Basis of NTRRs
What does NTRR stand for?
Non-Traffic Regulations and Restrictions
What type of restriction puts a numerical limit on how much of a product can be traded?
A quota.
What country is used as the main example of NTRR enforcement in the presentation?
Mexico.
What organization establishes international rules for trade?
The WTO.
Can NTRRs increase the cost of international trade?
Yes, they can.
Are non-tariff regulations a tax on trade?
No, they are not taxes.
What is a prior permit?
Government authorization required before a shipment can move.
What law establishes the legal framework for non-tariff measures in Mexico?
The Foreign Trade Law (LCE).
According to WTO rules, should trade regulations be discriminatory or fair?
They should be fair and non-discriminatory.
Name one business problem caused by NTRRs.
Higher costs, higher prices, trade delays, or less competitiveness.
What is one main purpose of non-tariff regulations?
To regulate or restrict trade through rules, procedures, or requirements.
What do rules of origin determine?
The economic nationality or origin of a product.
Which article of the Foreign Trade Law is mentioned in the presentation?
Article 17.
What should regulations be based on when they are used to protect health or safety?
They should be science-based.
What should companies do before shipping internationally?
Understand the import/export requirements.
Name one legitimate reason governments may use non-tariff measures.
To protect health, safety, or the environment.
What do SPS measures mainly protect?
Food safety and animal and plant health.
What can customs do when certain requirements are not met?
They can hold or seize the shipment.
What is the main purpose of the Customs Valuation Agreement?
To establish standardized rules for determining the value of goods at customs.
What type of codes should companies use correctly for customs?
HS Codes.
What is the main difference between a tariff and a non-tariff barrier?
A tariff is a visible tax on trade, while a non-tariff barrier uses rules, requirements, or procedures to affect trade.
What do Technical Barriers to Trade (TBT) regulate?
Technical regulations, product standards, testing, and labeling.
What Mexican system was mentioned in the steel import case?
VUCEM, the single-window system.
According to the WTO, should a regulation restrict trade more than necessary to achieve its legitimate purpose?
No. It should not be more trade-restrictive than necessary.
Name two things a company should do to overcome NTRRs.
Prepare the correct documentation and obtain the required permits or comply with technical, sanitary, and labeling standards.