Which one of the following is NOT a non-tariff barrier?​

Correct option is C

In international trade, non-tariff barriers (NTBs) are trade restrictions that do not involve direct taxation (tariffs) on imports or exports but still serve as obstacles to free trade. These include quotas, licensing requirements, customs procedures, exchange controls, standards, and regulations.

On the other hand, Combined rates (also known as compound duties) are a form of tariff, not a non-tariff barrier. A combined or compound duty includes both an ad valorem duty (a percentage of the value) and a specific duty (a fixed amount per unit). Since it involves taxation on imports, it falls under tariff barriers, not non-tariff barriers.

Thus, combined rates are tariff-based, whereas the other options are non-tariff barriers used to control the quantity, accessibility, or method of trade.

Information Booster:

• Non-Tariff Barriers (NTBs) are regulatory or procedural obstacles that restrict trade without using direct taxes or duties.

• Common NTBs include:

  • Quotas: Limits on the quantity of imports.

  • Exchange controls: Restrictions on currency availability for imports.

  • Customs procedures: Complex or slow border formalities.

• NTBs are often used for protecting domestic industries or responding to balance of payment issues.​

• They are considered more opaque and harder to challenge under WTO rules.
• WTO encourages transparency and reduction of NTBs among member nations.

• NTBs can be more restrictive than tariffs due to their unpredictability.

Additional Knowledge:

• Option (a) Quota – A non-tariff barrier that sets a physical limit on the quantity of goods that can be imported or exported.

• Option (b) Customs and entry procedures – These include documentation, inspection, and delay requirements, acting as non-tariff barriers.

• Option (d) Exchange control – A non-tariff measure that limits the availability of foreign currency for imports, effectively reducing trade.