WORLD TRADE  
ORGANIZATION  G/LIC/N/3/TON/1 
5 April 2011 
 (11-1690) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the Agreement on  
Import Licensing Procedures  
 
TONGA 
   The following communication, dated 31 March 2011, is being circulated at the request of the delegation of Tonga. 
 
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Outline of systems
 
 1. The Business Licensing system aims to facilitate business development by levelling the 
"playing field" for investment through legisla tive enforcements of all trading businesses in the 
country.  It also operates as a final stamp to ensu re business compliance with ancillary legislations so 
as to safeguard the health and safety of consumers and the general public. 
 Importation is considered under Schedule 2 of  the Business Licence Regulations 2007 as a 
business activity and therefore requires all businesses which undertake importation activities to hold a 
valid import business licence. 
Purposes and coverage of licensing
 
2. Import Business Licensing covers all pr oduct types except products which breach the 
Consumer Protection Act 2000 and Consumer Protection Regulations  2006.  A single Import Business 
Licence can be utilized to permit the importation of  all product types relevant to the business activities 
registered under the venture in the Business Licence  Registry given that they meet the conditions 
prescribed in the Business Licence Regulations 2007 Schedule 3A. 
3. The system applies to all goods re gardless of their originating country. 
4. The Import Business Licensing is not in any m eans intended to restrict the quantity or value 
of imports but rather to enforce compliance of  all importing businesses to relevant ancillary 
legislations including the Consumer Protection Act 2000 so as to protect the health and safety of the 
general public. 
 Prior efforts to streamline the general licen sing system have recommended the strengthening 
of line ancillary legislative enforcements as an alternative to import business licensing.  However, 
given the role of business licensing in facilitati ng business development, by creating a levelled 
                                                      
1 See document G/LIC/3, Annex, for the questionnaire. G/LIC/N/3/TON/1 
Page 2  
 
  playing field for investment, and safeguarding th e health and safety of the general public, the 
recommended repeal of the business licensing system, including import licensing, was denied by Government in consideration of the consequent thre at to the general public and to investment.  The 
recommendation was to be reconsidered at a late r stage when existing loopholes in the current 
licensing legislative system and limitations in the enforcement capacity of line legislation are 
resolved.  The recommendation was to be reconsidered at a later stage. 
5. Import Business Licensing is stipulated under the Business Licence Regulations 2007 
Schedule 2 and subjected to conditio ns provided in Schedule 3A.  The Business Licence Act requires 
the licensing of all business activities listed in Sc hedule 2 of the Business Licence Regulations, 
including importations, but does not subject any im ported product to administrative discretion.  
Abolishment of the import licensing system by deletion of importation from the list of business 
activities in Schedule 2 is subject to the approval of Cabinet and does not require legislative approval.  
Business activities provided in Schedule 2, including importation. 
Procedures
 
6. N/A. 
 
7. Where there is no quantitative limit on impor tation of a product or on imports from a 
particular country 
(a) The Import Business Licence, such as any othe r Business Licence, is an annual licence and is 
renewed every year prior to the expiry date of 31st December of the year next following the 
renewal date. 
 
 Businesses which inadvertently import goods without an import licence can promptly obtain 
an import licence upon lodging the required app lication with the Business Licensing Unit of 
the Ministry. 
 
(b) Upon application, import business licences can be issued within the timeframe of seven 
working days given that all application requirements are completed. 
 (c) Applications for import business licences can be lodged during any working day.  Renewal 
applications however are to be lodged at least 30 days prior to the expiry of the licence.  
 
(d) The import business licence is not subject to any sector specific requirements and is therefore 
effected by the approval of the Business Licen sing Officer.  However, the importer must hold 
auxiliary business licences for the distribution or processing of the imported products.  These 
auxiliary business licences would be subject to  sector specific requirements as stipulated 
under the Business Licence Regulations Amendment 2010.  
 
8. As provided under the Business Licence Act 2002 Section 8, applications for import licence 
may be refused if the application contravenes Secti on 5 of the Act hence involve a prohibited activity, 
the applicant is under 18 years of age or involve a partnership where one of the partners is under 
18 years of age, or the applicant is a foreign inv estor who does not hold a valid foreign investment 
registered certificate. 
 
 Upon application, the applicant will be advised  to consider the above stated grounds for 
refusal and will be required to pr ovide the requirements necessary fo r the approval of their business 
licence applications, as provided under the Busin ess Licence Regulations Amendment 2010.  A right 
of appeal against refusal of an application is not provided in the Legislations as all complete 
applications are appraised and approved.   G/LIC/N/3/TON/1 
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  Eligibility of importers to apply for licence  
9. All persons, firms and institutions are eligible to apply for licences. 
Documentational and other require ments for application for licence  
10. Refer to Form 1 and Form 3 provide d under the Business Licence Regulations 2007. 
 
11. Documents required upon actual importation are subject to the Customs Department. 
12. Fee for new applications is TOP$ 120 an d for renewal applications is TOP$ 100. 
 13. There is no deposit or advance payment requi rement associated with the issue of licences. 
 Conditions of licensing
 
 
14. As provided under the Business Licence Act 2002 Section 10, a business licence is valid for 
the period ending on 31st December next following the issue date and can be renewed upon payment 
of renewal application fee and subm ission of renewal application form prior to the expiry date of the 
business licence. 
 15. There is no penalty for the non-utilization of a licence or a portion of a licence.  16. As provided under Section 13 of the Business Licence Act 2002, business licences are 
non-transferable. 
 
17. All Import Business Licences are subject to  the below listed conditions as provided under 
Schedule 3 of the Business Licence Regulations 2007, namely:  
-  No goods imported under this licence shall: 
  i. Be counterfeit in nature; 
  ii. Contain labelling that is false, mi sleading or deceptive as to the nature or 
character of such goods; 
  iii. Be described or presented on any labe l by words, pictorial or other devices 
which refer to or are suggestive of an y other goods which such goods may be 
confused with. 
 
Other procedural requirements
 
 
18. There are no other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation. 
 
19. Foreign exchange is subject to banking aut horities and the compliance of the importer with 
their policies.   
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