most-Favoured-Nations treatment (MFN treatment)
is the rule, usually established through a trade agreement, that a country gives each of the trading partners with which it has concluded relevant trade agreements the best treatment it gives to any of them in a given product. MFN is not in itself an obligation to extend any favourable treatment to another party, nor is it an obligation to negotiate for better treatment. The fundamental point of MFN therefore is equality of treatment of other countries, and in some older treatises it is called "foreign parity".
is a tariff schedule that discriminates between the various trading partners. Tariff rates in the first column might be reserved for countries not receiving most-favoured-nation treatment (MFN) and the second column for countries accorded MFN. The third and additional columns would contain the rates applicable to various preferential trade arrangements, such as free-trade area partners or those given to developing countries under the Generalized System of Preferences.
Multilateral trade agreements
are intergovernmental agreements aimed at expanding and liberalising international trade under non-discriminatory, predictable and transparent conditions set out in an array of rights and obligations.
Multilateral trading system
multilateral trading system
is a non discriminatory arrangement for international trade which came into existence with the GATT in 1947 and which is now represented by the WTO system.
Multiple exchange rates
Multiple exchange rates are varying exchange rates for imports, depending on the product category. Usually, the official rate is reserved for essential commodities while the other goods must be paid at commercial rates or occasionally by buying foreign exchange through auctions (e.g. only the payment for infant food and staple food imports may be made at the official exchange rate).
National Tariff Line
National Tariff Line codes refer to the classification codes, applied to merchandise goods by individual countries, that are longer than the HS six digit level. Countries are free to introduce national distinctions for tariffs and many other purposes. The national tariff line codes are based on the HS system but are longer than six digits. For example, the six digit HS code 010120 refers to Asses, mules and hinnies, live, where as the US National Tariff line code 010120.10 refers to live purebred breeding asses, 010120.20 refers to live asses other than purebred breeding asses and 010120.30 refers to mules and hinnies imported for immediate slaughter.
Nominal tariff rate
nominal tariff rate
is the tariff rate appearing in a country's tariff schedule for a given product. It may differ from the applied tariff rate (the tariff rate actually levied by the customs administration when the product is imported).
Non-ad valorem tariffs (NAV)
non ad-valorem tariff
is a tariff that is not expressed as a percentage of the price or value. This can refert to a specific, compound, mixed or some other form of a tariff. These other forms can be determined by complex technical factors. The duty can be based on the percentage content of the agricultural component (e. g. sugar, milk, alcohol content, etc.) or its strength (e.g. the degree of sweetness).
A non-automatic licence is an import licence which is not granted automatically. The licence may either be issued on a discretionary basis or may require specific criteria to be met before it is granted.
Non-tariff barriers (NTB)
NTBs are measures negatively affecting international trade.
Non-tariff measures (NTMs)
NTMs include a wide category of instruments such as sanitary and phytosanitary measures (SPS), technical barriers of trade (TBT), quotas, anti competitive measures, import or export licenses, export restrictions, custom surcharges, financial measures, antidumping measures, etc. For regulations required by private entities see
North American Free Trade Agreement (NAFTA)
was established in 1994. Its members are Canada, Mexico and the United States of America. NAFTA's objectives include the elimination of barriers to trade in goods and services and the gradual phasing out of tariffs. In January, 2008 all remaining duties and quantitative restrictions among its members were eliminated.
is a tariff so low that it costs the government more to collect it than the revenue it generates. Sometimes, a tariff that does not have any protective effect — some countries defend this as necessary in order to raise revenues.
Organisation for Economic Co-operation and Development (OECD)
was established in 1961 as the successor to the Organisation for European Economic Cooperation (OEEC). It's members account for more than 70% of global output. The OECD currently has
34 member countries
Organisation of Islamic Cooperation (OIC)
(formerly Organization of the Islamic Conference) is the second largest inter-governmental organization after the United Nations which has
membership of 57 states
spread over four continents. The Organization was established in Rabat, Kingdom of Morocco on 25 September 1969.
Outside quota tariff rate (OQTR)
is the tariff rate applicable to products imported in excess of a tariff quota. This rate is meant to discourage imports above the quota limit. It is usually much higher than the one applied to imports within the quota.
Overseas Countries and Territories (OCT)
According to Part IV of the EC Treaty,
s of the member states of the European Union are associated with the European Union since 1964. There are
s listed in the annex to the EC Treaty. Based on the EC Treaty, the EU Council or General Council unanimously takes a decision as to the legal arrangements applicable to the political association of the OCTs with the European Union. This Decision is commonly referred to as the OCT Decision.
Pacific Islands Forum
Pacific Island Forum
represents Heads of Government of all the independent and self-governing Pacific Island countries, Australia and New Zealand. Since 1971 it has provided member nations with the opportunity to express their joint political views and to cooperate in areas of political and economic concern. There are currently
16 member countries
Packaging requirements are measures regulating the mode in which goods must or cannot be packed, or defining the packaging materials to be used (e.g. Restricted use of PVC films for food packaging).
Para-tariff measures are other than tariff measures that increase the cost of imports in a similar manner. These measures include customs surcharges, additional taxes and charges (e.g. tax on foreign exchange transactions, stamp tax,...), service charges, internal taxes and charges levied on imports (e.g. general sales taxes, excise taxes,...) and decreed customs valuation
Favours extended to some trading partners, usually in the form of lower tariffs or non-application of some non-tariff measures.
are tariffs lower than the Most-Favoured-Nation tariffs, levied on imports from a country that is being given favoured treatment, as in a preferential trading arrangement or under unilateral tariff preferences.
Preferential trade arrangement
Preferential trade arrangements
are trade arrangements under which a party agrees, either unilaterally or as a result of negotiations, to accord one or more other parties preferential treatment in trade in goods or services. That is a group of countries that levy lower (or zero) tariffs against imports from members than outsiders.
Pre-shipment inspection are a physical inspection of goods before they are shipped in the country of export, which establishes the exact nature of the goods. The inspection assures that the goods are in accordance with the accompanying documents that specify their customs tariff code, quality, quantity and price (e. g. a pre-shipment inspection of textile imports by a third party for verification of colours and types of materials).
Price control measures
Price control measures are measures implemented to control the prices of imported articles in order to support the domestic price of certain products when the import price of these goods are lower, establish the domestic price of certain products because of price fluctuation in domestic markets or price instability in a foreign market and counteract the damage resulting from the occurrence of "unfair" foreign trade practices.
as used by WTO, FAO or UNIDO relates to standards developed by non-governmental entities. These include individual firms, industry organisations, and non-governmental organisations, among others. As such, compliance to these standards is not legally required by national governments or multilateral regulations as opposed to public standards. Private standards vary widely in their objectives and scope.
Prohibition of foreign exchange allocation
Prohibition of foreign exchange allocation means that no official foreign exchange allocations available to pay for imports (e.g. foreign exchange is not allocated for imports of luxury products such as motor vehicles, TV sets, jewelleries, etc.)
A non-tariff measure used to control imports. There are total prohibitions (e. g. Import of "motor vehicle with cylinder under 1500cc" is not allowed to encourage domestic production), Suspensions of issuance of licences (e.g. Issuance of licence to import "motor vehicle with cylinder under 1500cc" is suspended until further notice.), seasonal prohibitions (e.g. Import of strawberries is not allowed from March to June each year.), temporary prohibitions (e.g. Import of certain fish is prohibited with immediate effect until the end of the current season), prohibitions of products infringing patents or intellectual property rights (e.g. Import of imitation brand handbags is prohibited) and prohibitions for non-economic reasons (e.g. imports of books and magazines displaying pornographic pictures are prohibited).
Protocol on Trade Negotiations (PTN)
is a protocol relating to Trade Negotiations among Developing Countries. There are currently
15 member countries
Quantity control measures
Quantity control measures are aimed at restraining the quantity of goods that can be imported, regardless of whether they come from different sources or one specific supplier. These measures can take the form of restrictive licensing, fixing of a predetermined quota, or through prohibitions.
A quarantine requirement is a requirement to detain or isolate animals, plants or their products on arrival at a port or place for a given period in order to prevent the spread of infectious or contagious disease, or contamination (e.g. quarantine requirements for live dogs; plant quarantine measures to terminate or restrict the spread of harmful organisms and mitigate the adverse impacts thereof).
are explicit limits on the quantity of a good that can be imported or exported during a specified time period. Such limits are usually measured by physical quantity but sometimes by value. A quota may be applied on a selective basis, with varying limits set according to the country of origin or destination or bilaterally (to a single trading partner), or on a global basis (to all countries) that specifies only the total limit and thus tends to benefit more efficient suppliers. Quotas are frequently administered through a system of licensing. Non-automatic licensing usually the means for administering a quota. GATT Article XI prohibits the use of quantitative restrictions, subject to specific exceptions. For example Article XIX permits quotas to safeguard certain industries from damage by rapidly rising imports.
Quotas linked with the purchase of local goods
Quotas linked with purchase of local goods are quotas defined as a percentage of the value of goods purchased locally (i.e. in the importing country) by the exporter (e.g. imports of refined oil in volume are limited to the volume of crude petroleum purchased locally).
Refundable deposits for sensitive product categories
Refundable deposits for sensitive product categories are a requirement to pay a certain deposit which is refunded when the used product or its container is returned to a collection system (e.g. $100 deposit is required for each refrigerator, which will be refunded when brought in for recycling after use).
Regional trade agreement (RTA)
Countries that anter a
regional trade agreement
levy lower tariffs against imports from members than outsiders. RTAs include free trade agreements, customs unions and common markets. Currently, some
511 notifications of RTAs
(counting goods and services separately) had been received by the GATT/WTO. Of these,
319 were in force
. Among the best known are the European Union, the European Free Trade Association (EFTA) and the North American Free Trade Agreement (NAFTA).
Regulations concerning terms of payment for imports
Regulations concerning terms of payment for imports are regulations related to conditions of payment of imports and the obtaining and use of credit (foreign or domestic) to finance imports (e.g. no more than 50% of the transaction value can be paid in advance of the arrival of goods to the port of entry).
Rules of Origin
Rules of Origin cover laws, regulations and administrative determinations of general application applied by government of importing countries to determine the country of origin of goods. Rules of origin are important in implementing such trade policy instruments as antidumping and countervailing duties, origin marking, and safeguard measures (e.g. machinery products produced in a country is difficult to fulfill the rules of origin to qualify for the reduced tariff rate of the importing country, as the parts and materials originate in different countries).
SAARC Preferential Trading Arrangement (SAPTA)
has been established between the members of the South Asian Association for Regional Cooperation (SAARC). SAPTA consists of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAPTA entered into force in 1995. The Agreement reflected the desire of the Member States to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of concessions.
A WTO member may take a
(i.e., restrict imports of a product temporarily) to protect a specific domestic industry from an increase in imports of any product which is causing, or which is threatening to cause, serious injury to the industry. Safeguard measures were always available under the GATT (Article XIX). However, they were infrequently used, and some governments preferred to protect their industries through “grey area” measures (“voluntary” export restraint arrangements on products such as cars, steel and semiconductors).
Sanitary and Phytosanitary measures
Sanitary and Phytosanitary measures are laws, decrees, regulations, requirements, standards and procedures to protect human, animal or plant life or health from certain risks such as the establishment or spread of pests, diseases, disease-carrying organisms or disease-causing organisms, risks from additives, contaminants, toxins, disease causing organisms in foods, beverages or feedstuffs.
A scenario defines the way you wish to change tariffs for a country or a group of countries. A simulation can include one or more scenarios.
Schedule of concessions
schedule of concessions
is a list of bound tariff rates. In general, it stands for a WTO member's list of commitments on market access (bound tariff rates, access to services markets). Goods schedules can include commitments on agricultural subsidies and domestic support. Services commitments include bindings on national treatment.
Seasonal duties are duties applicable at certain times of the year, usually in connection with agricultural products. imports of "Fresh perry pears, in bulk" from 1 August to 31 December may enter free of duty, while in other months, positive duties (seasonal duty) are applied.
Seasonal quotas are quotas established for a given period of the year, usually set for certain agricultural goods when domestic harvest is in abundance (e.g. quota for import of strawberries is established for imports from March to June each year).
is a portion of the economy producing a particular category of goods or services. Often refers to one of the
21 sectors within the Harmonised System (HS)
Service charges are fees charged against inspections, quarantines or other services provided by the customs authorities. They include custom inspection, processing and servicing fees as well as merchandise handling or storing fees.
A simulation joins countries, products and scenarios together.
is a simple schedule of duties in which the rate applies to imports from all countries on the same basis.
South Asian Free Trade Area (SAFTA)
Agreement was signed on 6 January 2004 during Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force on 1 January 2006, and the Trade Liberalization Programme commenced from 1st July 2006. Following the Agreement coming into force the SAFTA Ministerial Council (SMC) has been established comprising the Commerce Ministers of the Member States.
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA)
is an agreement, which entered into force on 1 January 1981, gives countries located in the South Pacific preferential non-reciprocal access to Australia and New Zealand. Access for sugar to the Australian market is excluded. Members include Australia, Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia (Federated States of), Nauru, New Zealand, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
Southern African Customs Union (SACU)
consists of Botswana, Lesotho, Namibia, South Africa and Swaziland. It covers the free flow of goods between the partners. A common external tariff is applied against non-members.
Southern African Development Community (SADC)
is an association of 15 southern African states: Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among its member states.
Southern Common Market (SCM)
Mercado Común del Sur (MERCOSUR)
A specific tariff is a tariff charged as fixed amount per quantity such as $100 per ton. A hypothetical example of a specific tariff would be a rate of two dollars per pair of shoes regardless of their value.
Standard International Trade Classification (SITC)
is a classification intended to categorize trade statistics into large economic classes of commodities. SITC is maintained by the United Nations.
is a formula devised during the Tokyo Round for reducing tariffs in a manner that would harmonize them. The formula is
), where the
's are the new and old tariffs, in percent, and
is a number that turns out to be the maximum possible new tariff.
Bound tariff rates
In the case of
, import duties are higher on semi-processed products than on raw materials, and higher still on finished products. This practice protects domestic processing industries and discourages the development of processing activity in the countries where raw materials originate.
is a relatively high tariff, usually on “sensitive” products, amidst generally low tariff levels. For industrialized countries, tariffs of 15% and above are generally recognized as “tariff peaks”.
are applied when a reduced tariff rate for a specific quantity of imported goods is applied. Imports above this specified quantity face a higher tariff rate. A tariff quota has thus two parts, the Inside Quota Tariff Rate and the Outside Quota Tariff Rate.
is the list of all of a country's tariffs, organized by product
is a term used for an tariff that is sufficiently high that it makes it difficult for foreign sellers in getting their products past the tariff.
is the difference between the tariff of the more processed product and the tariff on the less processed products that are transformed into the more processed product.
are customs duties on merchandise imports. Levied either on an ad valorem basis (percentage of value) or on a specific basis (e.g. $7 per 100 kgs.). Tariffs give price advantage to similar locally-produced goods and raise revenues for the government.
Technical barriers to trade
Technical Barriers to trade are measures referring to technical specification of products or production processes and conformity assessment systems thereof. They exclude SPS measures, but a TBT measure may be applied on food products, if the measure is not for food safety.
A testing requirement is a requirement for products to be tested against a given regulation, such as performance level. It includes sampling requirement (e.g. a testing on a sample of motor vehicle imports is required against the required safety compliance and its equipment).
Trade balancing measures
Trade balancing measures
are the requirements that the investor use earnings from exports to pay for imports.
Trade Promotion Organization (TPO)
TPO are organisations to promote trade. See for example the
India Trade Promotion Organisation (ITPO).
consists of the rules and practices prevailing in a country's international trade relationships.
are a kind of protection provided by any of the following: anti-dumping duties, countervailing measures or safeguards measures.
Trade Support Institution (TSI)
TSIs play a key role in enhancing the international competitiveness of the business community. For more information see the
ITC website on TSIs
Truncated Swiss formula
Truncated Swiss formular
combines the Linear Formula and the Simple Swiss Formula. It consists of applying the linear formula up to a certain rate (chosen by the user), and the latter beyond this rate.
Union Douaniere et Economique de l'Afrique (UDEAC)
is an economic community for the enhancement of regional economic collaboration in Central Africa. Its aim is to achieve collective autonomy, raise the standard of living of its populations and maintain economic stability through harmonious cooperation. Its Member Countries are: Angola, Burundi, Cameroon, the Central African Republic, Chad, Equatorial Guinea, Republic of the Congo, Democratic Republic of the Congo, São Tomé and Príncipe and Gabon.
Union économique et monétaire ouest-africaine (UEMOA)
West African Economic and Monetary Union (WAEMU)
is the value of one unit quantity imported of a product. It’s based on the total value of imports of that product. There are various ways to calculate a unit value. For example, one may use either bilateral trade flows; world imports or a country's imports of that product from a reference group of countries. MAcMap calculates the Unit Value based on bilateral trade at the HS-6 level.
United Nations Conference on Trade and Development (UNCTAD)
was established in 1964 as a permanent intergovernmental body. It is the focal point within the United Nations for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development.
United Nations Statistics Division (UNSD)
provides a global centre for data on international trade, national accounts, energy, industry, environment, transport and demographic and social statistics gathered from many national and international sources.
refers to multilateral trade negotiations launched at Punta del Este, Uruguay in September 1986 and concluded in Geneva in December 1993. On 15 April 1994, the deal was signed by ministers from most of the 123 participating governments at a meeting in Morocco.
Variable charges are taxes or levies aimed at bringing the market prices of imported agricultural and food products in line with the prices of corresponding domestic products. Primary commodities may be charged per total weight, while charges on processed foodstuffs can be levied in proportion to the primary product contents in the final product. These charges include variable levies and variable components.
Voluntary export price restraints (VEPRs)
VEPRs are arrangements in which the exporter agrees to keep the price of his goods above a certain level. A VEPR process is initiated by the importing country and is thus considered as an import measures (e.g. export price of video cassette tape is set at higher in order to avoid antidumping action by major importing countries).
Voluntary Export Restraint Agreement (VER)
VERs are arrangements made by a government or an industry of an exporting country to “voluntarily” limit exports in order to avoid imposition of mandatory restrictions by the importing country. Typically, VERs are a result of requests made by the importing country to provide a measure of protection for its domestic businesses that produce substitute goods.
Water in the tariff
Water in the tariff
is the part of a tariff which is beyond the prohibitive level. For example if a tariff of 80% is prohibitive, then a tariff of 120% would have 40% water.
West African Economic and Monetary Union (WAEMU)
is a customs and currency union created in 1994 between eight West African states: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
The World Bank's
mission is to fight poverty and improve the living standards of people in the developing world. It is a development Bank which provides loans, policy advice, technical assistance and knowledge sharing services to low and middle income countries to reduce poverty.
World Trade Organization (WTO)
was established in 1995. It is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. The WTO is the successor of the General Agreement on Tariffs and Trade (GATT) established in 1948. as of February 2011, the WTO has
The source for all entries concerning non-tariff measures is the classification of non-tariff measures prepared by a group of technical experts from eight international organizations including FAO, IMF, ITC, OECD, UNCTAD, UNIDO, World Bank and WTO from November 2009. Definitions contained in the
Alan Deardorff's Glossary of International Economics
and direct links to the institutions and organizations have been used for the definition and explanation of other technical terms.
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Tel.: +41 (0)22 730 02 34; Fax: +41 (0)22 730 05 77;
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