BUSINESS ENVIRONMENT

What are the essential Objectives of Planning in India?

The basic objectives of planning in India, according to the Planning Commission, can be grouped
under the heads of growth, modernization, self-reliance and growth by raising national income, full
employment and social justice. Now, let us detail out the main objectives of Indian Plan.
1. High Rate of Growth:
Increase in national income as well as per capita income, is the first and foremost aim of Indian
planning. On looking plan-wise objectives of various plans, it is evident that the First five year plan
had envisaged a target of 11 per cent increase in national income while it rose by 18 per cent.The
Second Plan fixed the target of 25 per cent increase in national income over the plan period. Again,
Third Five Year plan aimed to secure an increase in national income of 5 per cent per annum.During
the Third Plan, the national income increased only by 11.2 per cent. The Fourth Plan had visualised
to attain the growth rate at 5.7 per cent per annum but it remained at 3.4 per cent per annum. The
new Sixth Five Year Plan achieved the growth rate of 5.2 per cent.Similarly, Seventh Plan has
achieved an annual growth rate of 5 per cent. Eighth plan had fixed the target of 5.6 per cent.
Similarly, Ninth Plan aims at achieving a growth rate of 7 per cent per annum.
2. Raising Investment Income Ratio:
Achieving a planned rate of investment within a given period to bring the actual investment as
proportion of national income to a higher level has been regarded significant due to two
reasons.Firstly, such an increase in output capacity is deemed to be needed to increase the output.
Secondly it is needed to bring the capital stock of the economy to ensure the growth of future output
capacity.
3. Social Justice:
Another major objective of Indian Five Year Plans is to provide social justice to the common folks
and weaker sections of the society. However, this social justice implies reducing the income
inequalities and removal of poverty. These two aspects have been well dealt in various drafts of five
year plans in our country.
4. Removal of Poverty:

Up to the end of the Fourth Five Year Plan, it was felt that the benefits of development have received
a raw deal to tackle the problem of poverty. In the Fifth Plan, there was a visible shift in the approach
which resulted in the Minimum Needs Programme.Earlier to it, there was 20 Point Economic
Programme to uplift village community, The Sixth Plan (1980-85) document mentioned that the
incidence of poverty in the country is still very high and necessary measures need to be adopted to
combat poverty. Similarly, seventh, Eighth and Ninth Plan Stressed for the removal of poverty in the
country.
5. Full Employment:
Unemployment problem is a chronic problem in undeveloped countries. Though, India has emerged
as a new developing country, yet it is in the grip of acute problem of disguised unemployment. Thus,
the crucial objective of IndianPlanning is the creation of conditions for attaining full employment
and the elimination of unemployment, underemployment and disguised unemployment.
6. Alleviating Three Main Bottlenecks:
Another objective of planning is the adoption of various measures to alleviate the three 'bottlenecks'
viz., agricultural production, the manufacturing capacity for producer goods and the balance of
payments.The various plans have in one way or other been concerned with the removal of these three
principal barriers for achieving stability-both internal and external-in the economy.
7. Self-Reliance:
Another objective of Indian Plans is self-reliance. The earlier two plans could not give emphasis to it
because they were formulated for rehabilitating and establishing basic key industries in the
country.Thus in the Third Five Year Plan, for the first time, the idea of self-reliance was clearly
mentioned, " dependence on foreign aid, will be greatly reduced in the course of the Fourth Plan.It
was planned to do away with confessional imports of food grains under PL-480. Foreign aid, net of
debt charges and interest-payments will be reduced to about half by the end of the Fourth Plan
compared to the current level".
8. Modernization:
For the First time, the idea of modernization was floated in the Sixth Five Year Plan. In a common
sense, it implies up-to dating the technology.But Sixth Plan draft denotes the term modernization, a
change in the structural and institutional set up of an economic activity, shift in the sectoral
composition of production, diversification of farm activities, an advancement of technology and
innovations are the part and parcel to a change from feudal system into a modern independent
entity. In agricultural sector, considerable achievement has been made.The total area under high
yielding varieties has been raised from 5.6 million hectares to 27.4 million hectares during the period

of 1970-71 to 1990-91. It further increased to 32.6 million hectares in 2000-01.Total area under food
grains was 115.6 million hectares in 1960-61 which increased to 121.9 million hectares in 200102.The consumption of chemical fertilizer also rose from 2.18 million tonnes to 17.3 million tonnes
from 1970-71 to 2000-01. Similarly, irrigated area rose from 38 million hectares in 1970-71 to 84.7
million hectares in 2000-01.The distribution of quality seeds seems to be highly erratic in the various
plan periods. By the end of 2000-01, about 80 per cent of villages were electrified and the
consumption of electricity in the agricultural sector rose by about 12.3 per cent per annum.

Five Dimensions of Corporate Social Responsibility

Environmental
The environmental dimension of corporate social responsibility refers to your business's
impact on the environment. The goal, as a socially responsible company, is to engage in
business practices that benefit the environment. For example, you might choose to use
recycled materials in your packaging or ad renewable energy sources like solar power to
your factory.

Social
The social dimension of corporate responsibility involves the relationship between your
business and society as a whole. When addressing the social dimension, you should aim to
use your business to benefit society as a whole. This could involve sourcing fair trade
products, for example, or agreeing to pay your employees a livable wage. It could also
involve taking on endeavors that benefit society, for instance using your resources to
organize charitable fundraisers.

Economic
The economic dimension refers to the effect that corporate social responsibility has on the
finances of your company. In an ideal world, where corporate social responsibility had no
costs, there would be no reason to limit it. But in the real world it is important to recognize
the financial impact that these actions have and to balance being a good corporate citizen
with making a profit.

Stakeholder
The stakeholders are all of the people affected by your company's actions. These include
employees, suppliers and members of the public. When considering the stakeholder
dimension of corporate social responsibility, consider how your business decisions affect
these groups. For example, you might be able to increase your output by having employees

work more, but you should consider the impact it will have on them, not just your bottom
line.

Voluntariness
Actions that fall into the voluntariness dimension are those that you are not required to do.
These actions are based in what your company believes is the correct thing to do. They may
be based in specific ethical values that your company holds. For example, you may believe
that using organic products is the right thing to do even if you are not required to do so.

A chamber of commerce (or board of trade) is a form of business network, e.g., a local
organization of businesses whose goal is to further the interests of businesses. Business owners in
towns and cities form these local societies to advocate on behalf of the business community. Local
businesses are members, and they elect a board of directors or executive council to set policy for
the chamber. The board or council then hires a President, CEO or Executive Director, plus staffing
appropriate to size, to run the organization.
The first chamber of commerce was founded in 1599 in Marseille, France.[1][2][3][4]It would be followed
65 years later by another official chamber of commerce, probably in Bruges, then part of the Spanish
Netherlands
A chamber of commerce is not a governmental body or institution, and has no direct role in the
writing and passage of laws and regulations that affect businesses. It may however, act as a lobby in
an attempt to get laws passed that are favorable to businesses.

Objectives of chamber of commerce:

Chambers of commerce seeks to achieve the following objectives:
i. To protect the interests of business community as a whole.

ii. To develop a sense of cooperation among their members.

iii. To collect and supply useful information to the members.
iv. To advise the Government on matter relating to trade, commerce and industry.
v. To consult the Central and State Governments on matters relating to trade, commerce and
industry.
vi. To assist the Government in making budget by expressing views on different sectors of the
country's economy.
vii. To bring to the notice of the Government the impact of various laws and regulations on business.
viii. To make the members aware of changes in the field of technology, marketing, financing, human
resources, etc.
ix. To talk to foreign businessmen and explore the areas where Indian businessmen can cooperate
and participate.
x. To draw plans and projects for encouraging the growth of trade and commerce in the country.
xi. To carry on research for the benefit of members.
xii. To protect the environment from industrial pollution.
xiii. To organize educational and training facilities for the members.
xiv. To provide legal advice to members.
xv. To act as arbitrators in order to solve disputes among the members.

World Trade organization:

The World Trade Organization (WTO) is an intergovernmental organization which
regulates international trade. The WTO officially commenced on 1 January 1995 under the Marakech
Agreement, signed by 123 nations on 15 April 1994, replacing the General Agreement on Tariffs and
Trade (GATT), which commenced in 1948.[5] The WTO deals with regulation of trade between
participating countries by providing a framework for negotiating trade agreements and a dispute
resolution process aimed at enforcing participants' adherence to WTO agreements, which are signed
by representatives of member governments[6]:fol.910 and ratified by their parliaments.[7] Most of the

issues that the WTO focuses on derive from previous trade negotiations, especially from
the Uruguay Round(19861994).
Functions of WTO
The former GATT was not really an organisation; it was merely a legal arrangement. On the other
hand, the WTO is a new international organisation set up as a permanent body. It is designed to play
the role of a watchdog in the spheres of trade in goods, trade in services, foreign investment,
intellectual property rights, etc. Article III has set out the following five functions of WTO;
(i) The WTO shall facilitate the implementation, administration and operation and further the objectives of this Agreement and of the Multilateral Trade Agreements, and shall also provide the frame
work for the implementation, administration and operation of the plurilateral Trade Agreements.
(ii) The WTO shall provide the forum for negotiations among its members concerning their
multilateral trade relations in matters dealt with under the Agreement in the Annexes to this
Agreement.
(iii) The WTO shall administer the Understanding on Rules and Procedures Governing the
Settlement of Disputes.
(iv) The WTO shall administer Trade Policy Review Mechanism.
(v) With a view to achieving greater coherence in global economic policy making, the WTO shall
cooperate, as appropriate, with the international Monetary Fund (IMF) and with the International
Bank for Reconstruction and Development (IBRD) and its affiliated agencies.
Objectives of WTO
Important objectives of WTO are mentioned below:
(i) to implement the new world trade system as visualised in the Agreement;
(ii) to promote World Trade in a manner that benefits every country;
(iii) to ensure that developing countries secure a better balance in the sharing of the advantages
resulting from the expansion of international trade corresponding to their developmental needs;
(iv) to demolish all hurdles to an open world trading system and usher in international economic
renaissance because the world trade is an effective instrument to foster economic growth;
(v) to enhance competitiveness among all trading partners so as to benefit consumers and help in
global integration;

(vi) to increase the level of production and productivity with a view to ensuring level of employment
in the world;
(vii) to expand and utilize world resources to the best;
(viii) to improve the level of living for the global population and speed up economic development of
the member nations.

COFEDREATION OF INDIAN INDUSTRY:

The Confederation of Indian Industry (CII) is an association of Indian businesses which works to
create an environment conducive to the growth of industry in the country.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a
proactive role in India's development process. Founded in 1895, CII has over 7200 members, from
the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over
1,00,000 enterprises from around 242 national and regional sectoral industry bodies. [1]
CII works closely with Government on policy issues, interfacing with thought leaders, and enhancing
efficiency, competitiveness and business opportunities for industry through a range of specialized
services and strategic global linkages.

With 64 offices, including 9 Centres of Excellence, in India, and 7 overseas offices

in Australia, China, Egypt, France, Singapore, UK, and USA, as well as institutional partnerships
with 224 counterpart organizations in 90 countries, CII serves as a reference point for Indian industry
and the international business community.
The CII Theme for 2014-15 is Accelerating Economic Growth,to strengthen a growth process that
meets the aspirations of todays India.
Ajay S. Shriram, Chairman and Senior Managing Director of DCM Shriram, has been elected
President of CII for the year 2014-15.[3][4] Sumit Mazumder, Chairman and Managing Director, TIL
Limited, has been elected as the President of CII for the year 2015-16. He succeeds Mr Ajay
Shriram as the new President. Dr. Naushad Forbes, Director, Forbes Marshall, has become the
President-designate of CII for the year 2015-16. Ms Shobana Kamineni, Executive ViceChairperson, Apollo Hospitals Enterprises Limited (AHEL) has been elected as Vice-President of CII
for the year 2015-16. Chandrajit Banerjee is the Director General.

The main objectives of CII are to:

(i) Identify, and strengthen industry's role in the economic development of the country.
(ii) Act as a catalyst in bringing about growth and development of the Indian industry.
(iii) Reinforce industry's commitment to society.
(iv) Work towards globalisation of Indian Industry and integration into world economy.
(v) Provide up-to-date information and data to industry and Government.
(vi) Create awareness and support industry efforts on quality, environment and consumer
protection.
(vii) Identify and address special needs of small scale sector.
(viii) Promote cooperation with counterpart organisations.

Federation of Indian Chambers of Commerce and Industry (FICCI)

The Federation of Indian Chambers of Commerce and Industry (FICCI) is an association of

business organizations in India. Established in 1927, on the advice of Mahatma Gandhi by GD

Birla and Purushottam Das Thakurdas, it is the largest, oldest and the apex business organisation in
India.[1] It is a non-government, not-for-profit organisation. FICCI draws its membership from the
corporate sector, both private and public, including SMEs and MNCs. The chamber has an indirect
membership of over 2,50,000 companies from various regional chambers of commerce. It is involved
in sector specific business policy consensus building, and business promotion and networking. It is
headquartered in the national capital New Delhi and has presence in 12 states in India and 8
countries across the world.[3]

MOTTO: Industry voice for policy change

The main objectives of FICCI are as follows:

(i) To promote healthy interface between the business community and the government.
(ii) To work for deregulation of the economy by persuading the government to lift administrative and
other controls.
(hi) To create conditions for the globalisation of the Indian economy
(iv) To assist members in export promotion, modernisation, quality control, pollution, control, etc.
(v) To assist government in achieving socio-economic goals of removing poverty and increasing
employment opportunities.
(vi) To promote scientific research, import substitution, and fullest possible utilisation of national
resources.

Mission & vision:

BUREAU OF INDIAN STANDARDS:

The Bureau of Indian Standards (BIS) is the national Standards Body of India working under the
aegis of Ministry of Consumer Affairs, Food & Public Distribution, Government of India. It is
established by the Bureau of Indian Standards Act, 1986 which came into effect on 23 December
1986.[1] The Minister in charge of the Ministry or Department having administrative control of the BIS
is the ex-officio President of the BIS.
The organization was formerly the Indian Standards Institution (ISI), set up under the Resolution
of the then Department of Industries and Supplies No. 1 Std.(4)/45, dated 3 September 1946. The
ISI was registered under the Societies Registration Act, 1860.
As a corporate body, it has 25 members drawn from Central or State Governments, industry,
scientific and research institutions, and consumer organizations. Its headquarters are in New Delhi,
with regional offices in Kolkata, Chennai, Mumbai, Chandigarh and Delhi and 20 branch offices. It
also works as WTO-TBT enquiry point for India.[2]

PURPOSE :- During the pre independence period, standardization activity was sporadic and confined
mainly to a few Government purchasing organization. However, immediately after independence,
economic development through coordinated utilization of resources was called for and the government
recognized the role for standardization in gearing industry to competitive efficiency and quality production.
The Indian Standards Institution (ISI) was, therefore, set up in 1947 as a registered society, under a
Government of India resolution.
The Indian Standards Institution gave the nation the standards it needed for nationalization,
orderly industrial and commercial growth, quality production and competitive efficiency. However, in 1986
the government recognized the need for strengthening this National Standards Body due to fast changing
socio-economic scenario and according it a statutory status. Thus came the Bureau of Indian Standards
Act 1986 and on 1 April 1987, newly formed BIS took over staff assets, liabilities and functions of
erstwhile ISI. Through this change over, the Government envisaged building of the climate of quality

culture and consciousness and greater participation of consumers in formulation and implementation of
National Standards.
OBJECTIVES:-

Harmonious development of standardization, marking and quality certification

To provide new thrust to standardization and quality control

To evolve a national strategy for according recognition to standards and integrating them with
growth and development of production and exports

NASSCOM:
The National Association of Software and Services Companies (NASSCOM) is a trade
association of Indian Information Technology (IT) and Business Process Outsourcing (BPO) industry.
[1]

Established in 1988, NASSCOM is a non-profit organisation.NASSCOM is a global trade body with over

1500 members, of which over 250 are companies from the United States, UK, EU, Japan and China.
NASSCOM's member companies are in the business of software development, software services,
software products, IT-enabled/BPO services and e-commerce.NASSCOM facilitates business and trade
in software and services and encourages the advancement of research in software technology. It is
registered under the Indian Societies Act, 1860.NASSCOM is headquartered in New Delhi, India, with
regional offices in the cities of Mumbai, Chennai, Hyderabad, Bangalore, Pune, and Kolkata.

SALOGAN: transform business, transform India

MISSION: Sustainable industry growth harness technology to benefit society.
OBJECTIVES:

Establish India as a hub for innovation and professional services

Deepen the IT-BPM industrys footprint in its core markets and beyond, by building strategic partnerships
with its customers
Facilitate growth and maintain Indias leadership position as a trusted and safe place to do business
Be a conduit of change through thought leadership, research, market intelligence and membership
engagement
Work with government to shape policy in all key areas of activities such as skill development, trade and
business services
Provide platforms for members and other stakeholders to interact and network
Expand the countrys pool of relevant and skilled talent and harness the benefits of ICT to drive inclusive
and balanced growth

Transform Business, Transform India is the overall objective of NASSCOM and its member organisations

BENEFITS OF BEING A MEMBER OF NASSCOM

Insights on Industry Trends

Access to NASSCOM research and intelligence that tracks industry trends, growth opportunities and best
practices
Access to a repository of industry presentations, blogs, discussions and articles
An opportunity to engage with the NASSCOM research team and share case studies or transformational
stories

Opportunities to enhance visibility

Visibility through features and interviews on the NASSCOM website, as well as the monthly newsletter,
NASSCOM Newsline
Speak, sponsor or participant opportunities at NASSCOM events
Chance to contribute to blogs and newsletters as thought leaders
Brand building through NASSCOM awards and recognitions
Innovation
Emerge 50
Healthcare IT
Social Innovation
Excellence in IT Security
Gender Diversity
DSCI Security & Privacy
Talent Innovation
Nominate your customer in India for the IT User Awards

Opportunity to network, build and share best practices

Chance to leverage the Member database on NASSCOMs website to post a trade lead, or participate in one
Chance to share or learn best practices through city level networking sessions on human capital
development, data security, contract management, quality, diversity and more.

Industry Forums

Multiple industry forums at NASSCOM provide a unique opportunity for member organisations to shape
industry development,, build specific initiatives and help sub-industry sectors to leverage their potential.

Global Trade Development

Members can participate in opportunities for global networking and build business at NASSCOM's global
events, and through delegations and road shows
Network with companies in other countries through their delegations to India
Receive information regularly about policy updates in different countries
Understand issues related to visas, immigration through NASSCOMs mobility best practices sessions
Learn about trends and opportunities in different markets through country reports

Policy Advocacy

Be represented among regulators, and governments of India and other countries on issues that impact IT
and BPO companies at a national, international and regional level.
Share and gain insights on current regulations and how they are relevant to Indian IT-BPO organisations
Engage with policy makers and parliamentarians and help spread the message of the impact of IT on India

Focus on Emerging companies

Help emerging companies address their key challenges

Mentor emerging companies
Participate in community building to share best practices with start-ups and smaller organisations

Work for the development of the Domestic Market

Engage in the cluster development programmes

Register your companys solutions on e-govReach, a one-stop platform for e-governance solutions in India
Share case studies of successful IT implementations across India

Education and Talent Development

Participate in and share insights on NASSCOMs foundation skills programme for IT and BPO
Mentor a college
Share your academia connect story with NASSCOM
Get involved in NASSCOMs industry-academia faculty development outreach programme
Engage and build strategies for enhanced IT adoption in India

Partner with NASSCOM for various activities

Collaborate with NASSCOM on focused events, workshops in all states/cities

Engage in CSR activities through the NASSCOM Foundation

Trade barriers are restrictions imposed on movement of goods between countries. Trade
barriers are imposed not only on imports but also on exports. The trade barriers can be broadly
divided into two broad groups: (a) Tariff Barriers, and (b) Non-tariff Barriers.
TARIFF BARRIERS
Tariff is a customs duty or a tax on products that move across borders. The most important of
tariff barriers is the customs duty imposed by the importing country. A tax may also be imposed
by the exporting country on its exports. However, governments rarely impose tariff on exports,
because, countries want to sell as much as possible to other countries. The main important tariff
barriers are as follows:
1.

Specific Duty: Specific duty is based on the physical characteristics of goods. When a

fixed sum of money, keeping in view the weight or measurement of a commodity, is levied as
tariff, it is known as specific duty.
For instance, a fixed sum of import duty may be levied on the import of every barrel of oil,
irrespective of quality and value. It discourages cheap imports. Specific duties are easy to

administer as they do not involve the problem of determining the value of imported goods.
However, a specific duty cannot be levied on certain articles like works of art. For instance, a
painting cannot be taxed on the basis of its weight and size.
2.

Ad valorem Duty: These duties are imposed according to value. When a fixed percent

of value of a commodity is added as a tariff it is known as ad valorem duty. It ignores the

consideration of weight, size or volume of commodity.The imposition of ad valorem duty is more
justified in case of those goods whose values cannot be determined on the basis of their
physical and chemical characteristics, such as costly works of art, rare manuscripts, etc. In
practice, this type of duty is mostly levied on majority of items.
3.

Combined or Compound Duty: It is a combination of the specific duty and ad valorem

duty on a single product. For instance, there can be a combined duty when 10% of value (ad
valorem) and Re 1/- on every meter of cloth is charged as duty. Thus, in this case, both duties
are charged together.
4.

Sliding Scale Duty: The import duties which vary with the prices of commodities are

called sliding scale duties. Historically, these duties are confined to agricultural products, as
their prices frequently vary, mostly due to natural factors. These are also called as seasonal
duties.
5.

Countervailing Duty: It is imposed on certain imports where products are subsidised by

exporting governments. As a result of government subsidy, imports become more cheaper than
domestic goods. To nullify the effect of subsidy, this duty is imposed in addition to normal duties.
6.

Revenue Tariff: A tariff which is designed to provide revenue to the home government is

called revenue tariff. Generally, a tariff is imposed with a view of earning revenue by imposing
duty on consumer goods, particularly, on luxury goods whose demand from the rich is inelastic.
7.

Anti-dumping Duty: At times, exporters attempt to capture foreign markets by selling

goods at rock-bottom prices, such practice is called dumping. As a result of dumping, domestic
industries find it difficult to compete with imported goods. To offset anti-dumping effects, duties
are levied in addition to normal duties.

8.

Protective Tariff: In order to protect domestic industries from stiff competition of imported

goods, protective tariff is levied on imports. Normally, a very high duty is imposed, so as to
either discourage imports or to make the imports more expensive as that of domestic products.
Note: Tariffs can be also levied on the basis of international relations. This includes single
column duty, double column duty and triple column duty.

NON-TARIFF BARRIERS
A non tariff barrier is any barrier other than a tariff, that raises an obstacle to free flow of goods
in overseas markets. Non-tariff barriers, do not affect the price of the imported goods, but only
the quantity of imports. Some of the important non-tariff barriers are as follows:
1.

Quota System: Under this system, a country may fix in advance, the limit of import

quantity of a commodity that would be permitted for import from various countries during a given
period. The quota system can be divided into the following categories:
(a)

Tariff/Customs Quota

(b)

(c)

Bilateral Quota

Tariff/Customs Quota: Certain specified quantity of imports is allowed at duty free or at a

(d)

Unilateral Quota
Multilateral Quota

reduced rate of import duty. Additional imports beyond the specified quantity are permitted only
at increased rate of duty. A tariff quota, therefore, combines the features of a tariff and an import
quota.

Unilateral Quota: The total import quantity is fixed without prior consultations with the

exporting countries.

Bilateral Quota: In this case, quotas are fixed after negotiations between the quota fixing

importing country and the exporting country.

Multilateral Quota: A group of countries can come together and fix quotas for exports as

well as imports for each country.

2.

Product Standards: Most developed countries impose product standards for imported

items. If the imported items do not conform to established standards, the imports are not
allowed. For instance, the pharmaceutical products must conform to pharmacopoeia standards.
3.

Domestic Content Requirements: Governments impose domestic content requirements

to boost domestic production. For instance, in the US bailout package (to bailout General
Motors and other organisations), the US Govt. introduced Buy American Clause which means
the US firms that receive bailout package must purchase domestic content rather than import
from elsewhere.
4.

Product Labelling: Certain nations insist on specific labeling of the products. For

instance, the European Union insists on product labeling in major languages spoken in EU.
Such formalities create problems for exporters.
5.

Packaging Requirements: Certain nations insist on particular type of packaging

materials. For instance, EU insists on recyclable packing materials, otherwise, the imported
goods may be rejected.
6.

Consular Formalities: A number of importing countries demand that the shipping

documents should include consular invoice certified by their consulate stationed in the exporting
country.
7.

State Trading: In some countries like India, certain items are imported or exported only

through canalising agencies like MMTC. Individual importers or exporters are not allowed to
import or export canalised items directly on their own.
8.

Preferential Arrangements: Some nations form trading groups for preferential

arrangements in respect of trade amongst themselves. Imports from member countries are
given preferences, whereas, those from other countries are subject to various tariffs and other
regulations.
9.

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.
10.

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.