Non-Tariff Barrier
A Non-Tariff Barrier (NTB) is a trade restriction that controls imports or exports without using customs duties or tariffs. Instead of increasing prices through taxes, NTBs limit trade through rules such as quotas, import licensing, technical standards, or regulatory requirements. These measures influence how much, how often, or under what conditions goods can enter a market. They directly affect market access for exporters and importers.
Common NTBs include product standards, labeling rules, health and safety regulations, customs procedures, and documentation requirements. While many of these measures are introduced to protect consumers, public health, or the environment, they can also increase compliance costs. Businesses may face delays, additional testing, or complex approval processes. This can make international trade slower and more expensive.
NTBs are often harder to identify than tariffs because they are embedded in regulations rather than listed as charges. They can change frequently and vary by country, creating uncertainty for traders. Companies must stay informed and ensure full compliance to avoid shipment delays or rejections. Proper planning helps reduce the impact of NTBs on supply chains.
Overall, Non-Tariff Barriers play a major role in global trade controls. They shape how goods move across borders beyond simple pricing measures. Understanding NTBs helps businesses plan better, manage risks, and maintain smooth cross-border operations.
Frequently Asked Questions about Non-Tariff Barrier
Clear answers to the most common questions people have when learning about Non-Tariff Barrier.
They use NTBs to protect health, safety, the environment, or domestic industries through regulations rather than direct taxes.
Tariffs are taxes on imports, while NTBs restrict trade through rules, limits, or administrative requirements.
Yes. Even without tariffs, NTBs can raise costs due to compliance, testing, documentation, and delays.