RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/TON/11 
21 March 2005 
 (05-1170) 
Working Party on the  
Accession of Tonga Original:   English 
 
 
 
ACCESSION OF THE KINGDOM OF TONGA 
 
Additional Questions and Replies  
 
 The following submission is being circulated at the request of the Delegation of the Kingdom 
of Tonga. 
 
_______________ WT/ACC/TON/11 
 Page i 
 
 
 TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................2  
- Investment Regime.............................................................................................................. ......3  
- State Ownership and Privatization .........................................................................................4  
- Pricing Policies ............................................................................................................... ...........5  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ......................................6  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................9  
- Trading Rights ................................................................................................................. .........9  
A. IMPORT REGULATIONS....................................................................................................10  
(c) Tariff quotas, tariff rate exemptions.....................................................................................10  
(d) Other duties and charges....................................................................................................... .10 
- Application of internal taxes to imports ...............................................................................13  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............14  
- Preshipment inspection ......................................................................................................... .14 
- Anti-dumping , countervailing duties, safeguard regimes ..................................................15  
B. EXPORT REGULATIONS ...................................................................................................15  
- Export subsidies ............................................................................................................... .......15  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................16  
- State-trading entities......................................................................................................... ......16  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................16  
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................19  
VII. TRANSPARENCY .................................................................................................................19  
VIII TRADE AGREEMENTS .......................................................................................................20  
ANNEX .......................................................................................................................... .......................21   WT/ACC/TON/11 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 There is no real description of Tonga's fiscal me asures, so the statement that they are reforming 
their tax system has no context.   
- Could we have a short listing of types of taxes applied, the their proportional 
importance as sources of government revenue? 
- Does the Government run a fiscal defi cit?  If so, how is it financed? 
Answer:
 
The implementation of new taxati on regime is set to commence from 1 April 2005.  Further, the 
composition of current tax revenue is anticipate cha nges over the next few years, with an increasing 
proportion of tax revenue coming from the introd uction of consumption tax (Tonga Consumption 
Tax, TCT) 
The components of total revenue with new ta xation reform start at 2004/05 are as follows: 
1. Taxes on Income and Profits 18.1% 
2. Taxes on Property and Others 0.5% 
3. Domestic Taxes on Goods & Services 22.7% 4. Taxes on International Trade & Transactions 57.9% 5. Other Taxes 0.5%  
 
The Government runs a fiscal deficit in the last financial year 2003/04.  Therefore, governments 
finance its fiscal deficit through the combination of  foreign concessional loans, domestic bond issues 
and a drawdown on the government’s cash reserves. 
Question 2 
Paragraph 10: Concerning the statement. The details and timing of the programme, which 
would have to be carefully planned to avoid any loss of revenue, would depend on the terms of 
Tonga's accession to the WTO.  Tonga has outlined  its new programme in the course of bilateral 
discussions and has not indicated that it in anyw ay depended on the outcome of negotiations.   
The new program should be described in this section. 
Answer:
 
The new tax policy plan is intended to improve the taxation system of Tonga and stimulate the 
development and fostering of business in an environm ent in which all taxpayers are treated fairly and 
equitably.  The fundamental feature of the proposals for new tax system includes: 
a) a small number of broad based taxes; 
b) fairness and equity across all sectors of the taxpayers base; c) transparency, clarity and simplicity of law; d) simple and cost effective administration ( both taxpayers and revenue administration); and 
e) a system suitable to the development of Tonga, and stable overtime. WT/ACC/TON/11 
Page 2  
 
 The tax proposals would enhance and maintain  political, economic and social stability, whilst 
maintaining the traditional values of Tonga, whic h are the strength of the community.     
The introduction of new taxation reform will comme nce on the 1 April 2005, with implementing of 
new consumption tax namely Tonga Consumption Ta x (TCT) in which the TCT will replace the sales 
tax, port and service tax and fuel sales tax. This th ree taxes will abolish when TCT come into effect 
on 1 April 2005. 
- Foreign Exchange and Payments 
Question 3 Paragraph 12:  In SPEC/TON/4 there was a refere nce to a repatriation requirement, which was 
not being monitored.  We observed that this ref erence was deleted in Rev.1, but it has now 
returned in brackets in Rev.2.   
- If this statement in still in brackets, it me ans that Tonga has refused to respond to the 
question.  As we have stated previously, if there is a repatriation requirement, whether currently monitored/enforced or not, we seek a description of the measure and information on how Tonga intends to eliminate it.   
- The statement is also at odds with informatio n in paragraph 13 that no restrictions exist. 
- Commitment language may be necessary. - We will not be able to finalize this section without this information.   
Answer:
 
Tonga would like to confirm that a repatriation requi rement is being monitored. However, for very 
important reasons. 
Prior to 5 July 2000 there were no repatriation re quirements in place. The repatriation requirements 
were put in place because the official foreign reser ves level of the country fell below 3 months of 
import cover starting May 2000 and the outlook was it w ould continue to decline. It fell as low as 
1.7 months of import cover (about three weeks in US terms) in May 2002.  
The comfortable level is regarded as 3 to 4 months  of import cover.  Tonga  being a very small open 
economy is highly dependent on imports  thus the importance of ensuring that its foreign reserves level 
is maintained at a comfortable safe level in order to protect the country from external sudden shocks 
to the economy such natural disaster – hurricane se asons and drought, other external factors such as 
SARS and war on terrorism.   
As such the Reserve Bank has closely monitored the movements of the country’s foreign reserves thus 
the imposition of repatriation requirements. The Reserve Bank’s prior approval requirement for 
transfers of TUS$50,000 (approximately USUS$25,000)  and above is for information gathering only. 
All current payments are allowed to be made.  
Tonga prefers to eliminate repatriation requireme nts and would consider removing the repatriation 
requirements once it is comfortable that the coun try’s official foreign reserves level would be 
maintained at the minimum of 3 to 4 months import cover in the long term.  WT/ACC/TON/11 
 Page 3 
 
 
 - Investment Regime 
Question 4 Paragraph 16:  This paragraph gives the number  of investment projects granted licenses in 
1998.   
- Please also provide this information for 1999 through 2003, or as far forward as 
possible; 
- For each year, please describe how many of these projects received the benefits 
described in Paragraph 14, and the value of those benefits. 
Answer:
 
Please refer to Annex  attached to this document for listing. Question 5 Paragraphs 17-18:  Several of the criteria for receiving benefits under the Industrial 
Development Incentives Act (IDI) appear to depend to  some extent on the use of local materials, 
import substitution or export performance. 
- Conditioning benefits on these criteria would not be consistent with the provisions of 
Article 3 of the Subsidies Agreement, and To nga should eliminate these criteria for 
granting benefits. 
- What is the current status of the incentives offered under the IDI Act?  
- The assurances and commitment language in  paragraph 21 are helpful in this regard, 
but we would like to see the specific legislation that will give them effect.  
Answer
 
The criteria granted by the IDI that is not consistent  with Article 3 (Prohibition) of the Subsidies and 
Countervailing Measures Agreement shall be eliminated  in April 2005 when the IDI Act is repealed. 
The current status of the incentives offered under ID I Act is outlined in Annex  to this document. 
Question 6 
Paragraph 20:  The Working Party report notes that the new Foreign Investment Act will 
become effective upon completion of the implementi ng regulations.  When will that be?  What is 
the relationship of the new FIA vis-à-vis  the amendments (discussed later) to the IDI?  
Answer:  
The Foreign Investment Regulation is currently un der further consultation by Government with all 
stakeholders from the private sector. It is anticip ated that the Regulation will be implemented by 
January 2005 when finall y passed by Parliament.  
A draft copy of the Foreign Investment Regulation is available through document 
WT/ACC/TON/11/Add.1. 
There is no direct connection between the two Ac ts. FIA is a registration mechanism for foreign 
investment while IDI Act is a fiscal  incentive package for investment. WT/ACC/TON/11 
Page 4  
 
 Question 7 
Paragraph 21:  To avoid confusion, we seek the following changes in the proposed commitment 
language.  We also ask Tonga to describe how the correcting Amendments would actually be 
enacted.  We recommend the followi ng amendments to the language: 
The representative of Tonga confirmed that since enactment no benefits 
granted under the Industrial Development Incentives Act had been or would be 
made contingent, in law or in fact, on export performance, import substitution 
or local content requirements.  Such criteria contained in the Industrial Development Incentives Act had not never been applied in practice, and that 
amendments to the Act would be ame nded  had been enacted to formally 
remove any of the criteria, e.g. (i) the processing of local resources; (ii) 
substantial contribution to local added value; (iv) export potential; and (v) 
import substitution that are inconsistent with WTO provisions, including the Agreement on Subsidies and Counterva iling Measures and the Agreement on 
Trade-Related Investment Measures.  These amendments would come into 
force as from the date of accession.  He  also confirmed that the new Foreign 
Investment Act [would] provided no such benefits.  The Working Party took note of these commitments. 
Answer:
 
Factual Correction on this paragraph; The Industrial Development Incentives Act main objec tive is to grant fiscal incentive to investments 
based on export performance, import substitution or local content requirement. Any inconformity 
under the IDI Act with any WTO rules will be amendment as from date of accession. [The 
amendment would include the repealing of the Act] 
- State Ownership and Privatization 
Question 8 
Paragraph 24: Could Tonga please provide a descript ion in the WP report text of what is meant 
by "corporatization", and "privatization", i.e., in terms of percentage of government equity holdings and  management of the enterprise.  Wh at is the goal of the privatization program that 
will run for about 10 years, e.g., how many state owned firms should be left, to what extent will 
the state still be ? 
Answer:
 
An entity is a Public Enterprise if it is a statutory board, company or other entity in which the 
Government holds a controlling interest. 
Corporatization is the formulation of a Governme nt owned entity, recognized legally as separate from 
government and adheres to the requirements of the Companies Act. 
Privatisation is the selling of government shares to the private sector. 
The Government will divest itself of companies pr oviding services that the privates sector can and is 
willing to provide. It will only maintain, or make new investments in, those companies that provide  WT/ACC/TON/11 
 Page 5 
 
 
 significant social and economic services which the private sector cannot reasonably provide (or for 
which the Government cannot control the pr ivate sector from obtaining monopoly profits). 
Question 9 
Paragraph 25:  We appreciate inclusion of this  paragraph which gives a more complete picture 
of state ownership, as well as the description of market share of enterprises with state 
participation in Table 1.  We suggest concl uding this paragraph with the following cross-
reference: 
 The extent to participation by the Govern ment of Tonga in and approximate market 
share of each of these enterprises is set forth in Table 1. 
Answer:  
The extent to participation by the Government of Tonga in and approximate market share of each of 
these enterprises is set forth in Table 1. 
- Pricing Policies 
Question 10 Paragraph 27: Tonga states that no state-owned enterprise traded in price controlled goods. 
- Please confirm that the Home Gas Comp any does not distribute any of the liquid 
petroleum mentioned in Table 2, e.g., in HS Code 2710. 
Answer:
 
Tonga confirm that Home Gas Company distribute one of the liquid petroleum mentioned in Table 2. 
Tonga suggest to reword relevant porti on of paragraph 27 to the following: 
‘None of these products, except for bread, were produced locally, and state -owned enterprises did not 
operate in the markets of price controlled goods . Prices for services were determined freely by market 
forces.’ 
Question 11 
Paragraphs 30-31: Have the am endments to the Price and Wage Control Act addressing the 
discriminatory price controls on imported agr icultural products and fish been enacted? 
Para 31:  We appreciate the commitment in pa ragraph 31 to apply price controls equally to 
domestic and imported agricultural and fish pr oducts, but we seek a commitment that clearly 
indicates the elimination  of the exemption from price contro ls for local products.  We suggest 
the following: 
A. In this regard, the Price a nd Wage Control Act 1998 would be 
amended to remove the exemption of  reference to local agricultural and 
fish products not subject to  from price control from the Mark-Up 
Schedule, and any price controls applied. . .  . WT/ACC/TON/11 
Page 6  
 
 Answer:
 
The enactment of the ‘discriminatory’ price cont rols on imported agricultural products and fish has 
been submitted to the Tonga Comp etent Authority, decision pending. Therefore, Tonga agrees to the 
suggested text as follows:  
In this regard, the Price and Wage Control Act 1998  1988  would be amended to remove the 
exemption of   reference to  local agricultural and fish products not subject to  from  price control from 
the Mark-Up Schedule, and any price controls app lied  to imports from date of accession would also 
be applied to similar domestically-produced articles  goods . Tonga would also publish the list of any 
goods and services subject to price controls in its Official Gazette. The Working Party took note of 
these commitments.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES Question 12 It would be useful to have a status report on  the outstanding legislation and implementing 
regulations that we are still expecting in term s of Tonga's compliance with WTO provisions.  
This should include the legislative fixes fo r non discriminatory price control policies for 
agricultural and fish products, the new Investme nt Law, the new Business Licensing Law and 
its regulations, new laws addressing excise taxes,  the TCT, the elimination of the Ports and 
Services Charges, the elimination of QRs on alcohol, tobacco and certain biscuits, the new 
Customs Law for customs valuation and rules of  origin, amendments to the IPR laws, and 
provisions for enhanced transparency and possibly right of appeal. 
Answer:
 
Status Report on Outstanding Legislation (August 2004) 
Name of Legislation Progress Status Report 
Amendments to ‘Mark-up 
Schedule of the Prices of Goods 
and Services and Wage Rate Act 
1988’ (for nondiscriminatory price control policies for 
agricultural and fish products) It is planned that amendments to rec tify inconsistencies with Article III of 
the GATT 1994, as from date of accession.  
Foreign Direct Investment Legislation & Regulation The Regulation is yet to be completed.  The Ministry has scheduled to 
meet the private sector committee  to confirm the Reserved/Restricted 
List, which are the most important part of the Regulations to determine 
the list- List of business activities to be reserved for the Tongan people.  
After confirming the list, the Regula tion will be submitted to the Crown 
Law as the normal procedure, then to  Cabinet/Privy Council for approval.  
According to comment from the Crown Law, it may take at least 5 - 6 
months to work on it before submitting to Cabinet.  It is anticipated that the Act plus regulation will be effective by January 2005. 
Business Licensing Regulation Drafting is ongoing. It is expected to be implemented by January 2005. 
Customs Excise (amendments) 
and Customs Legislation for 
Custom Valuation & Rules of Origin  Enacted in April 2004. 
Tongan Consumption Tax To be implemented by April 2005.  
Elimination of Ports & Services 
Tax To be implemented by April 2005. 
Elimination of Quantitative To be implemented by April 2005.  WT/ACC/TON/11 
 Page 7 
 
 
 Name of Legislation Progress Status Report 
Restrictions on alcohol, tobacco 
and cabin biscuits 
Amendments to the Intellectual Property and Company 
Registration Law Currently under final consideration and to be submitted to Law 
Committee. 
Provisions for enhanced transparency  and possibly right 
of appeal Discussions made. 
 
Question 13 
Paragraph 35-36: There is no reference in this sect ion to administrative appeals of decisions in 
the areas of customs, licensing, IPR, etc. covered by WTO provisions.   
- Please include description of how initial administrative decisions on WTO-related 
matters may be appealed to a higher administrative authority. 
Paragraph 36:  We appreciate the clarification of the appeals process to the Commissioner for 
Public Complaints. 
- Please describe the structure of this facility.  Is the Co mmissioner for Public Complaints 
a tribunal?  Please confirm and describe ho w it is independent of the executive and 
other state authorities from whose rulings it receives appeals 
- The missing information in this paragraph must be supplied. 
Answer:  
Tonga suggest the following wording in paragraph 36. 
Administrative decisions can be appealed under the C ourt of Appeal Act. This Act provides rights of 
appeal under Section 10(1) as follows: 
(i) An appeal shall lie in any course or matter other than criminal proceeding to the court of 
appeal from a charge of the Supreme Court or th e land courts (except in matters relating to the 
determination of hereditary estate and title) s itting in first instance in the following cases. 
a. from all final orders, judgments and decisions provided  that no appeal shall lie without lead of the   
judge of the first instant or of the court of appeal; 
(i) from an order, judgment of decision where the sum awarded does not exceed TOP 1,000 or 
(ii) from an order made by consent; or (iii) from an order as to cost. 
b. from all interlocutory orders, j udgments and decisions made in the course or any cause or matter,   
by leave of the first instance of the court of appeal 
He added that accor
ding to the [….] , in accordance to the section 11 of the Commissioner of Public 
Relations Act 2001, foreign and domest ic importers had the right to appeal any administrative action 
relating to matters subject to WTO provisions, e. g. customs classification and valuation, tariff 
application, licensing, TBT, SPS, and TRIPS to an independent body – the Commissioner of Public 
Complaints  Relations . Decisions made by the Commissioner could be appealed to the Supreme WT/ACC/TON/11 
Page 8  
 
 Court. He considered this situation to be in full conformity with relevant WTO obligations, including 
Article X:3(b) of the GATT 1994. 
The Commissioner of Public Relations Act 2001 describes the functions of the Commissioner. 
Section 11 sets out the main functions of the Commi ssioner of Public Relations and is as follows: 
 (1) It shall be a function of the Commissioner to investigate any decision or 
recommendation made, or any act done or omitted, whether before or after the passing of this 
Act, relating to a matter of administration and a ffecting any person or body of persons in his 
or its personal capacity, in or by any department  or organization to which this Act applies by 
any officer)including the Minister or Governor), employee, or member of any such Department or organization In his capacity as such officer, employee or member. 
 (2) The Commissioner may make any such inv estigation either on a complaint made to 
the Commissioner by any person or on his own motion; and where a complaint is made he may investigate any decision, recommendation, act, or omission to which subsection (1) relates, notwithstanding that the complaint ma y not appear to relate to that decision, 
recommendation, act, or omission. 
Question 14 Paragraph 37:  This paragraph reflects several brac keted options.  We continue to believe that 
the option containing the more detailed language we provided would give more clarity and certainty to investors, and seems to reflect ou r current understanding of Tonga's administrative 
and legal procedure. 
Answer:
 
Tonga is comfortable with the third option bracket as the wording for this paragraph. 
The representative of Tonga confirmed that from th e date of its accession, Tonga would establish or 
designate tribunals or procedures for the prompt re view of all administrative actions relating to the 
implementation of laws, regulati ons, judicial decisions and administrative rulings of general 
application referred to in Article X:I of the GATT 1994 and Article VI of the GATS.  The tribunals or 
procedures would also include actions relating to the implementation of national treatment, 
conformity assessment, the regulation, control, s upply or promotion of a service, including the grant 
or denial of a license to provide a service and othe r matters.  The tribunals or procedures responsible 
for such reviews would be impart ial and independent of the agency  entrusted with administrative 
enforcement and shall not have any substantial interest in the outcome of the matter.  The review 
procedure would include the opportunity for appeal, without penalty, by individuals and enterprises 
affected by any administrative action subject to re view.  If the initial right of appeal is to an 
administrative body, there should be the opportunity to choose to appeal the decision to a judicial 
body.  Notice of the decision on appeal should be given to the appellant and the reasons for such a 
decision provided in writing.  The Working Party took note of this commitment.   
Question 15 
Paragraph 40: We would appreciate a more detailed description of the process of ratification of 
the WTO accession package, e.g., who submits it  to the Privy Council for approval, does the 
King have an independent role in its approval?  WT/ACC/TON/11 
 Page 9 
 
 
 Answer:  
The process of ratification is simple. The Minister who officially oversee direct involvement with 
WTO Issues (Hon. Minister for Labour, Commerce & Industries) shall submit to Privy Council the Accession Package for ratification. The Privy C ouncil approves the Accession Package and it is 
official. 
Question 16 Paragraph 41:  We support the text in the first set of brackets.  We would appreciate 
information from Tonga on what aspects of this suggested commitment they cannot agree to 
and why, e.g., are there sub central entities that can make policy in areas governed by WTO?  
Does Tonga oppose a commitment to apply the WTO uniformly throughout its territory or in 
free trade zones? 
Answer:
 
Tonga is comfortable with the Member's support of th e first bracket as the main text for paragraph 41. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 
Question 17 
Paragraph 44:  Please provide an update on the status of implementation of the new Business 
Licenses Act and its implementing regulations.  We will need to see these, and the new fee 
structure, before finalizing this section of the report. 
- What is the status of the regulations  and when will the Act enter into force? 
- We look forward to receiving and reviewi ng the implementing regulations for the 
Business Licence Act that will bring Tonga's pr actice in this area into conformity with 
WTO provisions concerning the right to import and to export.  Why is that request in 
brackets in the draft WP report text .  The brackets should be removed. 
- When does Tonga estimate these regulations will be provided to the Working Party? - We remain interested in information on the enactment of the new law, e.g., the date of 
its implementation, its implementing regulations, and provisions finally worked out on 
fees for business licenses. 
Answer:
 
The new Business License Act 2002 has not been impl emented yet as the Regulation is currently in 
consultation with the Private Sector. A copy of th e draft Regulation for Business License Act 2002 is 
available through the document WT/ACC/TON/11/Add.1.  It is anticipated that the Regulation for 
Business License will be implemented by January  2005 hence, so as the new Business License Act 
2002. 
The new Fees as directed by the new Regulation fo r Business License Act 2002, is based only on the 
cost for services rendered (administrative process of  checking validity of ap plication and processing 
of application for a business). If all legal requireme nts are fulfilled, the license shall be granted 
instantly as directed by law.  WT/ACC/TON/11 
Page 10  
 
 The new (draft) set of fees will be levied once pe r year to any business/person planning to undertake 
any business in Tonga, if its wholesale, retail busin ess, business for exporting or importing. Once such 
one-off license is granted, that business/person shall conduct exporting or importing without any 
further application for new business license for a period of one year.  
Once the new Regulation for the new Business Licen se 2002 has been approved and implemented, a 
commitment shall be submitted on such new fee stru cture be in place by January 2005 or prior to 
accession, whichever comes first. 
A. IMPORT REGULATIONS 
- Tariff quotas, tariff rate exemptions Question 18 
Paragraph 55: Tonga states that tariff exemptio ns granted under the IDI will cease to have 
effect upon the introduction of Tonga's taxation reforms. 
Will these benefits be legally repealed?  If so, we would like to record it. 
Answer:
 
Tonga confirm that once the Tax Reform is in place, the IDI Act will be legally repealed.  - Other duties and charges Question 19 Paragraph 52 and Paragraph 57-60 It would be useful if this section began with a sentence listing each of the programs which Tonga 
considers to be a fee/charge for servic es rendered covered under this section. 
Certain inconsistent terminology makes this sect ion a bit confusing.  For example, please 
confirm that wharfage fees and wharfage dues a re synonymous, and use a consistent reference.  
Answer:
 
Tonga suggest the following wording to Paragraph 52 to lessen confusion and consistent referencing 
by using "Wharfage Fees" rather than "dues". 
It should therefore read as follows: 
The representative of Tonga considered the Port  and Services Tax to be Tonga’s only ODC, as 
wharfage dues  fees, berthfage fees and fees for issuance of import license were fees for services 
rendered. These fees and charges are exam ined in the relevant section below. 
Question 20 
Paragraph 58 sets forth Tonga's position with res pect to wharfage fees and berthage fees; there 
should be some description of these terms explai ning the difference.  The paragraph also makes 
reference to a number of other fees (i.e. slipway, mooring, tug hire and weighbridge fees).  This 
section should describe level each of these fees, the service rendered they are intended to cover, 
and how the amount of the fee is calculated.  WT/ACC/TON/11 
 Page 11 
 
 
 As we commented previously, information on the scope and nature of each of these fees, 
indicating how the amount of the fee is tied to the service provided should be included in this 
section or, preferably, in a table similar to table 3. 
Paragraph 60: If this commitment is intended to address fees discussed elsewhere in the report, 
we will need to have them noted in the commitment, perhaps by paragraph number. 
Answer  
The Wharfage Fees are the fees for services deliver ed by the Port’s Authority for handling incoming 
or outgoing cargo. The Berthfage Fees is charged on the bringing a big ship to berth (if required) and 
wharf space at which the ship docks. The exact pr actice and definition can be found in the ‘American 
Association for Port’s Authority’ (AAPA) webpage:  
http://www.aapa-ports.org/industryinfo/glossary.html   
1. Berthage Based Tariff The main elements of a berthage based tariff are: - the capacity of each vessel to carry cargo. Th is is recognized internationally as the gross 
tonnage, abbreviated to GT or GR T; 
- the time the vessels or ship occupies the berth.  The single largest establishment or expansion 
costs for any port is the construction of wharves a nd it is appropriate that  this pivot cost forms 
the base of performance measurement; 
- a rate calculated to recover operating cost s and the required return on investment. 
A berthage based tariff is designed to provide an e quitable incentive to shipping  companies to turn the 
ship around as quickly as possible, thus maximizing the use of the major asset of any port.  As the 
port charges reflect directly on a vessel's cargo car rying capacity or its earning capability, agreement 
between the stevedore and the shipping company should reflect the time cost element of the port 
charge.  The stevedore will be required to discharge and load the ship in the shortest time possible. 
Failure to do so will penalize the ship owner.  It should be noted that stevedoring, cargo delivery and 
receipt of exports is currently operated by private companies on contractual agreement. 
The revenue or income to be invoiced to the shi pping agent can be calculated within minutes of the 
vessel sailing by a simple formula: 
A vessel's gross tonnes  x  hours at the berth  x  rate. The rate or the amount levied can cover a wide ra nge of services applied assisting the ship to berth 
and sail safely.  The rate can therefore in one levy  cover the costs and required investment return on 
navigation aids, towage, pilotage, moori ng lines and the provision of the wharf. 
Please refer to Ports Authority (Overseas Vessels Tariff Fees) Standing Order 1999 that is available 
through the document WT/ACC/TON/11/Add.1.  
2. Berthage-Based Tariff Calculation All fees provided in the tariff are based on either hours at the berth (cruise ships) or hours of the 
vessel being worked at the berth. A period of gr ace has been provided of one half hour to commence 
work and complete. Thereafter a c oncession rate applies for each vessel should the ship owner wish to 
remain at the berth. WT/ACC/TON/11 
Page 12  
 
 Each tariff rate provides the following services fo r each vessel port call, light and harbour dues, 
pilotage and towage on arrival and sailing, mooring and disengagi ng lines on arrival and sailing, the 
tonnage (berthing fee) and wharfage, unless othe rwise provided for (i.e. all vessels carrying bulk 
petroleum products). Any additional moves requiring th e Pilot, tug or mooring lines is provided for in 
the tariff at the gross tonne per hour fee. 
In the case of General cargo and fishing vessels ( refe r section 4 of the Ports Au thority Tariff) the rate 
charged while vessel being worked at the wharf is US$0.080 per gross tonne hour. 
Following discharge a grace period of one half hour  has been allowed for th e ship to commence and 
complete work before the concession fee applies.   The concession fee provided in the tariff is 
US$0.0114 per gross tonne hour.  This applies only if the berth is not required by another vessel. 
If the berth is required by another vessel and the ship  berthed remains beyond the one half hour grace 
period then the full service fee applies. 
A minimum fee of US$1,600 for all vessels in exc ess of 500 gross tones and US$750 for those less 
than 500 gross tones is provided for in the tariff.   The concession provided above is excluded when 
determining the minimum fee. 
A maximum per call for vessel in excess of 500 tonn es berthing, but does not load or discharge cargo, 
per 24 hour period, and the berth is not re quired by another vessel to exchange cargo. 
3. Wharfage charges Where goods are discharged from or loaded into a v essel within the port, the Authority is entitled to 
collect wharfage. These goods wharfage earned from a commodity is applied at the average rate of 
US$4.30 per tonne weight or measurement to all products with the exception of bulk petroleum. 
Section 20 of the Ports Authority Tariff further detail charges on goods discharged from or loaded 
into a vessel. 
The wharfage on petroleum products such as gas and/or petrol is US$22 per 1,000 litres of bulk 
petroleum product discharged. 
In the case of Container cargo, the average revenue tonne per container is estimated at 25 tonne 
weight or measurement. So for easy calculation a nd invoicing, a fixed terminal fee of US$110 
(i.e. 25 tonne weight multiply by US$4.30) is applied on Twenty-foot equivalent unit, TED. 
Wharfage earned is purposely to cover costs of ma intaining the wharf, insurance policy and interest 
on loan for upgrading and the construction of wharf facilities. 
4. Mooring fees applied on Local registered vessel and Yachts For local registered vessels (passenger and cargo vessel , fishing vessels and pleasure craft) and Yachts 
are charged with a fixed rate of US$1.80 per GT  per month (effective on 18 July 2002). This US$1.80 
replaces the US$0.77 per GT per month or US$6.95 pe r GT per calendar year as appears in Section 23 
of the Miscellaneous Port Tariff. 
The revised mooring fees are to recover costs of  maintaining local wharves and other facilities.  WT/ACC/TON/11 
 Page 13 
 
 
 5. Slipway and Boat lifter 
For vessels either local or overseas who need to  use the slipway and the boat lifter for vessel 
maintenance may do so by contacting the Authority's Engineering Section. Separate charges for using 
the slipway and boat lifter are highlighted in Section 25 and 26 of the Tariff. 
6. Hire of Tug Boat and equipments. 
While the Tug Boat is purposely stand-by for the a rrival and departure of overseas vessels who call in 
at the international berth, it can also be hired on towage and rescue operati on. Separate charges for 
hire of tug boat and other equipments of the Port  are listed in Section 31 to 35 of the Tariff. The 
charges had been determined to cover the operatin g costs for performing of such activities and other 
fixed depreciation costs. 
- Application of internal taxes to imports Question 21 Paragraph 64: We would like to know the level of  the current threshold for firms, farms, and 
individuals exempted from the sales tax, and th e approximate percentage of Tonga's firms that 
are exempted.  Can it be confirmed that the sa les tax will be abolished from 1 April 2005?  Are 
exempted firms required to register (a) under the Li censes Act and (b) to get the tax exemption?  
Are firms that fail to register, whatever their size, legally liable to pay the tax? 
Answer:
 
The current threshold for firms, farms and i ndividuals exempted from sales tax is about 
US$1,000,000. However, there is no data that cu rrently available to approximate percentage of 
Tonga’s firms that exempted.  
Sales tax will be abolished on intr oduction of the new Consumption tax that been set for 1 April 2005.  
An exempted firm does not need to register under the Licenses Act to get the tax exemption. 
All customers/firms must pay sales tax except those exempted. 
Question 22 
Paragraph 65: Please report on the structure of the excise tax, and list the products to be 
covered by HS number.  At what point of sale will it be collected, for imported goods, and for 
domestic products?  Will it be ad valorem  or specific? 
Answer:  
Excise tax applied specific rate on products such as beer, alcohol, tobacco, petroleum, and motor 
vehicles. The excise tax on imported products will collect at import stages or the boarder and for the domestic products is collected at the point of sale.   
Question 23 Paragraph 66: Will firms seeking exemption from the TCT have to register?  Are firms that fail 
to register, no matter their size, require to pa y the TCT?  Will firms exempted from the TCT 
still be required to register under the Business Licenses Act to do business?   WT/ACC/TON/11 
Page 14  
 
 Paragraph 67 is duplicative and should be incorporated into paragraph 65. 
Answer:
 
Firms that have annual turnover of TOP 100,000 or mo re is compulsory to register on the TCT. All 
firms with annual turnover below the threshold of  TOP 100,000 could voluntarily register on TCT. 
Under the Consumption Tax Act Part III Registration 6 (6) cited a provision “A person who fails to 
apply for registration as required under this section sha ll be treated as registered from the beginning of 
the first Consumption Tax period after the person b ecame obliged to apply for registration or such 
later time as the Chief Commissioner may notify in writing. 
All firms exempted from TCT will still be required to register under the Business Licenses Act to 
legally operate business in Tonga. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 24 Paragraphs 73-76 describe Tonga's compreh ensive import licensing system.   
- We need specific information on the legislation that has changed the system.  Is it in 
force yet?  If not, when could we expect to have it in force? Can we have a copy of the 
legislation? 
- We also would like to be able to determ ine if this new system can be considered 
"automatic" under the terms of the WTO Impo rt Licensing Procedures Agreement, e.g., 
how long before customs clearance must a licen se be obtained; is approval granted in all 
cases if the legal requirements for importatio n are fulfilled, and are the licenses granted 
within a maximum of 10 working days? 
- Tonga should provide responses to the Im port Licensing Procedures Questionnaire 
based on this new system. 
Answer:
 
Please refer to answers provided in "Policies Affectin g Trade in Goods , Trading Rights" in page 7 for 
full information. 
- Preshipment inspection Question 25 Paragraph 90: We oppose the text in the second se t of brackets.  The provisions for appeals in 
the PSI Agreement is a point of departure for Members, as the other WTO Agreements commonly administered by PSI firms also have such provisions, including the GATT 1994, Customs Valuation, Import Licensing, etc.  whic h must be respected.  We wish to establish in 
the commitment that the responsibility of the Government of Tonga to provide the right of 
appeal is not curtailed when a PSI firm is engaged. 
Answer:
 
Tonga is comfortable with the use of the text in the first bracket and suggest to delete the second 
bracket.  WT/ACC/TON/11 
 Page 15 
 
 
 - Anti-dumping , countervailing duties, safeguard regimes 
Question 26 Paragraph 92: We support retaining the text in brackets.  As the legislation will not emerge 
until after Tonga is a member, it is required that it be notified to the Committee for review prior to using it. 
Answer:
 
Tonga agrees to leave the wording in the bracket as part to this paragraph. 
B. EXPORT REGULATIONS 
- Export subsidies Question 27 
Paragraph 117: We applaud Tonga's efforts to  apply the provisions of the SPS Agreement, and 
we want to see the new legislation on SPS. As soon as possible. 
Answer:
 
Tonga suggest to the delete the following words and add in as follows: 
117. In reply, the representative of Tonga no ted that three new Acts had been passed 
by the Legislative Assembly in 2002, na mely the Animal Dis eases Bill (Amendment) 
Act, the Agricultural Commodities Export Act,  and the Pesticides Act (2002).  FAO and 
South Pacific Commission consultants had assist ed in the drafting of this legislation, 
which should be in conformity with interna tional requirements.  Tonga did not yet have 
legislation making observation of the SPS Ag reement mandatory  Such legislation, 
together with regulations containing the administrative procedures necessary to 
administer the SPS Agreement, would come into force as from the date of Tonga's 
accession to the WTO.  The regulations would specify, for instance, the enquiry point, 
the authority responsible for making notifications to the WTO, the publication to be 
used for the publication of proposed measures,  the procedure to be used for taking 
comments into account, the Government body responsible for developing regulations, 
conducting risk assessments and control, as well as inspection and approval procedures. , 
and currently had no plans to do so.  Tonga had already nominated an enquiry point, being the Director, Ministry of Agriculture, Forestry and Food.  Tonga was willing to accept a Protocol commitment that if, in th e future, SPS regulations or standards and 
conformity assessment procedures were to be  introduced, Tonga would neither adopt 
nor implement these procedures until it had im plemented and notifie d appropriate laws 
in conformity with the Agreement on SPS.” 
Tonga had also send a Letter to WTO Secretariat (faxed 15/04/04) to be circulated among WTO 
members from the Director of Agri culture, Forestry and Food detailing him as the contact point and 
administrative logistics for SPS in Tonga. A co py of the Letter is available through  
WT/ACC/TON/11/Add.1. WT/ACC/TON/11 
Page 16  
 
 Question 28 
Paragraphs 118-120: There is no mention here of the transparency requirements, circulation to 
interested parties, notification, or prior public ation for comment, that are required for any 
technical regulation/mandatory requirement.  We wo uld appreciate inclusion of material on this 
point. 
We need copies of the legislation as soon as possible. Answer:
 
The concerns of transparency requirements, circulati on to interested parties, notification is dealt with 
by the Letter that is available through WT/ACC/TON/11/Add.1. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- State-trading entities 
Question 29 We had sought a more precise wording for th e commitment, to encompass a commitment on 
WTO application on state owned, as well as  state-trading enterprises, as follows: 
127.    The representative of Tonga confirmed that Tonga would apply its laws and 
regulations governing the trading activities of any State-owned enterprises and of 
state-owned or other enterprises with speci al or exclusive privileges and would act 
in full conformity with the provisions of the WTO Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that Article and Article VIII of the GATS.  Tonga would notify any enterprise falling within the scope of Article XVII.  The Working Party took note of these commitments. 
This is logical given the reference to paragraphs  24-26 in the preceding paragraph, and is not an 
expansion of Tonga's basic commitments. 
Answer:
 
Tonga is comfortable with precise wording that th is Member had sought and agrees to the suggestion 
for this paragraph as follows; 
127. The representative of Tonga confirmed that Tonga would apply its laws and 
regulations governing the trading activities of any State-owned enterprises  and of 
state-owned or  other enterprises with special or exclusive privileges and would act in 
full conformity with the provisions of the WTO Agreement, in particular Article XVII 
of the GATT 1994 and the Understanding on that Article and Article VIII of the GATS.  
Tonga would notify any enterprise falling w ithin the scope of Article XVII.  The 
Working Party took note of these commitments. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
Question 30 Paragraph 143:  We would appreciate an update  on Tonga's progress towards membership in 
the following treaties and conventions:  WT/ACC/TON/11 
 Page 17 
 
 
 - Patent Cooperation Treaty, the Madrid Protocol and Agreements, and the Hague 
Agreement. 
- What decisions have been made towards a decision on joining the Geneva Phonogram 
Convention and the WIPO Copyright Treaties? 
Answer:  
The Copyrights Conventions now the ‘Copyri ghts Act 2002’ has been enacted (awaiting 
implementation). A paper is currently prepared fo r Tonga to be a member of the WIPO Copyrights 
Treaty, WPPT and the Rome Conventions 1961 (for  the protections of Performers, Producers of 
Phonograms and Broadcasting Organizations)  
Question 31 
Paragraph 151: We do not understand this par agraph, or how it can be a commitment on 
Tonga's part.  We do not believe that Tonga is an LDC, and do not see the relevance of the 
reference to the Doha Declaration on TRIPS.  Please clarify. 
Answer:  
151. The representative of Tonga confirmed that the term s of its accession did not 
preclude access of Tonga to the benefits under the Doha Declaration on the TRIPS 
Agreement and Public Health (WT/MIN/(03)/S R/4).  [The Working Party took note of 
this commitment.]  
Tonga proposed for this whole paragraph to be deleted to lessen the confusion. 
Question 32 
Paragraph 157ff:  This section still requires info rmation on how Tonga pursues enforcement of 
intellectual property violations.  What criminal and civil penalties exist and who applies them?  
Does customs stop and seize goods with pirate d intellectual property?  Has anyone ever been 
prosecuted?  Tonga belongs to the Paris and Berne Conventions.  How does it enforce its 
obligations?   
Answer:  
Enforcement and Border Measure Bill is currently  drafted with provisions on measures to be 
conducted by the Customs and Trade Department as well as the Court. There is also a provision 
empowering the Minister to establish a cooperative body comprising of officials from Customs & Trade Dept., Police and Intellectual Property to con duct necessary tasks relating to the enforcement of 
IP Rights. 
Including in the section on ‘Border Measures by  Customs Department’ the Customs has been 
empowered to seize the goods either on requ est by right holders or on own initiative. 
With regards to penalties, Section 43(4) of the Industrial Property Act 1994 (already circulated to 
WTO WP members) states that infringements of ow ners’ rights is liable upon conviction to a fine of 
T5,000 or to imprisonment for a term of 5 years or to both. 
Please refer to a draft copy of the "Enforcement of Intellectual Property Rights including Border 
Measures." WT/ACC/TON/11 
Page 18  
 
 Question 33 
Paragraph 158: We will need to review all TRIPS le gislation prior to finalization of the report.  
Why are there brackets on this statement? 
Answer:
 
The status on the new IP legislations is as follows: 
Existing/New Legislation Progress Status Remark 
Amendments to IP Act 1994 Under Final consideration before submission to Crown 
Law/Law Reform Committee. 
Enforcement & Border Measures Bill (new) Under Fi nal consideration before submission to Crown 
Law/Law Reform Committee. 
Regulations for Geographical Indications Act Under Final consideration before submission to Crown 
Law/Law Reform Committee. 
Regulations for Layout-Designs Act Under Final consideration before submission to Crown 
Law/Law Reform Committee. 
Copyrights Act 2002 Enacted, ready for implementation 
Collective Management Regulations Under Consideration 
Plant Variety, Seed and Seedlings  Bill Currently drafted by UPOV 
 
Hence, Tonga proposes to remove bracket. 
Question 34 
Paragraph 160: We applaud Tonga's intent to  adhere to the TRIPS related treaties and 
conventions listed in this paragraph.  Why are there brackets on the statement? 
Answer:  
Tonga proposes to remove the bracket. 
Question 35 
Paragraph 161: We reserve on the transitional period pending sorting out the other issues in 
this section of the report. 
Answer:  
Tonga reconfirms its urgent need for a transiti onal period as outlined by this paragraph and this 
section and would appreciate assistance on this part. 
Question 36 
Paragraph 163: We do not understand the need fo r brackets.  We support the full text of the 
commitment. 
Answer  
Tonga agrees to remove the brackets.  WT/ACC/TON/11 
 Page 19 
 
 
 VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 37 Paragraph 165: The text  states "Tonga had no national qualification standards of its own, but 
applied those of other countries when necessary."  
- Please clarify "when necessary." (i.e. when is it necessary? Is there a system, or set of 
professions that do or do not require certain qualifications?)  
- Which country is used, that of the applicant?  Are U.S. qualifications recognized across 
the board? 
Answer:
 
Tonga had no qualification standards but accept a recognized qualification from any recognized 
foreign institution. There is no single country qualif ication that Tonga used to base its decision on and 
it can depend on the applicant’s country. 
Question 38 
Paragraph 171:   Please clarify what criteria or  requirements are used to determine whether an 
individual may become licensed.  
Answer:  
The current requirement is as follows: 1. Certificate from a recognized University  irrespective of country. 
2. Reference or Supporting Documents from former employer in the same business activity 
(optional). 
VII. TRANSPARENCY 
Question 39 
This section lacks any information on Tonga's current regime for transparency or any evidence 
that the transparency requirements of, inter alia , the GATT 1994 and Agreements on Customs 
Valuation, TRIPS, Import Licensing Procedures or SPS are implemented in law or practice.   
Last time, we asked Tonga to describe how the pr ovisions described in para 173 are sufficient to 
ensure that regulations, judicial decisions and ad ministrative rulings of general application are 
published in such a manner as to enable govern ments and traders to become acquainted with 
them as required by Article X of the GATT.  The current text simply notes that they can 
eventually be bought.  We also asked what step s has Tonga taken to assess its capacity to ensure 
that the other transparency measures requi red by the WTO Agreements, e.g., Customs 
Valuation, Import Licensing Procedures,  TBT, SPS, Services, are implemented? 
Tonga's unwillingness to address this through a commitment to the establishment of a single 
publication or website as described in paragr aph 172 puts in doubt its ability to meet WTO 
provisions as they stand. WT/ACC/TON/11 
Page 20  
 
 We are disappointed that Tonga is unwilling to  undertake the transparency commitment to 
provide for publication for comment prior to enactm ent of its laws and regulations.  We urge 
reconsideration. 
Answer:
 
Tonga wishes to reiterate and emphasize the commitments that it has put in paragraph 172 for 
transparency in all WTO trade related documents via a web site.  In addition, Tonga emphasize its 
limited capacity and technical expertise to undertak e such a project in a thorough manner, hence it 
commit to undertake this provided that technical assistance is provided.   
In paragraph 172, Tonga stated that "…Tonga in tended, where possible, to provide a reasonable 
period. e.g. no less than 15 days, for comment of  the appropriate authorities of Tonga before the 
regulations and other measures  pe rtaining …were implemented".  Tonga  wish to emphasize that it is 
willing to undertake the transparency commitment to  provide for publication /web site for comment 
prior to enactment.  
Question 40 
Paragraph 173: We reserve on this commitment.  It does not include reference to administrative 
rulings, as required by Article X of the GATT, a nd we do not have a statement by Tonga in the 
report dealing with this. 
Answer:  
Tonga welcomes suggestion of wording for this commitment for consideration. 
VIII TRADE AGREEMENTS 
Question 41 
Paragraph 180: This is not the standard  commitment.  It should be replaced. 
Answer:  
Tonga welcomes suggested wording for replacement in this paragraph.  
  WT/ACC/TON/11
 Page 21ANNEX   
LIST OF THE NUMBER OF INVESTMENT PROJECTS GRANTED WITH  DEVELOPMENT LICENCE FOR YEAR 1999 TO 2003 
1999 2000 2001 2002 2003 TOTAL 
1999-2003  
SECTOR No. of 
Project Project 
Cost No. of 
Project Project 
Cost No. of 
Project Project 
Cost No. of 
Project Project 
Cost No. of 
Project Project 
Cost NO. COST 
 
Manufacturing  
16  
 US$ 1,106,860   
20  
US$26,055,001  
20   
US$12,085,177  
10   
US$  4,324,348  
22   
US$    8,173,851   
88  
 US$  51,745,237  
Tourism 
Prime Facility  
23  
 US$ 4,647,097   
20   
US$  3,468,780  
23   
US$19,742,596  
7   
US$  3,504,845  
10   
US$    
3,130,440   
83  
 US$  
34,493,758  
 Engineering  
7  
 US$    246,400   
7   
US$     235,600  
          -    
5   
US$     656,450  
4  
 US$      
637,450   
23  
 US$    
1,775,900  
Commercial 
Farming  
8  
 US$ 7,978,485   
6   
US$     250,950  
7   
US$     663,800  
4   
US$     316,500  
5  
 US$      436,999   
30  
 US$    9,646,734  
Commercial 
Fishing  
8  
US$12,207,650   
6   
US$  3,958,858  
6   
US$  7,067,130  
3   
US$  7,438,000  
3   
US$    
4,913,500   
26  
 US$  
35,585,138  
 
TOTAL  
62  
US$26,186,492   
59   
US$33,969,189  
56   
US$39,558,703  
29   
US$16,240,143  
44   
US$  
17,292,240  
250  
 
US$133,246,767  
 
INCENTIVES GRANTED UNDER IDI ACT  
Manufacturing Sector includes assembli ng, processing, packaging industries 
Incentives granted : Two (2) y ears exemption from Custom Duty on imported Capital Equipment; 
   : Two (2) years 50% concessional rate on Port & Services Tax on imported capital equipment; 
   : Repatriation of Funds in the case of Foreign Investment 
: Five (5) years Tax holiday is only allowed for export orient ed project where more than 90 % of annual sales are exported; 
: Full exemption of Port & Services Tax on export oriented project where more than 90% of annual sale are exported. 
: Duty free vehicle as part of the capital equipm ent is subjected to 100% Port & Services Tax.  
 WT/ACC/TON/11 
Page 22 Tourism Prime Facilities & Back-Up Facilities Sectors includes hote ls, motels, guest house, apartments, caravans, cruising vess el, sporting activities and recreation and 
sightseeing facilities. 
Incentives granted : Two (2) years exemption from Customs Duty on imported Capital Equipment; 
   : Two (2) years 50% concessional rate on Port & Services Tax on imported Capital Equipment except for Hotel Facilities and C ruising Vessels 
    which is fully exempted; 
   : Repatriation of Funds in the case of Foreign Investment.    : Investment Criteria for Tax Holiday: 
    - TUS$500,000 – TUS$3,000,000  : Five (5) years Tax Holiday 
    - TUS$3,000,000 - TUS$5,000,000 : Ten (10) years Tax Holiday     - Over US$5,000,000   : Fifteen (15) years Tax Holiday 
   : Minibus/Van as part of the capital equipment is fully exem pted from Custom Duty but subjected only to full payment of Port  & Services Tax. 
Engineering service-oriented industries such as automobile re pair shops, blacksmith operators, boat repair facilities, electron ic and electrical appliances repair 
Incentives granted : Two (2) y ears exemption from Custom Duty on imported Capital Equipment; 
   : Two (2) years 50% concessional rate on Port & Services Tax on imported Capital Equipment; 
   : Duty free vehicle as part of the capital equi pment is subjected to 100% Port & Services Tax. 
Commercial Farming for Exports 
Incentives granted : Two (2) years Duty  Free importation of Capital Equipment; 
   : Two (2) years 50% concessional rate on Po rt & Services Tax on imported capital equipment. 
   : Vehicle (van/truck) is fully exempted from Customs Duty but subjected to full payment of Port & Services Tax. 
Commercial Fishing for Exports 
Incentives granted : Two (2) years Duty  Free importation of Capital Equipment; 
   : Two (2) years 50% concessional rate on Po rt & Services Tax on imported capital equipment. 
   : Vehicle (van/truck) is fully exempted from Custom Duty but subjected to full payment of Port & Services Tax. 
 
__________