RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/TON/5
12 February 2003
(03-0913)
Working Party on the
Accession of TongaOriginal:  English
ACCESSION OF TONGA
Additional Questions and Replies
The Ministry of Labour, Commerce and Industry of the Kingdom of Tonga has submitted
additional replies to questions raised by Working Party members with the request that they be
circulated to members of the Working Party.  The questions and replies are reproduced hereunder.
_______________
TABLE OF CONTENTS
I. INTRO DUCTION ................................................................................................................. ...1
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
2. Economic Policies............................................................................................................ ..........1
(a) Main directions ............................................................................................................. ............1
(b) Monetary and fi scal policies................................................................................................ .....3
(c) Foreign exchange and payments system .................................................................................3
(d) Foreign and domestic investment policy.................................................................................4
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................6
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................8
(a) Registration requirements fo r engaging in importing...........................................................8
(b) Characteristics of  national tariff .......................................................................................... ...9
(c) Tariff quotas, ta riff exemptions............................................................................................ .12
(d) Other duties and charges: ch arges for services rendered ...................................................13
(f) Licensing procedures........................................................................................................ ......16
(h) Customs valuation........................................................................................................... ........20
(k) Application of internal taxes on imports ..............................................................................23
(l) Rules of  origin ............................................................................................................. ............24
(m,n,o) Anti-dumping , Countervailing and safeguard regimes ......................................................24
3. Internal Policy Affecting Foreign Trade in Goods ..............................................................25
(b) Technical regulations and standards, including measures taken at the border
with respect to imports ........................................................................................................ ...25WT/ACC/TON/5
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(c) Sanitary and phytosanitary measures, including measures taken with respect to
imports ........................................................................................................................ .............26
(d). Trade-related inve stment measures ......................................................................................28
(e) State-tradi ng practices ..................................................................................................... ......28
(l) Government procurement practices .....................................................................................294. Policies Affecting Foreign Trad e in Agricultural Products ................................................29
V. TRADE-RELATED INTELLECT UAL PROPERTY  REGIME.......................................30
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................31
1. General...................................................................................................................... ...............31
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................32
ANNEX A ........................................................................................................................ .....................33
ANNEX B........................................................................................................................ ......................36WT/ACC/TON/5
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I. INTRODUCTION
Question 1
Overall, we would be interested if Tonga has requested technical assistance in any of the
technical areas and whether positive responses have been received or are being considered.
Answer:
An overview of the legislation Tonga has implemented/will implement to give effect to the WTO
Regulations is detailed in the Table included in Annex D of this document.
Technical assistance will be required in a number of areas.  Areas specifically mentioned in this
document are customs valuation (response to Question 51), SPS notification (response to Question
70) and TRIP’s regulations (response to Question 82).  Another area in which assistance is required is
in establishing a Standards Certification System.
Tonga would welcome and consider any offers of assistance given by Member countries on these or
other technical issues.
Question 2
Concerning the import and export licensing notification (see questions 69-77 and questions 93-
94) and the TRIPS checklist/action plan, can To nga advise whether progress has been made in
these areas and what timeframes are envisaged for submission?
Answer:
Please see the answers to the questions on these topics in the relevant sections below.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directionsQuestion 3
Tonga's answer to question 4(a) refers to privatiz ation only (which is dealt with in the answer to
question 126).  We would be interested if Tonga could explain other broader aspects of its
reform plans in the public sector, including to address public sector efficiency and
accountability, and public sector coordination (including the development of mechanisms forproducing a whole-of-government approach).
Answer:
The Government of Tonga’s overall reform programme comprises four main areas:
- Fiscal reform,
- Public service reform,
- Financial sector reform,
- Private sector reform.
Public service reform is seen as a pre-condition for sustainable economic development. At present, all
significant functions relating to the management of the Civil Service are highly centralised and theWT/ACC/TON/5
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essence of the reform is the development of a more decentralised approach. The emphasis is on
improved service delivery to both the public and the private sectors and on the establishment of the
institutional framework for a performance-oriented civil service.
Question 4
Concerning the price controls applied to the pr oducts listed in the response to question 7 of
document WT/ACC/TON/4, are these controls applied upon importation, i.e., do they effect the
valuation of these goods for customs purposes?  A re the controls applied at the level of retail or
wholesale distribution?  Does the control price include tariffs, port and service charges,
wharfage fees, sales tax or any other taxes or charges, or are these added to the control price
prior to distribution?
We appreciate the reasons that Tonga seeks to maintain oversight of prices of basic needs.  We
need, however, more information from Tonga on how its price controls operate in practice and
interact with its customs procedures and charge s.  We seek a commitment from Tonga, similar
to that included in other accession protocols that  its price controls will observe the provisions of
Article III:9.
Answer:
Except for bread and petroleum products, Tonga’s price control mechanisms are enforced as
maximum mark-up percentages – a percentage over landed cost for wholesale markets and a
percentage over wholesale cost for retail markets.  Therefore these controls do not effect the valuation
of regulated goods for customs purposes.  Sale prices are set for petroleum products and standard
sized bread.  The Price Control Mark-Up Schedule is included as Annex A of this document.
Tonga produces a very narrow range of goods and imports nearly all its requirements.  None of the
products subject to price control, other than bread, are produced locally.  Given the very small size of
Tonga’s economy, the price controls are enforced to prevent wholesale and retail suppliers taking
advantage of local monopoly situations and do not prejudice the interests of WTO Members
supplying imported products.
Tonga is willing to accept the following Protocol commitment: “Tonga would apply its price control
measures in a WTO-consistent fashion, and take into account the interests of exporting WTO
Members as provided for in Article III:9 of the GATT 1994.  Tonga would also publish the list of any
goods and services subject to price controls in its Official Gazette”
Question 5
Does Tonga undertake to administer maximum prices in conformity with Art. III.9 GATT?
Answer:
Tonga is ready to accept the following Protocol co mmitment in the Working Party report: “Tonga would
apply price control measures in a WTO-consistent fashion, and take into account the interests of
exporting WTO Members as provided for in Articl e III:9 of the GATT 1994.  Tonga would also publish
the list of any goods and services subject to price controls in its Official Gazette.”
Question 6
We note in the answer to question 7 that Tonga has no plans to reduce the number of products
subject to price controls.  Given that these can impact on trade, we would welcome advice from
Tonga as to how Tonga proposes to give effect to paragraph 9 of GATT Article III that requiresWT/ACC/TON/5
Page 3
WTO Members to take account of the interests of  exporting countries in applying such price
controls.
Answer:
With the exception of bread, Tonga does not produce any of the products subject to price controls and
does not believe that the price controls have an impact on trade.  It proposes to give effect to ArticleIII:9 as laid down in that provision, by consulting exporting WTO members on request and taking
their interests into account.
Question 7
Can Tonga please clarify how the maximum price control is determined?  Why is this price
controlled only at the point of sale to the cu stomers and not by authorized customs officials?
How will Tonga ensure that these maximum price co ntrols comply with Article III (9) of the
GATT 1994 and the interests of exporters are not prejudiced by these price controls?
Answer:
Price control is administered by the “Competent Authority” within the Ministry of Labour, Commerce
and Industries.   The primary task of the Competent Authority is to protect the interests of consumers,
hence its’ administration of the price controls, rather than Customs.  The Price Control Mark-Up
Schedule is included as Annex A of this document.
Tonga will give effect to Article III:9 as laid down in that provision by consulting exporting WTO
members on request and taking their interests into account.
(b) Monetary and fiscal policies
 Question 8
Tonga has indicated that it has a tax reform program under consideration (see questions 28, 42,
44 and 48).  Given the importance of trade and other taxes from a number of viewpoints,
including WTO consistency and market access, we would be very appreciative if Tonga could
outline in detail its plans in this area , including timetables for planned reforms.
Answer:
Tax reform plans aim to ensure that the tax burden is spread as widely and as fairly as possible, whilst
maintaining simplicity. Taxation should be at a level that is sustainable within the constraints of
building an effective economy. One of the aims of the reform is to shift the emphasis of taxation from
trade taxes to internal taxes. Coupled to this would be a reworking of individual and corporate income
tax to provide a fairer system. The proposed changes will need to be phased in to ensure that there is
not a loss of revenue. In particular, changes in trade taxes will need to be introduced cautiously. A
concerted effort will be necessary to increase the effectiveness of the revenue administration.
Technical assistance is being received for this purpose. The details of the reform and its timing willdepend in part on the terms of Tongan accession to the WTO.
(c) Foreign exchange and payments system
Question 9
The response to question 12 of document WT/ACC/TON/4 indicates that foreign exchange
cover is not permitted for imports.  We would appreciate clarification of this statement andWT/ACC/TON/5
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information on any unique restrictions or requirements applied to foreign exchange acquisition
for imports.
Answer:
The Government of Tonga is a subscriber to the International Monetary Fund (IMF) Article VIII,
which commits member countries to the free mobility of currencies.  The acquisition of foreignexchange for imports is not restricted.
 (d) Foreign and domestic investment policy
Question 10
The Industrial Development Incentive Act, according to answer to question 21
(WT/ACC/TON/4), is currently under review fo r more standardization and transparency.
Please update the Working Party on the status of the revision.
Answer:
The Industrial Development Incentive Act is being replaced by new legislation and will be repealed
when the new legislation is implemented.  This ne w legislation, the Foreign Investment Act, has been
passed by Parliament but is yet to be gazetted and implemented.
The Foreign Investment Act provides regulations fo r foreign investors in Tonga who wish to carry on
any activity for the purpose of generating revenue in trade, commerce or industry, including any trade,profession or calling.
The Act details the regulations for foreign investme nt into Tonga, the registration requirements for
foreign investors and the duration of registration certificates;  lists those activities that are classified as
reserved or restricted and the relevant conditions fo r foreign investment into such activities;  details
the terms for transfer of registration, cancellation of registration and the means for appeal ifregistration is refused;  and sets out transitional arrangements for foreign investors already operating
in Tonga at the time of the legislation being implemented.
A copy of the new legislation is being sent to the WTO Secretariat for the information of delegations.
Question 11
The response to question 1 of document WT/ACC/TON/4 does not address the basic question of
whether Tonga’s investment legislation permits the denial of investment based on whether
import substitution or the use of local content is provided for.  If these provisions exist in law,
they can be used.  Will Tonga revise the Industry Development Incentive Act to eliminate these
provisions and ensure consistency with the WTO Agreement on TRIMs?
Answer:
Please refer to answers both to the previous question and to Questions 73 and 74 below in the section
on TRIMs.
Question 12
The response to question 22 of document WT/ACC/TON/4 indicates that "in recent years the
(Standing Advisory) Committee has not used these criteria to determine whether or not a
licence is to be granted because it welcomes all foreign investment in the sectors covered by theWT/ACC/TON/5
Page 5
Act.  The legislation is currently being reviewed in order to bring it in to line with this current
practice."  What is the status of this review?  Has the Law been amended?
Answer:
Please refer to the answer to Question 10.
Question 13
We must disagree with the response to question 24 in document WT/ACC/TON/4.  To the extent
that the benefits provided by the Industrial Development Incentives Act are, in law or in fact,
contingent upon export performance or import substitution, they are prohibited subsides as
provided for in the WTO Agreement on Subsidies and Countervailing Measures.  How does the
government of Tonga intend to amend the IDI Act to bring it into conformity with WTO
Agreements?
Answer:
The benefits referred to in Question 24 of WT/ACC/TON/4 have never been made contingent upon
export performance or import substitution.  It is the Government of Tonga’s understanding that these
benefits would therefore not be contrary to the WTO.  However, this legislation will be replaced by
new legislation, referred to in the answer to Question 10, and the provisions of this new legislation
will apply from the date of Tonga’s accession to the WTO.
Question 14
Questions 21, 22 and 23 (pages 13-15 of document WT/ACC/TON/4) and questions 99-100
(pages 41-42) refer to the Industrial Development Incentives Act.  It is still not clear how the
provisions of the Act relate to the disciplines under the Agreement on Subsidies and
Countervailing Measures and the TRIMs Agreement.
Answer:
Please refer to answers to Questions 10 and 13 above.
Question 15
Questions 25 (page 16 of document WT/ACC/TON/4), 125, 126 and 127 (page 49) refer to the
proposed privatization of government services.  We would appreciate an update on progress inthis area and Tonga's future plans for privatization.
Answer:
As of 30 June 2002, the Government’s shareholding in other organizations was as follows:
ORGANIZATION % GOT OWNERSHIPNO. OF SHARES
1999/2000
Air Pacific Limited <5 70,400
Bank of Tonga 4 120,000
Export Produce Treatment Services Ltd. 20 40,000
Frisco 99 99
Hawaiian Air <5 208
Home Gas 99 99
International Dateline Hotel 99 5,999,999WT/ACC/TON/5
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Leiola Duty Free 60 600,000
Pacific Forum Line Limited Approx. 5 1,271,956
Primary Produce Ltd. 99 99
Royal Tongan Airlines 99 12,000,000
Sea Star Fishing Co. Ltd 70 42,000
Shipping Corporation of Polynesia Ltd 100 10,000
Tonga Development Bank 100 1,400,000
Tonga Investment Ltd 99 100
Tonga Telecommunications International Ltd 100 6,712,466
Tonga Timber Limited 99 1,889,999
Tonga Corporation 100 250,000
Since Tonga’s response to the initial questions submitted by WTO Members (found inWT/ACC/TON/4) ownership of Royal Beer Co. Lt d has been transferred to a private owner.
There are still plans to wind up Primary Product Ltd as soon as possible.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Tonga is prepared to accept the following Prot ocol commitments in the Working Party report:
“From the date of its accession, Tonga’s laws would give foreign and domestic importers and exporters
the right to appeal administrative action relating to matters subject to WTO provisions to an independent
body in full conformity with WTO obligations , including Article X:3(b) of the GATT 1994”.
“The provisions of the WTO Agreement, includi ng Tonga’s Protocol, shall be applied uniformly
throughout its customs territory and other territories under Tonga’s control, any special economic zones,and other areas where special regimes for tariffs, taxes and regulations are established”.
Question 16
We understand that the Judiciary comprises at the lower level the Magistrates’ Court and the
Land Court.  Is there a differentiation by subject between these two courts?
Answer:
Yes, there is a differentiation by subject between these two courts.  They play completely separate
roles in exclusive jurisdictions.  The Magistrate Court is as the lowest level of Judiciary hierarchy,
whilst the Land Court is at the same level as the Supreme Court.
The Land Court has the jurisdiction to deal only with all land related cases, including Hereditary
Estates Tax and town Allotments Mortgages. It does not deal with any criminal or civil cases.
The Magistrate Court has the jurisdiction to deal with all criminal and civil cases, up to a certain limit.
This court hears and determines criminal matters for which the punishment provided by law does notexceed a fine of T$1,000 or 3 years imprisonment and also criminal cases including proceedings for
the recovery of fines, penalties and forfeitures which the Magistrate is allowed by law and determine.
The Magistrate Court also has the jurisdiction to hear and decide civil actions whose claim does not
exceed $1,000.WT/ACC/TON/5
Page 7
Question 17
Tonga will need to implement legislation to give effect to the WTO in a number of areas and this
is acknowledged in Tonga's replies.  It would be helpful if Tonga could provide an update on
progress with legislation and its future plans in this area, including timetables for
implementation.
Answer:
Tonga has identified a number of areas in which changes in its legislation will be necessary to give
effect to the WTO. Information on these is contained in the relevant sections of the present document.
An overview of the legislation Tonga has implemented/will implement to give effect to the WTO
Regulations is detailed in the Table included in Annex D of this document.
Bilateral donors have been generous in providing technical assistance to the government of Tonga in
the past and Tonga notes that, in certain cases, action will only be possible if further adequate andtimely technical assistance is received.
Question 18
Does Tonga have a plan of action to address the deficiencies already identified in its legislation
as it relates to WTO provisions?  If not, we su ggest that one be developed.  We look forward to
working with Tonga on this, if necessary.
Answer:
Please see the answer to Question 17.
Tonga will be pleased to work with the Accession Working Party on this task.
Question 19
Please describe the ratification procedures that will be necessary once Tonga’s accession
package has been approved by the General Council.
Answer:
Once approved by the General Council, the Accession Package requires the approval of the Privy
Council in Tonga before it enters into force.
Question 20
What will be the status of the WTO Agreement and its annexes in Tonga’s legal hierarchy after
acceptance of the WTO and Membership, e.g., do the provisions of international agreements
take legal precedence over domestic law?
Answer:
Please see the answer to Question 19.WT/ACC/TON/5
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IV. POLICIES AFFECTING TRADE IN GOODS
(a) Registration requirements for engaging in importing
Question 21
Please specify the cost of the license and the time  necessary to obtain it.  Are they the same for
export licenses?
Answer:
A new draft Act, the Business Licences Bill, will repeal the Licences Act Cap. 47 and introduce a
simple, transparent procedure for the issuance of business licences that does not create barriers or
imported or exported products. Under the new Act, a licence must be issued if:
- The application is for a business which does not carry on, and does not propose to carry
on, a prohibited activity;  and
- In the case of an applicant who is an individual, the applicant is 18 years or older;   and
- In the case of a partnership, all the partners are 18 years or older;  and
- In the case of an applicant who is a foreign investor, the applicant holds a valid foreign
investment registration certificate.
Any party holding a business licence will be able to engage in the business of importing or exporting.
Regulations to be issued under the new law will provide that fees for the issuance of the licences are
no higher than the approximate cost of services rendered.
The aim of the new legislation is to bring Tonga’s ru les in this area into line with best international
practice and the rules of the WTO, i.e. Articles VIII:1(a), XI:1 and III:2 and 4.
A copy of this Bill has been supplied to the WTO Secretariat for the information of members of the
Working Party. A copy of the Regulations will be supplied as soon as possible.
Tonga is prepared to enter into the following Pr otocol commitment: “From the date of accession, Tonga
would ensure that its laws and regulations relating to the right to trade in goods and all fees, charges and
taxes levied on such rights would be in full conf ormity with its WTO obligations, including Articles
VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and th at it would implement such laws and regulations
in full conformity with these obligations”.
Question 22
In document WT/ACC/TON/4, Tonga states that a business activity license is required before
importer can apply for an import license.  Please detail the steps for obtaining a business
activity license, including any investment requirements, residency requirements, or fees.
Answer
Please see answer to Question 21. The new legislation specifies that foreign investors must hold a
valid foreign investment registration certificate, th e details of obtaining which were provided in the
answer to Question 10.WT/ACC/TON/5
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Question 23
Please detail the additional requirements necessary  to obtain a license to import.  What, if any,
additional requirements exist for foreign or do mestic persons or firms to import goods in
Tonga?
Answer:
Please see the answer to Questions 21 and 22. When importing, all businesses must, of course,
conform to the relevant laws and regulations, such as those relating to the payment of import duties,
etc.
(b) Characteristics of national tariff
Question 24
In relation to Tonga's applied tariff not all HS subheadings are included in the Customs and
Excise Act – 22 of 1983 (e.g. sub-headings 0103- 0106, 0205-0207, etc. are omitted).  Can Tonga
please explain why these rates are missing and what rates of duty apply?
Answer:
Tonga’s Custom Tariffs include all HS subheadings.  The relevant details for the examples quoted are
as follows:
Tariff Item Description Duty Rate
0103.0000 Live Swine 0%
0104 Live sheep and goats
0104.1000 - sheep 0%
0104.2000 - goats 0%
0105 Live poultry, that is to say, fowls of the specie, Gallus domesticus ducks, geese,
turkeys and guinea fowls0%
0106 Other live animals 0%
0205 Meat of Horses, asses, mules or hinnies, fresh, chilled or frozen 15%
0206 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or
hinnies, fresh, chilled or frozen
0206.1000 - of bovine animals, fresh or chilled 15%
0206.2000 - of bovine animals, frozen 15%
0206.3000 - of swine, fresh or chilled 15%
0206.4000 - Other, fresh or chilled 15%
0206.9000 - Other, frozen 15%
0207 Meat and edible offal, of the poultry of heading No. 01.05, fresh, chilled or
frozen.
- Poultry not cut in pieces fresh or chilled:
0207.1010 --- Fowls of the species, Gallus domesticus 20%
0207.1090 --- Other 20%
- Poultry not cut in pieces, frozen:
0207.2100 --- Fowls of species Gallus domesticus 20%
0207.2200 --- Turkeys 20%
0207.2300 --- Ducks, geese and guinea fowls 20%
- poultry cuts and offal (including livers), fresh or chilled
0207.3011 --- Fatty livers of geese or ducks 20%
--- Other:
0207.3910 --- of fowls of the species Gallus domesticus 20%
0207.3990 --- other 20%WT/ACC/TON/5
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Tariff Item Description Duty Rate
- Poultry cuts and offal other than livers, frozen:
0207.4100 --- of fowls of the species Gallus domesticus 20%
0207.4200 --- of turkeys 20%
0207.4300 --- of ducks, geese or guinea fowls 20%
- Poultry livers frozen:
0207.5010 --- of fowls of the species Gallus domesticus 20%
0207.5090 --- other 20%
Source:  Schedule 1: Customs and Excise Duty Act, Section 67
Question 25
In document WT/ACC/TON/4, Tonga states that excise duties on imported alcoholic beverages
are for revenue, health reasons and to protect the domestic industry.  Article III states that
excise and other taxes applied to imports should not discriminate vis-à-vis similar domestic
products, i.e., they cannot be used for protection.   What is Tonga’s timetable for eliminating the
level of discrimination towards imports from its excise tax system?
Answer:
Tonga is prepared to modify its current excise tax regime to bring it into conformity with WTO rules
and in particular to ensure that these taxes apply equally to both domestic and imported alcohol
beverages. It is also ready to negotiate on the rates of customs duties applied to imported products.
The timetable for the changes will be determined as part of the accession process.
Question 26
The response to question 47 in document WT/ACC/TON/4 indicates that the reason import
tariffs for tobacco and alcoholic beverages are so high is for revenue and health reasons.  The
high (200% or T$2.40 per litre, whichever is greater) tariff on beer, however, appears to be in
place to protect domestic production, not for he alth reasons.  As the government maintains a 40
percent ownership share in the local producti on facility, we would like to know how health
enters into Tonga’s policy vis-à-vis this produc t.  We believe an evenly applied excise tax on
both domestic and imported beer in conjunction with a more reasonable tariff would better
served Tonga’s stated policy objectives, i.e., reve nue and health protection, than this prohibitive
import tariff, while at the same time providing a level of protection.
Answer:
The government does not now have any form of owners hip in the local production facility as stated in
the answer to Question 15 above.
Rates have been modified since WT/ACC/TON/4 and are now as follows:
Tariff Item Description Duty Rate
22.03 Beer made from malt
2203.0010 ---not exceeding 2.5% volume of alcohol 110% or T$1.10/L, whichever is greater.
Excise 83s/L or 55%, whichever is greater.
2203.0090 ---other 220% or T$2.20/L, whichever is greater
22.04 Wine of fresh grapes, including fortified
wines;  grape must be other than that of
heading No. 22.09.
2204.1000 ---Sparkling wine 99% or T$3.52/L, whichever is greater
2204.2000 ---other wine;  grape must with fermentation
prevented or arrested by the addition of82.50% or T$2.64/L, whichever is greaterWT/ACC/TON/5
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Tariff Item Description Duty Rate
alcohol
2204.3000 ---other grape must 82.50% or T$2.64/L, whichever is greater
2205.0000 Vermouth and other wine of fresh grapes
flavoured with plants or aromatic substances82.50% or T$2.64/L, whichever is greater
2206.0000 Other fermented beverages (for example cider,
perry, mead)82.50% or T$1.43/L, whichever is greater
22.08 Undenatured ethyl alcohol of an alcoholic
strength by volume of less than 80% volume;spirits, liqueurs and other spirituousbeverages;  compound alcoholic preparationsof a kind used for the manufacture ofbeverages.
2208.1000 ---Compound alcoholic preparations of a kind
used for the manufacture of beverages330% or T$38.50/L, whichever is greater
2208.2000 ---Spirits obtained by distilling grape wine or
grape marc330% or T$38.50/L, whichever is greater
2208.3010 Whiskies ---less than 57% by volume of
alcohol220% or T$22.00/L, whichever is greater
2208.3020 Whiskies ---57% by volume of alcohol or
more330% or T$38.50/L, whichever is greater
2208.4010 Rum and tafia ---less than 57% by volume of
alcohol220% or T$22.00/L, whichever is greater
2208.4020 Rum and tafia ---57% by volume of alcohol or
more330% or T$38.50/L, whichever is greater
2208.5010 Gin and geneva ---less than 57% by volume of
alcohol220% or T$22.00/L, whichever is greater
2208.5020 Gin and geneva ---57% by volume of alcohol
or more330% or T$38.50/L, whichever is greater
2208.9010 Other ---less than 57% by volume of alcohol 220% or T$22.00/L, whichever is greater
2208.9020 Other ---57% by volume of alcohol or more
but less than 80%330% or T$38.50/L, whichever is greater
2208.9030 Other ---80% by volume of alcohol or more 330% or T$38.50/L, whichever is greater
24 Tobacco and manufactured tobacco substitutes
2401.0000 Unmanufactured tobacco;  tobacco refuse 225% or T$37.50/kg, whichever is greater
24.02 Cigars, cheroots, cigarillos and cigarettes, of
tobacco or tobacco substitutes
2402.1000 ---cigars, cheroots and cigarillos, containing
tobacco255% or T$75.00/kg, whichever is greater
2402.2000 ---cigarettes containing tobacco 525% or T$96.00/kg, whichever is greater;  or
T$96.00/1000 cigarettes
2402.9000 ---other 525% or T$96.00/kg, whichever is greater;  or
T$96.00/1000 cigarettes
2403.0000 Other manufactured tobacco and
manufactured tobacco substitutes;
"homogenized/reconstituted" tobacco;
tobacco extracts and essences187% or T$37.50/kg, whichever is greater
Source:  Schedule 1: Customs and Excise Duty Act, Section 67
Excise Tax is charged equally on domestically produced and imported beer as per the above table.
Tonga is prepared to enter into the following  Protocol commitment “Upon accession to the WTO,
Tonga would apply its internal taxes on tobacco, alcoholic beverages and beer in conformity with
GATT obligations, in particularly Article III, 1 & 2 and negotiate on the level of its import duties onthese products”.WT/ACC/TON/5
Page 12
(c) Tariff quotas, tariff exemptions
Tonga is prepared to enter into the following Protocol commitment “Upon Tonga’s accession to the
WTO, any tariff quotas and tariff exemptions woul d only be implemented in conformity with the
relevant WTO provisions including Article I of the GATT 1994 and the TRIMs Agreement”.
Question 27
We note that ground equipment and technical supplies required for use at airports in
connection with air services are exempt from customs duties.  Are they also exempt from the
port and service tax and other revenue charges?  In light of these exemptions, would Tonga
consider binding its customs duties and other revenue charges on civil aircraft and parts at
zero?
Answer:
Tonga confirms that ground equipment and technical supplies required for use at airports in
connection with air services are exempt from customs duties.  These goods are not exempted from the
Port and Services Tax.
Tonga has stated that Port and Services Tax is an ‘Other Duty or Charge’ (ODC) and has already
offered to bind its ODC’s at zero (0%).  Tonga is also willing to negotiate on its customs duties during
the accession process.
Question 28
Are the products listed in reply to question 51 (document WT/ACC/TON/4) also exempted from
internal taxation?
Answer:
Internal taxes are dealt with in Section (k) below.
Not all goods listed in the answer to Question 51 ar e entitled to exemption from internal taxation. The
following goods are exempt:
Sales of goods and services to his Majesty the King;
- Sales of goods and services to or by government;
Sales of goods from one vendor or business to another vendor or business for the purpose of
further retailing or manufacturing and processing for sales of customers;
- Sales of local agriculture, livestock and fisheries products in government market by
individual sellers around the markets a nd at farm gates throughout the Kingdom;
- Sales of goods by street vendors such as selling of handicrafts, woodcarvings,
clothing and peanuts;
- Sales of tickets to patients approved by the Minister of health for international travel
on production of a certificate of exemption from the Minister;
- Sales of materials to be used for building of residential home on production of a
certificate of exemption from Minister;
- Sales of goods exported to foreign markets.WT/ACC/TON/5
Page 13
(d) Other duties and charges: charges for services rendered
Tonga reconfirms that it is prepared to bind "other duties and charges" as defined in Article II:1(b) of
GATT 1994 at zero in its Initial Tariff Offer, on the understanding that the removal of its "other duties
and charges" is taken into account in the tariff negotiations. If its "other duties and charges" are bound
at zero, it would not appear appropriate to draft a Protocol commitment providing that the application
of these duties and charges would be in accordance with WTO provisions.
Tonga is prepared to accept the following Protocol commitment on fees and charges for services
rendered: “All fees and charges imposed by Tonga on or in connection with importation or
exportation would be operated in conformity with the relevant provisions of the WTO Agreement, in
particular Articles VIII and X of GATT 1994.  Fr om the date of accession, Tonga would not apply,
introduce or reintroduce any fees and charges for services rendered that were applied to imports on an
ad valorem basis.  Information regarding the application and level of such fees and charges, revenuescollected and their use, would be provided to WTO Members on request.”
Question 29
In document WT/ACC/TON/4, Tonga states that the port and service tax is for revenue
purposes.  Does this tax have any "service" co mponent, i.e., is it related to any particular
identifiable service when applied to imports?  We note that all fees relating to importation
should only cover the cost of services rendered and should not be applied for revenue purposes.
Answer:
The answer to Question 55 in WT/ACC/TON/4 states that, in WTO terms, the Ports and Service Tax is
an “other duty or charge” and that the relevant  provision is Article II of the GATT 1994. Tonga has
already offered to bind its ODC at zero (0%) in its Initial Tariff Offer. This means that the Ports and
Service Tax would be removed in accordance with a timetable to be specified in that Schedule. Tonga
would expect that this be taken into account durin g the negotiation on the level of tariff bindings.
Question 30
Tonga has provided information in documents WT/ACC/TON/3 and WT/ACC/TON/4 and in
the laws submitted to the WP on its wharfage due s, charges paid on certain products that arrive
in Tonga on a government wharf.  The dues, however, are not standard, but vary by product
with certain products being assessed a charge for each product imported, e.g., motor vehicles,
buses and bicycles.  We had understood that the wharfage dues were services for use of the
facilities, not additional charges on imported products.  We would appreciate a comprehensive
explanation to the Working Party on the nature, scope, and method of application of wharfage
dues that addresses this issue and transparentl y lays out the costs involved in this regime.
Answer:
Sections 5 and 16 of the Wharves Act 1992 (Cap. 138) and Amendments 1997, 1998 provide for
wharfage dues. Having re-examined the subject of wharfage dues levied under this Act, Tonga
recognises that these are “Other Duties and Charges” on imports and is prepared to take legislative
action to remove these as from the date that the zero binding on ODCs comes into effect.
Question 31
There also appears to be a discrepancy between the information provided on wharfage dues in
document WT/ACC/TON/4 and in the law itself.  WT/ACC/TON/4 clearly states that the
wharfage fee is paid to the port authority and not to the government.  The Wharfage Law,WT/ACC/TON/5
Page 14
however, states that all fees including wharf age and berthage are paid to the government as
revenue, not as service fees.  We appreciate the importance of port fees in conducting
commerce, but the current system does not, a pparently, provide for a transparent distinction
between fees and charges for service and those ap plied for general revenues.  We believe that a
more explicit separation of these charges would facilitate trade and be more consistent with the
provisions of Articles II, III, VIII, and X of the GATT.
More broadly, the number of fees that Tonga re quires of imports can be alarming.  Certain
products, motor vehicle in particular, are requi red to pay (a) a custom duty, (b) a 20 percent
port and service tax, (c) an import licensing fee, (d) wharfage dues and (e) a berthage or tonnage
tax for using a vessel larger than 2 tons.  It wo uld appear that with the exception of the berthage
or tonnage tax, these fees are not collected for services rendered, but constitute taxes and
charges applied for revenue purposes.  We would appreciate a consolidated, comprehensivetreatment of the issue of fees and charges, perh aps in a table or chart, that can help the WP
understand the total current level of taxation charged on imports for revenue purposes, as
opposed to services rendered.  This will be critical in evaluating Tonga’s market access offer.
We offer our assistance in this endeavour, if Tonga believes it necessary.
Answer:
Please refer to the answer to Question 30 above. As this indicates, Tonga is prepared to simplify the
situation radically by binding other duties and charges at zero. Import licensing is dealt with in
Questions 40 to 45 below.
Question 32
Tonga has three major charges on imports – th e Ports and Services Tax, wharfage dues and
import licensing fees (see questions 55-61 and 69).  These charges do not appear to conform fully
to GATT requirements.  Import licensing fees appear to exceed the cost of the service and
Tonga recognizes a need to amend this (see question 69).  The wharfage dues appear to be a
charge for a service.  The Ports and Services Tax is an ODC under the terms of Article II of the
GATT.  In its tariff offer, Tonga offers to bind ODCs at zero per cent which seems to implythat, as it claims a GATT Article II justification for the tax (see question 55), the Ports and
Services Tax will need to be eliminated.  Can Tonga confirm its intention in this area?
Answer:
Please refer to answers to Questions 29, 30 & 31 above.
Question 33
With reference to the offer to bind "Other Duties and Charges" at zero, this would imply that
the "Port and Services Tax" of 20 per cent will be eliminated.  Can Tonga confirm that this is,in fact, what is planned?  If so, would this be done as of the date of accession?
Answer:
Please refer to answers in Questions 29, 30 & 31 above.
Question 34
We appreciate Tonga's readiness to bind ODCs at zero per cent in its tariff schedule.  Does this
include both the Port and Services Tax and the Wharfage tax?WT/ACC/TON/5
Page 15
Answer:
Yes. Please refer to answers in Questions 29, 30 & 31 above.
Question 35
We are pleased to note that Tonga has recently adopted the harmonized tariff system.  Tonga
has very recently submitted an offer on WTO ta riff bindings.  We consider that it has some
positive features such as universal binding of all tariff lines, and binding of ODCs at zero per
cent.  Is Tonga proposing to eliminate the Ports and Services Tax?
Answer:
Yes. Please refer to answers in Questions 29, 30 & 31 above.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Tonga is prepared to enter into the following Protocol commitment: “Tonga would, from the date of
accession, not introduce, re-introduce or apply quantit ative restrictions on imports, or other non-tariff
measures such as licensing, quotas, pr ohibitions, bans and other restricti ons having equivalent effect that
cannot be justified under the provisions of the WTO Agreement.  The legal authority of the Government
of Tonga to restrict or prohibit importation of g oods into Tonga would be applied from the date of
accession in conformity with the relevant requirements of the WTO, in particular Articles XI, XII, XIII,
XVIII, XIX, XX, and XXI of th e GATT 1994, and the Agreements on Agriculture, the Application of
Sanitary and Phytosanitary Measures, Import Licensi ng Procedures, Safeguards, and Technical Barriers
to Trade”.
Question 36
We appreciate Tonga's readiness to review the licensing requirements for a number of products
(re: question 68 in document WT/ACC/TON/4).  Which law contains the criteria to determinewhether importing a car is possible or not?  Could you briefly explain them?
Answer:
The Customs and Excise Act (Cap 67) Section 35 and Schedule II, Part I, Section 5 under the List of
Restricted Imports provides the list of motor vehicles whose importation into Tonga is restricted.
This restriction can be waived when there has been a licence issued by the Minister of Finance.
In relation to left hand drive vehicles, the restriction can be waived when there has been a licence
issued by the Minister of Finance and the Minister of Police.
Procedures as to how to obtain an import license are shown in Regulations 6 – 9 and the Schedule of
Foreign Exchange Control Regulation.
Question 37
Tonga imposes quantitative restrictions on imports of eggs and biscuits (see questions 62, 64-65,
and 75).  This is contrary to Article XI of the GATT and the Agriculture Agreement and themeasures need to be removed and, if necessary, replaced by tariffs.WT/ACC/TON/5
Page 16
Answer:
Tonga is prepared to remove these restrictions from the date of its accession to the WTO, to replace
them with an appropriate customs duty rate to be negotiated.
Question 38
In document WT/ACC/TON/4, Tonga states that it requires import licenses for the import of
"all books and any written or printed matter, sound and visual recordings subject to copyright
law" and that it restricts "all books and any written or printed matter or sound and visual
recordings which advocate violence, lawlessness or disorder."  Can Tonga explain how the
requirements relating to the importation of copyrighted material are administered.  Are these
restrictions?  Does Tonga intend to restrict the importation of printed and recorded matter that
violates a copyright, patent or trademark?  How does Tonga determine if imported material
advocates violence, lawlessness or disorder?
Answer:
Tonga currently has no requirements relating to the importation of copyrighted materials.  It is
however intended that importation of printed and recorded matter that violates a copyright, patent or
trademark will be restricted – as a signatory to both the Paris and Berne Conventions, Tonga must
abide by the standards set by those conventions.
Section 2 of the Cinematograph Act (Cap. 167) allows for the establishment of the Censor Committee.
Section 3 and 4 of the Censorship Regulations sets out the Powers of the Board of Sensors.
Section 3 of the Censorship Regulations states “no person shall exhibit a cinematograph film in public
or any poster or other advertisement or video tape film…unless he shall previously have obtained a
certificate from Board of Censors of the district where the film is to be shown”.
Section 4 of the Censorship Regulations states “a board of censors shall not issue a certificate unless
the cinematograph film or poster or other advertisement or video tape or film…shall have been
exhibited by 3 members of the Board of Censors and approved by at least 2 of the members…”
Question 39
The response to question 64 in document WT/ACC/TON/4 states that eggs and cabin and ship
biscuits are subject to quantitative restrictions to protect domestic industry.  We suggest that
Tonga develop a WTO-consistent method of addres sing the need to protect these industries, e.g.,
use of tariffs instead of a quantitative restriction to protect their domestic industry.
Answer:
Tonga is prepared to remove these restrictions from the date of its accession to the WTO, to replace
them with an appropriate customs duty rate to be ne gotiated, as stated in the answer to Question 37.
(f) Licensing procedures
Question 40
Tonga's reply to question 75 in document WT/ACC/TON/4 appears contrary to Articles III and
VIII of the GATT 1994 because it appears to require an import license on eggs to "closely
monitor and control imports for the sake of local poultry farms".  Can Tonga clarify how this is
justified under WTO rules?WT/ACC/TON/5
Page 17
Answer:
Please see answers to Questions 37 and 39 above.
Question 41
We welcome the modifications that have been introduced to the import licensing procedures in
order to eliminate possible discriminations.  What are the plans to review the fee structure tobring it in conformity with Art. VIII GATT?
Answer:
Tonga acknowledges that the main purpose of its import licensing procedures, specifically the Import
Licensing Fees, is to raise revenue. The Government is therefore prepared to abolish the procedures
thereby removing these fees as from the date of its accession to WTO.
Question 42
In relation to import and export licensing, Tonga has indicated that it has made some changes
to the import licensing system (see question 70), and that it is prepared to discuss modification
of the associated fees to bring them into conformity with GATT Article VIII (see questions 69
and 74).  However, Tonga has not provided sufficient details in relation to the other question
raised in question 76.  In particular, are there plans for review of the system to make it more
transparent, predictable, fair and equitable?
Answer:
Please see the answer to Question 41 above.
Question 43
What criteria are applied to determine whether licenses should be issued or not (we note that
the Committee has been abolished but presumably an assessment is still undertaken ofapplications by other authorities)?  Can Tonga clarify how there can be no procedures or rules
regarding applications and documents, and how it plans to address the requirement for all
procedures to be published?
Answer:
Please see the answer to Question 41 above.
Question 44
Can Tonga clarify the situation with import li censing procedures?  In the initial question,
Tonga was asked to clarify how varying import license fees (that were used to raise revenue for
the Government) were justifiable under Article VIII of the GATT 1994.  Under this Article such
fees are prohibited from being used for fiscal pur poses.  In their reply, Tonga has said they will
review the matter.  Have any measures been put in place to ensure compliance with Article
VIII?
Answer:
Please see the answer to Question 41 above.WT/ACC/TON/5
Page 18
Question 45
A number of responses in document WT/ACC/TON/4 on licensing are not totally clear, as they
refer questions on the scope, content, and nature of the system to the legislation submitted to the
WTO Secretariat.  Review of this legislation, ho wever, has raised further issues regarding the
import regime of Tonga, specifically relating to the number of fees required, how these fees areapplied to certain products, and with the requirements that govern import licensing.  Tonga’s
current licensing law appears to have a number of aspects inconsistent with the Agreement on
Import Licensing Procedures and GATT Articl es VIII and X, i.e., transparency and the
application of fees.  It does not provide guidance as to the steps that an  importer would need to
take to actually obtain a license and the fee structure appears to be related to the level of
importation, not to the cost of providing the li cense.  For example, the import licensing fee
varies by product and is paid every time the product is shipped.  Certain items are subject to alicense fee for each item import ed such as motor vehicles and machinery.  This does not appear
to be commensurate with the cost of services rendered.
We recommend that Tonga revise its legal provisions related to the act of importation, making
them consistent with the provisions of the WT O Agreement on import licensing requirements
both as they relate to the licen sing of imports as goods and of the act of importation of certain
products.
Answer:
Please see the answer to Question 41 above.
Question 46
Tonga noted in WT/ACC/TON/3 that the rules for issuance of special licenses were being
revised.  Has this happened?  What has been done in this regard?
Answer:
Following is a list of goods that require a special licence:
HS Number DescriptionPermission required & Ministry
involvedApplication
Fee
93.03 Firearms and ammunition license issued by the Minister of Police $10.00
3602.000 Explosives of all kinds including fuses
and detonatorslicense issued by the Minister of Police Nil
9304.0000 Noxious, stupefying or tear gas in any
form and all weapons and instrumentsor appliances for firing or using suchgas containers or cartridges for suchweapons or other instruments orapplianceswritten permission of the Minister of
PoliceNil
2208.3010 Brandy and whisky certified to the satisfaction of the
Collector of Customs that it has been
matured in wood for three years*Nil
2208.4010 Rum certified to the satisfaction of the
Collector of Customs that it has beenmatured in wood for two years*Nil
87.04
87.11Motor vehicles, motor cycles and motor
scooterslicense issued by the Minister of
Finance and the Minister of Police (forpublic safety purposes and recordskeeping)NilWT/ACC/TON/5
Page 19
HS Number DescriptionPermission required & Ministry
involvedApplication
Fee
87.04 Left hand drive motor vehicles license issued by the Minister of Police
(for public safety purposes and recordskeeping)Nil
4007.0010 Eggs license issued by the Minister of
Finance*Nil
1905.9010 Cabin and ships biscuits license issued by the Minister of
Finance *Nil
Goods the importation of which is
restricted by any other law in force in
the Kingdom except in accordance with
such law.
* Tonga is prepared to remove its licensing requirements for eggs (see question 37 above), cabin and ships biscuits (see
question 37 above), brandy and whisky, and rum as at the date of its accession to the WTO.
Question 47
In document WT/ACC/TON4, Tonga states that additional licenses are needed for the
importation of alcoholic products for health reasons.  What are the health reasons that requirethat brandy and whisky be matured in wood for three years?
Answer:
Please see the answer to Question 46 above.
Question 48
What are the steps for getting the additional lic enses required for importing alcoholic products?
Does Tonga have a domestic alcoholic beverage industry and is it subject to the same
restrictions?
Answer:
Please see the answer to Question 46 above.
Question 49
We are pleased that Tonga has eliminated the discriminatory licensing procedures between
Tongan and non-Tongan.  Please revise the Annex 3 import licensing questionnaire to include
the changes that have been made to the licen sing system since the foreign trade memorandum
was distributed.
Answer:
Please see the answers to Question 41 above.
Question 50
Please include a list of all products that require  a license with HS number and description.  Also
include all agencies or ministries that must be approached to get a license, and any fees
associated with importing.WT/ACC/TON/5
Page 20
Answer:
Please see the answer to Question 46 above.
(h) Customs valuation
Question 51
We would appreciate receiving an update on progress in bringing Tonga's customs valuation
regime into conformity with the WTO Agreement on Customs Valuation.  We note that Tonga
has identified this issue as a possible area requiring technical assistance.  We would be
interested if Tonga has requested technical assistance in this area and whether positive
responses have been received or are being considered.
Answer:
Tonga recognises that its present valuation rules do not conform to WTO requirements and plans to
introduce a new WTO-compatible system as rapidly as possible. However, given the length of timeneeded to implement the new customs valuation rules, the Government of Tonga requests a
transitional period permitting it to complete this process after its accession to WTO.
Tonga’s legislative action plan regarding customs valuation is as follows:
ActionTarget date from receipt of adequate technical
assistance
Parliamentary consideration and passage oflegislation for WTO-consistent valuation rules.One year
Establishment of implementing regulations. Two years
Recruitment of personnel, obtaining facilities and
equipment. Establishment of databases.Two and a half years
Development of manuals and operating procedures. Two and a half years
Training of at least 15 officials, customs officers and
private sector people.Three years
Implementation of legislation Three years after receipt of adequate technical
assistance or date of accession, whichever is later.
The length of the transitional period will be agreed during the negotiations for accession, when the
availability of adequate technical assistance is clarified.
Tonga is prepared to accept the following Protocol commitment: “Tonga would fully apply the WTO
provisions concerning customs valuation as from an agreed date,  including the Agreement on the
Implementation of Article VII of the GATT 1994.
Question 52
On customs valuation (see question 78B), Tonga acknowledges that it will need to amend
legislation and supply the questionnaire.
Answer:
Please refer to the answer to Question 51 above.WT/ACC/TON/5
Page 21
Question 53
We have reviewed Tonga’s submissions on customs valuation provided in documents
WT/ACC/TON/2, WT/ACC/TON/3, WT/ACC/TON/3/Add.1, WT/ACC/TON/4, and
WT/ACC/TON/4/Add.1.  This includes the relevant Tongan statutes and regulations including
the Customs Duty and Excise Act; Act No. 3 of 24 June 1992 to Amend the Customs Duty andExcise Act (Cap. 67); Act No. 22 of 23 October 1990 To Amend the Port and Service Tax Act;
and Customs and Excise Regulations, Chapter 67, Section 265 (July 31, 1984).  We appreciate
Tonga’s statement in WT/ACC/TON/3 that it intends to amend its current system to meet WTO
obligations, and we take note of Tonga’s request for appropriate technical assistance.  We also
note that Tonga sent a representative to participate in the World Customs Organization Fellow
Program, and we believe this training should be helpful in this effort. We look forward to
working with Tonga on the implementation of those changes.  In order to assist Tonga in
evaluating the key areas where additional legisl ation and institutions may be necessary, we have
prepared the following comments and questions:
Concerning the valuation hierarchy, Tonga’s curren t valuation law does not appear to provide
for the determination of customs value based on the hierarchy of appraisement methods
contained in Articles 1-6 of the Agreement on the Implementation of Article VII of the GATT1994.  Specifically, transaction value as defined in Article 1 is the preferred method of
appraisement, followed by the transaction value of identical merchandise, the transaction value
of similar merchandise, the deductive value, co mputed value, and finally the fallback method.
We suggest that Tonga’s legislation be revised to adopt the provisions of these Articles.
Answer:
These concerns will be addressed in the proposed new legislation. Tonga will provide a copy of the
proposed Bill once it has been completed.
Question 54
We note that in most countries, the vast majority  of customs entries are accepted on the basis of
invoice value.  Is this the case in Tonga?  Does Tonga foresee specific problems with reliance on
invoice value for valuation of most customs entries?
Answer:
The present system is not based on invoice value.  Experience has shown that in some cases, invoices
presented to customs in Tonga do not reflect the price actually paid or payable. However, Tonga
believes that, provided that the necessary technical assistance is made available, it will not have major
problems in implementing Article 1 of the WTO Customs Valuation Agreement (transaction value)
correctly.
Question 55
Could Tonga outline its current method for de aling with customs entries where use of the
invoice for the basis of valuation is not possible?
Answer:
At present Tonga uses the Brussels Definition of Value (BDV) system.WT/ACC/TON/5
Page 22
Question 56
Concerning the prohibited basis of appraise ment, in accordance with Article 7 of the
Agreement, customs value may not be based on 1) the selling price in the country of
importation;  2) a system that provides for the acceptance for customs purposes of the higher of
two alternative values;  3) the price of good s on the domestic market of the country of
exportation;  4) the cost of production other than compute values whic h have been determined
for identical or similar goods;  5) the price of the goods for export to a country other than the
country of importation;  6) minimum customs values;   or 7) arbitrary or fictitious values.  The
current Tongan law does not contain these proh ibited methods for valu ation, and should be
amended to include them.  Does Tonga currently use any of these methods?  If so, what are the
circumstances that require this, and what cons ideration has been given to revising these
procedures to meet WTO obligations?  We would be interested in Tonga’s views on how suchmethods could be converted to a WTO-consistent method.
Answer:
As noted above, Tonga recognises that it will have to introduce a new system of customs valuation
when it becomes a member of WTO, rather than trying to convert its present system.
Question 57
Concerning confidentiality and transparency, Ton ga’s valuation law does not appear to provide
adequate protection for the treatment of confiden tial information in accordance with the Article
10 of the Agreement, which grants confidential  treatment to business proprietary information.
Are there other provisions of law that cover this requirement?  If not, we believe that the
provisions of the WTO Agreement should be included in Tonga’s laws.
Answer:
The provisions of the new law will cover this requirement.
Question 58
Tongan law also appears to lack adequate transp arency safeguards.  In particular, Article 12 of
the WTO Agreement ensures publication of la ws, regulations, judicial decisions and
administrative rulings regarding the valuation of merchandise.  In addition, the Tongan law
and regulations do not appear to provide that importers have the right to a written explanation
of how judicial and administrative valuation decisions were determined.  These provisions are
contained in Articles 11.3 and 16 of the Agreement.  Are these requirements provided for in
other legislation?  If not, we believe Tonga should develop a plan for establishing such
protections for Customs rulings, and should cons ider extending such measures to other areas,
e.g., in the application of taxes and fees to imports and the granting of licenses and other priorauthorizations for importation.
Answer:
The new valuation legislation will ensure that the requirements of the WTO Agreement on Customs
Valuation are met.
Tonga is also prepared to accept the following Pr otocol commitment: “From the date of accession to
the WTO Tonga would abide by the provisions of WTO relating to judicial and administrative
decisions, including Article X:3 of GATT 1994”.WT/ACC/TON/5
Page 23
Question 59
Concerning bonded entries, when it is necessary to delay the final determination of the customs
value, Article 13 of the Agreement grants importers the right to withdraw their merchandise
provided they obtain sufficient guarantee in the fo rm of a surety or deposit to cover the ultimate
payment of customs duties.  Tonga’s Customs law does not appear to provide for bonded entryof merchandise under these circumstances.  If su ch a system does not exist, we suggest that
Tonga adopt one.  If such a system exists, we sugg est that it be explicitly included in its customs
law and regulation to ensure transparency.
Answer:
The new valuation legislation will ensure that the requirements of the WTO Agreement on Customs
Valuation on this provision are met.
(k) Application of internal taxes on imports
Tonga is willing to enter into the following Protocol commitment: “From the date of accession Tonga
would apply its domestic taxes in full compliance with the relevant provisions of the WTO, including
Articles I and III of GATT 1994, in a non-discrimi natory manner to imports from all WTO Members
and to domestically- produced goods”.
Question 60
Two provisions of Tonga’s sales tax on goods appear to have elements that discriminate against
imports, i.e., that goods from one vendor or business to another vendor or business for the
purpose of further retailing or manufacturing and processing for sales to customers are
exempted unless these goods are imported for resale unless registered by the Inland Revenue
Department; and that sales of local agriculture, livestock and fisheries products in governmentmarkets by individual sellers are also exempted.  We would appreciate Tonga’s clarification as
to how this does not discriminate against similar imported goods, i.e., conflict with the
provisions of Article III?
Answer:
Tonga does not believe that the provision that that goods from one vendor or business to another
vendor or business for the purpose of further retailing or manufacturing and processing for sales to
customers are exempted unless these goods are imported for resale unless registered by the Inland
Revenue Department discriminates against imports because the procedure for registration by the
Inland Revenue Department is designed only to administer revenue collection and does not constitute
an obstacle to trade.
The exemption of sales of local agriculture, livestock and fisheries products in government markets by
individual sellers only applies to very small individual producers.  Products sold by large local firmsand imported products, which by definition are sold by larger firms, are subject to the tax. Difficulties
of tax collection and its disproportionate cost make it necessary to exempt small producers.   Many
other WTO Members also exempt small producers.
On this understanding, Tonga is prepared to ente r into the following Prot ocol commitment: “From the
date of accession Tonga would apply its domestic taxes in full compliance with the relevantprovisions of the WTO, including Articles I a nd III of GATT 1994, in  a non-discriminatory manner to
imports from all WTO Members and to domestically- produced goods”.WT/ACC/TON/5
Page 24
Question 61
Does Tonga apply VAT?  If yes, please provide details of its functioning and eventual
differences with the sale tax.
Answer:
No, Tonga does not apply VAT.
Question 62
Does Tonga produce any other alcoholic beverage besides beer?  Does it produce tobacco
products?
Answer:
Tonga does have two small local distilleries. No tobacco products are currently produced in Tonga.
(l) Rules of origin
Question 63We seek a commitment from Tonga that upon ac cession its laws and regulations on rules of
origin would be applied in conformity with the provisions of the WTO Agreement on Rules of
Origin.  We also seek confirmation that To nga’s laws will be amended to incorporate the
requirements of Article 2(h) and Annex II, paragraph 3(d), i.e., that for non-preferential and
preferential rules of origin, respectively, the customs authority will provide upon the request of
an exporter, importer or any person with a justif iable cause an assessment of the origin of the
import and outline the terms under which it will be provided, and that any request for such an
assessment would be accepted even before trade in the goods concerned began.
Answer:
Tonga is prepared to accept the following Protocol  commitment: “From the date of accession, Tonga’s
preferential and non-preferential rules of origin w ould comply fully with the WTO Agreement on Rules
of Origin, including the provisions of Article 2(h) and Annex II, paragr aph 3(d) of the Agreement, i.e.,
that for non-preferential and preferential rules of origin, respectively, the customs authority will accept
requests from an exporter, importer or any person with  a justifiable cause for an assessment of the origin
of the import”.
(m,n,o) Anti-dumping , Countervailing and safeguard regimes
Question 64
We appreciate that Tonga does not expect to use these measures to regulate trade.  We seek an
appropriate commitment in the Working Party report that Tonga will not apply such measures
without first notifying to the WTO legislation covering such measures consistent with WTO
Agreements.
Answer:
Tonga is willing to accept the following Protocol commitment: “Tonga would not apply any anti-
dumping, countervailing or safeguard measures until it had implemented appropriate laws in
conformity with the provisions of the WTO Agreements on these matters.   Tonga would ensure theWT/ACC/TON/5
Page 25
full conformity of any such legislation with the relevant WTO provisions, including Article VI and
XIX of the GATT 1994 and the Agreement on the Implementation of Article VI, the Agreement on
Subsidies and Countervailing Measures and the Agreement on Safeguards.  After such legislation was
implemented, Tonga would only apply any anti-dumpi ng duties, countervailing duties and safeguard
measures in full conformity with the relevant WTO provisions”.
3. Internal Policy Affecting Foreign Trade in Goods
(b) Technical regulations and standards, including measures taken at the border with
respect to imports
Tonga is prepared to enter into the following protocol commitment: “Tonga would ensure that no
technical regulations, standards and conformity assessment procedures are adopted or implemented
until Tonga has implemented appropriate laws ensuring conformity with the provisions of the
Agreement on Technical Barriers to Trade. Tong a would ensure the full conformity of any such
legislation with the Agreement on Technical Barriers to Trade”.
Question 65
The Ministry has authorization to make regulations for the size, dimensions, and other
specifications of packages of food.  This is potent ially very prescriptive.  Do any regulations exist
concerning food package size and dimensions and, if so, can Tonga provide a list of food theregulations apply to?
Answer:
Tonga has no regulations concerning food package size, dimensions or other specifications.
Question 66
Are there currently any food labelling and packaging regulations in force in Tonga?
Answer:
No.  We do however have one regulation regarding the packaging of squash pumpkin for export.
Question 67
Which substances are not permitted in food?
Answer:
There are no regulations on this subject.
Question 68
Under Section 120 of the Act, 'the Minister may specify standards of emission from any motor
vehicle...which is a nuisance or endangers public health'.  Are there any emission standards in
place?
Answer:
There are no emission standards.WT/ACC/TON/5
Page 26
Question 69
Under Section 120, could the term "excessive or harmful exhaust smoke” be clarified?  What
constitutes 'excessive' smoke?
Answer:
Tonga is a very small developing country and does not have the resources to buy, maintain and
operate testing equipment. Findings that exhaust smoke is excessive or harmful are only made in
exceptional cases.
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 70
We appreciate the information Tonga has provided on its sanitary and phytosanitary regime.
However, we need to see more detailed information and specific legislative references in its
checklist to be able to evaluate Tonga’s SPS regime and its consistency with the WTOAgreement on Sanitary and Phytosanitary Measur es.  Please provide separate documentation
using the format given in document WT/ACC/8, with specific reference to the legislative,
administrative, or procedural basis for complia nce with the provisions of the SPS Agreement.
If the relevant legislation or administrative procedures are not yet in place, please indicate when
Tonga intends to develop these laws or procedures.
Answer:
Three new Acts have been passed by the Legislative Assembly, namely, Animal Diseases Bill
(Amendment) Act (2002), the Agricultural Commodities Export Act (2002) and the Pesticides Act
(2002). FAO and South Pacific Commi ssion Consultants assisted in the drafting of this legislation and
these should meet international requirements. These Acts have been submitted to WTO Secretariat forthe information of WTO Members.
At the present time, Tonga does not have legislation making observation of the SPS Agreement
mandatory. Such legislation, and regulations containing the administrative procedures necessary to
administer the SPS Agreement, would come into force as from the date of Tonga’s accession to WTO.
The regulations would specify, for instance, the enquiry point, the authority responsible for makingnotifications to WTO, the publication to be used for the publication of proposed measures, the
procedure to be used for taking comments into account, the Government body responsible for
developing regulations, conducting risk assessment s and control, inspection and approval procedures.
This constitutes our response to the questions in WT/ACC/8.
Tonga does have the technical infrastructure in place required to implement the SPS Agreement.
Australia assisted in the development of Tonga’s present practices, so it is expected that these meet
international requirements.  Tonga already responds to all reasonable questions regarding theirsanitary and phytosanitary measures - the Director of Agriculture is the contact point for all enquiries
on SPS issues:
Mr. Haniteli ‘O. Fa’anunu
Director of Agriculture,
Ministry of Agriculture and Forestry,Nuku’alofa,
P.O. Box 14
Tel: (676) 23038 Fax: (676) 24271
E-mail:  hfaanunu@maf.gov.toWT/ACC/TON/5
Page 27
The Tongan Authorities also conduct risk assessments, work closely with Pacific Quarantine
counterparts in dealing with Plant Protection and Quarantine issues as endorsed and recommended by
the FAO IPPC (International Plant Protection Convention) and actively participate in relevant
regional and  international bodies.
MAF is seeking financial assistance for deve lopment of MAF SPS information Web Site from
Australia and USA. Tonga would welcome any fund ing assistance that may be provided by WTO
members, as a part of the capacity building assistance to developing countries.
Tonga is prepared to accept the following Protocol  commitment in the Working Party report: “Tonga
would apply the agreement on the application of sanita ry and phytosanitary measures from the date of its
accession without any transitional period”.
Question 71
Concerning the list of prohibited imports in re sponse to question 120, why does Tonga prohibit
the importation of these commodities except fo r seeds and propagating materials?  Is it to
protect domestic production?  If for sanitary or phytosanitary reasons, isn’t there a method less
trade restrictive than an import ban that could serve the same purpose?
Answer:
Lists of plants and plant materials (Plant Quaranti ne Regulation/Act and in the Animal Diseases Act,
second schedule, Regulation 31 etc.) of the listed species  is NOT meant to be prohibited entry into
Tonga. ‘Prohibited’ meant in the legislation refer to as ‘RESTRICTED”. The Pest Risk Analysis
system used by Tonga MAF is a “Import Permit” system where applicant has to supply MAF with all
technical and biological information on the species  is ‘free’ of the regulated quarantine pest concern
or if an effective treatment is available then permit to import that species  will be given to the importer,
with special additional quarantine import requirements and declaration. It is suggested to redefine or
new inclusion of the word '‘PROHIBITED’ or/a nd “RESTRICTED” or “REGULATED” for clarity of
purpose in the legislation.
Question 72
We note that Tonga has submitted a respon se to the questionnaire on sanitary and
phytosanitary measures (see question 121).  Tonga's regime does not appear to be consistent
with the SPS Agreement on the issue of tran sparency.  Transparency is one of the key
provisions of the SPS Agreement and it is unacceptable to provide answers such as "not
applicable".  Tonga needs to have its notification  procedures in place, so that trading partners
are made aware of changes to Tongan quarantine measures.  For example, has Tonga put new
quarantine arrangements in place against foot and mouth disease?  Perhaps Tonga's SPS
contact point (enquiry point) could also provide notifications?  Tongan officials should consultthe handbook on transparency put out by the WTO Secretariat in November 2000 titled "How
to apply the transparency provisions of the SPS Agreement".  This is available from the WTO
website.
Answer:
These comments have been noted and taken into consideration where relevant in the answers to
Questions 70 & 71 above.
With respect to the question regarding quarantine measures against food and mouth disease, Tonga is
taking precautionary measures through not allowi ng importation of animals/animal product from FootWT/ACC/TON/5
Page 28
and Mouth Disease infected country(ies) and regions. Tonga watches high risk vessels coming from
infected countries, and screens air passengers arriving from infected destinations.
(d) Trade-related investment measures
Question 73
We have noted Tonga's replies to questions 22 and 23 on the Industrial Development Incentives
Act.  It seems that the Act refers to criteri a which would constitute trade-related investment
measures, but that these are not applied in prac tice, and that the Act is being reviewed.  We
seek an explanation of the changes that will be  made to the Act, and a commitment that the
revised Act and associated practices and decision-making processes would be consistent with the
WTO, including the TRIMs Agreement.
Answer:
As stated in the answer to Question 10 above, the Industrial Development Incentive Act is being
replaced by the Foreign Investment Act and will be repealed when this new legislation is
implemented.
Tonga is prepared to accept the following Protocol commitment: “Tonga would not maintain any
measures inconsistent with the TRIMs Agreement and would apply the TRIMs Agreement from the
date of accession without recourse to any transitional period”.
Question 74
Tonga affirms that no TRIMs are applied in the country but the possibility to revoke an
industry's license if export requirements are not met qualifies as TRIM.  Even if this possibility
is seldom used, we are seeking its elimination in the course of accession.
Answer:
Please see the answer to Question 73.
(e) State-trading practices
Tonga is prepared to accept the following Protocol commitment: “Tonga would apply its laws and
regulations governing the trading activities of State-owned enterprises and other enterprises with
special or exclusive privileges and would act in full conformity with the provisions of the WTOAgreement, in particular Article XVII of the GATT 1994 and the Understanding on that Article and
Article VIII of the GATS.  Tonga would notify an y enterprise falling within the scope of Article
XVII”.
Question 75
With the exception of the Royal Beer Co. Lt d, does the Government of Tonga have an
ownership stake in any other manufacturing facility in Tonga?
Answer:
The Government of Tonga does not have an ownership stake in Royal Beer Co. Ltd. and has no stake
in any other manufacturing facility in Tonga.WT/ACC/TON/5
Page 29
Question 76
Please indicate the type of business conducted by FRISCO, Primary Produce Ltd, and Tonga
Investment.  Do any of these firms distribute imports?  Do they have import competition for the
products they sell?
Answer:
Tonga Investments Ltd. is a holding/investment company.  It was set up in 1991 to manage and
promote the various businesses carried out by its' subsidiaries, being Frisco Hardware Ltd, Homegas
Ltd and Primary Produce Export Ltd.
Frisco is a hardware and building materials supplier.  The majority of items that it sells are, by
necessity, imported. In supplying such products Frisco is competing with private enterprises.  Despite
being Government owned, Frisco has not been grante d any exclusive or special rights or privileges.
Primary Produce Limited is basically a shell compan y to collect debts.  It is intended that this
company be wound up as soon as possible.
Question 77
Will the Government of Tonga’s holding in vari ous services enterprises prevent commitments in
any sector in its GATS schedule of commitments?
Answer:
No, the Government of Tonga’s holdings will not prevent it from negotiating a schedule of specific
GATS commitments.
(l) Government procurement practices
Question 78
We take note of the response to question 131 in document WT/ACC/TON/4 concerning Tonga’s
interest in membership  in the Government Procurement Agreement.  Does Tonga currently
apply any margin of preference to local sourcing in its government procurement?
Answer:
No.
4. Policies Affecting Foreign Trade in Agricultural Products
- General Background
Question 79
We appreciate Tonga’s submission on domestic support and export subsidies as detailed in
document WT/ACC/4.  We note that it appears to indicate that Tonga does not provide support
that can be included in an aggregate measure of  support under the Agriculture Agreement, nor
export subsidies.  Concerning document WT/ACC/SPEC/TON/3, we would appreciate
clarification on a few technical points on supporting table DS:1.  Can Tonga confirm thatexpenditures for infrastructural facilities required  for the facilitation of export are limited to
the provision or construction of capital works only, and does not include any subsidies to inputsWT/ACC/TON/5
Page 30
or operating costs, or preferential user fees, as  required by paragraph 2(g) of Annex 2?  Could
Tonga provide an example of these facilities?
Answer:
Tonga confirms that the expenditures for infrastructural facilities required for the facilitation of export
are limited to the provision or construction of capital works only and does not subsidies to inputs oroperating costs. An example is the Air Treatment facility for treating (heating) agricultural produce at
the international airport and Wharf.
The fees paid by exporters for these types of facilities for exports are commensurate to the costs of the
services rendered. Details of the fee structure are included as Annex B.
Question 80
While information on Tonga’s total value of agricul tural production is useful, it doesn’t need to
be included in supporting table DS:1.  We would suggest that this information be removed fromthe table, and included as part of the explanatory notes preceding the supporting tables.  In its
place, we would suggest inserting the total valu e of "green box" measures, including the 3-year
average, at the end of supporting table DS:1.
Answer:
Attached as Annex C with changes suggested.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
Question 81
We are reviewing Tonga’s intellectual property  laws, and look forward to reviewing areas
where amendments or new laws may be ne cessary to implement the WTO Agreement on
TRIPS.  We appreciate Tonga’s commitment to implementation of the TRIPS Agreement andwe look forward to working with Tonga, WIPO, and other WP delegations to provide the
assistance necessary to accomplish this.  We sugge st, in the interim, that Tonga use the checklist
in document WT/ACC/9 to analyze its system and determine where additional provisions or
institutions may be necessary.
Answer:
WT/ACC/9 has been submitted with this document.
Question 82
Please submit an action plan for the implementation of the TRIPS Agreement.
Answer:
The Industrial Property Right Act (covering copyright and related rights, patents, trademarks,
industrial designs) was enacted in 2000. Copies of the Act and the accompanying Regulation were
submitted to WTO Secretariat for circulation to members of the Working Party.
Laws for Protection in the Integrated Circuits, Pr otection against Unfair Competition and Geographic
Indications have since been enacted. Copies of the draft laws were submitted to the Secretariat in JuneWT/ACC/TON/5
Page 31
2002 and copies of the laws as enacted are now being forwarded. Regulations under these Acts will be
drawn up.
Given the length of time required to implement the new legislation, the Government of Tonga
requests a transitional period permitting it to complete this process after its accession to WTO.
Its legislative action plan is as follows:
ActionTarget date from receipt of adequate
technical assistance
Parliamentary passage of TRIPS-consistent legislation oncopyright and related rights, patents, trademarks, industrialdesigns, geographical indications, layout designs of integratedcircuits, and protection of undisclosed information (tradesecrets)Done
Establishment of Intellectual Property (IP) Office. Done
Establishment of implementing regulations. One year
Obtaining facilities and equipment. One year
Development of manuals and operating procedures. One and a half years
Training of at least 15 officials, customs officers and private
sector people as well as educators in TRIPS issues.Two years
Readiness to participate in regional and international IP
administrative cooperation (Forum Island countries, PCT,Madrid Protocol, etc.).Two years
Implementation Two years after receipt of adequate
technical assistance or date of accession,
whichever is later.
The length of the transitional period will be agreed during the negotiations for accession, when the
availability of adequate technical assistance is clarified.
Question 83
We would appreciate receiving an update from Tonga on its plans to accede to the Paris and
Berne Conventions and on the entry into fo rce of the Copyright Act 1988.  We note that
according to Tonga's answer to question 146 (page 56 of document WT/ACC/TON/4), the
Copyright Act 1988 is expected to enter into force following the passage of regulations which
were due to be prepared before the end of December 2000.
Answer:
Tonga became a member of the World Intellectual Property Organization on the 14 June 2001, and a
member of the Paris and Berne Conventions as of that date.
TRIPS-consistent legislation on copyright and related rights has been passed by Parliament.
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 84
Tonga needs to provide documentation in a number of areas including WT/ACC/5 on services
(see question 163, but we also note Tonga's comment in document WT/ACC/SPEC/TON/2WT/ACC/TON/5
Page 32
about the availability of information in the serv ices sector).  We note that Tonga has very
recently submitted an initial offer document on services (WT/ACC/SPEC/TON/2) and that
further work is needed to transl ate this document into a specific offer and that Tonga will need
to draw up relevant legislation.  At this early stage, taking into account Tonga's developing
country status, we could suggest Tonga examine a somewhat broader sectoral coverage toinclude, for example, financial services.
Answer:
Tonga is transmitting its specific offer to WTO and looks forward to bilateral negotiations on the
basis of that offer. It requests that, wherever possible, these bilaterals take place in Nuku’alofa. Where
this is not possible, it looks forward to holding bilaterals when it comes to Geneva for the second
meeting of its Working Party.
Question 85
As per question 177 (page 64 in document WT/ACC/TON/4), we would welcome advice from
Tonga as to whether a monopoly on the provis ion of international telecommunication services
still remains in place.  If this is so, we would welcome details on the terms of this monopoly.
Answer:
As stated in WT/ACC/TON/4 the exclusive right granted by Government to Cable & Wireless to
provide the international telecommunications services for Tonga lapsed in July 2000.
The Communications Act 2000 opened up both the domestic and international telecommunications
services for any person or company wishing to operate  them, subject to Part V of this Act which sets
out the authority, rights and obligations associated with either an Individual or a Class License.
Tonga now has two mobile service providers who both offer international communication services, in
addition to Tonga’s land-line facilities. 
VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
Question 86
We take note of Tonga’s statement concerning preferential trade arrang ements in its response
to question 183 in document WT/ACC/TON/4.  Does Tonga grant any trade preferences to any
other countries or economies?
Answer:
No.
Tonga is prepared to accept the following Protocol commitment: “Tonga’s Government would
observe the provisions of the WTO, including Article XXIV of the GATT 1994 and Article V of the
GATS in its trade agreements.”
_______________WT/ACC/TON/5
Page 33
ANNEX A
PRICE CONTROL MARK-UP SCHEDULE
PRICES OF GOODS AND SERVICES AND WAGE RATE ACT 1988
MARK-UP SCHEDULE
In exercise of the powers conferred upon the Competent Authority under the Prices of Goods and
Services and Wage Rate Act 1988 as amended the Competent Authority hereby cancels all orders
hitherto made under the Prices of Goods and Services and Wage Rate Act 1988 and its subsequent
amendment.
1. This heading replaces the order under the heading PRICES OF GOODS AND SERVICES
AND WAGES RATE 1947  which was published in the Tonga Government Gazette No. 1 of
1991 and Tonga Government Gazette No. 8 of May 31st 1989 in respect of spare parts.
2. The legal maximum price to be charged for the goods indicated in this order shall be the price
ascertained by the calculation as shown.
Notes: The abbreviation “LC”  means LANDED COST
The abbreviation “WP”  means WHOLESALE PRICE
The abbreviation “RP” means RETAIL PRICE
Articles Calculation for WP Calculation for RP
1.   Flour per 50kg bag per kg 5% over LC 3¾% over WP
0.02s over RP /kg in bag.
2. Sugar per 50kg bag per kg 7½% over LC 10% over WP
0.02s over RP /kg in bag.
3. Butter and Margarine 5% over LC
0.02s/cartoon freezer allowance
over WP7.5% over WP
0.10s/carton freezer allowance
over RP
Baby milk, Milk poweredevaporated or condensed (withor without other ingredients) 
5% over LC 
7.5% over WP
4. Tea 5% over LC 7.5% over WP
5. Rice (Brown, White or
Polished)12.5% over LC 15% over WP
6. Coffee, Milo, Cocoa 12.5% over LC 15% over WP
7. Edible oil of all types 12.5% over LC 15% over WP
8. Cheese & Dripping 12.5% over LC 15% over WP
9. Salt 12.5% over LC 15% over WP
10. White Benzine per reputed
800ml bottles 7.5% over LC 7.5% over WP
11. All lubricants oil 12.5% over LC 15% over WP
12. Insecticides, pesticides,
Weedicides, fungicides forAgricultural use12.5% over LC 15% over WPWT/ACC/TON/5
Page 34
MISCELLANEOUS
1. A. Petroleum Product
a) Motor Spirit PMS
b) Kerosene DPK
c) Diesel ADOWholesale and Retail Prices are determined by the COMPETENT AUTHORITY
Liquid Petroleum Gas (LP.Gas)
Wholesale and Retail Prices are determined by the COMPETENT AUTHORITY
B. Bread of standard size (454g)
Wholesale and Retail Prices are determined by the COMPETENT AUTHORITY
2. Agricultural product that are grown locally and fish that are caught locally are not subject to
Price Control.
3. Ex-bond goods sales are not subject to Price Control.
4. Export Board sales are not subject to Price Control.
5. Country and Small Island sale retail mark up shall be as follows:
a) Country retail mark-up shall be 2.5% above retail mark-up for Nuku’alofa, Neiafu,
Pangai and ‘Ohonua.
b) Small Islands retail mark-up shall be 5% above retail mark-up for Nuku’alofa,
Neiafu, Pangai and ‘Ohonua.
6. a) The wholesale mark-up for Nuku’alofa and Neiafu shall be the same as indicated
under the “Calculation for Wholesale Price”  in the order for goods that have been
initially imported directly to each of the above respective ports from overseassources.
b) The wholesale mark-up for Neiafu, Pangai and ‘Ohonua in respect of goods initially
imported directly to the Port of Nuku’alofa before being shipped to each of the above
respective ports shall be the same as the mark-up indicated under the “Calculation forWholesale Prices: in the order plus the additional percentage indicated below to cover
the cost of handling, transportation and freight.
The wholesale mark-up for Neiafu, Pangai and ‘Ohonua may be worked out as follows:
Port
Prescribed Mark-upAdditional Mark-up
to Cover Handling
Transport & FreightWholesale Mark-up
Neiafu As indicated in the order Plus 8% Prescribe plus 8% mark up
Pangai As indicated in the order Plus 7% Prescribe plus 7% mark up
‘Ohonua As indicated in the order Plus 4% Prescribe plus 4% mark upWT/ACC/TON/5
Page 35
7. The retail mark-up for Nuku’alofa, Neiafu, Pangai and ‘Ohonua shall be the same as
prescribed under the Calculation for Retail Prices in the Order.
8. For the Niuas add 10% to the Retail Prices.WT/ACC/TON/5
Page 36
ANNEX B
Quarantine Fees1
The Fees charged, stated in Tongan Pa’anga, are as follows:
TREATMENT:
FUMIGATION
Small Chamber  (1.1 m3)  $10.00
All other fumigation chambers including sheet fumigation.  $7.75 per m3 or part thereof (maximum of
$130.00 per container and/or chamber).
HEAT STERILISATION
Sterilisation of goods by heat in an oven  $7.75 per 0.2m3 or part thereof (maximum
of $130.00 per container and /or chamber)
WASTE DISPOSAL
Disposal/incineration of quarantinable material e.g. warships $0.40 per hour or part thereof.
STEAM CLEANING
Per consignment  $15.00 per hour or part thereof.
COLD STORAGE
Cool room/refrigerator  $0.02 per kg per 24 hours or part thereof
Freezer  $0.04 per kg for the first 24 hours and
$0.02 per kg per 24 hours or part thereof,thereafter.
INSPECTION AND CLEARANCE:
EXAMINATION FOR IMPORT OR EXPORT
Documentation (Certificates and permits)  $4.00
Examination of a container system unit  $2.00
Examination of motor vehicle  $4.00
Examination of goods at airports for issuing of aPhytosanitary Certificate (Max. 15 mins) $2.00
Examination of goods, other than at an airport for the
issuing of a Phytosanitary Certificate (Max. 30 mins) $4.00
AIRCRAFT CLEARANCE
Light Aircraft  $50.00
Narrow-bodied aircraft (untreated)  $80.00
Narrow-bodied aircraft (treated)  $50.00
Wide-bodied aircraft (untreated)  $120.00
Wide-bodied aircraft (treated)  $60.00
SHIP CLEARANCE
Vessel of more than 25 metres in length  $50.00
Vessel of 25 metres or less in length  $20.00
POST-ENTRY QUARANTINE
Bench space per month (per 0.5 m3 or part thereof)  $7.75
Potting Material, chemicals and other related expenses  At cost
                                                     
1 Source : Adapted from Tonga Government’s Gazette Supplement Extraordinary, No.7, 24 Friday 1997, “ The
Plant Quarantine Fees Regulation 1997”.WT/ACC/TON/5
Page 37
OVERTIME
For aircraft and passenger clearance at Airports;   
       Weekdays  $4.00 per hour
       Weekends & Public Holidays  $5.00 per hour
Other than aircraft and passenger cl earance at Airports  $2.00 per hour
MISCELLANEOUS FEES
Hire of forklift and driver  $25.00 per hour
Any other activity not specified in these Regulations  $4.00 per officer per half hour or part
thereof including travelling time
__________