What is a Trade Barrier and a Anti Dumping Duty

Exporting and Importing can often be an extremely complicated and mundane process as there are so many rules, regulations as well as countless  number of procedures to adhere to. This, many a times, may require to prepare and submit documents for import and export. Usually, freight forwarders would prepare it  for us, but it is also good to know for ourselves as to how to complete the relevant documents by understanding what the terms mean. As such, in our new article series titled “Export Terms”, we would  introduce you to all the various terms used in the international trade, be it through air, land or sea freight. We would roll out one related article on a regular basis, which would help you to get a comprehensive understanding as to the document preparation for the purpose of doing trade internationally. In this article, we would be covering as to what is a trade barrier as well as the meaning behind an anti dumping duty.

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What  is a Trade Barrier

Essentially, imposing a trade barrier makes it harder for  a business of a certain country to conduct trade as there would be many restrictions in place as well as rules to follow. They are usually imposed by the Government and could exist in the form of import policies, increased import charges, more financial  subsidies for local exports, as well as restrictions on obtaining licenses and direct foreign investments. Currently, many developing countries have imposed trade barriers on imports. Some of the countries are Ethiopia, Laos and the Central African Republic. These countries have high tariffs on imported products that originate from other countries. On the other hand, many countries around the world do away with trade barriers and impose little or no tariffs when it comes to imported products. Some of these countries are Singapore, Macau, Hong Kong and Switzerland. Therefore, the existence of a trade barrier makes it difficult to do trade.

ship cargo by airfreight for import and export
Trade Barriers Imposed By The Government Make Trade Difficult

What is an Anti dumping Duty

The Anti Dumping Duty involves the importing country as well, similar to the trade barrier. However, this duty tax does not restrict trade. Rather, it is imposed on imported products when they feel that the price is so low which could hurt the local industry because of unfair competition. Usually, the price of the imported products are compared with the market value of the exported products to see if there could be any possible disadvantage to the local products. By imposing the Anti Dumping Duty, the prices of the products are raised to become on par with the market value. Which, as a result, makes all the products competitive.

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