Export-Related Measures
BACKGROUND
Export-related measures are measures applied by the government of the exporting country on exported goods.
1. Export-license, Quota, Prohibition and Other Quantitative Restrictions
Restrictions to the quantity of goods exported to a specific country or countries by the government of the exporting country for reasons such as a shortage of goods in the domestic market, regulating domestic prices, avoiding antidumping measures or for political reasons. All of these measures are formally prohibited by GATT 1994, but may be applied under specific situations identified in article XI of GATT 1994.
Classification
- Export Prohibition
• Prohibition of exports of certain products.
Example: Export of corn is prohibited because of a shortage in domestic consumption.
Export Quotas
• Quotas that limit value or volume of exports.
Example: An export quota of beef is established to guarantee adequate supply in the domestic market.
- Licensing- or permit requirements to export
• Quotas that limit value or volume of exports.
Example: An export quota of beef is established to guarantee adequate supply in the domestic market.
- Export registration requirements
• A requirement to register products before being exported (for monitoring purposes).
Example: Pharmaceutical products need to be registered before being exported.
2. State-trading enterprises, for exporting; other selective export channels
- State-trading enterprises, for exporting (whether or not State-owned or -controlled) with special rights and privileges not available to other entities, which influence through their purchases and sales the level or direction of exports of particular products.
3. Export price-control measures
- Measures implemented to control the prices of exported products. Example: Different prices for exports are applied from the same product sold in the domestic market (dual pricing schemes).
4. Measures on re-export
- Measures applied by the government of the exporting country on exported goods which have originally been imported from abroad.
Example: Re-export of wines and spirits back to the producing county is prohibited. The practice is common in cross-border trade to avoid imposition of domestic excise tax in the producing country.
5. Export taxes and charges
- Taxes collected on exported goods by the government of the exporting country: they can be set either on a specific or an ad valorem basis. Example: An export duty on crude petroleum is levied for revenue purposes.
6. Export technical measures
- Export regulations referring to the technical specification of products and conformity assessment systems thereof:
- Inspection requirement - Control over the quality or other characteristics of products for export. Example: Exports of processed food products must be inspected for sanitary conditions.
- Certification required by the exporting country - Requirement by the exporting country to obtain sanitary, phytosanitary or other certification before the goods are exported. Example: Export of live animals must carry individual health certificates.
7. Export subsidies
- Financial contribution by a government or public body, or via government entrustment or direction of a private body (direct or potential direct transfer of funds: e.g. grant, loan, equity infusion, guarantee; government revenue foregone; provision of goods or services or purchase of goods; payments to a funding mechanism), or income or price support, which confers a benefit and is contingent in law or in fact upon export performance (whether solely or as one of several conditions), including measures illustrated in annex I of the Agreement on Subsidies and Countervailing Measures and measures described in the Agreement on Agriculture. Example: All manufacturers in country A are exempt from income tax on their export profits.
8. Export credits
- A credit opened by an importer with a bank in an exporter's country to finance an export operation