A topic that is very rarely written about or given the attention it deserves is ‘prohibited goods and restricted goods’.

All countries have a ‘prohibited goods and restricted goods list’ of some description, which is either published as a single document or across customs authorities’ administrations.

The two terms – ‘prohibited’ and ‘restricted’ – are different and cannot be used interchangeably. By way of comparison, the World Trade Organisation (WTO) classifies subsidies as red (prohibited) and amber (actionable) – two colours of a traffic light. In case you were wondering, the green is non-actionable. As a consequence, countries may impose countervailing (anti-subsidy) measures on red and amber subsidies.

‘Prohibited goods’ are goods whose importation or exportation is forbidden by law or completely banned by the relevant authority. Such prohibition may be imposed for reasons including a possible health threat, environmental danger, protection of endangered species of flora and fauna under the Convention on International Trade in Endangered Species, national security concerns, controls on dangerous chemicals under the Authorisation and Restriction of Chemicals, restrictions relating to hazardous waste under the Basel Convention, and the prevention of counterfeit or pirated goods.

The reasons for imposing prohibitions or restrictions are broadly categorised as agricultural, economic, health, political, security, and social protection. In essence, prohibited goods are under no circumstances allowed to enter or exit a country.

‘Restricted goods’, also known as controlled goods, are goods whose importation or exportation is limited or restrained and is only possible if specific conditions are met or complied with. Control of these goods could, in its interpretation and administration, be regarded as a non-tariff barrier, which implies that the restriction deviates from its original intent and becomes a protectionist measure.

‘Restricted goods’ are allowed to enter or exit a country only in certain circumstances or under certain conditions – for example, on presentation of a permit, certificate or letter of authority from the relevant government department, institution or body. A customs authority normally administers certain prohibitions or restrictions on behalf of several government departments, institutions, or bodies.

In essence, restricted goods tend to require permits, certificates or authorisations before a customs declaration can be processed, as they are regulated under national legislation.

‘Prohibitions and restrictions’ are not limited to goods carried by travellers – they are applicable to all modes of transport (road, rail, air, sea, post or other). This means that goods subject to any prohibitions or restrictions will be subject to those prohibitions or restrictions, no matter the form of packaging in which they are imported or exported.

‘Prohibitions and restrictions’ from different government departments, institutions or bodies are normally incorporated in a ‘consolidated list of prohibited and restricted imports and exports’. The list tends to be categorised according to the tariff structure of the Harmonised Commodity Coding and Description System, commonly known as the HS Tariff, or Tariff Book.

Concerning the imposition of a quantitative restriction, or QR, the severity of its implementation would depend on the form that it takes.

The WTO has created a ‘Quantitative Restrictions Database’, which provides a platform for searching and retrieving information on trade prohibitions and other restrictions notified by its members.

Perhaps what best illustrates the challenges experienced by customs authorities is the issue of ‘grey goods’ and ‘counterfeit goods’. ‘Grey goods’, also known as ‘parallel imports’, are genuine or non-counterfeit goods of a trademark owner. It means that the trademark owner or their authorised agent in a certain country did not import the goods. As a consequence, technical and repair support would not be provided for the goods.

‘Counterfeit goods’ are those imitating recognised brands, also known as fakes or pirated goods. The goods are generally not only of poor quality, but also could potentially expose users to harm and injury, particularly in the instance of electronic goods.

In addition to restricted goods and prohibited goods, government authorities distinguish between ‘controlled goods’ and ‘non-controlled goods’. The latter distinction normally refers to people travelling with commercial goods which are accompanying them, in their baggage or luggage, or on their person.

A parting thought – in essence, the word ‘restricted’ tends to indicate a country-specific or national competence, while ‘prohibited’ has an international connotation.

PULL-OUT QUOTE

Restricted goods are allowed to enter or exit a country only in certain circumstances or under certain conditions.