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Barriers - documents for payment A letter of credit is...

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BARRIERS A tariff or taxes imposed by government on goods entering its borders are used to generate revenue and regulate goods entering the country. Both Rwanda and Tunisia use import tariffs to regulate goods entering at their borders. The Q-drum falls under the category of “Transport equipment” which has an average final bound tariff of 96.9% in Rwanda and 30.9% in Tunisia, meaning that both Tunisia and Rwanda have committed to not increasing the rate of duty beyond an agreed level. The main nontariff barriers affecting trade with Rwanda are a weak infrastructure, lack of accounting records, an underdeveloped collateral system, and inefficient customs procedures. This affects the Q-drum because these nontariff barriers affect the payment for the product, the monetary funds available for purchasing the product, as well as making importing difficult and inefficient. Rwanda is working with the United States to eliminate tariff and nontariff barriers. For Tunisia the main nontariff barriers to trade are inconsistent procedures and customs
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Unformatted text preview: documents for payment. A letter of credit is normally required and additionally all customs and business documents for Tunisia must be in French. Both countries are members of the World Trade Organization, Rwanda joined in 1996 and Tunisia was a founding member joining in 1995. Being part of the World Trade Organization ensures that Rwanda and Tunisia are held accountable to GATT which guarantees protection for domestic industries through custom tariffs and other nontariff barriers. Additionally the World Trade Organization promotes fair trade in addition to free trade and provides countries with a forum for countries to meet and discuss trade issues and agreements. This is would help marketing of the Q-drum because it opens new markets and makes those already a part of the organization more easily accessible to companies doing business abroad. Page 3: World Trade Organization The World Bank...
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