The Canadian Housing Bubble
Canada is a developed western nation. It does not get nearly as much attention in the world media as it should. This is the reason why Canadian housing market is not being displayed in the news by the mainstream media. Right now the market is going through an incredible bull run. The prices are rising […]
The Drivers of the BPO Phenomenon: Globalization, Economics and Geopolitics
The main drivers of the BPO phenomenon are globalization, economics and geopolitics. To elucidate, ever since the global economy started getting more integrated and interconnected, there has been a concomitant movement towards opening up of the economies of the developing countries to greater interaction with the west. This “flattening of the world economy” has meant […]
Innovation in the Digital Age: Some Issues and Observations
What is Innovation and how did it evolve? Innovation is commonly known and defined as the ability or skill to improve existing processes and to come up with a better way of doing things. On the other hand, the invention is understood to be an entirely new way of doing things. Thus, whereas innovation is […]
Backdrop to International Trade
Any student or professional wanting to understand more about Imports and Exports would have to understand the history and economic principles that have chartered the course of international trade to its current regime. In the backdrop of the countries economic policies and financial conditions such as its balance of payments situation, the governments formulate rules […]
Warehouse Management System – Ensuring efficiency of the Supply Chain
In any Supply Chain, Inventory Management and Warehousing form a part of operations intensive function and is one of the key building blocks in the entire chain. Most of the inventory is held at the warehouses as compared to the pipeline, and the efficiency of the warehouse operations will determine the further supply chain efficiency. […]
International Trade has become the order of the day in the current environment of Globalization. The nature of economies namely under developed, developing and developed countries as well as the availability of natural resources, labor, technology and capital required for production etc play a important role in countries economy as well as its reliance on international trade. While countries which are rich in resources look for exporting to other countries and earning foreign exchange, countries mostly the developed countries rely on imports from developing countries for their use.
Countries like Europe and Us are heavily dependant upon Imports, developing countries like China and other Asian countries tend to rely on exports to these countries.
Though the countries and WTO have been advocating free trade and several Bi Lateral Treaties and Multi Lateral treaties have come into being to remove trade barriers from one member county to another, all of the countries still find the need to practice and have protectionist attitude towards international trade. There are political as well as economic considerations that govern the import and export duties levied by Governments. Primarily import and export duties aim to encourage or restrict the consumption as well as production in the domestic economy and market.
Countries levy Import and Export Duties on specific items and also based on countries of origin. The management of duties and tariffs is managed through Trade Laws and Policies. Besides imposing duties, countries also restrict and manage the import and export of items with the help of Licenses to Import and Export.
While normal items and traded goods like textiles, consumer durables, Handicrafts, electronics items, Food articles, Drugs etc are generally allowed to be imported and exported by all countries freely without restrictions.
Many items like second hand capital equipment, plant and machinery, engines etc are traded, transferred and imported normally by developing and under developed economies.
Such second hand machinery and goods are allowed to be imported into the receiving countries only through specific license obtained for the said purpose. Such license would set forth conditions required to be met by the importer to prove the residual life of the machinery etc.
Import of Fire Arms and Ammunitions are always covered under specific licenses in most of the countries.
Some countries like USA do allocate quantity restrictions for import of items like textile on certain countries and exporters would have to adhere to the quota norms, which are periodically reviewed and amended as required.
While the domestic industries are engaged in export of some important natural resources and raw materials like iron and steel, certain kinds of herbs etc, Governments control and restrict the export through issuing Export Licenses.
Most countries maintain a negative list of items which prohibit import and export of certain items like animal hides and other wildlife, precious wild life, live stock, narcotics and many more sensitive items.
When people import or export items into the country without applicable licenses, do not bring in consignments avoiding customs clearance and thus avoid paying duties as well as those items that are prohibited are brought into the country illegally, such trade is labeled as smuggling.
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