Prior Deposits

Prior Deposits

Prior Deposits and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Prior Deposits: A requirement as a condition for importing that an importer deposit a specified sum of money –in domestic or foreign currency, and usually a percentage of the value of the imported goods –in a commercial bank or central bank for a specified length of time. Prior deposits are usually administered in conjunction with import licensing, with deposits required at the time a license is granted. Since such funds are often held without interest from the time an order is placed until the import transaction has been completed, prior deposits are usually regarded as nontariff barriers to trade.


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