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EXW (or Ex Works) represents the minimum obligation for the seller. Its only obligation is to make the goods packaged for export available to the buyer (usually at the seller's premises) and to provide a commercial invoice. It is therefore the buyer who will bear all the costs and risks associated with the delivery of the goods between seller and buyer, such as the transport, customs, and insurance. 

The International Chamber of Commerce, responsible for establishing the various Incoterms, considers the EXW commercial typology as that in which the object of a commercial economic operation must be collected at a point designated by the seller.

The meaning of its acronym explains how this type of incoterm is developed. The seller stores his products in a specific place, such as warehouses, points of sale, or directly at the factory or factory so that the seller can collect them. In a sense, an EXW assumes that so many of the costs associated with the sale are borne by the buying agent. In other words, the risk of the operation rests mainly on this part of the business transaction. This means that it is a common export option among export agents with little means or of smaller size, as in the case of SMEs.

Basic Obligations of an EXW-Type Trade Agreement

The obligations of the buyer under the Ex Works transport rules are multiple: they include everything relating to the transport of goods and the associated risks. This includes the following activities:

• Organization of means of transport and routing to the various points of the journey
• Loading of the goods on board the vehicle(s)
• Support for all customs formalities and associated taxes
• Obtaining the necessary export and import licenses and authorizations
• Assumption of transport risks (delays, losses, thefts, damages)
• Unloading of the goods at the final destination

In contrast, here are the obligations of the seller:

• Packaging and labeling of goods
• Provision of goods

We can therefore consider EXW as the opposite of the incoterm DDP (Delivery, duty paid). In a contract negotiated under the DDP, the seller bears the maximum responsibility, while the buyer only manages the unloading of the goods at the agreed place. Responsibilities are reversed.

The Advantages of Transport by Ex Works

EXW is the preferred option for many companies appealed by its apparent promise of ease. What are the advantages of EXW?

Minimum Obligation

The absence of responsibilities plays a big role in the popularity of EXW. Under this incoterm, the seller hardly takes care of anything, not even customs formalities: his only task is to make the goods available to the buyer, often at the exit of his own premises. Apart from packing (and occasionally loading onto the vehicle, if both parties so agree), the supplier does not have to put in any effort.

Excellent Visibility

For the buyer, EXW also has certain advantages: transport and formalities being his responsibility, he has total visibility on the delivery process. He can therefore better control the goods and the progress of their delivery. It also ensures that the supplier does not increase its local costs or add a margin to the delivery costs.

When Should You Avoid It?

EXW perhaps seems like an easy option for the supplier, yet it is actually quite risky. Here are the main problems that can occur:

Dependence On the Buyer

The supplier has very few obligations – but that means they have no visibility into the shipping process. He does not control customs formalities or the choice of customs representative and does not have the slightest authority vis-à-vis the forwarding agent. Whatever the unexpected, it is entirely dependent on the buyer. Therefore, the EXW incoterm is not really suitable for export.

Documentation Missing

In France, exporters tend to invoice duty-free and appear as exporters on the Single Administrative Document (SAD). However, a contract negotiated with the EXW incoterm bars access to customs procedures, which means that the exporter does not automatically recover the SAD. Without this document, tax-free invoicing is automatically invalidated. With EXW, it therefore becomes much more complicated to obtain proof that the goods have indeed left the territory.

Customs Litigation

The foreign buyer is probably not very familiar with the regulations of the country of export. This increases the chances of producing an incorrect or insufficient export declaration. The exporter is held responsible in the event of non-compliance with the regulations. If he lacks specific authorization, he is the one who faces penalties – penalties that can include the loss of his export privileges. For this reason, the ICC reserves EXW for national and regional exchanges.

Not Being Able to Get Payment

Another scenario: the payment of a letter of credit requires a bill of lading. This bill of lading can only be provided by the freight forwarder. However, the freight forwarder has no obligation to the seller, since he was hired by the buyer. If the documents provided are incorrect or incomplete, the seller has no recourse to have them modified. This can lead the bank to refuse payment of the letter of credit.

Fierce Competition

Forcing the buyer to take care of customs formalities, transport and insurance mean that the supplier's business will seem much less attractive to customers, especially if other companies in the same market negotiate their contracts with more advantageous terms - such as FCA or DDP, which impose a more relevant distribution of responsibilities. 

Alternatives to EXW: Should You Choose FOB or FCA Instead?

The EXW incoterm, therefore, makes the seller assume a lot of risk despite the apparent absence of obligations and lends itself more to national or regional exchanges. Which alternative to turn to for export? This obviously depends on the context, your products, your type of business, and the countries concerned. However, two options, in particular, can be retained: FOB and FCA.

FCA

FCA (Free Carrier Alongside) means free carrier. Under this incoterm, responsibilities are better shared. The supplier is responsible for customs clearance and the transport of the goods to the port of embarkation. He must provide the buyer with all the necessary documentation for the export, including authorizations and licenses for specific products.

The FCA incoterm is more advantageous for the seller than the EXW because it allows him to manage the customs formalities of his country himself and avoid problems of non-compliance with exports. In addition, the seller can also benefit from an exemption from VAT. The FCA Incoterm is also very flexible regarding the delivery address. This is why it is officially recommended by the ICC instead of EXW for exports.

FOB

The incoterm FOB (Free on Board) means “free on board” and applies exclusively to transport by inland waterway or sea. It is very similar to FCA, with some nuances. Where FCA considers the goods delivered as soon as the seller has loaded them onto the means of transport chosen by the buyer, FOB considers them delivered once loaded on board the specified vessel.

The organization of transport and the assumption of costs and associated risks are the responsibility of the buyer. As with the FCA, it is the seller who takes responsibility for the clearance of goods for export. FOB is one of the most used in international trade. If you export by sea, it is a wise choice that will allow you to avoid customs disputes.

Tangerine is a type of fruit belonging to the Citrus family. The fruit, which is orange and yellow, has a juicy and fleshy structure. There are many varieties of tangerine suitable for growing in different climates. Among the most well-known tangerine varieties are clementine, satsuma, king, dancy mandarin, and honey murcott. Tangerine is a winter fruit and is consumed between October and June months.

Especially in the winter months, tangerine is one of the most consumed fruit varieties. According to the current data from the United States Department of Agriculture, tangerine production worldwide in the 2021/2022 season is 37,933 million tons. Turkey, China, South Africa, Morocco, and the EU countries are among the leading countries in the production and export of tangerines. In this article, detailed information will be given about the leading countries in tangerine export.

Growing Conditions of Tangerine 

Mandarin, like other citrus varieties, is suitable for growing in temperate climates. Mandarin, which grows in the warm and temperate climates of the Mediterranean climate, is a heat-loving fruit variety. Some tangerine varieties grow in cold climates as they are resistant to cold weather. However, where tangerines are grown, the temperature should not fall below -4 degrees Celsius. At temperatures below -9 degrees Celsius, tangerine trees can freeze, causing the plant to die. Also, it is not suitable to grow tangerines at temperatures of 45 degrees Celsius and above.

Precious Fruit of the Winter Months: Tangerine

Mandarin is a precious fruit of the winter months with significant benefits. The fruit is literally a perfect source of vitamin C. In winter, it is essential to consume vitamin C against diseases and to keep the immune system strong. Vitamin C not only strengthens the immune system but also contributes to the support of collagen production in the body. The body's production of collagen is important for skin health.

In addition to its benefits, it is also a good choice for a delicious winter dessert. Countless desserts can be made with tangerines. Besides, it is a healthy meal alternative when consumed as a refreshment. Thanks to its fibrous structure, tangerine also provides a feeling of satiety.

Top Tangerine Exporting Countries

It is estimated that tangerine production worldwide will increase by 2 million tons compared to the previous year. It is expected to reach approximately 37.2 million in the 2021/22 season. Top tangerine exporters include Turkey, China, EU countries, Morocco, and South Africa. While Turkey ranked first in tangerine exports in 2021, Russia was the country that imported the most tangerines.

Turkey

Turkey is a country with rich climate diversity and fertile soils. It is among the leading countries in the world in terms of citrus production and export. According to the data of TUIK Herbal Production Statistics, it produced 1 million 819 thousand tons of tangerines in 2021. The most produced tangerine species are satsuma, clementine, and king, respectively. The region with the highest tangerine production is the Mediterranean with 84%. The Aegean region follows the Mediterranean at 14%. The first three provinces in Turkey where tangerines are grown the most are Antalya, Adana, and Mersin, respectively.

According to the current data from the Ministry of Agriculture and Forestry, Turkey exported 1.9 million tons of citrus fruits in 2021. Besides, tangerines constituted 45% of this production. In 2021, Turkey-origin tangerines were exported to 72 countries. While the foreign exchange income from tangerines was 437 million dollars in 2020, it increased by 4% in 2021 and reached 453 million dollars. The most exported type of tangerine, satsuma, constituted 40% of the foreign sales with 140 million dollars.

Furthermore, Russia was the top country to which Turkey exported the most tangerines. In 2021, 266 million dollars' worth of tangerines were exported to Russia. Ukraine ranked second, with Turkey exporting $58 million worth of tangerines. Finally, Iraq ranked third with 32.5 million dollars.

China

The origin of tangerine is China. Therefore, China is a rich country in tangerine production. In the 2021-2022 season, China met 74% of the world's tangerine production. Additionally, 72% of the world's tangerine planting areas are located in China. Due to the favorable weather conditions expected in China in 2022, tangerine production is expected to be more efficient.

According to USDA estimates, 27 million tons of tangerine production is expected in China in 2022. In 2021, China exported 664,000 tons of tangerines. Also, the countries to which China exports the most tangerines are the Philippines, Thailand, and Vietnam.

Morocco

Morocco is a Mediterranean country where the Mediterranean climate is evident. Therefore, citrus production and export are high in the country. Morocco is the world's third-largest tangerine exporter. In 2021, Morocco exported 1.17 million tons of tangerines. The largest export markets of Morocco are the EU, Russia, and the USA.

South Africa

South Africa is among the leading countries in the world in terms of tangerine production and export. The country produced 567,000 tons of tangerines in the 2020/2021 season. The production is expected to increase to 630,000 tons in the 2021/22 season.

Moreover, South Africa exported 490,000 tons of tangerines in the 2020/21 season. In the 2021/22 season, exports are expected to increase by 12% and reach 550.00 tons. One of the main reasons for the increase in tangerine exports is high demand for vitamin C due to Covid-19. The countries that demand the most tangerines from South Africa are the United Kingdom, the Netherlands, and the USA, respectively.

EU Countries

Among EU countries, tangerines are produced and exported in Greece, Spain, and Italy, where the temperate and Mediterranean climate is observed. However, a decrease was observed in tangerine production due to adverse weather conditions in Spain in the 2020/21 season. Besides, tangerine production in Italy is on the rise and is trying to make up for Spain's deficiency. 

Moreover, it is expected that tangerine production in EU countries will decrease to 3.2 million tons in the 2021/22 season. Therefore, EU countries are expected to import tangerines in the next season. The EU's largest tangerine market is Morocco, South Africa, and Turkey.

Drayage charge is a term that often evokes confused looks from people in the field of logistics. Indeed, it is often replaced by words such as inland freight, inland transport, etc. by users. So let's see what drayage is in the field of shipping.

What is Drayage and Drayage Fee?

Drayage is an important step in the transport of containers by intermodal freight. Drayage means the overland transport of goods over a short distance. It is used for the movement over short distances of goods whose main leg of the journey is land or sea. It is a specialized area in a supply chain that typically involves the movement of containers.

Drayage is a necessity for the smooth movement of the cargo container from the point of its origin to the destination. Fees charged for transporting containers short distances overland are also known as drayage. These charges are usually not part of the primary carrier's freight bill and are billed separately by the drayage company assigned to the task.

Examples of drayage are when a container needs to be moved from a railcar to a trucking center or shipping terminal or vice versa. It could also mean moving a container from one seaport to another overland. Drayage operators move shipping containers between rail terminals, seaports, or warehouses. It would also involve supporting containers from ships or rail cars onto trucks or vice versa. It can then be moved to a warehouse or transported directly to its final destination. In simple terms, drayage is short-distance land transport of a container.

Dray

If drayage is the overland transport of containers over short distances, what is dray? The origin of the word dray comes from small horse-drawn carts with no side walls that were used to transport heavy boxes between warehouses, railway terminals, seaports, and loading and unloading points along the canals.

Although hunting horses could pull heavy containers, they could not travel very far with this heavy load. Dray carts and horses were used from the 1500s to the early 1900s until the automotive industry took over and trucks were used to haul containers. Nowadays, powerful diesel-powered drayage trucks are used to transport goods over short distances.

Drayage and Trucking

However, drayage should not be confused with trucking. While drayage is the transport of entire containers, trucking generally involves bulk goods, such as the contents of a container or individual units. Drayage using intermodal containers is an important part of the drayage industry. Containers that are transported by drayage generally continue their journey using a different mode of transport which may be a seagoing ship or a freight train. 

Once the final unloading seaport or rail terminal is reached, there will be another drayage before the container reaches its final destination which could be the customer's warehouse. As can be seen, drayage connects the transport of containers by road, rail, or sea.

Classification of Drayage

Drayage can be classified according to the services it links. Each classification is different and only suitable for certain types of container movement. Ultimately, it is up to the shipper to decide which type of drayage is best for transporting their cargo.

Inter-carrier drayage

When a container is transported between a trucking station, rail terminal, or seaport operated by different carriers, it is called inter-carrier drayage.

Intra-carrier drayage

In intra-carrier drayage, a container is transported between different freight terminals belonging to the same company. An example is the transfer of a container from a container station to a railway terminal or a marine terminal belonging to a single company.

Drayage pier

Dock drayage is specific to container transport between rail terminals and seaports.

Door-to-door drayage

When a container is delivered from the seller's warehouse directly to the customer's door, it is called door-to-door drayage.

Accelerated drayage

This type of drayage allows the rapid transfer of goods by land to meet urgent delivery deadlines.

Drayage shuttle

Shuttle drayage is useful in overcoming problems associated with congestion at terminals or transportation hubs. It uses temporary storage spaces such as parking lots, etc. to park the container truck until the space problem is solved.

Specialized Drayage

Cargo is available in various sizes, shapes, and temperature requirements. Some of them might be temperature-sensitive cargoes that need to be packed in refrigerated containers. Some of them may be out of gauge or OOG cargo. These are goods that generally do not fit in a container or box.

While general cargo can be packed inside a general purpose container (GP container), others require special equipment such as a flat rack, open top, premium container, or container refrigerated. Drayage operators must be prepared to meet these requirements and must have the equipment with them. Although it does not strictly fall under the drayage classification, some industries require specialized collection trucks for their pick-ups and deliveries.

One such example is the beer industry which requires transporting heavy kegs of beer between the brewery and retail outlets. To do this, they use forklifts with low frames and a truck with side openings. This facilitates loading and unloading directly at the exit. Barrel ropes or ratchet straps are used to lower heavy barrels onto barrel pads which are large, tough, shock-absorbing pads.

Cold Chain and Drayage

A cold chain is the storage, transport, and distribution of temperature-sensitive goods. Certain food products, meat, fish, pharmaceutical drugs, etc. are examples of products that require the cold chain. Modern refrigerated containers called reefers are used to transport these products from one point to another. Before the reefer container came into the picture, goods that needed to be kept cold were transported on blocks of ice kept inside the trucks. Another alternative available to shippers was then to wait for the cold season to transport these goods!

Drayage plays an important role in cold chain logistics. It is essential that the cold chain is uninterrupted at all times during the transfer of cargo from the shipper's warehouse to its final destination. Drayage overcomes long waiting times that can have a negative impact on the cold chain.

Due to the Russia-Ukraine War, major problems have been experienced in many areas around the world and continue to be experienced. At the beginning of these problems are food and energy. The main reason for the energy problem is that Russia is rich in natural gas resources. Also, it is the biggest natural gas supplier to European countries and other countries all around the world. However, major problems await Europe in the supply of natural gas because of the war. Europe has problems in transmitting energy to many critical areas such as public spaces, living spaces, schools, and hospitals. Besides European countries, other countries are also faced with the energy problem. 

Countries that do not have sufficient access to natural gas import electric heaters. Turkey is among the countries that export electric heaters. Thanks to its rich product variety and quality production, Turkey improves itself every year in the export of electric heaters. In this article, we give detailed information about the types of electric heaters to import from Turkey.

Types of Electric Heaters Produced in Turkey

Types of electric heaters differ according to the purpose and place of use. Thanks to its rich product range, there are electric heaters suitable for every use. There are many types of electric heaters, from portable electric space heaters to radiator heaters. Turkey produces electric heaters following EU standards and exports them to different parts of the world. Also, electric heaters are an environmentally friendly form of energy. It provides heat without consuming fossil fuels and harming the environment. For this reason, the demand for electric heaters is increasing every year.

Electric Heater

Electric heaters are one of the most preferred ways of heating. They are used to heat any desired place in a short time. In particular, they work efficiently to keep an indoor area at a certain temperature. They are available in hundreds of different sizes. An electric heater can also be used to heat a small or large room or it can also be used to heat a desk worker. Electric heaters have many practical features. Some electric heaters can be wall-mounted, while others have wheels. In this way, it can be easily moved from one room to another. Also, wall-mounted electric heaters are generally preferred in restaurants.

Electric heaters have multiple heat settings and thermostat features. This feature prevents excessive electricity consumption. In addition, the heaters are equipped with a safety thermal cut-off to prevent overheating. Therefore, it is safe to use.

Radiator Heater

Radiator heaters are one of the oldest and most popular types of heaters. They are similar to calorifiers but run on electricity. There are many sizes of heaters according to the size of the area to be used. Radiator heaters can be easily moved to the desired location. Thanks to radiator heaters, the adverse conditions of cold weather do not affect users while working or resting.

Radiator heater types are generally made of aluminum coating. In addition, these heater types are maintenance-free. It is suitable for practical and safe use for many years. Radiator heaters work extremely quietly. In addition, it does not cause a headache because it does not give direct heat. Thanks to these features, it is also suitable for use in schools and office environments.

Infrared Heater

This type of heater gets its name from the infrared rays it emits. The infrared heater does not directly heat the air. It provides an even heat distribution to the room or environment. The infrared heater provides warmth through radiation. However, these heaters are not harmful to health because this heater contains non-ionizing radiation. In addition, this heater type operates with a lower watt than other heaters.

Electric Blanket

Thanks to the electric blanket, users no longer have to worry about cold weather. The product is very simple to use, has a thermostat setting, and is adjusted with remote control. After reaching the heat level set by the user, the electricity is cut off. Besides, the user can adjust the heat setting according to their preference. Users can safely use the electric blanket, which is the savior of the cold winter months. 

The electric blanket, which offers incredible benefits during the winter months, is also beneficial for health. The electric blanket relaxes the muscles and increases blood flow. Electric blankets consist of three major components. These are a specially woven cloth, insulated wire, power cord, and controller. The woven fabric is made of acrylic and polyester material. Insulated wire is a heat-producing and heat-resistant material along its entire length. Finally, the controller is made of a combination of plastic and metal materials.

Electric Heated Foot Warmer

The electric heated foot warmer is one of the most popular types of heaters of recent times. With its gentle texture, the foot warmer, which is used by the users, offers the desired temperature and comfort in the best way. Electric heated foot warmers are of different sizes, shapes, and models. In addition, this type of heater is very easy to carry and use. Users can use this type of heater wherever they want and adjust the temperature. It is possible to use the electric heated foot warmer made of quality materials for many years without deformation.

Heating Pad

Finally, the heating pad is the easiest way to protect yourself from cold weather. Thanks to its easy portability, users can easily use the warming pads wherever they want. The heating pad has adjustable gradual degrees. The heating pads are made of soft textured fabrics and provide maximum comfort for the user's body.

Import the High-Quality Electric Heaters from Turkey with Turkish Goods

Electric heaters have become very important with the arrival of the cold winter months. Problems in accessing energy have also increased the demand for electric heaters. Electric heaters can be used easily and safely in many areas. You can import types of electric heaters made using the highest quality materials from Turkey with the quality and assurance of Turkish Goods. You can consult the expert team of Turkish Goods for detailed information about the electric heaters import process.

Local and international logistics are constantly evolving. Transportation modes are critical for the transport of goods between two places. If a product needs to be delivered to a country, there are several choices available, including sea, air, and land transportation. Land freight and sea freight are two of the most common transportation methods. What are the distinctions between road and sea freight? Read more to learn how to choose the best mode of transportation for your products.

What is Land Freight?

The term "land freight" refers to the transportation and delivery of commercial products by road to their destination. Land freight services rely on national and international rules, logistics and service expertise, alternate routes, and other factors. It is a paid mode of transportation that facilitates the transfer of goods from one location to another with proper vehicles. Land freight requires a contract between the carrier and the sender. In land freight, goods are delivered by train or truck.

One of the most fundamental concerns in land freight is that the carrier has all of the relevant documentation. There are numerous sorts of paperwork, including the Shipper's Receipt, CMR Document, and Truck Carnet. The documentation may differ depending on the requirement, the country, the mode of transportation, and the type of product.

What are the Advantages of Land Freight?

Land Freight is more common than other types of transportation. It is far more profitable to use the land route, especially for short-distance goods shipments. The goods' final destination can be determined as desired. This allows for simple door-to-door transfers. For land freight, the availability of roads and the investments made are essential. The rights of the sender are protected by insurance against the risk of product damage, wear, or loss while being transported.

In land freight, product loading and unloading is a fast process. In most regions of the world, the road network is continuous, and road transit is generally free of delays. Many different products with varying weights or quantities are transported by land around the world. Tracking items is also easier compared to other modes of transportation. Land freight is often more affordable than air transportation. However, it may be more costly than sea freight, particularly in developing countries with inefficient road infrastructure.

What is Sea Freight?

Sea freight is the process of transferring materials and goods in many sectors using marine and cargo ships. The transfer process between ports is carried out by sea routes in sea freight. The products are transported and delivered at the specified location and time. Only roughly 100 of the world's 4,600 ports are of international importance. Sea freight provides logistics and transportation services between these ports on a regular basis.

Many governments and companies prefer sea freight since it is the lowest-priced mode of transportation worldwide. Sea freight is also frequently utilized in the transportation of raw resources in different industries such as energy and food. Especially in the transport of raw materials and merchandise across vast distances, sea freight is employed in order to reduce expenses. 

International sea freight refers to the process of transporting goods by sea between countries. Transport activities in international waters are comparatively cheap. This mode of transportation is preferred so that sensitive and dangerous goods can be carried without any incidents. Shipping operations must adhere to certain guidelines like land freight. 

Raw goods, in particular, can be delivered to all regions of the world. Sea freight is commonly favored by countries with a seacoast. The procedure begins with the loading of cargo onto ships and concludes with their departure from the port in the destination country. 

What are the Types of Sea Freight?

Within sea freight, there are two different types: liner and tramp transportation. The first is tramp transportation, usually known as irregular transit. Ships are used to transport products such as timber, oil, and mine in this sort of sea freight. The timeframes are not significant because the ship's departure date and the date of its approach to the port are determined in advance. The goods are delivered to their destinations as the ship approaches the port. The ships in this mode of transportation do not depart until they are completely full.

The second type of transportation is regular, also known as liner transportation. In liner transportation, the service is in the foreground. The ships' departure, arrival, and transfer ports are predetermined. It has no bearing on whether the ships are full or empty when it concerns the liner transit. The container transportation and Ro-Ro transportation types can be given as examples of liner transportation.

What are the Advantages of Sea Freight?

Sea freight is advantageous in numerous ways. The most significant of these benefits is that it is considerably cheaper than other modes of transportation. It is known that sea freight is 3.5 times less costly than railway freight and 7 times less costly than land freight. Another advantage is that it can convey massive loads at once. As a result, sea freight has a higher preference rate.

One of the most inherent benefits of sea freight is that it can reach any destination. The difficulty of crossing borders between countries does not occur on the seaway, which is the safest mode of international transportation. The sole disadvantage of this mode of transportation is that it is slower than air or land freight.

To conclude, both sea and land freight offer their own advantages. Land freight is known for being faster and sea freight is renowned for being safe. Each day, different kinds of goods are delivered to hundreds of various locations using these two methods. The manner of transport is determined by the type of cargo, the chosen destination, and other considerations. The best mode of transportation is based on particular circumstances.

Tariffs are one of the key tools used by nations to impose trade barriers as part of their geoeconomic policies. In other terms, tariffs are the customs duties that governments impose on merchandise imports. Other significant tools that impede the movement of goods and services include non-tariff barriers, which are in addition to tariff barriers. The fundamental driver of protectionism between nations is these tariff measures. In other words, nations utilize tariffs to shield native producers and consumers from overseas rivalry. Because the protection of producers and consumers protects both local production and prestige in the foreign market.

Knowing the appropriate product code is crucial when it comes to tariffs because customs charges are calculated using the GTIP code. Before choosing to enter a given country, exporters need to be aware of both tariffs and non-tariff restrictions. It is also a crucial factor to consider when performing target market research because it has a direct impact on how importers make purchases. Undoubtedly, businesses prefer to import goods from nations with minimal or no non-tariff and non-tariff trade restrictions. For goods that cannot be replaced, the importer must endure stringent import conditions, even when it makes more sense from a material standpoint. So, knowing everything there is to know about tariffs and non-tariffs puts you one step ahead.

What is a Tariff Barrier?

Many countries are experts in production and their acquisition is limited by their natural resources and their ability to produce certain goods and services.  To meet the needs and desires of their citizens, they decide to trade with other nations. However, trading partners don't always reasonably conduct their business. 

Every nation has its geographical advantages and drawbacks in terms of policies. Competition between nations and a host of other causes can also cause issues between trading partners. Tariffs are relevant in this situation. Governments deal with trading partners they don't agree with by imposing tariffs. A tariff is a form of tax that a nation imposes on imports of goods and services to preserve competition.

But it is not entirely correct to think of tariffs only as a form of taxation. Tariff barriers are chains of policies implemented by governments to protect themselves. Tariff barriers also called border taxes, provide revenue to the government in the form of taxes and fees. In addition, imposing tariffs makes the price of imported products affordable to maintain the country's independence from imports. Also, nations that do not comply with the government's foreign policy are penalized using this type of trade barrier policy.

A government has the right to impose tariff restrictions in several different ways. Tariffs are named according to their purpose. Some of the most common tariff barriers include:

• Ad-Valorem Tariffs
• Particular Tariffs
• Specific Tariffs
• Complex Tasks
• Protective Tariffs
• Licenses
• Duties for Voluntary Exports
• Transit Tasks

What is a Non-Tariff Barrier?

By definition, non-tariff trade barriers impose restrictions on the import or export of goods and services in methods other than the imposition of tariffs. Non-tariff barriers are restrictive laws that, in the absence of taxes, make it difficult or expensive to import or export a specific good or service.

Trade restrictions known as non-tariff barriers do not involve paying taxes or duties. In other words, aside from the actions performed in the tariff policy, these barriers are obstacles to trade in the import of foreign goods. Non-tariff barriers are a type of "non-tax" policy, to put it succinctly and simply.

A non-tariff barrier policy may occasionally have a similar impact as a tariff barrier. The application of restrictions in this instance, however, is limited to prohibitions, conditions, and procedures, which complicate and limits the entry of foreign goods. Non-tariff barriers, however, are not used in conjunction with tariff obstacles.

We can list some of the non-tariff barriers as follows:

• Embargoes, 
• Voluntary Export Restrictions,
• Quotas,
• Technical Trade Barriers,
• Licensing,
• Responsibilities against Dumping,
• Anti-Competitive Duties,
• Safeguards,
• Public Procurement,
• Formalities and Procedures.

The Difference Between Tariff and Non-Tariff Barriers 

Even while each tariff and a non-tariff barrier is distinct in its own way, they are nonetheless significant government-imposed regulations that every trading organization should be aware of. Companies need a thorough knowledge of these topics since they will come across regulations unrelated to their economic circumstances. Commerce restrictions are a helpful tool for shielding home producers from competition on international markets, but they impede trade in products and services on the world market. Let's examine the distinctions between tariff and non-tariff barriers:

Barrier Intent

The tariff barrier benefits the nation in two ways. The first benefit is that it shields home producers from the damaging consequences of international competition. Second, it offers the state an extra source of revenue. On the other hand, a non-tariff barrier safeguards native manufacturing firms while assuring that foreign competitors can access the country's market only after fulfilling specific requirements or formalities.

Implementation Method

Taxes and levies are used to impose tariff barriers. Conditions, voluntary export duties, various formalities, and other non-tariff obstacles make up the limitations.

Nature

While tariff barriers are explicit, non-tariff barriers are implicit.

Government Revenue Generation

Due to taxes and duties in a tariff barrier, the government has the power to produce income. On the other side, the government has no opportunity to collect money when there is a non-tariff barrier.

Impact of Imposing Trade Barriers

The price of imported goods is significantly impacted by tariff barriers due to the imposition of taxes and charges. In other words, the cost of these things tends to skyrocket. Non-tariff barriers have an impact on both the quantity and price of imported commodities.

Groups that are Monopolistic Forming

While non-tariff restraints give monopolistic groups the chance to make significant profits, the application of import tariffs and levies in the context of tariff barriers diminishes the likelihood of monopolistic emerging organizations.

Possibility of Making Money

The chances of importers profiting greatly are frequently reduced by tariff barriers. With non-tariff barriers, importers can simply generate and collect good profits.

Direct or indirect effects of restrictions

While tariff barriers do not allow and indirectly restrict the import of goods, non-tariff barriers directly restrict the import of goods.

The Simpleness of Tariff Implementation

Implementation of the tariff barrier is easy. This is so that there is no need to assign formalities, licenses, or quotas separately since legislators have already set these constraints in the form of flat rates. There are authorities with various responsibilities for implementing a non-tariff barrier. Such delegated responsibilities are difficult to implement because they can result in political corruption and meddling.

Time of Impact

Any modification to the tariff barrier policy immediately and significantly impacts the amount of merchandise imported from other nations. On the other hand, it takes time for the non-tariff barrier policy changes to be implemented and go into effect.