There is a global economic system in the modern world. All countries, with few exceptions, play a role in this system. We will talk about the role of export and import administration regulation policy as a way of regulating of the international trade influence on a country’s internal economy.
An import and export definition.
An export is the exportation of goods, works and services outside a country.
An import is the opposite operation, which involves the importing of goods or the receipt of works or services from abroad.
At first glance, export is more profitable for countries in the main, since it contributes to the increase of internal levels of employment and production. An export is also the main source of foreign currency inflows for unstable economies.
An import, on the contrary, leads to the withdrawal of foreign currency outside the country, and also contributes to increased competition between foreign and domestic producers, which usually creates additional difficulties for such domestic producers.
However, the above described situation changes when we talk about the raw materials export or labor export, and about the import of goods that are not produced in a country and their deficiency is observed.
Export of raw materials is the least cost-effective type of an export, as the country receives the lowest possible cash inflows.
The departure of skilled workers abroad (export of labor) can lead to a decline of entire branches of the economy.
If a country cannot set up the production of certain products, then import is actually the only one source of such products.
An export and import regulation can be carried out in two main ways – tariff and non-tariff.
- The tariff regulation method involves the introduction or cancellation of export and import duties, as well as changing duty rates to a greater or lesser extent.
- A non-tariff method of regulation involves the introduction of various quantitative quotas, license, qualitative requirements or even a total ban on export/import.
The rational policy of import/export administration regulation should include the following basic principles:
- It is expedient to apply export duties only on raw materials, scarce goods and rare exports.
- Also it is expedient to introduce import duties for the protection of national producers, if the prices for imported goods are significantly lower, and the qualitative characteristics are very similar (antidumping). It will also be appropriate for prestige imports.
- In the event of a shortage of certain goods in the national market, it is advisable to minimize their import duties.
Also, it is expedient to introduce the minimum import duties on the raw materials, which are imported and on technologies.
- Duties, as well as export and import quotas, should be imposed taking into account the international treaties and obligations of a country as a member of international organizations and communities.
- A relevant state authorities should monitor export and import on a regular basis and make appropriate adjustments to their regulatory trade policy.