People Innovation Excellence

TRADE BARRIERS

Trade barrier is a word we hear frequently in the world of international trade. In globalization, trade barriers are often raised when explaining about globalization, for example, in the globalization of trade barriers is permitted to access or known as free trade.

In Indonesia a lot of regulations used to protect domestic trade. One of these regulations is trade barriers. It’s not easy to control and carry out government regulation, as each country has its own regulations and must be an agreement between countries to cooperate.

In the area of Southeast Asia, countries in the region have the associations that one of its objectives is to discuss trade barriers. The combined among countries in Southeast Asia is the ASEAN (Association of South East Asia), where the inter-state international trade neighboring countries have free trade, and also with the regulation together to improve their needs or can be said to support each another.

These explanations focus on trade barriers. Trade refers to trade, while the barriers are restrictions or barriers. Thus trade barriers constitute a trade barrier which is defined as a government regulation that has restricted free trade.

Regulations set by the government were formed with the aim to provide benefits to domestic producers in order to be given the protection of the existence of this trade barrier. Besides, the government also benefited by the acquisition of income from fees has been received.

Trade barriers have several forms, which are:

• Rates or Customs

• Quota

• Subsidies

• Exchange Control

• State Trading Operation

• Antidumping Rules

Tariff or customs

Tariff is the imposition of taxes or custom duties on goods that crossed the line state. Tariff has many parts, such as:

1. Import Export

Customs can be regarded as a tax, so the export duty is a tax levied on products transported to another country (exported).

2. Customs Transit

Taxes imposed on products through the territory of another State, provided that such State is not the final destination of delivery.

3. Import duty

This charge is a tax imposed on products that fall into a state with the proviso that State is the final destination of the shipment.

4. Deposit Imports

A requirement for the importer of a product to pay to the government by a certain amount, when the arrival of products on the domestic market prior to the sale.

Import quota

Import quota is a quota to restrict the number of units that can be imported. The purpose of the import quota is to limit the amount of goods or products on the market and raise the price of its products.

Subsidy

Subsidy is government assistance to domestic producers or local. This subsidy source or obtained from the people’s taxes collected by the government.

Exchange Control

Exchange control is country which normally uses foreign exchange control, namely those with a weak economy. These controls will allow countries with a more stable economic limit the amount of currency exchange rate entering or exiting.

State Trading Operation

This is a government order in international trade for export activities.

Anti-dumping Regulation

Political or anti-dumping regulations which sell an item whose value is higher than the purchase price, well sold abroad and within the country, but still make a profit. Politics dumping is done usually caused by a scramble in overseas markets, by providing a much cheaper price abroad than in its own country. Then, introduce a product in the country to other countries, and goods required by the State of origin can be sold quickly overseas because the offer price is much cheaper than in their country of origin.


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  1. Written By: Selly Novela, ST, MM – IBM

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