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e administration of bilateral agreements under the Multi- Fibre Arrangement and, more recently, the WTO Agreement on Textiles and Clothing and it also promotes an Orderly Marketing Agreements.

An import licence is not granted automatically. The licence may either be issued on a discretionary basis or may require specific criteria to be met before it is granted. The uses of the products need also to be specified. E.g. Licence to import steel is granted only if it is used for the construction of a bridge. Non economic licences can also be granted for religious, moral, cultural or even political reasons. E.g. Imports of alcoholic beverages are permitted only by hotels and restaurants.

A quota is a restriction of importation of specified products through the setting of a maximum quantity or value authorized for import.

We have different types of quotas;

Global quota

Global Quotas are established on the basis of the total quantity or value of imports of specific products. It is classified in 2 sub section; i.e. Unallocated quotas which uses the system of fist come first serve (e.g. Imports of wheat is subject to a maximum limit of 20 million tons per year from any country) and Quotas allocated to exporting countries whereby the quotas are pre-allocated among exporters (e.g. Imports of wheat is subject to a maximum limit of 20 million tons per year allocated to exporting countries according to the average export performance of the past three years).

Bilateral quotas

Bilateral quotas are for a specific exporting country. E.g. a maximum of 10 million tons of sugar may be imported from a certain Country.

Seasonal quotas

Seasonal quotas are established for a given period of the year, usually set for certain agricultural goods when domestic harvest is in abundance. An example will be quota for import of strawberries is established for imports from March to June each year.

Quotas linked with purchase of local goods

It is the percentages bought by the local importer.

Quotas for non-economic reasons

Non economic quotas enclose religious, moral or cultural and political aspects of the quota.

Tariff Rate Quotas

It is a system of multiple tariff rates applicable to a same product: the lower rates apply up to a certain value or volume of imports, and the higher rates are charged on imports which exceed this amount.

Quotas linked with domestic production

Compulsory linkage of imports (of materials or parts) with local production Example: Import of coal is limited to the amount used in the previous year in the production of electricity.

Other criteria like prohibition, suspension and different types agreement of certain products are also included under this heading.

3.1.4 Taxes other than customs tariff

Tax Measures, other than tariffs measures that increase the cost of imports in a similar manner, i.e. by fixed percentage or by a fixed amount.

Customs Surcharges, Service charges like (Custom inspection, processing and servicing fees and Merchandise handling or storing fees), and additional taxes are the different types of tax that a certain type of products need to abide.

3.1.5 Finance measures

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