Question

Consider the following statements

1. Quotas and Certificates form a part of Non Tariff Barriers
2. Customs duty is an example of Tariff Barrier

Which of the above are correct?

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is C Both 1 and 2

A nontariff barrier is a way to restrict trade using trade barriers in a form other than tariffs. Nontariff barriers include quotas, embargoes, certificates,sanctions, levies and other restrictions. Customs duty refers to the tax(tariff) imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.