WT/TPR/S/24
Page 18Trade Policy Review
III. TRADE POLICIES AND PRACTICES BYMEASURE
(1) Overview andRecent Developments
1. Untilthelate1980s,marketsinFijiwereheavilyregulated,withtheauthoritiespursuingimport-
substitution policies. Import licences provided highlevels ofprotection. Price control wasextensive.
Since 1989, inorder toimprove itsgrowth potential, Fijihasimplemented afundamental change in
policy direction, away from import substitution tooutward orientation. Thetrade régime hasbeen
considerably liberalized andsimplified. Liberalization measures haveincluded theremoval oflicensing
from themajority ofimported goods, thereduction oftariff rates, andawithdrawal ofsubsidies on
some primary commodities.
2. Tariffs arenowthemain instrument oftrade policy inFiji. Thetariff structure hasbeen
simplified. Most tariffs arelower thanorequal to22.5percent. Likeother members oftheWTO,
Fijibound allitsagricultural tariffs attheendoftheUruguay Round; however, lessthanhalfthe
tariff linesinthenon-agricultural sectors arebound. Withlicensing requirements abolished recently,
remaining import controls aremostly maintained forhealth, safety, phytosanitary andsecurity reasons.
3. Fijimaintains, forrevenue purposes, modest export taxesonsugar andgold. Sugar isexported
exclusively bytheFijiSugar Corporation (FSC). Exports oflogsarebanned. Export performance
requirements areassociated withthegranting ofTaxFreeFactory status.
4. Fijihasalsoundertaken price decontrol butapproximately 35percentofdomestic output is
stillsubject tosuchcontrol. Privatization ofpublic enterprises, which playanimportant rôleinFiji,
isattheplanning stage. Several Actsgovern intellectual property rights inFijibut,according tothe
authorities, enforcement isnotyetsatisfactory.
(2) Measures Directly Affecting Imports
(i) Registration anddocumentation
5. Alloperators inFijiininternational trade mustberegistered withtheRegistrar ofCompanies
and,fortaxpurposes, withtheInland Revenue Department. Inaddition, theCustoms andExcise
Department(CED)licensescustomshouseagents,bondedwarehouseoperators,andshippingandairline
agents. Trading activities areopentoFijians andforeigners.
6. Theusual customs documentation isrequired forallimports andexports. Allexport andimport
transactions aredocumented andcleared electronically byacentral computer system. Valuation is
based onself-declaration, butwithallentries checked forcompliance. Normally, importers aregiven
from three toseven daysafterarrival ofthegoods topresent theirimport documents, although the
submission ofdocuments prior tothearrival oftheshipment isallowed. Ifgoods arenotproperly
entered andcleared (within thethree- toseven-day period, during which theyarewarehoused free
ofcharge) theybecome liable tostorage rates. If,afterafurther period ofonemonth from dateof
cessation offreestorage, noaction hasbeentaken bytheimporter toclear thegoods, theyaresold
bytheGovernment todefray thecostofstorage andcustoms charges; anybalance maybeclaimed
bytheowner within sixmonths.1Fijidoesnothaveminimum import prices. Animporter whois
1DunandBradstreet (1994/95), p.458.Fiji WT/TPR/S/24
Page 19
notsatisfied withacustoms decision canappeal totheCourt ofReview intheCustoms andExcise
Department (CED). Asafinalavenue forlitigation, thematter maybetaken totheSupreme Court
ofFiji.
7. Alloutgoing foreign exchange payments forimports aresubject toapproval. Authorized banks
mayapprovepaymentsforimportswhenanimportersubmitsthenecessarydocuments,includingcustoms
entry documents. Authorized banks maypermit advance payments ofuptoF$100,000 forimports,
ifsuchpayments arerequired bythesupplier. When anadvance payment ofmore thanF$100,000
mustbemade, animporter isrequired toobtain theprior approval oftheReserve Bank ofFiji(RBF).
(ii) Tariffs andsurcharges
(a) General features
8. Goods imported intoFijiaregenerally subject totwotypes ofcharges: tariffs, called fiscal
duties inFijiandwhich onlyapply toimports; andthevalue-added tax(VAT), which applies equally
toimports andtodomestic products. Tariff legislation isadministered bytheMinistry ofFinance
andEconomic Development (MOFED) andimplemented bytheCED. Fiji'stariff ismainly usedfor
revenue purposes, according totheauthorities.
9. Statutory tariffratesareenacted byParliament. These ratesformanupper limit, astheMinister
ofFinance andEconomic Development mayreduce thetariff ratesbelow theirstatutory levels. The
Minister may, following receipt ofanapplication, grant amanufacturer arebate ofthewhole ora
partoftheimport dutypayable inrespect of:machinery; equipment orpartsthereof; andmaterials
imported orremoved from bond byoronbehalf ofthemanufacturer andintended tobeusedin
production.2
(b) Tariff structure
10. Fijihasrecently considerably reduced itsmaximum advalorem tariff (fiscal duty) onalmost
alllinesfrom50percentin1991to22.5percentatpresent; onafewproducts, including milk, rice
andcertain beverages, ratesrange upto80percent. TheFijitariff hastwelve categories.
11. Fijiaccords atleastmost-favoured-nation (m.f.n.) treatment toallitstrading partners, including
those thatarenotWTO Members. Though Fijiisnotamember oftheWorld Customs Organization,
Fiji'stariff hasbeenbased ontheHarmonized System (HS)since 1January 1989; the1996 tariff has
some 3,500 linesattheeight-digit level. Advalorem tariffs areapplied toabout 96percentofall
lines. Specific ratesareapplied to2percentoflines, concentrated mostheavily inbeverages, tobacco,
mineral fuels, andfireworks. Afurther 2percentoftarifflines, mainly tyresandvehicles, aresubject
toalternative rates, i.e.thehigher ofagiven advalorem andaspecific rate. Fijiapplies noseasonal
orvariable tariffs. Fijiisnotanadherent totheATA Carnet Convention.
12. Fijiapplies tariffs tothec.i.f. value ofimports. Border charges arecollected bytheCED
They accounted forsome 46percentoftheGovernments 'budgetary revenue in1995, higher than
the1991 ratioof40percent(Table III.1). Theslight increase intheoverall ratioofborder charges
2Customs Tariff (Industrial Rebates) Regulations 1986.WT/TPR/S/24
Page 20Trade Policy Review
toimports, from 23percentin1991 to27percentin1995, reflects theintroduction oftheVAT
inJuly1992.
Table III.1
Border charges, 1991-95
(F$million andpercent)
1991 1992 1993 1994 1995
F$million
Border chargesa222.7 237.3 303.6 311.6 323.5
Total budget revenue 563.8 550.6 642.7 685.7 702.4
Imports c.i.f. 961.8 947.1 1,109.8 1,209.9 1,218.9
percent
Shares ofimport dutiesb39.5 43.1 47.2 45.4 46.1
"Collection" ratioc23.2 25.1 27.4 25.8 26.5
a Border charges include fiscal duty(tariff), customs duty, export duty, andVAT applied toimports.
b Share ofborder charges intotalbudgetary revenue.
c Theratioofrevenue from border charges tothec.i.f. value ofimports.
Source: FijiBureau ofStatistics, Current Economic Statistics, January 1996.
13. Theintroduction oftheVAT ledtoareduction inthelevelofimport duties. Customs and
excise duties were alsoabolished inJuly1992, other thanonalcohol andtobacco products. Tariff
rateshavebeenreduced during the1990s onmostlines, except forsome items, suchascertain beverages
andtobacco, towhich specific ratesapply.
14. Tariff ratesformost products arelower thanorequal to22.5percent. Approximately 36
and23percentofalltariff linesbearratesof10and22.5percent,respectively, while about 22per
centoflineshavezerorates. These threetierscomprise 80percentofalltarifflines. Lessthan1per
centoflineshaverateshigher than22.5percent. Fiji'ssimple average m.f.n. tariff rates(excluding
theeffects ofspecific rates) in1996 was12.4percent. Theaverage tariff ishighest inprepared
foodstuffs (21.3 percent), andfootwear, headgear andumbrellas (21.9 percent); itislowest inpearls,
precious orsemi-precious stones (2.4percent), mineral products (5.0percent), andchemical products
(6.5percent) (Table III.2).
15. Thezeropercentimport tariffapplies toliveanimals; livetreesandother plants; lac,gums,
andresins; vegetable plaiting materials; ores,slagandash;mostchemicals; pharmaceutical products;
fertilizers; mostpearls andprecious stones; mostironandsteel; andlocomotives. The10percent
rategenerally applies toedible fruits andnuts; coffee andtea;products ofthemilling industry; cork;
textile products, suchassilk,wool, cotton, other vegetable textile fibres; man-made filaments and
staple fibres; special woven fabrics, impregnated, coated, covered orlaminated textile fabric; stone,
plaster, andcement; lead;zinc; tin;other basemetals; tools; implements, cutlery, spoons andforks;
nuclear reactors, boilers andmachinery; andelectrical machinery. The22.5percentrateapplies to
fish;sugar; mostofpreparations ofcereal andflour; preparations ofvegetables andfruits; miscellaneous
edible preparations; manufactures ofstraw; most apparel; andheadgear andparts.Fiji WT/TPR/S/24
Page 21
Table III.2
Main features ofFiji'sm.f.n. tariff, 1996
(Percent)
Simple average
m.f.n. tariffTariff range Modea
Alltariff lines 12.4 0-80 22.5
Liveanimals; animal products 16.3 0-35 22.5
Vegetable products 9.6 0-40 10
Animal orvegetable fatsandoils 9.9 0-22.5 0
Prepared foodstuffs 21.3 0-60 22.5
Mineral products 5.0 0-25 0
Chemical products 6.5 0-75 10
Plastics, rubber andarticles thereof 16.5 0-25 22.5
Rawhides, skins, leather, furskins 13.9 0-22.5 10
Wood andarticles thereof 14.7 10-22.5 10
Pulpofwood orofother fibrous cellulose 16.9 0-22.5 22.5
Textiles andtextile articles 15.1 0-22.5 10
Footwear, headgear, umbrellas 21.9 20-22.5 22.5
Stone, plaster, cement, asbestos, mica 14.5 0-22.5 10
Pearls, precious orsemi-precious stones 2.4 0-20 0
Basemetals 12.0 0-22.5 10
Machinery andmechanical appliances 10.8 0-22.5 10
Vehicles, aircraft, vessels 13.7 0-80 10
Optical, photographic, cinematographic, etc. 11.1 0-22.5 10
Arms andammunition 17.3 0-20 20
Miscellaneous manufactured articles 15.0 0-22.5 22.5
Works ofart,collectors 'pieces 12.2 0-22.5 15
a Themode isthevalue appearing most frequently.
Source: Dataprovided bytheFijian authorities; andcalculations bytheWTO Secretariat.
(c) Tariff escalation
16. Fiji'stariffstructure shows escalation, withhigher tariffs onmoreprocessed items. Essentially,
imports ofprimary products, suchashorse-hair, andorganic andinorganic substances, aredutyfree,
while other mid-range products forindustry andmiscellaneous semi-finished goods attract 5percent
and10percenttariffs, respectively. However, mostimports offinished andgeneral consumer goods
beartariffs atthe22.5percentrate. Escalation ismostsignificant inareassuchasbeverages, tobacco,
mineral fuelsandproducts, explosives andvehicles; thisstructure isforrevenue purposes, according
totheauthorities.
(d) Tariff bindings
17. IntheUruguay Round, Fijibound some42.5percentofitsnon-agricultural tarifflinesatceiling
ratesof40percent,mostly inpharmaceuticals, fertilizers, cosmetics, certain textiles, ironandsteel
andproducts, andmiscellaneous items. Most agricultural tariff lines, aslisted inAnnex 1tothe
Agreement onAgriculture, arealsobound atceiling ratesof40percent,except forrice,milkpowder,
alcohol andtobacco products. Tariffs onmilkpowder andricearebound at46percent. Most appliedWT/TPR/S/24
Page 22Trade Policy Review
ratesarewellbelow thebound rates. However, inthecaseofbeverages andtobacco, theapplied rates
areabove bound ratesand,according totheauthorities, thenecessary amendments aretobemade.
(e) Tariff preferences
18. Fijiaccords tariffpreferences tosome ofitsimports fromTonga andPapua NewGuinea under
bilateral trade agreements signed inSeptember 1995 andAugust 1996, respectively. Theagreement
withTonga, which isnon-reciprocal, covers 20commodities3,granting these items duty-free access
toFiji,provided rulesoforigin andquarantine requirements arefulfilled. TheMinistry ofAgriculture,
Fisheries andForests (MAFF) isincharge ofquarantine inspection. Theagreement withPapua New
Guinea isreciprocal, covering 45products forduty- butnotVAT-free entry intoFiji.4
(f) Tariff concessions
19. Imports intoFijiofadvertising goods ofanon-marketable kind, suchasshow cards, posters,
placards, signs andthelikearefreeofduty. Fijihasaccepted theterms under which theUnited
KingdomhadadheredtotheConventiontoFacilitatetheImportationofSamplesandAdvertisingMaterial
andadmits theimport ofsuchitems inaccordance withtheterms ofthisConvention.5
20. Asnoted, tariff concessions orexemptions canbegranted, upon application, bytheMinister
ofFinance andEconomic Development. Ingeneral, dutyconcessions aregiven toindustry for
manufacturing rawmaterials andmachinery (Table AIII.1) Direct imports fordiplomatic missions,
international organization andvarious institutions, canalsobedutyexempt. Inaddition, goods imported
inthecontext offoreign aidprogrammes canbegiven dutyexemption. Ingeneral, government agencies
paydutyontheirimports intoFiji.
21. Itisestimated bytheauthorities thatin1993, forgone revenue from tariff concessions was
equivalent toabout 70percentofallrevenues collected attheborder. Thishasledsome tosuggest
thattoimprove collections, existing concessions need tobemore fully documented andthatthe
discretionary authority togrant concessions should berevoked.6
(iii) Tariff quotas
22. According totheauthorities, Fijidoesnothavetariff quotas onanyproducts.
3Yams, potatoes, watermelons, cauliflower, English cabbage, lettuce, beans, copra, kava, mats, tapacloth,
coffee beans, carrots, onions, coconut timber, wood carvings, handicraft andartifacts, zucchini, hotchillies,
andcapsicum.
4The45products cover arange ofagricultural andmanufactured goods. Negotiations toincrease theproduct
coverage oftheAgreement arescheduled forearly 1997.
5DunandBradstreet (1994/95), p.458.
6World Bank (1995), p.17.Fiji WT/TPR/S/24
Page 23
(iv) Other levies andcharges
23. Excisedutiesarechargedondomesticconsumptionoflocallymanufacturedcigarettesandtobacco
goods, andbeerandspirits (Table III.3); theexcise duties arecharged ontheex-factory price. The
excise dutydoesnotapply toexports. Excise duties onmostotherproducts wereabolished inJuly1992.
Table III.3
Excise taxes, 1996
(InFijian dollars)
Item Duty rates
Cigarettes:
containing tobacco grown outside Fijibutnotcontaining
tobacco grown inFiji65.42 cents onevery 10cigarettes
containing tobacco grown inFijibutnotcontaining tobacco
grown outside Fiji50.97 cents onevery 10cigarettes
containing tobacco grown outside Fijiandtobacco grown
inFijiAdutyonevery 10cigarettes ofsuchproportion of
65.42 cents asintheamount oftobacco grown outside Fiji
contained insuch10cigarettes bears totheentire content of
thecigarettes together withtheamount ofsuchproportion of
50.97 cents astheamount oftobacco grown inFijicontained
insuch10cigarettes bears totheentire tobacco content ofthe
cigarettes
Manufactured tobacco:
containing tobacco grown outside Fijibutnotcontaining
tobacco grown inFijiF$46.58 onevery kilogram oftobacco
containing tobacco grown inFijibutnotcontaining tobacco
grown outside FijiF$23.23 onevery kilogram oftobacco
containing tobacco grown outside Fijiandtobacco grown
inFijiAdutyonevery kilogram oftobacco ofsuchproportion of
F$46.58 astheamount oftobacco grown outside Fijicontained
insuchkilogram oftobacco bears totheentire tobacco content
ofthetobacco together withtheamount ofsuchproportion of
F$23.23 astheamount oftobacco grown inFijicontained in
suchkilogram oftobacco bears totheentire tobacco content of
thetobacco
Ale,beerstout, porter andallother fermented liquors made
from malt, cider andperry95cents perlitre
Spirits:
ethyl alcohol orneutral spirits undenatured ofastrength
notlessthan80ºGayLussacF$30.64 perlitreofalcohol
denatured spirits ofanystrength 15cents perlitre
spirits (other thanspirits specified initemNos. 4.01and
4.02) ofastrength exceeding 11.49º GayLussac butnot
exceeding 57.12º GayLussacF$17.50 perlitre
spirits (other thanspirits specified initemNos. 4.01and
4.02) ofastrength exceeding 57.12º GayLussacF$30.64 perlitreofalcohol
Source: Government ofFiji.WT/TPR/S/24
Page 24Trade Policy Review
24. Onallimports, theVAT ischarged ata10percentflatrateonc.i.f. value plusthetariff.
Upon theintroduction oftheVAT inJuly1992, a10percentcustoms dutywasabolished. TheCED,
nottheInland Revenue Department, collects theVAT onimported products. Thetaxisrefundable
should thesame commodity besubsequently exported.
25. Fijihasnoprior import deposit requirements.
(v) Preshipment inspection
26. Fijidoesnotusecommercial pre-orpost-shipment inspection services. Customs officers affect
routine inspections ofimports andexports, including examinations onanadhocbasisforverification
oftechnical requirements orprohibited exports. Fordoortodoordelivery ofimports aninspection
maybecarried outatthefinaldestination (unpacking) or,inthecaseofexports, attheinitial packing
site.
(vi) Customs valuation
27. Fiji'scustoms valuation legislation iscontained intheCustoms Tariff Act.On1January 1997
Fijiadopted themethods inWTO 'sCustoms Valuation Agreement asitsmeans ofcustoms valuation;
previously theBrussels Definition ofValue hadbeenused. Alltariffs areapplied tothec.i.f. value
ofimports; fullseafreight or75percentofequivalent airfreight andallcharges incidental todelivery
ofgoods frommanufacture untildelivery tofinalimporter areadded tothebasef.o.b. value toobtain
thec.i.f. value fordutypurposes. Forexports, anyapplicable taxes areonf.o.b. value. Traders can
appeal totheComptroller oftheCED regarding customs decisions. TheSupreme Court ofFijiisthe
finalvenue forappeal.
(vii) Import prohibitions andlicensing
28. Except inaccord withU.N. Resolutions, Fijidoesnotembargo trade withanycountry. Nor
doesitapply quantitative import restrictions. Fijimaintains certain import prohibitions andcontrols
mainly forenvironmental, health, public morals, andsecurity reasons, andascalled forunder
international conventions (Table III.4).
29. Theimportation ofallplants isprohibited unless apermit isobtained from theDirector of
Agriculture. Theimportation ofspirits isprohibited unless theimporter proves tothesatisfaction of
aCollector ofCustoms thatthespirits havematured bystorage inwood foraperiod ofnotlessthan
three years; acertificate fromCustoms orapublic authority attheportofshipment willbeaccepted
asadequate proof. Theregulation applies towhisky, rum, andbrandy.7Asacontracting party of
theMontreal Protocol tocontrol emission ofchlorofluorocarbons (CFCs) andhalons, Fijicontrols
thedomestic consumption ofozone-depleting substances andhazardous substances suchasCFCs,
hydrochlorofluorocarbons(HCFCs)andmethylbromidethroughimportlicensing.Parcel-postshipments
toFijioftobacco, cigars, cigarettes, andsnuff maynotexceed 11lbs.orbepacked withother
merchandise.8
7DunandBradstreet (1994/95), p.456.
8DunandBradstreet (1994/95), p.455.Fiji WT/TPR/S/24
Page 25
Table III.4
Goods whose import isprohibited intoFiji
Products Purpose
Anything seditious National security
Opium inanyform Public safety
Anyplant partofpoppy Public safety
Indian hemp andanyparts oftheplant Public safety
Coca leafandanyparts ofplant orextracts Public safety
Lysergide Public safety
Mescaline Public safety
Peyotl Public safety
Liverabbits ...
Daggers, swords orgravity knives National security
Knuckle dusters Public safety
Defensive objects suchaselectric shock sticks orchemical propellants National security
Horror orviolence objects Public safety
Games ofchance Public morals
Explosive fireworks containing potassium chlorate ofamixture with
sulphur oraluminium powder Public safety
Matches withwhite phosphorous Public safety
Thalidomide Public safety
Warfare chemical gases National safety
Phenacetin Public safety
Weighing machines withalternative graduations National interest
Dipyrone Public safety
Novalgin Public safety
Thebook "Satanic Verses" Public morals
Counterfeit coins orbank notes Toprevent counterfeiting
Anyhazardous andtoxic wastes including radio active substances
listed under theBasel Convention Public safety
... Notavailable.
Source: Government ofFiji.
30. Specific import licence controls havebeenlargely removed since1989. Imports ofmostgoods
areunder opengeneral licence, withimportation freely allowed.9TheMinistry ofCommerce, Industry,
Trade andPublic Enterprises (MCITPE) hasspecific import licensing authority onlubricating oilto
ensure compliance withtechnical standards. Import licences forgoldandtimber areissued bythe
MOFED andtheMAFF, respectively (Table AIII.2).
9UNESCAP (1991), pp.3-4.WT/TPR/S/24
Page 26Trade Policy Review
(viii) State trading
31. TheFijiSugar Corporation (FSC) isthesolebuyer ofsugar caneandmanufacturer ofraw
sugar; itislegally responsible fortheselling andmarketing ofsugar, withtheFijiSugar Marketing
CompanyactingasFSC'smarketingagent.AlthoughtheNationalTradingCorporationLtd.(NATCO),
which iswholly owned bytheGovernment, isthesoleimporter ofginger andcocoa, according to
theauthorities itdoesnothaveexclusive privileges.
(ix) Import cartels
32. Import andexport cartel arrangements andexclusive dealerships arenotpractised ingeneral,
according totheauthorities. Although import cartels existinbutter andmilkpowder, there isnolaw
inFijiregarding import cartels.
(x) Standards andother technical requirements
(a) Standards, testing andcertification
33. InFiji,theDepartment ofFairTrading andConsumer Affairs intheMCITPE administers
theFairTrading, Quality andStandards Decree, which provides forthedevelopment ofstandards and
forschemes fortheirimplementation, including certification ofcalibration equipment usedfortrade
measurement. In1994, theTrade Standards Advisory Council (TSAC) wasestablished under theTrade
Standards andQuality Control Decree 1989. TheTSAC considers andrecommends totheMinister
ofMCITPE theadoption oftheFijiStandards. TodatenoFijiStandards havebeenpublished but
products forwhich standards arecurrently being prepared include: kerosene cooking stoves; roofing
sheetsforcyclonicprotection;children'stoys;cannedfish;roofingscrewsforcycloneprotection;roofing
nailsandwashers forcyclone protection; andportable fireextinguishers.
34. Thedevelopment ofseparate Fijistandards isarelatively recent concern anditisexpected
thatinitially suchstandards willreflect those ofAustralia andNewZealand, withrecognition ofthe
ISOStandards where appropriate.10Fijihasnoformal mutual recognition agreements withforeign
standards agencies. According totheauthorities, noinstances where foreign standards havebeenfound
tobeinappropriate havebeennoted.
35. Several government laboratories andmanufacturer 'slaboratories provide testing services,
essentially fortheir ownpurposes. Most government laboratories have private clients. Some
manufacturer 'slaboratories haveISO9000certification. According totheauthorities, itisnotknown
whether allgovernment agencies recognize thetesting procedures performed intheexporting country.
However, within thescope oftheDepartment ofFairTrading andConsumer Affairs itisintended
thattesting laboratories inother countries berecognized provided theyarecertified oraccredited by
internationally recognized bodies. Inthisrespect, Fijihasexpressed interest inAustralia 'snational
laboratory accreditation system, i.e.theNational Association ofTesting Authorities.
10Fijibecame amember oftheISOin1994.Fiji WT/TPR/S/24
Page 27
(b) Marking, labelling andpackaging
36. Fiji'slabellingandpackagingrequirementsareprescribedintheNationalandTradeMeasurement
Decree 1989andtheNational andTrade Measurement (Pre-packed Articles) (Packaging) Regulations
1989. With regard topre-packed goods, Fijirequires thatthelabels statethetruequantity, thename
andaddress ofthepacker, theunitprice, andother relevant information forappropriate identification
oftheproduct. Perishable andsemi-perishable goods including pre-packed foodarerequired tostate
a"pull" or"use-by-date". Marketing, labelling andpackaging arerequired tobeinEnglish, andweights
andmeasures must bespecified metrically onthepackage.
37. Ifgoods areforwarded byair,IATA and/or ICAO regulations regarding packing andlabelling,
andspecial IATA and/or ICAO documentation mustbemet. Forgoods being sentbyboat, thelatest
International Maritime Organization (IMO) requirements usually havetobemet.11
(c) Health, sanitary andphytosanitary regulations
38. Quarantine, sanitary andphytosanitary regulations aresetandadministered bytheMAFF.
According totheauthorities, thepolicy governing these regulations wasrecently changed from one
of"zero-risk" tothatof"minimal risk", inorder tofacilitate trade. Under therequirements, itisnot
permitted toimport freshmeatfromanycountry where footandmouth disease andother suchdiseases
haveoccurred. Allliveanimal imports arerequired tomeetanimal quarantine protection procedures
established bytheMAFF.
39. InordertoimportpesticidesintoFiji,theproductsmust,undertermsofthe"PesticideRegulation
1971", beregistered inthenation oforigin andbelabelled inaspecific manner. Special regulations
govern theuseofionizing radiation equipment. Licences arerequired fortheuseofequipment that
emits ionizing radiation. Special quality controls apply topoultry feed. Special requirements govern
imports offruit, vegetables andflower seeds, foodstuffs, various drugs andpharmaceuticals.12
(xi) Government procurement
40. Fijiisnotamember of,noranobserver to,theWTO Plurilateral Agreement onGovernment
Procurement signed inMarrakesh inApril 1994.
41. TheGovernment Supplies Department (GSD) oftheMOFED istheGovernment 'spurchasing
agency, administering the1982Government Supplies Regulation. Tendering decisions, andplacement
oforders ingeneral, aremade byeither theMajor Tenders Board ortheMinor Tenders Board. The
former deals withpurchases overF$30,000 andthelatter withpurchases between F$15,000 and
F$30,000. In1995, thetotalcontracts forpublic procurement awarded toforeigners bytheMajor
TendersBoardandtheMinorTendersBoardamountedtoF$15.5millionandF$8.9million,respectively
(Table III.5).
11DunandBradstreet (1994/95), p.458.
12DunandBradstreet (1994/95), p.457.WT/TPR/S/24
Page 28Trade Policy Review
42. Alltenders above F$15,000 areunder competitive tendering andthere isnodiscrimination
against foreign suppliers, according totheauthorities. However, incases where theGSD isofthe
viewthatlocalsuppliers arecompetitive, exclusively localtendering maybepreferred. Inthiscase,
theGSD compares thelocal price withtheinternational price andusesitsdiscretion todecide. In
theselection oftenders, thecontract isnormally awarded according tothelowest bid. Inaddition
totheabove Tender Boards, Departmental andDivisional Tenders Boards areauthorized toprocess
tenders forlocalprocurement ofminor contracts, withdecisions forwarded totheGSD. Minor contracts
areopentoforeigners without discrimination.
Table III.5
Government procurement from foreign suppliers, 1995
CountriesMinor Tenders Board Major Tenders Board
Number ofindentsApproved amounts
(F$'000)Number ofindentsApproved amounts
(F$'000)
NewZealand 40 3,282.9 55 7,381.6
Australia 37 2,003.7 55 5,336.2
United Kingdom 24 1,546.6 14 653.8
Singapore 13 747.8 6 382.0
Japan 6 696.8 3 360.4
United States 4 122.2 1 488.2
Republic ofKorea 3 63.0 1 79.6
Other countries 5 403.7 12 861.0
Total 132 8,866.7 147 15,542.8
Source: Government ofFiji.
(xii) Local-content requirements
43. According totheauthorities, Fijihasnolocal-content requirements fordomestic production.
(xiii) Rules oforigin
44. Fiji'simports fromTonga under theirbilateral tradeagreement (Chapter II(5)(iii)) needtomeet
a50percentrulesoforigin requirement. Imports fromPapua NewGuinea under theirbilateral trade
agreement mustbeeither wholly obtained or"sufficiently worked" (toentail achange inthesix-digit
HSclassification) inPapua NewGuinea. Thedetermination ofwhether therules oforigin aremet
isbased uponadeclaration ontheinvoice stating theproduct source andthenecessary details oncontent.
Certificates oforigin arenotrequired. However, theymayberequested bytheimporter inthecontext
ofbankletters ofcredit, inwhich casethecertificate istobesigned byaresponsible member ofthe
exporting firmandcertified bytheChamber ofCommerce.13
13DunandBradstreet (1994/95), p.456.Fiji WT/TPR/S/24
Page 29
(xiv) Trade remedies
45. Fijihasnolegislation onsafeguards, oronanti-dumping andcountervailing actions.
Consequently, ithasnosuchmeasures ineffect against atrading partner. TheWTO Implementation
Committee (Chapter II(5)(i)) isconsidering theintroduction of"trade-remedy" legislation.
(xv) Measures implemented inexporting countries
46. Fijihasnoagreementswithforeigngovernmentsorenterprisesdesignedtoinfluencethequantity
orvalue ofgoods andservices exported toFiji;furthermore, according totheauthorities, there are
nosuchagreements between companies operating inFijiandforeign enterprises.
(xvi) Other measures
47. There arenoforeign-trade zones orfreeports inFiji. Fijidoesnotmaintain anysurveillance
measures onimports, according totheauthorities. Fijihasnoofficial countertrade arrangements, though
domestic legislation doesnotprevent firms from being involved incountertrade arrangements. Fiji
hasnotrade measures ineffect under theWTO 'sbalance-of-payments provisions.
(3) Measures Directly Affecting Exports
(i) Registration anddocuments
48. Exporters donotrequire anexport permit. Incases where theimporting country requires a
certificate oforigin, thisisavailable from MCITPE atnocost, usually onthedayofrequest for
established exporters orwithin oneortwodaysifMCITPE needs toexamine thegoods. Exporters
mustcomplete export-exit forms priortoshipment, except inthecaseofnon-quantifiable bulkexports
inwhich casethetimeperiod issixdays. Export proceeds mustbecollected andsoldtoanauthorized
bankwithin sixmonths ofthedateofexportation ofthegoods from Fijiunless aspecific exemption
isgranted bytheRBF.14
(ii) Export taxes, charges andlevies
49. Sugar andgoldexported fromFijiarebothsubject toa3percentexport duty. Customs revenue
from export duties in1995 wasF$11.4 million, equal to3.5percentoftotalcustoms revenue.
(iii) Export prohibitions, controls andlicensing
50. Fijiprohibits theexport offloraandfauna; cultural andindigenous artifacts; logs; coffee;
andmuseum artifacts. Theexport oftheseproducts isprohibited forcultural, health, orenvironmental
reasons orunder international conventions towhich Fijiisasignatory (e.g.CITES). Sugar isexportable
onlybytheFSC.
51. Specific licences arerequired fortheexport ofsome products, including sugar, wheat bran,
copra meal, certain lumber, andselected animals (Table III.6). Export licences areissued byvarious
government departments andaremonitored bytheComptroller ofCustoms.
14UNESCAP (1991), p.8.WT/TPR/S/24
Page 30Trade Policy Review
(iv) Export quotas andvoluntary restraints
52. Fijihasnoexport quotas orvoluntary export restraints, according totheauthorities.
Table III.6
Products covered byexport licensing
Products Controlling authority
Allbirds (other thandomestic fowl, ducks, turkeys, geese andpigeons); all
livecattle; allreptiles withtheexception ofthemarine turtle; all
amphibians, withtheexception ofthetoad; allbats; FijiGosHawk;
unprocessed turtle shellPermanent Secretary forPrimary Industries
Wheat bran; oilcake andmeal ofcopra; coffee Permanent Secretary forPrimary Industries
Whales 'teeth, breastplates ofpearl, andivory necklaces Permanent Secretary forFijian Affairs
Copra Coconut Board
Fijimanufactured sugar inanyconsignment exceeding 5kg. Comptroller ofCustoms
Unprocessed trochus shells Permanent Secretary forMCITPE
Arms andammunition Commissioner ofPolice
Dangerous drugs ...
Gold andcurrencies Reserve Bank ofFiji
Explosives Licensing Officer appointed under the
Explosives Act
Livefish; turtle flesh; turtle shell ...
Minerals Director ofMines
Thefollowing articles
(a)allFijian weapons made forwar,asdistinct from those made forthe
souvenir trade, andincluding clubs, throwing clubs, spears, bows and
arrows andslings;
(b)forks ofbone, ivory orwood made fortheeating ofhuman flesh, as
distinct from modern replicas thereof made forthesouvenir trade;
(c)allartifacts made from whale tooth including breastplates, pendants,
necklaces, foodhangers andhuman andanimal figures;
(d)allstone adzes andpounders;
(e)allwooden orstone carvings ofhuman oranimal figures, asdistinct from
modern replicas thereof made forthesouvenir trade.Permanent Secretary forHousing andUrban
Affairs
Wood andwood products classified initems
4401.20.00 4403.00.10 4403.00.21
4403.00.29 4403.00.31 4403.00.32
4403.00.39 4403.00.90 4404.00.00
4407.00.11 4407.00.19 4407.00.21
4407.00.22 4407.00.29 4407.00.31
4407.00.39 4407.00.41 4407.00.42
4407.00.49 4407.00.90 4409.10.20
4409.10.91 4409.10.99 4409.20.20
4409.20.91 4409.20.92 4409.20.99
4410.10.00 4410.90.00 4412.00.10
4412.00.20 4412.00.90 4413.00.00
and4418.00.10 ofSchedule 2totheCustoms Tariff ActConservator ofForests
Rice ...
Waste andscrap ofallmetals andalloys thereof ...
... Notavailable.
Source: Customs Regulations 1994.Fiji WT/TPR/S/24
Page 31
(v) Export subsidies
53. According totheauthorities, Fijidoesnotsubsidize, within themeaning ofWTO obligations,
anyofitsexports ofgoods orservices. Asofmid-October 1996, Fijihadnotsubmitted asubsidy
notification totheWTO.
(vi) Duty drawback andtaxconcessions
54. Fiji'sdutydrawback scheme isbased ontwoprogrammes, theindustrial drawback programme
andthesame-state drawback. Fortheimplementation ofboth, inspection atthepreshipment stage
ismade bytheCED. Anyagency, whether importer, exporter orcustoms broker involved indrawback
procedures must haveaGeneral Bond withtheCustoms. Claims arelodged withandapproved by
Customs.
55. Therefund ofduties ontheimport component oflocally manufactured goods thatarethen
exported isavailable ifthedomestic process changes theitems four-digit HSclassification. Toobtain
therefund themanufacturer mustprovide afullaccounting ofthematerials onwhich dutywaspaid
andoftheirshare inthefinished product. There isnotimelimit. Local manufacturing industries
arealsogiven relief from tariffs onrawmaterials, capital plant andmachinery. Thetime-frame is
initially fiveyears, butisextendable. Under thesame-state drawback programme, tariff refunds are
available provided thegoods areintheiroriginal stateandre-exported within sixcalendar months of
theirimport. Therefund ishandled bytheCED andismade afterthepresentation ofproof ofexport
andabilloflading oritsequivalent.
56. Allexports from Fijiarezero-rated forVAT purposes. Until recently, firms were exempt
from taxonincome earned from exports, provided more than30percentofoutput wasexported.15
Toincrease exports, the30percentminimum waschanged in1996 toaminimum export value of
F$10,000 ayear. Fornewentrants tothescheme theconcession willnowbeavailable for13years,
renewable forafurther fiveyears. Forfirms already inthescheme, theinitial eightyears waslengthened
in1996 to13years witharenewal offiveyears available (Table AIII.3).
57. TheTaxFreeFactory/Tax FreeZone (TFF/TFZ) scheme administered bytheFijiTrade and
Investment Board (FTIB) wasintroduced bytheGovernment ofFijiin1987withtheaimofincreasing
capital inflows, exports andemployment, andstimulating investment. Itgrants financial concessions
toattract companies toestablish operations inFiji.16Thefollowing qualifications arerequired for
TFFstatus: anyenterprise exporting 80percentofitsannual production; anyenterprise engaged in
re-export totheextent of80percentofitsactivities, iflocated inaproclaimed TFZ; andanyenterprise
inanapproved trade, product orservice thatsupplies 80percentofitsannual output toaTFF.
Enterprises eligible forTFF/TFZ status include: manufacturing; mixing, blending andpackaging;
assembly; andexportable professional services.17
15IMF (1995), p.5.
16Reserve Bank ofFiji(1993), p.27.
17DunandBradstreet (1994/95), p.457.WT/TPR/S/24
Page 32Trade Policy Review
58. Theconcessions granted totheTFFs include theduty-free import ofcapital goods, equipment,
components andrawmaterials usedtoestablish them. Taxbenefits given totheTFFs are:taxexemption
onincome fromexports foraperiod of13years; exemption ofcorporate profits fromtaxforaperiod
of13years; nowithholding taxoninterest, dividends androyalty provided revenue isnotshifted abroad;
andataxof15percentondividends paidtoresident shareholders. Other benefits intheincentive
package relating totheTFFs are:exemption from excise dutyonproducts manufactured within the
zone; andallmaterials supplied tothezonefrom elsewhere inFijicanbetreated asexports andare
eligible forexport benefits suchastheremission ofexcise duties.18
59. In1994, thenumber ofapproved TFFprojects was26andexports bytheTFFs exceeded F$200
million (Table III.7). Bysector, investment intextiles andapparel ledtheTFFinvestments (Table III.8).
ThefirstTFZ, theKalabo TFZinSuva, isexpected tobeoperational bymid-1997. Thecostof
constructing theTFZisexpected tobeF$13 million andisbeing funded bytheEuropean Union from
thesixth European Development Fund.19
Table III.7
Basic statistics forTFF, 1988-94
1988 1989 1990 1991 1992 1993 1994a
Implemented projects
ofwhich:72 60 55 60 56 103 63
TFF/TFZ 39 26 17 13 21 16 9
Approved projects
ofwhich:137 180 140 180 127 174 170
TFF/TFZ 76 105 60 81 60 35 26
Investment todate(F$million)
ofwhich:232.2 47.9 28.8 35.1 15.9 40.7 18.8
TFF/TFZ 45.0 14.3 7.3 6.5 6.7 6.5 1.6
Employment
ofwhich:9,290 2,310 2,071 2,043 1,684 2,059 724
TFF/TFZ 5,261 1,587 1,483 1,536 1,294 1,244 228
Exports (F$million)
TFF/TFZ 84.8 156.8 174.3 180.5 162.5 182.5 207.1
a Year-to-date, 14November 1994.
Source: Government ofFiji.
18FTIB (1995/96a), p.28.
19TheFijiTimes, 11June 1996.Fiji WT/TPR/S/24
Page 33
Table III.8
TFFinvestment bysector, 1994
Sector Number
approvedProposed
investment (F$)Number
implementedActual
investment (F$)
Textile andtextile articles 8 2,755,000 4 1,158,000
Wood andwood products 3 124,000 1 117,000
Food 3 3,414,697 2 740,000
Chemical products 3 1,750,000 - -
Paper andpaper products 1 1,145,000 - -
Others 8 5,142,000 4 1,015,000
Total 26 15,551,697 9 3,030,000
Source: FTIB, Annual Report 1994.
(vii) Export finance andpromotion
60. TheExport Credit Finance Facility wasintroduced bytheReserve Bank ofFiji(RBF) in1983
toassist exporters inobtaining pre-andpost-shipment credit atconcessional ratesofinterest, both
withaview, according totheauthorities, toimproving theinternational competitiveness ofexports
andtoensuring theavailability ofcredit totheexport sector. Thescheme isimplemented through
commercial banks withnorecourse totheRBF. TheRBFrefinances suchloans bythecommercial
banks at2percentage points below themaximum ratesetforcustomers. Allitems withtheexception
ofsugar, molasses, gold, green logsaswellasunprocessed timber areeligible forthescheme provided
theymeet a40percentlocal value added requirement. Eligibility alsoextends tofinancing the
construction offive-star hotels, forwhich thelocalvalue added requirement of40percentdoesnot
apply. Outstanding loans under theExport Credit Finance Facility rosefromF$1.7 million in1990
toF$5.4 million in1995.
61. TheExportPromotionIncentiveschemeoperatedbytheFijiTradeandInvestmentBoard(FTIB)
provides ataxrebate of150percentonactual expenditures incurred bynon-tax-free manufacturers
onexport promotion andtheforeign marketing oftheirproducts (Table AIII.3).20Thetotalamount
approved wasF$0.8 million in1994andF$0.3 million in1995. Anumber oftradepromotion missions
havebeenundertaken inrecent years, withabout 85percentofthefunding originating from the
European Union.
(viii) Export processing zones
62. Allexport processing zones arereferred toastheTFZinFiji,which arefullyregulated by
theCED (section (vi)above).
(ix) Other measures
63. There arenoexport cartels inFiji.According totheauthorities, theGovernment isnotinvolved
inexport insurance andguarantees. Exporters mayretain 20percentoftotalannual export earnings
inforeign currency tomeetimport payments andother external obligations.
20FTIB (1994), p.20.WT/TPR/S/24
Page 34Trade Policy Review
64. Fijibenefits from theGeneralized System ofPreferences (GSP) schemes ofanumber ofits
trading partners, including Australia, Canada, theEuropean Union, Japan, NewZealand andtheUnited
States. Many Fijian exports alsoenter Australia andNew Zealand dutyfreeunder SPARTECA;
similarly, Fijian exports canreceive preferential entry totheEUmarket under theLomé Convention
(Chapter II(5)(ii)).
(4) Measures Affecting Production andTrade
(i) Subsidies andother concessions
65. Fijiwithdrew subsidies onanumber ofprimary commodities progressively from1987onwards,
mainly overtheperiod 1990-1993. There arenodirect production subsidies inFiji. Themajor tax
incentives offered inFiji-theexport-oriented incentives, customs dutyconcessions, andsome ofthe
accelerated depreciation provisions -haveinvolved forgone revenue intheorder of2to2.5percent
ofGDP inrecent years; thishasbeenequivalent toabout 10percentofthecollected taxrevenues.21
66. There areanumber oftaxconcessions granted toinvestment andproduction inFiji
(Table AIII.3). Incentives areprovided under theIncome TaxAct,theCustoms Act,andtheCustoms
Tariff Act. Forcompanies deemed tobenewindustries bytheMinister ofFinance andEconomic
Development, income taxes areexempted foruptoeight years. Theactivity ofthecompany must
benefit thedevelopment ofFiji. Theexemption applies tothegreater ofprofits uptoF$8,000 per
yearor15percentofthelesser ofpaid-up equity capital, totalfixed capital, ortotalfixed capital
investment (Table AIII.3). Theaccelerated depreciation concessions, permitting capital expenditures
tobewritten offinanyfiveoutofeight years, provide significant benefits toallsectors except
agriculture. Theaccelerated depreciation encourages investment inbuildings (Table III.9).
Table III.9
Depreciation allowances inFiji
(Percent)
Assets Initial Annual
General plants andmachinery 30 7
Furniture andfittings 30 7
Motor vehicles
-light
-heavy0
3010
15
Bulldozers, loaders, etc. 30 15
Buildings (notforresidential purposes)
-cement
-timber10
101.25
2.5
Source: FTIB, FijiProduct Directory 1995/96, p.29.
21IMF (1995), p.11.Fiji WT/TPR/S/24
Page 35
(ii) Assistance toresearch anddevelopment
67. TheFijiNational Training Council, which isfinanced bya1percentlevyonthepayroll of
employers, provides training courses, mainly short term, through eleven industrial training boards.22
According totheauthorities, theGovernment doesnotsubsidize small-scale industries, aside from
basic training andmanagement skills, nordoesitprovide regional assistance.
68. TheGovernmentundertakesresearchanddevelopmentactivitiesinagriculture,throughMAFF's
research stations. MAFF alsohasanextension service fordissemination ofresearch developments
tothefarmsector. However, according totheauthorities, theGovernment doesnotprovide assistance
fortheresearch anddevelopment activities oftheprivate sector.
(iii) Competition policy
69. There isnospecific Competition LawinFiji. TheDepartment ofFairTrade andConsumer
Affairs (DFTCA) intheMCITPE hascharge ofcompetition policy inFiji. TheDFTCA monitors
restrictive business practices byprivate firms andactsasanadvocate forcompetition. Anti-competitive
business practices such asbid-rigging andprice maintenance arenotpractised, according tothe
authorities.
(iv) Price control
70. Price control measures inFijiaregoverned bytheCounter Inflation Act. TheActprovides
foranimplementing agency, thePrices andIncomes Board (PIB), which isastatutory bodyanswering
totheMOFED. Although thenumber ofgoods/services under thejurisdiction ofthePIBhasbeen
reduced since 1992, approximately 35percentofproducts arestillsubject toprice control, which
covers boththelocally manufactured andimported version oftheitem. Thefollowing categories are
currently under price control: foodstuffs; washing soap; patent medicine; building materials;
petroleum; barge freight rates; shipfreight rates; stationery andtextbooks; agricultural pesticides
andfertilizers; motor vehicle parts andaccessories; andwheat products. Commercial rents were
decontrolled in1992.
71. Price controls inFijiarebasically ofthefollowing three types: percentage mark-up; fixed
maximum price; anda12-week written notification forproposed increases (Table III.10). Themajority
ofitems under thepercentage mark-up system areimported. Thissystem allows apercentage mark-up
forthewholesale andretail prices tobeadded tothebase, which isthe"into storecost". Aformula
forcalculation ofthe"into store cost" isincluded intheprice control orders. Thesystem attempts
totakeaccount ofadditional costs involved inimporting. Items andservices charges falling under
the12-week written notification forproposed increases arevirtually allsubject tomonopoly supply.
Price reviews aredoneonthebasis ofsubmissions from thebusiness community orattheinitiative
ofthePIB.Except forpetroleum products andpatent medicines alltheitems under thefixedmaximum
price system arelocally manufactured.
22Government ofFiji(1993), p.45.WT/TPR/S/24
Page 36Trade Policy Review
Table III.10
Items under price control bythePrices andIncomes Board
Basis ofcontrol Items
Maximum percentage mark-up Butter (imported)
Edible oil(imported andlocal)
Canned fish(imported)
Lighting kerosene
Canned corned beefandmutton (imported)
Milk products (imported andlocal)
Rice(imported)
Infant foodpreparations (imported)
Agricultural pesticides (imported)
Fertilizers (imported)
Cladding andboards (imported)
Plywood (local)
Ethical medicines
Stationery
Textbooks (imported)
Tyres andtubes (imported)
Storage batteries (imported)
Motor vehicles spare parts
School textbooks (produced inFiji)
Sugar (imported andlocal)
12-week notification forproposed increase Telephone andpostal charges
Electricity charges
Cement-portland (local)
Milk, liquid milkandpowdered milk
Canned fish(local)
Canned corned mutton andcorned beef
Rice(imported brown andmilled inFiji)
Fixed maximum prices Plywood
Flour andsharps
Petroleum products (i.e.premium motor spirit, diesel, solvent
gasoline andpre-mixed outboard fuel)
Bread
Tea
Butter (local)
Biscuits (cabin andbreakfast crackers)
Washing soap
Medicines, patent
Inter-island freight rate
Rentcontrol Residential rent
Land rent
Source: Government ofFiji.Fiji WT/TPR/S/24
Page 37
(v) Corporatization andprivatization
72. Privatization inFijiisimplemented through thePublic Enterprise Reform Programme, which
wasendorsed bytheCabinet inOctober 1993. Itsprimary objective istheimprovement ineconomic
efficiency.Effortsatpresentaredirectedtowardsaprogrammeofcommercializationandcorporatization
ofenterprises. Thefirststage ofthePublic Enterprise Reform Programme istheintroduction of
measures toincrease theaccountability ofthepublic enterprises forperformance andincrease managerial
autonomy. Thesecond stageoftheProgramme istoincrease thecompetition towhich public enterprises
aresubject. Privatization isthethird andfinalstage.23ThePrivatisation Committee oversees the
development of,andaction under, thePublic Enterprise Reform Programme.24
73. ThePublic Enterprise Reform Programme hasledtothecorporatization ofpublic enterprises
suchasFijiPine, FijiPosts andTelecommunications (FPTL), andNational Trading Corporation.
Work hasstarted onthecorporatization oftheFijiBroadcast Commission, thePorts Authority ofFiji,
andtheWaterandSewerageSection.OthercandidatesforcorporatizationaretheFijiElectricAuthority,
theGovernment Printing andStationery Department, theGovernment Supplies Department, and
Hardwood Plantations.
74. Privatization requires theendorsement oftheMinistry concerned andtheapproval ofCabinet.
Asaresult oftheprivatization effort, theGovernment Shipyard wascorporatized in1996 and
Shipbuilding (Fiji)Limited wasestablished; subsequently theGovernment sold51percentofitsshares
toajoint-venture company. Future privatization plans areasfollows: (a)FPTL: saletoastrategic
investor andpublic issueofshares, toajointtotalof49percentofequity; (b)Pacific Fishing Company
(PAFCO): saletoastrategic investor of51percentofshares; (c)Rewa RiceLtd.: saletoaprivate
investor of100percentofshares; and(d)Yaqara Pastoral Co.Ltd:saletostrategic investor ofan
asyetundetermined percentoftheshare. Overthelonger termitisplanned thatmostmajor utilities,
following corporatization, willsellupto49percentoftheirequity, with30percenttoastrategic
investor and19percentinapublic issue ofshares.
(vi) Other measures
75. TheFijiDevelopment Bank(FDB), which wasestablished in1967, provides long-term finance
totheprivate sector atpreferential rates. Itssources offunds areequity capital provided bythe
Government, loans frominternational organizations andthesaleofdomestic bonds andnotes. Total
assets oftheFDBamounted toF$343.7 million atend-June 1996. Theamount ofloans outstanding
foragriculture atJune1995totalled F$72.4 million andweredivided intothefollowing sectors: sugar
cane, 64.4percent; general farming, 19.6percent; livestock, 12.3percent; andfishing, 3.7per
cent. Loans totheindustrial andcommercial sector totalled F$173.4 million, withmanufacturing and
tourism holding 24.5percentand17.8percentoftheamount, respectively.25
76. TheFijiauthorities arecurrently working ondraft legislation tosettheframework for
environmental policies andpractices. TheDepartment ofEnvironment intheMinistry ofUrban
23Government ofFiji(1994), p.8.
24TheCommittee consists offivesenior civilservants, chaired bythePermanent Secretary oftheMCITPE.
25FijiDevelopment Bank (1995), pp.7-8.WT/TPR/S/24
Page 38Trade Policy Review
Development,HousingandEnvironmentistoco-ordinatepolicyformulationandimplementationrelating
tosuchpolicies andpractices. According totheauthorities, theelements ofthebillthatcould most
directly affect trade aretheenvironmental impact assessment (EIA) process, andwaste management
andpollution control (WMPC). Theformer would require thatalldevelopment proposals undergo
some sortofEIAprocedure. Only major orhighriskproposals would require afullEIA. Forthe
latter, theDepartment ofEnvironment would setdischarge andwaste management standards.
77. Fijidoesnothaveminimum reserve stock requirements forstrategic orsecurity reasons.
Table III.11
FijiDevelopment Bank agricultural andindustrial loanapprovals, 1990/91 to1992/93
(F$'000)
Sectors 1990/91 1991/92 1992/93
Agricultural 14,432 15,631 13,522
Sugar cane 8,440 12,183 8,723
Vegetables 1,755 465 1,826
Livestock 755 615 1,304
Fisheries 2,395 1,606 494
Industrial 25,422 37,957 44,288
Manufacturing 7,066 2,569 12,666
Housing 0 850 8,660
Realestate 3,946 14,388 7,721
Transportation 1,360 1,969 6,651
Retail andwholesale 0 0 3,796
Commercial 1,085 11,932 2,275
Tourism 5,384 2,916 1,337
Construction 3,264 2,693 985
Timber 3,317 640 197
Fijian scheme 22,096 20,132 16,598
Total 61,950 73,720 74,408
Source: FijiDevelopment Bank, Annual Report 1993, p.8.
(5) Intellectual Property Protection
78. Fiji'smain intellectual property legislation comprises theCopyright (Broadcasting of
Gramophones) Act(Cap. 244); Performers Protection Act(Cap. 243); Patents Act(Cap. 239);
Merchandise Marks Act(Cap. 241); Industry Emblem Act(Cap. 246); Trade Marks Act(Cap. 240);
andtheUnited Kingdom Designs (Protection) Act(Cap. 242). These Actsprovide fornational treatment
forforeigners inmatters ofintellectual property rights. TheGovernment fullyintends toalign its
legislation withtheWTO Agreement ontheTrade-Related Aspects ofIntellectual Property Rights
(TRIPS), ifthereisaneed. Atpresent, theprovisions oftheAgreement arebeing studied toseewhether
changes needtobemade.
79. Fijiisamember oftheWorld Intellectual Property Organization (WIPO). Fijiisnotamember
oftheParis Convention fortheProtection ofIndustrial Property 1967oroftheTreaty onIntellectual
Property inRespect ofIntegrated Circuits 1989. However, Fijibecame amember oftheBerne
Convention 1886 fortheProtection ofLiterary andArtistic Works andtheRome Convention 1961
(International Convention fortheProtection ofPerformers, Producers ofPhonograms andBroadcastingFiji WT/TPR/S/24
Page 39
Organization) during theperiod before Fiji'sindependence, through thetreaty-making power ofthe
United Kingdom. Fijiacceded toalaterrevision oftheBerne Convention in1971asasovereign State.
80. Upon request oftheowner ofaright, parallel imports toFijicanbeprevented orbanned from
commercial distribution. Works deemed toinfringe intellectual property rights inFijicanbeseized
bytheCustoms. Theseized goods remain under customs control while theplaintiff andthedefendant
proceed withtheircaseintheSupreme Court under civiljurisdiction.
(i) Copyrights andrelated rights
81. Copyrights andrelated rights areprotected formally inFijithrough aseries oflaws, ofwhich
themain onesare:UKCopyright Act1956 asmodified bytheCopyright (Fiji) Order 1961 (Order
inCouncil);Copyright(InternationalOrganisations)Order1957;Copyright(BroadcastingOrganisations)
Order 1961; Copyright (International Conventions) Order 1964; Copyright (Notice ofPublication)
Regulations 1961; Copyright (Libraries) Regulation 1961; Copyright Royalty System (Records)
Regulations 1961; Copyright (Customs) Regulations 1961; Performers Protection Act(Cap. 243);
andCopyright (Broadcasting ofGramophones) Act(Cap. 244). Copyright protection generally lasts
foraperiod of50years from theendofthecalendar yearoftheauthor 'sdeath.
82. Most ofFiji'sintellectual property lawshaveoffence-creating provisions. PartIIIofthe1956
Copyright Actprovides bothcivilandcriminal remedies; however, thecriminal remedy provisions
areoutofdate.26Section 17provides thatcivilremedies forcopyright infringement shallinclude those
available toowners ofproprietary rights, including obtaining injunctions andtheaward ofdamages
based onlossoccasioned tothecopyright owner byreason oftheinfringement.
83. Toestablish copyright forforeign works inFijirequires, under theCopyright (International
Convention) Order 1964, proof ofthequalification ofthemaker aswellastheplace andtimeoffirst
publication. These matters cannot beproved atpresent without calling foreign witnesses. Section 22
oftheCopyright Acttogether withtheCopyright (Customs) Regulations (Cap. 244)provides forthe
prohibition ofimports ofunauthorized copies ofliterary, dramatic ormusical works. According to
theauthorities, thereisnoinstance where thisRegulation hasbeenused. Intheviewofsome, copyright
protection hasnotbeenstrictly followed inFiji,particularly inthereproduction ofvideo films, sound
recordings, andcomputer programs anddatabases.27
(ii) Trademarks
84. Trade marks areprotected inFijithrough theTrade Marks Act.Application fortheregistration
ofatrademark ismade totheAdministrator General. Once anapplication hasbeenaccepted, the
applicant mustarrange forthepublication ofanotice intheGovernment Gazette andlocalnewspapers.
Ifthere isnoobjection within three months fromthedateofpublication, aCertificate ofRegistration
willbeissued against apayment ofF$12. Theregistration isvalidfor14years andmayberenewed.
26Theexisting basis forcriminal remedies isSection 21(7) oftheUnited Kingdom Copyright Actof1946,
which stipulates amaximum fineof£2sterling foreach item.
27DunandBradstreet (1994/95), p.458.WT/TPR/S/24
Page 40Trade Policy Review
Aforeigner wishing toregister atrademark mustberepresented byadulyauthorized agent resident
inFiji.28TheActmakes certain provisions forpenalties incases ofinfringements.
(iii) Patents
85. Patents areprotected inFijithrough thePatents ActandRules. Patents arevalidfor14years
fromthegrant, oruntilthecorresponding firstforeign patent expires. There isnonovelty examination.
There arenoworking orcompulsory licensing provisions. Apetition forapatent, induplicate, is
lodged withtheAdministrator General.29Nopenalties areprovided intheActforcasesofinfringement.
28DunandBradstreet (1994/95), p.458.
29DunandBradstreet (1994/95), p.458.Fiji WT/TPR/S/24
Page 41
Annex III.1
Foreign direct investment inFiji
86. Setting upacompany inFijiisgoverned bytheCompanies Act,which alsogoverns joint
ventures. Inorder tosetupacompany, itisnecessary tosubmit totheRegistrar ofCompanies a
memorandum andthearticles ofassociation. Thememorandum should contain information onthe
name ofthecompany, thescope ofbusiness andcapital. Abusiness licence feeranging from F$50
toF$2,000 ayearisrequired toengage inanybusiness inFiji.30
87. TheFijian authorities regard foreign direct investment (FDI) ascontributing tofaster economic
growth (Chapter II(3)). Tofacilitate FDIinflows, Fijihasestablished a"one-stop" service system,
theFijiTrade andInvestment Board (FTIB), which isresponsible forthepromotion, regulation and
control offoreign investment. Allforeign investors havetogothrough theFTIB either toapply for
taxandcustomsconcessionsortoseekstatutoryclearancesfromtheRBFortheImmigrationDepartment.
Theproject isthenputbefore theGovernment Projects Committee.31Ittakes approximately sixto
eight weeks togettheapproval onproject proposals. There isnoformal requirement forforeign
investors touselocalcontent; however, theProjects Committee oftheFTIB encourages theuseof
localrawmaterials. Theapproval process isdiscretionary, withdecisions according toguidelines rather
thanunder theprovisions ofanAct.
88. Once aproject isapproved, investor status isgranted almost automatically bytheProjects
Committee andisnormally given onedayafterapproval oftheproject. Aninvestor whohasinvested
aminimum ofF$250,000 either tosetupabusiness orpurchase anestablished business inFiji,qualifies
foraseven-year residence permit. Forinvestment below F$250,000 athree-year permit would normally
begranted. Thisentitlement covers theinvestor, spouse andchildren under theageof21years. An
investor maybring inskilled personnel toeither helpestablish thebusiness orfillpositions where
experienced andqualified persons arenotreadily available locally. Forpositions atorabove theDirector
level,oneortwoforeignpersonnelmaygenerallybebroughtin,withmoreallowedastheneeddevelops;
atbelow theDirector level, decisions ontheallowable number ofaccompanying foreign staffaremade
onacase-by-case basis. Residence permits forsuchforeign personnel aregenerally granted forthree
years andarerenewable.
89. Foreign investors aregenerally discouraged from acquiring controlling interest in,ortaking
over, anestablished, locally owned enterprise. However, permission maybegiven forthisatthe
discretion oftheMinister fortheMCITPE andtheMinister fortheMOFED. Sugar milling, casino
andlottery operations areforbidden toforeigners. Inother areas, foreign investment isallowed, but
isencouraged intheform ofjointventures. Under theMarine Act,cruise companies andcustoms
house agents operating inFijihavetohaveatleasta51percentlocalshareholding. Inagriculture,
theinformal requirement isthat30percentofaninvestment should befrom localsources.
30ThelicencefeeissetandadministeredbyrespectivecityandtowncouncilswiththeapprovaloftheMinister
forUrban Development, Housing andEnvironment, ortheChief Accountant forareas outside themunicipalities.
Most ofthefeesarebetween F$100 andF$200 perannum.
31ThisCommittee ismade upofrepresentatives from theMCITPE, theFTIB, theImmigration Department,
theCED, andtheMOFED. TheCommittee meets every three weeks, withthePermanent Secretary ofMCITPE
chairing.WT/TPR/S/24
Page 42Trade Policy Review
90. Intheservices sector, there isarequirement thatthere beatleastonelocalshareholder. In
theservices support areas suchasrestaurants, transport, retail andwholesale, foreign investment is
limited byarequirement of51percentlocalshareholding. There aresimilar informal guidelines in
thenatural resource based projects toensure Fiji'sparticipation intheexploitation ofnatural resources.
When landissoldtoforeigners anapplication hastobeapproved bytheMinister forLands, Mining
andEnergy. Advertisements havetobeplaced innewspapers when thelandareaexceeds 25acres.
91. According totheauthorities, there isnational treatment forforeign investors. Since
1January 1997, allcompanies andbranch operations registered inFijiareallowed toremit abroad
tonon-resident shareholders: foroperating profits, thecurrent year'sprofits plusfouryears retained
earnings ifnotpreviously remitted; forcapital transfers, F$15 million ayear.32Theamounts have
tobeapproved bytheRBFagainst financial statements ofthecompany. Theamounts toberemitted
havetobecovered byataxclearance certificate issued bytheInland Revenue Department.
92. Ifshare andothersecurities ofbusinesses inFijiaretobeissued toanon-resident, priorapproval
under theExchange Control Act(Cap. 211)must beobtained from theRBF. Theapplication is
considered upon submission ofthefollowing information: anapproval bytheFTIB fortheproject;
name andcountry ofresidence oftheshareholder; number, value andclass ofshares tobeissued;
andbackground information ontheshareholder. Approval fromtheRBFisalsorequired forlending
tonon-resident individuals andnon-resident-controlled businesses operating inFijiforamounts above
F$30,000 andF$200,000, respectively (Chapter IV(5)(iv)). Anon-resident-controlled company can
borrow locally upto100percentofitsworking capital requirements andselected fixed assetfunding,
provided thedebttoequity ratioofthecompany iswithin theapproved guidelines. Forcompletely
foreign-owned companies theguideline is3:1; ifthecompany is71to90percentforeign owned,
itis4:1; and5:1,ifthefirmis51to70percentforeign owned.
93. Enterprises applying forTFFstatus must submit aProject Appraisal Form totheFTIB.
Investment incentives areapplied ingeneral toinvestors regardless whether theyareforeigners ornot
(Chapter III(3)(vi) andIII(4)(i)).
94. FijihasDouble Taxation Treaties withthefollowing countries: Australia, Japan, Malaysia,
NewZealand, theRepublic ofKorea, andtheUnited Kingdom. Fijiisasignatory totheMIGA,
providing guarantee against nationalization (Chapter II(4)) andisalsoamember oftheInternational
Chamber ofCommerce toallow foreign investors tohaveanappropriate forum fordispute resolution.
32Previously thelimit onretained earnings hadbeen three years andcapital transfers were allowed upto
F$10 million.