Glossary of Trade Terms

Anti-dumping duty

A special duty imposed to offset the price effect of dumping that has been determined to be materially harmful to domestic producers.

Additional duties imposed by an importing country to offset government subsidies in an exporting country when the subsidized imports cause material injury to domestic industry in the importing country.

Dumping

The sale of an imported commodity at a price lower than that at which it is sold within the exporting country. Dumping is considered an actionable trade practice when it disrupts markets and injures producers of competitive products in the importing country.

Duty

A tax imposed on imports by the government of a country, typically based on the value of the goods or other factors such as weight or quantity.

Export quotas

Specific restrictions or ceilings imposed by an exporting country on the value or volume of certain exports designed, for example, to protect domestic producers and consumers from temporary shortages of the goods affected or to bolster their prices in world markets.

Non-tariff barrier

An indirect measure used to discriminate against foreign companies, for example, extensive inspection procedures for foreign imports that create barriers to entering the market.

Surcharge, or surtax

A tariff or tax on imports in addition to the existing tariff, often used as a safeguard measure.

Tariff

A duty (or tax) levied on goods transported from one customs area to another. Tariffs raise the prices of imported goods, thus making them less competitive within the market of the importing country.

Tax

A financial charge or other levy imposed on an individual or a legal entity by a nation or sub-national entity.

Trade barrier

A difficulty to be overcome by the exporter in penetrating a target market. It can be physical (distance, geography, climate, poor transportation systems); political and regulatory (instability, protectionism, currency restrictions, complex documentation requirement); systemic (electrical, safety standards, etc); cultural (language, local practices, tastes and preferences); or due to corrupt and inefficient business practices.