I (Meaning and importance of Exports) Unit Structure

2. Prior Import Deposits
 
Some countries insist that importers should deposit even up 
to 100% of their imports value in advance with a specified authority, 
normally their central bank. Only after such deposits, the importers 
are given a green signal to import the goods. 
3. Foreign Exchange Regulations 
The importer has to ensure that adequate foreign exchange 
is available for import of goods by obtaining a clearance from 
Exchange Control Authorities prior to the concluding of contract 
with the supplier. 
4. Consular Formalities 
Some countries impose strict rules regarding consular 
documents necessary for importing goods. They include import 
certificates, Certificate of origin and certified consular invoice. 
Penalties are provided for non-compliance of such documentation 
formalities. 
5. State Trading 
State trading is useful for restricting imports from abroad as 
final decision about import are always taken by the government. 
State trading acts are one non-tariff barrier. 
6. Export Obligation 
Countries, like India, impose compulsory export obligation on 
certain importers. This is done to restrict imports. Those 
companies, who do not fulfill export obligation (to compensate for 
imports) have to pay a fine or penalty. 
7. Preferential Arrangements
Some nations form trading groups are preferential 
arrangements in respect of trade amongst themselves. Imports 

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from member countries are given preferences, whereas, those from 
other countries are subject to various tariffs and other regulations. 
8. Other Non-tariff Barriers 
There are a number of other non-tariff barriers such as health 
and safety regulations, technical formalities, environmental 
regulations, embargoes etc.