Export 8

Chapter 1: Introduction

• Non-Tariff Barriers (NTBs): Methods used by countries to restrict imports without using tariffs.

  • Importing countries prefer high NTBs over increased import duties to protect local markets.

• Importance for Exporters: Understanding NTBs is crucial for entering global markets and ensuring payment realization.

  • Awareness of barriers is critical in trade fairs to connect with potential buyers.

• Types of Barriers:

  • Includes import regulations, compliance requirements, and standards which vary across markets.

  • Need for awareness regarding standards like Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT).

• Compliance Essentials:

  • Products must meet SPS for agricultural products (health standards) and TBT for non-agricultural products (technical compliance).

  • Example: Mobile phones may require specific electronic compliance to enter foreign markets.

  • Ethical compliance can enhance product appeal in crowded markets, emphasizing quality and safety.

• Market Dynamics: In digital marketing, differentiating product branding is essential due to competition, especially for similar products.

Chapter 2: Developed Country Market

• Quality Compliance: SPS ensures health standards for internationally traded products are met.

  • Example: Higher health standards in developed economies compared to domestic markets.

• Importance of Research: Knowledge of regulations reduces potential rejections and facilitates a successful market entry.

• Rapid Alert Systems: Utilize RAPEX for non-agricultural goods, and similar systems for agricultural sector monitoring.

Chapter 3: Standards of Market

• Distinction Between SPS and TBT:

  • SPS Barriers: Address health risks in food and animal products, including foodborne risks and pest containment.

  • TBT Barriers: Concerned with the processes and technical specifications, such as packaging and safety assurances.

• Labeling and Certifications: Different countries have specific requirements affecting market entry, such as halal certifications for meat products and unique packaging standards.

• Example: Japanese customs specify details like package hole dimensions for mango exports to maintain product quality.

Chapter 4: Standards on Product

• Traceability Standards: Essential for compliance, particularly in the EU and Japan; ensures full supply chain transparency.

• Product and Packaging Safety:

  • Must comply with relevant regulations, for example, CE marking for certain manufactured goods.

• Social Standards: Fair trade certifications enhance brand reputation and consumer trust.

  • SA 8000 certification for worker conditions demonstrates ethical practices and strengthens market position.

Chapter 5: Entire International Market

• Environmental Standards: Focus on transportation and manufacturing impacts, such as reducing food miles and water footprints.

  • Example: Shorter shipping distances assert less environmental impact and potentially attract buyers.

• Technological Compliance: Concerns over software piracy can favor compliant Indian companies against less compliant competitors.

  • Unfair Competition Act in the US emphasizes doing business with anti-piracy compliant companies, aiding Indian businesses.

Chapter 6: Conclusion

• Understanding Non-Tariff Barriers: Recognizes NTBs as essential factors beyond import duties affecting export competitiveness.

• Categories of NTBs:

  • Quality Barriers: SPS standards and quality regulations affect agricultural products.

  • TBT: Relevant for non-agricultural exports focusing on technical specifications.

  • Social and Ethical Standards: These standards provide branding opportunities.

  • Environmental Standards: Companies must stay aware of these to promote sustainability.

  • Technological Standards: Important to comply to ensure competitiveness in international trade.