Question

active bicycle company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. what category of nontariff barriers primarily uses such quality issues as a trade barrier?

Answer 1

Nontariff barriers, specifically quality issues, primarily use safety and quality standards as trade barriers.

Step-by-step explanation:

Nontariff barriers are regulations and requirements that a country imposes to make it more difficult or costly to import products.

One category of nontariff barriers is quality issues, which use safety and quality standards as trade barriers. In the case of Active Bicycle Company's rejected shipment, the customs administration of the recipient country rejected the bicycles because they did not include a required metal plate surrounding the chain.

This requirement is an example of a non-tariff barrier using a quality issue as a trade barrier.