Non-Tariff Barriers NTB : Types, Examples & Trade Impact

If you are building your business outside the big metros, expanding to international markets can feel exciting but also a little overwhelming. New buyers bring new opportunities, yet every country has its own rules, approvals and checks that decide whether your shipment moves forward or gets stuck. These rules are known as non-tariff barriers, and they influence how smoothly your products cross borders.

Reports from UNCTAD show that more than half of global trade is affected by such measures. For growing exporters, this means that even small issues such as missing certificates, incorrect labels or extra inspections can lead to delays, added costs or cancelled orders.

Understanding these barriers gives you more control and confidence. This blog will walk you through what non-tariff barriers are, why they matter, the different types you should know about and how they impact your international shipments. By the end, you will have a clearer picture of how to navigate these rules and keep your business moving without unnecessary hurdles.

What Are Non-Tariff Barriers and How Do They Differ from Tariff Barriers?

Non-tariff barriers are rules or restrictions that countries use to control the flow of imported goods without applying additional taxes. Instead of collecting a fee at the border, governments use measures such as strict quality checks, special licences, limits on how much can be imported or longer approval processes. These requirements make it more difficult for certain products to enter the market.

Difference Between Tariff and Non-Tariff Barriers:

Here are some points showing the difference between tariff and non-tariff barriers:

Difference	Non-Tariff Barriers	Tariff Barriers
Meaning	It’s the restrictions and or rules applied without taxes to control imports.	It’s a tax imposed on imported goods.
How does it work?	Uses regulations, rules, limits, and approvals to restrict imports.	Makes imported goods expensive by applying customs duty.
Impact on price	It may increase price indirectly because of delays, testing, compliance, etc.	It may directly increase the price of imported goods.
Purpose	To make sure that the quality, safety, and reduce competition for local businesses.	To generate revenue and protect local industries.
Common examples	Licenses, product standards, quotas, packaging rules, and safety checks.	Import tariffs and customs duty.

What Are the Main Types of Non-Tariff Barriers?

Non-tariff barriers come in different forms, and each one affects imports differently. The main types include:

1. Import Quotas: Limits on how much of a product can be imported to protect local industries.
2. Technical Barriers to Trade (TBT): Rules on product standards, packaging, labelling, testing and certifications to ensure imported goods meet national requirements.
3. Licensing Requirements: Special permissions or government licences needed before importing certain goods, especially sensitive or high-risk items.
4. Subsidies: Financial support given to local industries, making their products cheaper compared to imports.
5. Sanitary and Phytosanitary (SPS) Measures: Health-related rules for food, animals and plants to prevent diseases, pests and unsafe products from entering a country.
6. Rules of Origin: Criteria that determine where a product is made to prevent goods from being rerouted through other countries to bypass restrictions.
7. Embargoes: Complete bans on imports from certain countries or on specific products due to political, security or safety concerns.
8. Voluntary Export Restraints (VERs): Agreements where an exporting country limits how much it sends to another country to avoid stricter restrictions or maintain good relations.
9. Customs Procedures: Strict checks, slow processing or heavy documentation requirements that delay imports, whether intentionally or unintentionally.
10. Foreign Exchange Controls: Restrictions on how much foreign currency businesses can access for imports to manage currency outflow and protect national reserves.

What Real-World Examples Show How NTBs Affect Trade?

Here are some real-world examples of non-tariff barriers and how they can influence international trade.

1. India’s Toy Safety Standards (Technical Barrier to Trade): Imported toys must meet BIS safety certification. This improves safety but makes approvals longer and more expensive for foreign sellers.
2. US Sugar Import Limits (Import Quota): The US sets annual limits on sugar imports. This protects domestic farmers but restricts export opportunities for other countries.
3. EU Food Safety Checks (SPS Measure): The EU allows food imports only after strict checks on hygiene, animal health and pesticide levels. These rules ensure safety but increase testing costs and timelines for exporters.
4. Foreign Exchange Controls: Some countries restrict access to foreign currency. When businesses cannot obtain enough dollars or euros, they are unable to pay overseas suppliers, which creates a barrier to trade.
5. Japan’s Car Export Limit to the US (Voluntary Export Restraint): In the 1980s, Japan agreed to limit car exports to the US. This reduced trade tensions but led to higher car prices in the American market.

How Do Tariff and Non-Tariff Barriers Shape Today’s Trade Environment?

Tariff and non-tariff barriers influence how countries trade by affecting costs, market access and the competitiveness of local industries. They shape today’s trade environment in the following ways:

1. Protect Domestic Industries: Tariffs and non-tariff measures such as quotas, standards and licences help shield local businesses from cheaper foreign goods, giving domestic producers room to grow.
2. Impact Market Access: Non-tariff barriers like strict certifications, quotas or long approval processes can limit how easily foreign companies enter a market, even when tariff rates are low.
3. Affect Country-to-Country Relations: Trade barriers can influence negotiations, as countries may use them to encourage fair trade, revise agreements or respond to political or economic issues.
4. Promote Safety and Quality: Many non-tariff barriers aim to protect consumers through food safety checks, medicine approvals, toy standards and environmental rules, ensuring only safe and compliant products enter the market.

Simplify Customs and Documentation with ShiprocketX

Shipping products outside India can be complicated because each country has its own customs rules and paperwork requirements. Even small mistakes can delay your shipment or increase costs. ShiprocketX  helps simplify this process so you can ship confidently and without confusion.

ShiprocketX creates key customs documents such as commercial invoices and packing lists, saving you time and reducing the chance of errors. Different countries require specific information for clearance, and ShiprocketX guides you on what details to provide so your shipment is not delayed at customs.

Every product needs the correct Harmonised System (HS) code for smooth clearance, and ShiprocketX helps you choose the right one to avoid unnecessary hold-ups. ShiprocketX also ensures your shipments follow essential export rules, helping you avoid penalties, compliance issues, or product returns.

With accurate and complete documentation, your parcels move through customs faster, leading to quicker deliveries for international customers.

Conclusion

Non-tariff barriers may slow shipments, but they also push businesses to become more prepared, compliant, and globally competitive. Each requirement, whether a safety check or a certification, shapes how smoothly your products move across borders. The real advantage comes from understanding these rules early and building a system that works with them, not against them. With smart support tools like ShiprocketX, you can simplify complexities, stay compliant, and focus on growth. When you stay informed, you unlock more opportunities and move through global markets with confidence.