Tell us what you need to have done now! Explain why it might make sense to vary the attributes of a product from country to country. Identify why and how advertising and promotional strategies might vary among countries.
A number of factors may influence the control methods. The instruments of control and the Intensity of application of these Instruments vary from country to country, depending on what happens to be the principal reason for their Institution.
For reasons of self interest, import licensing is generally more pervasive than export licensing. To a considerable extent, tariffs and procedures and documentation on imports and exports also do play a controlling role. This brief note concentrates on export licensing in Malawi, the coverage of the licensing and the reasons for its existence.
Export licensing in Malawi In this country the main legal instrument for the licensing of both export and import trade is the Control of Goods Act Chapter The administration of the Act falls primarily under the jurisdiction of the Ministry of Trade and Industry.
Furthermore, In the case of tobacco exports, the control is relegated principally to the Tobacco Control Commission. Similarly, the administrative and day-to-day regulation of exports of bulk tea and coffee is largely done by the Trade Associations of those product groups - the Tea Association of Malawi and the Coffee Association of Malawi.
Coverage of export licensing The products covered in export licensing are fewer than those which are subject to import licensing. Of the products which are listed as licensable under the Control of Goods Act, the commonest are the traditional agricultural export commodities, some of which are amongst the country's staple foodstuffs.
They include items like maize, rice and beans. Since the institution of the Control of Goods Act, the list of licensable Items has been reviewed only very occasionally.
The latest review was made in when items like scrap metals and cement were removed from the list of licensable exports.
The list of exports subject to licensing under the above quoted Act and the regulations made under it, is reproduced in the Memorandum for the information of Importers and Exporters.
A copy of the latter Memorandum is attached hereto. Reasons for export licensing We are living in an imperfect world. Mostly by acts of governments, perfect competition is not allowed to flourish in the world economy.
Controls on imports and exports in Malawi were imposed for reasons that the world markets could hardly do certain things which the country would like.
But, in a country where aggregate imports have usually been more than aggregate exports, it does not appear obvious that there could be any reason for licensing exports or for controlling export operations.
The following are the reasons for licensing exports and for controlling export operations a Food security For the traditional exports which fall within the group of foodstuffs, the most important reason for licensing Is the consideration to ensure food security The striving for self-sufficiency in food supplies requires not only the promotion and expansion of production but also the maintenance of certain levels of supplies.
With regard to the estimates as to what are adequate quantities of the different varieties of produce required by the domestic market, ADMARC plays the central role of advising Government on this.
It is for this reason that, on considering applications for permits to export the produce, the Ministry consults with that Corporation. The common practice that has evolved is that, prior to the Ministry's consideration of the requests for permits, the requests and application forms are referred to ADMARC for the latter's advice.
Examples of this are, the dhall industry using various types of pulsescooking oil industry using groundnuts, sun-flower and cotton seedsand the Malawi Iron and Steel Corporation MISCOR using scrap metals - although, as pointed out earlier on, the licensing of scrap metal exports was decontrolled.
The controlling and direction of import and export trade is done for political considerations c. Such goods include petroleum fuels and fertilizers. There is, of course, the argument that re-exports could bring in a net inflow of foreign exchange. However, such an advantage on products like petroleum products hardly outweighs the disadvantages of disruption of supply to local users, including productive establishments.
The instrument of export licensing in this connection is really for checking the potential rather than for controlling what is obtained in the current situation.
The mineral products, metals and energy materials which are listed in the Control of Goods Act as licensable include items like uranium, beryllium, lithium and cobalt.
The export items involved here include wild animals, wild animal trophies, and crocodile skins. Operations globally can be evaluated and improved by a global marketing audit.
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