Fiji WT/TPR/S/213/Rev.1 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Since its previous Trade Policy Review, Fiji has maintained a relatively open trading system.  
The tariff remains the main trade po licy instrument, used selectively to protect domestic industries, as 
well as an important source of tax revenues.  Alt hough the tariff structure has been simplified, applied 
MFN tariff rates have continuously edged upwards, from an unweighted average of 7.9% in 2003 to 
10.4% in 2008, and will reach 11.3%  in 2009 following the recent 200 9 Budget.  Average tariffs for 
agricultural and industrial products were 12.0% a nd 10.1%, respectively, in 2008 (12.7% and 11.1%, 
respectively, in 2009).  This upward trend seems in consistent with the Government’s stated goal of 
gradual tariff reductions to achieve a lower, more un iform rate structure.  There are four rate bands, 
0%, 5%, 15% and 27%;  the top rate will increase to 32% in 2009.  The modal rate, 5%, covered 
almost two-thirds of tariff lines in 2008, and some 30% of tariff lines had rates of 15% or above; this 
situation will remain in 2009.  Narrowing tari ff disparities, especially in 2008, will widen to 
10.6 percentage points in 2009, as measured by the st andard deviation (8.8 per centage points in 2008).  
Tariff escalation remains significant, and will increas e in 2009.  Almost 96% of tariff lines are subject 
to ad valorem  rates, thereby imparting a high degree of transparency to the tariff.  Non- ad valorem  
rates, mainly consisting of alternate rates with minimum ad valorem  duties of 27% in 2008 (raised to 
32% in 2009), apply mainly to used motor vehicl es (including tyres), clothing and other textile 
products, alcoholic beverages, tobacco products, plas tic products, rubber belts for motor vehicles, and 
steel products.  These rates tend to conceal relatively high ad valorem  equivalents.  The coverage and 
rates of additional, de facto tariffs (separate "import excise taxes" levied only on imports unlike excise 
taxes, which are applied to certain "sin" goods whet her imported or produced domestically) levied in 
2006 have increased;  9.8% of tariff items were cove red in 2008.  Inclusion of these rates raises the 
average unweighted MFN tariff in 2008 increases to 11. 4% (12.4% in 2009) a nd widens dispersion to 
10.9 percentage points in 2008 (12.6 percentage points in 2009).    
2. In the WTO, Fiji has bound almost 50% of its tari ff lines, mainly in agri culture, such that the 
average applied MFN tariff rate is well below bound rates (averaging 40.2%).  This gap creates 
uncertainty and provides scope, used during the revi ew period, for Fiji to raise tariffs within WTO 
commitments. Applied rates also  continue to exceed bound rates on a number of items, and the 
introduction of "import excise taxes" may have added to this.   
3. Fiji has improved its customs operations, an d adopted the transaction value method.  
However, obstacles to imports allege dly remain, although this allegation is rejected by the authorities.  
The alleged obstacles include:  lack of impartial application of laws, regulations, and judicial 
decisions;  no effective, formal, private-sector c onsultation mechanism or effective advance ruling 
system; excessive and time-consuming documentation requirements; unreasonable fees and charges; and bribery of officials and othe r corrupt practices to clear imports , including payments to expedite 
release.  Fiji is not a member of the Kyoto Co nvention on customs procedures, but is considering 
joining as part of its participation in the WCO’ s Columbus Programme and plans to fully adopt 
international customs standards by 2012. 
4. Extensive non-transparent tariff concessions include exemptions and end-use arrangements 
that assist certain producers.  Exporters bene fit from duty drawback and suspension, although 
administration of these measures is reportedly comp lex and utilization difficu lt.  High tariffs on raw 
materials and intermediate inputs necessitate such administratively difficult and imperfect schemes if 
they are not to penalize exports.  Discriminatory excise taxes apply to imported tobacco products and 
a 50% local-content requirement is intended to enco urage use of domestic leaf.  The value added tax 
(by and large proving reasonably effective in repl acing tax revenues lost owing to previous tariff WT/TPR/S/213/Rev.1 Trade Policy Review 
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reductions associated with trade liberalization) appears not to discriminate against imports.  A number 
of import prohibitions, restrictions, and licensing re quirements for health, security, and moral reasons 
remain in place.  Imports of used motor vehicles older than four years (increased to eight years for 
2009) and plastic bags were prohi bited in late 2007.  Fiji has ta ken no anti-dumping or countervailing 
action during the review period, and has no safeguards legislation.  It has no intention of becoming a 
signatory to the WTO Government Procurement Ag reement.  Despite efforts to improve public 
procurement, with new legislation being suspe nded in December 2006, regulations remain time-
consuming and bid-rigging/collusion is a problem. 
5. Fiji has few standards and technical regulations , and most have been adopted from Australia 
and New Zealand.  Revised food safety regulations  were implemented in 2003.  Fiji has no drug 
registration process, and pharmaceuticals are all imported by licensed wholesalers.  Drugs must comply with either British or American standards. 
6. In order to promote domestic downstream pro cessing, and thus value-added, export taxes of 
3% apply to sugar, molasses, gol d, silver and, from 2009, unpro cessed timber (round logs exports are 
already banned).  Exports are also controlled by an  extensive export licensing system.  The system for 
providing VAT refunds on inputs used in exports has b een inefficient.  Export incentives, in the form 
of 50% income tax exemptions, were extended for tw o years in the 2009 Budget.  Other extensive tax 
incentives, of dubious economic merit, are intended to encourage investment, often targeted at priority 
sectors (e.g. tourism and audio-visual industry);  some require minimum local-content or export 
requirements.  These, including widespread gener ous tax holidays, were extended in the 2009 Budget, 
and a new tourism package replaces the existing sch eme at end-2008.  Concessionary export finance 
is available from the Reserve Bank.  Fiji's exports  under major preferential arrangements are subject 
to restrictive and complex rules of origin, and its fish sales to the EC were prohibited in May 2008 on 
SPS grounds.   
7. Fiji maintains extensive price controls on basi c food items, pharmaceuticals, fuel, cement, 
steel, and cigarettes as well as services, such as rent s, education fees, and telecom charges.  Its 
consumer protection and competition law, the Fair Trading Decree 1992, was amended extensively in 
1998.  The Commerce Commission administers the comp etition provisions of the legislation while the 
Department of Fair Trading and C onsumer Affairs is responsible for consumer protection.  Under its 
competition policy adopted in late 2004, the 0ove rnment intends to enforce more competitive and 
contestable markets to encourage efficiency.    
8. There are several statutory agricultural ma rketing arrangements.  Sugar production and 
marketing is regulated.  The government has accumulated sizeable contingent liabilities from 
supporting state-owned enterprises via loans, standing debt guarantees, and equity injections.  It now 
charges fees of up to 2% on its debt guarantees.  Privatization has progressed slowly, and is seemingly 
a low government priority seen principally as a mean s of balancing budgets rather than improving 
economic efficiency.   
9. Fiji has joined no WIPO treaties since its last  Review, but has amended its copyright and 
patents laws.  Copyright enforcement seems weak, and the legality of parallel imports is unclear. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
10. The Customs Service of the Fiji Islands Revenue & Customs Authority (FIRCA) is 
responsible for all customs matters.  It was formed  in January 1999 by merging the Inland Revenue 
Department and the Customs and Excise Departme nt (Fiji Islands Revenue and Customs Act 1998).  
Fiji became a member of the World Customs Orga nization in July 1997 but has acceded to only Fiji WT/TPR/S/213/Rev.1 
 Page 45 
 
 
two of its conventions.1  In particular, it has not joined the International Convention on the 
Simplification and Harmonization of Customs Proc edures (Kyoto Convention), including the revised 
version, which entered into force internationally in February 2006.  FIRCA’s long-term strategy is to 
commence the necessary pro cesses to accede to the Ky oto Convention, and a Kyoto Committee is to 
be established to formulate a target project plan, including preparing a study comparing current 
customs practices against Kyoto standards, to fully adopt international customs standards by 2012 as 
recommended in the 2008 WCO Diagnostic Study on the Columbus Programme and the 2008 IMF 
Review of Fiji’s Tax and Customs Operations.2  Recent Fijian customs reforms reflecting Kyoto 
standards include the Border Cash Reporting regi me and the FIRCA Risk Management Framework.  
Acceding to the Kyoto Convention would have imp lications for Fijian customs especially in risk 
management, automation, closer working relations hips with stakeholders, integrity, and trade 
security/facilitation. 
11. Fiji belongs to the Oceania Customs Organiza tion (OCO), and the OCO Secretariat was re-
located to Fiji in 2007.  Fijian Customs has signed Memorandums of U nderstanding (MOUs) with 
several foreign counterparts, including Australia  and New Zealand, to enhance cooperation and 
mutual administrative assistance.   
12. Fiji's main customs legislation (the Custom s Act 1986, the Customs Tariff Act 1986 and the 
Customs Regulations 1986) has been amended since its last Review to facilitate trade;  this included 
modernization and harmonization with trading partners .  Several amendments were made in the 2008 
Budget.3  Other changes included: the introduction in the 2006 Budget of secrecy provisions to 
prevent customs officers from releasing confidential information;  supply-chain security provisions, 
such as stiffer penalties for illegal actions (includi ng by customs officers), and licensing of areas 
holding goods under customs control;  authority to st op customs clearance when there is any tax debt;  
and reducing the maximum period for bonded warehous ing from five to three years (subsequently 
reduced in the 2007 Revised Budget to one year, ex tendable for a further year, to minimize leakage 
and assist revenue collection).4  Nevertheless, although rejected by the authorities, it has been 
suggested that obstacles remain, such as lack of im partial application of laws , regulations, and judicial 
decisions;  no effective, formal private-sector c onsultation mechanism or effective advance ruling 
system;  excessive and time-consuming documentatio n requirements;  unreasonable fees and charges;  
and bribery and other corrupt practices to clear imports, including payments to expedite release.5  
Temporary importation, re-importation, a nd bonded and customs warehouses are allowed.6  Appeals 
on all customs matters are handled by the Court of Review, and its decisions may be appealed to the 
Supreme Court.  
                                                      
 1 The Convention on the Harmonized Commodity Description and Coding System, and the Customs 
Convention on the Temporary Importation of Scientific Equipment.    
 2 The WCO Columbus Programme, a customs capacity-building framework involving diagnostic 
studies of members, on request, was launched in January 2006.  Its aim is to help members meet the Framework 
of Standards to Secure and Facilitate Global Trade, a dopted by the WCO in June 2005 as an international 
customs instrument containing 17 standards, which promotes security and facilitation of the international supply 
chain. 
 3 Customs Act (Budget Amendment) Promulgation 2007 (No. 14). 
 4 Customs Act (Budget Amendment) (No. 2) Promulgation 2007 (No. 41). 
 5 Prasad (2006a). 
 6 In the case of temporary imports an  acceptable deposit or security mu st be provided.  For re-imports 
any overseas materials used in the goods will be levied the tariff applicable to them based on their added cost. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 46 
 
 
(a) Registration and documentation 
13. Commercial importers and customs agents must be registered with FIRCA and have a Tax 
Identification Number (TIN).  In August 2006, Agen ts Importers Exporters (AIE) codes began to be 
phased out as the common identifier for submitting import declarations to customs under the 
Automated System for Customs Data (ASYCUDA ), which was updated to version 18c and its 
network infrastructure improved.7  A Single Administration Document (SAD), used to declare goods 
of over F$100, may be submitted electronically or  manually.  Up to 12 other documents may be 
required, including import licences, inspection reports  and technical standards, health certificates, 
certificates of origin, and SPS certificates, where needed.  Documentation requirements are excessive 
and time-consuming, and advance clearance procedures and rudimentary.8  The authorities indicate, 
however,  that currently only four documents (invoice, packing slip, bill of lading, and the C45 
declaration form) are legally required, and that the other documents are only used in exceptional 
cases.  Computerization has been extended to allo w shipping manifests and SADs to be submitted and 
processed electronically, and most brokers and traders operate online to process documents unless profiled for customs checks.  Further computerization of the system, including establishing a single 
window for submission and collection of trade doc uments, would enhance customs efficiency.  
Customs intends to introduce an electronic payment system in 2009.  
14. Customs clerks, who are authorized to clear and facilitate documenta tion of imports (and 
exports), must meet certain qualification require ments (Diploma in Customs Business from Fijian 
Institute) and, like customs agents, brokers, and customs carriers, be licensed by FIRCA.  Goods 
valued over F$20,000 are automatically channelled th rough the Yellow Lane for closer examination, 
especially of documentation.  Goods selected to pass  through the Red Lane are physically inspected.  
In 2007, some 47% and 20% of SADs were automa tically selected to pass through the Red and 
Yellow Lanes, respectively, based on importer profiles built into ASYCUDA.   Risk-assessment 
procedures for determining inspection could be im proved, and no accelerated procedures exist for 
authorized traders or express shipments.  Completing import procedures and clearing goods can take up to 25 days, including port handling.
9  However, the authorities believe this is inaccurate and that 
some 95% of imports are cleared within three days, with most on arrival;  even declarations profiled 
for customs checks or examinations are cleared the same or next day.   The 2008 Budget reduced the 
warehousing period for all imported motor vehicles a nd plant and machinery from one year to four 
months for revenue-raising reasons.10   
(b) Valuation procedures 
15. Customs continues to implement the WTO Customs Valuation Agreement, and the 
transaction value is used for levying tariffs on goods.  Fiji's legislation mirrors the WTO rules 
(Clauses 1(10–12) of Schedule 1, Customs Tariff Act, 1986, inserted in 1997).  Where Customs suspect under-valuation it creates an audit trail to scr utinize the goods to determine correct value, and 
large penalties, of up to one third of the good's value, can be imposed;  valuation disputes between traders and officials are claimed to be common.
11  Nevertheless, the authorities indicated that some 
90% of imports are cleared online without any manual intervention. 
                                                      
 7 FIRCA (2006).   
 8 Based on Prasad (2006a), p. 28. 
 9 Eleven days to prepare documents, two days to clear customs and technical controls, ten days for port 
and terminal handling, and two days for inland transportation and handling (World Bank, 2008a). 
 10 Customs Act (Budget Amendment) (No. 2) Prom ulgation 2007 (No. 41).  Goods exceeding this 
period may be sold by Customs with one month’s notice.  
11 Prasad (2006a), p. 28. Fiji WT/TPR/S/213/Rev.1 
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16. The customs value for cinematographic film for hire is fixed at the time of importation at 
F$15,000 for English (and other language  films) and F$20,000 for Hindi films.12  Imported used 
clothing and second-hand motor vehicles are subject to  alternate tariffs;  on the latter, these increase 
with engine size, which ensures the minimum tari ff rate is 32% (increased from 27% in the 2009 
Budget).13  These alternate rates are aimed at addressi ng under-declared values (and consequent tariff 
evasion).   
17. Fiji does not require preshipment inspection of  imports.  From July 2008, imported second-
hand cars from Japan no longer need to be inspected by an authorized Japanese firm to ensure air-
conditioning units contain no prohibited CFCs.14 
(c) Rules of origin 
18. Fiji does not have specific legislation on non-preferential rules of origin.  Preferential rules of 
origin are contained in its specific bila teral and regional trade agreements.   
SPARTECA 
19. General rules of origin require the last manufactur ing process to be in Fiji and at least 50% of 
a product's total factory cost to represent "allo wable expenditure" in the Fiji qualifying area (Fiji, 
other FICs, Papua New Guinea, New Zealand, and Australia, but in New Zealand’s case only to the 
extent of qualifying Australian materials).  "Allowa ble expenditure" includes free-into-store factory 
cost of Fijian materials, and attributed labour a nd factory overhead costs.  However, Australia and 
New Zealand apply some unique provisions, which further complicate matters for Fijian exporters.15  
For example, Australia includes freight from the por t/airport to the factory on materials as qualifying 
expenditure and before 1996 rem oved the 25% minimum FIC-content requirement when exports to 
Australia incorporate New Zealand material (New Zealand continues to apply this 25% minimum FIC 
content where qualifying Australian materials are u sed in the goods’ manufacture).  Moreover, while 
non-manufactured products or materials imported from  outside the qualifying area do not count as 
allowable expenditure, Australia does allow the freig ht costs of transporting such materials from the 
port/airport to the factory.  Differences also appl y in the treatment of "mixed origin" materials 
(incorporating both qualifying and non-qualifying area content).16  A temporary 2% tolerance margin 
may be applied in exceptional circumstances.  An Australian-Fiji Protocol on Customs Procedures for 
Rules of Origin Under SPARTECA was developed at  the request of Australian and Fijian textiles, 
clothing, and footwear industries.  
20. Australia and Fiji have agreed to negotiate a set of guidelines on derogation, which may be 
requested by Fiji (and other FIC governments) fr om Australia and New Zealand under "special 
circumstances".  A number of meetings have been he ld on relaxation of rules of origin.  Derogations 
would apply to all such goods originating from one or all FICS, and may be extended beyond the 
                                                      
 12 FIRCA (2007b). 
 13 For example, imports of used clothing are subject to a tariff rate of 32% or F$0.96 per kg, whichever 
is the greater.  Tariffs on second-hand motor vehicles range from 32% or F$5,550 per unit for vehicles with 
engine capacity not exceeding 1,000 cc to 32% or F$15,000 per unit for vehi cles with engines above 3,000 cc, 
whichever is the greater.  
14 Fiji Times,  "Customs seize 5,000 cars", 31 may 2007. 
 15 Forum Secretariat (1996). 
 16 Australia and New Zealand treat materials of "m ixed origin" that account for 50% or more of 
allowable expenditure as 100% allowable expenditure on  those materials, but calculate allowable expenditure 
differently.  Australia calculates the percentage of allo wable expenditure as the total expenditure on materials 
less the cost of materials from outside  the qualifying area, while New Zeala nd calculates the local content of the 
material by reference to its factory cost.   WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 48 
 
 
maximum period of three years if the special circ umstances continued.  Requests must be decided 
within three months.  For Australia, "special circ umstances" cover natural and economic disasters and 
unexpected large currency fluctuations that signi ficantly reduce FIC local content.  Australian 
Customs also considers the views of Australian ma nufacturers and will give no derogation where it is 
likely to threaten their interests.  New Zealand continues to apply the derogation of a minimum 45% 
local content for certain clothing, e.g. shirts;  it was originally for three y ears but has been extended 
indefinitely.17   
21. Australia applies special arrangements to textiles, clothing, and footwear under the 
SPARTECA (TCF Provisions) Scheme, introduced in  2001 and extended until 2012.  This complex 
and highly arbitrary scheme enables certain goods not entitled to duty-free entry under SPARTECA to 
enter Australia duty free providing specific conditi ons are met, including a lower minimum local-area 
content of 35-50%;  Fiji has requested chang es to the scheme, including reducing the content 
requirement to 25%;  Australia agreed to this  commencing no earlier than 2008, subject to Fiji 
establishing a credible audit and compliance programme (Chapter IV).18  FIC manufacturers must 
register annually under the scheme.  Eligible goods include leather goods and textiles, clothing and 
footwear, excluding those containing wool (specified by tariff item).19 
22. Fiji and other FIC have called for a review of SPARTECA rules or origin to improve market 
access to Australia and New Zealand (Chapter IV).  According to Forum Trade Ministers, such a 
review should encompass all pro ducts, including specific sectoral rules for certain products, and 
examine shifting from a value-added to a change-in- tariff-heading (CTH) approach.  Rules of origin 
based on value-added are especially restrictive for Fiji since most inputs and raw materials are 
imported.       
PICTA 
23. Rules of origin require either the good to be  wholly produced or obtained in the exporting 
country, or that the final process of manufacture is performed in the exporting partner country with at 
least 40% of the goods’ factory cost being origina ting materials, labour, and overhead costs.  Under 
short-term difficulties or unforeseen circumstances, pa rties may agree to temporarily apply a tolerance 
margin of up to 2% on indivi dual shipments.  Temporary derogations are also permitted where the 
operation of the rules would unduly restrict trade and, inter alia , the goods have been "substantially 
transformed" in the exporting state but cannot qualify as originating goods due to exceptional 
circumstances.   No sectoral rules of origin apply.    
EPA 
24. Rules of origin under the 2007 interim EPA are contained in Protocol II of the Agreement, 
entitled Concerning the Definition of the Concept of the "Originating Products and Methods of 
Administrative Cooperation", which the authorities indicated were still being finalized.  Since the 
                                                      
 17 New Zealand Ministry of Economic Development (1999). 
 18 Under the scheme, where the share of allowable f actory costs in total fact ory costs (LAC) exceeds a 
set minimum share (ELAC), currently 70%, ELAC points  can be earned by regi stered manufacturers who 
undertake the last process in making eligible goods using the formula:  total factory cost x ELAC (each unit of currency equates to one ELAC point).  Eligible foods expo rted to Australia are deemed  to be qualifying goods 
provided the LAC exceeds or equals the minimum set LAC,  currently 35%, for eligible goods to participate in 
the scheme and the registered manufacturer has the required number of ELAC points.  The required number of ELAC points for eligible goods to become qualified goods is  determined using the formula:  total factory cost x 
[(50-LAC x 100)2/ 100], where LAC is expressed in decimal form  and each unit of curr ency equates to one 
point.  ELAC points have a set expiry date, currently 18 months from when the eligible goods were made.  
19 Australian Government (2006). Fiji WT/TPR/S/213/Rev.1 
 Page 49 
 
 
authorities believed that the EPA was meant to be Co tonou Plus, Fiji anticipated that rules of origin 
would be relaxed.   However, they indicated that such rela xations are rare, e.g. on canned tuna.  
Negotiations on revisions to the Protocol and rules of  origin are to start no later than four years from 
entry into force with a view to implementing new, simplified arrangements based on value-added 
criteria (with which Fiji is uncomfortable) in the fifth year.   
25. To facilitate fish exports to the EC, Fiji want ed the Cotonou rules of origin for preferential 
access relaxed under the interim EPA (Chapter II).  Changes included elimination of the requirement 
that at least 50% of the vessel’s crew and officers ha d to be ACP/EU nationals, and the revision of the 
requirement that at least 50% of the boat's owners hip must be by ACP/EU na tionals.  Moreover, the 
system for setting tolerance limits for ineligible fish, previously setting non-originating raw materials 
at a maximum of 15% of the ex-works price, has b een revised.  It is unclear, however, if the rules 
have changed on eligibility of chartered vessels, wher eby at least 50% must be ACP/EU nationals and 
that the charter/lease must be accepted by the ACP-EC Customs Cooperation Committee.  The main 
benefit of these changed rules is that processors can  now source fish from vessels regardless of flag, 
ownership, and crewing requirements i.e. use "global sourcing" of fish (e.g. fresh and frozen tuna) to 
make fish products (e.g. canned tuna  and tuna loins for reprocessing).20  However, the EU prohibited 
all imports of fish from Fiji in May 2008, based on claims that serious deficiencies in Fijian inspection and processing requirements potentially put their consumers at risk.
21 
MSG 
26. The MSG has loose rules of origin requiring a change in 4-digit HS classification, with 
special processes defined as not constituting originat ing products;  these include packing, marking and 
labelling, mixing of products, simple assembly of  parts of articles, and slaughter of animals.22  There 
are no special sectoral rules of origin.  The authorities indicate that the liberal rules of origin made the 
MSG the most effective agreement among the four countries.   
Other 
27. The rules of origin in the Fiji-PNG Trade Ag reement are similar to those of the MSG. 
(ii) Tariffs  
28. Fiji's tariff rates are contained in Schedule 2 (P arts 1 and 2) of the Customs Tariff Act, 1986.  
They are amended annually by FIRCA at the end of  each calendar year (usually November) for the 
following year, as part of budget deliberations.23  Tariff rate changes must  be approved by Parliament 
and become operative when the legislation is passed, usually during the budget sitting.24  While tariff 
changes during the year are unusual, they occur, e.g.  tariffs on a number of basic food items, such as 
rice, edible oil, and tinned fish, were removed in June 2008.25 Throughout the year the finance 
ministry invites stakeholders to make tariff proposals for the forthcoming budget, and these are 
assessed in the Revenue Technical Committee (cons isting of the finance ministry and FIRCA 
officials).  Such decisions are based on general guiding principles, including to protect local and 
                                                      
 20 FFA (2007), p. 2. 
 21 FFA (2008), p. 7.  The authorities indicate that prior to the ban Fiji was exporting canned tuna to 
Spain and fish loins to the United Kingdom. 
 22 Changau (2004). 
 23 Tariffs for 2008, for example, are given in the Customs Tariff Act (Budget Amendment) (No. 4) 
Promulgation 2007 (No. 40) and became operative from 23 November 2007.  Changes announced in the 2009 
Budget, on 21 November 2 008 took immediate effect. 
 24 Parliament passes these as legislativ e changes to the Customs Tariff Act. 
 25 Minister of Finance and National Planning (2008a), p. 23. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 50 
 
 
infant industries, encourage exports, and optimize re venue collection.  Tariffs serve both revenue and 
protection goals.  Fiji uses tariffs selectively to  protect local industry, and light manufacturing has 
developed behind protective barriers.26  The Government remains committed to protecting key 
domestic industries, as illustrated by the tariff ra te increases in the 2003 Budget and more recently.27  
The interim Government reversed the 2007 Mini Budge t decision reducing the alternate tariff rate on 
potato chips from July 2007 to protect the local industry.28  The 2009 Budget raised the top tariff rate 
band of 27% to 32%, immediately and increased du ties of 5% on light bulbs and multi-wick kerosene 
stoves, and of 15% on mobile phones, golf cars and similar vehicles, a nd chicken and chicken 
products, to 32%. 
29. The Government has previously indicated that ta riff protection is to be phased out, but has set 
no timetable.29  This policy goal was reinforced in th e Government’s Sustainable Economic and 
Empowerment Development Strategy  (SEEDS) 2008-2010, which also recognized the need to reform 
tariffs so as to reduce effective rates of protection to more uniform levels (Chapter II(4)).  However, 
the 2009 Budget suggested that the Government’s appr oach would be gradual, in order to protect 
revenue and domestic industries fro m foreign competition, and announced tariff increases, which on 
the back of previous rises in average tariffs seem inconsistent with trade liberalization objectives  
(Chapter II(4)).    
30. Apart from tariff rate changes (MFN and pref erential) there have been no fundamental 
changes in the Customs Tariff Act since the last Re view of Fiji.  Preferential tariff rates are not 
included in the Customs Tariff.  Instead, they are provided for under Code 122, which refers to 
preferential tariff rates for any good produced or manufactured in any Forum Island Country or any other country approved by the Minister, and gran ted ministerial approval under Section 10 of the 
Customs Tariff Act. 
31. A broader domestic tax base as a revenue sour ce with fewer exemptions and incentives, to 
reduce reliance on tariffs, which are an inefficient ta x, could help limit any revenue losses associated 
with tariff reductions that are likely to improve economic efficiency.
30  Moreover, revenue 
considerations do not justify Fiji's non-uniform ta riff, which only accentuates the economic costs of 
tariff protection.  A more uniform, low tariff, including rationalization of widespread tariff 
exemptions, can lead to lower revenue losses th an expected, as evasion is reduced and imports 
increased, thus meeting revenue concerns w ithout the large economic costs from tariffs.31 
 
32. Tariffs are levied on a c.i.f. basis.  Fiji a dopted the HS 2007 nomenclature in 2007.  This 
reduced the number of (8-digit) tariff lines, whic h fell further in 2008 to 5,782. The Fijian tariff 
schedule includes only MFN rates and is published a nnually in hard copy and posted on the FIRCA 
website. 
                                                      
 26 Scollay (2002). 
 27 FRC (2004), p. 18. 
 28 FIRCA (2007a);  and Customs Tariff Act (Amendment) (No. 3) Promulgation 2007 (No. 22), June. 
 29 Ministry of Finance (2007), p. 60. 
 30 Unlike domestic commodity taxes, such as VAT and excise taxes on "sin" goods, tariffs discriminate 
against imports and therefore distort resource allocation and hence economic  efficiency by attracting resources 
into more highly protected goods.  Even though tariffs apply to many goods not produced domestically and 
hence are akin to a domestic tax, the potential discrimination provides an incentive to commence domestic production.  It has been suggested that FICs, including Fi ji, could protect any revenue falls from reducing tariffs 
by converting import duties on "sin" products and certain luxury goods to excise duties and raising them for 
health and equity reasons (Narsey, 2003).  
31 ADB (2007). Fiji WT/TPR/S/213/Rev.1 
 Page 51 
 
 
33. Tariff rates on motor vehicles were restructured  in 2008.  In general, new vehicles are 
dutiable at 27% (raised to 32% for 2009), while second-hand vehicles are subject to alternate rates with a minimum 27% (32% for 2009) duty, but a range of higher specific duties varies according to mainly engine size and carrying capacity.  Thus, the ad valorem  equivalent on used, especially 
cheaper, vehicles will be well above 27 % (32%) and potentially very high.
32  Tariffs on new trucks, 
cabs, chassis, and trailers were increased from 15% to 27% (32% for 2009), while alternate duties 
were introduced for such used vehicles.  In add ition, the number of duty bands on used buses was 
reduced and the specific rate component of the alternate duties lowered to F$10,400 for buses 
carrying 10-15 persons, F$12,400 for 16-22 persons, and F$16,500 for over 22 persons.  Tariffs on 
new buses were reduced from 27% to 5% under concessionary arrangements until end 2010.33  The 
number of tariff bands on used motor cars was also reduced and the specific-rate component of the 
alternate duties increased to F$5,500 for vehicles w ith engine capacity up to 1,000 cc, F$7,350 for 
1,000-1,500 cc, F$11,150 for 1,500-3,000 cc, and F $15,000 for larger-engine vehicles.  Tariffs on 
new passenger vehicles were kept at 27% (32% for 2009).  Those on new earth-moving equipment 
were increased from 3% to 5% and on such second-hand vehicles from 3% to 27% (32% from 2009). 
34. Fiji has no tariff quotas. 
(a) Tariff averages, ad valorem  rates, and dispersion 
35. Fiji has simplified its tariff structure since its last Review.  However, average (unweighted) 
MFN tariffs have risen continuously since 2003 (7 .9%), and will rise further in 2009 from 10.4% to 
11.3% (Table III.1), albeit still below the average of 12.4% estimated for 1996 during the last Review.  
This reflects some backsliding in Fiji's tariff reforms in response to pressures from domestic 
industries.34  MFN rates, on average, are consistently  higher on agricultural products than industrial 
products (especially in the HS definition);  for 2009 these rates will be 12.7% and 11.1%, 
respectively.  Average tariffs on textiles and clothing have also risen since 2003, from 12.7% to 13.8% in 2008, and will be 15.7% in 2009 (12.7% in 2007).  A major explanation for rising average 
tariff rates has been the decline in the share of du ty-free tariff lines, especially in 2007;  these fell 
continuously, from 9.5% in 2003 to 3.2%, and to 3.0% in 2008 and 2009;  most zero rates were 
increased to mainly 3% but also 15% in 2007, and 5% (15% on one item) in 2008.
35  In 2008, tariffs 
were also increased from 3% to 5% on some 3,500 tari ff lines.  The rise in average tariff rates in 2009 
reflects the replacement of the top tariff band of 27%  with a rate of 32%, announced with immediate 
effect in the 2009 Budget (November 2008).  Fiji has no nuisance tariffs (2% or below).  Tariffs on 
average will be higher in 2009 than 2003 in all HS 2-digit sections, except for "fats and oils", with 
rises most pronounced in "precious stones, etc" (Cha rt III.1).  Average tariffs in 2009 will be highest 
on prepared food, etc., footwear and headgear, transport equipment, and arms and ammunition. 
                                                      
 32 For example, the ad valorem  tariff equivalent of the specific duty component of F$5,550 paid on 
imported used motor cars of below 1000 cc would be above 27% for all cars valued below F$20,556.  Thus, on 
a used car imported for F$5,000 the ad valorem  equivalent tariff rate would be 111%.   
 33 Section 10 of the Customs Tariff Act. 
 34 FAO (2003). 
 35 For example, in 2008 tariffs were increased from zero to 15% on laptops and from zero to 5% on 
PCs, monitors, and projectors, excluding televisions. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 52 
 
 
Table III.1 
Fiji's tariff structure, 1999 and 2003-09a 
(Per cent) 
    MFN  MFN 
  1999 2003 2004 2006 2007 2008 2009 Final 
boundb 
1. Bound tariff lines (% of all tariff lines) 50.5 49.5 49.5 49.5 49.5 49.5 49.5 49.5 
2. Simple average rate 10.0 7.9 8.4 8.5 9.1 10.4 11.3 40.2 
    Agricultural products (HS01-24) 12.2 9.1 10.5 10.6 11.5 12.0 12.7 40.7 
    Industrial products (HS25-97) 9.7 7.7 8.1 8.1 8.8 10.1 11.1 40.0 
    WTO agricultural products 10.9 8.2 8.9 9.0 9.9 10.8 11.5 40.6 
    WTO non-agricultural products 9.9 7.8 8.4 8.4 9.0 10.3 11.3 40.0 
        Textiles and clothi ng 11.1 12.7 12.9 12.9 12.7 13.8 15.7 40.0 
3. Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
4. Domestic tariff "peaks" (% of all tariff lines)c 0.0 18.1 18.4 18.7 0.0 0.0 0.0 0.0 
5. International tariff "peaks" (% of all tariff lines)d 18.3 18.7 18.4 18.7 19.0 18.5 18.5 98.9 
6. Overall standard deviation of tariff rates 9.5 9.4 9.7 9.7 9.6 8.8 10.6 2.1 
7. Coefficient of variation of tariff rates 1.0 1.2 1.1 1.1 1.1 0.8 0.9 0.1 
8. Duty-free tariff lines (% of all tariff lines) 34.8 9.5 9.4 9.4 3.2 3.0 3.0 0.0 
9. Non- ad valorem  tariffs (% of all tariff lines) .. 3.9 4.3 4.4 4.6 4.5 4.5 1.1 
10. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) .. 3.9 4.3 4.4 4.6 4.5 4.5 1.1 
11. Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
.. Not available. 
a Data not available for 2005. 
b Based on 2006 tariff schedul e.  Implementation of the U.R. was reached in 2005.  Calculatio ns on bound averages are based on 
2,946 bound tariff lines (representing 49.5% of total lines), out of which 2,934 (49.3%) are fully bound and 12 (0.2%) are partially bound. 
c Domestic tariff peaks are defined as those exceeding three times the overall simple 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: Calculations exclude specific rates and include the ad valorem  part of alternate rates.  The 1999 tariff schedule is based on 8-digit 
HS96 nomenclature consisting of 6,020 tariff lines.  The 2003,  2004, and 2006 tariff schedules are based on 8-digit HS02 
nomenclature consisting, respectively, of  5,934, 5,947, and 5,948 tariff lines;  the 2007, 2008, and 2009 tariff schedules are based 
on HS07 nomenclature consisting, respectively, of 5,793, 5,782, a nd 5,782 tariff lines.  Averages including import excise taxes  
are 9.1%, 10.2%, 11.5%, and 12.4%, respectively, for 2006, 2007, 2008, and 2009.  Estimates for 2009 are based on tariff changes announced, with immedi ate effect, in the 2009 Budget. 
Source: WTO calculations, based on data provided by the authoriti es of Fiji;  and Ministry of Finance and National 
Planning (2008), Economic and Fiscal Update:  Suppl ement to the 2009 Budget Address,  November. 
36. The share of international tariff peaks (tariffs  exceeding 15%) rose to 19% of tariff lines in 
2007 but fell slightly to 18.5% in 2008, and will re main at this level in 2009 (marginally below the 
2003 figure of 18.7%).  However, of direct importa nce to Fiji's resource-use efficiency, there have 
been no domestic tariff peaks (rates exceeding thr ee times the overall simple average) since 2007 
(18.7% in 2006), and this will remain the case for 2009.   Nevertheless, the tariff structure is relatively 
disparate overall, with a standard deviation of 8.8 percentage points in 2008 (9.6% in 2007), and this 
will rise to 10.6 percentage points in 2009.  Redu ced disparities in 2008 reflected mainly increased 
lower rates (from zero and 3%) rather than lowered higher rates, even though tariff rates of 27% were 
reduced to 15% on some 45 tariff lines, including on certain agricultural products such as leguminous vegetables, white rice, and fresh or chilled chicken,  beef and pork, as well as canned fish, including 
tuna, and other processed goods such as paper bags , sacks and biodegradable plastics, copper cables, Fiji WT/TPR/S/213/Rev.1 
 Page 53 
 
 
rigid plastic pipes, flexible pipes, tubes and hoses, kitchenware, and cement.36  Reducing disparities 
through such "bottom up" tariff increases, which al so raise the overall average, may reduce resource-
use efficiency, while a "top down" approach that  reduces higher tariffs and lowers both the overall 
tariff average and dispersion is much more likely to  improve resource allocation.  Wider disparities in 
2009 will reflect the higher tariff band of 32% (from 27%) and a few other tariff increases e.g. from 
15% to 32% (Chapter III(2)(ii)). 
0.05.010.015.020.025.030.0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Calculations exclude specific rates and include the ad valorem  part of alternate rates.   Averages for 2003 are based on HS02 
nomenclature, and for 2009 on HS07. 
WTO Secretariat calculations, based on data provided by the authorities of Fiji;  and Ministry of Finance and National 
Planning (2008), Economic and Fiscal Update:  Supplement to the 2009 Budget Address, November.Per centChart III.1
Average applied MFN tariff rates, by HS section, 2003 and 2009
Note:
Source :01   Live animals & products        
02   Vegetable products03   Fats & oils      04   Prepared food, etc.05   Mineral products06   Chemicals & products07   Plastics & rubber
08   Hides & skins09   Wood & articles10   Pulp, paper, etc.11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals and products16   Machinery17   Transport equipment18   Precision instrument19   Arms & ammunition
20   Miscellaneous manuf.21   Works of art, etc.MFN 2003
MFN 2009
Average applied rate 
2009 (11.3%)
Average applied rate
 2003  (7.9%)
 
37. The low number of rate bands and share of non- ad valorem  duties adds to the transparency 
and predictability of Fiji's tariff regime.  Four ad valorem  rate bands in 2008 (zero, 5%, 15%, and 
27%) will remain in 2009, with the 27% band replaced by the 32% rate.37  In 2009, the modal rate of 
5% will cover 63.3% of tariff lines (Chart III.2).  Th e next most common rate bands in 2009 will be 
32% (18.5% of tariff lines) and 15% (13.8% of lin es);  thus, some 30% will have rates of 15% or 
more.  In addition, non- ad valorem  rates, mainly consisting of altern ate rates of the "whichever is the 
greater" type, with an ad valorem  minimum duty of 27% (32% in 2009), applied to 4.5% of tariff 
                                                      
 36 According to officials, a scheme announced in the 2008 Budget to provide 150% income tax 
deductions to any business adversely affected by these tariff cuts was never promulgated (Ministry of Finance 
and National Planning, 2007, p. 60).  A few rates of 15% were lowered to 5%, including on all types of dhal 
including split peas.  Tariffs on a number of goods were raised from 3% to 15%, such as on mobile phones, 
fresh/dried coconut, and some fruits (e.g. pineapples and mangoes). 
 37 The Fiscal Review Committee's recommendation to introduce two more rate bands of 10% and 20% 
to provide extra flexibility in avoiding sudden drops in protection was not adopted (FRC, 2004, p. 37).   WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 54 
 
 
lines in 2008 and will remain at this level in 2009 (down from 4.6% in 2007, but up from 3.9% in 
2003).  These duties cover a range of products, including mainly used motor vehicles (including tyres), clothing and other textile products, as well as alcoholic beverages, tobacco products, plastic 
products, rubber belts for motor vehicles, and steel products.
38  Certain used machinery is also 
dutiable at a tariff of 5%, compared with 27% for new items (32% in 2009). 
0.6% 0.0%9.6%
n.a.9.5%60.9%
18.0%
n.a.13.8% 
n.a. n.a.63.3%
n.a.3.0%
n.a.18.5%
05001,0001,5002,0002,5003,0003,5004,000
Duty free 3% 5% 10% 15% 20% 27% 32%MFN 2003
MFN 2009Number of tariff linesChart III.2
Distribution of MFN tariff rates, 2003 and 2009
Tariff rates
Not applicable.
Percentages denote the share of total lines.  Calculations exclude specific rates and include the ad valorem  part of 
alternate rates.  Averages for 2003 are based on HS02 nomenclature, and for 2009 on HS07.  Totals do not add up to 
100% as no rates are available for 1.4% and 1.5% of lines, respectively, for 2003 and 2009 (i.e. those that have specific 
rates).
WTO Secretariat calculations, based on data provided by the au thorities of Fiji;  and Minist ry of Finance and National 
Planning (2008), Economic and Fiscal Update:  Supplement to the 2009 Budget Address, November.n.a.
Note:
Source :
 
(b) Escalation 
38. The top band, 27% in 2008 (32% in 2009), protect s mainly domestic industries, while the 
middle band covers mainly interm ediate and manufacture d goods and the lower rates raw materials.39  
Thus, tariff escalation remains significant, especially in 2-digit ISIC industries:  textiles and leather;  
wood and furniture;  chemicals;  and fabricated me tal products and machinery (Chart III.3).  There is 
substantial overall escalation in paper, printing a nd publishing, despite de-escalation at the semi-
processed stage.  Tariff de-escalation is substan tial in non-metallic mineral products, which are all 
imported due to no domestic production capacity. 
                                                      
 38 Specific rates apply to a small number of tariff items, mainly petroleum, gas, and tobacco products.  
Alternate rates of F$1.50 and F$1.48 were removed in the 2009 Budget on pasta and "sweet" biscuits, respectively, leaving both dutiable in 2009 at 32%.  The specific component of the alternate duties were also 
lowered on used/reconditioned concrete mixing lorries (HS 8705.40.90) from F$16,948 to F$6,057 per unit, and 
on used/reconditioned lorries fitted with ladders  (HS 8705.90.20) from F$57,921 to F$8,635. 
 
39 Prasad (2006b). Fiji WT/TPR/S/213/Rev.1 
 Page 55 
 
 
02468101214161820222426
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishing Chemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOtherChart III.3
MFN tariff escalation by 2-digit ISIC industry, 2003 and 2009
Not applicable.
Calculations exclude specific rates and include the ad valorem  part of alternate rates.  Averages for 2003 are 
based on HS02 nomenclature, and for 2009 on HS07.
WTO Secretariat calculations, based on data provided by the authorities of Fiji; and Ministry of Finance and 
National Planning (2008), Economic and Fiscal Update:  Supplement to the 2009 Budget Address,  November.02468101214161820222426
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishing Chemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOtherAverage applied rate in manufacturing
(8.2% )
n.a.
Note:
Source :Per cent
First sta ge of processin g Fully processed Semi-processedPer cent
Average applied rate in manufacturing
(11.6%)2003n.a.n.a.
n.a.n.a.2009
 WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 56 
 
 
(c) MFN tariff bindings 
39. Fiji has bound 49.5% of tariff lines, 49.3% fully (Table III.1).  Bindings are most pronounced 
in agriculture (HS sections 01, 02, 03, and 04)  where on average 86% of tariff lines are bound 
(Chart III.4), mainly at ad valorem  rates of 40%, except on rice and milk (predominantly bound 
initially at 60% and reduced to 46% by 2005).  Most specific tariff rates on alcohol and tobacco 
products are bound at specific rates;  a few such alcoholic beverages are bound at 40% or 70%.  A number of alternate duties with minimum ad valorem  rates of 27% in 2008 (32% for 2009) on several 
food preparations, including pasta and biscuits (removed for 2009), as well as raw potatoes, are bound at 40%.  Some 35.6% of non-agricultural tariff lines,  mostly pharmaceuticals, fertilizers, cosmetics, 
certain textiles, and iron and steel products (HS s ections 11, 15, and 16), are bound mainly at ceiling 
rates of 40%.  Specific tariffs on a range of petr oleum products, carbon dioxide, and certain chemical 
compounds (e.g. benzene) are unbound, while some of the alternate duties with a minimum 27% 
ad valorem  rate (e.g. certain binder or baler twine and selected steel products) are bound at 40%.  
Binding coverage is 100% in two HS  sections, one in agriculture (02)  and one in manufacturing (16). 
0102030405060708090100
0102 0304 05 0607 0809 10 11 12 13 14 1516 17 1819 2021
TotalChart III.4
Share and average of bound tariff lines, by HS section
Per cent
Sections 5, 7, 9, 10, 12, 13, 14, 17, 18, 19, 20, and 21 are fully unbound.   Implementation of final bound rates was 
completed in 2005.  Calculations are based on the 2006 tariff schedule in HS02 nomenclature.
WTO Secretariat calculations, based on information provided by the authorities of Fiji.01 Live animals and prod.   
02 Vegetable products03 Fats and oils      04 Prepared food, etc.05 Mineral products06 Chemical and prod.07 Plastic and rubber
08 Hides and skins09 Wood and articles10 Pulp, paper, etc.11 Textiles and articles12 Footwear, headgear13 Articles of stone
14 Precious stones, etc.15 Base metals and prod.16 Machinery17 Transport equipment18 Precision instruments19 Arms and ammunition
20 Miscellaneous manuf.21 Works of art, etc.
Note:       
Source :  Share of fully bound
Share of partially bound
Final bound averageAverage final bound 
rate  (40.2%)
 Fiji WT/TPR/S/213/Rev.1 
 Page 57 
 
 
40. Substantial differences between bound and applied rates, of on average 29.8 percentage points 
(40.2% less 10.4%) in 2008 (28.9 percentage points in  2009) provides Fiji scope to raise tariffs within 
WTO commitments, thereby undermining tariff predic tability.  Also, binding several items with non-
ad valorem  tariff rates at ad valorem  levels reduces transparency and possibly the effectiveness of 
bindings, since ad valorem  equivalents of applied duties must be  estimated to determine whether they 
are within bound levels.  Of the 80 specific duties in  2008, 52 were bound, 30 at specific rates;  on all 
of these, mainly covering alcohol and tobacco pr oducts, applied rates substantially exceeded bound 
levels.40  For the remaining 28 items this cannot be  accurately assessed since they were bound at 
either 40% or 70%.  This also applies to the so me 50 alternate duties (out of the approximately 
180 alternate duties in 2008) bound at 40%.  While the authorities could not provide ad valorem  
equivalents of specific duties, at least some would probably exceed bound leve ls, e.g. on wine, beer, 
and spirituous beverages.41   
(d) Other taxes on imports 
Import excise tax 
41. In 2006, "import excise taxes" were applied selectively;  they involve rates of 10% on 
alcoholic beverages and tobacco products (excluding cigarettes), F $128.86 per kg on cigarettes, 10% 
on motor vehicles, and 5% on certain other products , including white goods and luxury items.  While 
called excise taxes they do not apply to domestically produced items and thus are akin to tariffs.  The 
rationale for their introduction was to protect government revenue, dampen  domestic demand, and 
stimulate domestic industries in the medium term.42  Adding the "import excise" duty, a de facto  tariff 
would seemingly increase the number of applied tari ffs exceeding bound levels.  This is because the 
15% "import excise tax" applies to a number of tariff items with a tariff rate of 27% in 2008 (32% in 2009) and a bound levels of 40%, especially alcoholic  beverages (certain wines and other fermented 
beverages) and certain used or re-conditioned motor ve hicles (certain cranes, fork-lift trucks, and most 
earthmoving equipment).   
42. The coverage of "import excise taxes" increased from initially 8.8% of tariff lines to 9.0% in 
2007 and to 9.8% currently.  Most rates were also  raised in 2007, from 5% to 10%, and 10% to 15% 
(the specific rate on cigarettes was replaced by its current rate of 15% in 2007);  a few rates remained 
at 5%.  In 2008, the main additional tariff items subj ect to the "import excise tax", mainly at rates of 
15% but also of 10% and 5%, were certain motor ve hicles (trucks, cabs, and chassis and trailers, as 
well as earth-moving equipment) and certain mach inery and equipment (distinguishing between new 
and used items dutiable at 5% and 15%, respectively).
43  Import excise taxes also apply to imported 
new and used white goods and electrical products (e.g . televisions and vacuum cleaners).  Including 
"import excise taxes" raises the overall unweighted tariff average in 2008 from 10.4% to 11.4% and in 
2007 from 9.1% to 10.2%.  Most of the increase relat es to industrial products;  in 2008, for example, 
their inclusion raises the industrial tariff average (HS definition) from 10.1% to 11.4% (agriculture 
from 12.0% to 12.2%).  They also raise tariff disparities from a standard deviation of 8.8 to 10.9 percentage points in 2008 (9.6 to 11.6 in 20 07).  International and domestic peaks are increased 
if both are included, from 18.5% to 20.3% of tariff lines and from zero to 6.1% respectively, in 2008. 
                                                     
 
 40 The authorities indicated, at the last Review of Fiji, that these cases would be corrected (WTO, 1997, 
p. 22). 
 41 For illustrative purposes, the specific tariff on light beer of F$2.10 per litre would exceed the 70% 
bound rate if the import value of a litre of beer was below F$3.00;  of F$2.84 per litre on heavier beer would 
exceed the bound level of 70%  if the import price per litre was below F$ 4.06 per litre;  and of F$3.93 per litre 
on still wine would exceed the bound level of 40% if th e import price per litre was below F$9.83 per litre.   
 42 Minister of Finance (2005), pp. 53-54. 
 43 The 2009 Budget removed the "import excise tax’ of 15% on a wide range of specialized moving 
machinery, such as prime movers, fork lifts, cranes, earth-moving equipment, concrete trucks, and various types of trailers and semi-trailers (Ministry of Finance and National Planning, 2008b, p. 118). WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 58 
 
 
Discriminatory excise taxes 
43. Specific excise taxes apply to domestically made "sin" products, i.e. alcoholic beverages and 
tobacco products.44  Because excise taxes are not levied separately on equivalent imports, the excise is 
implicitly included in the specific tariff (the ex cise component of the tariff).  The protective 
component of the tariff on such products is thus e ffectively reduced by the excise component i.e. the 
amount of excise paid on domestic goods.  Neverthe less, specific tariffs still afford substantial 
protection in ad valorem  terms (Table III.2).  For example, the protective component of tariffs (i.e. the 
difference between the specific tariff rate and the excise rate) on low and high alcohol beer were:  
F$0.75 and F$1.27 per litre, respectively;  F$1. 83 per litre on still wine;  and F$14.91 or F$26.10 
per litre of alcohol on spirituous beverages, dependi ng on alcoholic content.  While not available, 
ad valorem  equivalents of at least 20% are likely, rising inversely with price. 
44. Tariff/excise arrangements are more complex for tobacco products because the excise tax 
discriminates against imports as it is lower for dom estic products.  For example, the tariff rate on 
manufactured tobacco (including cigars, cheroots, and cigarillos) in 2008 was F$88.01 per kg while 
the excise rates on domestic products varied accord ing to whether made from foreign (F$78.77 per 
kg) or Fijian (F$46.27 per kg) tobacco leaf, thereby encouraging use of locally grown tobacco.45  
Cigarettes made domestically from local tobacco were  subject to excise in 2008 at F$0.9113 per 
10 cigarettes compared with F$1.3671 for cigare ttes made locally from imported tobacco.  Since 
tariffs on imported cigarettes are much higher than domestic excise rates (a minimum of F$144.93 per 
1,000 cigarettes), the protective effect of the ta riff on cigarettes is a minimum of F$53.80 per 
1,000 sticks if made from Fijian tobacco and F$8.22 pe r 1,000 sticks for those made from imported 
tobacco.46  Since unmanufactured tobacco (leaf) grown dom estically is not subject to excise, the full 
tariff on imported tobacco leaf of F$136.71 per kg protects tobacco-growing.   
45. Domestic excise rates have been indexed to the CPI since 2006 (3% rises in recent years).  
Tariff rates on excisable products are also indexed.   Thus, provided import prices are not falling this 
implies an annual automatic increase in the ad valorem  equivalent of the protective tariff margin.  For 
unmanufactured tobacco (leaf) the tariff rate is inde xed even though domestic leaf is not subject to 
excise. 
Value-added tax (VAT) 
46. Imports are subject to the value-added tax, the ma in indirect tax, which is levied on domestic 
goods and some services;  the rate was raised fro m 10% to 12.5% in 2006 (section (4)(i)).  However, 
some imported and domestically produced agricultura l products, including mainly tea, wheat, rice, 
certain cereal sharps and flour, and certain animal and vegetable oils  and fats, are exempt from VAT.  
The VAT tax base for imports is the tariff-inclusive c.i.f. price plus any other taxes or charges. 
 
                                                      
 44 The 2007 mini-Budget removed the excise tax of F$0.05 per litre on carbonated soft drinks 
(introduced in the 2006 Budget) to provide financial relief for manufacturers.  At the same time the 
concessionary tariff rate extended to them under Code 236 (of Part III of the Customs Tariff Act) on imported 
inputs was raised from zero to 3%.  Petroleum products in Fiji are not subject to excise but to tariffs.  The 2009 
Budget reinstated the higher specific tariff rates of F$0.34 to F$0.44 per litre on gasoline;  F$0.09 to F$0.18 per 
litre on diesel;  and F$0.17 to F$0.27 per litre on motor spirit used for blending pre-mixed outboard fuel 
(Minister of Finance and National Planning, 2008a, p. 23).  Most other petroleum products are dutiable at a tariff of 5%, as are coal and non-liquefied gases (liquefied gases have a tariff of F$0.04 per kg). 
 
45 Blended manufactured tobacco made in Fiji is levied excise at these rates in proportion to the amount 
of foreign and Fijian tobacco leaf used.  
46 The tariff on cigarettes is F$144.93 per kg or 1,000 cigarettes, whichever is the greatest. Fiji WT/TPR/S/213/Rev.1 
 Page 59 
 
 
Table III.2 
Excise rates, 2007 and 2008 
Rate Product 
2007 2008 
Ale, beer, stout and other fermented liquors of an alcoholic strength of 
3% or less F$1.31 per litre F$1.35 per litre 
Ale, beer, stout and other fermented liquors of an alcoholic strength of 
3% or more F$1.52 per litre F$1.57 per litre 
Potable spirit not exceeding 57.12 GL  F$28.79 per litre F$29.65 per litre 
Potable spirit exceeding 57.12 GL F$50.42 per litre of alcohol  F$51.93 per litre of alcohol 
Wine 
-  still 
-  sparkling  
F$2.04 per litre 
F$2.32 per litre  
F$2.10 per litre 
F$2.39 per litre 
Other fermented beverages 
-  still 
-  sparkling  
F$2.04 per litre 
F$2.32 per litre  
F$2.39 per litre 
F$2.39 per litre 
Ready to drink mixtures of any al coholic beverages of any alcoholic 
strength by volume of 11.49% or less F$0.94 per litre F$0.97 per litre 
Cigarettes from local tobacco by 3.20 cents per 10 sticks F$0.8848 per 10 stic ks F$0.9113 per 10 sticks 
Cigarettes from imported tobacco by 4.81 cents per 10 sticks F$1.3273 pe r 10 sticks F$1.3671 per 10 sticks 
Manufactured tobacco containing tobacco gr own outside Fiji F$76. 48 per kg F$78.77 per kg 
Manufactured tobacco containing tobacco gr own in Fiji F$44.92 per kg F$46.27 per kg 
Manufactured tobacco containing fo reign tobacco and tobacco grown 
in Fiji 
-  foreign portion 
-  local portion  
 
F$76.48 per kg 
F$44.92 per kg   
 
F$78.77 per kg 
F$46.27 per kg 
Carbonated drinks F$0.03 per litre Nil 
Source:  Ministry of Finance, National Planning and Sugar Industry (2007), 2008 Economic and Fiscal Update, Supplement 
to 2008 Budget Address , November. 
(e) Concessions  
47. Fiji has substantial tariff concessions in the form of partial and full exemptions and 
remissions.  The Minister of Finance may remit ta riff fully or partially, if recommended by Customs 
and imported by a statutory body incorporated for pub lic purposes (e.g. charities), or if considers that 
the imports will benefit the country (duty remiss ion in cases causing "serious hardship" is no longer 
allowed (Section 10 of the Customs Tariff Act)).47  The authorities indicated that the criterion of 
"country benefit" was not defined.  The Minister can also reduce tariff rates to correct for anomalies.  
Manufacturers may also apply for concessions under Code 236 of the Customs Tariff to import raw 
materials as inputs for approved go ods, subject to certain conditions.48 Applicants must request such 
concessions from Customs, which will first inspect the manufacturing process.  They are granted for a 
fixed period, and by specifying the type of goods that can be made from the materials operate as end-
use concessions but, unlike rebate certificates, are not specific to particular manufacturers.  Concessions are not available for services importing inputs.   Imported machinery, equipment, and 
materials under the former (but still operational)  Tax Free Zone/Tax Free Factory arrangements are 
also exempt.  Tariff concessions also cover the "i mport excise tax".  Total customs revenue forgone 
from all concessions (including under the Short Life Investment Package for tourism facilities, the 
largest component) fell from F$83.0 milli on in 2006 to F$66.2 million in 2007. 
                                                     
 
 47 The applicant must apply in writing to the Comptroller providing details of the concession requested 
and the savings in tariff revenue as well as the benefits it would provide to the country 
 48 This replaced rebate certificates available from th e Minister to remit or re duce tariffs on machinery 
and equipment (including parts and materials) to assist development of manufacturing industries (Customs Tariff (Industrial Rebates) Regulations, 1986).   WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 60 
 
 
48. Changes made to duty concessions (Section 10) in the 2008 Budget included:  reducing tariffs 
and import excise taxes on new buses imported by re gistered bus owners from 27% to 5% and from 
15% to 5%, respectively, until 2011 (the tyre c oncession was removed);  removing the F$0.02 per kg 
concession on butane gas used by manufacturers;  replacing of the duty-free concession with a 5% 
rate on fabrics used to manufacture diapers;  incr easing the duty concessionary rate on copper cables 
used by industry from 3% to 5%;  and changing th e concessionary rate from zero to 5% on bulk full 
cream powdered milk, liquid milk and butter importe d by Rewa Dairy Co-operative Ltd (reversed in 
the 2009 Budget with the concessionary rate  to be phased out in over two years).49  The 2008 Budget 
also introduced further concessions on raw materials by not applying the tariff increase (from 3%) to 
5% (under Code 236).50  The coverage of the 10% concessionary  tariffs on inputs for hotels (instead 
of 27% and 32% following the 2009 Budget (Code 235)) was also narrowed by limiting them on 
utensils to only those not manufactured in Fiji, ai med at encouraging domestic  production of utensils.  
The 2009 Budget introduced concessionary tariff rates of 5% on certain galvanized purlins and PVC 
pipes, but raised the concessionary rate from 3% to  5% on eligible knitted fabr ic and breakfast foods.  
Tariffs (and "import excise" duties) were set at zero imported computer-related equipment for the 
establishment of approved ICT/BOP businesses.  C oncessionary tariffs of 5% apply to capital 
equipment or machinery used to convert or process raw materials.51  Tariff concessions also operate as 
investment incentives (Chapter III(4)(ii)).  Concessionary  tariffs on fuel are also used to assist certain 
activities or sectors e.g. the concessionary rate on fuel used by fishermen was further lowered from 
F$0.08 to F$0.02 per litre in the 2009 Budget. 
49. The average implied tariff rate in 2007 (total tari ff revenue as a share of total c.i.f. value of 
imports) was about 7%;  a major explanation for this  being below the simple average MFN tariff, of 
9.1%, is concessionary, exempt, and preferential impor ts.  Fiji’s system of tariff concessions is non-
transparent and seemingly subject to significant administrative discretion, thereby undermining the predictability of the tariff regime and increasing the li kelihood that it is distorting resource allocation.  
The major beneficiaries of the concessions are not disclosed publicly.  These economic dangers of 
tariff concessions were noted in the Govern ment’s SEEDS 2008-2010 (Chapter II(4)).    
(f) Tax-free zones 
50. Tax-free factories (TFFs) and tax-free zones (TFZs) for manufacturing companies 
establishing plants for export were terminated at th e end of 2000, but firms that already had approval 
at the time continue to benefit from duty-free access for imported machinery, equipment, and 
materials until their licences expire in 2013.  These result in annual revenue losses of some 
F$150 million.    
(g) Regional and bilateral tariff preferences 
51. Since its last Review, Fiji has expanded its pref erential trading commitments, both at regional 
and bilateral levels (Chapter II);  product coverage and preferential  tariffs or margins vary between 
agreements. 
                                                     
 
 49 Ministry of Finance and National Planning (2008b), p. 120. 
 50 A concessionary tariff of 3% is applied to goods imported in primary form for manufacturing 
requiring further processing, capital items (machiner y to convert or process raw materials);  most 
construction/building materials (unless locally available when tariff rates of 27% apply);  and packaging 
materials unavailable locally.  Imports of goods for mixing, blending or assembly operations are dutiable at 
intermediary tariff rates i.e. half the normal duty rates (FTIB, 2008a).  
51 FIRCA (2008). Fiji WT/TPR/S/213/Rev.1 
 Page 61 
 
 
(iii) Non-tariff border measures 
52. Authority to regulate or prohibit imports is provided in the Customs Act (Section 64) and 
Customs (Prohibited Imports a nd Exports) Regulations, 1986.  
(a) Import prohibitions 
53. Prohibited imports, mainly for health, safety, security, religious or moral reasons, include 
narcotics;  dangerous weapons;  blasphemous, indecent or obscene material;  gambling machines; 
certain manufactured fireworks;  and matches ma de of yellow or white phosphorous.  None of these 
can be produced in Fiji (Schedule 1 of the Cust oms Regulations) (Table III.3).  Some goods are 
prohibited for quarantine reasons, whereby Customs ac ts as agent at the border for the Department of 
Quarantine.  These include all cereal grains, pulses and legumes and their pr oducts including stock 
feed imports, except from Australia, Canada, Jap an, Mexico, New Zealand, Chinese Taipei, the 
United States, and all Pacific territories other th an the French Pacific Territories and Vanuatu.52  
Imports from Tasmania of packing of grass, straw,  chaff, and sacking, as well as of meat and dairy 
products are also prohibited for quarantine reasons.53  Some imported goods are prohibited, seemingly 
for other reasons, e.g. peanuts and other oilseed s (other than their products) intended for human 
consumption subject to any manufacturing process ot her than or in addition to rolling, flaking, 
pearling, and milling.  Imports of used motor vehi cles (cars, trucks, and buses) and machinery over 
four-years old, and plastic bags, which are made  domestically, were banned in the 2008 Budget;  
however, the import ban on plastic bags for environm ental reasons is yet to be implemented.  The 
2009 Budget increased the importable age of motor vehi cles to eight years, and removed trailers from 
the list of prohibited imports.54 
54. As a member of the Vienna Convention for the Protection of the Ozone Layer and the 
Montreal Protocol on Substances That Deplete th e Ozone Layer, Fiji passed legislation in 1998 to 
phase-out controlled substances, including imports (and exports) (Ozone Depleting Substances Act).55  
Trading, storage, disposal or manufacture in bulk of Part I substances (CFCs, halons, carbon 
tetrachloride and methyl chloroform) were banned from 2000;  the ban will be  extended to Part II 
substances from 2031.  Import (and export) of mo tor vehicles with air-conditioners as well as 
individual automotive conditioners and refrigerators  containing Part I substances were prohibited 
from July 1998.56  A permit is required from the Director of the Environment to import, sell, store or 
process controlled substances.  Imports of a wide ra nge of endangered fish, molluscs, amphibians, and 
coral are banned or require a permit from the Fiji Management Authority under the CITES, which Fiji 
acceded to in September 1997 (Fiji Endangered and Protected Species Act, 2002).57   
                                                      
 52 Excludes imported polished rice and pulses for human consumption and products composed of or 
made from cereals, pulses, and legumes for human consumption, subjected to any manufacturing process other 
than or in addition to rolling, flaking, pearling and milling.  Flour and sharps are importable from France if 
made in mills and by processes approved by  the Secretary of Primary Industries.    
 53 VisaHQ online information, Fiji Customs.  Viewed at:  http://fiji.visahq.com/customs;  and Austrade 
(undated). 
 54 Ministry of Finance and National Planning (2008b), p. 122. 
 55 Fiji ratified the Vienna Convention and Montreal Protocol in 1989, the London Amendment in 1994, 
the Copenhagen Amendment in May 2000, and the Montreal and Beijing Amendments in February 2007. 
 56 Trade and sale of halon fire extinguishers were ba nned from July 1998, and their refilling with halon 
from 1999 (in non-essential applications from July 1998).  
57 Fiji has not accepted the Convention's amendments to Articles XI and XXI. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 62 
 
 
Table III.3 
Prohibited imports, 2008 
Description 
All goods having thereon or on the cover any words, marks or designs of a seditious na ture, or of a nature in the opinion of th e minister 
to disturb Fiji’s peace and order 
Counterfeit coin, imitation or counterfeit bank notes 
Dangerous drugs, including raw opium, any seed of the opium poppy or any portion of the plant;  Indian Hemp (Cannabis Sativa or  
Cannibals Indica) and its resin, seed or any portion of the plan t;  cocoa leaf and any such seed  or portion of the plant;  prep ared opium, 
opium pipes or other utensils for its smoking or used to prepar e it for consumption;  lysergide (N.N. Diethyl-lysergamide);  me scaline 
(3,4,5-trimethylosy-phenethylamine);  peyo tl (any part of the plant of the species laphophora williamsi  or laphophora lewinii ) 
Goods that in the Minister’s opinion are da ngerous and a menace to the community e.g.  daggers, electronic shock sticks, flick k nives, 
gravity knives, knuckle dusters, sword sticks, attaché case capable of discharging elect ric shocks of 30,000 volts, and taser p ublic 
defender 
Goods that, whether of their own nature or having regard to any literary or other work or matter that is embodied, recorded or 
reproduced in, or can be reproduced from the goods, are blasphemous, indecent or obscen e, unduly emphasize matters of sex, horr or, 
violence or crime, or are likely to encourage depravity.  The book Satanic Verse  is a prohibited import 
Machines for playing games of chance, bei ng games that require no action by any player  other than the actuation or manipulation  of the 
machine 
Manufactured fireworks containing potassium chlorate or other chlorates mixed with sulphur or any sulphides, phosphorous or 
aluminium powder with or without th e addition of other substances  
Matches made from yellow or white phosphorous 
Thalidomide and its preparations 
Chemical warfare gas and devices and apparatus designed to use such gas 
All tubers, bulbs, corns, rhizomes, peanuts,  and other oil seeds not including any product composed of or made therefrom, inten ded for 
human consumption, that have been subject  to manufacturing processes other than or in addition to rolling, flaking, pearling or  milling 
All cereals, pulses (dried leguminous vegetables, shelled, whethe r or not skinned or split) and legumes and products composed o r made 
from them, including stock feed (excluding polished rice and pulses intended for human consumption and products made from or 
composed of cereals, pulses, and legumes intended for human consum ption, that have been subject to any manufacturing process ot her 
than or in addition to rolling, flaking, pearling or milling) from all countries excep t Australia, Canada, Japan, Mexico, New Z ealand, 
Taiwan, the United States and all Pacific te rritories other than French Pacific Territories and Vanuatu (flour and sharps made in mills 
and by a process approved by the permanent Secretaria t for Primary Industries may be imported from France) 
Source:  Schedule 1 of Customs (Prohibited Imports and Exports) Regulations, 1986.  
(b) Import licensing 
55. Goods subject to import licensing include those th at require specified conditions, restrictions 
or requirements to be met e.g. certain fireworks, margarine and any other edible fat;  oil made as a 
substitute for butter or ghee;  spirits (brandy, whis ky, and rum);  condensed, dried, re-constituted milk 
or milk substitute or products containing skim milk;  mechanical cane harvesters;  and salt 
(Schedule 2 of the Customs Regulations) (Table III.4).  Some goods require an import licence from the Minister of Finance (e.g. certain gold, galvan ized or zincalume pre-coated metal coil sheet and 
cyclonic roof and wall fasteners, and cigarette and other lighters) or from the Secretary of Trade and 
Commerce (e.g. lubricants;  transformer and circuit- breaker oils;  liquids for hydraulic brakes;  and 
certain other oils).  Imports of certain goods ar e banned under other legislation unless licensed by the 
authorized department or agency e.g. live animal s or animal products (including fresh/chilled/frozen 
and processed meats/poultry, canned meat/poultry, a ll dairy products, semen, feathers, hides, and 
animal by-products)
58, plants, arms and ammunition, rags, second-hand clothing and bedding, 
dangerous drugs, pharmaceuticals, a nd explosives.  Import permits for live animals or their products 
are usually issued within two weeks unless not pr eviously imported, when a Pest-Risk-Analysis, 
which normally takes at least one year, is required.59  Certain drugs (morphine, pethidine, methadone, 
phenadoxone, and tincture of opium) are only importable by the government pharmacist.60  Imports of 
                                                      
 58 Austrade (undated). 
 59 Austrade (undated). 
 60 Austrade (undated). Fiji WT/TPR/S/213/Rev.1 
 Page 63 
 
 
fruits and vegetables require licences from the Ch ief Quarantine Officer, and must comply with 
special health regulations requiring methyl bromid e fumigation.  Obtaining import permits for seeds 
requires sample testing by the Ministry of Agricultur e, Fisheries and Forestry.  Pure food ordinances 
control the use of colours and preservatives as well as  the standard, composition, and marking of food 
products.  Following the removal in 2007 of import licences re-imposed on brown rice, all rice is free 
of import licensing.61  
56. Fiji has not notified its licensing legislation to the WTO Committee on Import Licensing as 
required under Articles 1.4(a) and 8.2(b) of the Agreement.  
Table III.4 
Licensed imports, 2008 
Description Conditions, restrictions or requirements 
Fireworks (other than those prohibited) Import licence from  the Principal Inspector of Mines.  Goods must be 
imported through the Port of Suva a nd be physically examined, and are 
subject to the issue of a removal li cence by the principal Inspector of 
Mines 
Margarine or any other mixture of  edible fats, oils and water, 
prepared in the form of a so lid or semi-solid emulsion, 
including every substance made in the imitation of butter or 
ghee (clarified butter) and every other preparation resembling butter or ghee, the fat content of which is not 
derived from milk Must comply with the Pure Food Act or all regulations made thereunder 
Sweetened/unsweetened condensed milk, dried milk, 
reconstituted milk, separated or  dried separated milk, and 
milk substitute or any other product containing skim milk 
and any fat other than butter fat Must comply with the Pure Food Act or all regulations made thereunder 
Methylated spirits Import licence issu ed under the Methylated Spirits act 
Radio communication equipment constructed or adapted for 
emission Import licence issued by the telecommunications authority 
Radioactive substances other than luminous dials of 
watches, clocks or other instruments Written permission from the permanent Secretariat of Health, meeting 
specified conditions 
Spirits of brandy, whisky and rum Importer must prove maturity in wood for at least three years for brandy 
and whisky, and two years for rum.  Production of certificate issued in the exporting country will be sufficient 
Whale’s teeth (Tabua) Imported by Ministry of Fijian Affairs or in accordance with an import 
licence issued by the Ministry 
Apparatus or device designed to detect advanced warning of 
the presence of any lawfully established radar check point Import licence issued by the telecommunications authority 
Mechanical cane harvesters classified in HS items 
8433.51.00, 8433.52.00, 8433.53.00 and 8433.59.00 Import licence from the permanent Secretary for Primary Industries 
Branches and leaves from all trees originating in Queensland 
(Australia) and Papua Import certificate from the New Guin ea or Solomon Islands appropriate 
agricultural authority that they are free of pests and disease and do not 
belong to the family Meliaceae  or the group Coniferae  
Apparatus or device to receive radio or TV transmission,  
other than domestic broadcasts Import licence from the telecommunications authority 
Salt classified in HS 2501.00.00 Import permit from the Permanent Secretariat for Health 
Table III.4 (cont'd) 
                                                      
 61 FAO (2003). WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 64 
 
 
Description Conditions, restrictions or requirements 
Gold items classified in HS 7108.11.00, 12.00, 13.00, 
7108.20.00 and 7109.00.00, sweepings, residues, lemels, and 
other waste and scraps of gold classified in HS items 
7112.20.00 and gold coin classified in HS 7118.90.11. 90.21, 90.90 Import licence from the Minister of Finance 
Galvanized or zincalume pr e-coated metal coil sheet 
classified in HS 7210.20.10, 90, 30.10, 90, 41.20, 90, 49.10, 
90, 50.10, 90, 61.10, 9069.10, 90 Import licence from the Minister of Finance 
Cyclonic crew fasteners, washer s and seals for roof and wall 
cladding, classified in HS  7317.00.90, 73.18.15.00, 19.00, 
22.00, 29.00 Import licence from the Minister of Finance 
Photocopying apparatus with an optical system or of the 
contact type, and thermo-copying to produce full colour 
copies classified in HS 9009.21.90, 22.90, 30.00 Import licence from the Minister of Finance 
Cigarette lighters and other lighters, either mechanical or 
electrical, under HS 96.13 Import licence from the Minister of Finance 
Animal, animal products, manure,  packing material, fittings 
or fodder Written permission of Assistant Dire ctor of Agriculture (Animal Health 
and production) or in accordance with regulations under the Animals Importation Act 
Arms and ammunition Import licence issued by Commissioner of Police subject to Arms and 
Ammunition Act 
Copyright in any published literary, dramatic or musical work Copyright (Customs Regulations) (Page 6839 Vol. X) 
Dangerous drugs covered by part IV In  accordance with the Dangerous Drugs Act 
Excisable goods In accordance w ith a licence issued by th e Comptroller of Customs 
under Excise Act 1986 
Currency notes and certificate of title In accordance with exchange control regulations issued by the Reserve 
bank under the Exchange Control Act 
Explosives Import licence under the Explosive Act 
Trade mark material  Merchandise Marks Act 
Plants and plant material, bacteria, virus, soil, sand, clay, earth, plant pests or other invertebrate animals In accordance with pl ant Quarantine Act 
Rags, second-hand clothing a nd bedding Must be properly disinfected under official supervision at importer's 
expense or accompanied by a Health Certificate from exporting country 
that the goods have been properly disinfected prior to export 
(Quarantine Act) 
Pharmaceuticals and poisons In accordance with the Pharmacy and Poisons Act. 
Source:  Schedule 2 of Customs (Prohibited Imports and Exports) Regulations, 1986.  
(c) Import quotas 
57. The authorities indicate Fiji has no import quotas. 
(iv) Local-content scheme 
58. A local-content scheme requires foreign investor s manufacturing cigarettes to use at least 
50% locally grown and processed tobacco (Foreign I nvestment Regulations 2008, Schedule 1).  No 
information on the plan could be obtained from the authorities.   
(v) Contingency measures 
59. According to the authorities, Fiji's anti-dumpi ng and countervailing legislation introduced in 
1998, reflects WTO rules (Dumping and Countervaili ng Duties Act).  The legislation states that 
countervailing duties that would be  inconsistent with WTO rules cannot be imposed;  no such 
provisions exist for anti-dumping measures.  Res ponsibility for administering this legislation was Fiji WT/TPR/S/213/Rev.1 
 Page 65 
 
 
transferred to the Ministry of Industry, Tourism,  Trade and Communications in January 2007.  The 
Department of Fair Trading and Consumer Affairs conducts investigations and makes 
recommendations to the Minister, who decides wh ether to impose anti-dumping or countervailing 
duties, while the Minister of Finance sets the le vel of such duties.  Provisional measures may be 
taken.  Duties are to be set belo w the dumping or subsidy margin if considered sufficient to prevent 
the material injury or to remove the threat to th e domestic industry.  Fiji has never taken anti-dumping 
or countervailing measures.    
60. Fiji has no general (GATT Article  XIX) safeguards legislation.  However, under customs 
legislation, domestic producers may request the FIRCA to extend relief against imports causing 
material injury.  FIRCA investigations and r ecommended remedies must be completed within six 
months.   Fiji cannot take special agricultural safegua rd measures (SSGs) under the WTO Agreement 
on Agriculture since it bound these items at ceiling levels.62  Fiji has no safeguards legislation for 
textiles and clothing. 
(vi) Government procurement 
61. Fiji is not a member or observer of the WTO Government Procurement Agreement, and has 
no intention of joining, according to the authorities.  It does not participate in the WTO Working 
Group on Transparency in Government Procuremen t.  The Ministry of Finance formulates 
government procurement procedures, and agencies mu st meet the regulations  in the Finance Act, 
2005.  Procurement methods are decentralized;  th e purchasing department or agency must call for 
open tenders and evaluate them through their eval uation Committee;  these co mmittees are chaired by 
an officer from the finance ministry and include ot her public sector representatives, such as from the 
Government Supply Department (G SD).  Committee recommendations are considered for approval by 
the Major Tender Board, which is chaired by the De puty Secretary of the finance ministry, and must 
approve all procurement contr acts of goods and services above F$20,000.  Tenders are usual 
submitted in a single envelope (except for infrastru ctural projects when a two-envelope process is 
used), and are to be awarded based on value for mo ney.   Departmental secretaries and agency heads 
can approve contracts of up to F$20,000 (this limit  was reinstated in September 2008 after being 
reduced to F$5,000 following the coup) based on obta ining three quotations fro m local suppliers.  All 
central agencies and departments are covered by these arrangements, except for the Public Works 
Department, which handles procuremen t through its own Tender Board.  The authorities indicated that 
international tendering procedures set by donors are usually followed. 
62. The regulations are time-consuming, and corr uption, including bid-rigging/collusion, has 
been the subject of Auditor-Gener al reports according to the authorities.  Decisions of the Major 
Tender Board can be appealed but only to the judi ciary (within six months).  The Government is 
trying to improve government procurement effi ciency, including reducing corruption.  New 
legislation, involving the establishment of Agency  Tender Boards, a Central Tender Board to replace 
the Major Tender Board, and a Fiji Procurement Office to replace the GSD, was suspended in 
December 2006 following the coup.63 
63. Public Private Partnerships (PPP) for major in frastructural services, such as the new Suva 
Nausori Bypass Road, upgrading of the Nausori Ai r Terminal and the Rokobili Port Terminal, and 
rebuilding of the Suva Slipway, are administered  by the PPP Unit in the Ministry of Public 
Enterprises (Public Private Partnerships Act, 2006).  The Minister must make "authorization 
regulations" to develop PPP proposals along with "implementation regulations" for tenders to be 
                                                      
 62 FAO (2003). 
 63 Agency Tender Boards had been established for about six months prior to the legislation being 
suspended. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 66 
 
 
issued.  The Ministry’s Chief Ex ecutive Officer appoints a tender evaluation team, which participates 
in the pre-qualification or short-lis ting of tenderers, and "diligently a nd impartially" appraises tenders;  
up to half of the team may be pu blic officers.  Ranking of offers must be according to suitability to 
implement the PPP, compliance with the regulations , and how they achieve the purposes of PPP;  the 
lowest price tender must be ranked highest.  Cabinet decides the contractor based on 
recommendations from the Minister and cannot am end the recommended tender or accept another 
tender.  The PPP controlling company must be registered in Fiji, have direct or indirect control of the 
entities described in the implementation regulations, and be under Fijian control i.e. either Fiji holding 
interests can exercise at least 51% of its shareholder voting rights, or have the right to appoint more 
than 50% of its directors, or have a "Fiji share" held by the Minister of Finance.64    
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation procedures 
64. All commercial exporters must be registered  with FIRCA and have a tax identification 
number (TIN);  agents importers exporters (AIE ) codes began to be ph ased out in August 2006. 
65. Exporters of some goods must be registered with  the appropriate authority.  These are mainly 
specific agricultural products exported to certain  markets under bilateral quarantine arrangements, 
whereby governments insist Fiji imposes such requi rements to meet SPS concerns.  For example, 
fresh papaya exports to Australia and New Zealand,  which stopped in 1995 when ethylene di-bromide 
fumigation for controlling fruit fly ceased for hea lth reasons, recommenced from 2002 for Vitu Levu 
fruit growers registered with the Ministry of Agricu lture, subject to specified requirements related to 
high-temperature forced-air disinfestation treatment, and 100% inspection.65  
66. Export valuations may be checked by Customs, e.g. for goods subject to export taxes.66  The 
authorities reject some evidence suggesting that it can take up to 25 days to export goods;  they state that it takes one or two days, and much less than 25 days even for high-risk exporters requiring full 
inspection.
67  A Secure Exports Scheme, whereby docume nts are submitted 24 hours before the ship’s 
arrival, was introduced in 2007 to accelerate clearance;   customs officers are based in each area to 
verify exports. 
(ii) Export taxes, charges, and levies 
67. Export taxes are provided for in the Customs Ac t (Sections 92(2) and 93(3)) and the Customs 
Tariff Act (Section 3(b)) (rates are specified in Schedul e 2).  The export tax base is the f.o.b. value or, 
if not "easily ascertainable" or accepted by Cust oms, an estimated value in accordance with 
legislation. Export taxes of 3% apply to gold, s ilver, sugar, and molasses, and, following the 2009 
Budget, unprocessed timber to promote domestic value added.68  A 3% export tax on unprocessed fish 
                                                      
 64 The Fijian shareholder must ha ve the right to veto specified actions proposed by the PPP, be 
consulted on certain matters, and give written prior approval for the PPP to undertake specified decisions.   
 65 Biosecurity Australia (2002) and Mineral Resources Department (1997). 
 66 FTIB (2008b). 
 67 This covers 12 days to prepare documents, 2 da ys to complete customs clearance and technical 
controls, 7 days to complete ports and terminal handling, and 4 days for internal transportation and handling 
(World Bank, 2008a).  
68 Ministry of Finance and National Planning (2008b),  p. 122.  In 2000, Fiji suspended the tax on gold 
exported by Emperor Gold Mining Limite d under a rescue assistance package.  The mine ceased operations in 
December 2006 but was sold overseas and re-started in November 2007;  a concessionary tax package exempted 
the export tax for five years ( Mining Weekly,  "Westech Gold secures Fijian tax concessions for Vatukoula" .  Fiji WT/TPR/S/213/Rev.1 
 Page 67 
 
 
also announced in the 2009 Budget with the same objectives, was withdrawn by the Minister of 
Finance prior to implementation, under section 10 of  the Customs Act, following industry objections 
and ministerial consultations, including  with the Primer Minister.  Government policy is to ensure that 
the export tax and royalty rate on any metallic mi neral does not exceed 5% f.o.b.;  the export tax 
component is retained by the Governme nt and not transferred to landowners.69  An export tax  of 
F$0.20 per litre was to be imposed on all mineral wa ter in July 2008 to offset for expected transfer 
pricing practices (and an equivalent excise tax on domestic sales) (Customs  Tariff Act (Amendment) 
(No. 3) Promulgation 2008, and Excise Act (Ame ndment) (No. 1) Promulgation 2008) but the 
legislation was repealed before be ing implemented.  Export taxes, especially on sugar, may provide 
implicit subsidies to downstream pr ocessing by reducing input prices, although given the inefficiency 
of sugar production in Fiji,  and protection, prices are still well above world levels. 
(iii) Export prohibitions, restrictions, and licensing 
68. The Customs Act provides authority to prohi bit and regulate exports (section 64(2)).  
Prohibited exports are dangerous drugs (i.e. narcot ics) (Customs (Prohib ited Imports and Exports) 
Regulations, 1986, Schedule 6) as well as all live fish, and turtle flesh and shells not meeting certain 
size limits.  Exports of controlled ozone-depleti ng substances of CFCs, halons, carbon tetrachloride, 
and methyl chloroform were banned from 2000,  and those of HCFC will be included from 2031 
(Ozone Depleting Substances Act, 1998).70  Exports of these ozone-depleting substances require a 
permit from the Ministry of Environment.  Certai n exports are also banned or require a permit from 
the Fiji Management Authority under CITES (Fiji En dangered and Protected Species Act, 2002).  Fiji 
is making significant efforts to ensure that legi slation is adequately implemented to control 
international trade in wildlife, especially for the aq uarium trade, including hard coral, to avoid a 
repeat of the trade ban imposed on Fiji by th e CITES Secretariat in 2002, before the current 
legislation was passed.71  Exports of round logs are banned fo r environmental reasons and to promote 
downstream processing, which provides an implicit s ubsidy to processors at the expense of forest 
owners, by lowering the domestic price.  
69. Exports are controlled by licensing, and export proceeds must be repatriated to Fiji through 
the banking system within six months of shipment.  Exports of a wide range of agricultural products 
require a licence from the relevant authority, usua lly the Secretary for Primary Industry (Customs 
(Prohibited Imports and Exports) Regulations, 1986, Schedule 6) e. g. live cattle, manufactured sugar 
in consignments exceeding 5 kg, wheat bran, copra (subject also to a permit from the Coconut Board), 
oil cake and copra meal, various wood (includi ng round logs and timber) and wood products, and 
coffee (Table III.5).  Other exports subject to licen sing include dangerous drugs, explosives, live fish, 
minerals, fruits, vegetables, trees, plants, and shrubs (Fruit Export and Marketing Act, 1985). 
                                                                                                                                                                     
Viewed at:  http://www.miningweekly. co.za/article. php?a_id=114999).  The export tax on sugar and molasses 
was raised from 3% to 10% in 2002 until November 2003. 
 69 Ministry of Minerals and Land Resources (1997). 
 70 Exports of halons or halon fire extinguishers and vehicles with air conditioning units filled with 
controlled substances as well as separate automotiv e air conditioners and household air conditioners or 
refrigeration units were banned from July 1998. 
 71 Fiji Government, Press Release, Cabinet approves strict adherence to CITES regulations, 
13 March 2007.  Viewed at:  www.fiji.gov.fj/publish/page_8550.shtml. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 68 
 
 
Table III.5 
Exports requiring a licence, 2008 
Description Conditions, restrictions or requirements 
All birds (other than domestic  fowl, ducks, turkeys, geese 
and pigeons) alive or dead and the plumage or any part of 
the plumage of such birds Written permission from the Secretary for Primary Industries 
All live cattle Export licence from th e Secretary for Primary Industries 
All reptiles (except for marine  turtles), amphibians (except 
for toads), bats, and the Fiji Gos Hawk Export licence from the Secret ary for Primary Industries 
Whales' teeth (Tabua), breast plates of pearl and ivory Wr itten permission from the Secretary for Fijian Affairs 
Unprocessed turtle shell Export licence fr om the Secretary for Primary Industries 
Fiji manufactured sugar in any cons ignment exceeding 5 kg Export licence from the Comptroller of Customs 
Copra Export permit from the Coconut Board 
Wheat bran classified in HS 2302.00.00  Export li cence from the Secretary for Primary Industries 
Oil cake and meal of copra classified in HS 2304.00.01 Export licence from the Secret ary for Primary Industries 
All Fijian weapons made for war, forks of bone, ivory or 
wood made for eating human flesh, artefacts made from 
whales' tooth including breast plates, pendants, necklaces, food hangers, and human and animal figures, all stone 
adzes and pounders, and all w ooden or stone carvings of 
human or animal figures, except replicas made for the souvenir trade Export licence from the Secretary for Housing and Urban Affairs 
Wood and wood products classifi ed in 84 eight-digit tariff 
items within HS Chapter 44, covering unprocessed (round) 
logs and timber Export licence from the Conservator of Forests 
Coffee in any form classified in HS 0901.00.01, 
0901.00.09, 2101.02.01 and 2101.02.09 Certificate from the Secretary for primary Industries in accordance with 
the rules of the Interna tional Coffee Organization 
Unprocessed trochus shells classified in HS 0508. 00.20 Licence from Secretary of Trade and Commerce 
Arms and ammunition Licence from the Comm issioner of Police subject to Arms and 
Ammunition Act 
Dangerous drugs covered by Part  IV Authorization in accordance with the Dangerous Drugs Act 
Gold coin, bullion, currency notes of Fiji or any other 
country Written permission from Reserve Bank, excluding travellers taking 
abroad foreign currency notes of up to F$5,000 per person, all 
consignments of goods exceeding F$ 1,000 f.o.b. except in accordance 
with the provisions of the Exchange Control Act 
Explosives Licence under the Explosive Act 
Minerals Permit from Director of Mines endorsed with a certificate indicating that 
all royalties have been paid or secured, or that no royalties are payable, 
in accordance with the Mining Act 
Monuments or objects of archaeological and palaeontological interest Permit issued by the Board off Trustees established under the Fiji 
Museum Act, in accordance with th e Preservation of Archaeological and 
Palaeontoloigcal Interest Act 
Source:  Schedule 6 of Customs (Prohibited Imports and Exports) Regulations, 1986.  
(iv) Export assistance 
70. Export incentives, via income tax concessions , were introduced in 2001 to increase 
investment in exporting activities.72  The Short-Term Export Profit Deduction Scheme exempts from 
income tax a set share of net profits on e xports of goods and services (excluding re-exports) 
(Section 21 of the Income Tax Act).  This shar e, 100% in 2001-02, was phased down to 75% in 2003-
04 and to 50% in 2004-05 where it remains, despite  initial plans to reduce it to 25% in 2007-08.73  The 
                                                      
 72 These replaced export incentives applied to firms ap proved by the Minister from 1974 to end 2000 
under section 16(2)(d) and Fifth Schedule of the Income Tax Act.   
 73 Exports from Vanua Levu continue to be fully income tax exempt (from 2005) until 2 010 (recently 
extended from 2008).  Eligible exports must be "substa ntially transformed", and from new or existing businesses 
in the targeted industries of:  information communication and technology, agriculture, forestry, mining, 
manufacturing, textiles, clothing, footwear, timber manuf acturing, fish processing, and ship building (FTIB, 
2008a). Fiji WT/TPR/S/213/Rev.1 
 Page 69 
 
 
Scheme, which was to be fully removed by 2009, was extended until 2011 in the 2009 Budget.74  
Revenue forgone from the  Scheme rose from F$5.5 million in 2004 to  F$19.5 million in 2006, but fell 
sharply in 2007, to F$6.0 million.  It was introduced  to cushion the impact of the 2001 withdrawal of 
investment incentives on goods and services to tax free factories (TFF) or firms located in tax free 
zones (TFZ) tied to export performance (Section 11 , Fifth Schedule, Income Tax Act).  However, 
because TFF/TFZ firms exporting at least 70% of production received duty-free exemptions (including of VAT) on imported inputs, and income tax holidays for 13 years, existing beneficiaries 
continue to be assisted until 2015.  The scheme al so provided a full tax reba te on exports (excluding 
re-exports) of manufactured, processed, and assemble d goods (with at least 30% domestic value 
added or as otherwise determined by the Minister), services, manufacture or produce of deep-sea 
fishing, production of agricultural products (exclu ding sugar or copra, but not their manufactured 
derivatives), and timber where export growth over the previous year exceeded F$10,000.
75  These 
schemes have been regularly notified to the WTO Committee on Subsidies and Countervailing 
Measures.  Fiji was granted an extended exempti on, beyond 2002, to maintain these export incentives 
until end-2009 (including a two-year phasing out period).76  This was subsequently extended in 
July 2007 until end-2015 (including a two-year phasing out period).77  Exporters also benefit from 
general investment incentives, such as the 40%  investment allowance (section (4)(ii)). 
71. Fiji has not traditionally subsidized agricultura l exports, and it committed in the WTO to zero 
subsidies.  However, as agricultural products are covered by the Short-Term Export Profit Deduction 
Scheme (including its more gener ous extension to exports from Vanua  Levu) it would seem that they 
are assisted by export subsidies to the va lue of the savings in income tax.   
(a) Concessionary finance 
72. The Reserve Bank administers two concessionary  finance facilities assisting exporters, the 
Export Finance Facility (EFF) and the Export Credit Ratio (ECR);  both have been notified to the 
WTO Committee on Subsidies and Countervailing Measures (the latest in 2002).78  However, the 
WTO extension to continue export incen tives explicitly excluded these schemes.   
73. The EFF, introduced in 1983, assists non-traditi onal exports (i.e. excludes sugar, molasses, 
and gold) and, since January 2007, green logs  and rough unprocessed timber;  the minimum 40% 
local content requirement was removed in October 2007, and the Scheme was extended to include re-
exports.79  It also covers (from November 2005) construc tion of 5-star hotels and certain professional 
services (e.g. architectural, engineering, and maritime), and (from February 1999) secondary (non-
producer) exporters. The facility allows commercia l banks and the Fiji Development Bank to borrow 
from the Reserve Bank at a set minimum lending rate (MLR) for on-lending to eligible exporters at a 
fixed annual margin of 4% for use as pre-and post-sh ipment finance.  The EFF annual rate to banks 
(originally 2.5%) was raised to 15% in May 2000, but in July 2000 was de-linked from the MLR rate 
and reduced to 5%, then to 3% in  October 2000 and to 2% in Marc h 2001.  In October 2007, the EFF 
rate was aligned to the 182-day Treasury Bill rate, capped at an annual rate of 2%, therefore making 
                                                      
 74 WTO document G/SCM/N/160/FJI, 4 September 2007;  and Ministry of Finance and National 
Planning (2008a), p. 21. 
 75 Export profits on timber were deemed to equal 10% of the f.o.b. value of all "arms length" exports up 
to a maximum of 50% of the income arising from total ti mber sales.  Exporters clai ming incentives are ineligible 
for the Short-Term Export Profit Deduction Scheme.  The Minister could extend the 13-year period by up to 
5 years if considered necessary to market the export adequately and to facilitate foreign exchange earnings. 
 76 WTO document G/SCM/39, 20 November 2001.   
 77 WTO documents G/SCM/W/542, 2 July 2007;  G/SCM/W/542/Suppl.1, 9 July 2007;  WT/L/691, 
31 July 2007;  and G/SCM/N/163/FJI, 4 September 2007. 
 78 WTO document G/SCM/N/71/FJI, 5 March 2002. 
 79 Reserve Bank of Fiji (2007a). WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 70 
 
 
the maximum rate commercial banks charged expor ters 6%.  The Reserve Bank's EFF exposure is 
capped at F$20 million. 
74. The ECR, introduced in August 2001, was intende d to extend greater credit access to eligible 
exporters and not to provide concessionary credit, since commercial banks provided the credit.  They 
must hold at least 5% of their average deposit and similar liabilities in outstanding loans to eligible 
exporters of goods (excluding traditional e xports) and services (including construction and 
refurbishment of hotels and specific tourist-relate d operations, as well as architectural, engineering, 
and maritime service).  Eligible borrowers mu st have at least 40% domestic value added. 
75. The state-owned Fiji Development Bank laun ched its own export credit facility in 
December 2007.80  It provides pre-shipment export finance by way of loans of up to F$20,000 to 
eligible producer/exporters (excl uding traditional exports of sugar, molasses, gold, green logs, and 
rough unprocessed sawn timber) at concessionary interest rates, currently 6% annually.  It also allows 
eligible exporters to discount expor t bills as a means of obtaining post-shipment export finance.  The 
Government has allocated F$1.5 million to the facility. 
(b) Duty drawback and suspension schemes 
76. High tariffs on raw materials and intermedia te inputs necessitate such administratively 
complex and imperfect schemes if they are not to  penalize exports.  A duty drawback scheme has 
operated since 1986 (Section 101, Customs Act).  There are two types of drawback, depending on 
whether the imported goods are exported processed.  Normal drawback applies where the imported 
inputs are exported without undergoing any domestic  processing, while industrial drawback applies 
on imported inputs that undergo processing before ex port.  Exporters must meet several requirements 
to receive drawback, and the amount of duty refu nded is based on a formula derived and agreed 
between customs and the exporters, which may be  company-specific.  A replacement scheme is 
planned.  
77. The Duty Suspension Scheme (DSS) introduced in 2001 is used mainly by exporters, and 
enables them to import inputs free of tariffs and VAT  if they are "substantially transformed".  The 
value of duty- and VAT-free imports is the ratio of the share by value of approved imported inputs 
required to produce the exports (the Entitled Proportion,  or EP) to the value of exports.  The EP ratios 
are product-based.  The DSS is administered privately by the Exporters Council (formerly Club), established primarily for this purpose and to improve Fijian export competitiveness.
81  I t s  
administration is reportedly complex and difficult to use in practice.82  Only exporters belonging to 
the Council are eligible for duty suspension.  
(v) Export promotion 
78. The Government's recently adopted National E xport Strategy has identified certain priority 
sectors for export growth:  forestry, agri-business, marine products, audio-visual, ICT, and mineral 
water.  The policy objective is to increase exports  of goods and services to at least 65% of GDP 
(threefold increase).83 
                                                      
 80 Government of Fiji (2007). 
 81 Shareholders are the Fiji Australia Business Council, the Fiji Chamber of Commerce and Industry, 
the Fiji Employers Federation, the Fiji Indigenous Business Council, the Fiji New Zealand Business Council, 
the Fiji PNG Business Council, the Fiji USA Business Council, and the Textile Clothing and Footwear Council. 
 82 FAO (2007). 
 83 Government of Fiji (2007), p. 60. Fiji WT/TPR/S/213/Rev.1 
 Page 71 
 
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation 
79. The Government's revenue and taxation policies are guided by the goals of minimizing 
distortions, maintaining the integrity of the VAT system, achieving a simple, transparent, and 
equitable tax system, simplifying and streamlini ng bureaucratic tax administration, enhancing 
compliance, improving tax collection of arrears, and promoting the user-pay principle.  Tax revenues 
were projected in the 2009 Budget at F$1,275.4 million (F$965 million in 2005).  Some 37% was 
expected to come from direct taxes (37% in 2005).  VAT, the main indirect tax, was projected to 
account for 32% of tax receipts (33% in 2005).  Since its introduction in 1992, the VAT has proved 
reasonably effective in replacing tax revenues lost ow ing to tariff reductions associated with trade 
liberalization.  Customs revenue (tariffs, excise ta x on imports, and export taxes) was projected to 
account for a significant 29% of tax receipts (31% in 2005).  
(a) Indirect taxes 
80. In addition to the customs tariff and "import ex cise taxes", imports are also levied VAT and, 
in the case of tobacco products and alcoholic beverag es, excise tax.  As indicated previously, the 
import excise tax applies only to imports and is a de facto  tariff (Chapter III(2)(ii)(d)).  Since excise 
taxes on the traditional "sin" goods apply only to domestically made products, tariffs on these imports 
effectively contain an excise component (Chapter III (2)(ii)(d)).  In the case of tobacco products, the 
excise also discriminates against imports by chargi ng a higher excise than on domestically produced 
tobacco products, thereby further protecti ng domestic producers (Chapter III(2)(ii)(d)). 
81. The VAT of 12.5% applies to most goods, except for six basic food items (edible oil, tinned 
fish, rice, flour and sharp, tea, and powdered milk);  kerosene was removed in 2006 to assist the poor;  it also applies to services, except financial services  (banking, insurance, stock dealings and credit 
provision), domestic rents, and education services.
84  These exemptions also apply to imports.  
Exports, including of services, are zero-rated i.e. su bject to a zero VAT rate, enabling exporters to 
claim tax credits for VAT paid on inputs, including those imported.85  The 2008 Budget made "live 
broadcasts" zero-rated, deeming them exported services, and removed the VAT refund on purchases 
of new residential houses.  Notwithstanding the VAT's success in replacing revenues lost as a result of 
tariff reductions (owing to trade liberalization), enforcement and compliance are a major problem, 
especially for export-refunds.  Consequently, in e fforts to broaden the tax base, the authorities are 
focusing on improving tax compliance (rather than ra ising the VAT rate again).  More specifically, 
the special VAT Review Team Unit, set up at FI RCA in 2007 to review VAT refunds, is to be 
strengthened in order to promote good practices and cu rtail, if not eliminate, fraudulent activities.  
82. In October 2006, a hotel turnover tax was a pplied to accommodation, food, and beverages, 
and other hotel services (Hotel Turnover Tax Act, 2006).  It applies to total hotel turnover and does 
not discriminate between domestic and foreign touris ts.  The rate was raised from 3% to 5% in 
April 2008.  The turnover tax on gambling activiti es (e.g. betting at licensed betting houses, tattsloto, 
lotteries) was increased in the 2008 Budget from 10% to 25% on gross ticket sales;  it does not apply 
to internet gambling but was extended to m obile text promotions in the 2009 Budget. 
 
                                                      
 84 Also excluded from VAT are businesses with annual turnover below F$30,000 for goods and 
F$15,000 for services, non-processed foods, second-hand goods unless sold by dealers, and education goods. 
 85 Under the 2009 Budget, zero rating will only be allowed when the export receipts are remitted to 
Fiji;  amendments to VAT returns were limited to six y ears, and to VAT refunds to  three years (Ministry of 
Finance and National Planning, 2008b, p. 116). WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 72 
 
 
(b) Direct taxes 
83. The general company tax rate is 31% (redu ced from 32% in 2003) for resident and non-
resident companies;  it is set at 30% on income of mutual insurance companies in relation to life 
insurances, and 2% for non-resident shipping compani es.  The general rate will be reduced to 29% in 
2009 and to 28% in 2010.86  A dividend imputation system introduced from 2001 avoids "double 
taxation" of company dividends by exempting them from shareholders' persona l income tax, provided 
they have been fully subject to company tax.  There is no withholding tax on dividends, except on those paid by a Fiji incorporated company to a non -resident shareholder (rate of 15%).         
84. Progressive personal income tax rates differ between residents and non-residents.  For 
residents, there are three rate bands:  15% (tax free threshold of F$15,000, increased from F$8,840 in 
June 2008), 25%, and 31% (income above F$20,000).  Non-resident s receive no tax-free threshold 
and are subject to four rate bands:  20%, 25%, 30%, and 31% (income above F$20,000).  In a 
significant reform, the authorities intend to make PAYE the final tax from 1 January 2009, thus eliminating the need for most taxpayers to lodge returns and reducing the costs of administration and 
compliance. 
(ii) Investment incentives  
85. Generous investment incentives apply by way of income tax concessions (Sixth Schedule of 
the Income Tax Act) (Table AIII.1).  Incentives are s een as an integral part of Fiji's industrial policy 
of increasing investment and exports, and seemingly de liver substantial assistance.  Many incentives 
were part of the Government’s Investment Incentiv es package introduced in 2001.  Some apply more 
generally to businesses while more generous incentives target activities or sectors.  For example, the 
Fiji Islands Audio-Visual Commission (FIAVC), form ed in 2002 to develop the audio-visual industry 
(FIAVC Act 2002), administers tax incentives.  The ICT/IT industries also receive general incentives 
from January 2006 until end-2012.  Some (e.g.  the audio-visual measures) are complex and 
administratively demanding, incorporating a range of  incentives often with arbitrary limits.  Fiji has 
notified to the WTO tax incentives for the film and a udio-visual industries, and Members have agreed 
to their extension until end 2015.
87 
86. Tax incentives are likely to distort Fiji's production and investment patterns, and, with it, 
resource-use efficiency, as well as resulting in tax evasion and avoidance.   The Government has 
acknowledged their excessive use, and plans to ph ase out these distortions progressively by ensuring 
any remaining incentives are nec essary, well targeted, performance based, and time bound.88  
Although the Government indicated its intention in the 2008 Budget to phase out many of them, it 
also announced additional incentives, including a new package aimed in particular at information 
technology.  Moreover, the 2009 Budget extended such incentives, including:  a new tourism incentive package including 10-year tax holidays (extendable to 20 years if Fijian indigenous participation is at least 25%) to replace the prev ious scheme that expired at end 2008;  establishment 
of a tax-free region in the North and Maritime is lands from 2009, including a 13-year tax holiday 
(extendable to 18 years for firms investing at least F$2 million and having at least 25% Fijian 
indigenous participation), and import duty exemption on all set-up imports for new firms;  10-year tax 
holidays from 2009 to end 2014 for commercial agricu ltural farming and agri-processing investing at 
least F$2 million and employing 30 local employees;  10-year tax holidays as well as duty-free imports to set-up requirements for processing agri cultural commodities (e.g. sugar, coconut, and 
                                                     
 
 86 Ministry of Finance and National Planning (2008b), p. 107. 
 87 WTO documents G/SCM/N/146/FJI, 4 September 2006;  G/SCM/W/542, 2 July 2007;  and 
WT/L/691, 31 July 2007.  
88 Ministry of Finance and National Planning (2007), p. 35. Fiji WT/TPR/S/213/Rev.1 
 Page 73 
 
 
cassava) into bio-fuels investing at least F$1 million and employing 20 local employees;  extended tax 
holidays from 10 to 13 years for new ICT operators ;  increasing film tax rebate from 15% to 35% 
from 2009;  and extending the 40% investment allowance to end 2010.89 
87. FIRCA publishes annual breakdowns of forgone ta x revenues associated with each incentive, 
thereby contributing to transparency and public  accountability.  As a result of these and other 
incentives, income tax revenue totalling F$61.7 million was forgone in 2006.90 No information was 
available from the authorities concerning th e cost-effectiveness of these incentives.   
(iii) Other forms of production assistance 
88. Fiji has made no domestic support commitments in the WTO, and any such agricultural 
support is limited to Gr een Box measures and de minimus  levels of 10%.  It has not updated WTO 
agricultural notifications on domestic  support commitments since June 1998.91  Minor assistance of up 
to F$1,000 per farmer and F$10,000 per group is  provided to subsisten ce and semi-commercial 
farmers to assist land preparation, purchase of  inputs, establishment of small-scale poultry and 
piggery forms and bee hives, agri-based cottage industries, and floriculture industry (Funding 
Assistance for Rural Farmers Scheme).  Cane fa rmers also receive financial assistance.  The 
Commodity Development Framework to assist agricultu re was abolished in the late 1990s.  However, 
the Farm Assistance Scheme introduced in 2001, larg ely as part of affirmative action policies to assist 
indigenous Fijians, provides some F$25 million to di stribute free inputs to village farmers, ranging 
from planting material for taro to chain saws and outboard motors.  The Government also supplies a 
limited range of seeds and planting materials at subsidized prices to support rural livelihoods.92  Farm 
input subsidies tend to distort markets, institu tionalize unprofitable farming practices, and do not 
improve marketing initiatives.93   
89. Fiji has few other production subsidies.  Invest ors in new hotels, including renovations and 
refurbishment of existing hotels, may elect to recei ve a subsidy of 7% of the project's total capital 
expenditure (excluding cost of land)  in lieu of the 55% investment allowance (Hotels Aid Act).  The 
only milk processor, the Rewa Dairy Cooperative, receives a concessionary tariff rate, reduced from 
5% to zero in the 2009 Budget. 
Concessionary and other credit arrangements 
90. The Reserve Bank allows commercial banks to exceed the ceiling imposed in December 2006 
on loans in priority areas, including to micro, sm all and medium-sized enterprises.  Total loans to 
priority areas amounted to F$156 million (up until September 2007).94   
91. The Government guaranteed borrowings by th e state-owned Fiji Development Bank in 2008 
to enable continued implementation of the Govern ment's lending policy under various special and 
directed loan schemes to assist essential sectors.  These sectors are agriculture, including forestry and 
                                                      
 89 Ministry of Finance and National Planning (2008a), pp. 17-22. 
 90 The tax revenues forgone as a result of each incentiv e are not necessarily additive, so that this figure 
may be overestimated. 
 91 WTO document G/AG/N/FJI/6, 9 June 1998. 
 92 ADB (2005b). 
 93 ADB (2005b). 
 94 Fiji Government, Press Release, Ceiling on loans by commercial banks , 5 September 2007.  Viewed 
at:  http://www.fiji.gov.jf/publish/page_9967.shtml. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 74 
 
 
fishing, mining, quarrying, and manufacturing.95  The Bank has several concessionary loan schemes.  
The Small Business Equity Scheme provides subsidi zed loans at 12% per annum subject to minimum 
equity of 20%.  The Seed Capital Assistan ce Revolving Fund (SCARF), formed in 2002 with 
government funding of F$4.5 million, focuses on eco- tourism, fishing, and forestry, and provides 
loans of up to 90%, including interest free up to a valu e of 25% of the total project cost (thereafter at 
8% per annum).  The Special Ec onomic Rehabilitation Program for the North (Northern Facility) was 
formed with F$1 million in government funding to target businesses operating in the Cakaudrove, 
Bua, and Macuata provinces.96  Other schemes include the indige nous Commercial Loans to Fijians 
Scheme, the Economic Rehabilitation Scheme, and th e Small Business and Micro-Enterprise Lending 
Scheme.  Interest rates on agricultural loans are subsidized.   
92. The Bank intends to increase its loan mix in favour of these activities from 29% to 60% over 
the next three years (2009-11) in line with the Minister of Finance's policy direction for the Bank 
released in January 2008.  This will require fo cussing on the manufacturing sector to assist import 
substitution programmes, as well as agriculture, export-oriented , and resource-based industries.97  The 
Bank last received a capital injection from the Gove rnment in 2000, which also assists its operations 
via subsidized interest rates.98   
93. The National Centre for Small and Micro-Ente rprises Development, formed in 2001, runs 
training programmes and a new Business Incubator Ce ntre in Suva.  Its Microfinance unit extends 
micro-credit (total loans of F$2.4 million).  A microfinance bank is being considered.   
(iv) Trade-related investment measures  
94. Several tax incentives are tied to minimum local-content or export requirements 
(Chapter III(4)(ii)).   
(v) Standards and other technical requirements 
(a) Standards, testing, and certification 
95. Fiji is a member of the Codex Alimentarius Commission, the Pacific Area Standards 
Congress (PASC), and became a full member of the International Organization for Standardization 
(ISO)  from 2006.  It is not a member of the International Electrotechnical Commission (IEC).  The 
Fiji Trade Standards and Quality Control Office (FTSQCO), a government department within the 
Ministry of Commerce, Business Development and Investment, administers standards on goods and 
services (Trade Standards and Quality Control D ecree 1992).  It aims to ensure that Fiji's 
manufactured and exported products and services are of an acceptable standard by aligning them to 
international and other national standards (especially Australia and New Zealand).99  The FTSQCO 
signed a Memorandum of Understandi ng with Standards Australia International in 1998.  A Trade 
Standards Advisory Council (TSA C), consisting of private sector  and consumer representatives, 
makes recommendations to the Minister on standa rds, including processes, practices, composition, 
                                                      
 95 It also offers small and micro loans in wholes aling and retailing, hotels , transport, storage, 
communications, and professional and business services (FDB Press Statement, 29 February 2008.  Viewed at:  http://www.fdb.com.fj/_resour ces/fdb/files/Press%20Statem ent%2029%20feb% 202008.pdf). 
 
96 Fiji Government, Press Release, Cabinet approves government guarantee to FDB , 15 January 2008.  
Viewed at:  http://www.fiji.go v.fj/publish/page_10958.shtml. 
 97 FDB (2008). 
 98 FDB (2006). 
 99 The authorities indicate that all Fijian standards are harmonized with either Australia, New Zealand 
or international standards, with minor modifications to suit Fiji. Fiji WT/TPR/S/213/Rev.1 
 Page 75 
 
 
labelling, and codes of practices.   This includes voluntary and manda tory standards as well as other 
quality and safety issues related to trade (e.g. d eclaration of dangerous goods, temporary bans, and 
issuance of defect notices and warnings).  Mandato ry standards must be approved by Cabinet.   
96. Fiji has approximately 60 standards, c overing building and building materials, 
telecommunications cabling, safety footwear, electri cal installation, quality management systems, 
food, fuel, corporate governance, and mandatory st andards adopted on bottled water in 2004 (Bottled 
Water Standard Order) and on fireworks in  2005 (Fireworks Labelling Standard).100  Fijian standards 
are published, and most have been adopted from Australia.  Fiji adopted from February 2008 two 
mandatory Australian and New Zealand requireme nts, with minor modifications, for all new 
household refrigerators and freezers, as part of its Standards & Labelling Program covering energy 
labelling and minimum energy performance standards.101  
97. The National Trade Measurement Laboratory is  the only national testing laboratory.  
Manufacturers needing products tested use accredited laboratories in Australia or New Zealand, or the 
University of the South Pacific’s Institute of Applied Science (USP/IAS)  laboratory, which is 
ISO 17025 certified.  Test results from approved la boratories are required for Fijian bottled water. 
98. Revised food safety regulations were implemented in 2003 (Foo d Safety Act, replacing the 
Pure Foods Act).  Preparing, packing, keeping, c onveying, selling or giving free-of-charge food that is 
unsafe, unhygienic, adulterated or unfit for c onsumption and without prescribed labelling 
requirements is prohibited.  The Central Boar d of Health may declare any food as unfit for 
consumption if it does not comply with Codex food standards, or has been proven unfit based on 
scientific evidence.  These food safety standards a nd codes are deemed regulations unless modified by 
the Board, which cannot restrict or disadvantage trade.  Importers of processed foods that are non-
compliant including with labelling requirements (see be low), may have to forfeit the products and be 
criminally prosecuted.  Board permits are require d to import raw or semi-processed food for further 
processing, and to remove original packaging for re-packaging. 
99. Fiji has no drug registration process, and all pharmaceuticals are imported.  Import (and 
production) comes under the Fiji Pharmacy and Poisons Act.  Imports are perm itted provided the label 
states compliance with either the British Pharmacopoe ia or United States Pharmacopoeia standards;  
11 licensed wholesalers in Fiji may import pharmaceuticals. 
(b) Labelling and marking 
100. All imported goods must be la belled with the country and company of make, and, for 
clothing, display washing instructions and fabric content.  Packaged goods must be labelled with 
quality certification and weight.  The Food Safety Act also covers regulations for labeling and 
packaging of food products e.g. manufacturers', importers', packers' and distributors' name, 
ingredients, prescribed nutritional information, sh elf-life expiry date, and other mandatory Codex 
labeling requirements.  If not met, importers may be di rected to re-label within 30 days.  All beverage 
products in Fiji require use-by-date labelli ng and details of contents on packaging. 
101. Fiji has no food labelling requirements for GMO fo ods or restrictions on their importation or 
production. 
                                                      
 100 FTSQCO online information.  Viewed at:  http://www.pasc.standards.org.au/list.asp? 
country=Fiji&page=3. 
 101 Fiji Department of Energy online information, Overview of the Proposed Fiji Standards for 
Refrigerators and Freezers .  Viewed at:  http://www.fdoe.gov.fj/ Public%20Submission%2007.doc. WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 76 
 
 
(c) Quarantine requirements 
102. Fiji became a member of the Internati onal Plant Protection Commission (IPPC) in 
August 2005.  It is also a member of the Pacifi c Plant Protection Organization (PPPO), the Asia and 
Pacific Plant Protection Commission (APPPC), and th e World Organization for Animal Health (OIE), 
which Fiji joined in 2007.  The Department of Qu arantine and Inspection Services of the Ministry of 
Agriculture is responsible for Fiji’s animal and plant protection (Plant Quarantine Act 1982 (amended 
in 1985) and Regulations, the Animal Importa tion Act 1978 and Regulations, and the Animal 
Contagious Diseases Act, 1985).  Health and quara ntine regulations apply to most food products, 
especially meats and fresh produce.   
103. In order to reduce delays in issuing impor t permits, inconsistency in standards, 
non-compliance with the WTO SPS Agreement, and to improve service quality and delivery, the 
Department of Quarantine and Inspection Servi ces was declared a Reorganisation Enterprise under 
the Public Enterprises Act in January 2005, and a Scoping Study and Audit of its operations was 
undertaken.  The recommendations were adopted  in 2006 and a Charter Administration Committee 
(CAC) formed in 2007 to oversee their implementati on and the Department’s reform.  It is to be 
replaced with a statutory Biosecurity Authority of the Fiji Islands, to be created under a Biosecurity 
Act, which would merge the Plant Quarantine and Animal Importation Acts;  Cabinet approved the 
legislation in October 2008 a nd it is awaiting promulgation. 
104. Fiji has bilateral quarantine agreements, to secu re agricultural exports, with:  China on apple 
and pears;  New Zealand on paw paw, eggplant, ch illies, herbs, pineapple, breadfruit, and mango;  
Vanuatu on kava;  Tonga on water melon, yams , and vanilla;  Papua New Guinea on coffee and 
copra; and Australia on paw paw.  Fiji also has ge neral bilateral quarantine agreements on cooperation 
with the Philippines, Japan, and Indonesia (all signed in 2005).  A bilateral quarantine agreement with 
Australia proposed in 2003 has not been complete d;  Australia reviewed its position on such an 
agreement in 2007.  Fiji is seeking to extend access fo r its immature ginger to cover fresh ginger, and 
would like Australia to allow access in other co mmodities, such as kava and breadfruit.  Fiji is 
negotiating access to the United States for mango and breadfruit. 
Animals 
105. Imports of live pigs, pork and its products (e xcluding canned) from New Zealand are banned, 
and live cattle, sheep, goats, and all ruminants and their semen from Australia require written 
permission from the Ministry of Agri culture (Animals Importation Act 1978).   Imported  frozen 
chicken and chicken by-products, in cluding eggs, are prohibited from countries affected by Newcastle 
disease, and/or where poultry is vaccinated against other animal diseases exo tic to Fiji, such as 
Australia (except possibly from Western Australia) and the United States (including baby foods 
containing chicken or eggs).102  These imports are subject to a risk assessment in line with OIE 
requirements.  Cooked beef in hermetically seal ed cans may be imported from Papua New Guinea if 
the beef carcasses are imported from licensed abattoirs or export packing house in New Zealand or 
Australia and canned in Papua New Guinea at  an approved cannery  (Animal Importation 
(Amendment) Regulations 2006). 
106. Import permits are required for any animals and their products, including 
fresh/chilled/frozen/preserved meat and poultry;  pr ocessed meat (e.g. sausages) and poultry;  noodles 
containing albumen and and/or natural meat/poultry flavours;  natural beef base and stock;  canned 
                                                      
 102 Australian authorities indicated that Australia can be considered free from Newcastle disease under 
OIE guidelines.  Australian poultry meat  can seemingly now be exported to Fiji subject to strict processing 
requirements, including canning on arrival. Fiji WT/TPR/S/213/Rev.1 
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meat/poultry;  dairy products (milk, cheese, yoghurt, butter, whey, etc.);  semen;  hides;  feathers;  
natural bristles;  eggs (including albumen);  embr yos/ova;  animal feeds (e.g. meat and bone meal); 
and honey.  Imports shipped wit hout permits and veterinary cer tification will be re-shipped or 
destroyed at the importer's expense.  Importe d honey from countries having foul brood and other 
diseases have been banned since 2003.   
Plants  
107. Fiji's plant protection legislation also covers  mandatory quality control of exported plant 
products.  It has developed export quality standards for chillies, eggplants, leafy vegetables, prickly 
mangoes, and okra to ensure that export-market re quirements are met.  Imported plants and their 
products may require:  permits, in cluding an Import Risk Analysis; off-shore treatment measures;  
inspection arrangements;  and certification.  Impor ts of all fruits and vegetables, cut flowers, 
coconuts, mushrooms, rice and other grains, nuts,  and kernels require a quarantine permit and a 
phytosanitary certificate from the exporting country.  Many (e.g. citrus fruit) must be treated with 
methyl bromide in the exporting country.  Fruit mu st be grown and packed in areas at least 80 
kilometres from fruit fly infestati ons (currently only applies to New Zealand) or be subject to 
dimethoate dip treatment or be held in cool storage for 14 days at 0°C before shipment.   
108. While there are a couple of seed importers, regul ar access to seeds is hampered by difficulties 
in meeting the quarantine requirements.103  All seed imports or plant and plant parts are subject to 
mandatory risk assessment. 
(vi) Price controls 
109. Fiji maintains extensive price controls admini stered by the Prices and Incomes Board on 
wholesale and retail sales of basic food items, pha rmaceuticals, fuel, and cigarettes, as well as on 
services, such as rents, education fees, and tel ecom charges (Counter Inflation Act 1973).  Items 
subject to price controls cover 50% by weight of the consumer price index basket;  a Price 
Surveillance Order also cove rs many intermediate goods.104  In principle, all prices of manufactured 
goods are potentially subject to price control by la w.  The 2008 Budget reduced the permitted mark-
up by importers, wholesalers, and retailers on all ba sic food items.  Price controls on foodstuffs that 
do not reflect quality may penalize value-added in the tourism sector by encouraging imports of better 
quality food, since farmers have no price incentives to improve quality.105 
110. Some fuel activities are price controlled.106  Sales to major industrial users are not controlled 
(e.g. Fiji Electricity Authority, Fiji Sugar Corporati on, Emperor Gold Mines and the Bus Companies);  
a number of these receive differential rates of govern ment subsidies through lower specific rates of 
fiscal duty.  Price-controlled sales are based on the pricing formula contained in the Petroleum Pricing Template, which constructs prices by adding to the imported f.o.b. price freight, insurance, exchange 
rate adjustments, demurrage and losses, operating co sts, headquarter costs for oil companies, fiscal 
duty and taxes, distribution costs, and investment returns of oil companies. 
111. The Commerce Commi ssion may also recommend that the Minister impose time-bound price 
controls on goods and services subject to restricted  competition in the interests of consumers or 
suppliers.  Such controls apply to telecommuni cations, steel, cement, postal services and in many 
other areas.  In general, the test for determining to  control prices is whether they reflect market power. 
                                                     
 
 103 ADB (2005b). 
 104 Government of Fiji (2007), p. 20. 
 105 ADB (2006), p. 31. 
 106 Rao (2004). WT/TPR/S/213/Rev.1 Trade Policy Review 
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(vii) Competition law and consumer protection 
112. Fiji's consumer protection and competition law,  the Fair Trading Decree 1992, was amended 
extensively in 1998;  intellectual property rights, state-owned entities, and trade unions are exempts.  
Following the Commerce Act in 1998, to regul ate access to services, the Commerce Commission 
(independent from the Ministry of Commerce since 2004) became responsible for administering the 
competition provisions (Part III on restrictive business practices and mergers) of the Fair Trading 
Decree.  Amendments in 2005 gave the Commissi on greater investigatory powers (Fair Trading 
Decree (Amendment) Act 2005).  The Department of Fair Trading and Consumer Affairs still 
administers legislation on consumer protection, in cluding provisions on mock auctions, door-to-door 
sales, consumer conditions and warranties, inform ation and safety, enforcement, and remedies. 
113. Prohibited restrictive business practices include: contractual and covenant arrangements that 
"substantially reduce competition";  "mis-use" of ma rket power ("dominant position") to eliminate or 
"substantially" damage a competitor, prevent a co mpetitor's entry or competitive conduct;  and resale 
price maintenance.  Mergers that result in a "domin ant" market position, as decided by the European 
test of dominance (ability to act, to a greater or lesser extent, free of competitive pressures), are 
prohibited.  Access agreements for declared regulat ed infrastructural services (including state-owned 
entities), must be either notified to the Commerce Commission at least 30 days in advance or be 
registered with it when formed, and a copy of th e agreement provided.  Parties to access negotiations 
may request Commission staff attend as facilitato rs.  Where they cannot agree the Commission may 
arbitrate, taking into account factors such as th e access provider's legitimate business interests and 
investment in the facilities, and costs in providing  access;  the third party's terms of access;  the 
economic value to the access provider of any new investment agreed by the third party or access provider;  the economically efficient operation of  the facilities;  public benefits from having 
competitive markets;  and any compensation to be pa id to the access provider.  The Commission has a 
number of arbitration applications pending in  telecommunications that were lodged since 
October 2008. 
114. Under the competition policy adopted in late 2004, the Government intends to dismantle 
monopolies, including in utilities and communicati ons, which have severely constrained economic 
growth, and to regulate unfair trade practices, anti-competitive behaviour, unfair monopoly practices, 
and sale of sub-standard products.
107  This, together with streamlining public enterprises and their 
service delivery, would contribute significantly to  reducing business costs.  To this end, the 
Government is considering merging the Department of Fair Trading and Cons umer Affairs into the 
Commerce Commission to help improve enforcemen t.  The Commission also made several public 
statements asserting its independence from government and industry in 2008. 
(viii) State-owned entities and privatization 
115. State-owned enterprises (SOEs) are involved in many business activities, including sugar 
production, ship building, shipping, forestry, banking,  insurance, finance, pow er generation, sea ports, 
air transport, rice milling, cattle raising, crop  production, aquaculture , telecommunications, and 
newspapers (Table III.6).  They contribute some 2.2% of GDP, and employ 20% of public employees, 
adding largely to the Government's excessive wage pa yments.  At least 50% of annual profits must be 
paid to the Government as dividends. 
                                                      
 107 Ministry of Finance and National Planning (2006), p. 10, and (2007), p. 19. Fiji WT/TPR/S/213/Rev.1 
 Page 79 
 
 
Table III.6 
State-owned entities, November 2008 
(Per cent) 
Category/entity Core activities and social obligations Government 
shareholding 
(%) 
Government commercial companies   
Airports Fiji Ltda Operate international airports and outer island airstrips;  achieve 
minimum annual rate of return of 10% on shareholders funds;  outer 
islands airports run non-commerci ally and funded by government 100 
Fiji Broadcasting Ltda Provide national broadcasting services to rural and urban areas and 
public service broadcast under contract  with the Government (two out 
of the six radio stations). The other four stations are commercially 
oriented and target specific audiences across a broad spectrum of listeners 100 
Fiji Ports Corporation Ltd (Ports Terminal 
Ltd subsidiary)a Pilotage, stevedoring, cargo hand ling, warehousing and part wharf 
operator in Suva and Lautoka 100 
Unit Trust of Fiji (Management) Ltd Develop effici ent and thriving Fijian capital markets and regulate 
activities of the various market pa rticipants.  Social obligations 
include undertaking appropriate educational and public awareness 
campaigns to broaden public ownershi p of debt and equity securities 100 
Viti Corp Corporation Ltda Provide training in all aspects of dairy and business management, 
financial planning and in artificia l insemination techniques, establish 
a dairy training facility within five y ears. A full-time expert trainer is 
to be employed by Marphona Farms to write the necessary training 
manuals and procedures for module fa rms, which they will help to 
establish.  Training will also c over award of Massey University 
certificates and diplomas 100 
Yaqara Pastoral Company Ltda Cattle breeding and farming 100  
Post Fiji Ltda Postage of letters and distributing c ourier and parcel items;  provide 
stamps, financial transactions, telegram services and recently data 
processing and mail production servi ces.  Collects, processes and 
delivers letters, parcels and urgent documents to over 55,000 letterboxes and some 14,000 residences.  Social obligations ensure 
that all Fiji islanders have reasonable access to its letter services, 
including delivery of standard letters at a uniform national price, even if involving a loss 100
 
National Trading Corporation Ltd Ma rket and distribute produce from farming communities to local and 
overseas markets 100 
Fiji Shipbuilding and Heavy Industries Ltd 
(formerly the Fiji Shipbuilding Corporation 
Ltd)a Ship building and repair, heavy construction, engineering works, 
plant and equipment 100 
Fiji Development Bank Expanded into commercial products and services, which helps sustain 
the Bank’s core business of financing higher risk development 
projects.  Its portfolio has a delicate mix of commercial income-
generating projects and high-risk development projects to ensure the 
Bank provides finance to assist in Fiji’s economic development but is also self-sustaining 100 
Food Processors (Fiji) Ltda Exports local delicacies as canned products;  frozen foods, such as 
cassava, taro;  and fresh fish  100 
Rewa Rice Ltda Buys, mills and markets rice grown locally 100 
Fiji Public Trustee Corporation Ltda Management of estates and provisi on of trustees to beneficiaries 
under 21 years of age  
Table III.6 (cont'd) WT/TPR/S/213/Rev.1 Trade Policy Review 
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Category/entity Core activities and social obligations Government 
shareholding 
(%) 
Commercial statutory authorities   
Civil Aviation Authority of Fiji Aviation regulatory authority 100  
Fiji Electricity Authoritya Power generation and distribution;  subsidize power to rural areas in 
Viti Levu and to Vanua Levu and Ovalau at an annual cost of F$27;  
required to be totally commercial a nd earn an annual rate of return of 
10% on shareholders funds    100 
Housing Authoritya Develop and produce affordable housing and mortgage financing 
with attractive loan packages on a competitive basis, especially for 
low income earners;  subsidize interest on housing loans to 5.99% 
annually subject to a means test and financed by government grant  100 
Maritime and Ports Authority of Fiji (taken 
over by Fiji Ports Corporation Ltd from 
1 July 2005) Port management/regulator 100  
Public Rental Boarda Public sector housing and rental accommodation 100  
Training Productivity Authority of Fiji  Provides and arranges relevant trai ning to assist economic growth and 
employment 100 
Majority-owned Government companies   
Air Pacific Ltd International airline opera ting international and domestic services 
around the Pacific and to North America and Japan 51.0 
Fiji Pine Ltd A former government-manag ed asset incorporated in 1990 to 
ultimately privatize the valuab le forests back to Fijians 99.9 
Fiji Sugar Corporation Ltd Government-owned  sugar milling company with the monopoly on 
production of all raw sugar in Fiji 68.0 
Fiji International Telecommunications Ltd Privat e licensed company providing Fiji's international 
telecommunications services 51.0 
Pacific Fishing Company Ltda Only cannery;  also assists people of Levuka by facilitating 
assistance from the Fiji Development Bank for small-scale farming 98.0 
Fiji Hardwood Corporation Ltd Grow s and markets Fiji mahogany logs .. 
Minority-owned companies   
Air Fiji Ltd Provides domestic and regional air transport services 11.5 
Colonial National Bank Provides banking, life in surance, health insurance, and managed 
fund services. 49.0 
Amalgamated Telecom Holdings Ltd Parent company of  Telecom Limited, the sole provider of local and 
national (trunk) telephony servi ces - owns Fiji’s only public 
switched telephone network 49.0 
Fiji Reinsurance Company Ltd  20.0 
Pacific Forum Line Ltd Commercial shipping company 23.0 
Shipbuilding Fiji Ltd (being wound-up)  49.0 
Daily Post Newspaper Only locally-owned newspaper 44.0 
.. Not available. 
a State-owned entities monitored by the Department of  Public Enterprises and Public Sector Reforms. 
Source:  ADB (2006), Private Sector Assessment for Fiji Islands "Promise Unfulfilled" , Appendix B, February;  and the 
Fijian authorities. 
116. Despite efforts to reform SOEs, including re-o rganization, corporatization, application of 
commercial principles, and enhanced reporting and management requirements (Public Enterprise Act, 
1996 and Public Finance Management Act, 1999), they  remain inefficient and perform poorly.  Most 
SOEs in 2002 (e.g. the Fiji Electricity Authority monopoly) earned negative or zero rates of return on 
capital, thereby breaching the Public Enterprise Ac t, which requires them to be solvent without Fiji WT/TPR/S/213/Rev.1 
 Page 81 
 
 
government support.108  In 2007, the average return of Government Commercial Companies (GCCs) 
and Commercial Statutory Authorities (CSAs) was sli ghtly positive, compared with negative returns 
in 2006.109  Reforms to state-owned entities have slow ed, not helped by the substantial overlap 
between the two Acts and the l ack of clear accountability between  the Ministries of Finance and 
Public Enterprises and several line ministries res ponsible for regulating certain GCCs (e.g. the 
Ministry of Transport).  Current policy is to restru cture them and CSAs to achieve at least a 10% rate 
of return on shareholders funds.  Some SOEs mu st also meet social objectives specified by 
government, thereby resulting in cross-subsidiza tion and difficulties in accounting and measuring 
performance.  The Government’s total holdings in non-financial entities amounted to 30% of GDP at 
end 2000, and at end 2001 the liabilities of "official  entities" to the domestic financial system equalled 
28.7% of GDP.110 
117. While a major priority, progress on SOE privatization has been mixed.  In 1998, 49% of 
Amalgamated Telecom Holdings Ltd was divested, and a further 9.8% in 1999 and 3.6% in 2002, 
mainly to Fijians and the Fijian National Provident Fund (owns over half of the company).  In 1998, 
28.6% of Air Pacific was divested to Qantas.  Sh ipbuilding Fiji, 51% divested in 1996, has been 
substantially assisted.  Sale of the Government's eq uity in Fiji's third largest bank, Colonial National 
Bank, was postponed along with ot her SOEs (e.g. Rewa Rice Ltd, Viti Corps Company Ltd, Daily 
Post Ltd, Fiji Ship building and Heavy Industries Lt d, and Yaqara Pastoral Company Ltd) to improve 
SOE management and financial control, including restructuring, before embarking on an expanded 
privatization programme.  In 2006, the Ministry of Public Enterprises formulated a comprehensive 
programme of reorganising, restructuring, co rporatizing and privatizing SOEs to accelerate 
divestment.  General privatization pr inciples are for:  the State to retain a controlling interest if the 
company has national strategic importance;  the market  to set the value of the entity, to be approved 
by Cabinet and Parliament;  sale by competitive tender or  to a strategic partner;  at least 50% of public 
share offerings to be offered firstly to indigeno us Fijian and Rotuman organizations/individuals and 
employees;  and "Golden Shares" to be used where necessary to protect prices and employment.111  
However, the authorities indicate that share divestme nt in state-owned entities mainly reflects fiscal 
goals of balancing the budget, and that privatiza tion does not seem a current government priority.  
There was a need to develop a comprehensive privatization policy. 
118. Government supports SOEs via loans, standing debt guarantees (e.g. activated by Fiji Sugar 
Corporation in 2001), equity injections (e.g. Am algamated Telecom Holdings in 2000), and ad hoc 
explicit and timely guarantees on i ndividual debt instruments.  F iji Development Bank borrowings are 
government guaranteed.  Government contingent liabilities from SOE guarantees rose to F$3.3 billion 
at end 2007 (56% of GDP), mainly relating to the National Provident Fund (75% of total contingent 
liabilities, or F$2.5 billion);  the Fiji Development Bank (F$415.2 million);  Fiji Electricity Authority (F$156.2 million);  the Housing Authority (F$106.5  million);  Fiji Sugar Corporation (F$32.7 million, 
for short-term borrowings of F$25 million for the mill upgrade programme;  Fiji Maritime and Ports 
Authority (F$41.4 million);  and other (F$51.7 milli on, including mainly to the Colonial National 
Bank).  Guarantee fees of up to 2%, recently introduced, collected F$0.5 million in 2007. 
119. The Government is considering re-organiz ing and merging all state-owned agri-based 
companies into a holding company for agri-based en tities, including Rewa Rice Ltd, the Agricultural 
Marketing Authority, Food Processors Ltd and the Fiji Meats and Industry Board, to improve 
efficiency and profitability. 
                                                     
 
 108 ADB (2002). 
 109 Ministry of Finance and National Planning (2008b), p. 73. 
 110 IMF (2003), p. 20. 
 111 Ministry of Public Enterprises and Public Sector Reforms (2006). WT/TPR/S/213/Rev.1 Trade Policy Review 
Page 82 
 
 
120. The Fiji Investment Corporation Ltd (FICL) , established in April 2004 with a government 
grant of F$11 million, provides seed capital for start- up ventures in targeted growth sectors, especially 
in tourism, agriculture, manufacturing, and ICT.   Its operations were suspended in 2006 and 
secretariat functions transferred to the finance mini stry when the FICL's o ffice closed.  FICL was 
reactivated in July 2008 and a new Board formed, which will also consider divestment options.  
(ix) Marketing arrangements 
121. Fiji has several statutory agricultural marketing arrangements.  Sugar marketing is controlled 
and regulated.  Price stabilization arrangements apply to copra, where the finance ministry operates an industry-funded Copra Revolving Fund Price Stabili zation Scheme.  Farmers contribute 25% of any 
price excess above F$500 per tonne to the Fund in  order to support pri ces of F$400 per tonne; the 
current price is F$650 per tonne.  The Coconut  Industry Development Authority has handled 
rehabilitation of the coconut industry since 2005.  The Agricultural Marketing Authority was 
established in early 2005 to facilitate marketing, esp ecially by remote farmers (Agricultural Marketing 
Authority Act, 2004).  It helps producers to market  agri-produce, identify markets, facilitate and 
develop marketing, to purchase, sell, export, and import, including inputs. 
(x) Intellectual property rights 
122. Fiji has not joined any WIPO treaties since its l ast Review.  Membership is still limited to the 
Berne Convention (literary and artistic works), the Rome Convention (performers, producers of 
phonograms and broadcasting organizations) and the Ge neva Convention (unauthor ized duplication of 
phonograms).  Fiji's main intellectual protection laws are the Patent Act;  the Trade Marks Act, 1970;  
the Merchandise Marks Act;  and the Copyright Act, 1999 (fully in force from July 2000);  except for 
copyright and patents, these have not been signifi cantly amended since the last Review of Fiji. 
123. The Copyright Act, which is administered by the Attorney-Generals' Office, is based on 
United Kingdom, Australian, and New Zealand legisl ation, and provides a comprehensive scheme to 
protect copyright and related rights.  The Copyright Tribunal tries to prevent copyright owners from abusing their potentially monopoly position in deali ngs with licence requests to use copyright work 
(Copyright Act, Copyright Rules of Procedures, 2003);  it has no jurisdiction where individuals refuse 
to grant a licence.  The Tribunal's only role is where a licensing body and licensing scheme 
established by the copyright owners refuse to join a collecting body. Copyright protection is for the creator’s life plus 50 years, except for sound recordi ngs or audio-visual works where it is 50 years 
from when the work was made or first publicly re leased or published, whichever is the latest.  
Unlicensed imports breach copyright unless for domestic or private use, if the importer knows or has 
reason to believe they infringe co pyright.  Copyright owners may request Customs to investigate if 
imports are pirated, and to detain them (Part V III, Copyright Act).  Copyright owners may request 
Customs to detain parallel imports, which the Hi gh Court can ban.  Copyright enforcement is 
allegedly weak, and illegal copies of films, s ound recordings, and computer programs widely 
available. 
124. The Office of Administrator General handles re gistration of trade marks on goods;  these have 
a renewable life of 14 years.  Service marks are not allowed.  Since records of the Fiji Trade Marks Registry are not computerized registration can take  from ten months to several years due to manual 
searches and lack of resources.
112  A foreigner wishing to register a trade mark must use an authorized 
agent resident in Fiji.  For Customs to seize in fringing products, the trade mark owner (informant) 
must submit a prescribed notice pursuant to sec tion 15 of the Merchandise Marks (Detention of 
                                                      
 112 Muro Leys online information.  Viewed at:  http://www.munroleyslaw.com/ intelectualproperty/ 
patents.asp. Fiji WT/TPR/S/213/Rev.1 
 Page 83 
 
 
Goods) Regulations, and be sufficiently vigilant to provide Customs information on expected 
shipments of suspected illegal imports.  In these  cases, Customs will issue a notice prohibiting the 
imports and will seize them after inspecting th eir legality (Item 8 of Schedule 5 of Customs 
(Prohibited Imports & Exports) Regulations). 
125. Patents are handled by the Industrial Property O ffice of the Office of Administrator General, 
and are for 14 years from the issue date.  Patent  applications (except from the United Kingdom) are 
examined in Australia and can take four years to be registered.113  There are no working or 
compulsory licensing provisions, and the Attorney-Gen eral may annul patents in the public interest.  
Under a 2002 amendment, it is not an infringement to  construct, use or sell a patented pharmaceutical 
invention solely for uses reasonably related to the development and submission of information 
required under any Fijian law or of another country that regulates its manufacture, construction, use or 
sale (Patents (Amendment) Act, 2002).  The Copyright Act now protects industrial designs.114  
"Independent" designs cannot be registered in Fiji and may only be protected if registered in the 
United Kingdom (United Kingdom Designs (Protection) Act). 
(xi) Regulation of corporate practices 
(a) Corporate governance and legal business framework 
126. All businesses must be licensed.  Fiji's legal framework for business is weak115;  it has over 
68 licensing laws (e.g. the Business Licensing Ac t), each administered by separate government 
agencies.  Business and company regi strations, issued by the Ministry of Justice's Office of Registrar 
of Companies, is slow (at least 20 working days ), non-transparent, insecure, and is a not user 
friendly.116  A project to simplify company registrations, wh ich started in January 2007, is expected to 
reduce the time taken to an average of 1-3 da ys.  Excessive duplication adds to business costs 
(Chapter I).   
(b) Banckruptcy procedures 
127. Fiji's bankruptcy legislation (Bankruptcy Act, 1945)  is outdated;  it has not been significantly 
amended during the review period.  The procedural system is legally costly and time-consuming.  
There are significant deficiencies in the bankruptcy framework, and recoveries are low.  For example, 
on average it takes 1.8 years to close a Fijian business and costs 38% of the estate;  recovery rates are 
20.2 cents in the dollar (2008 data).117 
                                                      
 113 Muro Leys online information Viewed at:  http://www.munroleyslaw.com/intelectual 
property/patents.asp. 
 114 Muro Leys online information Viewed at:  http://www.munroleyslaw.com/intelectual property/ 
patents.asp. 
 115 ADB (2006). 
 116 FIAS (2005b). 
 117 World Bank (2008a).