WT/TPR/S/291/Rev.1  
27 February 2014  
(14-1159)  Page: 1/76  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
TONGA 
Revision 
This report, prepared for the first Trade Policy Re view of Tonga, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Tonga on its trade policies and practices.  
Any technical questions arising from this report may be addressed to Mr. Cato Adrian (022 739 
5469) and Mr. Thomas Friedheim (022 739 5083).  
Document WT/TPR/G/291 contains the policy statement submitted by Tonga. 
 
 
Note: This report was drafted in English. WT/TPR/S/291/Rev.1 • Tonga 
 
- 2 - 
 
  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
1   ECONOMIC ENVIRONMENT .......................................................................................... 8  
1.1   Main features ............................................................................................................ 8  
1.2   Recent Econom ic Developments................................................................................... 8  
1.3   Developments in Trade .............................................................................................. 10 
1.4   Outlook ................................................................................................................... 12 
2   TRADE POLICY REGIME: FR AMEWORK AND OB JECTIVES .......................................... 13  
2.1   Genera l framework ................................................................................................... 13 
2.2   Policy objectives ....................................................................................................... 14 
2.3   Trade agreements  and arrang ements .......................................................................... 15 
2.3.1   WTO ................................................................................................................... . 15 
2.3.2   Regional trade agreements ...................................................................................... 16 
2.3.3   Preferential agreements and arrangements ................................................................ 18 
2.3.4   Bilateral agreements .............................................................................................. 18 
2.3.5   Other agreements and arrangements ........................................................................ 19 
2.4   Investme nt regime ................................................................................................... 19 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 23  
3.1   Introduction ............................................................................................................. 23 
3.2   Measures Direct ly Affectin g Imports ............................................................................ 23 
3.2.1   Import procedur es and requirements ........................................................................ 23 
3.2.2   Ordinary customs du ties ......................................................................................... 24 
3.2.3   Other duties and charges (ODCs) ............................................................................. 27 
3.2.4   Tariff-rate quotas , and tariff ex emptions ................................................................... 28 
3.2.5   Fees and charges for services rendered ..................................................................... 28 
3.2.6   Application of internal taxes .................................................................................... 29 
3.2.7   Import prohibitions, restrictions, an d licensing ........................................................... 31 
3.2.8   Custom s valuation ................................................................................................. 32 
3.2.9   Rules of origin .......................................................................................................  33 
3.2.10   Anti-dumping, countervai ling duty, and safe guard regimes......................................... 33 
3.3   Measures Directly Affecting Exports ............................................................................. 34 
3.3.1   Export procedur es and requirements ........................................................................ 34 
3.3.2   Taxes, fees, an d charges on  exports ......................................................................... 34 
3.3.3   Export restrictions ................................................................................................. 34 
3.3.4   Export subsidies, finance, and guarantees ................................................................. 35 
3.3.5   Export promotion and marketing assistance ............................................................... 35 
3.4   Measures Affectin g Production and Trade ..................................................................... 35 
3.4.1   Subsidies .............................................................................................................. 35 
3.4.2   Technical barriers to trad e, standards and certification ................................................ 36 
3.4.3   Sanitary and ph ytosanitary measures ....................................................................... 36 WT/TPR/S/291/Rev.1 • Tonga 
 
- 3 - 
 
  3.4.4   Free zones, sp ecial econom ic areas .......................................................................... 37 
3.4.5   Governme nt procurement ....................................................................................... 37 
3.4.6   State trading, state-owned enterprises, and privatization ............................................. 39 
3.4.7   Competition policy ................................................................................................. 40 
3.4.8   Pric e contro ls ........................................................................................................  41 
3.4.9   Trade-related inte llectual proper ty regime ................................................................. 41 
4   TRADE POLICIES BY SECTOR ..................................................................................... 45  
4.1   Agriculture ............................................................................................................. . 45 
4.1.1   Main features ........................................................................................................ 45 
4.1.2   Institutional and policy framework ............................................................................ 45 
4.1.3   Border  measures ................................................................................................... 46 
4.1.4   Domestic support ................................................................................................... 46 
4.1.5   Export  measures ................................................................................................... 46 
4.2   Fisheries ............................................................................................................... .. 46 
4.2.1   Main features ........................................................................................................ 46 
4.2.2   Institutional and legal fr amework ............................................................................. 47 
4.2.3   Mark et acce ss ....................................................................................................... 47 
4.2.3.1   Access to the To ngan fisherie s wate rs .................................................................... 47 
4.2.3.2   Import tariffs ...................................................................................................... 49 
4.2.4   Subsidies .............................................................................................................. 49 
4.2.5   Export  measures ................................................................................................... 49 
4.2.6   Mining, energy and water ........................................................................................ 49 
4.2.6.1   Minerals ............................................................................................................. 49 
4.2.6.2   Oil, gas and petroleum products ............................................................................ 50 
4.2.6.3   Electricity ........................................................................................................... 50 
4.2.6.4   Water ................................................................................................................ 51 
4.3   Manuf acturi ng .......................................................................................................... 51 
4.4   Services ................................................................................................................ .. 52 
4.4.1   Main features ........................................................................................................ 52 
4.4.2   Financial services ................................................................................................... 53 
4.4.2.1   Banking services ................................................................................................. 53 
4.4.2.1.1   Market stru cture and pe rformance ...................................................................... 53 
4.4.2.1.2   Regulatory framework ....................................................................................... 54 
4.4.2.2   Other financial services ........................................................................................ 54 
4.4.3   Telecommuni cation services .................................................................................... 55 
4.4.3.1   Mark et structure ................................................................................................. 55 
4.4.3.2   Regula tory fram ework ......................................................................................... 56 
4.4.4   Transp ort services ................................................................................................. 56 
4.4.4.1   Air transport ....................................................................................................... 57 
4.4.4.1.1   Ai r servic es ..................................................................................................... 57 WT/TPR/S/291/Rev.1 • Tonga 
 
- 4 - 
 
  4.4.4.1.2   Airport management and ground-hand ling services ............................................... 59 
4.4.4.2   Mariti me tran sport .............................................................................................. 59 
4.4.4.2.1   Shipping services ............................................................................................. 59 
4.4.4.2.2   Port manageme nt and port services .................................................................... 60 
4.4.5   Professi onal serv ices .............................................................................................. 60 
4.4.6   Tourism ................................................................................................................ 61 
REFERENCES .................................................................................................................. 6 2 
5   APPENDIX  TABLES .................................................................................................... 64  
 
CHARTS 
 
Chart 1.1 Revenue and grants, 2012/13 ............................................................................... 9  
Chart 1.2 Product composition of merchandise trade, 2012 .................................................... 11 
Chart 1.3 Merchandise trade by destination and origin, 2012 .................................................. 11 
Chart 1.4 Trade in  services , 2011- 12 .................................................................................. 12 
Chart 3.1 Average bound and MFN rates,  by HS chapters  1 to 24 , 2013 ................................... 26 
Chart 3.2 Average bound and applied MFN rates for non-agricultural products groups (WTO 
definition ), 2013  ............................................................................................................. . 26 
Chart 3.3 Distribution of  MFN tariff ra tes, 2013 .................................................................... 27 
Chart 4.1 Trade in agricult ural products , 1995-2 010 ............................................................. 45 
Chart 4.2 Exports of fi sheries prod ucts, 2000-12 .................................................................. 47 
Chart 4.3 Sector-specific co mmitments for services .............................................................. 53 
Chart 4.4 International arrivals by mode of tr ansport,  2005- 11 .............................................. 57 
 
TABLES 
 Table 2.1 Tonga's WTO notifications, 2007-May 2013 ............................................................ 16
 
Table 2.2 Restrict ed activities ............................................................................................ 20 
Table 2.3 Business activities reserved for Tongan investors .................................................... 20 
Table 3.1 Business activities requiring the fulfilment of additional conditions ............................. 24 
Table 3.2 Tonga's Cust oms Tariffs, 2008-13 ........................................................................ 25 
Table 3.3 Customs-relate d fees and charges ........................................................................ 28 
Table 3.4 Consumption Tax ex emptions and zero rates ......................................................... 30 
Table 3.5 Prohibited and restricted imports .......................................................................... 31 
Table 3.6 Prohibited an d restricted  exports .......................................................................... 34 
Table 3.7 State-owned en terprises in  Tonga ........................................................................ 39 
Table 3.8 WIPO treaties in force for Tonga ........................................................................... 41 
Table 3.9 Tonga's intellectual property laws and regulations ................................................... 42 
Table 3.10 Trademark registra tions in Tong a, 2000-2 013 ...................................................... 43 
Table 4.1 Main features of the Tongan offshore fisheries licensing regime ................................ 48 
Table 4.2 Tonga's main subsidy schem es, 2009- 13 ............................................................... 49 WT/TPR/S/291/Rev.1 • Tonga 
 
- 5 - 
 
  Table 4.3 Tonga's telecommunicati ons market (Sep tember 2013) ........................................... 56 
Table 4.4 Tonga's internationa l air services agreements ........................................................ 58 
 
 
APPENDIX TABLES 
 Table A1. 1 Selected economic indicators, 2006-12 ............................................................... 64
 
Table A1. 2 Major exports and im ports by HS 2- digit, 2006-12  ............................................... 66 
 
 Table A3. 1 Tonga's tariff summa ry, 2013  ........................................................................... 68
 
Table A3. 2 Goods subject to excise tax in Tonga (as per August  2013) ................................... 70 
 
 
Table A4. 1 Trade of major ag ricultural prod ucts, 2000-10 ..................................................... 74 
Table A4. 2 Exports in fi sheries prod ucts, 2000-12 ................................................................ 75 
Table A4. 3 Vessels and tonnage of goods through Tonga's sea ports, 2007-11 ......................... 76 
 
 WT/TPR/S/291/Rev.1 • Tonga 
 
- 6 - 
 
  SUMMARY 
1. An archipelago in the South Pacific, the Kingdom of Tonga has approximately 
100,000 inhabitants with roughly an equal numb er of Tongans living abroad, mainly in 
New Zealand, Australia, and the United States. With a per capita income of US$4,500, Tonga is 
classified as a middle-income developing country. Remittances from expatriates provide a major 
boost to the local economy, and explain why mercha ndise imports outstrip exports by a factor of 
at least 10:1 in any given year. More than 50% of Tonga's imports consist of fuel (from Singapore) 
and food (mainly from New Zealand and Fiji). Tonga's principal export markets, essentially for a 
limited range of primary agricultural (mainly squash, root crops, coconuts) and marine products, are found in the Pacific Rim. The services trade is much more balanced due to tourism receipts.  
2. Tonga embarked upon political reforms in the aftermath of civil unrest in 2006. In 2010, for 
the first time, the people elected the majority of the members of Tonga's Legislative Assembly. 
Some reshuffling has taken place since the new Cabinet was presented in February 2011. The Ministry of Commerce, Tourism and Labour remained responsible for foreign trade policy matters 
until mid-2012, when the trade portfolio was transferred to the Ministry of Foreign Affairs without 
a corresponding transfer of staff. The "old" trade ministry is still in charge of trade-related matters such as business licensing, foreign investment, intellectual property protection, import licensing, 
export promotion, consumer protection, and price controls.  
3. This is Tonga's first Trade Policy Review. Tonga acceded to the WTO in July 2007 with short 
transition periods to implement the WTO agreemen ts on customs valuation and TRIPS, and some 
reductions in tariffs. Tonga bound all its tariff lines, and no final bound rate exceeds 20%. On the 
other hand, as Tonga was aiming at a flat-rate (15%) tariff structure, it did not join any of the 
sectoral initiatives and does not participate in the Information Technology Agreement or the Agreement on Trade in Civil Aircraft. Tonga undertook specific commitments under the GATS in 90 
(of around 160) services subsectors. Since accession, Tonga has submitted 17 notifications 
relevant to its WTO commitments, covering agricultural support, business licensing procedures, trade remedies, and intellectual property legislation. Tonga's intellectual property legislation was 
reviewed in the WTO Council for TRIPS in 2009.  
4. Although some changes have occurred in Tonga's tariffs and trade measures since 2007, the 
system has overall been quite stable. Tonga's present customs tariff has six tariff bands. Thus, while the intended single-rate tariff did not materialize as the new customs tariff entered into force 
on 1 January 2008, 60% of the tariff lines current ly face an import duty of 15% and all other 
imports enter at rates ranging from zero to 20%. The simple average tariff is 11.5% at present, well below the average final bound rate of 17.6%. Tonga's migration from HS2007 to the HS2012 
nomenclature is almost completed. In this context, the authorities have acknowledged that the 
applied tariff will need to be corrected on 22 ta riff lines where the current applied rate (20%) 
exceed the bound rate (15%).  
5. Tonga does not regulate market access through tariff rate quotas, and provides no 
preferential tariffs to any trading partner. The tran saction value is utilized in approximately 90% of 
all customs valuation cases; re-determinations are frequently due to non-documented consignments. Most goods can be traded without any kind of restriction. Although it is difficult to 
establish an exhaustive inventory of non-tariff measures applied by Tonga, trade restrictions 
appear to be motivated by the need to protect human, animal or plant life or health; public morals; national security; cultural heritage; the conservation of exhaustible natural resources; and 
to uphold intellectual property rights. Tonga does not levy export taxes on any goods.  
6. Tonga derives an increasing share of government revenue from excise taxes and a 
broad-based consumption tax. Excise taxes are collected on alcoholic beverages, tobacco, 
petroleum products and, since August 2013, also on certain animal fats and sweetened soft drinks 
in an effort to discourage consumption of "unhealthy" food. The consumption tax is levied at a single rate of 15% with exemptions for some public, medical, and financial services, and a zero rate for electricity, certain live animals, and various agricultural inputs. In 2012/13, the 
Government raised almost T$55 million in revenue from the consumption tax (on imports and 
domestic production), compared with nearly T $30 million from excise taxes, and T$14.7 million 
from import duties.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 7 - 
 
  7. Inflows of foreign direct investment vary, and have averaged around T$20 million annually 
in recent years. Tonga's investment regime is based on the Foreign Investment Act 2002, the Foreign Investment Implementing Regulations 2006, the Business Licences Act 2002, and the Business Licence Regulations. An enterprise incorpor ated in Tonga is considered Tongan as long as 
the foreign partner does not control more than 25% of the investment or enterprise voting shares. 
The foreign investment regulations list certain activities that are prohibited for domestic and foreign investors alike, or reserved for Tongan investors. The foreign investment regulations, 
including the reserved list, are currently under review. In 2011, Tongan waters were re-opened to 
foreign tuna-fishing vessels to revive the fishery industry. The business licence regulations were streamlined in 2012, allowing a single licence to suffice for individuals and enterprises engaged in more than one business activity, easier filing, faster processing, and reduced fees, particularly for 
electronic registrations.  
8. Government support to agriculture and industrial sectors in the form of direct payments, 
grants, and credit facilities is very limited. In  2012, a T$1 million Agricultural Export Marketing 
Fund was established to provide short-term concessional loans to exporters of agricultural 
products. In terms of revenue forgone, customs duty  and tax exemptions play a significant role. In 
the past, tariff and tax exemptions were accorded to imports of capital goods, materials, and 
components under the Industries Development Incentives (IDI) Act 1978. The Act was repealed in 
2007. However, Tonga's customs tariff stipulates tari ff exemptions for certain uses or users, e.g. 
for manufacturers of beer and other alcoholic  beverages. Some 40 items of materials and 
equipment for use in the fisheries sector were added to the exemption list in June 2013. Upon 
application, investors may also be granted exemptions from excise tax or consumption tax on 
investment goods. Electricity generation, air tran sport, domestic shipping, and commercial fishing 
are assisted through fuel concessions. According to the authorities, customs exemptions totalled 
T$23.9 million in 2010/11, and other tax exemptions amounted to T$6.7 million. Domestic 
production of beer, certain spirits, and tobacco products also benefits from an excise tax regime that differentiates between imported and locally made goods.  
9. The Tongan economy, one of the smallest  among WTO Members (with a GDP of about 
US$500 million), is based on agriculture, fisheries, a small mainly domestically oriented manufacturing sector, tourism and other servic es. State-owned enterprises are present in a 
number of sectors, including telecoms, utilities , transport, and banking. Banks and foreign 
exchange dealers are supervised by the central bank (National Reserve Bank of Tonga), but the 
insurance sector and other financial services suppliers are not regulated by any authority. Similarly, Tonga has yet to establish an independent regulator in the telecoms sector. Overall, 
Tonga is faced with a backlog of reforms to modernize and streamline its legal and regulatory 
frameworks, including in the area of agriculture and related SPS measures, air and maritime transport, and telecommunications.  
10. Tonga is a member of the Pacific Islands Forum, and participates in initiatives to expand 
trade in the region under the South Pacific Regi onal Trade and Economic Cooperation Agreement 
(SPARTECA), the Pacific Island Countries Trade Agreement (PICTA), the Pacific Agreement on 
Closer Economic Relations (PACER), "PACER Plus", as well as with non-Forum countries. 
Negotiations to conclude an Economic Partne rship Agreement (EPA) between the EU and the 
Pacific ACP group began in 2004. However, although progress has been made in the various negotiations, and ambitions have been raised, the original deadlines have been missed and no new 
agreement has been concluded so far. Preferential trading under PICTA has not yet begun for 
Tonga, and only the non-reciprocal SPARTECA ap pears to provide tangible tariff preferences to 
Tongan exports (to New Zealand and Australia) at present. Although exports from Tonga may be 
eligible under the GSP schemes of the EU, the United States, and Japan, these preferences have 
not been widely used. The WTO framework for rules and MFN tariffs thus continues to provide the basic parameters for Tonga's trade and economic policies.  
 WT/TPR/S/291/Rev.1 • Tonga 
 
- 8 - 
 
  1  ECONOMIC ENVIRONMENT 
1.1  Main features 1.1.  The Kingdom of Tonga is an archipelago in the South Pacific comprising 172 islands, of which 
36 are inhabited. The total land area is 749 km
2, only slightly more than the size of Singapore. 
About three quarters of Tonga's small population  (around 100,000) live on the main island of 
Tongatapu, where the capital of Nuku'alofa is located.1 Tonga is vulnerable to natural disasters, 
particularly cyclones and occasionally drought and tsunamis. 
1.2.  The Tongan economy is very small, with  a GDP of less than US$500 million (Table A1.1). 
Nonetheless, with a per-capita income of  about US$4,500 Tonga ranks among the lower 
middle-income countries. The main reason for such relatively high incomes among the Pacific islands is remittances from Tongan expatriates. The authorities estimate that the Tongan 
population is roughly matched by another 100,000 Tongans living abroad, mainly in New Zealand, 
Australia and the United States (Hawaii). The emigra tion of Tongans is reflected in a relatively low 
population growth rate (0.4% p.a. since 2006). It  has also contributed to a shortage of skilled 
labour in some sectors, and low productivity growth.  
1.3.  One of Tonga's main features is its remoteness from international markets. Its main trading 
partners, scattered around the Pacific Rim, are separated by thousands of kilometres of open seas, 
and there is little trade with the neighbouring Pacific islands of Fiji and Samoa. Tonga's 
remoteness, as well as the wide dispersion of the islands, translates into high costs for imports and a lack of competitiveness, which explains in part why Tonga exports so little. On the other hand, Tonga is highly dependent on imports, notably fuel and food, with consequent vulnerability to 
international price spikes. Customs duties and other import taxes are a significant source of 
government revenue (Chart 1.1).  
1.2  Recent Economic Developments 
1.4.  The Tongan economy has been hit by the global  economic crisis, as well as riots in Nuku'alofa 
in November 2006, in which a large part of th e central business district was destroyed. GPD 
growth declined sharply in 2006/07, but subsequent reconstruction led to a modest recovery 
(Table A1.1). The past two years (fiscal years 2011/12-2012/13) are characterized by virtual 
stagnation. The global economic crisis affected Tonga particularly through a decline in tourism and remittances, although measurement issues cloud the picture.
2 Nevertheless, remittances remain 
one of the main cushions for sustaining private consumption and financing construction and 
maintenance, including of churches.  
1.5.  The agriculture sector is important in term s of market production (about 6.5% of GDP in 
2011/12) and own consumption (about 7.5% of GDP), as most Tongan families produce some 
food, in particular root crops and pigs. Following several years of relatively weak performance, 
2011/12 was a peak year for the agriculture sect or. Growth has been driven by the export 
performance of the main cash crop - squash pumpki ns (section 1.3). The fisheries sector has been 
in a down-turn since 2004, which is partly of a cyclical nature due to poor tuna fishing conditions, 
partly due to overfishing of some marine resources (particularly "bêche-de-mer"), and partly due to the high cost structure and a loss of competitiveness of the industry, amongst other factors. In 2011, Tongan tuna fisheries were re-opened to foreign vessels, to revive the industry. The 
contribution of manufacturing output to GDP is relatively small (about 6%) and the sector 
continues to decline in importance, while imports increase. The main activity is food processing and beverage production. All fish processing facilities have closed down in Tonga. The services 
economy contributes about 50% to GDP, with tourism playing an important role in supporting 
transport, hotels, commerce, and other services.  
                                               
1 Tonga has three main island groups (Tongatapu , Ha'apai, Vava'u) and two tiny "outer" islands 
(Niuatoputapu and Niuafo'ou), which are spread over approximately 800 km north to south.  
2 The National Reserve Bank of Tonga is in the process of revising its methodology for measuring 
remittances. Therefore, the remittance data shou ld be interpreted with caution (Table A1.1). WT/TPR/S/291/Rev.1 • Tonga 
 
- 9 - 
 
  Chart 1.1 Revenue and grants, 2012/13 
T$ million 
Income & profit tax
29.4
Consumption tax on imports
48.4Budget support
32.0
Project grants
11.8
Other revenue
24.1
Excise duties
28.2 Customs duties
("Trade taxes")
14.7Other consumption tax
5.9
Total revenue and grants:  T$194.5 million
 
Source: Ministry of Finance and National Planning onli ne information. Viewed at: http://www.finance.gov.to/ 
publications/budget-statements. 
1.6.  Tonga has run a fiscal deficit in recent year s (Table A1.1). Government finances are highly 
dependent on project grants and budget support from donors (Chart 1.1). In the context of its WTO accession
3, Tonga carried out a tax reform programme with the objective of shifting part of 
the government revenue collection from trade taxes to internal taxes. The first step was the 
introduction of a consumption tax (15%) on 1 April 2005, which replaced a sales tax (5%), port and services tax (20%), and fuel sales tax.
4 The next step was an overhaul of the customs regime 
with a streamlined tariff structure (section 3.2.2). The modernization of the income tax code 
followed in 20085, and a simplified tax scheme for small businesses is currently under 
consideration.  
1.7.  Some of the Government's budget statements in recent years include estimates of tax 
exemptions (revenue foregone), which enhances fiscal transparency.6 Tax exemptions are 
significant (T$91.2 million in 2012/13), equivalent to about 40% of government expenditures. The exemptions include fuel subsidies (concessions) for electricity generation and transport 
(Table 4.2). The 2013/14 budget contains new ex emptions from customs duties and consumption 
tax for the fisheries industry
7; the value of the subsidies is estimated at T$1.2 million per year.  
1.8.  The exchange rate of the pa'anga (T$) is pegged by the Reserve Bank of Tonga on the basis 
of a weighted basket of currencies comprising the U.S. dollar, the New Zealand dollar, the 
Australian dollar, and the Japanese yen. The NRBT is authorized to vary the value of the pa'anga 
relative to the basket by 5% per month. The re al effective exchange rate of the pa'anga has 
declined from a peak in mid-2011, implyi ng improved export competitiveness.  
1.9.  Given Tonga's high import dependency, th e Reserve Bank is managing foreign exchange 
reserves with a target of at least 3-4 months import cover. Official foreign currency reserves 
increased to T$256.2 million at end-August 2013, eq uivalent to 8.7 months of imports. Under the 
Foreign Exchange Control Regulations (Amendment) Act of 2000 and subsidiary regulations, prior 
                                               
3 Tonga acceded to the WTO on 27 July 2007. 
4 WTO document WT/ACC/ TON/17, paragraph 10. 
5 IMF (2012). 
6 Ministry of Finance and National Planning (2012), p.116.  
7 Consumption Tax Order 2013. Viewed at: http://crownlaw.gov.to/cms/images/LEGISLATION/ 
SUBORDINATE/2013/2013-0006/CustomsDutyAmendmentOrder2013_1.pdf ; 
http://www.tongafish.gov.to/documents/Legislat ions/ORDER/ConsumptionTaxOrder2013(English).pdf . WT/TPR/S/291/Rev.1 • Tonga 
 
- 10 - 
 
  approval is required from the Reserve Bank fo r (i) outward transfers of T$100,000 and above; 
(ii) capital transfers8; and (iii) loans in excess of T$50,000 to any corporate body resident in Tonga 
controlled by non-residents. The Reserve Bank has delegated approval authority to banks and 
authorized "restricted" foreign exchange dealer s approval, for outward transfers of less than 
T$100,000 with supporting documents, and for current transactions of up T$5,000 per month 
without supporting documents (section 4.4.2.2).9 Furthermore, commercial banks are authorized 
to underwrite forward contracts for exporters or importers totalling US$2 million per bank without 
Reserve Bank approval. Efforts are under way to develop a regulatory framework to encourage 
repatriation of export proceeds.  
1.10.  The Reserve Bank's monetary policy has been accommodative, while inflation has remained 
below its benchmark (currently 6-8%). Despite the high level of liquidity in the domestic banking 
system, banks have tightened their lending standards, due to relatively high rates of 
non-performing loans (15% in 2011/12) linked in part to the decline in remittances. As a result of declining bank lending to the private sector, and high interest rate spreads
10, the cost of finance 
has become one of the main business constraints in recent years. Foreign exchange margins are 
also high compared with Fiji or Samoa, which the authorities attribute to the lower volume of foreign exchange in Tonga.  
1.11.  Public sector debt, most of which is foreign debt, has increased substantially in recent 
years, reaching over 40% of GDP in 2012-13. The rise in public debt partly reflects large foreign loans for the reconstruction of Nuku'alofa and roads
11, as well as the construction of a new cruise 
ship terminal in Nuku'alofa, which opened in 2012. The Government adopted a "no new loan 
policy" in 2011 in response to Tonga's external debt vulnerability. 
1.12.  The Government's economic policy agenda is set out in the ninth Tonga Strategic 
Development Framework (2011-14), which recognizes  the importance of a liberal trade policy.12 In 
terms of trade policy objectives, the Government is seeking, inter alia , to conclude the EPA 
negotiations with the EU, join the PACER negotiat ions, and promote intellectual property rights 
(IPR) protection, "ensuring that Tongans benefit from the effective use of IPR particularly through 
increased innovation, investment and trade." A national export policy is to be developed. 
1.3  Developments in Trade 1.13.  With the emigration of Tongans which began to intensify in the 1970s, the merchandise 
trade surplus turned into deficit.
13 Remittances by Tongan expatriates have since helped to finance 
a growing trade deficit. Moreover, goods sent home by them (i.e. remittances in-kind) explain in 
part why merchandise imports outstrip exports more than ten–fold in any recent year. The high inflows of aid also contribute to the trade deficit.  
1.14.  Tonga's merchandise exports are small and undiversified (Chart 1.2). The main export items 
are fish and other marine products, and a few agri cultural products, mainly squash, root crops, 
and coconuts (Table A1.2). In its niche markets for squash (Japan and Korea), Tonga has lost 
some market share, according to the authorities.  The value of merchandise exports has recovered 
somewhat since 2009/10, following a plunge in 2008/09 in the midst of the global financial crisis (Table A1.1). Trade data are compiled by Tonga Customs based on the final destination and country of origin. However, fish caught in Tongan waters but unloaded in foreign ports (an 
increasing trend) is not reported in Tonga's trade statistics. Most Tongan exports are destined for 
countries along the Pacific Rim (Chart 1.3).  
                                               
8 Capital transfers include transfers for purchase of property, migrant transfers, and debt forgiveness; 
acquisition and disposal of non-financial assets such as patents; direct investment, including equity capital; portfolio investment, including equity, debt securities  and financial derivatives;  and other investments, 
including trade credits,  loans, and deposits. 
9 For the NRBT exchange control guidelines and documentary requirements, see 
http://www.reservebank.to/docs/econtrol /EC_POLICY_GUIDELINES_Jun11_final.pdf .  
10 It appears that interest rates are high compared  with those in Australia but not unusually high 
compared with other Pacific island co untries. See Pacific Financial Technical Assistance Centre (PFTAC) (2011). 
11 The loans from the Export-Import Bank of China amount to about 25% of GDP, see IMF (2012). 
12 Tonga Strategic Development Framework (TSDF) 2011–2014. Viewed at: 
http://www.ausaid.gov.au/countries/pacific/tonga/Documents/tonga-strat-dev-frame-2011-2014.pdf , p. 13. 
13 The surplus in the 1970s was earned mainly throug h exports of desiccated coconut and copra during 
a copra boom on the international commodity markets. WT/TPR/S/291/Rev.1 • Tonga 
 
- 11 - 
 
  Chart 1.2 Product composition of merchandise trade, 2012 
Exports
Total:  US$15.6 million Total:  US$199.2 million  Manufactures
45.1%Electrical 
machines
7.5%
Food 
29.0%Fuels
23.7%Other semi-
manufactures  
10.5%
Other consumer 
goods
10.8%Transport equipment
5.7%Agricultural 
raw materials
4.3%
Other
0.1%Manufactures
25.7%Non-electrical 
machinery
6.0%
Chemicals  
4.6%
Food (incl. fish)
67.6%Imports
Mining
2.3%
Other
0.7%
Agricultural raw materials
1.5%
 
Source: UNSD, Comtrade da tabase (SITC, Rev.3). 
Chart 1.3 Merchandise trade by destination and origin, 2012 
New Zealand
26.1%Australia
12.0%
Hong Kong, China
13.0%Japan
12.7%Fiji
4.4%
Chinese Taipei
2.9%Exports
Total:  US$15.6 million Total:  US$199.2 millionKorea, Rep. of
7.5%
Singapore
23.0%Other Asia
3.9%New Zealand
30.0%
China
6.3%Fiji
8.0%
Japan
5.8%United States
12.9%Imports
Other
0.4%
United States
13.4%Other
3.1%Other Asia
5.7%Australia
5.2%
Samoa
3.7%
 
Source: UNSD, Comtrade database. 
1.15.  Over half of Tonga's imports are food an d fuel. Imports from New Zealand, Tonga's main 
trading partner on the import side, include mainly mutton flaps, lard, dairy products, and fruit. 
Most refined petroleum products are shipped from Singapore (Chart 1.3). Goods imported from Fiji 
include, notably, sugar, water, biscuits, furniture, and fish.  
1.16.  Imports and exports of services have been roughly balanced, with tourism contributing most 
to Tonga's trade in services (Chart 1.4).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 12 - 
 
  Chart 1.4 Trade in services, 2011-12 
Personal & cultural 
services
1.1%
Transport
13.9%
Travel
50.6%Government 
services
21.0%
Business services
9.9%Exports
Total:  US$69. 3 million Total:  US$76.3 millionConstruction
3.6%
Construction
1.1%Insurance & pension
2.3%
Telecom., computer
& information
4.9%Other business
22.1%
Travel
19.0%Government 
services
6.6%Personal & cultural 
services
2.0%
Financial services
5.2%
Transport
36.8%Imports
 
Source: Tonga Department of St atistics online information. 
1.4  Outlook 
1.17.  Following a two-year phase of economic stag nation, GDP growth in Tonga is forecast to pick 
up to almost 2% in 2013/14, on the expectation of recovering remittances and tourism.14 As a 
step towards fiscal consolidation, the IMF recommends a freeze on new tax exemptions. Tonga's debt rating was recently upgraded from high-risk to medium-risk by the IMF/World Bank. Over the 
long-term, the IMF sees a potential for Tonga to escape a "low development trap" based on 
labour-intensive industries (agriculture, fisheries, niche tourism), and a well-educated, English-speaking population. This will require further structural reforms, in particular in the area of 
business regulation, to encourage private investment. 
                                               
14 IMF News, "Kingdom of Tonga: Concluding Statement of the 2013 Article IV Consultation". Viewed at: 
http://www.imf.org/external/np/ms/2013/032513.htm . WT/TPR/S/291/Rev.1 • Tonga 
 
- 13 - 
 
  2  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1  General framework 2.1.  Tonga is a constitutional monarchy, at present headed by His Majesty the King Taufa'ahau 
Tupou VI. Tonga's Constitution, enacted in No vember 1875, has been subject to various 
amendments. The most comprehensive revision of the Constitution occurred in 2010.  
2.2.  Legislative powers are exercised by the Legislative Assembly, which includes 
17 representatives elected by the people, and 9 no bles elected by Tongan nobles. Elections are 
ordinarily held every four years.
1 The total number of representatives in the Legislative Assembly 
may vary between 26 and 30, as all members of th e Cabinet are also members of the Legislative 
Assembly.2 The Assembly is the only organ empowered to adopt laws (Clause 56 of the 
Constitution). Bills read and voted for by a majority of the representatives three times are 
presented to the King for sanction. Acts enter into force upon receiving royal assent, unless 
otherwise indicated.  
2.3.  Judicial power is exercised by the Magistra tes Court, the Supreme Court, the Court of Appeal, 
and the Land Court. Judges are appointed by His Ma jesty in Council. Tonga's judicial system does 
not provide for specialized administrative or commercial courts. Currently, the Court of Appeal, composed of three judges including the Chief Justice, is the highest court. The lowest court, the 
Magistrates Court, has the jurisdiction to hear criminal cases in which the maximum punishment 
does not exceed three years imprisonment or a fine of T$10,000. The Land Court adjudicates land-related cases, including cases concerning hereditary estate taxes and town allotment mortgages.
3  
2.4.  Executive authority is vested in the Cabinet, consisting of the Prime Minister elected by the 
Legislative Assembly and Ministers nominated by the Prime Minister and appointed by the King. 
The King appoints Governors to the islands of Ha'apai and Vava'u on the advice of the Prime 
Minister. Without power to enact laws themselves, the Governors are responsible for the 
implementation of laws within their district. 
2.5.  In the present Government, the Prime Minister  is also Minister for Foreign Affairs and Trade, 
and the Deputy Prime Minister is concurrently Mi nister for Infrastructure. Eleven other Ministers 
hold individual portfolios.4 The Ministry of Commerce, Tourism and Labour, which was responsible 
for foreign trade policy matters until 1 July 2012, continues to be in charge of Tonga's business licensing regime, foreign investment policy, consumer protection, price regulation and control, and 
technical work on trade matters, including import licensing and intellectual property. Import 
regulation for agricultural products, quarantine, food security and SPS matters, fisheries regulatory policy, etc. are under the Ministry of Agricultur e, Food, Forests and Fisheries. The Tonga Customs 
Service is part of the Ministry of Revenue and Customs.
5 Taxation policy for "unhealthy" goods 
such as alcohol is the responsibility of the Ministry of Health.6 The Ministry of Finance and National 
Planning develops Tonga's fiscal policy while monitoring the state of Tonga's economy and the 
fiscal balance. It is also in charge of public procurement policies. Privatization and supervision of 
                                               
1 Clause 38 of the Constitutions allows the King to convoke the Legislative Assembly at any time, 
dissolve it "at his pleasure", and "command" that new representatives of the nobles and the people be elected to enter the Assembly.  
2 Cabinet Ministers are in general chosen among the elected representatives, and they continue to 
represent their electoral constituencies in the Legislat ive Assembly during their appointment as Minister. The 
Electoral Boundaries Regulations 2010 establishes 17 electoral constituencies for the election of 
representatives of the people. Clause 51(2)(a) of the Constitution authorizes the Prime Minister to nominate up to 4 persons that are not elected representatives, provided that the Prime Minister and the Cabinet Ministers together amount to a number that is less than half the number of elected members of the Legislative Assembly, excluding the Speaker.  
3 The King appoints a Privy Council to provide him with  advice. Cases heard in the Land Court relating to 
the determination of hereditary estates and titles may be appealed to the King in Privy Council. The judgement of the King in Privy Council is final.  
4 The present Cabinet is a result of the general el ections in November 2010. Some reshuffling has taken 
place since the Cabinet was announced in early 2011. The portfolio stru cture detailed here has been in place 
since February 2013.  
5 The current Minister for Revenue an d Customs is also Minister for Poli ce, Fire Services and Prisons.  
6 On this issue, the Ministry le ads a joint working group that includes the Ministry of Revenue and 
Customs; Ministry of Commerce, Tourism and Labour; an d the Ministry of Finance and National Planning.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 14 - 
 
  remaining state ownership is effected by the Ministry of Public Enterprises. Tonga's policies with 
respect to maritime, aviation, and land transport are formulated and implemented by the Department of Transport within the Ministry for Infrastructure. The Ministry of Information and Communications, which is an integral part of the Prime Minister's Office, is the regulator of 
communications and telecommunications services. Th e Trade Coordination Committee, set up to 
prepare Tonga's accession to the WTO, no longer exists.
7  
2.6.  The functions of the central bank, i.e. th e National Reserve Bank of Tonga (NRBT), include 
advising the Ministry of Finance and National Planning on banking and monetary matters. The 
NRBT is also responsible for the licensing and supervision of financial institutions.  
2.7.  The private sector may interact with government agencies and influence the legislative 
process through associations such as the Tonga Chamber of Commerce and Industry Inc. (TCCI), 
the Tonga Small Business Association, the Tonga Law Society, and the Tonga Society of 
Accountants. A National Economic Development Committee (NEDC), established to support and engage with the private sector, has evolved into 5 national growth committees (agriculture, 
fisheries, manufactures, construction, commerce, and tourism) administered by the Ministry of 
Finance and National Planning.  
2.8.  Administrative decisions may be reviewed in the first instance by the Supreme Court. Its 
decisions may be appealed to the Court of Appeal provided that the appeal has been permitted by 
the first instance judge, it is lodged within 42 days from the date of judgement, and the grounds 
for appeal are laid down clearly. Administrative action relating to matters subject to WTO provisions, such as customs classification and valuat ion, tariff application, licensing, TBT, SPS, and 
TRIPS issues, may be brought before the Commissioner for Public Relations pursuant to the 
Commissioner for Public Relations Act 2001. The Commissioner is appointed for five years by His Majesty in Council. The Commissioner and his office is independent from the Executive. On the 
basis of complaints or on his own initiative, the Commissioner may investigate any administrative 
decision or recommendation, and any administrative act done or omitted by any department or organization to which the Act applies. The Commissioner, who may only formulate 
recommendations, addresses them to the relevant  Government bodies. His recommendations may 
be appealed to the Supreme Court. If a reco mmendation has not been acted upon within a 
reasonable period of time, the Commissioner may transmit a copy of the recommendation to the Prime Minister.  
2.9.  Tonga does not have a procedure for the Legislative Assembly or Government agencies to 
disseminate draft legislation for public comment prior to enactment. Acts, as well as secondary legislation, are available electronically and free of charge from the website of the Office of the 
Attorney General ( http://crownlaw.gov.to/cms/ ) This website contains a complete set of Tongan 
legislation, and is updated regularly. New laws and regulations are published in the Tonga Legal  
Gazette . Editions of the gazette are available electronically, but at present the website 
(http://crownlaw.gov.to/cms/index.p hp/gazettes/gazette-by-year.html ) does not include editions 
issued prior to 2011.  
2.2  Policy objectives 2.10.  Tonga is dependent on trade to meet the needs for a wide range of modern consumer and 
capital goods. During the WTO accession process, the Government of Tonga reduced tariffs as part 
of economic reforms to reduce the cost of living , particularly for the poor, improve the investment 
climate, and generally lower the cost of doing bu siness. Among the objectives listed in the Tonga 
Strategic Development Framework (TSDF) 2011-2 014, Tonga is seeking a dynamic public and 
private sector partnership as the en gine of growth, to be achieved, inter alia,  through closer 
private-sector involvement in policy formulation and implementation, and through the promotion 
of regional and international trade.  
2.11.  Tonga joined the WTO and the multilateral trading system it espouses to enable trade to be 
conducted in a fair, secure, transparent, and predictable rules-based environment. Tonga is committed to trade liberalization at a pace sustainable for a small and vulnerable economy. At the 
WTO, Tonga considers itself a recently acceded Member.  
                                               
7 The re-establishment of a trade coordination body  is under consideration. In the meantime, a core 
group within the Government me ets informally as required. WT/TPR/S/291/Rev.1 • Tonga 
 
- 15 - 
 
  2.12.  In the Doha Round, Tonga has expressed an interest in the negotiations to impose 
disciplines on fisheries subsidies8 and, together with its African, Caribbean, and Pacific Island 
(ACP) partners, Tonga is a "W52 Sponsor".9 Tonga fully supports the WTO Work Programme on 
Small Economies and would like Members to adopt specific measures to facilitate fuller and more 
meaningful integration of these economies into the multilateral trading system in accordance with 
their level of development.  
2.13.  Regional trade is to be encouraged through the elimination of non-tariff barriers in the short 
term and progressive removal of tariff barriers over  a longer period. While Tonga is pursuing trade 
liberalization domestically, it will also be seekin g to improve the opportunities for Tongans to work 
overseas, e.g. in key economic partners' temporary worker schemes.  
2.14.  Evolving from the TSDF, Tonga's National Ex port Strategy was revised in 2011 to facilitate 
the export of goods. The intention is to administer trade in services under the Tonga Investment 
Promotion Strategy and the Labour Export Strategy.  
2.3  Trade agreements and arrangements 
2.3.1  WTO 
2.15.  Tonga became the WTO's 151st member on 27 July 2007. Tonga accepted to comply with 
key WTO Agreements such as the Agreements on the Application of Sanitary and Phytosanitary 
Measures, Import Licensing Procedures, and Trade-Related Investment Measures (TRIMs) from the 
date of accession without recourse to any transitional period. Transitional arrangements were agreed for the implementation of the Agreement on  the Implementation of Article VII of the GATT 
1994 (customs valuation) until 1 January 2008, and for the Agreement on Trade-Related Aspects 
of Intellectual Property Rights (until 30 June 20 08). Tonga did not make commitments to accede 
to the plurilateral WTO Agreements on Governme nt Procurement or Trade in Civil Aircraft.  
2.16.  As a result of market access negotiations, Tonga undertook specific commitments under the 
GATS in 90 services subsectors (section 4.4.2) . As Tonga was advancing the introduction of a 
single-rate tariff applied across-the-board, it did not subscribe to any of the WTO sectoral zero-for-zero initiatives, and Tonga does not participate in the Information Technology Agreement. 
Further details of Tonga's tariff commitments fo r trade in goods are presented in Chapter 3.  
2.17.  Tonga has submitted 17 notifications relevant to its WTO commitments to the Secretariat 
(Table 2.1). It notified its legislation on intellectual property in June 2009, and the laws and regulations were reviewed in the WTO Council for TRIPS in October 2009. In other notifications, 
Tonga has provided information on its business licensing regime and on "green box" support to 
agriculture. Tonga has also informed WTO Members that it has no legislation or institutional framework for the investigation and imposition of anti-dumping or countervailing measures on 
trade.  
2.18.  As a WTO Member without a Geneva mission, Tonga's WTO participation is handled directly 
by the Ministry of Foreign Affairs and Trade in  Nuku'alofa, by the Embassy of the Kingdom of 
Tonga in London, or with assistance from the Pacific Islands Forum Representative Office to the 
WTO.  
2.19.  To date, Tonga has not been involved in any trade disputes under the WTO Dispute 
Settlement mechanism, as a complainant, respondent, or a third party.  
 
                                               
8 WTO document TN/RL/W/226/Rev.5, 22 September 2008.  
9 Certain Members have put forward a proposal for "m odalities" in the negotiations on geographical 
indications and the disclosure of the origin of genetic resources and traditional knowledge used in inventions. The proposal is contained in document TN/C/W/52, 19 July 2008. WT/TPR/S/291/Rev.1 • Tonga 
 
- 16 - 
 
  Table 2.1 Tonga's WTO notifications, 2007-May 2013 
Agreement 
provision Subject Year of coverage WTO document and date  
 
Agreement on Agriculture 
Article 18.2 Domestic support 2007/08, 2008/09 
 
2009/10 G/AG/N/TON/2, 19/07/11 
G/AG/N/TON/2/Rev.2, 11/01/12  
G/AG/N/TON/3, 12/01/12 
Articles 10 
and 18.2 Export subsidies 2007/08, 2008/09 G/AG/N/TON/1, 27/06/11 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping) 
Article 16.5 Competent authority (none)  G/ADP/N/193/TON, 13/10/11  
Article 18.5 Legislation (none)  G/ADP/N/1/TON/1, 10/03/10  
Agreement on Import Licensing Procedures 
Articles 1.4(a) 
 and 8.2(b) Legislation (business 
licensing)  G/LIC/N/1/TON/1, 06/04/11 
Article 7.3 Replies to Questionnaire  G/LIC/N/3/TON/1, 05/04/11 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 Specific subsidies (none)  G/SCM/N/220/TON, 17/10/11 
Article 32.6 Legislation (none)  G/SCM/N/1/TON/1, 13/10/11 
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) 
Article 63.2 Note on IP protection 
Legislation: 
Copyright Act 2002 
Industrial Property Act 1994 
- 1999 amendment 
- 2002 amendment 
Protection of Layout-Designs 
(Topographies) of Integrated 
Circuits Act 
Protection of Geographical 
Indications Act 
Protection against Unfair 
Competition Act   IP/N/1/TON/1, 02/06/09 
 
IP/N/1/TON/C/1, 08/06/09 
IP/N/1/TON/I/1, 08/06/09 
IP/N/1/TON/I/1/Add.1, 08/06/09 
IP/N/1/TON/I/1/Add.2, 08/06/09 
IP/N/1/TON/L/1, 08/06/09 
 
 
IP/N/1/TON/G/1, 05/06/09 
 
IP/N/1/TON/O/1, 05/06/09 
 
Source: WTO Secretariat. 
2.3.2  Regional trade agreements 
2.20.  Tonga is a member of the Pacific Islands Forum (PIF).10 The Pacific Plan for Strengthening 
Regional Cooperation and Integration, to be im plemented over a period of ten years from 2005, 
envisages increasing sustainable regional trade and investment through the lowering of trade barriers, including physical and technical measures.
11 Initiatives to be implemented include 
expansion of trade in goods under the South Pacific Regional Trade and Economic Cooperation 
Agreement (SPARTECA)12, the Pacific Island Countries Trade Agreement (PICTA), the Pacific 
Agreement on Closer Economic Relations (PACER), and with non-Forum countries.13  
2.21.  PICTA, signed in August 2001, aims at establishing a free-trade area between the 14 Pacific 
island states.14 The Agreement includes schedules for the progressive elimination of tariffs on 
intra-regional trade.15 However, PICTA remains only partially operational as many of the 
participants have yet to pass the necessary legislation for its functioning.16 Tonga has submitted 
                                               
10 PIF members are 14 Pacific island states, Austra lia, and New Zealand. New Caledonia and French 
Polynesia hold associate membership, while Tokelau, Wallis and Futuna are observers. Timor-Leste has been a 
special observer to the Forum since 2002. The institution was known as the South Pacific Forum prior to October 2000. The Forum is serviced by the Pacific Islands Forum Secretariat located in Suva, Fiji.  
11 The Pacific Plan was endorsed by PIF member s in October 2005 and revised in October 2006.  
12 Tonga joined SPARTECA in July 1980. 
13 WTO (2009).  
14 The 14 participants are: Cook Is lands, Fiji, Kiribati, Marshall Is lands, the Federated States of 
Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samo a, Solomon Islands, Tonga, Tuvalu, and Vanuatu.  
15 For details, see WTO (2009). 
16 According to the Pacific Island Forum Secretariat,  seven members (Cook Islands, Fiji, Niue, Samoa, 
Solomon Islands, Tuvalu, and Vanuatu) have implem ented the required domestic arrangements and WT/TPR/S/291/Rev.1 • Tonga 
 
- 17 - 
 
  its timetables for the reduction and elimination of tariffs and notified a negative list ("excepted 
imports") that includes bovine meat, eggs, ice cream, paints and varnishes, barbed wire, and toilet paper.
17 Nevertheless, Tonga has yet to trade un der PICTA. The PICTA timetable for tariff 
reductions remains to be incorporated into domestic legislation. According to the authorities, 
technical issues are still under consideration, notably the implications on revenue.  
2.22.  The integration of trade in services into PICTA was endorsed in principle in 2001. 
Liberalization is designed to be gradual and fl exible, with transitional periods agreed as 
appropriate. After seven rounds of negotiations, the PICTA Trade in Services (TIS) Protocol was 
endorsed and opened for signature on 28 August 2012.18 Tonga has signed the Protocol, but has 
yet to ratify it. According to the authorities, ratification remains a priority as Tonga sees significant benefits in increased services trade.  
2.23.  In August 2001, the Pacific island states, Australia, and New Zealand signed PACER, a 
framework agreement for deeper, stepwise liberalization of trade and investment among the Pacific island states. PACER entered into force in August 2002. Within the PACER framework, 
PICTA was designed as a vehicle for trade liberalization amongst the Pacific island states as a 
precursor to further liberalization between them and Australia/New Zealand. Though not a free-trade agreement, PACER includes a "trigger clause" to provide for WTO-consistent 
negotiations to establish a reciprocal free-trade arrangement (customs union or single FTA) that 
would include Australia and New Zealand within eight years from the entry into force of PICTA (i.e. in 2011), or earlier.
19 In August 2009, a Pacific Islands Forum Meeting agreed to commence 
negotiations on a "PACER Plus" agreement, a wider free-trade and economic-development 
agreement than initially foreseen under PACER, between Australia, New Zealand, and the 
14 Pacific island states. Although Pacific Forum Trade Ministers agreed on the negotiating framework and timelines in October 2009, the negotiations are still at a relatively early stage.
20 
PACER Plus included funding of an Office of the Chief Trade Adviser (OCTA) to assist the Pacific 
island states to prepare for, and participate in, the negotiations.21  
2.24.  As part of the group of African, Caribbean, and Pacific (ACP) states, Tonga has a 
long-standing relationship with the European Union stemming from the Lomé Convention and the 
Cotonou Agreement, which entered into force provisionally to replace the Lomé Convention in March 2000.
22 Under the Cotonou Agreement, the ACP Group and the European Communities (EC) 
agreed to conclude new WTO-compatible trading arrangements in the form of Economic 
Partnership Agreements (EPAs). The EPAs were to be concluded before the end of 2007, when the 
EC's WTO waiver for the Cotonou Agreement expired. The EPAs aim at progressive removal of trade barriers and enhanced cooperation in all areas relevant to trade between the EU and ACP 
states.  
2.25.  At the ACP Group level, EPA negotiations were launched in September 2002, while the 
Pacific ACP-EC EPA negotiations began in September 2004, setting out a joint roadmap for the 
negotiations. Since 1 January 2008, Papua New Guin ea and Fiji have been able to maintain 
preferential access for exports to the EU under an Interim EPA.
23 The interim agreement remains 
open to any other interested Pacific state willing to sign it. The agreement provides for duty and 
quota-free exports to the EU in return for assymetr ic and gradual opening of markets to EU goods. 
The agreement contains improved rules of origin for processed fish exports to the EU; addresses 
TBT and SPS matters to assist exporters to adhere to EU standards; has provisions on customs 
                                                                                                                                               
announced their readiness to trade und er the provisions of PICTA, thus  benefiting from PICTA preferences 
since 1 January 2007. Due to the delays, the timetable for tariff elimination is now extended until 2021.  
17 Pacific Islands Forum Secretariat online information. Viewed at: 
http://www.forumsec.org/pages.cfm/economic-g overnance/regional-trade-1/picta/tonga.html .  
18 Samoa was the first country to ratify the services chapter of PICTA in May 2013.  
19 Article 5 of PACER would trigger Pacific Island Fo rum (PIF) countries to engage in FTA negotiations 
with Australia and New Zealand, either individually or jointly, if any PIF commenced FTA negotiations with any other OECD country.  
20 According to the authorities, the negotiations on TBT, SPS, and rules of origin are at an advanced 
stage, while work continues on labour  mobility and development assistance. 
21 Based in Vanuatu, OCTA began operations in March 2010.  
22 The 14 Pacific island states and Timor-Leste acceded to the Cotonou Agreement in May 2003. 
23 The interim EPA was initialled in November 2007 and implemented provisionally by the EU from 
1 January 2008. The European Parliament ratified the interim EPA in January 2011 and Papua New Guinea in 
May 2011. Fiji is apparently not yet implementing the agreement, and has temporary access to the EU market under the Market Access Regulation (Regulation No. 1528/2007).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 18 - 
 
  administration and trade facilitation; and regulate s the imposition of possible safeguard measures 
on imports from the EU. The interim agreement does not cover trade in services.  
2.26.  According to the European Commission, the negotiations to conclude a comprehensive EPA 
with the 14 Pacific island states are on-going.24 The agreement is intended to cover development 
cooperation; trade in goods and services; trade-related issues such as food safety, TBT, 
agriculture, and fisheries; sustainable development; and competition. The authorities expect the EPA to provide improved market access for Tonga's primary agricultural and fish products and 
possibly higher volumes of development assistance.  
2.3.3  Preferential agreements and arrangements 2.27.  SPARTECA, which Tonga joined in July 1980, governs trade in goods between the 14 Pacific 
island states, Australia, and New Zealand. SP ARTECA allows duty-free and unrestricted or 
conditional access into Australia and New Zealand for virtually all products originating in the Pacific 
island states. As a non-reciprocal preferential trade agreement, SPARTECA does not oblige Tonga to grant any preferential access to goods of Australian or New Zealand origin.  
2.28.  The rules of origin under SPARTECA require manufactured goods originating in the Pacific 
islands to incorporate a minimum of 50% local value added to benefit from duty-free, quota-free access into Australia and New Zealand. Improved rules of origin, a concern to the Pacific island 
states, may be an issue for the PACER Plus negotiations. Some Pacific island states are also 
interested in improved conditions for labour mobility into Australia and New Zealand. Part 3 of the current PACER, which provides for trade facilitation and economic and technical assistance, may be moved into PACER Plus.  
2.29.  For Tonga, preferential access to the EU market is granted under the EU's GSP scheme in 
the absence of an EPA. Unlike some of its Pacific partners, Tonga does not qualify for duty-free quota-free access under the EU's "Everything But Arms" initiative, as Tonga is not an LDC. 
Moreover, the World Bank classified Tonga as an upper middle-income country in 2013. Should 
this classification be upheld in 2014 and 2015, Tonga stands to lose its EU GSP preferences 
following a one-year transition period, i.e. as from 1 January 2017.  
2.30.  In the United States, Tonga belongs to a group of 135 designated beneficiary developing 
countries and territories that may obtain duty-free GSP treatment for 3,448 products. According to U.S. data, GSP imports from Tonga amounted to US$164,000 in 2006 (total imports US$7.3 million). Products eligible for duty-free en try, but not claimed as such, included shipments 
of palmitic and stearic acid, and sweet potatoes.
25  
2.31.  Exports from Tonga are also eligible for GSP treatment in Japan, but all Tongan goods 
currently enter Japan at the MFN tariff rate.  
2.3.4  Bilateral agreements 
2.32.  An agreement with Fiji, signed in 1995, is Tonga's only bilateral trade agreement. The 
non-reciprocal agreement was drafted shortly after a bilateral quarantine protocol had been 
established for 20 agricultural items exported from Tonga to Fiji.26 Matters of mutual interest are 
discussed in a joint committee that holds bi-annual meetings.  
                                               
24 European Commission online information. Viewed at: 
http://ec.europa.eu/trade/issues/bilateral/regions/acp/regneg_en.html . Tonga's Minister of Commerce, 
Tourism and Labour is lead spokesperson for th e Pacific ACP countries in these negotiations.  
25 USTR online information, "Use of  U.S. Trade Preferences by Pacific Island Economies", "Pacific Islands 
GSP Briefer" (May 2007). Viewed at: http://www.ustr.gov/sites/default/files/uploads/gsp/asset_upload_file288_14834.pdf .  
26 From 1995 to 1998, Tonga participated in a region al sugar agreement under which Fiji supplied its 
partners agreed quantities of suga r at pre-determined prices. The agreement was administered by the Forum 
Secretariat.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 19 - 
 
  2.3.5  Other agreements and arrangements 
2.33.  Tonga has signed and ratified the Pacific Islands Air Services Agreement (PIASA), which 
entered into force on 13 October 2007. The aim of  PIASA is to gradually integrate the aviation 
services of the Pacific island states in a way that supports sustainable development. A single 
aviation market is meant to bring benefits such as increased access to air routes among the Pacific 
islands, foster alliances and code-sharing among the airlines, and lower costs for airlines and passengers.  
2.34.  As a member of the Pacific Island Forum Fisheries Agency (FFA), Tonga participates in work 
to establish a regional licensing arrangement that would enable Tongan vessels to fish in regional waters. The FFA advises its 17 members about relevant developments in international trade policy and economic cooperation frameworks. The FFA also administers the implementation of a 
Multilateral Treaty on Fisheries Between Certain Governments of the Pacific Island States and the 
Government of the United States of America. The Treaty, concluded in 1987 and renewed twice, 
enables purse seine fishing by U.S. vessels in the waters of the Pacific island participants.  
2.4  Investment regime 
2.35.  The Foreign Investment Act, Act No. 22 of 2002, entered into effect when the implementing 
regulations contained in the Foreign Investment Implementing Regulations 2006 entered into force 
on 2 April 2007.
27 The Act requires a foreign investor to obtain a foreign investment registration 
certificate before applying for a business licence. Th e Act defines a foreign investor as an individual 
who is not a Tongan subject and does not reside in Tonga. Partnerships, joint ventures, and enterprises incorporated in Tonga are considered foreign investors under the Act if the non-Tongan 
partner or owner controls more than 25% of the investment or enterprise voting shares. 
Incorporation of an enterprise is effected by a pplying to the Companies Office of the Kingdom of 
Tonga, an electronic register available to the public round-the-clock. Incorporation is governed by 
the Companies Act 1995 and the Companies Regulations 1999 as amended in 2010.
28 An 
enterprise may be incorporated as a Tongan company or an overseas company. The registration fees are higher for an overseas company. Accordin g to the Companies Regulations, the registration 
fee is T$400 for a Tongan company, under Section 16(1) of the Companies Act, and T$800
29 for an 
overseas company (Section 354(1)). Other fees, such as the registration of changes or the filing of 
annual returns, are also higher for overseas companies. Consumption tax (15%) is added to all fees.  
2.36.  The Business Licences Act 2002 (Schedule 1) lists some prohibited business activities, i.e. 
closed to domestic and foreign investors alike (Chapter 3). Establishment of specific types of businesses also requires the fulfilment of certain conditions (Table 3.1). Beyond that, the foreign 
investment regulations set out a number of activities that are either restricted for foreign investors 
(Table 2.2) or reserved for Tongan investors (Table 2.3).
30 However, as long as the foreign share 
in a venture remains 25% or less, the project will be considered a Tongan investment, also in 
restricted or reserved activities.  
                                               
27 Prior to the entry into force of the Foreign Inve stment Act, Tonga's investment policy was based on 
the 1978 Industrial Development Incentives Act, which provided benefits, primarily in the form of tax 
exemptions, to domestic and foreign investors. The Legislative Assembly passed the Industries Development Incentives (Repeal) Act No. 21 of 2007 on 3 September 2007 and it received Royal Assent on 26 October 2007.  
28 All enterprises registered in Tonga prior to th e introduction of the Companies (Amendment) Act 2009 
were required to re-register. This  was due to factors such as the ne w on-line registration procedure and 
damage to the registry files inflicted by civil unrest in 2006.  
29 The authorities maintain that the higher fees for ov erseas companies reflect additional costs, including 
the screening of foreign directors, the shareholding st ructure, etc.  
30 The foreign investment regulations, including the reserved list, are currently being reviewed. The 
private sector is participating in this review. WT/TPR/S/291/Rev.1 • Tonga 
 
- 20 - 
 
  Table 2.2 Restricted activities 
Business activity Condition 
Commercial fishing comprising: 
- Tuna fishing 
- Bottom fishing in water deeper than 500 m 
- Other deep water fishing not less than 100 m 
- Aquaculture Subject to their respective Resource Management Plan 
(administered by the Department of Fisheries, MAFFF) 
Agricultural supply stor e distributing seeds, 
fertilizers, chemicals Subject to the requirements of the Pesticide Act 2002 
Education facility Subject to requirem ents of the Education Act (Cap. 86) 
Medical or health activity Subject to requirements of the Public Health Act 1992; 
Therapeutic Goods Act 2001; Nursing Act 2001; Medical and 
Dental Practices Act 2001; Pharmacy Act 2001; Health 
Practitioners Review Act 2001  
Source: Foreign Investment Regulations 2006, Schedule 2. 
Table 2.3 Business activities reserved for Tongan investors 
No. Product description 
1 Taxis 
2 Passenger vehicles for hire 
3 Used-motor-vehicle dealers 
4 Retailing activity that consists of the distribution of grocery products (food and household provisions) 
for final consumption 
5 Wholesaling activity 
6 Baking of white loaf bread 
7 Tongan cultural activities including: 
(a) Folk tales, folk poetry, and folk riddles 
(b) Folk songs and instrumental folk music (c) Folk dances and folk plays (d) Production of folk art in particular, drawings, paintings, carvings, sculpt ures, woodwork, jewellery, 
  handicrafts, costumes, and indigenous textile 
8 Raising of chicken for the production of eggs 
9 Security business 
10 Export of green and mature coconuts 
11 Wiring and installation of residential and commercial buildings with capital investment of less than 
T$500,000 
12 Production/farming of: 
(a) root crops (yams, ta ro, sweet potato, cassava) 
(b) squash 
(c) paper mulberry 
(d) pandanus;  
(e) kava 
13 Fishing activities comprising: 
(a) reef fishing (b) inshore fishing within 12 nm (Zone C) in water less than 1,000 metres 
(c) bottom fishing in water depth less than 500 metres 
Source: Foreign Investment Regulations 2006, Schedule 1.  
2.37.  Foreign investment registration certificates are generally valid for the lifetime of the project, 
as long as the business activity commences within one year of the grant of the certificate. 
Applications are addressed to the Secretary at the Ministry of Commerce, Tourism and Labour. A 
certificate may be transferred to another foreign investor provided he/she also satisfies the criteria 
under the Act. Applications for a foreign investment registration certificate are subject to a fee of 
T$100, and amended certificates are issued against a fee of T$15.31  
2.38.  A dissatisfied applicant may appeal to the Minister of Commerce, Tourism and Labour, who 
will appoint an Arbitrator to decide the appeal. A decision by the Secretary to cancel a foreign 
                                               
31 Transfer of a foreign investment registration certific ate is subject to a fee of T$45. The applicable fees 
are set out in Schedule 3 of the Foreign Investment Regulations 2006.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 21 - 
 
  investment registration certificate may be appealed to the Supreme Court, and the decision is 
suspended while the appeal is pending. Tonga ratified the Convention on the Settlement of 
Investment Disputes in 1990. Tonga has concluded one bilateral investment treaty, with the United Kingdom. The treaty entered into force on 22 October 1997. Arbitration under the Foreign 
Investment Act is subject to the provisions of the Arbitration Act 1996 of the United Kingdom. 
2.39.  Under the Land Act
32, the sale of land is prohibited in Tonga. Section 3 of the Act stipulates 
that "all land of the Kingdom is the property of the Crown". However, according to the Constitution 
(Clause 104) the King may "at pleasure grant to the nobles and titular chiefs or matabules one or 
more estates to become their hereditary estates". Thus, certain Tongan individuals are holders of land in the form of hereditary estates, tax allotments, or town allotments. Every estate ("tofia") and allotment ("api") is hereditary according to the prescribed rules of succession. The majority of 
land in Tonga is held in hereditary estates.
33  
2.40.  The Minister of Lands, Environment, Clim ate Change and Natural Resources represents the 
Crown in all matters concerning the land of the Kingdom. He may grant leases or sub-leases and 
permits with the consent of the Cabinet. Consent of His Majesty in Council is required if the 
duration of a lease exceeds 99 years, or for renewals  if the total period of the lease (initial lease 
and subsequent renewal(s)) will surpass 99 years. Most leases are for 50 years (20 years for 
tourism projects). Registered holders of town or  tax allotments may also lease land subject, inter 
alia, to the consent of the Cabinet and provided that the lease does not exceed 20 years.  
2.41.  Tonga has established a 20-acre (8 hectare) industrial estate (Small Industries Center - 
SIC) on the main island Tongatapu, and an 8-acre (3.2 hectare) estate on the Vava'u island. The 
estates provide land for lease and premises for rent on long-term contracts. The Ma'fanga SIC 
opened in 1980, and operates under a long-term lease that will expire in October 2070. Its land has been demarcated into 42 industrial land plots of variable size, 36 have been built and are 
rented out. The Neiafu SIC, which opened its doors in 1990, has a lease that runs until 
August 2077. The entire 8-acre estate has been developed with all necessary supply utilities and demarcated into 16 industrial land plots, 4 of wh ich are currently rented out. Enterprises located 
on the estates have priority access to electricity, telephone, and water connections. Residential 
and work permits are granted to foreign investors and their families subject to normal immigration rules.  
2.42.  In 2013, the World Bank ranked Tonga 62
nd overall among 185 economies on the ease of 
doing business.34 Tonga scored better than its average ranking on elements such as getting 
electricity, starting a business, obtaining construc tion permits, and paying taxes, while falling well 
below its overall score on issues such as "protecting investors", "resolving insolvency", and 
"registering property". Tonga has no formal bankruptcy law.  
2.43.  According to the authoritie s, on average, 32 foreign companies register annually in Tonga. 
Most foreign businesses are engaged in trade and ot her services, excluding retail and wholesale of 
groceries (which are activities reserved for Tong an investors). UNCTAD estimates that inflows of 
foreign direct investment (FDI) into Tonga peaked at US$29 million in 2007, fell sharply in 2008 and 2009, before rising to US$10 million in 2011.
35 The stock of inward FDI stock was estimated at 
US$98 million at end 2011. FDI outflows from Tonga are modest, typically averaging US$1 to 
US$2 million per year.  
2.44.  The Tonga Trade and Investment Board Ac t (Act 19 of 2005) envisaged the formation of a 
Trade and Investment Board to promote, stimulat e, and facilitate the growth and development of 
trade and investment in Tonga. As the establishment of the Board was delayed, mainly due to 
funding concerns, the responsibilities of the Board have been absorbed by the Trade and 
Investment Division within the Ministry of Commerce, Tourism and Labour. The Ministry's Trade 
                                               
32 The Land Act makes it clear that any verbal or do cumentary disposition by a land holder to effect a 
voluntary conveyance or out-and-out sale is null and void (Section 6) and subject to imprisonment not 
exceeding ten years (Section 12).  
33 Schedule I of the Land Act lists the hereditary estate holders and their estates. All other land is Crown 
land. Schedules II and II of the Land Act detail royal es tates and royal family estates, which are set aside from 
the Crown lands.  
34 World Bank (2013). Tonga ranks behind its Pacific island neighbours Samoa (57th) and Fiji (60th), but 
ahead of Vanuatu, Solomon Islands, Marshall Islands, Palau, and Kiribati. 
35 UNCTAD (2012).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 22 - 
 
  and Investment Promotion Unit provides information to domestic and foreign investors, assists 
them in obtaining necessary permits and licences, and provides other services as required.36 The 
development and marketing of tourism is administered by the Tonga Tourism Authority further to the Tonga Tourism Authority Act 2012. 
                                               
36 Ministry of Labour, Commerce and Industries (2009).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 23 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Introduction 3.1.  Tonga negotiated its accession to the WTO as major customs reforms were still under way. 
The agreed tariff bindings and other conditions  were key parameters for the new Customs Act 
No. 5 of 2007. The Act was implemented simu ltaneously with the Customs and Excise 
Management Act No. 4 of 2007, which stipulates basic provisions with respect to customs control, customs procedures and clearance, temporary importation, inter-island and coastal trade, 
warehousing, customs brokers, the powers of customs officers, administrative penalties, appeals, 
etc. More detailed provisions for the collection and management of customs duty and excise tax 
are laid down in the Customs and Excise Management Regulations 2008.  
3.2.  Moving towards paperless customs clearanc e, Tonga's Customs Service introduced a Customs 
Management System (CMS) for electronic processing in 2008.
1 The CMS calculates the amounts 
due in respect of customs duty, excise tax, cons umption tax, quarantine fees, and wharfage for 
the Ports Authority. As individual documents are only to be presented upon request, all commercial 
documentation in relation to import and export transactions, including letters, e-mails, invoices, 
receipts, shipping, airline, and banking documents, are retained by the traders to facilitate post-
clearance audits. Records must be kept for seven years. 
3.3.  Customs duties and other charges may be paid by company cheque, electronically (FPOS), or 
cash (up to T$500). Personal cheques may only be  accepted by prior arrangement. Customs duties 
may be paid in instalments, but all dues must be settled within four months or before the end of the financial year (whichever is earlier).  
3.4.  Tonga's Customs Service comprises approxim ately 55 staff located in the capital Nuku'alofa 
and in the Vava'u island group. The customs service also has mobile staff undertaking random checks at Tonga's seaports, international airports, and on business premises to ensure compliance 
with customs and excise legislation. All containerized goods are given a colour code (red, green, 
yellow) upon arrival, based on risk assessment.
2 All red-marked containers are inspected. 
Preshipment inspection is never used. The Tonga Customs Service processes approximately 
30,000-35,000 customs declarations per year.  
3.2  Measures Directly Affecting Imports  3.2.1  Import procedures and requirements 3.5.  According to Tonga's Business Licence Ac t, any natural or legal person carrying out a 
business activity in the Kingdom must hold a valid business licence.
3 The hawking or selling of fish, 
agricultural produce, or native articles made in Tonga is not defined as a business activity. The business licensing legislation and the licensing procedures were streamlined in 2012. Unlike in the 
past, a single licence now suffices for individuals or enterprises engaged in more than one type of 
business activity. The application should indicate the principal place of business and additional physical locations where activities may be carried out.
4 The licence is of indefinite validity, 
requiring the holder to file a notice of continue d business activity once a year to the Registrar 
(Registry and Intellectual Property Division of the Ministry of Commerce, Tourism and Labour). The establishment of an online registry during 2013 will  allow easier, lower cost filing of applications 
and notices.  
                                               
1 The CMS replaced a system (PC Trade) that was found  to be deficient for cust oms and trade facilitation 
purposes.  
2 A profiling committee is currently reviewing th e criteria used in the colour-code system.  
3 The Business Licences Act 2002 was amended in 2012, and is accompanied by the Business Licences 
Regulations 2012, which repealed the 2007 regulations  (as amended in 2010). Tonga notified the Business Licences Act and the 2007 and 2010 regulations to the WTO Committee on Import Licensing in 2011 (WTO 
document G/LIC/N/1/TON/1, 4 April 2011).  
4 The licence should be displayed in a conspicuous place at the holder's principal place of business, and 
copies of it at any subsidiary location. If the holder  does not carry out his/her business from any specific 
physical location, the licence (valid throughout the Kingdo m) should be kept at the en terprise office address or 
residential address (for individuals).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 24 - 
 
  3.6.  Filing a first-time application for a business licence, the applicant is requested to indicate the 
beneficial owner, the ownership structure (ind ividual, partnership, or corporate), gender 
composition, and the type(s) of intended busi ness (from among 21 identified categories of 
activity). Export/import is one of the listed activities, and thus requires a business licence. 
Importation (or exportation) per se  is not subject to any special requirement, but the distribution 
of certain types of goods or the provision of cert ain services may require additional governmental 
approvals, permits, or inspections prior to commencing business (Table 3.1). Foreign investors 
should have a valid foreign investment registration certificate before applying for a business 
licence.  
Table 3.1 Business activities requiring th e fulfilment of additional conditions 
Activity  Additional requirement 
Liquor sales Liquor licence from the Ministry of Police 
Fish and marine product-related business Fishing licence from the Ministry of Agriculture, Food, Forests, 
and Fisheries 
Restaurant and food-related business Health Certificate 
Distribution Health Certificate 
Technical trades and professions Qualification documents or practicing certificates specific to 
each trade or profession 
Financial institution Letter of approval from the National Reserve Bank of Tonga 
Electrical services Letter of approv al from the Tonga Electric Power Board 
Construction services Letter of approval from the Ministry of Infrastructure 
Taxi services Vehicle registration certificate 
Therapeutic goods outlets Letter of approval from the Ministry of Health 
Flammable goods outlets Letter of approval from the Fire Department 
Services involving the use of gases Letter of approval from the Department of  Environment 
Businesses involving agricultural products 
and/or plants Letter of approval from the Ministry of Agriculture, Food, 
Forests, and Fisheries 
Recycling operators Letter of approval from the Waste Authority 
Source: Business Licences Regulations 2012, Schedule 3 (item 8). 
3.7.  A business licence is issued automatically wi thin three working days provided the application 
is complete and does not involve prohibited goods.5 The applicant should be at least 18 years of 
age with no prior convictions in relation to indictable offences or the failure to pay legally 
recognized debts.6 The fee for a first-time (paper copy) application is T$100 (+15% consumption 
tax); and the fee for filing the annual notice of  continued business activity is T$50 (+tax).7  
3.8.  Business licences are not transferable. A licence holder wishing or needing to amend his/her 
business licence must notify the Registrar of the changes, in writing, within ten working days.8 The 
Registrar is obliged to record changes or amendments to the licences within seven working days of receipt of the notice. The Business Licence Register kept by the Ministry of Commerce, Tourism, 
and Labour is available for inspection by the pu blic. More than 2,500 registrations had been made 
by end-August 2013.  
3.9.  The Registrar may reject or refuse a licence application, or cancel a granted licence, on 
statutory grounds (Sections 5 and 11 of the Act). Th e decision of the Registrar may be appealed to 
the Minister of Commerce, Tourism and Labour, whose decision is final.  
3.2.2  Ordinary customs duties 
3.10.  Tonga's Customs Tariff Schedule applied in 2013 is based on the HS2007 classification, 
containing 5,286 tariff lines at the eight-digit level.
9 Tonga has bound its entire customs tariff 
(Table 3.2), with relatively minor differences in the average bound rates on agricultural and 
                                               
5 Schedule 1 of the Act lists prohibited activities, i. e. the export, import or production of any products 
prohibited under the laws of Tonga; the processing or ex port of endangered species; the storage, disposal or 
transport of nuclear or toxic waste, production of weap ons of warfare; pornography; prostitution; or any other 
specific activity that may constitute a threat to national security and public order (in the opinion of the Minister of Foreign Affairs and Trade).  
6 In the case of partnerships, all partne rs should be at least 18 years old.   
7 The fees are reduced by 50% for applicat ions and notices filed electronically.  
8 The fee for amendments to a business licence (e.g. ch ange of address, type of  business, or authorized 
signature(s)) amounts to T$30 (or T $20 for an on-line submission).  
9 According to the Tongan authorities, the migration to HS2012 is almost completed.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 25 - 
 
  non-agricultural products (WTO definition), as the tariff lines are bound at ad valorem  rates of 
either 15% or 20%.10 Tonga does not participate in the plurilateral Information Technology 
Agreement, the Agreement on Trade in Civil Aircraft, or any of the sectoral initiatives.  
Table 3.2 Tonga's Customs Tariffs, 2008-13 
 MFN applied Final 
bounda   2008-2010  2011  2012 2013 
Bound tariff lines (% of all tariff lines) 100.0 100.0 100.0 100.0 100.0 
Simple average rate 11.6 11.8 11.8 11.5 17.6 
 Agricultural products (HS01-24) 12.4 12.3 12.3 10.5 19.2 
 Industrial products (HS25-97) 11.4 11.7 11.7 11.7 17.3 
 WTO agricultural products 11.4 11.2 11.2 10.7 19.1 
 WTO non-agricultural products 11.6 11.9 11.9 11.7 17.4 
Duty free tariff lines (% of all tariff lines) 26.7 14.9 14.9 15.0 0.0 
Simple average rate of dutiable lines only 15.8 13.9 13.9 13.6 17.6 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines) 0.0b 0.0b 0.0b 0.0b 0.0b 
Domestic tariff "peaks" (% of all tariff lines)c 0.0 0.0 0.0 0.0 0.0 
International tariff "peaks" (% of all tariff 
lines)d 11.5 11.5 11.5 9.6 52.2 
Overall standard deviation of tariff rates 7.2 6.7 6.7 6.6 2.5 
Coefficient of variation of tariff rates 0.6 0.6 0.6 0.6 0.1 
Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 0.0 0.0 
Total number of tariff lines 5,285 5,286 5,286 5,286 5,286 
 Duty free 1,413 785 788 793 0 
 Ad valorem  rates 3,871 4,500 4,499 4,492 5,285 
   3% 0 670 669 669 0 
   5% 0 0 0 73 0 
  10% 6 7 6 35 0 
  15% 3,258 3,216 3,215 3,206 2,529 
  20% 607 607 607 509 2,756 
 Alternate ratesb 1 1 1 1 1 
a Final bound rates are based on the 2012 tariff schedule. 
b One tariff line, playing cards, applies an alternate rate (HS 9504.40.00). c Domestic tariff peaks are defined as those exc eeding three times the overall average applied rate. 
d International tariff peaks are defined as those exceeding 15%. 
e Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: All tariff schedules are based on the HS07 nomenclature. Calculations for averages are based on the 
national tariff line level (8-digit). The 2013 tariff schedule includes changes up to 13 August 2013 
(Customs Duty (Amendment) (No.2) Order 2013). 
Source: WTO Secretariat calculations, based on data provided by the authorities of Tonga; and Tonga's 
Revenue Services and Customs website. Viewed at: http://www.revenue.gov.to . 
3.11.  Tonga's applied MFN tariff mirrors the parameters established by the Goods Schedule 
(Table A3.1). The simple average applied rate was 11.5% in September 2013, compared with an 
average bound level of 17.6% overall. The diffe rence between the bound and applied rates is 
particularly pronounced in agriculture because of duty-free treatment of live animals, meat, plants 
and flowers, and seeds (Chart 3.1), and in industrial  goods due to zero or low tariffs on investment 
goods such as machinery (Chart 3.2).  
                                               
10 The tariff negotiations were conducted on the as sumption that Tonga would introduce a new customs 
tariff based on a uniform import duty rate of 15%. Short transitional arrangem ents applied to revenue 
sensitive goods such as alcoholic beverages, tobacco products, and motor vehicles. In addition, reductions in 
the bound rates were agreed for some items bound at 25%  upon accession. All reductions in the bound rates 
were foreseen to be implemented by 1 January 2007. However, Tonga was not yet a Member of the WTO at that date, hence the final bound rates became  effective from the date of accession.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 26 - 
 
  Chart 3.1 Average bound and MFN rates, by HS chapters 1 to 24, 2013 
% 
0.02.55.07.510.012.515.017.520.022.525.0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2401  Live animals        
02  Meat & edible meat offal
03  Fish & crustaceans      04  Dairy products, etc.05  Products of animal origin
06  Plants & flowers07  Edible vegetables
08  Edible fruit & nuts
09  Coffee & tea10  Cereals11  Cereal products
12  Oil seeds & misc grains 13  Lac, gums & resins
14  Vegetable products n.e.s
15  Animal/vegetable fats & oils16  Meat/fish preparation17  Sugar & sugar confectionery
18  Cocoa & cocoa preparation19  Prepared food of cereals
20  Prepared food of vegetables/fruit
21  Misc. edible preparations22  Beverages, spirits, vinegar23  Residues from food industry
24 TobaccoAverage applied 
MFN rate (10.5%)Bound MFN Average bound rate 
(19.2%)
 
Source: WTO Secretariat calculations, based on data provided by the authorities of Tonga; and Tonga's 
Revenue Services and Customs website. Viewed at: http://www.revenue.gov.to . Including changes 
up to 13 August 2013. 
Chart 3.2 Average bound and applied MFN rate s for non-agricultural products groups 
(WTO definition), 2013 
0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0
Fish & fishery products
Minerals & metals
Chemicals & photographic supplies
Wood, pulp, paper & furniture
Textiles
Clothing
Leather, footwear, travel goods
Non-electric machinery
Electric machinery
Transport equipment
Non-agriculture articles n.e.s.
PetroleumProduct groups Average (%)
Bound
MFN
Average bound
(17.4%)Average applied 
MFN (11.7%) 
Source: WTO Secretariat calculations, based on data provided by the authorities of Tonga; and Tonga's 
Revenue Services and Customs website. Viewed at: http://www.revenue.gov.to . Including changes 
up to 13 August 2013. 
 WT/TPR/S/291/Rev.1 • Tonga 
 
- 27 - 
 
  3.12.  Six tariff bands are presently in use, ranging from 0 to 20% (Chart 3.3). All applied rates 
are ad valorem , except for playing cards (HS9504.40.00), which attract an import duty of 20% or 
T$0.20 per packet, whichever is lower.11 Tonga's imports tariffs have been relatively stable since 
the new customs tariff entered into force on 1 January 2008. The main change, effective from the 
beginning of 2011, made several hundred duty-free ta riff lines, mostly investment goods, subject 
to a rate of 3%. For approximately 46% of tariff lines, the current applied rate is identical to the bound rate, i.e. 15% or 20%. The rate of 10% is applied only to vegetable oils, water, and raw 
materials for paint manufacturing (certain enamels, liquid lustres, etc.). The tariff rate of 5% was 
introduced in August 2013, as tariffs were reduced to stimulate the consumption of fish.  
Chart 3.3 Distribution of  MFN tariff rates, 2013 
15% (60.7)3% (12.7)Duty free (15.0)20% (9.6)
10% (0.7)5% (1.4)
 
Note: Figures in parentheses denote th e percentage share of total lines. 
Source: WTO Secretariat calculations, based on data provided by the authorities of Tonga; and Tonga's 
Revenue Services and Customs website. Viewed at: http://www.revenue.gov.to . Including changes 
up to 13 August 2013. 
3.13.  Tonga acceded to the WTO with tariffs bound at relatively low levels and its tariff structure 
is not complex. However, in analysing Tonga's import tariff, the Secretariat came across certain anomalies. Notably, Tonga's applied rates have been exceeding the bound levels on 22 tariff 
lines.
12 According to the authorities, these breaches are technical mistakes to be corrected with 
the migration to HS2012.  
3.14.  Tonga bound the tariff on alcoholic beverages, tobacco products, certain petroleum 
products, and motor vehicles at 20%, but the present rate of duty is "Free, but see excise 
schedule". Motor vehicles and petroleum products, which are not produced domestically, are thus subject to excises only. On the other hand, while domestic producers of beer, spirits, and tobacco 
receive no tariff protection, they are assisted by  lower rates of excise duty (section 3.2.6).  
3.15.  Although Tonga is a party to a certain numbe r of preferential trade agreements (Chapter 2), 
none of these give rise to preferential rates of customs duty for any goods entering Tonga at 
present. Tonga's Customs Tariff is a simple two-column document with (MFN) rates indicated for 
imports and for exports.  
3.16.  Government revenue from import duties amounted to T$12.6 million in 2011/12, an 
increase of T$0.3 million over the previous fisca l year. Since the overhaul of the tax system in 
2007, government revenue has shifted from the collection of taxes on international trade 
transactions towards internal taxes, i.e. taxation of consumption, wages, and profits (Chart 1.1).  
3.2.3  Other duties and charges (ODCs) 3.17.  Tonga's 20% ad valorem  Port and Services Tax on imports was replaced on 1 April 2005 by 
a general Consumption Tax, which is also applicable to domestically produced goods. Tonga has 
                                               
11 The applied rate for playing cards is identical to the bound rate, which is currently the only item in 
Tonga's Goods Schedule with an optional specific duty rate.  
12 These tariff lines, all bound at 15%, are subject to  20% import duty. The tariff lines concerned are: 
HS0303.71.00; 0306.14.00; 0307.49.00; 1601.00.10; 1601.00.11; 1601.00.90; 1704.90.00; 4011.20.00; 
4011.92.00; 4011.93.00; 4011.94.00; 4011.99.00; 4202.12.00; 4202.22.00; 4202.32.00; 4202.39.00; 
4202.92.00; 8708.95.00; 8708.99.90; 9008.90.00; 9401.61.00; and 9403.60.00. Tariff line 8708.95 does not exist in HS02, but corresponds to ex8708.99, bound at 15%.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 28 - 
 
  bound other duties and charges within the meaning of Article II:1(b) of the GATT 1994 at zero in 
its Goods Schedule.  
3.2.4  Tariff-rate quotas , and tariff exemptions 
3.18.  Tonga does not apply tariff rate quotas on any product. 
3.19.  Tonga uses Chapter 98 of its Customs Tariff to detail tariff exemptions. Duty-free treatment 
applies to imported goods for the use of the reigning Sovereign; international organizations, accredited diplomatic representatives, and technical assistance officials; personal effects and 
accompanied luggage of travellers (within specified limits); ground equipment and fuel for aircraft; 
cultural and educational articles; charitable gifts; marine life-saving equipment; patterns, samples, advertising matter and documents; religious goods; trophies and medals; and photographs.  
3.20.  Prior to Tonga's accession to the WTO, tariff exemptions were granted to investors for 
imported capital goods and raw materials and components as investment incentives pursuant to 
the Industrial Development Incentives Act. This Act was repealed in 2007 as part of Tonga's overhaul of its customs legislation.
13 However, many types of investment goods can be imported 
free of duty by all users, as the tariff has been set at zero. Although user-specific tariff exemptions 
are no longer generally available to industrial users, manufacturers of beer and other alcoholic beverages are exempt from customs duty on certain imported inputs by virtue of tariff items 98.17 
and 98.19. A new tariff line (98.22), exempting so me 40 items of materials and equipment for use 
in the fisheries sector, was added in June 2013.
14 
3.2.5  Fees and charges for services rendered 3.21.  Fees and charges for customs-related operations have been laid down pursuant to the 
Customs and Excise Management Act No. 4 of  2007 and the Customs and Excise Management 
Regulations 2008, as amended. Importers who have been issued a taxpayer identification number 
are automatically registered by Tonga Customs for self-assessment of the customs duty (and 
excises, if any) payable on any goods imported by them.
15 Customs declaration forms are 
completed by the importer or a customs broker acting on his/her behalf.16 Declarations may be 
submitted in hard copy or electronically (Ele ctronic Self-Assessment Document (ESAD)). Customs 
clearance as such is free of charge during normal  working hours, but a processing fee of T$10 is 
charged for each customs declaration form (Table 3.3). The fees for customs processing, attendance fees, wharfage charges, and bond rent generated approximately T$1.1 million in government revenue during the financial year 2011/12.  
Table 3.3 Customs-related fees and charges 
Description of service Legal reference Fee (T$)  
Entry processing fee, per Cu stoms form Regulation 36 10.00 
Attendance fees: Regulation 138  
- Attendance at bonded warehouse:   
-- per officer per hour, normal wo rking hours (8:30 a.m.-4:30 p.m.)  20.00 
-- per officer per hour outside normal working hours  20.00 
-- per officer per hour during the weekend or public holidaya  20.00 
- International ports and airports   
-- per officer per hour, normal wo rking hours (8:30 a.m.-4:30 p.m.)  Free 
-- per officer per hour outside normal working hours  20.00 
-- per officer per hour during the weekend or public holiday  20.00 
-- inwards or departing clearance, normal working hours  Free 
                                               
13 The Industries Development Incentives (Repeal) Act No. 21 of 2007 was passed by the Legislative 
Assembly on 3 September 2007 and received Royal Assent on 26 October 2007. Licences already issued under the Act remained valid until the term indicated in each licence. 
14 Customs Duty (Amendment) Order 2013 of 12 June 2013.  
15 An importer who is not eligible for a taxpayer  identification number under the Revenue Services 
Administration Act 2002 may register voluntarily with the Chief Commissioner of Revenue to use the self-
assessment programme.  
16 Customs officers are not allowed to fill in any customs declaration form (Customs and Excise 
Management Regulations, regulation 31).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 29 - 
 
  Description of service Legal reference Fee (T$)  
-- inwards or departing clearance outside normal working hours  80.00 
-- inwards or departing clearance during the weekend or public holiday  100.00 
Certificate of landing (on request) Regulation 13 15.00 
Export cargo clearance fee (written approval for departure of ship or 
aircraft) Regulation 40 20.00 
Export goods declaration fee Regulation 52 2.00 
Warehouse licence application fee   50.00 
Customs brokers' annual licence fees: Regulation 127  
- natural person   200.00 
- company or partnership  500.00 
Requests for rulings (on Customs Form C33), per application  Regulation 131 20.00 
a In addition, reasonable and actual transport and sustenance is to be paid or arranged. 
Source: Tonga Customs online information. Viewed at: http://www.revenue.gov.to ; and information provided 
by the Tongan authorities.  
3.22.  Fees for phytosanitary inspection, treatment, and quarantine are laid down in the Plant 
Quarantine (Fees) Regulations 1997. The fees relate  to inspections (of imports and exports) and 
phytosanitary certification fees (exports only).  
3.23.  Customs brokers are licenced by the Chief Commissioner of Revenue. In addition to the 
annual fee, licenced brokers are required to pr ovide a security of T$5,000 to ensure revenue 
protection and compliance with Tonga's customs legislation. The Chief Commissioner is required to publish a list of licensed customs brokers in the  Gazette  at least once a year.
17  
3.24.  Nearly 100% of Tonga's goods trade passes through the port at Tongatapu. Under the Ports 
Authority Act 1998, the Ports Authority levies fees for services rendered such as berthage, wharfage, mooring, slipway, boat lifter, and tug boat services. The fees are currently charged pursuant to the Standing Order 2009 (section 4.4.4.2.2). The Port Authority establishes the 
appropriate fees in consultation with the Port User Advisory Committee, and the scale of fees is 
submitted to the Executive of the South Pacific Board of Ports, composed of members from the Pacific island countries, Australia, and New Zealand.  
3.2.6  Application of internal taxes 
3.25.  Tonga levies excise taxes on certain animal fats, sweetened soft drinks, alcoholic beverages, 
tobacco products, mineral fuels and oils, and motor vehicles pursuant to the Excise Tax Act No. 6 
of 2007. The scope of the excise tax regime, the tax rates, and tax exemptions are determined by 
the Chief Commissioner (i.e. the Minister or principal officer responsible for revenue services) with the approval of the Cabinet. The current regi me is based on the Excise Tax Order 2008 as 
amended in 2010, 2011, 2012, and 2013.
18 The tax rates differ for imported and domestically 
produced beer, spirits, and tobacco products, providing local manufacturers with a considerable 
tax advantage, particularly for beer and spirits (Table A3.2).19  
3.26.  Exemptions from excise tax include trave llers' duty-free allowances, manufacture of limited 
quantities of alcohol for personal use, imports by diplomatic missions or international 
organizations, goods in transit, and temporary imports. Fuels and lubricants used in international air transport and for domestic commercial air and shipping services are tax exempt. In addition, 
diesel fuel used for the generation of electricit y by the national supplier is exempt, and commercial 
                                               
17 At present, there are 28 licensed customs brokers and customs agents in Tonga, of which 8 are based 
in Vava'u.  
18 In August 2013, animal fats and soft drinks became  subject to excise tax for the first time, and the 
tax rates were increased on tobacco and tobacco products.  
19 Since 2008, the tax differential has increased for beer (from T$17 (domestic) vs. T$40 (foreign) to 
T$10 vs. T$50). The differential tax treatment for cigars, cigarillos, and cigarettes was introduced in 2011, as 
the rates for imported items was increased, but re mained unchanged for loca lly produced articles.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 30 - 
 
  fishing boats certified as such by the Chief Commissioner of Revenue may also purchase 
tax-exempt diesel fuel.20  
3.27.  Domestic manufacturers of excisable goods must hold a valid licence to produce such goods 
at specified premises. The licence is issued by  the Chief Commissioner against payment of the 
application fee (T$50) and provision of an acceptable Customs security.21 Excise stamps must be 
affixed to the excisable goods. Local manufacturers pay the excise tax when their goods move off the production premises. For imports, the excise tax is paid before the goods are released from 
Customs.  
3.28.  Tonga introduced the Consumption Tax on 1 April 2005, applied on all imports and domestic 
sales by registered Consumption Tax payers.
22 The registration threshold for the tax is T$100,000, 
but businesses with an annual turnover below the threshold may register voluntarily for payment 
of the tax. The tax rate is 15% or zero/exempt.  Most imported goods and services are taxed at 
15%, levied on the c.i.f. value inclusive of import duty or excise tax.23 Exports, international 
transport services, and basic provision of electricity and water to households are zero-rated. Social 
exemptions to the Consumption Tax include medical, dental, and nursing services; domestic public 
transport services; and education services. Administrative exemptions cover financial services, certain property transactions, and personal baggage accompanying passengers arriving in Tonga 
by sea or air (Table 3.4). Fishing vessels and various equipment and materials used on fishing 
vessels were added to the exemption/zero rate list in June 2013.
24  
Table 3.4 Consumption Tax exemptions and zero rates 
Measure Affected good or service 
Supplies exempt from 
Consumption Tax 
 (a) Medical prescriptions, dental  nursing or health services; 
(b) Educational services; 
(c) Financial services; (d) Public transport services; 
(e) Lease of land for residential purposes. 
Taxable supplies subject to a 
zero rate of Consumption Tax (a) Exports of goods; 
(b) Exports of services supplie d for use outside of Tonga; 
(c) Supply of international transport of goods or passenger services 
 from a place outside Tonga to anot her place or if the transport or 
 part of the transport is ac ross the territory of Tonga; 
(d) The supply of goods as part of the transfer or part or whole of a 
 business as a going concern by a registered person to another 
 registered person provided that  the supplier and recipient have: 
 (i) agreed in writing that part or  whole of the business is supplied 
 as a going concern; and (ii) no tified the Chief Commissioner, in 
 writing, of the details of the transf er, at the date of the transfer on 
 which consumption tax has been credited as input tax; 
(e) Supplies of goods and services by a supplier in Tonga to His 
 Majesty to King; 
(f) Electricity supplied by a supplier for commercial use; 
(g) Electricity supplied by any supplier for domestic purposes; 
(h) First 20 cubic meters of wa ter per month supplied by any 
 supplier for domestic purposes; 
(i) Insecticides, pesticides and fungicides for use in agriculture; 
(j) Agricultural machinery and implements, including hand tools and 
 timber milling machinery; 
(k) Agricultural seeds and fertilizers; 
                                               
20 Tax exemptions are detailed in Schedule 2 of the Excise Tax Order 2008. Altar wine was added to the 
exemption list through the Excise Tax (Amendment) Order 2011 of 8 June 2011. User-specific exemptions may also be accorded by Order published in the Tonga Government Gazette . All imported building materials for the 
construction of a specific building were exempted of consumption tax by Order of the Chief Commissioner of 
Revenue on 19 April 2012, and all materials imported by Tonga Cable Ltd. for the Tonga-Fiji Submarine Cable Project during the construction period are exempt from ex cise tax by Order of the Minister of Revenue Services 
dated 24 August 2012.  
21 The fee for the initial year is T$50, but the fee for renewals is T$500 per year. 
22 The Consumption Tax replaced a sales tax, fu el sales tax, and port and services tax.  
23 For imports, the Consumption Tax is due and payable at the time of importation. Registered domestic 
manufacturers are required to file consumption tax returns within 28 days after the end of each month.  
24 Consumption Tax Order 2013 of 12 June 2013.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 31 - 
 
  Measure Affected good or service 
(l) Stock feed; 
(m) Live poultry; 
(n) Live bovine animals; 
(o) Live swine; 
(p) Packaging material for use in agriculture; 
(q) For licensed fisheries businesses: vessels, equipment and materials 
 detailed in the Consumption Tax Order 2013. 
Imports exempt from the 
Consumption Tax (a) Imports which are supplied in  Tonga and are an exempt supply 
 under 1; 
(b) Imports not exceeding T$500 in value accompanying a person 
 arriving in Tonga; 
(c) Imports by diplomats according to law; 
(d) Insecticides, pesticides and fungicides for use in agriculture; 
(e) Agricultural machinery and implements, including hand tools and 
 timber milling machinery; 
(f) Agricultural seeds and fertilizers; 
(g) Stock feed; 
(h) Live poultry; (i) Live bovine animals; 
(j) Live swine; 
(k) Packaging material for use in agriculture; 
(l) Licensed fisheries businesses: vessels, equipment and materials 
 detailed in the Consumption Tax Order 2013. 
Source: WTO document WT/ACC/TON/17, Table 7; and Consumption Tax Order 2013, 12 June 2013. 
3.29.  Tonga levies stamp duties on certain commercial transactions. Agreements for the lease of 
buildings and land are subject to a duty of 1% of  the annual rent. The conveyance of transfer of a 
land-lease or sublease agreement is subject to a duty of 10% of the purchase price.  
3.30.  The Customs and Trade Division collected almost T$29 million in revenue from excise taxes 
in 2011/12. The main contribution was from taxes on fuel and other petroleum products. Consumption Tax collected on imports raised T$46.6 million, compared with T$7.14 million from 
domestic producers.  
3.2.7  Import prohibitions, restrictions, and licensing 3.31.  Most items can be imported into Tonga without any restriction (other than import duty, 
taxes, and charges). However, Tonga prohibits cert ain imports, and the importation of some items 
is restricted and requires a special licence. Tonga applies non-automatic licensing to firearms, explosives, and noxious gases.  
3.32.  Prior to WTO accession, Tonga maintained licensing requirements for imports of eggs, cabin 
and ships biscuits, brandy, whisky, and rum. Tonga agreed to eliminate these restrictions by the 
end of 2006, and they are not reflected in Tonga's present list of prohibited and restricted imports 
(Table 3.5). However, this list is not exhaustive as it also refers to "goods the importation of which 
is restricted by any other law in force in the Kingdom". Notably, importation of narcotics is 
restricted under the Illicit Drugs Control Act 2003, and trade in  endangered species is regulated by 
several legal instruments, including the Environment Management Act 2010.  
Table 3.5 Prohibited and restricted imports 
No. Product description 
Prohibited imports 
1 Base or counterfeit or imitation currency or bank notes or fictitio us postage or revenue stamps of 
any country, and any dye, plate, instrument, or ma terials capable of making any such coin, currency 
or bank note or any such revenue or postage stamps 
2 Counterfeit goods 
3 Indecent or obscene books, painting, drawings , cards, lithographic or other engravings, 
photographs, prints, films, or other indece nt products that depi ct child pornography WT/TPR/S/291/Rev.1 • Tonga 
 
- 32 - 
 
  No. Product description 
4 Goods bearing the royal Arms of the Kingdom or arms so closely resembling such arms as to be 
calculated to deceive unless the importer of such  goods holds His Majesty's written authority to use 
them in connection with his trade, business, calling, or profession 
5 All books and any written or printe d matter and sounds and visual re cordings of which the Minister 
shall by notice declare to be prohibited imports on account of any copyright or intellectual property 
right laws that apply in the Kingdom 
6 All books and any written or printed matter and so und and visual recordings that the Minister shall 
by notice declare to be seditious or that advocate violence, lawlessness, or disorder 
7 All toxic and hazardous wastes 
Restricted imports 
1 Firearms and ammunition exce pt with a licence issued in accordance with the law 
2 Explosives of all kinds including fuses and detonators  except with a licence is sued in accordance with 
the law 
3 Noxious, stupefying or tear gas in any form, and al l weapons and instruments or appliances for firing 
or using such gases and gas containers, or cartridges for such weapons or other instruments for 
appliances except in accordance with the law 
4 The amount of T$10,000 (or equivalent) or more in cash 
5 Goods the importation of which is restricted by any other law in force in the Kingdom except in 
accordance with such law 
Source: Customs and Excise Management  Order, Schedule 1, published in Government Gazette Supplement 
Extraordinary No. 5, 21 January 2008, effective 1 February 2008.  
3.33.  Medicinal drugs may only be imported by ph armacists, veterinary practitioners, wholesalers, 
or retailers, under the Therapeutic Goods Act 2001 and the Therapeutic Goods Regulations 2011. The import licence is delivered subject to an a pplication fee (T$20), an issuance fee (T$200), and 
an inspection fee (T$50).
25 Before any new medicinal drug may be imported or offered for sale, 
the importer or the manufacturer must apply to the National Drugs and Medical Supplies Committee for the drug to be inserted in the Tongan Registered List of Medicinal Drugs.
26  
3.34.  The manufacture of arms and ammunition is prohibited in Tonga under the Arms and 
Ammunition Act 1968 (revised in 1988). Possession of arms and ammunition requires a licence. Applications for a licence to import arms and ammu nition are addressed to the Minister of Police, 
and the licence together with a detailed description  of the goods purchased must be returned to 
the Minister within 3 days of expiry of the licence  terms. Importation, exportation, and storage of 
explosives is regulated under the Explosives  Act 1971 and the Explosives Regulations. The 
importation of a left-hand drive motor vehicle requires a licence from the Minister of Finance as 
well as a licence issued by the Minister of Police.
27 R e q u i r e m e n t s  p e r t a i n i n g  t o  i m p o r t s  o f  l i v e  
animals, agricultural commodities, plants and plant products, and food are described in the section 3.4.3 below.  
3.2.8  Customs valuation 
3.35.  Tonga acceded to the WTO with a transitional period until 1 January 2008 to implement the 
WTO Agreement on the Implementation of Arti cle VII of the GATT 1994 (Customs Valuation 
Agreement). Part 3 of the Customs Act No. 5 of 2007 establishes the basic rules for customs 
valuation in Tonga. Should the customs officer determine that the price actually paid or payable (the transaction value, Section 12) cannot be used, the alternative valuation methods apply in hierarchical order as laid down in the Customs Valuation Agreement, i.e. the transaction value of 
identical goods, transaction value of similar goods, the deductive value, the computed value, and 
the fall-back method (Sections 13-17 of the Act). A ccording to the authorities, the Interpretative 
Notes to the Agreement have not been incorporated into Tonga's legislation, but are being applied.  
3.36.  According to Tonga's Customs Service, the transaction value is used in approximately 90% 
of all valuation cases. Goods for which the customs value needs to be re-determined typically concern non-documented consignments. Rulings on valuation matters are not published. An 
                                               
25 The premises at which the goods are to be stored must be available for inspection by an authorized 
officer. The manufacture of medicinal drugs in Tonga is also subject to licensing, with fees for applications 
(T$20), inspection (T$200), and issuance (T$500).  
26 Registration of a new medicinal drug costs T$10.  
27 Excise Tax Order 2008, Schedule 3.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 33 - 
 
  informal Valuation Committee, established by the Tongan Customs Service in November 2009 is 
no longer operational. Work on an automated valuation database began in mid-2009, but the database is not being updated.  
3.37.  Upon request, the Chief Commissioner of Revenue will provide a written notice to the 
importer of the method used to determine the customs value of the imported goods. The Chief 
Commissioner may review the decision of the customs officer, but this rarely happens in practice. The Chief Commissioner's decisions can be appealed to the Tax Tribunal within 30 days of receipt 
of the decision.
28  
3.2.9  Rules of origin 3.38.  Tonga's Customs Act No. 5 of 2007 and Customs Regulations 2008 do not contain basic 
provisions on non-preferential or  preferential rules of origin. Regulation No. 131 of the Customs 
and Excise Management Regulations 2008 allows any person to request a writing ruling by the 
Chief Commissioner of Revenue on any aspect of Customs law or administration. The Chief Commissioner is obliged to respond within 30 days of the date of the application. 
Regulation No. 131 may be used by importers, exporters, or any person with a justifiable cause to 
obtain assessments of the origin of imported goods, a right provided under Article 2(h) and Annex II, paragraph 3(d) of the WTO Agreement on Rules of Origin.  
3.39.  Currently, the lack of general or specific rules or provisions on origin has little practical 
effect, as Tonga applies the MFN rate of duty to all trading partners. However, Tonga has ratified 
the Pacific Island Countries Trade Agreement (PICTA), which aims at establishing a free-trade area between the participants. Goods complying with the rules of origin laid down in Annex I of the 
Agreement may obtain PICTA origin status (wholly obtained or minimum 40% value added as a 
result of processing in the territory of the PICTA party).
29 The future system for the issuance and 
recognition of certificates of origin is under consideration.  
3.2.10  Anti-dumping, countervailin g duty, and safeguard regimes 
3.40.  Tonga notified the WTO Committee on Anti-Dumping Practices in 2010 that it had no 
legislation, regulations or administrative procedures relevant to the WTO Agreement on 
Implementation of Article VI of the Genera l Agreement on Tariffs and Trade 1994 (the 
Anti-Dumping Agreement).30 Tonga further informed the Committee in 2011 that it had not 
established any authority competent to initiate or conduct an investigation within the meaning of Article 16.5 of the Anti-Dumping Agreement, had therefore not taken any anti-dumping actions, 
and was not anticipating taking any such actions in the foreseeable future.
31 Tonga also stated that 
the Committee would be notified promptly of any possible changes taking place in this regard, specifically the establishment of a competent authority or domestic procedures for anti-dumping 
investigations; any anti-dumping actions taken would be reported to the Committee without delay.  
3.41.  With reference to Article 32.6 of the WTO Agreement on Subsidies and Countervailing 
Measures, Tonga notified the Committee on Subsidies and Countervailing Measures in 2011 that it 
had no relevant laws and/or regulations, and th at it would promptly notify any such laws or 
regulations to the Committee.
32  
3.42.  During the WTO accession negotiations, Tonga informed the accession working party that it 
had no legislation governing safeguard measures and that it had no plans to introduce any such 
legislation.33  
                                               
28 Customs and Excise Management Act No. 4 of 2007, Section 126.  
29 The Pacific Islands Forum Secretariat has compiled  a 61-page rules of origin manual for the PICTA. 
See Pacific Islands Forum Secretariat (2004). 
30 WTO document G/ADP/N/1/TON/1, 10 March 2010.  
31 WTO document G/ADP/N/193/TON, 13 October 2011. According to Tonga, this notification under 
Articles 16.4 and 16.5 of the Anti-Dumping Agre ement remains valid unti l further notice.   
32 WTO document G/SCM/N/1/TON/1, 13 October 2011.  
33 WTO document WT/ACC/TON/17 (paragraph 99), 2 December 2005.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 34 - 
 
  3.3  Measures Directly Affecting Exports 
3.3.1  Export procedures and requirements 3.43.  Exporters are required to hold a valid business licence (section 3.2.1). A foreign investor 
must obtain a foreign investment certificate before the business licence can be issued. Domestic 
and foreign investors are generally treated alike as exporters. The only activity reserved for 
Tongan investors is the exportation of green and mature coconuts (Table 2.3).  
3.44.  All commercial exports of goods from Tong a must be declared to Tonga Customs before 
loading. Certificates of origin are required for exports of squash to Japan. The Tonga Customs 
Service provides written confirmation, although this is not an official certificate.  
3.3.2  Taxes, fees, and charges on exports  3.45.  Tonga's Customs Tariff has one column reserv ed for duty on exports. However, all exported 
goods are currently zero-rated. Excise tax is not levied on exported goods. For businesses 
registered for Consumption Tax, the tax is not levied on exports of goods or services (Table 3.4). Exported goods are subject to an inspection fee of T$20 and a processing fee of T$2 per customs 
declaration form (Table 3.3). Fees for phytosanitary procedures applied to exports are detailed in 
the Plant Quarantine (Fees) Regulations 1997.  
3.3.3  Export restrictions 
3.46.  The processing and exportation of endangered species is prohibited under the Business 
Licences Act, Schedule 1. Other items are proh ibited for export under the Customs and Excise 
Management Order (Table 3.6).  
Table 3.6 Prohibited an d restricted exports 
No. Product description 
Prohibited exports 
1 The following articles of Tongan culture: 
1. Tao 
2. Tao-Fotoi (Tao Foto'i Fai)(barbed spear) 
3. Mataa (club) 
4. Likuvalu (Akau Ta tapavalu) (club) 
5. Tao Niu (spear of coconut) 
6. Kolo (throwing club) 
7. Kaufana (bow) 
8. Ngauhau (arrow) 
9. Ualulu (club) (Tau uluilulu) (spear with owl's head) 
10. Tuipapanu (club) 
11. Mo'ungalaulau (club) 
12. Makata (club) 
13. Tuitapavalu ('Akau Ta-tapavalu eni)(club) 
14. Malumulekeleka (Kolo) (throwing club) 
15. Tui (club) 
16. Tutanga'akau (Pota'i Akau Ta) (club) 
17. Soki (spikes in ground) 
18. Totoko (club) 
19. Povai (club) 
20. Falevatu (axe) 
21. Vulaono (axe) 
22. Tao Ngututokotoko (bayonet) 
23. Paletau (shield) 
24. Meleihe ('Akau Ta) (short stick) 
25. Fala Vala 
26. Fala Fatu 
2 Raw coral (including unprocessed black coral) exce pt with the written permission of the Minister 
following approval of the Cabinet 
3 Goods the exportation of which is prohibited  by any other law in force in the Kingdom WT/TPR/S/291/Rev.1 • Tonga 
 
- 35 - 
 
  No. Product description 
Restricted exports 
1 Goods the exportation of which is restricted under any other law in force in the Kingdom except in 
accordance with the law 
2 (a) The amount of T$10,000 or more in cash, except  with the written permission of the Governor of 
the National reserve Bank of Tonga 
(b) This amount may be made up in the currency of  any country in any combination that is equal to 
or exceeds the value of T$10,000 in cash 
Source: Customs and Excise Management  Order, Schedule 2, published in Government Gazette Supplement  
Extraordinary,  No. 5, 21 January 2008.  
3.47.  Further export restrictions may be provided for in specific legislation. For example, out-of-
season exports of sea cucumber are restricted for conservation purposes under the Fisheries Management Act.  
3.3.4  Export subsidies, finance, and guarantees 
3.48.  Tonga joined the WTO with a commitment not to apply agricultural export subsidies. It 
notified the WTO in 2010 that it had not provided any form of export subsidy for financial years 2007/08 and 2008/09.
34 In the past, funds under the Export Earnings Stabilization System 
( S T A B E X )  o f  t h e  E U  h a v e  b e e n  u s e d  t o  d e v e l o p  the production of vanilla and kava for export. 
However, the project ended in 2011.  
3.49.  Tonga does not have any broad-based government-operated or -funded export finance or 
export guarantee schemes. The wholly state-ow ned Tonga Development Bank, established in 
1977, provides loans to the agriculture and fisherie s sector, notably for the cultivation of squash 
and root crops for export. However, all its lending is based on commercial considerations and the 
Bank receives no compensation from the Government for its lending activities. The agricultural 
export marketing fund, was set up in 2012 with initial capital of T$1 million (section 4.1.5).  
3.3.5  Export promotion and marketing assistance 3.50.  Within the Ministry of Commerce, Tourism and Labour, the Trade and Investment Division is 
dedicated to help expand the diversification of To nga's export earnings. The core functions of the 
Division are export promotion, market rese arch and development, and trade policy and 
information.  
3.51.  The Tonga Trade and Investment Board, established pursuant to the Tonga Trade and 
Investment Board Act No. 19 of 2005, is not operational due to funding problems. 
3.4  Measures Affecting Production and Trade 
3.4.1  Subsidies 
3.52.  With reference to Articles 1.1 and 2 of the WTO Agreement on Subsidies and Countervailing 
Measures and Article XVI:1 of the GATT 1994, Tonga notified the Committee on Subsidies and Countervailing Measures in 2011 that it did not grant or maintain any specific subsidies, or 
subsidies operating directly or indirectly to increase exports or reduce imports.
35  
3.53.  During the WTO accession negotiations, so me Members found provisions in the Industrial 
Development Incentives Act 1978 which, in their view, implied import substitution, export 
performance or local-content criteria constituting trade-related investment measures (TRIMs). 
Tonga repealed the Industrial Development Incentives Act in 2007. At present, investments are assisted primarily through zero or low (3%) tariffs on equipment, machinery or raw materials, 
tariff exemptions under Chapter 98 of Tonga's Customs Tariff, and (upon application) exemptions 
from payment of excise tax or consumption tax on investment goods (sections 3.2.4 and 3.2.6). Electricity generation, air transport, domestic shipping, and commercial fishing are assisted through fuel concessions (Table 4.2).  
                                               
34 WTO document G/AG/N/TON/1, 27 June 2011.  
35 WTO document G/SCM/N/220/TON, 17 October 2011.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 36 - 
 
  3.4.2  Technical barriers to trad e, standards and certification 
3.54.  Tonga has no national standardization body or dedicated national legislation for the 
adoption of standards or technical regulations.  Although the Public Health Act No. 19 of 2008 
contains certain provisions authorizing the Minister for Health to define requirements, e.g. for food, 
motor vehicles (emission standards), and septic tanks, these provisions have so far not been used 
to establish any specific standards or technical regulations. Similarly, Consumer Protection Act No. 15 of 2000 authorizes the Mini ster of Commerce, Tourism and Labour to prescribe "approved 
standards" for any good (Article 10). Moreover, Section 12(2) of Act No. 26 of 2009, which 
amends the Consumer Protection Act, stipulates that "if a good is or contains a living modified organism the approved standards applied to it shall comply with any standards or conditions set by the National Biosafety Committee". Nevertheless, no such standards have been promulgated to 
date.
36  
3.55.  The Ministry of Commerce, Tourism and La bour has been designated Tonga's National TBT 
notification authority and enquiry point. The Mini stry intends to inform WTO Members promptly of 
any developments relevant to Tonga's obligations under the WTO Agreement on Technical Barriers 
to Trade.  
3.4.3  Sanitary and phytosanitary measures  
3.56.  Tonga's legal framework for SPS measures is largely outdated, predating the entry into 
force of the WTO SPS Agreement. Nonetheless, according to the authorities, Tongan SPS measures are aligned with the provisions of the SPS Agreement, and relevant international or regional standards and guidelines.
37 The Biosecurity and Quality Management Division within the Ministry of 
Food, Forests, and Fisheries (MAFFF) is responsible for phytosanitary and veterinary measures. 
The MAFFF is also Tonga's SPS enquiry point and notification authority.38 To date, Tonga has not 
submitted any SPS notifications.  
3.57.  Imports of food, and labelling of food and beverages, are regulated by the Public Health Act 
of 1992. The Ministry of Health has primary resp onsibility for food hygiene and safety matters. 
However, a new Public Health Act was passed by Parliament in August 2013 (not yet in force), 
vesting all powers in relation to food safety and quality in the National Food Authority (the Minister 
of Agriculture, Food, Forestry and Fisheries).39 A major public health concern is the consumption of 
fatty meat, such as mutton flaps or turkey tails. In response, the Government recently made adjustments to tariffs and excise duties on certain food items, to encourage healthier diets 
(section 3.2.6). 
3.58.  Tonga is a member of the FAO Codex Alimentarius Commission, the Asia Pacific Plant 
Protection Convention, the Pacific Plant Protection  Organization, and adheres to the International 
Plant Protection Convention (IPPC) although it has not yet ratified the convention.
40 
3.59.  Tonga's phytosanitary requirements are governed by the Plant Quarantine Act 198841 (last 
amended in 2009), and subsidiary regulations.42 The Tonga Quarantine Manual 1998 is not up-to-
date. Import conditions include prohibitions, permits, phytosanitary certificates, and inspection. In 
general, permits are required for imports of fresh fruit and vegetables, cut flowers and foliage, 
                                               
36 Although implementing regulations exist for the Cons umer Protection Act, no staff has been recruited 
to perform specific function s in relation to the Act. 
37 Including notably the International Standards fo r Phytosanitary Measures (ISPM) of the IPPC. 
38 The address of the enquiry point is: P.O. Box 14, Nuku'alofa, Kingdom of Tonga; Phone: +676 
23038/24257; Fax +676 23093/24271/24922; Email: maf-ento@kalianet.to  and vailalam@kalianet.to .  
39 Public Health Act 2008. Viewed at: http://crownlaw.gov.to/cms/imag es/LEGISLATION/ PRINCIPAL/ 
2008/2008-0019/PublicHealthAct2008_1.pdf . There is also a consequential amendment to the Public Health Act 
2008 removing the food part of the Act.  
40 FAO online information. Viewed at: http://www.fao.org/fileadmin/user_upload/legal/docs/1_004s-
e.pdf. 
41 Plant Quarantine Act 1988 Revised edition. Viewed at: http://legislation.to/Tonga/DATA/PRIN/1988-
127/PlantQuarantineAct.pdf . 
42 Biosecurity and Quality Management Divi sion online information. Viewed at: 
http://www.quarantine.gov.to/legislation.php . WT/TPR/S/291/Rev.1 • Tonga 
 
- 37 - 
 
  fresh herbs, nursery stock, and seeds, including some seeds for consumption.43 Import permits are 
generally valid for six months, and allow for multiple shipments.  
3.60.  According to the authorities, Tonga allows imports of meat from Australia, New Zealand, the 
United States, and Vanuatu (beef), while shipment s from other countries must be cleared by New 
Zealand. A permit is required for private and commercial meat imports from Fiji and Samoa. 
Imports of live animals and eggs require a permit  from the Livestock Division of the MAFFF. No 
permit is required for commercial imports of processed products, including cheese (if packaged) 
and UHT milk.  
3.61.  Fruit fly quarantine and research is vital for Tonga's exports of fresh fruit and vegetables, 
such as squash. However, the plant quarantine facility at the airport (high temperature forced air treatment facility) to be operated by Tonga Export Produce Management Ltd. still needs to be 
certified by New Zealand. Tonga has a bilateral quarantine arrangement with New Zealand.
44 The 
fumigation facility is run by the MAFFF. There are no hazard analysis critical control point (HACCP) facilities in Tonga. 
3.62.  The Biosafety Act 2009 regulates trade in living modified organisms (LMOs), based on the 
Cartagena Protocol on Biosafety.
45 Its implementation is overseen by the National Biosafety 
Advisory Committee. The law provides for a precautionary approach and science-based risk 
analysis with respect to the approval of LMO trad e. Imports of LMOs are subject to prior approval 
by the Committee, within 270 days of receipt of the advance notice (Section 12); the Committee may also prohibit imports. Exemptions from normal approval procedures may be granted by the Committee for LMOs that are in transit; for direct use as food, feed or processing; for "contained 
use" in Tonga; or use as a pharmaceutical (Section 15). To date, no import application has been 
made.  
3.4.4  Free zones, special economic areas 
3.63.  Tonga has no designated free zones or free economic zones. A number of enterprises are 
located in Small Industries Centres established on the outskirts of the capital Nuku'alofa and on the island of Vava'u (section 2.4). No specific  customs duty exemptions or tax privileges or 
advantages are accorded to enterprises locating in these centres.  
3.4.5  Government procurement 3.64.  The Public Procurement Regulations 2010, pr omulgated by the Minister of Finance under the 
Public Finance Management Act 2002 (Section 44), governs procurement by all ministries, 
departments, and Government agencies in Tonga. Each authorized procuring entity must establish 
a procurement unit and a bid evaluation committee. Entities that have not (yet) been authorized 
as procuring entities forward their procurements for assessment and endorsement to the 
Procurement Division within the Ministry of Finance and National Planning. Each line ministry is 
required to prepare an annual procurement plan id entifying the kind of goods, services, and works 
to be acquired during the financial year, the timing of the purchases, and the estimated 
expenditure.  
3.65.  The regulations establish a Government Procurement Committee, inter alia,  to advise the 
Government on procurement policy issues, au thorize the procuring entities, and monitor 
procurement activities in Tonga.
46 The Committee is assisted by the Procurement Division, which 
                                               
43 See also Ministry for Primary Industries of  New Zealand online information. Viewed at: 
http://www.biosecurity.govt.nz/regs/exports/plants/icpr/to . 
44 According to the authorities, no formal quar antine agreements exist with Fiji and Samoa. 
45 Biosafety Act 2009. Viewed at: http://crownlaw.gov.to/cms/images/LEGISLATION/PRINCIPAL/2009/ 
2009-0019/BiosafetyAct2009_1.pdf . 
46 The Minister of Finance chairs the Committee, which also comprises the Chief Secretary and Secretary 
to Cabinet, the Secretary for Foreign Affairs and Trade, the Solicitor Gene ral, the Commissioner of Revenue, 
the Secretary for Finance, and representatives of line ministries (as appropriate).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 38 - 
 
  has elaborated guidelines on government procurement and standard bidding documents to be 
used by the procuring entities.47  
3.66.  The regulations stipulate single-stage competitive bidding as the principal method of 
procurement.48 Selective bidding, restrictive bidding, limited bidding, international procurement 
(competitive, selected, or restrictive), or request for quotations may be used depending on the 
value and nature of the procurement. According to the procurement thresholds and authorization 
levels currently in force, all procurements valued at more than T$100,000 are forwarded to the 
Government Procurement Committee.49 The Committee must issue a "letter of no objection" 
before the notification of award and contract can be signed by the procuring entity. Procurements 
of goods worth more than T$100,000 and works exceeding T$500,000 are subject to international competitive bidding.
50 For small procurements (up to T$3,000), a standard request for quotation 
document together with one quote is sufficient. A minimum of three quotes are required for 
procurements between T$3,000 and T$100,000 (good s) or T$75,000 (supply services or works 
and physical services). National competitive bidding is to be used for procurements of supply 
services and works (and physical services ) valued between T$75,000 and T$500,000.  
3.67.  According to the Public Procurement Regulations 2010 (Regulation No. 39), the Procurement 
Division is authorized to issue circulars that establish preferences for domestic suppliers/supplies, 
specifying, inter alia , the preferential margin, eligibility criteria, and documentary evidence. The 
regulations stipulate that the margin of prefer ence should be between 5% and 10%. The Cabinet 
has approved a Procurement Reform Strategy and the Division is considering the development of 
preferential schemes as part of the wide-ranging reform plans. No preferential arrangements have 
been implemented so far.  
3.68.  Procurement notices (invitations to bid or pre-qualification) are published in at least one 
national newspaper of wide circulation, broadcast over the radio or television, and published on the 
Internet to the extent feasible. The website of the Ministry of Finance ( www.finance.gov.to >Our 
services) publishes procurement notices over a cert ain threshold or where the project, due to its 
size, is unlikely to be carried out by a local contractor. When international competitive bidding is 
used, the notice is placed in at least two English-language newspapers or other printed media with 
adequate circulation to attract foreign competition, or on widely read internet websites.51  
3.69.  The Public Procurement Regulations 2010 foresee a complaints and appeals procedure 
whereby the complainant addresses his/her complaint to the head of the procuring entity in the 
first instance and, if the outcome is not satisfactory, to a review panel in the second instance.52 If 
a procurement contract has already entered into force, the dissatisfied bidder should be able to submit his/her complaint directly to the review pane l. Review panel decisions will be binding on all 
parties. The mechanisms to establish these procedures are currently under way.  
3.70.  No procuring entities have been certified. In accordance with new reform plans, bids below 
a certain threshold may be decentralized to individual units within the ministries, while larger 
contracts may be re-centralized to the Procurement Division, with exceptions made for ministries 
that habitually process large projects, e.g. the Ministry of Infrastructure.  
3.71.  In acceding to the WTO, Tonga did not make a commitment to initiate negotiations to join 
the WTO Agreement on Government Procurement. Tonga has no plans to join this plurilateral 
agreement.  
                                               
47 See Ministry of Finance online informatio n, "Procurement Publications". Viewed at: 
http://www.finance.gov.to/our- services/procurement/ppr_2010 .  
48 In two-stage competitive bidding, the procuring enti ty may engage in early di scussions with any or all 
bidders regarding technical or contractual aspects of th e procurement, and then invite those whose bids have 
not been rejected to submit "final bids with pric es responsive to the revi sed bidding documents".  
49 Procurements valued at less than T$100,000 are a pproved and signed by the head of the procuring 
entity.  
50 Procurements of supply services worth more than T$500,000 are considered unlikely. 
51 The notices are posted in the Maitangi Tonga, i.e. th e official website for publications in Tonga, and in 
the Chronicle  newspapers. 
52 The Procurement Division is to draw up lists of specialists to serve on review panels. Each panel 
should have a minimum of three members.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 39 - 
 
  3.4.6  State trading, state-owne d enterprises, and privatization 
3.72.  In a study prepared for the Asian Development Bank in 2008, the authors highlighted the 
need to reduce the presence of the State in the economy as it was constraining the private sector.
53 Noting the low yield of many government assets, the study recommended more effective 
management of Tonga's state-owned enterprises, an d subsequent privatization or outsourcing, as 
well as transparent public-private partnerships. The establishment (in 2006) of a Ministry of Public Enterprises to develop a centralized, coordinated approach to the stewardship of state assets was 
noted as a positive development.  
3.73.  The Government of Tonga recognizes the pr ivate sector as an engine of economic growth, 
and policies formulated in the national development plans have advocated the corporatization of selected commercial activities owned by the Government, and privatization in a timely manner.
54 
Privatizations are motivated by efficiency considerations, to avoid conflicts of interest between the 
State as an owner and a market regulator, to ea se the financial burden on the Treasury, and to 
support private-sector development where it has already demonstrated its capacity to provide the 
needed services.  
3.74.  State-owned enterprises are thought to account for roughly 5% of Tonga's GDP. The 
portfolio of state-owned enterprises (Table 3.7) is  managed by the Ministry of Public Enterprises.55 
As stipulated in the Public Enterprises Act No. 25 of 2002, the enterprises file their business plans 
(including dividend policy) with the Ministry at the beginning of the financial year, provide mid-term status reports, and submit their final audited statements and annual reports. Dividends are paid to the Ministry.
56 In case of a reported loss, the board of the enterprise will be requested 
to resign. 
Table 3.7 State-owned enterprises in Tonga 
Name of enterprise Nominal value 
per share (T$) State-owned 
shares Total State 
shareholding 
(in T$) 
Port Authority Tongaa .. .. 10,949,097 
Tonga Airports Limited 1 36,543,226 36,543,226 
Tonga Broadcasting Commissiona .. .. 2,346,893 
Tonga Communications Corporation 1 14,243,639 14,243,639 
Tonga Development Bank 10 1,053,019 10,530,190 
Friendly Islands Shipping Agency Ltd.    
Tongatapu Market Limited 1 1,600,000 1,600,000 
Tonga Post Limited 1 1,807,915 1,807,915 
Waste Authority Limited 1 1,000 1,000 
Tonga Water Boarda .. .. 2,065,040 
Tonga Power Limited 33,784 1,031 34,830,892 
Tonga Forest Products Limited 1 3,593,000 3,593,000 
Tonga Export Quality Management Ltd. .. 1 .. 
Tonga Assets Management & Associates Ltd. .. 1 .. 
Tonga Cable Ltd. .. .. 40,000,000 
.. Not available. 
a Ports Authority Tonga, Tonga Broadcasting Co mmission, and Tonga Wate r Board are statutory 
bodies and hence not covered by the Companies Act 1995. 
Source: Ministry of Public Enterprises. 
                                               
53 Asian Development Bank (2008). 
54 Policy statements on state ownership and privat ization are contained in the Strategic Development 
Plan 2006/07-2008/09, the National Strategic Planning Framework 2010, and the Tonga Strategic Development Framework 2011-2014.  
55 Not listed in Table 3.7, the publication Tonga Weekly  is owned by the Ministry of Information and 
Communications.  
56 The Ministry receives approximately T$3 million in dividends annually.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 40 - 
 
  3.75.  Among the largest companies in the portfolio, Tonga Power was formed in 2008 when it was 
awarded a concession contract by the Electricity Commission of Tonga.57 Tonga Power generates 
and distributes electricity in a four-grid system (across the islands of Tongatapu, Vava’u, Ha’apai 
and ‘Eua ), and provides infrastructure services such as electrical service lines.  
3.76.  Tonga Airports Limited, established in July 2007, operates six airports in Tonga. The 
enterprise has approximately 130 employees and is responsible for various services including 
passenger-processing facilities, rescue and firefighting, airside security, and aircraft and car park 
services. The air terminal services have been outsourced to a private company.  
3.77.  Tonga Cable Ltd. was made a public enterprise and included in the portfolio of state-owned 
enterprises in May 2013. At present, the Government  of Tonga owns 80% of the enterprise whilst 
Tonga Communications Corporation (TCC) holds 20%. The Ministry is currently looking for options 
for TCC to divest its stake.58  
3.78.  As a first step towards privatization, the Small Industries Center, operating the Ma'ufanga 
and Neiafu industrial estates, was made a public enterprise (Tonga Assets Management & 
Associates Ltd. – TAMAL) in 2011. The Ministry of Commerce, Tourism and Labour estimated the 
market value of the two properties at some T$9.6 million.  
3.79.  Privatization activities since 2006 include th e sale of Leiola Group Limited, the operator of 
Tonga's duty-free shops, to a local investor in July 2008, and Tongatapu Machinery Pool Limited in 
late 2008. The Sea Star Fishing Company Limited was initially sold in 2007, but as no payment was made, the agreement was revoked and the company was returned to the portfolio of 
state-owned enterprises. Privatization is again being considered in connection with the planned 
renovation of its processing plant.  
3.80.  Following an unsuccessful attempt to privatize Tonga Print Limited in 2012, the enterprise is 
to become a subsidiary of Tonga Post Limited.  The holding company Tonga Investment Limited 
was wound up during 2013 as its stakes in various projects had been sold off. The International 
Dateline Hotel was returned to the Ministry of Finance and National Planning in 2013 as a first step 
towards privatization.  
3.81.  In the WTO accession negotiations, Tonga ma intained that it had no enterprises that met 
the definition of a state-trading enterprise a ccording to Article XVII of the GATT 1994 and the 
Understanding on the interpretation of that Article. Tonga has not notified any state-trading 
enterprises to the WTO.  
3.4.7  Competition policy  3.82.  Tonga has no dedicated competition law or competition enforcement agency. The Consumer 
Protection Act No. 15 of 2000 contains elements of competition policy in provisions relating to, for 
example, monopolization (Section 30), exclusiv e dealing (Section 24), price discrimination 
(Section 25), refusal to sell, false representation s, and misleading or deceptive conduct. The Act 
assigns responsibilities in this area to th e Ministry of Commerce, Tourism and Labour.
59 Its 
Inspectorate Division is currently administering the Act, and the Ministry is seeking to reinforce the 
capacity of the division to improve implementation of the Consumer Protection Regulations. 
3.83.  Provisions dealing with inappropriate business conduct liable to cause confusion with respect 
to another's enterprise, damaging his/her goodwill  or reputation, misleading the public, or other 
acts such as the abuse of secret information, are dealt with in the Protection Against Unfair Competition Act No. 19 of 2002. No prosecutions under the Act appear to have taken place to 
date. 
                                               
57 Prior to that, power production was a private-owned monopoly (Shoreline).  
58 The project to build a submarine fi bre optic cable to Fiji was initially financed by the World Bank, the 
Asian Development Bank, and TCC. The 20% stake correspon ds to TCC's investment in  the cable, but as TCC 
will also be a major user of it, TCC should not remain a long-term owner in the company.  
59 The Act foresees the creation of a Consumer Affairs Division, headed by a director. The director would 
be the principal enforcement officer, and lead the pr osecution of offences under the Act; issue notices, 
directions, or warnings; and approve exclusive dealing arra ngements, as appropriate.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 41 - 
 
  3.4.8  Price controls 
3.84.  The Price and Wage Control Act (1988 revised edition) constitutes the legal basis for price 
regulation of goods and services in Tonga.60 The Ministry of Commerce, Tourism and Labour has 
been designated the competent authority for the control of prices.61 According to the Ministry, 
measures (maximum prices) are currently in place for taxi fares, which are regulated by distance; 
bus fares; and charges for the rental of trucks and lorries. While the standard size of a loaf of bread (454 grams) is regulated, the price of bread is not.  
3.85.  Based on a Tonga fuel-price template, the Ministry establishes recommended wholesale 
prices for diesel, kerosene, and petrol. Prices are reviewed on a monthly basis, and changes mainly reflect relevant price movements in the Singapore market, the evolution of freight rates for fuel shipped to Tonga, and changes in exchanges rates.
62  
3.86.  All communication services are subject to indicative tariff ranges set by the Communications 
Division at the Ministry of Information and Communications (section 4.4.3). 
3.4.9  Trade-related intellectual property regime 
3.87.  Tonga acceded to the Convention establishi ng the World Intellectual Property Organization 
(WIPO) in June 2001 (Table 3.8). At the same time, Tonga became party to the Paris and Berne Conventions. The two conventions are self-executi ng under Tonga's legal regime. Tonga is not a 
member of the UPOV Convention, but holds observer status in the UPOV Council. Accession to 
other IP treaties and conventions, such as the Pa tent Cooperation Treaty, the Madrid Protocol, the 
Hague Agreement, the Geneva Phonogram Convention, the WIPO Copyright Treaty, the WIPO Performance and Phonogram Treaty, and the Rome Convention (1961) is still in preparation.  
Table 3.8 WIPO treaties in force for Tonga 
Treaty Subject-matter (non-exhaustive list of 
elements) Date of 
accession Date of entry 
into force 
WIPO Convention Constituent instrument of WIPO 14 March 2001 14 June 2001 
Berne Convention Copyright (artistic, li terary, etc. works) 14 March 2001 14 June 2001 
Paris Convention, 
1883 - Stockholm 
Act, 1967 Industrial property (pat ents, trademarks, utility 
models, trade names, industrial designs, geographical indications and appellations of 
origin, unfair competition, enforcement, etc.) 14 March 2001 14 June 2001 
Note: The three conventions – substantive provisions – in force in WIPO, mentioned in the TRIPS 
Agreement, are: the Paris Convention (Stockholm Act, 1967), the Berne Convention (Paris Act, 
1971), and to a lesser degree, the Rome Convention. The substantive provisions of the Washington 
Treaty on Intellectual Property in Respect of Integrated Circuits (IPIC) of 1989 are also incorporated into the TRIPS Agreement. However, the treaty has not yet entered into force.  
Source: WTO Secretariat, based on WI PO online information. Viewed at: http://www.wipo.int . 
3.88.  Tonga joined the WTO with a commitment to fully implement the WTO TRIPS Agreement no 
later than 30 June 2008. In accordance with Article 63.2 of the TRIPS Agreement and with the procedure and practice of the Council for TRIPS
63, Tonga notified its main dedicated IP laws and 
regulations in April 2009.64 Tonga's legislation was reviewed by other Members in October 2009.65 
                                               
60 The original Price and Wage Control Act dates back to 1947.  
61 The Ministry intends to review the list of 15 goods (mostly essential food-basket items and fuel) 
subject to price control.  
62 Ministry of Information and Comm unication online information, " New Petroleum Prices for June-July 
2013" . Viewed at: http://www.mic.gov.to/news-to day/press-releases/4471-new- petroleum-prices-for-june-
july-2013 .  
63 WTO Document IP/C/2, 30 November 1995. 
64 Tonga notified its Copyright Act (document IP/N/1/TON/C/1), the Industrial Property Act (document 
IP/N/1/TON/I/1), the Protection of Layout-Designs (Topographies) of Integrated Circuits Act (document IP/N/1/TON/L/1), the Protection of Geographical Indications Act (document IP/N/1/TON/G/1), and the Protection against Unfair Competition Act (document IP/N/1/TON/O/1). An overview of ongoing work and 
planned revisions was presented in document IP/N/1/TON/1, 2 June 2009.  
65 Tonga's introductory statement and its respon ses to questions raised by two Members are 
summarized in document IP/Q/TON/1, IP/Q2/TON/1, IP/Q3/TON/1, IP/Q4/TON/1, 7 September 2010.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 42 - 
 
  The Industrial Property Act 1994 was amended in 2009, inter alia , to include new provisions on 
compulsory licensing (emergency measures) (Table 3.9). 
Table 3.9 Tonga's intellectual pr operty laws and regulations 
Relevant legislation Brief description 
All subject matters  
Industrial Property Act 1994 
(Act No. 19 of 1994), Part VII General provisions. 
Copyright and related rights  
Copyright Act 2002 
(Act No. 12 of 2002) Protection is provided for original literary and artistic works, including 
computer programs and photographic works. Economic and moral rights 
protected during the life  of the author and for 50 years after his death; 
25 years protection for a work of applie d art. Part II of the Act covers the 
protection of performers, producer s of phonograms and broadcasting 
organizations.  
Trade marks (including trade descriptions)  
Industrial Property Act 1994 
(Act No. 19 of 1994), Part V The Act provides protection for marks,  collective marks, and trade names. 
Registration is valid for 10 years from the application filing date, 
renewable for consecutive periods of 10 years.  
Geographical indications  
Protection of Geographical 
Indications Act 2002 (Act 
No. 17 of 2002) The Act is designed to provide a syst em of protection for geographical 
indications that is uncomplicated and in compliance with international 
obligations. Geographical indications are applied to natural and 
agricultural products and to the produc ts of handicraft and industry such 
as wood, sugar, fruit, wine, coffee, te a, tobacco, textile goods, and woven 
goods.  
Industrial designs  
Industrial Property Act 1994 
(Act No. 19 of 1994), Part IV Initial protection is for five years from the filing date of the application for 
registration. Registration may be renewed for two further consecutive 
periods of five years. Right may be as signed, or transferred by succession. 
Patents  
Industrial Property Act 1994 
(Act No. 19 of 1994), Part II 
and III A patent expires 20 years after the fili ng date of the application for the 
patent. Utility model certificates expire at the end of the seventh year 
after the date of filing of the application (no renewal possible). Provisions 
regarding non-voluntary licences are stipulated in Section 15 of the 
Principal Act and Section 16A of the 2009 (Amendment) Act.  
Plant varieties  
 A Bill on the protection of plant varieties is still pending. 
Layout-designs (Topographies) of Integrated Circuits  
Protection of Layout-Designs 
(Topographies) of Integrated 
Circuits Act 2002 (Act No. 18 
of 2002) Act drafted along the lines of the Washington Treaty and the TRIPS 
Agreement. Protection may only be  obtained for layout-designs or 
topography of integrated circuits that  are original. Protection begins on 
the date of first commercial exploitation  anywhere in the world, or on the 
filing date for registration, and ends 10 years after the date of 
commencement of protection. 
Protection of undisclosed information  
Protection Against Unfair 
Competition Act 2002 
(Act No. 19 of 2002) Section 9 stipulates that any act or prac tice, in the course of industrial or 
commercial activities, that results in the disclosure, acquisition or use of 
secret information without the consent of  the person lawfully in control of 
that information and in a manner cont rary to honest commercial practices 
shall constitute an act of unfair competition. 
Source: Legislation notified by Tonga in 2009, revised and updated by the WTO Secretariat and the 
authorities of Tonga. 
3.89.  The Registry and Intellectual Property Office (RIPO) at the Ministry of Commerce, Tourism 
and Labour is responsible for administration of co pyright and industrial property in Tonga. Within 
RIPO, the Intellectual Property Unit is responsibl e for the registration of trademarks, industrial WT/TPR/S/291/Rev.1 • Tonga 
 
- 43 - 
 
  designs, patents and utility models, and geographical indications (Table 3.10).66 RIPO has an MoU 
with IP Australia and maintains close links, particularly for the appraisal of trademark applications. RIPO also has a network of contacts with regional counterparts.
67  
Table 3.10 Trademark registrations in Tonga, 2000-2013 
Year Applications 
recorded Registered 
marks Renewals Abandoned 
2000 1,023 974 45 28 
2001 365 300 0 0 
2002 101 94 0 0 
2003 72 60 0 0 
2004 76 67 53 0 
2005 93 88 0 0 
2006 134 97 0 0 
2007 71 6 57 0 
2008 147 54 61 0 
2009 90 55 42 2 
2010 141 146 308 17 
2011 215 119 11 6 
2012 186 152 65 25 
2013 107 54 7 0 
Note: The relevant Act entered into effect in 2000, and required re-registration of existing trademarks by 
2002. The examination of new applications did not commence until 2003.  
Source: Ministry of Commerce, Touris m, and Labour; IP  Unit Division. 
3.90.  Provisions relating to sanctions and enforcement are scattered across Tonga's legislation, in 
part in the IP laws themselves, e.g. the Copyright Act (Part III), the Industrial Property Act 
(Section 43), the Geographical Indications Act (Sec tion 8), and the Protection of Layout-Designs 
(Topographies) of Integrated Circuits Act (Sections 15 and 16).68 The Police Act and the 
Magistrates' Courts Act contain provisions relating to search and seizures. The Customs and Excise 
Management Act has provisions on the suspension of the release of suspected illegal goods, and 
imposes penalties on those knowingly importing or offering counterfeit goods and implements for sale (Section 94). The customs officer may apply to a Magistrate for a warrant to seize prohibited 
or restricted goods. The Customs and Excise Ma nagement Order (Schedule 1) lists "counterfeit 
goods" among the prohibited imports as well as "all books and any written or printed matter and 
sounds and visual recordings of which the Minister shall by notice declare to be prohibited imports 
on account of any copyright or intellectual property right laws which apply in the Kingdom". 
Provisions in the Consumer Protection Regulations may also be used to address imports of counterfeit goods. The Supreme Court Rules 2007 govern judicial proceedings and prescribed modalities for civil proceedings in the superior courts.  
3.91.  Prior to its WTO accession, Tonga was preparing a draft law to strengthen the enforcement 
of intellectual property rights. The draft law did not impose criminal penalties for the infringement of intellectual property rights and did not stipulate any specific civil penalties, but established 
procedures and measures to be followed by the court and the Tonga Customs Service in the event 
of infringement or imminent infringement actions. According to the information provided by Tonga to the Council for TRIPS in 2009, the Enforcement and Border Measures Bill was being reviewed by 
the Law Committee before being tabled in the Legislative Assembly.
69 Consideration of the Bill has 
                                               
66 The national data differ substantially from the WI PO database. According to WIPO statistics, one 
resident and 105 non-resident trademark applications were filed in Tonga in 2002. In total, 15 trademark applications were filed "abroad" 2003-10, and 6 registra tions have been granted. One patent application was 
filed (in 1997). 
67 A regional trademark applicatio n system is under development, and Pacific island countries are 
seeking to adopt a regional model law for traditional knowledge.  
68 Wilful infringement of any right protected under the Copyright Act ma y be sanctioned with a fine not 
exceeding T$20,000 or up to three years' imprisonment, or both. Criminal liability for other types of wilful 
intellectual property infringement typically amounts to a fine not exceeding T$5,000 or imprisonment for up to 
five years, or both.  
69 WTO Document IP/N/1/TON/1, 2 June 2009. WT/TPR/S/291/Rev.1 • Tonga 
 
- 44 - 
 
  been delayed to minimize overlapping and inconsistencies vis-à-vis the Customs Act. The IP 
provisions under the Customs Act have not been effectively enforced to date. 
 WT/TPR/S/291/Rev.1 • Tonga 
 
- 45 - 
 
  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Main features 4.1.  Agriculture is the backbone of the Tongan economy, for subsistence, as a source of cash 
income, employment, and export earnings.
1 The sector contributed about 14% to GDP in 2011/122 
(Table A1.1), over half of which was not sold but for own consumption. The main staples are root crops, such as taro, manioc, yams, and sweet potatoes. Pigs are customarily kept for social 
obligations, such as weddings or funerals. Tongan agriculture is prone to natural disasters, 
particularly cyclones and occasional droughts.  
4.2.  Tonga's agricultural area covers about 31,000 ha
3, and soils are generally fertile, partly of 
volcanic origin. In the Tongan system of land tenure, most land is held in royal estates and 
hereditary estates of the nobles. Each male Tongan head of household is legally entitled to a land 
grant, from the noble of the village or the Gove rnment, of up to 3.34 ha as a heritable "tax 
allotment" (Section 7 of the Land Act) but in practice there is not enough land.4 The sale of land is 
prohibited; land may be leased and mortgaged by both men and women. It appears that some 
fertile land is under-utilized, in part because of  the large number of expatriate Tongan landowners. 
4.3.  Tonga is a net importer of agricultural pr oducts, with a rising trend (Chart 4.1). Squash 
pumpkins, manioc, taro, coconuts, vanilla, and kava are Tonga's principal export commodities 
(Table A4.1). Following its introduction in the 1980s, squash found a niche market in Japan and Korea during October-December and became Tong a's number one cash crop by far (Chart 4.1). 
Exports of root crops and kava are driven mainly by demand from Tongans living abroad. Kava 
exports are facing import restrictions in some countries, notably Australia.
5 
Chart 4.1 Trade in agricultural products, 1995-2010 
010,00020,00030,00040,00050,00060,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$ '000
Exports of squash 
and pumpkinsImports
Exports
 
Source: FAOSTAT online information. 
4.1.2  Institutional and policy framework 
4.4.  The Ministry of Agriculture, Food, Fore sts and Fisheries (MAFFF) is responsible for the 
formulation and implementation of agricultural policy. While there is no formal strategy in force for 
the agriculture sector, the main policy objectives relate to export promotion, food security, and 
                                               
1 According to the last agricultural census in 2001, al most two thirds of the population were active in 
market production or su bsistence agriculture. 
2 Agricultural GDP (excluding forestry) is estimated at T$110 million for 2011/12, which includes an 
estimate of "non-market" production. See Tonga Depart ment of Statistics online  information. Viewed at: 
http://www.spc.int/prism/tonga/ . 
3 FAO online information. Viewed at: http://faostat3.fao.org/home/index.html#HOME . 
4 According to the 2001 agricultural census, 41% of Tongan households owned a tax allotment. 
5 Commercial imports of kava into Australia are pr ohibited, while a maximum of 2 kg is allowed per 
incoming passenger. WT/TPR/S/291/Rev.1 • Tonga 
 
- 46 - 
 
  climate change, according to the authorities. Various projects, often donor-funded, are aimed at 
stimulating exports (e.g. water melons for export to New Zealand) or substituting imports, in order to contain the trade deficit in food. 
4.1.3  Border measures 
4.5.  MFN tariffs are the only instrument of protec tion afforded to agricultural products. There are 
no tariff quotas or preferential tariffs. Import licensing (permits) is applied for SPS reasons (protection of human, plant, or animal health and safety). Applied MFN tariffs on agricultural 
products (WTO definition) averaged 10.7% in 2013, ranging from 0-20% (Table A3.1).  
4.1.4  Domestic support 4.6.  Tonga's AMS is bound at zero in its Schedule of Commitments.
6 All domestic support 
measures notified by Tonga are in the general services category of the Green Box (totalling 
T$1 million in 2009/10).7 Some general services are financed by the MAFFF, whose budget has 
been in the range of T$5-6 million, covering mainly wages and salaries. Other research and infrastructure measures have been supported with EU funds through the Stabex facility
8, including 
assistance for vanilla replanting, kava development, and post-harvest treatment. Stabex projects 
have been completed, according to the authorities.  In its place the EU provides assistance through 
its "Vulnerability Flex" mechanism (V-FLEX), aimed at helping developing countries most affected 
by the global economic crisis. In line with Tonga's Strategic Development Framework 2011-14, the 
EU's V-Flex budget support to Tonga (T$13.8 million or €5.5 million) has been largely allocated to the development of renewable energies (section 4.2.6.3).  
4.7.  Cultivation of root-crops, squash, paper mulberry, pandanus, and kava is among activities 
reserved for Tongans (Table 2.3), although except ions may be granted, according to the Ministry 
of Commerce, Tourism and Labour.  
4.1.5  Export measures 
4.8.  Tonga has a "zero commitment" in its Schedule with respect to agricultural export subsidies.
9 
The Government notified the WTO Committee on Agriculture that no export subsidies were provided in 2007/08 and 2008/09
10, and this position remains valid, according to the authorities. 
Tonga applies no export duties. 
4.9.  In 2012, an Agricultural Export Marketing Fund was established that provides short-term 
loans to exporters of agricultural commodities. The T$1 million credit scheme set up within the 
framework of the 2012/13 Budget is administered  by the Ministry of Finance and National 
Planning. While the loans are available to exporter s of all produce, most have been disbursed to 
squash exporters, according to the authorities.  The interest rate (1% per quarter, as of 
February 2013) is concessional.  
4.2  Fisheries 
4.2.1  Main features 4.10.  The fisheries sector contributed about 2.6% to GDP in 2011/12 (Table A1.1). Tonga's major 
offshore fisheries are tuna long-lining, and snapper and grouper (Chart 4.2 and Table A4.2).
11 
Tuna fishing was closed to foreign vessels between 2004 and 2011. In late 2011, the Government reopened the Tongan waters to foreign fishing vessels with the objective of reviving the tuna fishery.  
                                               
6 WTO document Schedule CLIX - Kingdom of Tonga, Part IV, Section I. 
7 WTO documents WT/ACC/SPEC/TON/3/Rev. 3, 28  October 2005 and G/AG/N/TON/3, 12 January 2012. 
8 The Stabilisation of Export Earnings Programme (Stabex). 
9 Schedule CLIX - Kingdom of Tonga, Part IV, Sectio n II. Tonga notified its Accession working party that 
no export subsidies were provided during the "representative period" of 1996/97-1998/99. See WTO document 
WT/ACC/SPEC/TON/3/Rev. 3, 28 October 2005. 
10 WTO document G/AG/N/TON/1, 27 June 2011. 
11 For an overview of Tonga's fisheries, see FAO (2010).  WT/TPR/S/291/Rev.1 • Tonga 
 
- 47 - 
 
  4.11.  Tonga's fishery policy instruments include import tariffs on fish; tariff and consumption tax 
exemptions for fishing vessels and certain inputs; access (licence) fees for foreign fishing vessels; fuel subsidies; and export restrictions and licensing.  
Chart 4.2 Exports of fisheries products, 2000-12 
02004006008001,0001,2001,4001,6001,8002000200120022003200420052006200720082009201020112012 01,0002,0003,0004,0005,0006,0007,0008,0002000200120022003200420052006200720082009201020112012Value:  US$ '000 Volume:  tonnes
 
Source: Data provided by the authorities. 
4.2.2  Institutional and legal framework 
4.12.  The Fisheries Department of the MAFFF is responsible for conservation, management, 
licensing, and development of fisheries resources. The Tonga Defense Services provides 
surveillance support and the Crown Law Department handles fisheries prosecutions. The principle fisheries legislation is the Fisheries Management Act 2002, supported by regulations and fishery management plans.
 Management plans are in place for tuna (2002), snapper and grouper (2007), 
sea cucumber, and aquarium fish.12 Aquaculture is governed by the Aquaculture Management Act, 
2003. Tonga is a member of, inter alia , the Pacific Island Forum Fishery Agency, and the Western 
and Central Pacific Fisheries Commission.  
4.2.3  Market access  
4.2.3.1  Access to the Tongan fisheries waters  4.13.  Access to the Tongan fisheries waters is governed principally by the Fisheries Management 
Act (FMA) in conjunction with fishery management plans and vessel-licensing requirements; the 
Foreign Investment Act; and access agreements with foreign countries. The 1987 Multilateral Treaty on Fisheries between Certain Governments of the Pacific Island States and the Government of the United States of America allows U.S. purse seine fishing vessels to fish in the waters of the 
16 Pacific island states.
13 So far, only two trips of U.S. purse seiners into Tongan waters have been 
recorded. The U.S. Treaty, due to expire in 2013, was renewed for 18 months under a transitional arrangement.  
4.14.  For tuna long-line fishery, the Tonga National Tuna Management and Development Plan 
2012-2015 establishes a total allowable catch of 8,000 tonnes annually for all tuna species. In practice, the quota has not been exhausted, with an annual tuna catch in the range of 600 to 
                                               
12 See Fisheries Department onli ne information. Viewed at: http://www.tongafish.gov.to/Fisheries 
Plan.html . 
13 Australia; Cook Islands; Federated States of Mi cronesia; Fiji; Kiribati; Marshall Islands; Nauru; 
New Zealand; Niue; Palau; Papua New Guinea; Samoa; Solomon Islands; Tonga; Tuvalu; and Vanuatu. WT/TPR/S/291/Rev.1 • Tonga 
 
- 48 - 
 
  1,900 tonnes in 2008-12.  Most tuna is exported fresh or chilled to the United States (including 
American Samoa), Japan, and New Zealand. 
4.15.  Licensing requirements apply to Tongan and foreign fishing vessels (Table 4.1). In addition 
to the vessel registration requirement with the Marine and Ports Division (section 4.4.4.2.1), 
fishing vessels must be re-registered with the Fisheries Department (Fishing Vessel Register). 
There are nominal licensing fees for local vessels, depending on the size of the fishing vessel. Foreign fishing vessel licence fees reached US$45,000 in 2013 for vessels exceeding 500 GRT. The 
number of tuna fishing vessels operating in Tongan waters declined to 2-3 in 2011, from 11-15 in 
2000-07. In an effort to stimulate fish exports,  24 tuna fishing vessels were licenced in 2013, 20 
of which were foreign.  
4.16.  Tonga has an offshore fishery for snapper and grouper (deep-sea-bottom fishing), for which 
no total allowable catch has been established. According to the Foreign Investment Regulations 
2002, "bottom fishing in water deeper than 500 m" is a restricted activity subject to the provisions 
of the Tonga National Snapper and Grouper Management Plan (Table 2.2).  
4.17.  Coastal fisheries, including sea cucumber, are reserved for Tongans (Table 2.3). Access is 
open to all communities on a first-come-first-served basis. To address the depletion of fish stocks, some coastal fisheries have been declared Special Management Areas by the Minister (FMA 
Article 13) to give local communities some management control over fishery resources. 
Commercial harvesting of sea cucumber started in the 1980s and became a major export business; however, due to overfishing, a ten-year moratorium was imposed in 1998-07 (Table A4.2). Since 2008, a seasonal quota has been in place for commercial harvesting (closed 
season from 30 September to 31 March). Sea cucumber exports are destined mainly for China. 
Table 4.1 Main features of the Tongan  offshore fisheries licensing regime 
Fishery Type of licence Licence term Licence fees 
per vessel Number of 
licenced & 
operational 
vessels 
(2013) 
Tuna  Local fishing vessel licence (Article 29) 
Vessel must be:  - wholly owned by a company (society,  association, persons) incorporated or  established in Tonga; or  - wholly owned by the Government of Tonga  or statutory body;  - wholly owned by a Tongan natural  person(s); 
A locally-based foreign fishing vessel can be nominated against the licence for up to 2 years. Valid for one year, 
subject to annual endorsement by the CEO of the MAFFF; transferable depending on 
vessel size   2 
Locally based foreign fishing vessel licence 
(Article 31) 
Definition: 
 - foreign fishing vessel based in and fully 
 controlled or operated in Tonga; 
 - fishes exclusively in the fisheries waters of 
 Tonga; 
 - and lands all of its catch or a substantial part 
 of its catch in Tonga. Same as above depending on 
vessel size: 
US$9,000-
20,000 1 
Foreign fishing vessel licence (Article 38) 
 Subject to access 
agreements agreed 
with the Government of Tonga; valid for one year; non-transferable 
 depending on 
vessel size:  
US$ 14,000–
45,000  
(50% domestic 
landing) 
 
US$ 20,000-
45,000  
(100% landing 
outside Tonga) 20 
Snapper 
and 
grouper  Local fishing vessel licence (Article 29) 
 Same as for tuna Same as for 
tuna 5 
Source: Fisheries Management Act (FMA), 2002; an d information provided by the authorities. WT/TPR/S/291/Rev.1 • Tonga 
 
- 49 - 
 
  4.2.3.2  Import tariffs 
4.18.  Applied MFN tariffs on fish and fishery products averaged 10.6% in 2013, ranging from 
0-20% (Table A3.1).  
4.2.4  Subsidies 
4.19.  A fuel subsidy (fisheries fuel concession scheme) was introduced in 2000 to support the 
development of fisheries as a strategic industry (Table 4.2). Licenced fishers are thus exempted 
from the payment of excise taxes on motor fuels. The fuel concession is granted with respect to 
locally registered vessels, including foreign vessels registered in Tonga, as well as foreign fishing 
vessels that unload 50% of their catch in Tonga. The scheme is implemented by the Fuel Concession Committee of the Fisheries Department, which issues refuel certificates. 
4.20.  In 2013, a tariff and consumption tax exemption was introduced, including for fishing boats, 
baits, engines and spare parts, fishing gear (section 3.2.4).  
Table 4.2 Tonga's main subsidy schemes, 2009-13 
(T$ '000) 
 2009/10  2010/11  2011/12 2012/13  
Diesel fuel for use in commercial fishing boats  426.6 617.2 656.5 1,133.4 
Fuel and lubricants for use in aircraft for 
international air services  832.6 1,679.0 5,870.8 7.076.8 
Fuel and lubricants for use in aircraft for domestic 
commercial air services  412.8 475.5 2,562.1 2,743.5 
Fuel and lubricants for use in domestic shipping 
services 669.2 669.2 2,314.0 1,206.1 
Diesel fuel for use in the generation of electricity by 
Tonga Power Ltd.  5,482.3 6,071.5 19,739.5 20,034.1 
Other 2,818.2 8,730.9  74,426.8 59,007.4 
Total 10,641.7 18,243.3 105,569.7 91,201.4a 
a The numbers in this column do not add up to the total. 
Source: Customs Tariff, Schedule 2; Ministry of Finance and National Planning (2012), Budget Statement 
2012-2013 , Nuku'alofa; and information provided by the Tongan authorities (2011/12, 2012/13). 
4.2.5  Export measures 
4.21.  Exports of fish, fish products and other marine products, including live aquarium fish, giant 
clams, and corals, are subject to licensing (FMA Article 35). Licensing conditions include 
compliance with the relevant fisheries management plan and any export restrictions that may be 
in force (Fisheries Conservation Regulations 2008 ). Export licences are issued by the Fisheries 
Department, subject to a fee of T$20.14 Violations of export licensing requirements are liable to 
fines of up to T$500,000. The export levy (tax) on fish was zero in 2013 (section 3.3.2).  
4.2.6  Mining, energy and water 4.2.6.1  Minerals 4.22.  Mining activity for seabed minerals is at the exploration stage. The prospective deposits are 
located at the bottom of the Pacific Ocean in depths of 4,500-6,000 m both inside Tonga's EEZ and 
in international territory.
15 T he  mine ral s  are  in the  form of nug g e ts  ab out the  s ize  of g olf b a lls  
(so-called poly-metallic nodules) that are potentially rich in various metals, including gold, silver, 
copper, nickel, manganese, cobalt, zinc, and other trace metals.  
                                               
14 Fisheries Management (Processing and Export) Regulations 2008. 
15 The international seabed resources are administered  by the International Seabed Authority under the 
UN Convention of the Law of th e Sea, and related agreements. WT/TPR/S/291/Rev.1 • Tonga 
 
- 50 - 
 
  4.23.  The Ministry of Lands, Environment, Clim ate Change and Natural Resources is responsible 
for managing mineral resources and energy. Three companies currently hold exploration licences 
under the Minerals Act, valid for five years (Blue Water Metal, Tonga Offshore Mining Ltd., Korean 
Oceanographic Research Development Institute). In 2012, Tonga Offshore Mining Ltd. (a 
subsidiary of Nautilus Minerals of Canada) announced the discovery of precious metal deposits on 
its Tongan tenements.16 Moreover, under the sponsorship of the Government of Tonga, Tonga 
Offshore Mining Ltd. was awarded an exploration licence in 2011 by the International Seabed 
Authority, to explore in a marine area that lies in international waters.  
4.24.  A draft Seabed Minerals Bill is currently under consideration, according to the authorities. 
The Government has also undertaken to take appropriate action "to protect the economy and the political system from any possible economic di sruption and potential corruption that might 
eventuate from a failure to effectively manage mineral wealth."
17  
4.2.6.2  Oil, gas and petroleum products 4.25.  Tonga's energy requirements are largely met by imports, mainly diesel and other refined 
petroleum products. Exports of goods and servic es are barely sufficient to cover the soaring 
energy import bill, which accounts for about 25% of merchandise imports and is equivalent to about 10% of GDP (Tables A1.1 and A1.2). The suppliers of refined petroleum products are Pacific 
Energy Ltd., Total, and Uata Shipping Line of Tonga, mainly from Singapore, with transhipment via 
Fiji. Safety regulations for transport and storage of petroleum products are contained in the Petroleum Act and the petroleum regulations, 1988.  Natural gas (LPG in bulk) is imported by 
Tonga Gas (a subsidiary of Fiji Gas/Origin Energy  of Australia), and distributed by Home Gas Ltd. 
of Tonga. 
4.26.  Petroleum products are subject excise tax (Table A3.2). Activities exempt from fuel excise 
duties include commercial fishing; domestic and international air transport; domestic maritime 
passenger transport; and fuel used in electricity generation (Table 4.2). Petroleum products sold 
on the domestic market are subject to price controls (section 3.4.8).  
4.27.  There is no domestic production of oil or natural gas.
18 Hydrocarbon exploration and 
production is governed by the Petroleum Mini ng Act, 1988 and its regulations. In 2010, the 
Ministry of Lands, Environment, Climate Chan ge and Natural Resources awarded exploration 
licences valid until 2018 to three companies of the Modulus Baringer Group (Modulus Pacific Tonga, Baringer Tonga Central Ltd. and Baringer Tonga South Ltd.).  
4.2.6.3  Electricity 
4.28.  Since Tonga's accession to the WTO, significant reforms have been undertaken in the 
electricity sector, aimed at improving efficiency an d sustainability of electricity supply. Tonga is 
virtually 100% dependent on long-distance imports of diesel for electricity generation. As a 
consequence, electricity tariffs are high by international standards, despite government subsidies for electricity generation. The Government's long-term, donor-supported, energy-sector strategy 
to reduce the economy's vulnerability to oil price shocks is set out in the Tonga Energy Road Map 
2010-2020.
19 Responsibility for (on-grid) electricity policy is shared between the Prime Minister's 
Office and the Ministry of Finance and National Planning.   
4.29.   Restructuring and regulatory reform of the electricity sector began in 2008 when the 
Government re-purchased the electricity assets from the Shoreline Group, a privately owned 
Tongan company. Tonga Power Ltd. (TPL) was established in July 2008, as a 100% state-owned utility (Table 3.7). TPL provides electricity under an exclusive concession regime governed by the 
Electricity Act of 2007 and the Electricity Concession Contract between the Government and TPL. 
The contract sets, inter alia , safety and performance standards, regulates tariffs, and is 
                                               
16 See Nautilus Minerals online information at: http://www.nautil usminerals.com/s/Home.asp . 
17 Tonga Strategic Development Framework (TSDF) 2011–2014. Viewed at: 
http://www.ausaid.gov.au/countries/pacific/tonga/Documents/ tonga-strat-dev-frame-2011-2014.pdf . 
18 Shell began exploration for hydrocarbons on To ngan land in the 1970s, albeit without success. 
19 Tonga Energy Roadmap 2010-2020. Viewed at: http://www.tonga-energy.to/ . See also World Bank 
(2010). WT/TPR/S/291/Rev.1 • Tonga 
 
- 51 - 
 
  administered by the Electricity Commission, established in 2008.20 The contract, a publicly 
available document under Section 20(8) of the Electricity Act, ends on 30 June 2015 and may be extended for seven- year periods.  
4.30.  Tonga Power Ltd. generates, distributes, and sells electricity to approximately 
20,500 customers, including 3,963 commercial customers, on Tongatapu, Vava'u, Ha'apai, Eua, 
and the outer islands of Niuatoputapu and Niuafo'ou. Electricity tariffs follow international oil price trends (T$0.9274/kWh as of August 2013, equivalent to about US$0.52/kWH).
21 Since May 2009, 
TPL has charged a standard tariff across all grids and customers without any discounts. The 
subsidy for electricity generation (i.e. fuel exemption from excise taxes) rose to about T$20 million in the 2011/12 and 2012/13 budgets (Table 4.2). Elec tricity tariffs are subject to approval by the 
Electricity Commission, following a review of TPL's tariff adjustment proposals in a public hearing. 
TPL is permitted by law to pass on the fuel costs to consumers (on a quarterly basis) and charge 
an inflation-indexed non-fuel tariff.
22 The non-fuel component includes a regulated return on 
investment; investment plans require approval from the regulator. 
4.31.  The Tonga Energy Road Map contains a target of 50% renewable energy by 2012, which has 
proved to be elusive.23 About 25% of electricity production in 2000 was off-grid, mainly from 
biomass and solar PV. Renewable energy (off-grid only) is regulated by the Renewable Energy Act 
2008, which is administered by the new Renewable Energy Authority under the Ministry of Lands, 
Environment, Climate Change and Natural Resources. In 2012, the first solar facility (Maama Mai with a capacity of 1.3 MW) was connected to the grid on Tongatapu. There is currently no legal framework for a feed-in tariff regime. TPL may enter into purchase agreements (generation 
connection contracts) with independent power producers (IPPs). TPL permits IPPs to use its grid as 
a "storage battery" (i.e. selling and buying from the operator).  
4.2.6.4  Water 
4.32.  Tonga has limited fresh water resources, primarily in the form of groundwater.
24 In rural 
areas, the population relies mainly on collection of rain water. Rainfall is variable, depending on El Niño climate patterns and cyclones, with an annual average of 2,500 mm and 1,800 mm in the 
capital of Nuku'alofa.  
4.33.  The Tonga Water Board (TWB) is responsible for water supply, and operation and 
maintenance of the supply infrastructure in ur ban areas, in accordance with the Tonga Water 
Board Act, 2000. The TWB is a 100% state-owned co rporation (Table 3.7) with ownership of the 
infrastructure. TWB is required by law to operate on commercial principles, though it remains 
dependent on international financial assistance for infrastructure upgrading and extensions. At present, there is no sectoral regulator. TWB's flat tariffs (as of September 2013) are T$2.09./m
3 in 
Nuku'alofa, T$2.13/m3 in Vava'u, 2.11/m3 in Ha'apai, and 1.34/m3 in Eu'a.  
4.3  Manufacturing 4.34.  Tonga's small manufacturing sector contribu tes around 6% to GDP (Table A1.1). The main 
activity is food and beverage production (bak ing products, juices, soft drinks, coffee, water 
bottling, beer etc.). Other small-scale manufactu ring activities and products include arts and 
handicrafts (e.g. tapa cloth), printing, paints, construction materials, and small boats. Few 
enterprises engage in exports (e.g. Nonu Juice company, Tupu’anga Coffee, APCO Paints, Heilala 
Vanilla). Non-governmental institutions active in private-sector development include the Tonga 
Chamber of Commerce and Industries, Manufacture rs Association of Tonga, and Tonga Business 
                                               
20 The 3-5 member Electricity Commission is financed  through a fee included in the electricity price 
charged to customers. 
21 In 2011, the Government provided a temporary consumption subsidy of T$0.11/kWh (government 
policy obligation grant) to mitigate  the impact of a TPL tariff increase to an all-time high of T$0.98/kWh 
(without subsidy). 
22 See Electricity Act 2007, First Schedule. The fuel cost is the landed price of diesel as fixed by the 
"Competent Authority" (MRTL).  
23 See International Renewable Energy Agency (2013). 
24 SOPAC online information. Viewed at: http://www.pacificwater.org/pages.cfm/country-
information/tonga.html . WT/TPR/S/291/Rev.1 • Tonga 
 
- 52 - 
 
  Enterprise Centre (TBEC). The TBEC provides targeted assistance to SMEs registered and licenced 
in Tonga, through advice, mentoring, trai ning, and information on access to credit.25  
4.35.  Tonga's industrial policy has evolved as part of a broader tax reform programme that was 
carried out within the framework of Tonga's WTO accession.26 The Industrial Development 
Incentives Act, 1978 provided a range of tax ince ntives and exemptions from customs duties for 
activities such as manufacturing, until it was repealed in 2007. Recent regulatory reforms (e.g. business licensing) are aimed at improving the bu siness environment in Tonga (section 3.2.1). The 
introduction of a simplified tax regime for small enterprises with  a turnover of less than T$100,000 
(small business tax) is pending.
27 
4.36.  Tariffs are the main trade policy instrument. Applied MFN tariffs for manufacturing products 
(ISIC 3) averaged 11.5% in 2013 (Table A3.1). Local beer brewers, producers of alcoholic 
beverages, and tobacco manufacturers benefit from tariff exemptions on certain inputs under 
Chapter 98 of the Customs Act. Moreover, Tonga's excise taxes on certain tobacco products and alcoholic beverages are structured in a way that gives local production an advantage over 
imported products (section 3.2.6).  
4.4  Services 4.4.1  Main features 
4.37.  Services contribute over half of Tong a's GDP (Table A1.1). Most service sectors are 
overseen by sectoral regulators. The Ministry of Commerce, Tourism and Labour acts as Tonga's services enquiry point. Service suppliers are subject to business licensing requirements (section 3.2.1).  
4.38.  Tonga made substantial commitments under the GATS within the framework of its WTO 
accession.
28 It scheduled open and non-discriminatory regimes for 90 out of about 160 service 
subsectors. Most sector-specific commitments are "full commitments" (77) without any limitations 
on market access or national treatment, except mode 4, which is governed by Tonga's horizontal 
commitments. In certain service sectors, such as telecommunications, the commitments ensure open access across all sub-sectors and for all modes of supply, except mode 4 (Chart 4.3). 
Financial services also account for a significant number of commitments (20). On the other hand, 
few commitments were made in some commercially important subs ectors, notably in maritime 
services and business services.  
4.39.  In the communication sector, the commitments on audio-visual services do not cover radio 
and TV broadcasting services, and motion picture production services. Furthermore, Tonga has 
scheduled three Article II (MFN) exemptions for audio-visual services, in order to allow for national treatment under (existing or future) bilateral or plurilateral agreements. 
4.40.  Under its horizontal GATS commitments that apply to trade in all services, Tonga has 
scheduled exemptions and reservations with respect to national treatment in the areas of taxation 
of foreign nationals (unbound), access to subs idies (unbound), access to land by foreigners
29, and 
foreign investment approval under the Foreign Investment Act (section 2.4). Tonga has also 
reserved flexibility to regulate the entry and temporary stay of foreign nationals (mode 4 is unbound). For services sales persons and intra- corporate transferees (managers, executives, 
specialists, and personnel engaged in establishm ent), Tonga has scheduled the maximum duration 
of stay (respectively, 90 days and 2 years, renewable).  
                                               
25 See Tonga Business Enterprise Cent re online information. Viewed at: http://www.tbec.to/ . 
26 WTO document WT/ACC/TON/17, 2 December 2005. 
27 Ministry of Information and Communicat ions online information. Viewed at: 
http://www.mic.gov.to/public-notices/4246-proposed-small-business-tax . 
28 WTO document WT/ACC/TON/17/Add.2, 2 December 2005. 
29 "The Tongan Constitution prohibits the sales of land  to all foreigners. Foreigners can only attain land 
through leasing, with the right to lease land for up to 99 years as well as sub-lease property." See WTO 
document WT/ACC/TON/17/Add.2, 2 December 2005, p. 3. WT/TPR/S/291/Rev.1 • Tonga 
 
- 53 - 
 
  Chart 4.3 Sector-specific commitments for services 
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Construction (5)
Education (5)
Environment (4)
Communication (21)
Finance (20)
Distribution (4)
Transport (9)
Business (18)
Tourism (2)
Health (1)
Recreation (1)Full commitmentsaSubsector coverage
Partial commitmentsbSector
 
a No limitations on market access and national trea tment in modes 1 to 3. Mode 4 is unbound, except 
as indicated under horizontal co mmitments. Horizontal commitments have not been taken into 
account. 
b Certain modes of supply are unbound. 
Note: Figures in brackets refer to the number of sector-specific commitments. Source: WTO Secretariat. 
4.4.2  Financial services 
4.4.2.1  Banking services 4.4.2.1.1  Market stru cture and performance 
4.41.  Tonga's financial sector contributed about 6% to GDP in 2012/13 (Table A1.1), with bank 
and foreign exchange dealers employing some 460 pe ople. The total assets of the financial sector 
amounted to T$515 million (as of December 2012), of which 87% were held by commercial banks and 13% by credit institutions.
30  
4.42.  In addition to the state-owned Tonga Development Bank, Tonga has four foreign 
commercial banks: ANZ, Westpac of Tonga Bank, MBf Bank, and Pacific International Commercial Bank (licenced in July 2013). There is some competit ion in the credit market from institutions such 
as the Retirement Fund Board, and the South Pacific Business Development Microfinance Ltd. 
There are also numerous small money-lenders that  are not regulated, although they require a 
business licence.  A credit bureau provides information to banks on potential borrowers to assist 
their lending decisions.
31  
4.43.  According to the IMF, Tonga's banking system is "adequately capitalized and profitable".32 
Capital adequacy was well above the Re serve Bank's minimum requirement of 15%33, based on 
the Basel I framework (banks' risk-weighted ca pital ratio was 26.3% in 2010/11 and 31.4% in 
2011/12). Liquidity in the banking sector was high at over 15% of GDP, reflecting the Reserve 
Bank's accommodative monetary policy as well as ba nks' reduced appetite to lend and take risks in 
                                               
30 National Reserve Bank of Tonga (2012b). 
31 The banks are currently the only members of the credit bureau. 
32 IMF (2012). 
33 18% for credit institutions. WT/TPR/S/291/Rev.1 • Tonga 
 
- 54 - 
 
  the weak economic environment.34 Credit ceilings have not been imposed by the Reserve Bank 
since February 2007. The level of non-performing loans remains high (15% in 2011/12, down from 
23.7% in 2008/09). Borrower defaults have occurred mainly in the tourism and wholesale/resale sectors, and for private housing loans; defaults have been partly linked to the decline in 
remittances. The IMF has recommended that Tonga facilitate the use of land as collateral and 
improve loan recoveries through a bankruptcy law.
35 I n t e r e s t  r a t e s ,  a s  w e l l  a s  b a n k s '  f e e s  a n d  
charges, are market-determined.36 Despite excess liquidity in the banking system, interest rates 
and spreads are high, partly due to banks' write-off costs for bad loans.37 Access to (affordable) 
finance remains one of the main business concerns in Tonga.  
4.4.2.1.2  Regulatory framework 4.44.  Tonga has made "full commitments" under the GATS with respective to financial services, 
which cover virtually all subsectors, with the exception of services auxiliary to insurance, including 
broking and agency services, and "other" financial services (Chart 4.3). In line with its GATS commitments, Tonga allows the establishment of foreign commercial banks, merchant banks, and 
other financial services companies in the form of wholly owned subsidiaries or direct branches. 
ANZ is operating through a branch in Tonga. 
4.45.  The National Reserve Bank of Tonga is resp onsible for regulating, licensing, and supervising 
financial institutions (i.e. banks and credit institutions). The legal framework for banking services 
comprises the Financial Institutions Act 2004
38, the National Reserve Bank Act 1988, the Tonga 
Development Bank Act, the Westpac Bank of To nga Act, the Foreign Exchange Control Act 1988, 
and the Money Laundering and Proceeds of Crime Act 2000.  
4.46.  A bank licence is granted by the Reserve Bank subject to, inter alia , comprehensive 
supervision, regulation, and consent by the authorities in the home country.39 In practice, the 
banks are required to have at least two independ ent local directors; revisions to the Prudential 
Statement No. 9 on governance will formalize this  requirement. Bank mergers require the approval 
of the Reserve Bank.40 Bank licences are not subject to numerical or geographical limitations. 
Permitted bank activities are: deposits, loans, buying and selling money-market instruments and 
debt securities, money transmission services, buying and selling foreign currencies (with prior 
approval of the Reserve Bank for transactions  above exchange control limits), issuing and 
administering means of payments, safekeeping and administration of securities, credit reference 
services, and other activities approved by the Reserve Bank.41 The provision by banks of financial 
information and advisory services or insurance-related activities are not part of the permitted 
activities listed in Section 27 of the Financial Institutions Act. The minimum capital requirement for a bank or credit institution is T$2 million; annual licence fees are T$3,000. 
4.4.2.2  Other financial services 
4.47.  Tonga permits the establishment, includin g through direct branches, of foreign life and 
non-life insurance companies, insurance brokers and agencies, and insurance underwriting and 
management companies servicing the domestic market. There are no laws on insurance, and the 
insurance sector is not regulated by any authorit y. Tongans are permitted to purchase insurance 
policies abroad. 
4.48.  There are numerous insurance brokers in Tonga. Dominion Insurance (Tonga) Ltd. is a 
subsidiary of Dominion Insurance Ltd. based in Fiji. Since August 2007, Insurance Corporation of 
                                               
34 National Reserve Bank of Tonga (2012a). 
35 IMF (2012), p. 27. 
36 In 2010/11, the high level of interest rates wa s under parliamentary review and the Government 
briefly considered the imposition of interest rate caps under the Cons umer Protection Act. 
37 The weighted lending rate is 9.73% (September  2013) with housing loans at 9.02% and business 
loans at 9.81%. 
38 The Financial Institutions Act 2004 (see: http://legislation.to/Tonga/DATA/PRIN/2004-
017/FinancialInstitutionsAct2004.pdf ) superseded the Financial Institutions Act 1991 (in force at the time of 
accession).  
39 Section 7 of the Financial Institutions Act.  
40 Section 11 of the Financial Institutions Act.  
41 Section 27 of the Financial Institutions Act.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 55 - 
 
  Tonga Ltd. is the exclusive agent of Dominion In surance and responsible for the marketing of its 
products. ANZ acts as agent for National Pacific Insurance Ltd.42  
4.49.  Authorized foreign exchange dealers are supervised and licensed by the Reserve Bank in 
accordance with the Foreign Exchange Control (Amendment) Regulations of 2000.43 There were 
ten licenced foreign exchange dealers as of Sept ember 2013. Banks and "restricted" authorized 
foreign exchange dealers are permitted to appr ove current payments of up to T$100,000 per 
transaction44; current payments over T$100,000 and all capital payments require prior approval 
from the Reserve Bank.45 In 2010, the telecommunications company Digicel Tonga introduced 
mobile banking in collaboration with the Tonga Development Bank (section 4.4.3). Digicel is registered by the Reserve Bank as an authorized foreign exchange dealer, restricting its financial services to inward remittances only.  
4.50.  Tonga's small domestic capital market comp rises mainly government bonds, treasury notes, 
and Reserve Bank notes. About 70% of domestic debt is in the form of long-term government 
bonds. The current value of government bonds is T$29.45 million (September 2013). Retirement 
funds are not regulated.  
4.4.3  Telecommunication services 4.4.3.1  Market structure 
4.51.  The liberalization of Tonga's telecommunications market began in 2002, following the 
adoption of the Communications Act 2000 aimed at stimulating competition for telecom services (Section 4 of the Act). The Tonga Communications Corporation (TCC), a 100% state-owned enterprise (Table 3.7), provides network infrastructure and communications services, and has a de 
facto monopoly for fixed telephone services (Table 4.3).
46 The Tongan company TonFon entered 
the market in 2002, and started providing mob ile telephone and internet services. In 2007, 
TonFon was acquired by Digicel Tonga Ltd. According to the authorities, the competition with the 
incumbent has resulted in a significant price decline for international mobile calling services, to 
about T$0.10-0.45/minute (September 2013). Mobile penetration in Tonga is among the highest in the Pacific region and tariffs are among the lowest.
47  
4.52.  Internet services are provided by TCC's Kalianet, and Digicel Tonga Ltd. There are about 
3,000 subscribers of internet services in Tonga (as of September 2013). WiFi services are available throughout Tonga. Until recently, Tonga relied on  costly international satellite connections for 
internet services. To improve broadband internet connectivity and bring down internet costs for 
end-users, a submarine fibre-optic cable was laid between Fiji and Tonga, connecting Tonga to the 
Southern Cross Cable system that links the United States with Australia.
48 Tonga Cable Ltd, a 
state-owned enterprise established in 2010 and in which TCC holds a 20% stake, owns and 
operates the submarine cable. TCC is to offer wholesale high-speed internet access to the TCC, 
Digicel Tonga Ltd. and others. Currently, only TCC is connected to the submarine cable.  
4.53.  In 2012, mobile payment services were introduced by Digicel Tonga Ltd. (Beep & Go) in 
collaboration with the Tonga Development Bank. Th ese provide an alternative payment method for 
people without a bank account, credit card or smart phone.  
                                               
42 ANZ online information. Viewed at: http://www.anz.com/tonga/en/personal/insurance/home-
contents-insurance/ . 
43 Foreign Exchange Contro l (Amendment) Regulations . Viewed at: 
http://legislation.to/Tonga/DATA/AMD/1988-103-01/Fo reignExchangeControl(A mendment)Regulations 
2000.pdf .  
44 Gifts and miscellaneous payments are limited to T$10,000 per applicant and year; travel allowances 
are limited to T$20,000 per application. 
45 Exchange Control Policy Guidelines for Banks and Authorised Restricted Foreign Exchange Dealers.  
Viewed at: http://reservebank.to/docs/econtro l/EPOLICYGUIDELINES-Jan2010-amend.pdf . 
46 TCC online information. Viewed at: http://www.tcc.to/index.php/aboutus/ . 
47 World Bank (2011), p.28. 
48 The Pacific Regional Connectivity Program (US$34 million), partly fina nced with grants from the World 
Bank and the Asian Development Bank.  WT/TPR/S/291/Rev.1 • Tonga 
 
- 56 - 
 
  Table 4.3 Tonga's telecommunications market (September 2013)  
Service Penetration (% of population) Market structure 
Fixed-line telephone 13 TCC 
Mobile telephone 70 TCC, Digicel Tonga Ltd. with about 20,000 
subscribers each 
Internet (mobile) <1 Digicel Tonga Ltd. 
Internet (broadband) 3 TCC, Digicel Tonga Ltd. 
Source: Information provided by the authorities. 
4.4.3.2  Regulatory framework 
4.54.  Tonga has made commitments under the GA TS to provide open telecom access across all 
subsectors and modes of supply, except mode 4. Tonga has also undertaken to respect the principles of the WTO Reference Paper on basic telecommunications services.
49 
4.55.  Telecommunications policy and regulation ar e the responsibility of the Prime Minister who 
also heads the Ministry of Information and Communications established in May 2009. The legal framework for telecommunications services comprises the Communications Act 2000
50 and the 
Tonga Communications Corporation Act 2000. No telecoms regulations have been promulgated. A 
revision of the Communications Act is pending. The authorities are considering, amongst other matters, the establishment of an independent telecom regulator or multi-sectoral utilities regulator.  
4.56.  Under the 2000 Communications Act, domestic or international communication services, 
including television, radio, internet, and mobile phone services are subject to licensing. Licences are granted by the Department of Communications, subject to "standard" licence conditions (set 
out in the Schedule to the Act), and approval by Cabinet. Individual licences are held by TCC and 
Digicel; licence fees are 1.5% of gross turnover. Licence fees for class licences (TV, internet, FM radio) are T$5,000 per year. A licence is granted for 5-10 years and may be renewed; it lapses 
after 12 months of non-use. Mobile virtual ne twork operators are not permitted in Tonga for 
economic viability reasons of the carriers. 
4.57.  All proposed tariff changes for communication services require approval by the Ministry. 
Interconnection and roaming rates are not regula ted. Interconnection agreements are to be 
negotiated between carriers in accordance with pr evailing market conditions. In August 2008, the 
Government mandated an increase of termination rates for incoming fixed and mobile calls from US$0.13/minute to US$0.30/minute.
51 The government-mandated termination rate was later 
cancelled.  
4.58.  Tonga does not have a formal universal service policy, as envisaged in Section 50 of the 
Communications Act. The TCC and Digicel are under universal service obligations, although Digicel 
does not have coverage for the Niuas islands. According to the authorities, a universal service fund 
is to be established to help cover under-served areas.  
4.4.4  Transport services 4.59.  In view of the large distances from prod uct and input markets, and the dispersion of the 
Tongan population across the islands, efficient transport is vital for the competitiveness of the 
Tongan economy. The importance of transport is  further increased by its supporting role for 
tourism. Significant regulatory reforms and infrastructure projects have been launched since 
Tonga's accession to the WTO.
52 In 2005, the World Bank concluded a review of Tonga's transport 
sector, which forms the platform for reforms aiming to improve the performance of road, 
                                               
49 WTO document WT/ACC/TON/17/Add.2, 2 December 2005. 
50 Communications Act 2000. Viewed at: http://legislation.to/Tonga/DATA/PRIN/2000-
022/CommunicationsAct2000.pdf . Tonga adopted a Computer Crimes Act in 2003. 
51 The USTR has reported that its carriers have rero uted their traffic to Tonga through third countries 
because negotiations with the two Tongan carriers on  termination rates failed. See United States Trade 
Representative (2013). 
52 Tonga National Infrastructure Investment Plan, 2010. Viewed at AusAID online information:  
http://www.ausaid.gov.au/Publications/Pages/tong a-national-infrastructure-investment-plan-2010.aspx   WT/TPR/S/291/Rev.1 • Tonga 
 
- 57 - 
 
  maritime, and air transportation services (reflected in Tonga's eighth Strategic Development 
Plan).53 
4.4.4.1  Air transport 4.60.  Tonga handles about 70,000 international and 50,000 domestic air passengers each year. 
The number of international air passengers has grown modestly in recent years (Chart 4.4). 
Commercial air cargo amounts to about 2,500 tonnes per year, comprising mainly agricultural and marine products. 
Chart 4.4 International arrivals by mode of transport, 2005-11 
(Number of persons) 
010,00020,00030,00040,00050,00060,00070,00080,00090,000100,000
2005 2006 2007 2008 2009 2010 2011AirCruise ships 
and yachts
 
Source: Tonga Statistics onli ne information. Viewed at: http://www.sps.int/prism/tonga . 
4.4.4.1.1  Air services 
4.61.  Tonga does not have a national carrier.54 Regular international air services are provided to 
Fiji by Fiji Airways (four times weekly to Nadi and Suva), to Auckland by Air New Zealand (five 
times weekly), and to Sydney and Auckland by Vi rgin Australia (twice weekly). There are no air 
services on Sundays, as the Tongan airports are closed (Clause 6 of the Constitution). The 
domestic carrier Chatham Pacific of New Zealand ceased operations on 2 March 2013. Domestic 
services resumed in March 2013 with the entry of a new Tongan-owned airline (Real Tonga). Domestic and international air services are partly subsidized in the form of an exemption from 
excise taxes for fuels and lubricants. The "fuel concession" scheme is administered by the Ministry 
of Revenue and Customs (Table 4.2).  
4.62.  The Government's primary policy objectives in the aviation sector (aside from safety and 
security) are to encourage competition and attract market entrants to Tonga. Tonga is a signatory 
to the Multilateral Agreement for the Liberalization  of International Air Transportation (MALIAT), 
although it has not yet signed the MALIAT Protoc ol that extends the "open skies" provisions to 
unlimited 7
th freedom rights and limited cabotage rights (domestic access) for international 
services continuing a service beyond the gatewa y. The Government's reluctance is motivated 
essentially by the need to protect the interests of its domestic carrier. Tonga is a member of the Pacific Islands Air Services Agreement (PIASA), wh ich entered into force in October 2007 and aims 
to create a "single Pacific aviation market" involving the 3
rd, 4th, and 5th freedoms of access.55 Air 
services to/from Australia and Fiji are governed by bilateral air services agreements. In both agreements, capacity limitations are in place, although existing limits have not yet been reached. Tonga's latest air services agreement is an "open skies" agreement with Singapore concluded in 
March 2013. According to the authorities, a bilateral services agreement with China is close to 
conclusion.  
                                               
53 See World Bank (2005); and Strategic Development Plan Eight 2006/07—2008/09. Viewed at: 
http://www.sprep.org/att/IRC/eCOPIES/Countries/Tonga/13.pdf . 
54 The state-owned Royal Tongan Airlines went out of business in 2004. 
55 Pacific Island Forum Secretariat online information. Viewed at: http://www.forumsec.org.fj/ 
resources/uploads/attachments/docu ments/PIASA%20text%2010%20signatures.pdf .  WT/TPR/S/291/Rev.1 • Tonga 
 
- 58 - 
 
  Table 4.4 Tonga's international air services agreements 
Partner Air services 
agreement  Description 
New Zealand 
 MALIAT Open skies structure; 
Unlimited 3rd,4th and 5th freedom access for sched uled and non-scheduled 
services; 7
th freedom cargo rights; 
Multiple designation of airlines; No restrictions on aircraft type, capacity, and frequency; Incorporation and principal place of business, and effective control vested in the designating country or its nationals (no substantial ownership provisions); Compliance with safety and security regulations. 
United States MALIAT As above. 
Samoa (also Cook Islands, Vanuatu, Nauru and Niue) MALIAT 
 PIASA As above. 
 Single aviation market structure; Unlimited 3
rd, 4th, 5th and 6th freedom access; 
Multiple designation; No restrictions on aircraft type, capacity, and frequency; Substantial ownership and effective control by one or more parties to the 
agreement and/or of their nationals; or place of residence and principal 
place of business in th e designating country. 
Australia Bilateral Limited to 1,200 seats each way; 
No restriction on aircraft type or frequency; 
Multiple designation; desi gnation based on incorporation/principal place of 
business in the designating country; 
Commercially based tariffs; 
Specified destinations – any points in Australia, and Nuku'alofa; 
Australian carriers may operate beyond Tonga to any three points in Pacific 
Islands Forum countries; 
Intermediate stops allowed in Noumea and four points in Pacific Islands 
Forum countries; 
Own stop-over rights within th e territory of each country. 
Fiji Bilateral 3rd, 4th freedom rights capped at 1,000 weekly seats each way; 
5th freedom rights for Fijian carriers to serve New Zealand via Tonga 
(Nuku'alofa or Vava'u); and for Tongan carriers to serve Australia via Fiji (Nadi or Suva); No restriction on aircraft type or frequency. 
Singapore Bilateral 3rd, 4th and 5th freedom traffic rights for passenger services;  
3rd, 4th, 5th and 7th freedom cargo traffic rights; 
No restrictions on aircraft type, capacity, and frequency. 
Note: MALIAT – Multilateral Agreement for the Li beralization of Internatio nal Air Transportation 
 PIASA – Pacific Islands Air Services Agreement. 
Source: Information provided by the authorities. 
4.63.  The sector is regulated by the Civil Aviation  Division of the Ministry of Infrastructure. The 
Division's responsibilities include development of air transport policy; negotiation of air services agreements (in collaboration with the Ministry of Foreign Affairs); licensing (including of airlines, 
aircraft, personnel, and aircraft maintenance)
56, and oversight of the airport operator. The main 
legislation is the Civil Aviation Act 1990 and its subsidiary regulations.57 According to the 
authorities, a new aviation bill is being drafted, using New Zealand legislation as a model; policies, 
and revised regulations and procedures are to follo w. In the meantime, the Civil Aviation Division 
has been authorized by government order to appl y New Zealand aviation rules, if necessary. Air 
fares are not regulated. The Pacific Aviation Safety Office (PASO) conducts the air services certification (pilots, engineers, and aircraft) on behalf of the Government, and carries out the main 
(user-paid) audits.  
                                               
56 Licensing fees were last amended in 2012 under the Civil Aviation Licensing Charges Amendment 
Regulations 2012. 
57 Civil Aviation Act 1990. Viewed at: http://legislation.to/Tonga/DATA/PRIN/1990-017/CivilAviationAct 
1990.pdf . WT/TPR/S/291/Rev.1 • Tonga 
 
- 59 - 
 
  4.4.4.1.2  Airport management and ground-handling services 
4.64.  Under the regulatory oversight of the Ci vil Aviation Division, the Tonga Airports Ltd. 
operator manages Tonga's six airports and provides air navigation services (Section V of the Civil 
Aviation Act).58 The regulatory functions were separated from airport operation with the 
establishment (corporatization) of Tonga Airports Ltd. in 2007 (Table 3.7). The airport operator is 
required to comply with the standards and regula tions of the Civil Aviation Act 1990, New Zealand 
civil aviation legislation, and International Civil Aviation Organization (ICAO) guidelines. In 2011, 
the airport operator issued revised aeronautical charges and conditions of use.59 Changes of 
aeronautical charges require Government approval. A number of airport infrastructure projects (US$26.2 million) are under way, in cluding resurfacing of the runway at Fua'amotou International 
Airport, which would allow larger aircraft to land in Tonga; improvements of security and safety 
(navigational aids); and upgrading of terminal buildings.
60  
4.65.  Tonga has made "full commitments" under the GATS for three air transport service 
sub-sectors (maintenance and repair of aircraft, computer reservation systems, and supporting 
services for air transport). In addition, Tonga has made "full commitments"61 for services auxiliary 
to all modes of transport (cargo handling, stor age and warehousing, freight transport agency 
services, and other) but these commitments exclude maritime services.62 
4.66.  Ground-handling services are provided, under concession, by Air Terminal Services, a 
private company (formerly owned by Air New Zealand). The airport duty-free shop (Leola) was privatized and operates on a lease from Tonga Airports Ltd. The concession for refueling services is held by Pacific Energy Ltd.  
4.4.4.2  Maritime transport 
4.67.  Most of Tonga's maritime tr affic is from Auckland and is handled by the port at Nuku'alofa. 
The traffic flow is very unbalanced, as about 200,000 tonnes of (non-containerized) cargo are 
imported and only about 20,000 tonnes are loaded/exported per year (Table A4.3). A number of 
shipping companies have consolidated their shipments in recent years, resulting in few ships calling at Nuku'alofa, but the tonnage has remained more or less stable. Annual container 
throughput is in the range of 10,000-12,000 TEU.  
4.68.  Tonga made no market-access commitments with respect to maritime transport services, an 
exception to its generally open services regime under the GATS.
63 On the other hand, Tonga has 
undertaken to ensure non-discriminatory access to a range of port services. 
4.4.4.2.1  Shipping services 
4.69.  The Marine and Ports Division of the Ministry of Infrastructure is responsible, inter alia , for 
the management of the ports (apart from the port of Nuku'alofa); ship registration; enforcement 
of relevant conventions of the International Maritime Organization (IMO); supervision of the 
activities of Tongan ships operating overseas; is suing certificates for ships and seafarers; and 
pilotage for ships outside Nuku'alofa. The main piece of legislation on maritime shipping services is 
the Shipping Act 1988, as amended.64 According to the authorities, Tonga generally applies the 
regional (SPC65) standards for domestic shipping and smaller vessels, and IMO standards for larger 
vessels and vessels operating outside the EEZ.  
4.70.  To fly the Tongan flag, ships (15 meters or longer, and unless exempted) must be recorded 
in the National Registry of Ships administered by the Marine and Ports Division (Section 7 of the 
                                               
58 Fua'amotou International Airport in Tongatapu; Vava'u; Ha'apai; Eu'a, and the two Niuas. 
59 Tonga Airport Ltd. online  information. Viewed at: http://www.tongaairports.com/about/aeronautical-
charges-and-conditions-of-use/ . 
60 These investments are within the framework of the regional Pacific Aviation Investment Program with 
grants from the World Bank.  
61 See definition in Chart 4.3. 
62 WTO document WT/ACC/TON/17/Add.2, 2 December 2005. 
63 WTO document WT/ACC/TON/17/Add.2, 2 December 2005. 
64 Shipping Act 1988. Viewed at: http://legislation.to/Tonga/DATA/PRIN/1988-136/ShippingAct.pdf .  
65 Secretariat of the South Pacific Community. WT/TPR/S/291/Rev.1 • Tonga 
 
- 60 - 
 
  Shipping Act and Shipping Registration Regulations 2002).66 Under the current Shipping Act, 
vessels must be 100% crewed with Tongans, but these levels are being reviewed due to lack of 
domestic capacity. Tonga's International Registry of Ships was closed in 2004. 
4.71.  International cargo liner services are prov ided by the shipping agents Dateline Shipping, 
Pacific Forum Line Ltd., TRANZAM, Matson Shipping, and a domestically registered shipping agent 
(JAWS) for cargo trade between New Zealand, Samoa, and Tokelau. Domestic shipping services for passengers and cargo are provided by the stat e-owned Friendly Island Shipping Agency Ltd. 
(FISA), Pacific Tonga Trading, South Seas Shipping (cargo only), Eua Sea Transport Council, and 
Tofa Ramsay. Foreign shipping companies are permitted to offer domestic services (cabotage), provided they engage a Tongan agent or an agent based in Tonga. Fuel and lubricants for use in 
domestic shipping services are exempt from excise taxes (Table 4.3).  
4.4.4.2.2  Port manageme nt and port services 
4.72.  Tonga's main port at Nuku'alofa and its assets are owned, operated, and managed by the 
Ports Authority Tonga Ltd. established in 1999 as a statutory body under the Ports Authority Act 
1998. The port of Nuku'alofa comprises the Queen Salote Wharf (four berths for container 
handling, inter-island roll-on-roll-off, general cargo), the cruise ship terminal at the Vuna Wharf, and the Yellow Pier. The Vuna Wharf, the largest port infrastructure project in recent years, 
opened in 2012, and is to be leased to the Port Authority.
67 The smaller ports are managed by the 
Marine and Ports Division.  
4.73.  The Ports Authority is required by law to operate on commercial principles (Section 12 of 
the Ports Authority Act)68; according to the authorities, it does not receive subsidies from the 
Government. Services provided by the Ports Authority include berthing, towing, mooring; loading 
and unloading vessels; embarking and disembarking passengers; pilotage; maintenance of marine navigation aids; and supply of fuel, water and telephone services.
69 Tonga has made commitments 
under the GATS to provide non-discriminatory access to certain port services, excluding berthing.70 
The port fees and charges applied by the Port Authority were last revised in 2007 (Ports Authority Tariff Fees Standing Order 2007).
71 According to the authorities, the tariffs and fees are charged 
independent of the vessel's flag. Pilotage is co mpulsory for foreign vessels exceeding a certain 
length or tonnage.72 There are no ship repair services in Tonga.  
4.4.5  Professional services 4.74.  Legal services are governed by the Law Practitioners Act 1989. The Act requires any legal 
practitioner to be included in the Roll of Law Pr actitioners held by the Supreme Court, to possess a 
practising certificate, and be a member of the Tonga Law Society. Membership in the Tonga Law Society requires documented professional knowle dge and experience in a common law jurisdiction, 
a minimum of three character references, and an expressed intent to practice law in Tonga. 
Residence in Tonga is not required. Foreign lawyers are subject to the same rules as domestic legal practitioners, according to the authorities. Foreign law firms and lawyers are allowed to 
provide consultations on Tongan legislation.  
4.75.  Providers of accounting services require a business licence; approval from the Tonga Society 
of Accountants is not needed. No specific requirements apply to practice engineering or architectural services in Tonga, except a business licence. Licences are issued upon presentation of 
                                               
66 Most registered ships are fishing vessels, which must also be registered with the Fisheries 
Department. 
67 The project has been financed with a T$32 mi llion loan from the EXIM Bank of China.  
68 Ports Authority Act 1998. Viewed at: http://legislation.to/Tonga/DATA/PRIN/1998-008/PortsAuthority 
Act1998.pdf .  
69 Ports Authority Tonga online information. Viewed at: http://www.portsauthoritytonga.com/ . 
70 Towing and tug assistance; provis ioning, fuelling and watering; garb age collecting and ballast waste 
disposal; emergency repair services; lightering and water taxi services; ship agencies; customs brokers; 
stevedoring and terminal services; and surveyin g and classification services (WTO document 
WT/ACC/TON/17/Add.2, 2 December 2005). 
71 Two amendments to the 2007 Standing Order were made in 2008 and 2009. See Ports Authority 
Tonga online information. Viewed at: http://www.portsauthoritytonga.com/ . 
72 See Section 29 of the Ports Management Act 2001. The Port Authority has one pilot boat. WT/TPR/S/291/Rev.1 • Tonga 
 
- 61 - 
 
  a certificate from recognized university, irresp ective of the country, and a reference document 
from the former employer in the same business activity (optional).  
4.4.6  Tourism 4.76.  The hotel and restaurant sector co ntributes about 3% to GDP (Table A1.1).
73 Most of the 
90,000-100,000 annual arrivals in Tonga are visiting relatives and friends; the number of genuine 
tourists is thought to be small.74 The main attractions include water sports, fishing, whale watching 
and whale swimming, and cultural tourism. Visitors come mainly from New Zealand, Australia, and 
the United States.75 Tonga's market share of visitor arrivals in the Pacific region declined from 
about 7.5% in 2000 to about 5% in 2010.76 Tonga is a high-cost destination, and the Sunday 
Observance Act also poses constraints to the tourism sector due to limitations on Sunday trading and associated travel restrictions. The Government expects the new cruise ship terminal at the 
port of Nuku'alofa (opened in 2012) to enhance Tonga's attractiveness as a tourist destination. 
4.77.  Tonga has made specific commitments under the GATS in two out of four tourism 
subsectors (i.e. tourism and travel-related services, covering hotels and restaurants, including 
catering; and travel agencies and tour operator services).
77 Mode three (commercial presence) 
with respect to hotels and restaurants, includ ing catering, is unbound for investments below 
T$200,000. Otherwise, there are no limitations on  market access or national treatment in both 
scheduled subsectors. However, measures concerning the presence of natural persons (mode four) 
are unbound, except for services sales persons and intra-corporate transferees (section 4.4.1). 
4.78.  The Ministry of Commerce, Tourism and Labour is responsible for formulating and 
implementing tourism policies. A Tonga Tourism Roadmap is being developed under the auspices 
of the Ministry.78 The Tonga Tourism Authority, established under the Tonga Tourism Authority Act 
2012, is responsible for designing and implementing  of marketing strategies to promote Tonga as 
a tourist destination.79 
4.79.  Hotels, restaurants and other tourist estab lishments require a business licence from Ministry 
of Commerce, Tourism and Labour. According to the authorities, foreign investors wishing to operate a tourism venture no longer need to have a local partner that owns at least 51% of the 
business. 
4.80.  Whale watching has developed into an important tourist attraction in Tonga since its 
beginnings in the early 1990s. Whale Watching and Swimming Regulations entered into force in May 2013. To operate in Tongan waters, all whale-watching companies, including foreign-based 
operators, require a licence issued by the Ministry of Commerce, Tourism and Labour.
80 Licence 
fees are T$3,000 for whale watching, and T$3,450 for whale watching and swimming operations. As of September 2013, there were 25 licensed whale-watching operators.  
                                               
73 There is a lack of up-to-date tourism data. This is  being addressed by the MCTL in collaboration with 
the IFC. 
74 Tonga Statistics Department (2012), p. 8. 
75 Tonga Statistics Department (2012). 
76 National Reserve Bank of Tonga online information. Viewed at: 
http://www.reservebank.t o/EconomicDialogue.htm .  
77 WTO document WT/ACC/TON/17/Add.2, 2 December 2005. No commitments were made with respect 
to tourism and travel-related services for tourist guide services; and "other" services. 
78 Tonga Tourism Sector Road Map. Viewed at: http://www.mic.gov.to/mini strydepartment/14-govt-
ministries/mctl/4353-the-tonga-tourism-sector-road-map- . 
79 Tonga Tourism Authority Act 2012. Viewed at: 
http://crownlaw.gov.to/cms/images/LEGISLATIO N/PRINCIPAL/2012/20120025/TongaTourismAuthorityAct2012
_1.pdf . The Tourist Act 1976 was repealed. 
80 Ministry of Commerce, Tourism and Labour onli ne information. Whale Watching and Swimming 
Regulations 2013. Viewed at: http://www.mctl.gov.to/wp-content/uploads/2013/07/WhaleWatchingand 
SwimmingRegulations2013English-2.pdf . WT/TPR/S/291/Rev.1 • Tonga 
 
- 62 - 
 
 REFERENCES 
Asian Development Bank (2008), Transforming Tonga, A Private Sector Assessment . Viewed at: 
http://www.adb.org/sites/defaul t/files/pub/2008/PSA-TON.pdf . 
 
FAO (2010), Tonga National Fishery Sector Overview . Viewed at: 
http://www.fao.org/fishery/countrysector/FI-CP_TO/en .  
 
IMF (2012), Tonga 2012 Article IV Consultation, IMF Country Report No. 12/166 . Viewed at: 
http://www.imf.org/external/p ubs/ft/scr/2012/cr12166.pdf . 
 
International Renewable Energy Agency (2013), Pacific Lighthouses: Renewable energy 
opportunities and challenges in the Pacific Islands region – Tonga . Viewed at: 
http://www.irena.org/DocumentDown loads/Publications/Tonga.pdf .  
 
Ministry of Finance and National Planning (2012), Budget Statement 2012-2013 . Viewed at: 
http://www.finance.gov.to/sites/default/f iles/GOT-BUDGET_STAT EMENT_2012-2013_0.pdf .  
 
Ministry of Labour, Commerce and Industries (2009), National Investment Policy Statement , April. 
Viewed at: http://66.147.242.196/~mlcigov1/wpcontent/ themes/enterprise/downloads/NIPS 
_FINAL.pdf .  
 
National Reserve Bank of Tonga (2012a), Monetary Policy Statement , September 2012. Viewed at: 
http://www.reservebank.to/docs/ Publication/MPS_Sept_12.pdf .  
 
National Reserve Bank of Tonga (2012b), Quarterly Bulletin , December 2012, Vol. 23, No. 4.  
 Pacific Financial Technical Assistance Centre (PFTAC) (2011). Interest Rates and Bank Profitability 
in the South Pacific.  Viewed at: 
http://www.pftac.org/filemanager/files/ Regional_Papers/Governors_Paper.pdf .  
 
Pacific Islands Forum Secretariat (2004), Pacific Island Countries Trade Agreement Rules Of Origin 
Manual . Viewed at:  
http://www.forumsec.org/resources/uploads/atta chments/documents/PI CTA%20RoO%20Manual3. 
pdf.  
 
Tonga Statistics Department (2012), Statistical Bulletin on International Arrivals, Departures and 
Migration 2011 . Viewed at: http://www.spc.int/prism/tonga . 
 
UNCTAD (2012), World Investment Report 2012 , Geneva. Viewed at: 
http://unctad.org/en/Pages/DIAE/World%20Investment%20Report/WIR2012_WebFlyer.aspx .  
 
United States Trade Representative (2013), 2013 Section 1377 Review on Compliance with 
Telecommunications Trade Agreements . Viewed at: 
http://www.ustr.gov/sites/default/files/040 32013%202013%20SECTIO N%201377%20Review. 
pdf.  
 
World Bank (2005), Tonga Transport Sector Review . EASTR Working Paper No. 4. December. 
Viewed at: http://www-wds.worldbank.org/external/de fault/WDSContentServer/WDSP/IB/2006/ 
03/06/000160016_20060306161201/Rendered/PDF/35237.pdf .  
 
World Bank (2010), Kingdom of Tonga, Supply Load Forecast . Viewed at: 
http://siteresources.worldbank.org/INTEAPAST AE/Resources/Tonga-Electric-Supply-System-
Forecasts.pdf .  
 
World Bank (2011), Program Appraisal Document for a Regional Adaptable Program Loan for a 
Pacific Connectivity Program . Viewed at: http://www-wds.worldbank.o rg/external/default/ 
WDSContentServer/WDSP/IB/2011/09/07/000333037_20110907034803/Rendered/PDF/ 
607900PAD0repl0same0info0BOX361525B.pdf .  WT/TPR/S/291/Rev.1 • Tonga 
 
- 63 - 
 
  World Bank (2012), Tonga Economic Dialogue 2012, Presentation on "Overcoming the 
Macroeconomic Challenges to Economic Growth". Viewed at: 
http://www.reservebank.to/econo micdialogue/S 2_03_Speaker.pdf .  
 
World Bank (2013), Doing Business 2013 . Viewed at: 
http://www.doingbusiness.org/~/media/GIAW B/Doing%20Business/Documents/Annual-
Reports/English/DB13-full-report.pdf .  
 
WTO (2009), Trade Policy Review: Fiji, Geneva.    WT/TPR/S/291/Rev.1 • Tonga 
 
- 64 - 
 
  5  APPENDIX TABLES 
Table A1. 1 Selected economic indicators, 2006-12 
  2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 
       Output and prices       
Real GDP annual growth (%) -4.5  1.9 3.2 3.3 2.9 0.8  
GDP per capita at current market 
prices (US$) 2,864.7  3,298.4  3,067.0  3,586.4  4,101.5 4,556.9  
Current GDP (T$ million) 602.8  659.3  664.3  712.2  775.0 799.3  
Current GDP (US$ million) 292.3  337.3  314.4  368.6  422.6 470.7  
  of which (%):       
   Agriculture and forestry 14.0 12.6 13.2 13.7 14.5 14.1 
   Fishing 2.7  2.2 2.1 2.7 2.5 2.6  
   Mining and quarrying 0.3 0.3 0.4 0.8 0.8 1.0 
   Manufacturing 7.1  6.7 6.5 6.1 5.9 5.6  
   Electricity and water supply  2.4 2.5 2.7 2.4 2.6 2.8 
   Construction 6.0  6.0 7.0 8.7 9.7 9.3  
   Services 54.2 55.1 57.3 55.6 53.8 53.4 
    Trade 8.6  9.9 10.7 9.7 10.1 10.1  
    Hotels and restaurants 2.4 2.4 2.5 2.5 3.0 2.9 
    Transport and communication 5.5  5.7 6.7 6.9 6.2 6.2  
    Financial intermediation 7.3 7.5 6.3 5.8 5.8 5.6 
    Real estate and business 1.7  1.7 1.8 1.8 1.9 1.8  
    Public administration 11.9 11.7 12.2 12.5 11.8 11.8 
    Other services 18.5  17.9 19.0 18.2 17.0 16.9  
   Othe ra 13.4 14.5 10.7 10.0 10.1 11.1 
Inflation (CPI, %age change, annual 
average)b 5.8 10.4 1.4 3.5 6.3 1.2  
Base lending rate (%, end-period) 9.38 10.00  10.00  9.58 9.58 .. 
Saving deposit rate (%, end-period) 3.20  3.20 2.06 1.52 3.39 ..  
       Government finances (% of GDP)        
Overall balance 3.9 0.9 1.3 -2.7 -7.6 -7.1 
       External sector (T$, unless 
otherwise indicated)        
Current account  -65.7  -59.2  -101.0  -156.2  -160.5 -175.2  
Net merchandise trade  -220.6  -265.9  -285.9  -298.4  -347.7 -317.3  
  Merchandise exports 25.9  26.5 17.9 20.2 24.9 27.4  
    annual %age change 20.9 2.1 -32.3  12.8 23.0 10.2 
  Merchandise imports 246.6  292.3  303.8  318.6  372.6 344.7  
    annual %age change 4.4 18.6 3.9 4.9 16.9 -7.5 
Service balance -41.2  -0.7 -8.9 -21.2  16.1 -11.9  
  Services exports 47.1 78.0 76.7 67.5 110.9 117.1  
    annual %age change -26.4  65.5 -1.7 -11.9  64.3 5.6  
  Services imports 88.3 78.7 85.6 88.7 94.8 129.0  
    annual %age change 30.1  -10.9  8.8 3.6 6.9 36.1  
Remittancesc 138.0  162.2  142.4  119.9  114.0 82.1 
Capital account 57.5  25.3 114.1  100.7  167.5 113.3  
Financial account -21.6  -53.5  -2.0 -13.0  -35.7 -18.2  
   Foreign direct investment inflows 30.9  9.6 21.6 7.1 25.7 18.4  WT/TPR/S/291/Rev.1 • Tonga 
 
- 65 - 
 
    2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 
Memorandum items:       
T$/US$ (annual average) 2.063  1.954  2.113  1.932  1.834 1.698  
Population ('000) 102.0  102.3  102.5  102.8  103.0 103.3  
.. Not available. 
a "Other" includes taxes on products, less subsidie s on products and impute d bank service charges. 
b Numbers refer to calendar year. 2006/07 refers to 2007 and so on. c Data are subject to review. 
Note: Tonga's fiscal year is 1 July-30 June. Source : Tonga Department of St atistics online info rmation. Viewed at: http://www.spc.int/prism/tonga/  
[11/06/2013];  and Asian Development Bank online information. Viewed at: 
http://www.adb.org/sites/default/files/ki/2013/pdf/TON.pdf . WT/TPR/S/291/Rev.1 • Tonga 
 
- 66 - 
 
  Table A1. 2 Major exports and im ports by HS 2-digit, 2006-12 
(US$ million and %) 
HS Chapter 2006 2007 2008 2009 2010 2011 2012 
         
Total exports (US$ million)  9.6 8.0 9.3 7.8 8.3 14.4 15.6 
         
  (% of total) 
03 Fish, crustaceans, molluscs, aquatic invertebrates  39.8 35.6 26.1 54.4 63.5 32.6 29.9  
07 Edible vegetables and certain roots and tubers  36.0 39.1 28.3 17.4 10.2 17.9 21.4 
12 Oil seed, oleagic fruits, grain, seed, fruit, etc., ne  11.4 10.7 6.5 5.6 7.1 27.8 12.6  
49 Printed books, newspapers, pictures etc. 0.0 0.0 0.0 3.4 0.1 5.6 7.3 
84 Nuclear reactors, boilers, machinery, etc. 0.1  0.0 0.3 0.1 0.0 0.2 7.1  
08 Edible fruit, nuts, peel of cit rus fruit, melons  1.1 2.9 4.7 4.5 5.7 4.5 5.3 
90 Optical, photo, technical, medical, etc. apparatus  0.0 0.0 0.0 0.0 0.0 0.0 2.6  
72 Iron and steel 0.0 0.0 18.1 1.8 1.0 1.5 2.3 
87 Vehicles other than railway, tramway 0.0  0.0 0.3 1.3 0.0 0.0 2.3  
24 Tobacco and manufactured tobacco substitutes  0.0 0.3 0.5 1.2 0.7 0.4 1.6 
32 Tanning, dyeing extracts, tannins, etc. 2.9  4.7 4.7 3.2 4.4 2.0 1.4  
85 Electrical, electronic equipment 0.0 0.0 1.1 0.0 0.0 0.0 1.3 
46 Manufactures of plaiting material, basketwork, etc.  2.0 2.6 0.9 1.0 2.6 1.9 1.2  
89 Ships, boats and floating structures 0.0 0.0 0.0 0.0 0.0 0.0 0.6 
05 Products of animal origin, nes 0.0  0.0 3.8 1.5 1.4 0.4 0.6  
97 Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.4 
82 Tools, implements, cutlery, of base metal 0.0  0.0 0.1 0.0 0.0 0.0 0.3  
09 Coffee, tea, mate and spices 0.0 1.7 0.2 2.7 1.4 2.2 0.2 
92 Musical instruments, parts and accessories 0.0  0.0 0.1 0.0 0.0 0.0 0.2  
         
Total imports (US$ million)  116.5  142.6  165.9  144.6 158.8 192.9 199.2  
         
  (% of total) 
27 Mineral fuels, oils, distillation products, etc. 26.0 24.9 26.1 20.5 22.9 24.0 23.8 
02 Meat and edible meat offal 8.8  8.4 8.7 11.8 9.1 9.1 10.0  
84 Nuclear reactors, boilers, machinery, etc. 4.0 5.0 5.4 5.2 6.5 6.0 7.8 
85 Electrical, electronic equipment 5.1  5.8 8.2 6.6 8.9 5.3 6.1  
87 Vehicles other than railway, tramway 3.5 4.4 4.3 6.8 4.2 4.4 5.2 
19 Cereal, flour, starch, milk preparations and products  2.4 2.8 2.6 2.8 2.6 3.5 3.0  
16 Meat, fish and seafood food preparations nes  2.8 3.3 2.9 2.9 3.0 2.9 2.8 
94 Furniture, lighting, signs, prefabricated buildings  1.7 1.6 1.4 0.9 1.6 1.3 2.6  
22 Beverages, spirits and vinega r 3.5 3.5 3.3 3.6 2.8 2.6 2.5 
73 Articles of iron or steel 1.9  1.8 2.0 1.9 2.6 3.7 2.5  
44 Wood and articles of wood, wood charcoal 3.4 3.1 2.8 2.2 3.6 2.6 2.4 
04 Dairy products, eggs, honey, edible animal products  
nes 2.1 2.1 1.6 2.4 2.0 2.7 2.3  
48 Paper & paperboard, articles of pulp, paper and 
board 3.0 2.2 2.2 2.4 2.2 2.2 2.1 
39 Plastics and articles thereof 1.6  1.5 1.5 1.3 1.7 1.7 2.1  
11 Milling products, malt, starches, inulin, wheat gluten  2.0 1.8 2.1 2.2 2.2 2.1 2.0 
49 Printed books, newspapers, pictures etc. 0.7  0.9 0.9 1.3 0.9 1.3 1.6  
21 Miscellaneous edible preparations 1.2 1.2 1.0 1.2 1.0 1.0 1.3 
17 Sugars and sugar confectionery 1.3  1.2 0.9 1.5 1.8 1.7 1.2  
25 Salt, sulphur, earth, stone, plaster, lime and cement  1.5 1.4 1.1 1.2 1.2 1.7 1.1 
90 Optical, photo, technical, medical, etc. apparatus  0.3 0.4 0.3 0.7 0.7 1.9 1.0  
30 Pharmaceutical products  0.3 0.4 0.8 1.2 1.1 1.0 1.0 
61 Articles of apparel, accessories, knit or crochet  0.5 0.5 0.8 0.8 1.0 0.9 0.9  
68 Stone, plaster, cement, asbestos, etc. 0.4 0.3 0.2 0.2 0.2 0.2 0.8 
24 Tobacco and manufactured tobacco substitutes  1.2 1.7 2.4 2.0 1.7 1.0 0.8  
72 Iron and steel 0.8 0.9 0.7 0.8 2.1 1.8 0.7 
38 Miscellaneous chemical products 0.7  0.6 0.6 0.8 0.5 0.7 0.7  
33 Essential oils, perfumes, cosmetics, toiletries  0.6 0.5 0.6 0.6 0.7 0.7 0.7 
32 Tanning, dyeing extracts, tannins, paints, etc.  0.7 0.8 0.7 0.7 0.7 0.8 0.7  
76 Aluminium and articles thereof 1.2 1.4 0.8 0.8 0.9 0.8 0.6 
20 Vegetable, fruit, nut, etc.  food preparations 1.3  1.1 0.7 0.6 0.6 0.6 0.6  WT/TPR/S/291/Rev.1 • Tonga 
 
- 67 - 
 
  HS Chapter 2006 2007 2008 2009 2010 2011 2012 
34 Soaps, lubricants, waxes, candles, modelling pastes  0.6 0.7 0.5 0.6 0.6 0.6 0.5 
83 Miscellaneous articles of base metal 0.3  0.3 0.5 0.2 0.4 0.4 0.5  
15 Animal, vegetable fats and oils, cleavage products  0.5 0.5 0.5 0.6 0.5 0.5 0.5 
64 Footwear, gaiters and the like, parts thereof  0.3 0.4 0.3 0.3 0.5 0.5 0.5  
40 Rubber and articles thereof 0.3 0.4 0.3 0.4 0.3 0.5 0.5 
Source: UNSD, Comtrade database. WT/TPR/S/291/Rev.1 • Tonga 
 
- 68 - 
 
  Table A3. 1 Tonga's tariff summary, 2013  
  Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Duty 
free 
(%) 
Total 5,286 11.5 0-20 6.6 15.0 
      
By WTO category      
WTO agricultural products 712 10.7 0-20 7.5 31.0 
Animals and products thereof 93 1.9 0-20 5.3 88.2 
Dairy products 20 12.0 0-15 6.0 20.0 
Fruit, vegetables, and plants 200 15.0 0-20 5.7 11.0 
Coffee and tea 24 16.0 15-20 2.0 0.0 
Cereals and preparations 80 13.8 0-20 4.3 8.8 
Oils seeds, fats, oil and their products 73 10.6 0-20 5.3 16.4 
Sugars and confectionary 16 11.9 0-20 7.0 25.0 
Beverages, spirits and tobacco 69 3.8 0-15 6.4 73.9 
Cotton 5 15.0 15-15 0.0 0.0 
Other agricultural products, n.e.s. 132 10.9 0-20 7.2 29.5 
WTO non-agricultural products 4,574 11.7 0-20 6.5 12.5 
Fish and fishery products 136 10.6 0-20 7.4 5.1 
Minerals and metals 957 12.9 0-20 5.9 14.9 
Chemicals and phot ographic supplies 865 13.2 0-15 4.9 11.9 
Wood, pulp, paper and furniture 270 12.3 0-20 6.3 19.6 
Textiles 598 14.6 0-20 2.9 3.5 
Clothing 219 15.0 15-15 0.0 0.0 
Leather, rubber, footwear and travel 
goods 166 14.0 0-20 7.1 18.7 
Non-electric machinery 535 4.2 0-20 4.2 6.2 
Electric machinery 253 9.1 0-20 6.7 11.9 
Transport equipment 157 7.4 0-20 7.9 26.8 
Non-agricultural products, n.e.s. 392 12.2 0-20 8.3 21.4 
Petroleum 26 0.8 0-20 3.8 96.2 
      
By ISIC sector      
ISIC 1 - Agriculture, hunting and fishing 304 11.3 0-20 7.3 24.7 
ISIC 2 - Mining 97 12.4 0-20 6.2 19.6 
ISIC 3 - Manufacturing 4,884 11.5 0-20 6.6 14.3 
Manufacturing excluding food  
processing 4,375 11.7 0-20 6.4 12.4 
Electrical energy 1 15.0 15-15 0.0 0.0 
      
By stage of processing      
First stage of processing 633 11.8 0-20 6.7 18.5 
Semi-processed products 1,722 14.1 0-20 4.0 7.0 
Fully processed products 2,931 10.1 0-20 7.3 19.0 
      
By HS section      
01 Live animals and products 239 7.9 0-20 7.7 34.7 
02 Vegetable products 275 13.9 0-20 6.2 14.9 
03 Fats and oils 45 11.2 15-20 3.5 4.4 
04 Prepared food, beverages and tobacco 221 8.8 0-20 7.8 41.6 
05 Mineral products 169 10.1 0-20 7.4 34.3 
06 Chemicals and products thereof 800 12.9 0-20 5.3 14.3 
07 Plastics, rubber, an d articles thereof 221 14.3 0-20 4.5 8.1 WT/TPR/S/291/Rev.1 • Tonga 
 
- 69 - 
 
    Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Duty 
free 
(%) 
08 Raw hides and skins, leather, and  
   products thereof 69 8.6 0-20 9.4 53.6 
09 Wood and articles of wood 100 11.1 0-15 6.6 26.0 
10 Pulp of wood, paper and paperboard 154 12.4 0-15 5.7 17.5 
11 Textiles and clothing 810 14.6 0-15 2.3 2.3 
12 Footwear, headgear, etc. 49 19.2 15-20 1.8 0.0 
13 Articles of stone, plaster, cement 152 14.0 0-20 4.0 7.2 
14 Precious stones and metals, pearls,  
   articles thereof 53 19.2 0-20 3.8 3.8 
15 Base metals and articles thereof 605 12.8 0-20 5.4 12.2 
16 Machinery, electrical equipment, etc. 792 5.6 0-20 5.6 9.3 
17 Transport equipment 168 7.5 0-20 7.8 25.6 
18 Precision equipment 217 11.3 0-20 8.6 22.1 
19 Arms and ammunition 20 20.0 20-20 0.0 0.0 
20 Miscellaneous manufactured articles 120 15.0 0-20 6.9 14.2 
21 Works of art, etc. 7 0.0 0-0 0.0 100.0 
Note: Calculations for averages are based on national tariff line level (8-digit). The 2013 tariff schedule 
includes changes up to 13 August 2013. 
Source: WTO Secretariat calculations, based on data provided by the authorities of Tonga; and Tonga's 
Revenue Services and Customs website. Viewed at: http://www.revenue.gov.to . WT/TPR/S/291/Rev.1 • Tonga 
 
- 70 - 
 
  Table A3. 2 Goods subject to excise tax in Tonga (as per August 2013)  
HS Code Product description Calculation unit Tax rate 
(T$) 
15 Animal or vegetable fats and oils and their cleavage 
products; prepared edible fats; animal or vegetable 
waxes   
1501.00.00 Pig fat (including lard) and poul try fat, other than that of 
heading 02.09 or 15.03 Kg 1.00 
1502.00.00 Fats of bovine animals, sheep or goats, other than those 
of heading 15.03  Kg 1.00 
22 Beverages, spirits and vinegar     
22.02 Waters, including mineral waters and aerated waters, 
containing added sugar or other sweetening matter or 
flavoured, and other non-alcoholic beverages, not 
including fruit or vegetable juices of heading 20.09 
- Waters, including mineral waters and aerated waters, 
containing added sugar or other sweetening matter or 
flavoured   
2202.10.10 -- containing added sugar Litre 0.50 
2202.10.20 -- containing other sweetening matter Litre 0.50 
2202.90.00 - Other Litre 0.50 
22.03 Beer made from malt   
2203.00.10 --- Beer imported, not more than 3% alcohol by volume Litre alcohol by vol. 50.00 
2203.00.20 --- Beer imported, more than 3% and not more than 5% 
 volume by alcohol Litre alcohol by vol. 50.00 
2203.00.30 --- Beer imported, more th an 5% alcohol by volume Litre alcohol by vol. 50.00 
2203.00.40 Beer domestic Litre alcohol by vol. 10.00 
2203.00.90 --- Other Litre alcohol by vol. 50.00 
2204 Wine of fresh grapes, including fortified wines; grape must 
other than that of heading 20.09.   
2204.10.00 - Sparkling wine Litre alcohol by vol. 42.00 
 - Other wine; grape must with  fermentation prevented or 
 arrested by the a ddition of alcohol:   
2204.21.00 -- In containers holding 2 litres or less Litre alcohol by vol. 42.00 
2204.29.00 -- Other Litre alcohol by vol. 42.00 
2204.30.00 - Other grape must Litre alcohol by vol. 42.00 
22.05 Vermouth and other wine of  fresh grapes flavoured with 
plants or aromatic substances   
2205.10.00 - In containers holding 2 litres or less Litre alcohol by vol. 42.00 
2205.90.00 - Other Litre alcohol by vol. 42.00 
22.06 Other fermented beverages (for  example, cider, sherry, 
mead); mixtures of fermented beverages and mixtures of 
fermented beverages and non-alcoholic beverages, not 
elsewhere specified or included. Litre alcohol by vol. 42.00 
22.08 Undenatured ethyl alcohol of an alcoholic strength by 
volume of less than 80% vol; spirits, liqueurs and other 
spirituous beverages.   
 - Spirits obtained by distilling grape wine or grape marc    
2208.20.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 
2208.20.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.20.90 --- Other Litre alcohol by vol. 42.00 
 - Whiskies   
2208.30.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 
2208.30.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.30.90 --- Other Litre alcohol by vol. 42.00 
 -Rum and tafia   
2208.40.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 
2208.40.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.40.90 --- Other Litre alcohol by vol. 42.00 
 - Gin and Geneva   
2208.50.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 WT/TPR/S/291/Rev.1 • Tonga 
 
- 71 - 
 
  HS Code Product description Calculation unit Tax rate 
(T$) 
2208.50.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.50.90 --- Other Litre alcohol by vol. 42.00 
 - Vodka   
2208.60.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 
2208.60.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.60.90 --- Other Litre alcohol by vol. 42.00 
 - Liqueurs and cordials   
2208.70.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 
2208.70.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.70.90 --- Other Litre alcohol by vol. 42.00 
 - Other   
2208.90.10 --- Mixed drinks, not exceeding 10% by volume of alcohol Litre alcohol by vol. 42.00 
2208.90.80 Locally manufactured Litre alcohol by vol. 21.00 
2208.90.90 --- Other Litre alcohol by vol. 42.00 
24  Tobacco and manufactured tobacco substitutes   
24.02 Cigars, cheroots, cigarillos an d cigarettes, of tobacco or of 
tobacco substitutes.   
 - Cigars, cheroots and cigarillos, containing tobacco   
2402.10.00 Imported cigars, cheroots and cigarillos, containing 
tobacco 1,000 cigarettes 250.00 
2402.10.10 Locally manufactured cigars, cheroots and cigarillos, 
containing tobacco 1,000 cigarettes 238.00 
 - Cigarettes containing tobacco   
2402.20.00 Imported cigarettes containg tobacco 1,000 cigarettes 250.00 
2402.20.10 Locally manufactured cigarettes containing tobacco 1,000 cigarettes 238.00 
 - Other    
2402.90.00 Imported 1,000 cigarettes 250.00 
2402.90.10 Locally manufactured 1,000 cigarettes 238.00 
24.03 Other manufactured toba cco and manufactured tobacco 
substitutes; “homogenised” or “reconstituted” tobacco; 
tobacco extracts and essences   
2403.10.00 - Smoking tobacco, whether or  not containing tobacco 
substitutes in any proportion Kg 250.00 
 - Other   
2403.91.00 - "Homogenized" or "reconstituted" tobacco Kg 250.00 
2403.99.00 -- Other Kg 250.00 
27 Mineral fuels, mineral oils and products of their 
distillation; bituminous substances; mineral waxes    
27.10 - Petroleum oils and oils  obtained from bituminous 
minerals (other than crud e) and preparations not 
elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic 
constituents of the preparations; waste oils:   
 -- Light oils and preparations   
 --- Gasoline and other motor spirit    
2710.11.11 ---- For use as a fuel in aircraft Litre 0.50 
2710.11.19 ---- Other Litre 0.50 
2710.11.90 --- Other light oils and preparations Litre 0.50 
 -- Other   
2710.19.10 --- Jet fuel and kerosene fo r use as fuel in aircraft Litre 0.50 
2710.19.20 --- Other kerosene and other white spirit Litre Free 
2710.19.30 --- Distillate fuels Litre 0.50 
2710.19.40 --- Residual fuel oils Litre 0.50 
2710.19.50 --- Unleaded petrol Litre 0.50 WT/TPR/S/291/Rev.1 • Tonga 
 
- 72 - 
 
  HS Code Product description Calculation unit Tax rate 
(T$) 
2710.19.90 --- Other Litre 0.50 
 - Waste oils:   
 -- Containing polychlori nated biphenyls (PCBs), 
 polychlorinated terphenyls (PCTs) or polybrominated 
 biphenyls (PBBs)   
 --- Gasoline and other motor spirit   
2710.91.11 ---- For use as a fuel in aircraft Litre 0.50 
2710.91.19 ---- Other Litre 0.50 
2710.91.20 --- Jet fuel and kerosene for use as a fuel in aircraft Litre 0.50 
2710.91.40 --- Distillate fuels Litre 0.50 
2710.91.50 --- Residual fuel oils Litre 0.50 
2710.91.60 --- Unleaded petrol Litre 0.50 
2710.91.90 --- Other Litre 0.50 
 -- Other   
 --- Gasoline and other motor spirit   
2710.99.11 ---- For use as a fuel in aircraft Litre 0.50 
2710.99.19 ---- Other Litre 0.50 
2710.99.20 --- Jet fuel and kerosene fo r use as fuel in aircraft Litre 0.50 
2710.99.30 --- Other kerosene and other white spirit Litre 0.50 
2710.99.40 --- Distillate fuels Litre 0.50 
2710.99.50 --- Residual fuel oils Litre 0.50 
2710.99.60 --- Unleaded petrol Litre 0.50 
2710.99.90 --- Other Litre 0.50 
27.11 Petroleum gases and other gaseous hydrocarbons 
- Liquefied:   
2711.11.00 -- Natural gas Metric tonne 300.00 
2711.12.00 -- Propane Metric tonne 300.00 
2711.13.00 -- Butanes Metric tonne 300.00 
2711.14.00 -- Ethylene, propylene, butylene, and butadiene Metric tonne 300.00 
2711.19.00 -- Other Metric tonne 300.00 
 - In gaseous state   
2711.21.00 -- Natural gas Metric tonne 300.00 
2711.29.00 -- Other Metric tonne 300.00 
87 Vehicles other than railway or tramway rolling 
stock, and parts and accessories thereof    
8703 Motor cars and other motor vehicles principally designed 
for the transport of persons (other than those of heading 
87.02), including station wagons and racing cars   
8703.10.00 - Vehicles specially designed for travelling on snow; golf 
 cars and similar vehicles cc engine capacity 0.50 
 Vehicles with spark-ignition internal combustion 
reciprocating piston engine:   
8703.21.10 New of a cylinder capacity not exceeding 1,000 cc cc engine capacity 0.50 
8703.21.20 Used of a cylinder capacity not exceeding 1,000 cc cc engine capacity 0.50 
8703.22.10 New of a cylinder capacity exceeding 1,000 cc but not 
exceeding 1,500 cc cc engine capacity 0.50 
8703.22.20 Used of a cylinder capacity exceeding 1,000 cc but not 
exceeding 1,500 cc cc engine capacity 0.50 
8703.23.10 New of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc cc engine capacity 0.75 
8703.23.20 Used of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc cc engine capacity 0.75 
8703.24.10 New of a cylinder capacity exceeding 3,000 cc cc engine capacity 1.00 
8703.24.20 Used of a cylinder capacity exceeding 3,000 cc cc engine capacity 1.00 
 Vehicles with compression-ignition internal combustion 
piston engine (diesel or semi-diesel)   
8703.31.10 New of a cylinder capacity not exceeding 1,500 cc cc engine capacity 0.50 
8703.31.20 Used of a cylinder capacity not exceeding 1,500 cc cc engine capacity 0.50 WT/TPR/S/291/Rev.1 • Tonga 
 
- 73 - 
 
  HS Code Product description Calculation unit Tax rate 
(T$) 
8703.32.10 New of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc cc engine capacity 0.75 
8703.32.20 Used of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc cc engine capacity 0.75 
8703.33.10 New of a cylinder capacity exceeding 3,000 cc cc engine capacity 1.00 
8703.33.20 Used of a cylinder capacity exceeding 3,000 cc cc engine capacity 1.00 
8703.90.10 New other cc engine capacity 1.00 
8703.90.20 Used other cc engine capacity 1.00 
Source: Excise Tax Order 2008; Excise Tax (Amendment) Order 2010; Excise Tax (Amendment) (No. 2) 
Order 2011; Excise Tax (Amendment) Order 2012; and Excise Tax (Amendment) Order 2013. WT/TPR/S/291/Rev.1 • Tonga 
 
- 74 - 
 
  Table A4. 1 Trade of major agricultural products, 2000-10   
(US$ '000) 
  2000 2001 2002 2003  2004  2005  2006  2007  2008 2009  2010  
Exports            
Total 
agriculture 5,295 5,401 8,335 11,186  11,152  6,566  5,004  4,495  4,063 2,581  2,219  
Squash and 
pumpkins 3,010 3,326 5,460 6,454  4,685  4,283  2,748  1,350  1,898 802  340 
Manioc, dried 130 59 104 176 488 244 108 192 257 188 191 
Yams 124 113 219 401  536 316 296 1,155  43 54  0 
Taro 
(cocoyam) 625 824 291 141 286 192 258 405 48 82 166 
Roots and 
tubers nes. 9 50 56 6  7 5 2 4 4 4  127 
Watermelons 37 30 28 21 61 14 18 23 23 23 53 
Other 
melons (inc. cantaloup) 0 0 0 0
 0 0 0 0 0 0  25 
Vanilla 331 291 1,214 2,856  463 172 0 133 97 61 113 
Sugarbeet 3 0 0 0  0 0 0 0 0 0  40 
Coffee, 
green 0 0 0 0 1 7 3 6 47 47 0 
Coconuts 24 42 26 15  6 15 68 212 398 425  383 
Coconuts 
Desiccated 0 4 15 18 46 14 0 0 0 0 0 
Coconut 
(copra) oil 400 400 400 5  3 2 0 0 0 0  0 
Cigarettes 1 0 0 20 20 20 0 23 23 23 0 
Cigars 
Cheroots 0 0 0 0  0 0 0 0 0 0  58 
Cabbages 
and other 
brassicas 1 1 6 8 22 14 13 26 26 26 11 
Citrus juice, 
concentrated 0 0 0 0  0 0 0 0 0 0  20 
Vegetable 
prod, 
fresh/dried 216 166 264 274 482 218 409 409 79 26 500 
Imports            
Total 
agriculture 23,050 24,165 26,149 26,851  32,819  35,618  33,114  51,841  37,596 36,108  44,799  
Apples 169 122 194 130  99 170 170 247 95 152  272 
Butte r 707 463 665 648 843 829 861 983 828 1,127  1,030  
Milk, dried 405 385 508 479  522 491 697 822 508 486  625 
Milk, fresh 738 792 558 513 585 778 641 1,072  988 957 698 
Poultry 
meat, fresh 2,402 1,633 1,885 2,733  3,072  4,022  4,116  6,087  4,409 6,941  8,871  
Sheep meat, 
fresh 2,442 3,378 3,072 3,100  4,184  5,160  5,079  6,807  5,589 5,463  3,219  
Bovine meat, 
fresh 209 565 545 691  681 709 509 448 90 18  1,883  
Preparation 
of beef meat 80 1,659 1,481 1,335  1,583  2,163  0 0 0 0 16 
Flour of 
wheat 1,568 1,397 1,743 2,114  2,148  1,753  1,991  2,288  3,535 2,473  3,195  
Bread 25 45 78 59 40 59 78 153 566 333 296 
Breakfast 
cereals 267 388 470 464  438 484 641 1,165  684 631  1,349  
Sugar, raw 
centrifugal 592 673 650 852 879 961 900 877 852 754 1,729  
Sugar, 
refined 7 21 18 30  20 14 37 22 209 209  441 
Sugar 
confectionary 445 413 422 297 388 394 453 568 363 320 568 
Pastry 445 372 411 414  548 799 843 1,525  1,275 1,081  1,082  
Ice cream 
and edible 
ice 101 239 212 360 436 634 615 985 449 707 745 
Macaroni 632 560 596 637  898 973 1,096  1,477  622 862  1,146  
Beer of 
barley 134 120 246 155 155 412 755 2,018  386 405 1,407  
Cigarettes 887 560 641 743  855 1,006  886 5,221  2,201 1,654  2,336  
Source: FAOSTAT online information.  
  WT/TPR/S/291 /Rev.1  • Tonga  
 
- 75 - Table A4. 2 Exports in fisheries products, 2000-12 
  2000 2001 2002  2003  2004  2005  2006 2007  2008  2009  2010  2011  2012 
              
Total (US$ '000) 3,186.8  4,476.6  3,020.1  3,600.1  1,829.3  1,997.1  2,100.6  2,585.6  1,732.4  4,265.3  3,353.3  4,661.4  7,651.8  
              
Clams 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.1  3.5  1.0  0.0  0.0  0.0  
Crustacean 1.1  0.0  1.8  144.2  0.0  3.0  15.1  23.2  56.8  5.0  2.8  0.0  0.0  
Octopus 0.0  0.0  1.4  0.0  0.0  0.0  0.1  0.0  0.4  0.3  0.0  0.0  0.0  
Other reef product 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  18.3  23.2  0.0  0.0  0.0  
Reef fish 0.0  0.0  1.0  0.1  0.0  0.0  0.1  45.1  18.2  22.2  10.4  1.2  0.0  
Shellfish 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  2.4  0.0  0.0  
Seaweed (Mozuku) 124.6  63.1  88.7  59.5  478.0  216.7  125.0  43.1  0.1  6.3  0.0  52.2  146.7  
Shark 0.0  248.9  207.1  295.0  35.0  92.2  201.7  101.9  93.1  79.1  65.2  113.4  2,041.6  
Snapper 506.2  608.5  535.8  554.1  535.9  583.1  566.3  471.8  373.7  271.0  440.7  555.9  560.7  
Tuna 2,494.7  3,540.3  2,174.8  2,544.2  780.4  1,098.5  1,192.4  1,900.5  857.7  310.0  131.3  744.7  4,352.9  
Tuna or snapper 60.2  15.7  9.7  2.9  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Sea cucumber 0.0 0.0  0.0 0.0 0.0 0.0 0.0 0.0 310.6 3,547.3 2,700.6 3,194.0 544.5 
Other 0.0  0.0  0.0  0.0  0.0  3.6  0.0  0.0  0.0  0.0  0.0  0.0  5.4  
              
Total (tonnes) 1,316.0  1,597.2  1,386.1  1,306.6  1,607.3  1,015.1  846.8  628.8  374.7  560.1  451.8  366.2  1,273.5  
              
Bluenose 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.3  0.0  0.0  
Clams 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.2  0.0  0.0  0.0  0.0  
Deep reef fish 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  4.3  0.0  0.0  
Crustacean 0.0  0.0  0.5  7.2  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Grouper 15.6  14.5  10.1  5.0  5.2  10.2  6.4  3.7  2.6  2.1  2.2  0.0  0.0  
Holothuria 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Lobster 0.0  0.0  0.1  0.0  0.0  0.1  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
ReefFish 0.0  0.0  0.3  0.0  0.0  0.2  0.0  12.9  5.2  6.3  3.0  0.2  0.0  
Seaweed 309.9  157.7  239.7  148.7  1,195.0  516.3  299.5  107.7  0.3  15.8  0.0  104.4  311.3  
Shark 0.0  5.4  4.2  5.9  0.7  2.3  4.0  2.2  1.9  1.7  1.3  8.9  249.8  
Snapper 124.6  170.6  265.0  153.3  147.9  154.5  166.6  131.1  103.7  75.3  89.2  81.8  81.1  
Tuna 848.7  1,244.5  862.2  985.6  258.5  331.5  370.1  371.2  246.0  88.8  38.2  91.3  562.7  
Tuna or snapper 17.2  4.5  3.9  0.8  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Sea cucumber 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  14.8  369.9  313.2  79.5  67.9  
Others 0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.7  
                            
Source: Data provided by the Tongan authorities. 
 WT/TPR/S/291/Rev.1 • Tonga 
 
- 76 - 
 
  Table A4. 3 Vessels and tonnage of goods through Tonga's sea ports, 2007-11  
Wharf, vessel, tonnage, containers 2007  2008  2009  2010 2011  
(a) Queen Salote wharf (Tongatapu)     
  Tonnage of goods      
    Unloaded (imported) 223,738 220,188 190,016 193,153 218,869 
      Dry cargo 121,088 120,607 106,880 102,503 110,700 
      Freezer 18,582 16,449 15,557 18,961 22,208 
      Break bulk 2,987 2,468 431 1,937 2,529 
      Cement 12,852 12,698 10,322 11,663 16,456 
      Vehicles 23,816 20,345 17,505 13,748 15,979 
      Timber 4,727 5,934 3,965 4,572 4,992 
      Light oils 38,499 40,484 34,181 38,478 44,592 
      LPG 1,187 1,203 1,176 1,291 1,412 
    Loaded (exported) 18,864 33,548 18,882 16,902 16,328 
      Dry cargo 5,759 12,257 7,692 9,323 7,995 
      Freezer 3,947 7,270 6,110 4,637 5,885 
      Break bulk 655 572 431 694 667 
      Squash 8,257 3,328 4,612 1,593 1,580 
      Vehicles 246 614 38 518 201 
      Timber 0 9,507 0 0 0 
      Light oils 0 0 0 138 0 
      LPG 0 0 0 0 0 
  Containers      
   Inwards 5,810 6,073 5,615 5,341 2,635 
   Outwards 5,806 5,864 5,599 4,962 5,895 
  Type of vessel (total)      
     Yacht .. .. .. .. .. 
     Cruise 14 14 12 5 14 
     Cargo 126 94 101 105 87 
     Tanker 15 29 29 33 32 
     Gas 13 19 18 17 14 
     Warship .. .. .. .. 7 
     Squash 6 2 0 0 0 
     Others 0 0 0 0 8 
(b) Halaevalu wharf (Vava'u)      
  Tonnage of goods      
    Unloaded 20,358 9,698 7,297 .. .. 
    Loaded 944 1,022 323 .. .. 
  Containers      
    Inwards 378 350 234 268 .. 
    Outwards 400 414 440 211 .. 
.. Not available. 
Source: Secretariat of the Pacific Community online information. Viewed at:  
 http://www.spc.int/prism/tonga/ . 
 
 
 
__________