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Non-tariff Measures and the Fight Against Malaria - Obstacles to Trade in Anti-malarial Commodities

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This paper focuses on specific non-tariff measures (NTMs) that could negatively affect the affordability and accessibility of anti-malarial commodities - it introduces non-tariff measures and other obstacles to trade. It presents the results of a business-perception survey, conducted by ITC, on NTMs faced by importers and exporters of anti-malarial commodities (medicines for treating/preventing of malaria, diagnostic tests, mosquito nets, insecticides for indoor residual spraying, and pumps for spraying indoor insecticides). The paper is structured as follows: Section 1 introduces non-tariff measures and other obstacles to trade. In addition it presents the NTM classification and methodology underlying this paper. Furthermore section 2 and 3 provide the survey results and section 4 presents the conclusions.

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TECHNICAL
PAPER


NON-TARIFF MEASURES AND
THE FIGHT AGAINST MALARIA


OBSTACLES TO TRADE IN ANTI-
MALARIAL COMMODITIES






NON-TARIFF MEASURES AND
THE FIGHT AGAINST MALARIA


OBSTACLES TO TRADE IN ANTI-
MALARIAL COMMODITIES





NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


ii MAR-11-203.E


Abstract for trade information services


ID=42238 2011 F-09.02.01 NON


International Trade Centre (ITC)
Non-Tariff Measures and the Fight against Malaria: Obstacles to Trade in Anti-malarial Commodities
Geneva: ITC, 2011. ix, 21 pages (Technical paper)
Doc. No. MAR-11-203.E


Paper focusing on specific non-tariff measures (NTMs) that could negatively affect the affordability and
accessibility of anti-malarial commodities - introduces non-tariff measures and other obstacles to trade;
present the results of a business-perception survey, conducted by ITC, on NTMs faced by importers
and exporters of anti-malarial commodities (medicines for treating/preventing of malaria, diagnostic
tests, mosquito nets, insecticides for indoor residual spraying, and pumps for spraying indoor
insecticides).


Descriptors: Non-Tariff Measures, Trade Barriers, Pharmaceuticals, Medicaments, Medical supplies,
Nets, Insecticides, Pumps.


For further information on this technical paper, contact Ms. Ursula Hermelink, hermelink@intracen.org.




English


The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United
Nations.


ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org)


Views expressed in this paper are those of consultants and do not necessarily coincide with those of
ITC, UN or WTO. The designations employed and the presentation of material in this paper do not
imply the expression of any opinion whatsoever on the part of the International Trade Centre
concerning the legal status of any country, territory, city or area or of its authorities, or concerning the
delimitation of its frontiers or boundaries.


Mention of firms, products and product brands does not imply the endorsement of ITC.


This technical paper has not been formally edited by the International Trade Centre.


Digital images on the cover: Pharmaceuticals photo: © WHO/P. Virot
http://www.who.int/mediacentre/multimedia/2002/eth_pharm/en/index.html © AED File Photo; © Bonnie
Gillespie, Voices for a Malaria Free Future


© International Trade Centre 2011


ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short
extracts of this technical paper may be freely reproduced, with due acknowledgement of the source.
Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or
translated material should be sent to ITC.




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


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Acknowledgements


The paper was commissioned by the Academy for Educational Development – Applied Research and
Technical Services, LLC (AED-ARTS) for the Malaria Taxes and Tariffs Advocacy Project (M-TAP), and
was jointly financed by M-TAP and the International Trade Centre (ITC). It was prepared by Ursula
Hermelink and Carla Vaca-Eyzaguirre, Associate Market Analysts, under the supervision of Mondher
Mimouni, Chief ad-interim, Market Analysis and Research of ITC. The support and comments of Carolin
Averbeck, Christian Knebel, Mathieu Loridan, Olga Skorobogatova, Joachim Thraen and Benjamin
Prampart are greatly acknowledged. On the side of M-TAP, special thanks are due to Halima Mwenesi
(AED-ARTS), Elisabeth Sommerfelt (AED) and Richard Tren (Africa Fighting Malaria).







NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


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Contents
Acknowledgements iii 
Abbreviations vii 
Executive summary ix 


1.  Introduction 1 
1.1.  Non-tariff measures and other obstacles to trade 2 
1.2.  The non-tariff measure classification for trade in goods 2 
1.3.  The non-tariff measure survey on anti-malarial commodities 5 


1.3.1.  Implementation 6 
1.3.2. Survey data analysis 6 


2.  Reported non-tariff measures and related procedural obstacles 7 
2.1.  Affected companies or institutions, and product groups 7 
2.2.  Major problems 8 


2.2.1. Product registration 10 
2.2.2.  Inspection requirements and testing 11 
2.2.3. Charges and taxes 12 


3.  Other factors influencing the price of anti-malarial commodities 12 
3.1.  Exchange rate 13 
3.2.  Transportation 13 
3.3.  Tendering process and distribution 13 


4.  Conclusion 14 


Appendix  Survey questionnaire 17 


Table 1:  List of procedural obstacles to comply with NTMs, and other obstacles to trade 3 
Table 2:  Number of surveyed importing and exporting companies / institutions, by country 5 
Table 3:  Number of companies/institutions per product group 5 



Figure 1: Share of respondents reporting burdensome NTMs, by product group (as % of all
interviewed entities trading this type of product) 7


Figure 2: Number of respondents, by country of destination of the traded product (home country
for importers, partner country for exporters) 8


Figure 3: Non-tariff measures reported as problematic 9
Figure 4: Procedural obstacles related to the burdensome NTMs reported 9 




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Abbreviations


Unless otherwise specified, all references to dollars ($) are to United States dollars.


The following abbreviations are used:


ACT artemisinin-based combination therapies
AED-ARTS Academy for Educational Development – Applied Research and Technical Services, LLC
HS Harmonized Commodity Description and Coding System
ITC International Trade Centre
NTB non-tariff barrier
NTM non-tariff measure
WHO World Health Organization
WTO World Trade Organization




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NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


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Executive summary


Malaria can be prevented and treated. Nevertheless, it is one of the most critical and deadly diseases
affecting the developing world. In the fight to eradicate malaria, improving access to anti-malarial
commodities such as mosquito nets and anti-malarial medicines is a key concern. To the extent that these
commodities are imported, prices depend, among others, on the import process and its related costs.
While information about customs duties is available, very little is known about the specific non-tariff
measures (NTMs) that could negatively affect the affordability and accessibility of anti-malarial
commodities for the most vulnerable populations.


To address this information gap, the International Trade Centre (ITC) conducted a business-perception
survey on NTMs faced by importers and exporters of anti-malarial commodities. Building upon ITC’s large-
scale business perception survey on NTMs and other barriers to trade, this survey was undertaken for the
Malaria Taxes and Tariffs Advocacy Project (M-TAP) in collaboration with the Academy of Educational
Development – Applied Research and Technical Services, LLC (AED-ARTS). A total of 59 companies and
institutions trading anti-malarial commodities were contacted; 31 companies based in eight different
countries and all importing into or exporting to malaria-endemic countries completed in-depth telephone
interviews.


The survey results show that a significant number of measures applied by malaria-endemic countries are
perceived as hindering trade, thus hampering the supply and increasing the price of anti-malarial
commodities. In total, about two-thirds of survey respondents indicated problems related to non-tariff
measures, with a noteworthy similarity of problems experienced by respondents independent from the
product’s final destination. In particular, importers and exporters of anti-malarial medicines and, to a lesser
extent, mosquito nets are affected by challenging NTMs. In contrast, surveyed entities reported fewer
problems related to importing or exporting insecticides, spray pumps and rapid diagnostic tests.


Measures that assess conformity of products, including product registration, inspection requirements and
testing, were mentioned most frequently as being burdensome. This indicated that importers and exporters
have difficulties in demonstrating compliance with technical requirements imposed by importing countries
rather than difficulties in complying with these requirements themselves. Other NTM cases relate to
charges and taxes, non-technical inspection at customs and government procurement.


With the exception of taxes, the non-tariff measures themselves were not perceived as problematic but
difficulties were reported to be linked to procedural obstacles, i.e. conditions outside the regulation or
measure itself that complicate (or render impossible) compliance with an NTM. As such, nearly half of the
NTMs were perceived as burdensome because of delays in administrative procedures. In addition,
unusually high fees (e.g. related to product registration) were mentioned, followed by lack of transparency
and the necessity of informal payments.


Among the obstacles to trade captured by the survey other than burdensome non-tariff measures,
exchange rate fluctuations and transportation cost were reported to have a significant effect on the prices
of the traded products for the final consumers.


The survey results underline the need to tackle non-tariff barriers to trade, along with tariffs, if governments
wish to improve access to anti-malarial commodities effectively, particularly for their most vulnerable
populations.









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1. Introduction
Malaria can be prevented and treated. Nevertheless, it is one of the most critical and deadly diseases
affecting the developing world. This mismatch has lead to a number of international commitments and
declarations with respect to fighting malaria, amongst them, both
from the year 2000, the Abuja Declaration and the Millennium
Development Goals (see boxes).


In the fight to eradicate the disease, improving access to anti-
malarial commodities such as mosquito nets and anti-malarial
medicines is a key concern. At the same time as donations and
public provision of anti-malarial commodities play an important
role, ensuring affordable prices of those products provided
through the private sector, can significantly contribute to the
affected population’s enhanced access to these goods.


To the extent that anti-malarial commodities are imported, prices
depend, among others, on the import process and its related
costs. Many countries still impose customs duties on these
products and studies have shown that measures and procedures
applied at the border of importing countries are hampering
access to anti-malarial commodities.1 While information about
customs duties is available,2 very little is known about the
specific non-tariff measures (NTMs) that could negatively affect
the affordability and accessibility of anti-malarial commodities for
the most vulnerable populations.


To address this information gap, the International Trade Centre
(ITC), an agency of the United Nations and the World Trade
Organization (WTO), conducted a business-perception survey on
NTMs faced by importers and exporters of anti-malarial
commodities. This survey was done for the Malaria Taxes and
Tariffs Advocacy Project (M-TAP) of the Academy of Educational
Development – Applied Research and Technical Services, LLC
(AED-ARTS) and complements an analysis of tariffs levied on
and tariff revenues obtained from anti-malarial commodities,
which was undertaken as part of the same project.3 For the
survey, the following five product groups were considered:


1) Medicines for preventing or treating malaria (including artemisinin-based combination therapies)


2) Diagnostic tests (including rapid diagnostic test kits)


3) Mosquito nets (including long-lasting insecticide-treated nets)


4) Insecticides (in particular those for indoor residual spraying)


5) Appliances for applying insecticides (i.e. pumps for spraying indoor insecticides)



1 See e.g. Bate, R., R. Tren and J. Urbach, Still Taxed to Death: An Analysis of Taxes and Tariffs on Medicines, Vaccines, and
Medical Devices, AEI-Brookings Joint Center for Regulatory Studies, Working Paper, 2005.
2 The web-based application Market Access Map for example, a market analysis tool developed by the International Trade Centre to
enhance the transparency of market access, contains customs tariffs (import duties) and other measures applied by 187 importing
countries and territories to products from 239 countries and territories. Most favoured nation and preferential applied import tariff rates
are shown for products at the most detailed national tariff line level. More information about this and other tools at
www.intracen.org/marketanalysis.
3 International Trade Centre, Taxing health - the relevance of tariff revenue from anti-malarial commodities in selected countries, ITC
technical paper, 2011.


Millennium Development
Goal 6


Combat HIV/Aids, malaria and other
diseases


Target C
Have halted by 2015 and begun to


reverse the incidence of malaria and
other major diseases


Millennium Development
Goal 8


Develop a global partnership for
development


Target E
In cooperation with pharmaceutical


companies, provide access to
affordable essential drugs in


developing countries


Abuja Declaration
‘…[By signing the Declaration, the
African leaders] committed
themselves to an intensive effort to
halve the malaria mortality for Africa’s
people by 2010…’




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


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This paper is structured as follows: the remainder of section 1 introduces non-tariff measures and other
obstacles to trade and presents the NTM classification and methodology underlying this paper. Sections 2
and 3 present the survey results, section 4 concludes.


1.1. Non-tariff measures and other obstacles to trade
In recent years, an increasing number of international trade rules and standards have been developed to
regulate and facilitate trade, which is considered key for countries’ economic and social development. In
parallel, the trade arena has seen a proliferation of regional and bilateral trade agreements that, like
multilateral trade negotiations, seek to reduce tariffs among others.


While customs duties have been declining over the years to an unprecedented low level today, new trade
measures have gained prominence and become increasingly problematic for importing and exporting
companies, especially in developing countries. Anti-malarial commodities have not been exempt from
these new measures.


NTMs can induce obstacles to trade that are less visible and more complex than tariffs. They refer to a
wide range of measures other than import duties, such as technical regulations, product standards, and
quotas. It is important to note that non-tariff measures are not automatically non-tariff barriers (NTBs). The
former can very well have no impact at all on trade and is as such a neutral concept, while the latter
implies a negative impact. This report aims to identify these burdensome NTMs (i.e. non-tariff barriers), but
also procedural obstacles, which are problems linked to conditions outside the regulation or measure itself
that complicate (or render impossible) the compliance with an NTM. For example, to import a product it
may be necessary to have a specific certification (NTM); however, the certification authority or testing
laboratory can be excessively costly, slow in response or be located too far away (procedural obstacles
related to the NTM).


In addition to burdensome NTMs and procedural obstacles, problems related to the more general business
environment (such as infrastructure) are discussed to the extent that they arise during the survey.


This document uses the term ‘obstacles to trade’ for all types of obstacles other than tariffs experienced by
companies, including NTBs, procedural obstacles and bottlenecks related to the business environment. By
definition, companies can experience obstacles to trade in their home country, in trading partner countries
but also in transit countries.


As a final note, it is important to recall that NTMs can of course be introduced for legitimate reasons, such
as to protect human, animal and plant health, but they can also be misused as an instrument of protection.
In this context, it should be noted that the NTM survey and this paper do not attempt to categorise NTMs
as legitimate or illegitimate.


1.2. The non-tariff measure classification for trade in goods
A new international taxonomy of NTMs was prepared by a group of technical experts from eight
international organizations: the Food and Agriculture Organization of the United Nations (FAO), the
International Monetary Fund (IMF), ITC, the Organisation for Economic Co-operation and Development
(OECD), the United Nations Conference on Trade and Development (UNCTAD), the United Nations
Industrial Development Organization (UNIDO), the World Bank and the World Trade Organization (WTO),
and was finalized for adoption in November 2009. This classification is used to collect, classify, analyse
and disseminate information on NTMs received from official sources (government regulations), and for
working with perception-based data.4 The NTMs discussed in this paper are classified according to a
slightly adapted and simplified version of this classification, which takes into account insights obtained by
ITC during a test phase of large-scale NTM surveys. The NTM classification differentiates measures
according to 16 chapters (from A to I, see box). The different types of procedural obstacles that can be
experienced when attempting to comply with an NTM are listed in table1.



4 Cited with slight modifications from International Trade Centre, Market Access, Transparency and Fairness in Global Trade: Export
Impact for Good 2010 (2010), Box 5, pp. 43-44. Available online at: http://www.intracen.org/publications (accessed in May 2011).




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


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Table 1: List of procedural obstacles to comply with NTMs, and other obstacles to trade
A. Administrative 
burdens 


A1. Large number of different documents 
A2. Documentation is difficult to fill out 
A3. Difficulties with translating documents from or into other languages 
A4. Large number of checks (e.g. inspections, checkpoints weigh bridges ) 
A5. Numerous administrative windows/organizations involved 


B. Information and 
transparency issues 


B1. Information is not adequately published and disseminated 
B2. No due notice for changes in procedure 
B3. Regulations change frequently 
B4. Requirements and processes differ from information published  


C. Inconsistent or 
discriminatory 
behaviour of officials 


C1. Inconsistent classification of products 
C2. Other inconsistent or arbitrary behaviour of officials 


D. Time constraints  D1. Delay in administrative procedures 
D2. Delay during transportation 
D3. Deadlines set for completing requirements are too short 


E. Payment  E1. Unusually high fees and charges 
E2. Informal payment (e.g. bribes) 
E3. Need to hire a local customs agent to get shipment unblocked 


F. Infrastructural 
challenges 


F1. Limited or inappropriate facilities (e.g. storage, cooling, testing, fumigation) 
F2. Inaccessible or limited transportation system (e.g. poor roads, road blocks) 
F3. Technological constraints (e.g. information and communications technologies) 


G. Security   G1. Low security level for persons and goods  
H. Legal constraints  H1. No advance binding ruling procedure 


H2. No dispute settlement procedure 
H3. No recourse to independent appeal procedure 
H4. Poor intellectual property rights protection (e.g. breach of copyright, patents, trademarks, etc.) 
H5. Lack of recognition (e.g. of national certificates) 


I. Other  I1. Other obstacles 




Box: Classification of non-tariff measures


A. Technical regulations
B. Conformity assessment
C. Pre-shipment inspection and other formalities applied by the importing country
D. Charges, taxes and other para-tariff measures
E. Quantity control measures (e.g. licences, quotas, prohibitions)
F. Finance measures
G. Price control measures
H. Anti-competitive measures
I. Trade-related investment measures
J. Distribution restrictions
K. Restriction of post-sales services
L. Subsidies
M. Government procurement restrictions
N. Intellectual property
O. Rules of origin
P. Export-related measures




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Chapter A on technical regulations refers to product-related requirements that are legally binding and set
by the country where the product is exported (or imported into). Technical regulations define the product
characteristics, technical specifications or the production processes and post-production treatment, and
also include the applicable administrative provisions with which compliance is mandatory.


Chapter B on conformity assessment refers to technical procedures such as testing, inspection,
certification and traceability, which confirm and control that the product fulfils the requirements laid down in
the technical regulations.


Chapter C on pre-shipment inspection and other (customs) formalities refers to the practice of checking,
consigning, monitoring and controlling shipment of goods before or at entry into the destination country.
Inspections and quarantine are examples.


Chapter D on charges, taxes and other para-tariff measures refers to measures, other than tariffs, that
increase the cost of imports in a similar manner, i.e. by a fixed percentage or by a fixed amount.


Chapter E on quantity control measures includes measures restraining the quantity of imports of any
particular good, from all sources or from specified sources of supply, either through restrictive licensing,
fixing of a predetermined quota or through prohibitions.


Chapter F on finance measures refers to measures that are intended to regulate the access to and cost of
foreign exchange for imports and to define the terms of payment.


Chapter G on price control measures includes measures implemented to control prices of imported articles
in order to: support the domestic price of certain products when the import price of these goods is lower;
establish the domestic price of certain products because of price fluctuation in domestic markets, or price
instability in a foreign market; and counteract the damage resulting from the occurrence of ‘unfair’ foreign
trade practices.


Chapter H on anti-competitive measures refers to measures that are intended to grant exclusive or special
preferences or privileges to a limited group of economic operators (e.g. certain producers or exporters).


Chapter I on trade-related investment measures covers measures that restrict investment by requesting
local content, or requesting that investment be related to export to balance imports.


Chapter J on distribution restrictions refers to restrictive measures related to internal distribution of
imported products.


Chapter K on restriction on post-sales services refers to measures restricting the provision of post-sales
service in the importing country by producers of exported goods.


Chapter L on subsidies includes measures related to domestic support provided by a government or
government body to producers, such as direct or potential transfer of funds (e.g., grants, loans, equity
infusions), payments to a funding mechanism and income or price support.


Chapter M on government procurement restrictions refers to measures controlling the purchase of goods
by government agencies, generally by preferring national providers.


Chapter N on intellectual property refers to measures related to intellectual property rights in trade.
Intellectual property legislation covers patents, trademarks, industrial designs, lay-out designs of integrated
circuits, copyright, geographical indications and trade secrets.


Chapter O on rules of origin covers laws, regulations and administrative determinations of general
application applied by the government of importing countries to determine the country of origin of goods.


Chapter P on export-related measures encompasses all measures that countries apply to their exports. It
includes export taxes, export quotas or export prohibitions, among others. This chapter has to be used
when the measure is applied by the exporting country, i.e., when certain documentation has to be granted
by the home country's customs, which is not required by the importing partner. (All the other chapters (A to
O) refer to measures that countries apply to their imports.)


Source: ITC NTM survey classification booklet for interviewers (2010).





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1.3. The non-tariff measure survey on anti-malarial commodities
The survey underlying this paper builds on ITC’s large-scale business perception survey on NTMs and
other barriers to trade, which was developed for in-depth national studies aimed at identifying at product,
sector and partner country levels the predominant obstacles to trade that a country’s exporting and
importing companies experience in their daily operations. These large-scale surveys were tested in seven
pilot countries throughout 2008 and 2009. At the time of writing, surveys were completed or ongoing for a
total of ten countries, with another nine planned for 2011.


While the large-scale NTM surveys focus on one country at a time and cover all export sectors, the survey
adapted for this study looked at importers and exporters from several different countries and of anti-
malarial commodities only. The selection criterion for companies was that they had to either import into or
export to a malaria-endemic country. Given the complexity of obtaining a comprehensive list of entities
trading anti-malarial commodities and due to severe time constraints, ITC relied on a contact list provided
by the Academy for Educational Development (AED) that included 38 importing and 21 exporting
companies.


Table 2: Number of surveyed importing and exporting companies / institutions, by
country


Importers: 29 (25*) Exporters: 6


Benin: 1 Denmark: 1


Cambodia: 7 (6*) Nigeria: 1


Nigeria: 7 (4*) South Africa: 1


South Africa: 3 Switzerland: 2


Uganda: 11 United States: 1


* Four companies abandoned the interview before completion. In brackets
the number of companies / institutions without counting these four entities.


In total 35 companies and institutions participated in the phone interviews: 29 importers and 6 exporters of
anti-malarial commodities (see country distribution in table 2). The institutions interviewed included two
governmental agencies, four non-governmental/international organizations, and 29 private companies.
Four importers (one governmental agency and three private companies) abandoned the interview before
completion. Table 3 lists for each type of anti-malarial commodity the number of importers (or exporters) of
these products (with several companies having more than one type of anti-malarial commodity in their
portfolios).


Table 3: Number of companies/institutions per product group


Product group Number of companies / institutions


Medicine 17


Diagnostic tests 12


Mosquito nets 18


Insecticides 16


Appliances 12


Note: An importer or exporter can trade more than one type of product.
Total number of companies/institutions: 31.





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Given the number and the method for selecting the interviewed exporters and importers and given the lack
of information on the total number of companies trading anti-malarial commodities with malaria endemic
countries, the survey results should be treated as anecdotal evidence rather than results that are
representative for the studied countries or would allow generalization across malaria endemic countries.
Nevertheless, the results allow important insights into obstacles other than tariffs faced by importers and
exporters when trading anti-malarial commodities.


1.3.1. Implementation


The malaria NTM survey was conducted through in-depth telephone interviews with the objective of (a)
identifying companies that experienced non-tariff obstacles to trade and (b) capturing at the product level
and by partner country which exact NTMs were challenging for the importing/exporting entity and why. The
interviews lasted between 35 and 45 minutes and were performed by an ITC technical officer with
experience in NTM classification and survey analysis. The interviews were conducted at ITC facilities in
Geneva, Switzerland between 15 June and 13 July 2010.


The questionnaire used for the interviews (see appendix) consists of three parts. The first part covers
some basic characteristics of the entity (e.g. type of the company / institution), the products imported or
exported, and establishes whether or not burdensome NTMs and procedural obstacles were experienced
over the past 12 months. Where this is the case, each problem is recorded in detail during the second part
of the interview. The interviewer helped respondents identify the relevant government-imposed regulations,
affected products (6-digit level of the Harmonized System), the partner country exporting or importing
these products, and the country applying the regulation (i.e. home, partner or transit country). The last part
of the questionnaire contains three questions on the importer’s (or exporter’s) business operations.


Each burdensome measure (regulation) is classified according to the NTM classification described in the
previous section. The questionnaire captures not only the type of burdensome NTMs, but also procedural
obstacles linked to it, the place where the obstacle is experienced, and the agencies involved, if any.


The NTM survey is confidential which is key to ensuring the greatest degree of participation, integrity and
confidence in the data’s quality.


1.3.2. Survey data analysis


The analysis of results is based on ‘cases’. Each case consists of one NTM (a government-mandated
regulation), one company and product affected by this NTM, and one partner country applying the reported
NTM. For example, if one company reports three products, each of them affected by the same NTM
applied by a given partner country, the results would include 3 cases. If one product is affected by two
NTMs in the same partner country, this would result in 2 cases. Similarly, if two different companies report
a problem with respect to the same product, partner country and NTM, it would be counted as two cases.
Linked to each ‘NTM case’ is, where applicable, the procedural obstacle (or obstacles) reported by the
surveyed entities.


The next two sections present the survey results. First is a general overview of the reported NTMs and
their related obstacles. Subsequently, the most frequently reported NTMs are discussed alongside the
specific challenges faced by respondents when complying with these NTMs. Section 3 then discusses the
results obtained with regard to other issues affecting anti-malarial commodity affordability and accessibility
that survey respondents raised during the in-depth interview process.





NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


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2. Reported non-tariff measures and related procedural obstacles


2.1. Affected companies or institutions, and product groups
Of the 31 respondents who completed the interview, about two-thirds – 18 private companies and one
governmental agency – indicated problems related to non-tariff measures; in addition, one company
mentioned only problems related to the general business environment. Interestingly, no non-governmental
organizations (NGO) or international organizations interviewed reported on burdensome NTMs or other
obstacles to trade. This could be because these organizations benefit from a special status and simplified
importing procedures.


In total, 21 cases were reported: 10 for medicine, 1 for diagnostic tests, 6 for mosquito nets, and 2 each for
insecticides and appliances for applying insecticides (see also figure 1 where these numbers are
expressed as a percentage of all entities in the sample trading each type of anti-malarial commodity).
Pharmaceutical products and mosquito nets seem most affected by regulations perceived as problematic:
nearly 60% of respondents active in importing or exporting anti-malarial medicine and more than 30% of
those trading mosquito nets mention problems related to NTMs. This may be due to stricter product quality
requirements, in particular for anti-malarial medicine, but also due to each entity’s trade value and volume
of these goods; interviewees principally reported challenges for the main anti-malarial commodity they
trade. In contrast, diagnostic tests, insecticides and spray pumps seem less affected by problematic non-
tariff measures.


Figure 1: Share of respondents reporting burdensome NTMs, by product group
(as % of all interviewed entities trading this type of product)




Note: Total number of companies/institutions trading malaria medicine: 17; diagnostic tests: 12; mosquito nets: 18; insecticides: 16;
appliances for applying insecticides: 12 (see table 3).


Figure 2 disaggregates by country of destination (i.e. the home country for importers and partner country
for exporters) the number of respondents, distinguishing between those that report at least one
burdensome NTM (grey part of the bar) and those who indicate no problems at all (blue). With the
exception of Benin, where the only importer interviewed (an NGO) did not mention any non-tariff barrier,
and Mozambique, for which two exporting companies reported no problems, burdensome NTMs are
reported for all countries of destination for anti-malarial commodities in the sample. As a note of caution
and as indicated earlier, the sample size and selection do not allow inferences about the actual incidence
of burdensome NTMs and other obstacles to trade in the respective countries.


0%


10%


20%


30%


40%


50%


60%


70%


1. Medicine 2. Diagnostic tests 3. Mosquito nets 4. Insecticides 5. Appliances




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


8 MAR-11-203.E


Per NTM case, between one and three procedural obstacles were mentioned for a total of 31. When asked
whether the reported problems had an impact on the product availability in the market, the majority of
respondents (70%) said that the problems caused a delay in product accessibility to the affected
population and all but one stated that the burdensome measure affected the price of the concerned
product.


Figure 2: Number of respondents, by country of destination of the traded product
(home country for importers, partner country for exporters)




Note: Total number of respondents: 31.


2.2. Major problems
The non-tariff measures perceived by survey respondents as most challenging when trading anti-malarial
commodities are shown in figure 3. More than one-third of reported NTM cases (8 of 21) are related to
product registration in the importing country. Inspection requirements were mentioned as burdensome in
five cases, while measures related to product testing were perceived as challenging in two cases. These
first three categories, combined responsible for over 70% of reported cases, all belong to chapter B of the
NTM classification containing the group of measures that regulate the conformity assessment of products,
i.e. technical procedures such as testing, inspection, certification and traceability that confirm and control
that the product fulfils the requirements laid down in technical regulations.5 This indicates that importers
and exporters have difficulties demonstrating compliance with technical requirements imposed by
importing countries rather than difficulties complying with these requirements themselves - interestingly,
only one case refers to technical regulations (summarized in figure 3 in the category ‘other’).


In total, three NTM cases relate to charges and taxes (chapter D of the NTM classification), of which two
cases concerned customs surcharges and one merchandise handling or storing fees. Other burdensome
NTMs mentioned included non-technical inspection at customs and issues related to government
procurement.


In the case of importers, all regulations or bottlenecks reported referred to their home country or a transit
country. In the case of exporters (e.g. Denmark or South Africa), they referred to the partner country.



5 Definition from the ITC NTM survey classification booklet for interviewers (2010).


0


2


4


6


8


10


12


Benin Kenya Colombia Cambodia Nigeria South Africa Uganda Mozambique


Companies reporting no NTM
Companies reporting at least one NTM




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 9


Figure 3: Non-tariff measures reported as problematic



Note: In brackets the classification code for the respective NTM (see also box 1 for a list of chapters of the
NTM classification).


Figure 4 summarizes the procedural obstacles that were experienced by respondents with respect to the
non-tariff measures mentioned above. Per NTM, up to three procedural obstacles we reported for a total of
31 for the 21 non-tariff measures. Nearly half of the NTMs were perceived as burdensome because of
delays in administrative procedures (10 cases, i.e. 32.1% of all procedural obstacles reported). In seven
cases (22.6% of all procedural obstacles), unusually high fees and charges were mentioned, followed by
lack of transparency and the necessity of informal payments (five cases each, 16.1%). The most frequently
mentioned NTMs and the related procedural obstacles are reviewed in detail in the next section.


Figure 4: Procedural obstacles related to the burdensome NTMs reported



Note: In brackets the classification code for the respective procedural obstacle (see also table 1).


38.1%


23.8%


9.5%


9.5%


4.8%


14.3% Product registration (BA1)


Inspection requirement (BA4)


Testing (BA2)


Customs surcharges (DA0)


Merchandise handling or
storing fees (DB2)


Other


32.3%


22.6%


16.1%


16.1%


9.7%


3.2%


Delay in administrative procedures
(D1)


Unusually high fees and charges
(E1)


Information is not adequately
published and disseminated (B1)


Informal payment (E2)


Limited/Inappropriate facilities
(F1)


Other inconsistent or arbitrary
behaviour of officials (C2)


n=21


n=31




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


10 MAR-11-203.E


2.2.1. Product registration


The survey indicates that for respondents, the process of product registration was the most troublesome
regulation with which to comply: 38.1% of all NTMs reported in the survey referred to product registration.
If a company wants to import anti-malarial commodities it has to register the specific product with the local
authorities, usually the ministry of health. Subsequently, the product is usually certified according to
national health regulations and an import licence is issued for the specific product that can then be legally
imported. Importers of anti-malaria medicine turn out to be especially affected by problems arising in the
product registration process. The main procedural obstacles reported with respect to product registration
match the most frequently mentioned obstacles displayed in figure 4: delays in administrative procedures,
charges and informal payments, and issues of transparency. These are discussed in more detail below.


Many enterprises importing anti-malarial commodities mentioned that the initial registration process was
the most challenging; for example, respondents experienced problems when applying for the required
product registration documents, such as the import licences. The most pressing issue seems to be
administrative delays, which were mentioned in five of the eight cases related to product registration.
More generally, respondents reported that they had to wait for several months or even up to one year
before they received the documents necessary to start
importing the anti-malarial commodity. Importers reported
that even when all the documents required for the import
licence were submitted to the issuing agency (in most cases,
the national drug regulation authority), it could take several
months to get the certificate or even only an update on the
current status of the issuing process. According to some importers, this is due to lack of trained officials,
understaffed issuing agencies and general institutional inefficiency. The interviewees also mention that
although they can anticipate the adverse conditions that they often face with regard to shipment (especially
landlocked countries) and customs formalities, the insecurity about when they will receive the necessary
import documentation makes business planning and punctual delivery of anti-malarial commodities to the
customer very challenging. As an importer of ACTs stated, ‘product registration takes a long time (up to 6
months), with irregularities, which makes it difficult to plan easily.’


Another major concern mentioned was payments related to product registration, including fees and
informal payments. Several importing companies reported that the ‘verification fee’ applied by a national


drug authority was 2% of the commodity import value. The
fee was perceived as a significant cost as their anti-malarial
commodities were valued at several million US dollars.
Furthermore, high registration and verification fees also
seem to open the door to informal payments and corruption:
one responding enterprise importing ACTs reported that
‘ministry of health officials have to be bribed to let products
pass.’ Similarly, an exporter of mosquito nets reported that
the importing country’s ‘government unexpectedly applied


fees for environmental licence testing although we know that products are not actually being tested,’ and
that governments often consider product registration fees as an additional source of income (rather than a
measure to cover administrative costs). Another respondent estimated that unofficial charges for licences,
permits and clearance amounted to about 6%-7% of import value – a significant share in the total shipment
value that is passed on to the final consumer.


 38.1% of reported NTM cases (8 of 21) concern product registration.
 In five of these eight cases (62.5%), problems related to product registration


caused delays in product accessibility to the population.


 In all cases, problems related to product registration had a negative impact on the
price charged for the product.


‘Product registration takes a long time (up to 6
months), with irregularities, which makes it
difficult to plan easily.’


‘In the registration process, the national drug
authority required additional testing, apart
from officially acknowledged testing labs, so
that officials can be sent overseas to “inspect"
the facilities, which they take as a free
holiday.’




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 11


The case of an unexpected fee for an environmental license leads to another problem experienced by
importers and exporters regarding product registration: the lack of clear and transparent information
about the registration process and requirements. Respondents discussed frequent changes in the
registration process that are not sufficiently communicated, thus causing additional delays. The problems
range from new documents requested (such as the abovementioned environmental licence) to new
registration or implementation procedures. For example, an exporter reported that in order to sell long-
lasting treated mosquito nets to a government’s national malaria programme they needed to conduct field
trials to start the registration process, although the product was recommended by the WHO Pesticide
Evaluation Scheme. Despite the WHO recommendation, authorities did not allow registration of this
product because the mosquito nets had an ingredient considered to be toxic. This example shows the
need for more transparency in product-specific import requirements and better accessibility to this
information and related documentation for importing and exporting companies.


The abovementioned problems pose considerable challenges for importers and exporters with respect to
planning and timely delivery of anti-malarial commodities. More than half of respondents who reported
product registration as problematic stated that these difficulties caused significant delays of more than four
weeks and adversely affected the accessibility of the anti-malarial commodity for the local population. In
addition, all respondents indicated that these problems had a negative impact on the price charged for the
traded product.


2.2.2. Inspection requirements and testing


Behind product registration, inspection requirements and testing were the non-tariff measures most
frequently mentioned as hampering the importing process of anti-malarial commodities in destination
countries. These are conformity assessment measures through which importers or exporters have to prove
their product complies with established requirements in the importing country before being able to access
local markets. In other words, it is not the technical regulation (such as requirements regarding active
ingredients or the production process) itself that poses the problem, but the process of showing that
imported products comply with them. Only entities trading medicines and mosquito nets mentioned
inspection requirements and testing as burdensome NTMs.


Similar to the initial product registration process, testing and inspection was perceived as an obstacle
primarily because of the time delays experienced. Whereas product registration is usually done before the
product leaves the country of manufacturing or export, testing and inspection take place at the importing
country’s border, with potentially considerable implications for the efficiency (and predictability) of product
delivery.


The most common reason cited by the interviewees for
delays at customs was the high traffic of arrivals at the
port of the importing country. As one mosquito net importer
noted, the ‘inspection process at customs takes too long as


the port is often congested, especially the port Tin Can Island
in Lagos.’ Other concerns mentioned by importers were
insufficient training of customs officials, insufficient staff
members to process import requests efficiently and high
levels of bureaucracy. Some importers of quinine injections
also reported that the clearing process was not well


organized, that there were inadequate testing facilities and obsolete technology, and that the procedures


 33.3% of reported NTM cases (7 of 21) concern testing and inspection
requirements.


 In six of these seven cases (86%), problems related to testing and inspection
requirements caused delays in the product accessibility to the population.


 In all cases, problems related to testing and inspection requirements were
reported to have a negative impact on the price charged for the product.


‘The inspection process at customs takes too
long as the port is often congested.’


‘There are not enough local testing facilities;
product samples need to be sent to foreign
testing laboratories.’




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


12 MAR-11-203.E


and delays experienced in many instances depended on the individual clearing agents. Overall, six of
seven institutions that reported testing and inspection as challenging stated that problems related to these
measures caused delays, of usually between one and six weeks, in anti-malarial product accessibility to
the population.


Respondents also mentioned that delays create a loophole for informal payments as this becomes a
means for ‘accelerating’ the time-consuming testing and inspection procedures, even when anti-malarial
commodities are imported as part of a national anti-malaria programme. It is therefore not surprising that
all respondents who reported difficulties in complying with testing and inspection requirements stated that
these problems lead to higher product prices. Several respondents remarked in this context that when
commodities are destined for national health campaigns, given the limited public anti-malaria budget
available from the affected country or the donor organization, this price increase means that fewer than
foreseen (and necessary) supplies of the anti-malarial commodities are available.


2.2.3. Charges and taxes


Charges and taxes are measures other than customs duties that increase the cost of imports at the border.
They can take the form of a fixed percentage levied on the total value of the merchandise, or of a specific
amount levied on the basis of volume or weight. In the survey, customs surcharges and service charges in
the form of merchandise handling and storing fees were mentioned.6 As these fees are in most cases
applied independently from the product type, it is not surprising that the three cases reported concern three
different products: mosquito nets, medicine and diagnostic tests.


The charges and taxes are the only examples of non-tariff measures mentioned by respondents in this
particular survey which in itself were already perceived as a problem, rather than being a problem because
of related procedural obstacles. Generally the rates were considered too high with reported fees ranging
from 5%-10% of shipment value. Interviewees questioned the logic of imposing such charges and fees, in
particular on potentially life-saving medicines and mosquito nets.


Nevertheless, important procedural obstacles were also linked to these measures, mainly concerning
transparency and bribery. Respondents mentioned being unsure what these taxes were used for or
whether they were official at all (e.g. a ‘withholding’ tax for rapid malaria diagnostic tests) and that customs
officials charged informal taxes to importers, offering to circumvent even higher official taxes.


3. Other factors influencing the price of anti-malarial commodities
In addition to requesting information specifically on restrictions and regulations (NTMs) and their related
obstacles to trade, the survey included questions about other issues affecting importers’ or exporters’
operations that could hamper access to anti-malarial commodities for the importing countries’ populations.
The interviewees were asked to specify in particular additional factors that impacted the price of the
product in the importing country. These could be related to the product’s country of origin, the transit
country (or countries) as well as the destination country.


Sixty-five percent (65%) of the companies facing obstacles to trade (13 of 20, all private sector) reported
on additional factors affecting their prices. These other factors are discussed in the next section in
declining order of frequency with which they were mentioned.



6 Customs surcharges are an ad hoc trade policy instrument to raise fiscal revenue or to protect domestic industry, while service
charges are fees imposed for inspections, quarantines or other services provided by the customs authorities (e.g. storing fees).


 14.3% of reported NTM cases (3 of 21) concern charges and taxes.
 In all cases, problems related to customs and service charges had a negative


impact on the product’s end-price.




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 13


3.1. Exchange rate
Among the other factors affecting anti-malarial commodity prices, problems linked to the fluctuation of
exchange rates, usually between US dollars and the local currency, was the leading point mentioned (11
cases). Many interviewed companies reported that products priced in US dollars became relatively more
expensive in recent months. Where anti-malarial commodities are not purchased directly by the local
population but by the national health department or an international donor, price increases tend to
decrease the quantities purchased as the allocated budget usually stays fixed.


3.2. Transportation
For 10 respondents, transportation problems were reported to adversely impact prices of anti-malarial
products. The main concerns raised were inaccessible and limited transportation systems (such as poor
roads, road blocks and slow or unreliable trains) and transport costs in general, in particular for air-freight.


Transportation cost turned out to be especially relevant for companies importing into or exporting to
landlocked Uganda, usually having to rely on transit through Kenya. In particular the port of Mombasa was
perceived as crowded and causing import delays. One company stated that ‘the Mombasa port is too small
and congested; also, there are weighbridges and customs controls all the time on the way to Uganda,
which slows down the transport.’ As a result, some importers from Uganda use airfreight instead of boats
and trucks or trains to guarantee more rapid and reliable
transport. However, this usually implies a sharp increase in
the transportation cost, which in turn increases the price of
the imported anti-malarial commodity. These observations
are in line with the results of ITC’s large-scale enterprise
survey on NTMs for Uganda,7 that also identified the poor
quality of both railways and roads, along with frequent and often unannounced controls, informal payments
and insufficient export- and import-related facilities (e.g. cooled storage) as major factors that make the
export and import processes more burdensome and costly.


The Uganda example illustrates that landlocked developing countries face a double burden, as they do not
only depend on the conditions (e.g. customs and infrastructure) within the country, but also on those in
transit countries, making them particularly dependent on neighbouring states when shipping goods via
land.


3.3. Tendering process and distribution
An issue that emerged throughout the in-depth interviews concerned the way that anti-malarial
commodities, in particular anti-malaria medicine, was purchased and distributed in the destination country.
The importing procedure usually starts with the tendering process in which anti-malaria product producers
enter an official bidding process to supply national health ministries with the commodities required for
health campaigns. Often, this process causes severe delays (up to six months). One exporter of
insecticides mentioned that ‘in the tendering (bidding) process, governments make last-minute decisions,
leaving little time for importers to acquire the necessary anti-malarial commodities, so the goods have to be
flown in by plane, which makes them more expensive, potentially resulting in sub-optimal provision of
those goods (governments use less materials in campaigns as the budget is fixed and materials are more
expensive when transported by air).’


In addition, it was reported that throughout this legal tendering process, in which companies place a bid to
get a mandate to supply anti-malarial products, the receiving country accepts bribes and awards mandates
accordingly. For instance, an exporter supplying appliances for indoor spraying of insecticides to public
health projects indicated that officials from the ministry of health require ‘personal visits to the overseas
facilities’, mainly located in Japan, before they approve the anti-malarial appliances. Such practices are
perceived as unfair, with importers indicating that such requirements do not contribute to allocating limited
resources effectively in fighting malaria.



7 Report forthcoming.


‘The overland transport [through the transit
country] is slow and burdensome. However,
transport by air is expensive.’




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


14 MAR-11-203.E


Another concern raised was the lack of official retail prices
for anti-malaria medicine in some countries; one ACT
importer stated that there was ‘no maximum retail price for
malaria drugs’, opening the door to higher prices. Similarly,
another importer reported that there were ‘too many parties
involved between the importing company and the final
consumer; several parties in between make a profit, pharmacists for example’. A more direct link between
the producing and importing companies and the final consumer was therefore considered helpful for
decreasing prices, particularly of medicine.


4. Conclusion
Despite the small sample size, the business-perception survey on obstacles to trading anti-malarial
commodities provided a range of insightful observations that characterize the particular challenges that
importers and exporters of these goods face in their daily operations. The newly developed NTM
classification allowed the analysis of problems related to NTMs in a more structured and globally
comparable way than was previously possible. The in-depth phone interview asked for elaboration on
statements made, so the survey methodology captured the multifaceted nature of problems related to non-
tariff measures and related procedures. In addition, since all survey data is confidential, the more sensitive
issues such as bribery were reported frankly and in detail in most cases.


The survey results identify two main areas of concern with respect to non-tariff measures, linked to
efficiency and transparency. With respect to the efficiency, survey respondents highlighted important
institutional deficiencies, including lack of (sufficiently trained) staff, in serving product registration
demands in particular; but also inefficient customs procedures that lead to significant administrative delays.
In other words, it is not the procedures and requirements that are perceived as problems but the time-
consuming path to complete and fulfil them. In addition, these delays open the door to bribery in exchange
for speeding up the importation process. Improving institutional capacities with the view to enhance the
general efficiency of administrative procedures, such as product registration or clearing and inspection at
customs, could therefore support a smooth importation of anti-malarial commodities.


Second and linked to the above, transparency was a recurring topic during the interviews. Even when
procedures are time-consuming and relatively complicated, transparency on the expected administrative
processing time can enhance planning and allow better timing of imports. In addition, clear and easily
available information, such as on the number and types of documents needed (for product registration or
importation), on the testing required and acknowledged testing facilities, and on taxes as well as other
charges and fees applied, can significantly reduce uncertainty on the prevailing legislation, limit the scope
for corruption and avoid those delays due to wrong or incomplete information (e.g. missing documents).


In addition to problems related to transparency and efficiency, many survey respondents expressed a lack
of understanding of taxes and fees applied on anti-malarial commodities imports, in particular medicines
and mosquito nets. These charges, which were reported to reach 10% of the import value, were in general
perceived as too high (apart from often being suspected to be informal rather than formal taxes) and as
detrimental to the final product price.


Among the obstacles to trade other than burdensome non-tariff measures, exchange rate fluctuations and
transportation cost were reported to have a significant effect on the final consumer prices of the traded
products.


Concerning the different types of anti-malarial commodities, the results suggest that above all medicines
and, to a lesser extent, mosquito nets, are affected by challenging non-tariff measures. In contrast,
surveyed entities reported fewer problems related to importing or exporting insecticides, spray pumps and
rapid diagnostic tests.


The survey results show that a significant number of measures applied by malaria endemic countries are
perceived as hindering trade, thus hampering the supply and increasing the price of anti-malarial
commodities. The present survey has revealed a noteworthy similarity of problems experienced by the
interviewed importers and exporters, independent from the product’s final destination. It is therefore safe to


‘Too many parties are involved between the
importing company and the final consumer;
several parties in between make a profit...’




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 15


say that trade in anti-malarial commodities is affected by burdensome NTMs and other obstacles to trade
across malaria endemic countries. To draw conclusive statements on challenges related to specific product
groups and countries, a large-scale survey would be necessary. Thoroughly understanding and addressing
NTMs that affect the accessibility of anti-malarial commodities will be indispensible for countries that wish
to reach the goal of eradicating malaria. As a consequence, if government authorities aim to improve
access to essential life-saving goods effectively, particularly for their most vulnerable populations, they
should not only reduce or eliminate tariffs on these commodities, but also tackle the non-tariff barriers to
trade.





NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


16 MAR-11-203.E





NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 17


Appendix Survey questionnaire


BASIC
INFORMATION



Complete Q1-Q9 before the interview.
Q1. Company location (city):                                                                                                                        
Q2. Date of interview:                                                                                                                        
Q3. Company’s unique number (as indicated in the sample frame):                                                            
Q4. Company name:                                                                                                                        
Q5. Type of company or organization (select only one box):


1 Producing and importing company
2 Agent, broker, forwarding company, transport company
3 Agency of an international organization, non-governmental organization (NGO), etc.
4 Governmental agency


Q6. Entity in charge of your import process and compliance with customs procedures and other import related
regulations:
Multiple answers possible
1 Our company itself (our company has import specialist)
2 Partner company abroad which exports goods to our company
3 Specialized agent/broker/forwarding company
4 Other (please specify):                                        
5 I do not know
Q7. Respondent name:                                                                                                                        
Q8. Job title/Function:                                                                                                                        
Q9. Department:                                                                                                                        




SECTION 1: PRODUCTS IMPORTED


Q1. Does your company import anti-malarial commodities pertaining to one (or more) of the
following categories?


Make multiple selections if necessary:
1 Malaria medicine (finished formulation)
2 Diagnostic tests
3 Mosquito net
4 Insecticides (indoor insecticides)
5 Appliance for application of insecticides (only for spraying indoor insecticides)

If respondent only imports 1 type of product go to Q3. If respondent imports several types of products, ask
Q2.

Q2. Which one of the groups that you mentioned is the main group of anti-malarial commodities
that your company imports?
If respondent has difficulties identifying the sector, list the groups he mentioned in Q1. Then, select one
group only.
1 Malaria medicine (finished formulation)
2 Diagnostic tests
3 Mosquito net
4 Insecticides (indoor insecticides)
5 Appliance for application of insecticides (only for spraying indoor insecticides)





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18 MAR-11-203.E


Q3. Do you implement any measure for quality control of products, distribution and trading? What
is the mechanism in place (for example, to protect from counterfeit)?
If respondent has difficulties identifying the measure, refer to the list below.
Multiple answers possible.

1 National essential drugs regulations/standards
2 Pharmacopeia specifications
3 WHO/GMP requirements


(GMP = Good manufacture practice)
4 ISO certification
5 Periodic verification of batch certificate


(Batch certificate presents an analysis of qualitative and quantitative characteristic of a product, it
is provided by manufacturers)


6 Good distribution and trading practice (GDTP)
7 Drug national laboratory
8 Other (specify): __________________________
9 I do not apply any
10 I do not know


Q4. Do any of your products face any restriction or regulation (including taxes, other than customs
duties) that imposes additional burden to importation? This restriction or regulation can be either
implemented by the country where you import from, or by [home country name]. (For example
certification requirements)


1 Yes 2 No


Q5. Do you experience a lack of efficient procedures or facilities related to importation (e.g. testing
laboratories) in [home country name], partner country or transit country, which makes it difficult
for you to import any of your products, or to make your products ‘ready for import’? (For example
lack of testing facilities, cumbersome customs procedures)


1 Yes 2 No

If the answer is ‘No’ for both Q4 and Q5, move to section 3.

If the answer is ‘Yes’ for either Q4 or Q5 or both, continue with question 6:


Q6. We would like to better understand the obstacles to trade you experience when importing anti-
malaria products. Would you be able to give us 20 more minutes of your time?


Q7. Which date, time and location would be convenient for you for another interview?


Q8. Should we contact you at the same phone number?












NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 19


SECTION 2: NTM FACED ON MAIN PRODUCTS AND PARTNER COUNTRIES


In the following 10-15 minutes, we would like to learn more about the products and country (or
countries) of origin of your imports where you face burdensome measures/obstacles.

In general, products need to comply with a number of rules and regulations. Some of these,
however, impose an additional burden, which might involve a delay of shipment, additional costs
and suchlike. Burdensome regulations and procedures may concern the entire process: from
production to the final consumer. Some examples include: production process and inputs;
packaging and transportation; formalities related to border crossing and customs (for example
charges, taxes); licenses and quotas, prohibitions; regulations imposing a certain price on your
product; anti-dumping duties; advance payment and exchange rates requirements; behind the
border restrictions (e.g. requirements to use a certain retailer). They also include inspections,
testing and other assessments showing that a product satisfies the requirements as well as
certificates of origin to show that the product was de facto produced in the country of origin that is
declared.

Could you please tell us, on what product do you face burdensome regulations/procedures?


Case Number: 1


Q1. Product code: (HS 6-digit level or national tariff line level):
                                                                       
Q2. Product description:                                                                                                                                
Q3. Product type: Generic Patent/Brand
Q4. Partner country:                                                                                                                                

Q5. Which mode of transport do you use when importing this product? Is it train, truck, boat?
Only one answer (ask for the most common transport used)

1 Truck
2 Train
3 Boat
4 Other (please specify):                                
5 I do not know


Q6. Please describe the regulation that you experience as a barrier and which is very burdensome
or very difficult to comply with (it can be a rule, requirement, regulation etc). Please provide as
much details as you can.
                                                                                                                                                                                 
                                                                                                                                                                                 
Q7. Is it [home country name] or partner country which applies this regulation?
Select only one box:
1 The measure is applied by [home country name]
2 The measure is applied by the partner country

Q8. Instructions: After the interview you should identify the correct measure code using the booklet
‘NTM Survey Classification’ and write it here:                                        


Q9. Do you know when this measure was introduced? If yes, please provide the year
1 Yes                                             2. No




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


20 MAR-11-203.E


Q10. The measure you have just described can be burdensome because of the nature of the
measure itself (e.g. ‘prohibition of import’) or because of a related burdensome process or
procedure. For example, the measure is a certificate requirement, and the related obstacle is a long
waiting period to obtain this certificate. Or the challenge is not experienced in relation to a specific
regulation but only to a procedure/process (e.g. ‘my country customs does not accept the HS Code
under which I would like to import my product’). Other examples include administrative burdens,
such as a lack of information or efficient procedures; inconsistent behaviour of officials; high
payments; lack of legal enforcement or recognition. Obstacles can be also related to the business
environment, e.g. to infrastructure and facilities, or security. These obstacles can happen in your
home country, partner country or transit country.


Do you experience such obstacles in relation to the measure you just described?


1 Yes 2 No


If the answer is ‘Yes’ ask the remaining questions below, if the answer is ‘No’ start a new case.


Q11. Please specify which procedural obstacle you experience with the described measure. You
can mention different problems. If appropriate, ask for the number of days of delay, number and names
of required documents, amount of additional fee etc.


Obstacle 1
Description:                        
                                                   
                                                   
                                                   
                                                   

Q12. Nr of days, documents,
amount of fee:                          
                                                   

Q13. Name of involved
agency/institution:
                                                   

Q14. The problem occurs in
(select one box)


[home country name]
Partner country
Transit country, namely


                                               


Obstacle 2
Description:
                                                   
                                                   
                                                   
                                                   

Q12. Nr of days, documents,
amount of fee:                          
                                                   

Q13. Name of involved
agency/institution:
                                                   

Q14. The problem occurs in
(select one box)


[home country name]
Partner country
Transit country, namely


             


Obstacle 3
Description:                          
                                                   
                                                   
                                                   
                                                   

Q12. Nr of days, documents,
amount of fee:                          
                                                   

Q13. Name of involved
agency/institution:
                                                   

Q14. The problem occurs in
(select one box)


[home country name]
Partner country
Transit country, namely


                             




Q15. After the interview, identify the corresponding code for each obstacle:


Code:                       Code: Code:                      


Q16. Please specify any further details related to this case.
                                                                                                                                                                               
                                                                                                                                                                               




NON-TARIFF MEASURES AND THE FIGHT AGAINST MALARIA


MAR-11-203.E 21


Q17. On how many weeks do you estimate that these measures and/or obstacles delay the
accessibility of anti-malarial commodities to your country’s population? (If not relevant leave
empty)
1 1 – 3 weeks
2 4 – 6 weeks
3 More than 6 weeks


Q18. Are these measures and/or obstacles affecting your price of this product?
1 Yes 2 No


Q19. Are there any other factors affecting your price of this product? What are these and where
does it originate?


Select the country where the problem occurs and indicate the other factors, e.g. currency exchange rate,
transport price increase, contract not respected by partner, etc.


[home country name]:              
Partner country              
Transit country              
No (use this case for: I do not know, there is no other factor)


Q20. Do you face burdensome regulations/procedures in another product or vis-à-vis another
country?
1 Yes 2 No


If the answer is ‘Yes’, repeat Q1-19 of Section 2; do this for each case. If the answer is ‘no’, move to
Section 3.


SECTION 3: BUSINESS OPERATIONS


The following questions are about your company. It will not take more than 5 minutes to answer
these questions. Please provide only one answer for each question. All questions refer to the
current situation (this current year).


Q1. How many years has your company been in operation? Less than 1 year, less than 5 years, or
more than 5 years?
1 Less than 1 year 3 More than 5 years
2 Between 1 and 5 years 4 I do not know


Q2. What is the extent of foreign ownership of your company? That is do foreign partner(s) have
ownership of your company, and if so, is it less or more than 50% ownership?
1 No foreign ownership
2 Foreign partner(s) have less than or equal to 50% ownership
3 Foreign partner(s) have more than 50% ownership
4 I do not know


Q3. Does your import passes through transit countries and their customs?
1 Yes
2 No, because our company imports from neighbouring countries only
3 No, because our company uses airfreight
4 Other (please specify):                                                                
5 I do not know


Thank the interviewed and end the interview.




Street address: ITC,
54-56, rue de Montbrillant,
1202 Geneva, Switzerland


Postal address: ITC,
Palais des Nations,
1211 Geneva 10, Switzerland


Telephone: +41-22 730 0111
Fax: +41-22 733 4439


E-mail: itcreg@intracen.org
Internet: www.intracen.org


Street address: AEDARTS
1825 Connecticut Ave., NW
Washington D.C. 20009
United States


Telephone: +1 202 884 8000
Fax: +1 202 884 8400
E-mail: web@aed.org
Internet: www.aed.org; www.m-tap.org


TECHNICAL
PAPER


NON-TARIFF MEASURES AND
THE FIGHT AGAINST MALARIA


OBSTACLES TO TRADE IN ANTI-
MALARIAL COMMODITIES




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