Efficacy of the Duty Drawback Scheme

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

Cuts in protection have increased imports but the increased efficiency has led to a comparable rise in exports. The value of exports plus imports of goods and services has risen from 32% of GDP in 1975 to 48% of GDP in 2000 (ABS), reflecting

“the prohibition on quantitative restrictions covers measures which amount to a total or partial restraint of, according to the circumstances, imports, exports, or goods in transit”

shipper pays only such U.S. import duties as are applicable to the value added by

product, the effect is, like a tariff, to raise the price of the import and make

Article 36 TFEU provides allowances to the general prohibition of Art 34 TFEU. It explains that Art 34 and 35 TFEU will not apply to prohibitions on imports, exports or goods in transit which are justified on any of four grounds including, public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures holding artistic, historic or archaeological value; and the protection of industrial and commercial property. The use of these allowances is subject to the limitation as shown in the second sentence of Art 36 TFEU. This is where we see the constraints of the derogations prevent the free movement of goods from actions to protect domestic industry. The allowances listed in Art 36 TFEU cannot be expanded to incorporate cases which are not

Almost all built-up countries apply these non-tariff methods. The license scheme requires that a state (through specially authorized officers) issues permits for foreign trade transactions of import and export commodities included in the lists of licensed merchandise. Product licensing can take many forms and procedures. The main types of licenses are general license that permits unrestricted importation or exportation of goods included in the lists for a certain period of time; and one-time license for a certain product importer (exporter) to import (or export). One-time license indicates a quantity of goods, its cost, its country of origin (or destination), and in some cases also customs point through which import (or export) of goods should be carried out. The use of licensing systems as an instrument of foreign trade regulation is based on a number of international level standard agreements. In particular, these agreements include some provisions of the General Agreement on Tariffs and Trade and the Agreement on Import Licensing Procedures, concluded under the

In addition to facilitating the system of landholding and labor use for the production of exports, governments used tax exemptions, subsidies for new plantings, and waivers for duties on imported inputs to further development of the export sector. The state also used its borrowing power to obtain funds abroad for the infrastructure that supported this sector.

Exporting presents many advantages including reduced dependency on home market sales and greater control over research, design and production decisions. Conversely, many exported goods are subject to tariff or nontariff barriers and transportation costs that may substantially increase the final cost to consumers (Williams, 2009.)

Measures which affecting goods. In 2005 it was 3.5 percent, down from 4.4 per cent in 2000. More than 47 per cent of tariff lines are duty free. The highest tariffs apply mainly to textiles and clothing and to passenger motor vehicles and related items. Some 96.5 per cent of tariff lines are bound and Over 99 per cent of tariff rates are ad valorem. But the specific rate applies only to cheese and curd, the compound rate applies to used cars

The convergence of world economies has changed the dynamics of the trade. The goods produced by the countries are today crossing border and the lines of origin have blurred. Fierce competition has pushed producers to lower cost and provide better quality.

As shown in diagram 1, we can clearly see that the conditions where both act applies are different and somewhat similar. Under s. 4B in TPA, the conditions which differ from FTA conditions stated in s32D are:-

The importer must exercise the Harmonized Tariff Schedule to establish the appropriate “rate of duty of all imported articles” (NCBFAA Educational Institute, 2017).

Consumer gets the imported products at cheaper rates than that of domestic market. The disadvantages of the anti-dumping are such that the domestic industries who are producing goods and selling in their country could not make it to profit maximization because the buyers of the country are purchasing the dumped goods which are available at cheaper rates and the demand of goods in the domestic market is very low, this leads to the closure of those domestic industries. Some experts opine that such disadvantages can be overcome by making it mandatory to apply “a public interest clause” to antidumping. The Indian legal system specifies a limit for the levy of anti-dumping duty and it should not exceed dumping margin. These duties are on the discretion on the country or the exporters. Small countries like Taiwan do not have separate anti-dumping laws but these countries take some anti-dumping measures like in Taiwan Article 46 of Custom Law, 1967 empowers Custom Tariff Commission (CTC) and International Trade Commission (ITC) to handle anti-dumping

Local production within each region is assumed to result in no import duty. Thus, production from Brazil, Germany, and India can be sent to Latin America, Europe, and the rest of Asia without Japan, respectively, without incurring any import duties. Duties apply only to the raw material, production, and transportation cost component and not to the fixed cost component. Thus, a product entering Latin America with a raw material, production, and transportation cost of $10 incurs import duties of $3.