RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VUT/8 
3 November 2010 
 (10-5841) 
Working Party on the 
Accession of Vanuatu  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF VANUATU  
TO THE WORLD TRADE ORGANIZATION 
  WT/ACC/SPEC/VUT/8 
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  TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................3  
- Monetary and Fiscal Policy..................................................................................................... .3 
- Foreign Exchange and Payments ............................................................................................3  
- Investment Regime.............................................................................................................. ......4  
- State Ownership, Privatization, and State Trading Entities.................................................5  
- Pricing Policies ............................................................................................................... ...........7  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ......................................8  
- Powers of Executive, Legislative and Judicial Branches of Government ............................8  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................10  
- Trading Rights ................................................................................................................. .......10  
A. IMPORT REGULATIONS....................................................................................................12  
- Ordinary cust oms duties ........................................................................................................ 12 
- Other duties and charges....................................................................................................... .13 
- Tariff rate quotas, tariff exemptions.....................................................................................13  
- Fees and charges for services rendered.................................................................................14  
- Application of internal taxes to imports ...............................................................................15  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............17  
- Customs valuation.............................................................................................................. .....19  
- Rules of origin ................................................................................................................ .........20  
- Other customs formalities ...................................................................................................... 21 
- Pre-shipment inspection ........................................................................................................ .21 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................21  
B. EXPORT REGULATION......................................................................................................22  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................22  
- Industrial policy, including subsidies....................................................................................22  
- Technical barriers to trade, standards and certification.....................................................23  
- Sanitary and phytosanitary measures...................................................................................24  
- Trade-related investment measures ......................................................................................28  
- Free zones, special economic areas........................................................................................28  
- Government procurement......................................................................................................29  
- Transit........................................................................................................................ ..............30  WT/ACC/SPEC/VUT/8 
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  -
 Agricultural policies.......................................................................................................... ......30  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................31  
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................34  
VII. TRANSPARENCY .................................................................................................................36  
- Publication of information on trade......................................................................................36  
- Notifications.................................................................................................................. ...........37  
VIII.  TRADE AGREEMENTS .......................................................................................................37  
CONCLUSIONS .................................................................................................................... ..............39  
ANNEX 1 ........................................................................................................................ ......................40  
ANNEX 2 ........................................................................................................................ ......................43  
APPENDIX....................................................................................................................... ....................58   WT/ACC/SPEC/VUT/8 
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  I. INTRODUCTION 
1. The Government of the Republic of Vanua tu applied for accession to the World Trade 
Organization in June 1995.  At its meeting on 11 July 1995, the General Council established 
a Working Party to examine the application of th e Government of Vanuatu to accede to the World 
Trade Organization under Article XII of the Marrake sh Agreement establishing the WTO.  The terms 
of reference and the membership of the Working Party are reproduced in document 
WT/ACC/VUT/3/Rev.5.   
2. The Working Party met on 3 July 1996 and 29 October 2001 under the Chairmanship of 
H.E. Mrs. S.B.A. Syahruddin (Indonesia).  In a ddition, the Working Party held several informal 
sessions between the formal meetings to clarify positions and work on the Draft Report of the Working Party.  As Vanuatu requested more time  to consider its terms of accession, the accession 
package was not forwarded to the Ministerial C onference at Doha.  During 2008 and 2009, Vanuatu 
signalled an interest in resuming the process.  The Draft Report of the Working Party was technically 
updated by the Secretariat and circulated to the en tire WTO Membership.  Under the authority of the 
Chairman of the General Council, the Secretaria t chaired an open-ended re-convened Working Party 
meeting on the Accession of Vanua tu on 30 November 2010.   
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as  a basis for its discussions, a Memorandum on 
the Foreign Trade Regime of Vanuatu, the ques tions submitted by Members on the foreign trade 
regime of Vanuatu, together with the replies theret o, and other information provided by the authorities 
of Vanuatu (documents WT/ACC/VUT/2; WT /ACC/VUT/4 and Add.1; WT/ACC/VUT/6; 
WT/ACC/VUT/7 and Addenda 1 to  2 and Add.1/Corr.1; WT/ACC/ VUT/9 and Addenda 1 to 6, 
WT/ACC/VUT/10 and WT/ACC/VUT/11).  Enacted laws and draft legislation relevant to Vanuatu's 
accession to the WTO have been enumer ated in documents WT/ACC/VUT/14 and 
WT/ACC/VUT/15.  Legislation submitted to the Working Party by Vanuatu during the accession process is listed in Annex 1.   
INTRODUCTORY STATEMENTS 
4. The representative of Vanuatu recalled that his country was a small least-developed country 
composed of a large number of islands located in th e centre of the Pacific Ocean.  Vanuatu had a total 
population of about 225,000 people liv ing on 68 of these islands, and a per capita  annual income of 
US$2,250 (in 2008).   Incomes in the capital, Port Vila, a nd its other main town, Luganville were WT/ACC/SPEC/VUT/8 
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  above average, especially in the expatriate comm unity.  Outside the urban centres, about 80 per cent 
of the population depended on the subsistence sector for their livelihood.   
5. The economy of Vanuatu was very fragile and the Commonwealth Secretariat had placed 
the country at the top of its vulnerability index.  It was exposed to frequent external and domestic 
shocks, including natural disasters such as cyclones.  Vanuatu was distant from its main markets, and 
exported a narrow range of goods, of which copra was the most important, followed by coconut oil, 
kava, beef/veal, and cocoa.  These items had accounted  for 68 per cent of Vanuatu's export earnings in 
2008.  Vanuatu's main export markets were the Eu ropean Union, Melanesia, New Caledonia, Japan, 
New Zealand and Australia.  Because the manufacturing sector was extremely small and Vanuatu imported most of its needs, expor t earnings covered only one sixth of the bill for imports.  On the 
other hand, the services account was positive, th anks mainly to receipts from tourism and 
transportation. 
6. Vanuatu had been watching the rapidly evolving global economic scene with much interest.  
The world economy was becoming increasingly globali zed and competition in trade and capital was 
increasing in intensity.  The Government wanted Vanuat u to be part of the global trading and financial 
system in order to share in the growth expect ed in the wake of the newly established world 
multilateral trading system.  Howeve r, he stressed that with the broad potential advantages offered by 
WTO Membership, Vanuatu had a keen interest in integrating its economy into the multilateral 
trading system.  He was conscious that integrati on into the multilateral trading system would require 
much work to restructure the economy and the dom estic policy framework to achieve policies and 
legislative structures consistent with the obligations  of the WTO.  However, a rule-based system had 
particular attractions to small countries such as Va nuatu, as it promised fair and equitable treatment 
for all Governments, big and small, strong and w eak.  Accordingly, Vanuatu expected to accede on 
terms appropriate to its status as a least-developed co untry and in particular to  be accorded the special 
and differential rights accorded to th ese countries in WTO Agreements.   
7. In their opening remarks, Members of the Work ing Party welcomed the request from Vanuatu 
to accede to the WTO.  Experience had shown that  the accession process, while sometimes complex, 
often served to guide the establishment of trade policies within well-tested paths that supported 
economic development and growth.  Members were  ready to provide experience and support to 
Vanuatu throughout the accession, and work construc tively with Vanuatu in establishing appropriate 
terms of accession in a timely manner.  Some Members pointed to Vanuatu's status as a least-developed country, and would take this in to account in determining the commitments and 
concessions that they would be seeking from Vanuatu.    WT/ACC/SPEC/VUT/8 
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  8. The Working Party reviewed the economic polici es and foreign trade regime of Vanuatu and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by Members of 
the Working Party on the various aspects of Vanua tu's foreign trade regime, and on the terms and 
conditions of Vanuatu's accession to the WTO are summarized below.   
II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 9. The representative of Vanuatu said that Vanuatu had a conservative approach to fiscal policy, 
with a somewhat narrow tax base.  Commitments  under the World Trade Organization would have 
a direct impact on the yield of indirect taxes.  Th e structure of the tax system had been reformed to 
ensure the revenue needs of the Government, while  promoting economic efficiency, domestic savings, 
risk taking and investment activities.   
10. Vanuatu levied no personal or corporate income  taxes, no estate or gift duties, and no capital 
gains taxes on residents or non-residents.  Taxes a pplied by Vanuatu included rent tax; contributions 
to the National Provident Fund; land taxes; municipa l taxes; stamp duties; fees, taxes and stamp duties 
on the registration of motor vehicles and issuance of dr iver's licence; taxes relating to the extraction of 
minerals; tax on logging licence; tax on licence for commercial fishing in Va nuatu's Economic Zone; 
business licence fees; hotel and licensed premises ta x; taxes on insurance; gambling taxes; building 
construction permit fees; navigation and port charges; work permit fees; residence permit fees; 
aviation charges; a departure tax (included in the price of air tickets); and - since 1 August 1998 - 
value added tax.  The tax system had not changed su bstantially since 2001.  On average, one third of 
government revenue was currently derived from value added tax, one  third from import duties and 
excise taxes, and one third from fees collected  on the various licenses described above.   
- Foreign Exchange and Payments 
11. The representative of Vanuatu said that Vanu atu had no foreign exchange controls.  
All inward and outward movements of capital were  unrestricted.  There were no restrictions on 
payments for invisibles, and exchange proceed s need not be surrendered.  No prescription 
requirements applied for payment of currency.  Th e Vanuatu authorities made no distinction between 
accounts of residents or non-residents; all accounts c ould be debited or credited freely.  Vanuatu had 
become a member of the IMF in 1981, and had formally accepted the obligations of Article VIII, 
Sections 2, 3 and 4 of the Articles of Agreement of the IMF as from 1 December 1982. 
12. The external value of the currency of Vanuatu - the vatu (VT) - was determined on the basis 
of a (trade and tourism) transactions-weighted b asket of currencies of Vanuatu's major trading WT/ACC/SPEC/VUT/8 
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  partners.  The Reserve Bank of Vanuatu traded fo reign exchange daily with commercial banks, the 
Government and the Vanuatu Commodities Marketing Board (VCMB).  No subsidies or taxes were 
levied on purchases or sales of foreign exchange.  In April 2010, US$1 bought approximately VT 95.    
- Investment Regime 
13. The representative of Vanuatu said that th e Foreign Investment Act No. 15 of 1998 
encouraged investment in Vanuatu.  However, th e Act prohibited investment in activities such as 
manufacture of nuclear weapons, chemical weapons, arms, and dumping or storage of nuclear waste 
and toxic chemicals.  It also excluded foreign na tionals from investing in small-scale businesses that 
could be carried out by Vanuatu nationals.   
14. The Foreign Investment (Amendment) Act No.1 of 1999 together with the Foreign 
Investment (Amendment) Act No. 5 of 2001 had further liberalised and rationalised foreign 
investment in Vanuatu.  The negative list of bus inesses reserved for ni-Vanuatu was much shorter 
than in the past (see Annex 2).  For instance, investments in hotel s and motels that used to be 
restricted to nationals had been opened up to fore ign investment if the investment was at least 
VT 10 million (US$100,000) or the annual turnover was at least VT 20 million (US$200,000).   
15. The 1999 Act and subsequent amendments had el iminated the discretion of the Government 
and decisions of the Vanuatu Investment Promoti on Authority were now based on objective criteria.  
The new Act also addressed important issues su ch as labour laws, immigration, and business 
legislation including land laws.  It streamlined inv estment procedures with regard to administrative 
duties, approvals, land disputes and industrial disputes.  Investors in some services sectors were, of 
course, also subject to measures regulating these individual sectors.  These measures are dealt with 
below in the section of this report on Policies Affecting Trade in Services.   
16. The issuance of work permits was regulated by the Labour (Work Permits) Act.  This 
included a reserved list of professions, subsequently modified by the Foreign Investment (Amendment) Act and comprising able seaman/ordin ary seaman; bricklayer; bus driver; clerical 
supervisor; dock worker; driver; hotel receptionist; housemaid; lorry and van driver; mason; painter; 
portable saw-miller; receptionist; street  vendor; typist and waitress/waiter.   
17. The Act was renamed in 2000 as the Vanuatu Fore ign Investment Promotion Act.  The Act 
had been amended in 2008 to detach the Vanuatu I nvestment Promotion Authority (VIPA) to become 
a statutory body.  In 2009, one item had been added to the reserved list (see Annex 2, item 4(l)).  
Overall, the investment regime had been form alized and liberalized since 2000.  The Vanuatu 
Investment Promotion Act set out the procedure to  invest in Vanuatu.  The Vanuatu Investment  WT/ACC/SPEC/VUT/8 
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  Promotion Authority received an application, in writing, including details of the investor(s), 
the proposed investment and its location, the type  of business licence required, the amount and source 
of capital expenditure to be incurred, the projected  return on the investment during the first three 
years, and the expected employment to be gene rated during the first three years of operation.  
The Board of the VIPA evaluated the application, and could require the investor to submit, where 
appropriate, an environmental impact assessment .  An approval certificate from the Board entitled 
the foreign investor named in the certificate to be issued with (i) residence and work permits for at 
least two key positions requiring pr ofessional, technical or manageri al expertise; (ii) a business 
licence (if the project required a business licence); (iii) a certificate to negotiate under section 6 of the Land Reform Act [CAP. 123]; (iv) a lease of land, if the project required land; and (v) an exemption 
from either value added tax or import duty, or both,  for the whole or part of the investment.   
18. The issuance of residence permits to forei gners was linked to investment in Vanuatu.  
An investment of VT 5 million (US$50,000) in cash  or other assets in Vanuatu entitled a foreigner to 
a one-year residence permit.  A higher initial investment, and an undertaking to maintain 
the investment at this level, ensured the indivi dual of a longer residence permit.  Maximum-length 
residence permits (15 years) were issued to fore igners having invested more than VT 100 million 
(US$1 million) in Vanuatu, subject to annual renewa l.  The initial fee for one year and subsequent 
annual renewal amounted to VT 20,000 (US$200).   
19. All land belonged to the indigenous populati on of Vanuatu.  Customary ownership was 
complicated, resulting in frequent disputes concer ning ownership and boundaries.  These disputes 
were settled by resorting to customary law.  Foreigne rs had the right to lease land.  Their rights were 
governed by the Land Lease Act [CAP. 163].  Once re gistered, a lease was governed by the laws of 
Vanuatu.  A Subsidiary Land Rent Payment of 2 to 4 per cent of gross annual turnover, paid to the 
custom landowners, applied to tourism leases.   
- State Ownership, Privatization, and State Trading Entities 
20. The representative of Vanuatu said that the Governme nt owned outright or had part interest in 
18 companies.  At the end of 2001, six companies - Air Vanuatu (Operations) Ltd, Vanuatu Internal 
Air Services Ltd, Vanuatu Livestock Development Ltd,  Airports Vanuatu Ltd, Vanuatu Post Ltd, and 
National Bank of Vanuatu - were wholly-owned, while the Government was majority owner of 
Metenesel Estates Ltd (99.41 per cent) and Vanuatu Abbatoirs Ltd. (85.4 per cent).  The Government 
held minority stakes in Ifira Wharf and Stevedorin g (1994) Ltd, Northern Islands Stevedoring Ltd, 
Telecom Vanuatu Ltd, Union Electrique du Vanuatu Ltd and Global Manufacturing and Trading Ltd, 
as well as in two companies scheduled for voluntar y liquidation (Ifira Wharf and Stevedoring Ltd and WT/ACC/SPEC/VUT/8 
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  Ifira General Services Ltd).  The Government al so had ownership interest in three companies - 
Bel-Mol Cattle Company Ltd, New Resources (Vanua tu) Ltd, and South Pacific Fishing Companies 
Ltd - which were either in receivership, liquidation or  dormant/struck-off.  In addition, five statutory 
bodies (National Housing Corporati on, Vanuatu Broadcasting and Te levision Corporation, Vanuatu 
Commodities Marketing Board, Vanuatu Financial Services Commission, and Asset Management 
Unit) operated in Vanuatu.  The Government of Va nuatu had embarked on a policy to privatize and 
corporatize four principal entities engaged in the supply of water, electricity, stevedoring, and 
television and broadcasting.  It had no immediat e plans to remove monopolies in the provision of 
water and electricity whereas in telecommunica tions, Telecom Vanuatu Limited's monopoly would 
not be extended beyond 31 December 2012.  In line with Government policy to strengthen the private 
sector, it had taken action to establish the Vanuatu Chamber of Commerce and Industry to act as 
a catalyst for private sector issues and reform.  The government stakes in wholly- and part-owned 
enterprises in 2010 are detailed in Table 1.
 
Table 1:  Government Business Enterprises (GBEs) in 2010  
Name of Company Percentage Government Ownership 
Commercial GBEs under the Companies Act  
Air Vanuatu (Operations) Ltd 100 
Airports Vanuatu Ltd 100 
Ifira Wharf and Stevedoring (1994) Ltd 49 
Metenesel Estates Ltd 99 
Northern Islands Stevedoring Ltd 100 
Sino-Van Fisheries Limited 49 
Vanuatu Abattoirs Ltd 33.94 
Vanuatu Livestock Development Ltd 100 
Vanuatu Post Ltd 100 
Commercial GBEs under their own Acts  
National Bank of Vanuatu 100 
Vanuatu Agriculture Development Bank 100 
National Housing Corporation 100 
Vanuatu Broadcasting and Television Corporation 100 
Non Commercial GBEs under their own Act  
Asset Management Unit 100 
Vanuatu Agriculture College 100 
Vanuatu Agriculture Research and Training Centre 100 
Vanuatu Commodities Marketing Board 100 
Vanuatu Financial Services Commission 100 
 
21. The representative of Vanuatu stated that of  the enterprises listed above only the Vanuatu 
Commodities Marketing Board had exclusive rights  relating to the import or export of goods.  
Vanuatu had provided information on State-trading enterprises in the format applicable to WTO Members, detailing the operations of the VCMB, in document WT/ACC/VUT/7, Annex III.  
The VCMB had been established in 1981 to buy, sel l and stabilize prices for copra, cocoa and kava.   WT/ACC/SPEC/VUT/8 
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  The VCMB had sole purchasing rights on copra and cocoa for export.  It had licensed 25 kava 
exporters and issued export licenses for kava against a fee of VT 30,000 (US$300).   
22. Until recently, all coffee produced by small-hol ders had been sold to the Tanna Coffee 
Development Company (TCDC), but the TCDC had been  privatized and all its exclusive rights and 
privileges revoked.  It was not a state trading enterprise.  Any company could now produce, export or import coffee to or from Vanuatu.  The representativ e of Vanuatu confirmed th at Vanuatu intended to 
notify the Vanuatu Commodity Marketing Board as a state-trading organization under Article XVII of 
the GATT 1994.  However, the VCMB was in the process of being wound up and liquidated.  
He reiterated that no other enterprises had exclusive rights and privileges.   
23. The representative of Vanuatu confirmed that Vanuatu would ensure that all State-owned, 
State-invested, and other enterprises with special or exclusive privileges would make purchases of 
goods and services, which were not intended for govern mental use, and sales in international trade, 
based solely on commercial considerations, e.g. pr ice, quality, marketability and availability, and that 
the enterprises of other WTO Members would have  an adequate opportunity in accordance with 
customary practice to compete for such purchases or sales.  In addition, Vanuatu would not influence, 
directly or indirectly, commercial decisions on the part of State-owned, State-invested, and 
other enterprises with special or exclusive privileg es, including on the quantity, value or country of 
origin of any goods purchased or sold, except in a manner consistent with the WTO Agreement.  
Vanuatu also would apply its laws and regulati ons governing the trading activities of State-owned 
enterprises and State-controlled enterprises and other enterprises with special or exclusive privileges 
and would act in full conformity with the prov isions of the WTO Agreements, in particular 
Article XVII of the GATT
 1994 and the Understanding on that arti cle and Article VIII of the GATS.  
He further confirmed that Vanuatu would notif y any enterprise falling within the scope of 
Article XVII.  The Working Party took note of these commitments.   
- Pricing Policies  
24. The representative of Vanuatu was asked whethe r basic utilities, such as electricity and 
telephone, which enjoyed monopolies could increase pr ices whenever they liked.  The representative 
of Vanuatu said that the balance between effici ent management of resources and costs to the 
consumer was delicate, and had not been examined car efully by the Government so far.  It recognized 
that reductions in costs could only occur with effec tive competition in the market.  However, this was 
frequently difficult to achieve in a country small in size and population.  He confirmed that Vanuatu 
did not maintain any system of price controls nor  did Vanuatu have legislation to effect it.   WT/ACC/SPEC/VUT/8 
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  25. The representative of Vanuatu stated that if pr ice controls were intr oduced in the future, 
Vanuatu would apply such measures in a WTO-consiste nt fashion, and take into account the interests 
of exporting WTO Members as provided for in Article III:9 of the GATT 1994.  Vanuatu 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 
- Powers of Executive, Legislative and Judicial Branches of Government 26. The representative of Vanuatu said that the Republic of Vanuatu was a parliamentary 
democracy which had obtained independence in 1980.  The national political structure, as provided in 
the Constitution, consisted of a legislative, an ex ecutive and a judiciary branch.  The legislature 
consisted of a single chamber with 52 members.  The electoral system provided for proportional 
representation.  The Executive consisted of the Prime Minister and the Council of Ministers and the Judiciary of a Chief Justice and three Judges.   The Government was advised on custom and 
tradition by the National Council of Chiefs.  The ma in Ministries responsible for the implementation 
of policies affecting trade were the Ministry of Trade, Industry and Investment; the Ministry of 
Finance and Economic Management; and the Ministry of Agriculture, Forestry and Fisheries.   
27. The representative of Vanuatu said that existi ng Vanuatu Law contained a standard common 
law right of judicial review.  The judicial system in Vanuatu required only the existence of just cause 
for review, and the judiciary would entertain reviews of administrative as well as ministerial decisions 
made in all such cases.  The new Customs Act (Section 103(3)), which had been gazetted in 
October 1999, provided the right of appeal against decisions of Customs.  Appeals against decisions of the Director of Customs could be made to the S upreme Court of Vanuatu with in 28 days of the date 
on which the appellant had been notified of the decisi on to be appealed against, or within any further 
period allowed by the Supreme Court.  The Supr eme Court could confirm, reverse or modify 
the decision appealed against, or refer the matter back  to the Director of Customs with directions to 
reconsider the whole or any specified part of the matter.  In relation to other legal instruments, 
Article 5(1)(k) of the Vanuatu Constitution pr ovided that equal treatment under the law or 
administrative action was a fundamental right, a nd a person whose rights had been infringed could 
apply to the Supreme Court to enforce that right.  Individual pieces of legislation also provided for 
the right of appeal, for example, the Business Lice nce Act allowed a decision not to issue, renew or 
transfer a business licence to be appealed to the Minister, and the Minister's decision could be appealed to the Supreme Court.  WT/ACC/SPEC/VUT/8 
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  28. The representative of Vanuatu confirmed that, fro m the date of its accession, its laws would 
give foreign and domestic importers and exporters the right to appeal administrative action relating to 
matters subject to WTO provisions to an independent body in full conformity with WTO obligations, 
including Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment.   
29. The representative of Vanuatu said the Govern ment had decided to establish six regional 
provinces in late 1994 with a view to accelerate and improve administration and other important 
processes in the provinces.  In consistency with  Vanuatu's laws, each respective province had 
autonomous power to enact by-laws and other admi nistrative matters pertaining to taxes and other 
business and commercial undertakings.  He noted th at under the Decentralization Act No. 1 of 1994, 
any potential tax, fee or levy raised by provincial governments required the approval of 
the Government through the Ministry of Home Affa irs, which would evaluate  its consistency with 
WTO provisions prior to allowing its implementation.   An overview of trade-related legislation 
introduced by Vanuatu to implement WTO re quirements is presented in Table 2.   
30. In response to a specific question from a Memb er, the representative of Vanuatu said that 
the Vanuatu Constitution required treaties to be rati fied.  Vanuatu had ratified several international 
agreements.  Ratification procedures involved the prepar ation of a short bill with the treaty attached to 
it in French language as well as in English.  Bills were subject to debate in Parliament prior to 
their passage.  An Act Bill passed by Parliament would subsequently be forwarded to the President 
for assent, and publication in the Official Gazette , which was mandatory, would be the final step 
before its entry into force.   
31. The representative of Vanuatu stated that if laws  or other acts of Vanuatu should be found to 
contradict international treaties or  agreements, the provisions of the international treaty or agreement, 
such as the WTO, would apply.  The representative of Vanuatu confirmed that sub-central entities had 
no autonomous authority over issues of subsidies,  taxation, trade policy or any other measures 
covered by WTO provisions.  He confirmed that the provisions of the WTO Agreement, including 
Vanuatu's Protocol, shall be applied uniformly thro ughout its customs territory and other territories 
under Vanuatu's control, including in regions enga ging in border trade or frontier traffic, special 
economic zones, and other areas where special regimes for tariffs, taxes and regulations are 
established.  He added that when apprised of a situation where WTO provisions were not being 
applied or were applied in a non-uniform mann er, central authorities would act to enforce 
WTO provisions without requiring affected parties to petition through the courts.  The Working Party 
took note of these commitments.   WT/ACC/SPEC/VUT/8 
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  IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  32. The representative of Vanuatu said the Business  Licence Act regulated the licensing of all 
business in Vanuatu.  The Act provided that, subject  to certain exemptions, no person, company or 
association could carry out a business without a li cence issued under the Act.  The Act had been 
amended.  Previously, any natural or legal person had required a licence to import for direct retail or 
wholesale trade, and one-year licenses were granted by the Minister of Finance upon application and 
against payment of an annual fee of VT 50,000 plus 2.5 per cent of the value of the transactions.  The fee structure had been changed and the ad valorem  element had been eliminated.  At present, 
a licence to engage in direct retail or wholesale trade was issued upon payment of a one-time fee of 
VT 10,000 (US$100).  No distinction was now made between the right to trade in domestic or 
imported products and the licence gave the right  to import goods originating in any country.  
The business licensing system was maintained for re venue purposes.  Licenses were normally issued 
within four weeks from the date of application.  Licenses would only be granted to ni-Vanuatu and 
resident natural or legal persons who had complie d with the requirements of the Business Licence 
Act, and - for non-citizens or non-resident foreign investors - with the requirements of the Foreign 
Investment Act of 1998.  Under the Import of Goods Control Act, the Minister of Trade could limit the type or quantity of goods to be imported by th e licence holder, but these provisions had never been 
used.  He confirmed that Vanuatu would review a nd amend these provisions in the context of a future 
review of the Imports of Goods Control Act,  as per Vanuatu's Legislative Action Plan.   
33. In reply to questions, Vanuatu said that it do es allow foreign and dom estic persons to import 
and export and that it had no registration or other requirements to engage in importing and exporting 
other than those described in the previous paragraph. 
34. A Member observed that no distinction is made  in Vanuatu Law between the right to import 
and the right to distribute goods in Vanuatu and that , if the availability of imported goods to Vanuatu 
distributors is limited through restrictions on who can  import, the protections of Articles III and XI of 
the GATT 1994 will be undermined.  This Member acco rdingly requested that alterations be made to 
Vanuatu legislation to remove  all such restrictions.   
35. In reply, the representative of Vanuatu said th at Schedule 1 of the Business Licence Act of 
1998, as amended, defined 11 classes of business licence and a number of sub-categories within 
those classes.  Articles 6, 7(1) and 8(1) of the Act provided for licences to be issued to foreign 
investors whereas Articles 7(2) and 8(2) provided fo r licenses to be issued to persons other than a 
foreign investor as long as the business did not involve an activity reserved for ni-Vanuatu citizens, or  WT/ACC/SPEC/VUT/8 
 Page 11 
 
 
  the activity was on the negative list.  Category D1 (Importers) and Category D2 (Retailer or 
Wholesaler) were relevant to importation and dist ribution.  A Category D1 licence covered direct 
importation for resale (without transformation), wholesale or retail including acting as agent in buying 
or selling of any merchandise to other businesses.  A Category D2 licence was required for businesses 
selling wholesale or retail merchandise of any descrip tion, excluding for open-air vendors and mobile 
shops, which were required to hold Category D5 licenses.  A retail or wholesale business holding 
a D1 licence was also required to  hold a D2 licence.  Thus, Vanuatu's legislation had separated the 
Act of Importation (D1) from the Act of Distri bution (D2).  Vanuatu had no special category of 
business licence for franchising, but its legislation di d not prohibit local or fo reign participation in 
franchising.   
36. Category D1 licenses were issued against a flat annual fee of VT 10,000 (US$100).  
The annual fee for D2 licenses depended on th e gross turnover of the business, ranging from 
minimum VT 20,000 (US$200) to a maximum of  VT 1 million (US$10,000).  An additional 
VT 100,000 (US$1,000) was levied on every non-citi zen principal or partner engaged in Category D2 
businesses.  Non-citizens and non-resident foreign i nvestors having received an approval certificate 
from the Vanuatu Investment Promotion Authorit y paid an additional annual fee of VT 100,000 
(US$1,000).  However, this fee was levied for the processing of the investment application, and was not related per se  to the issuance of the D2 licence.  Th e approval certificates were issued in a 
transparent and automatic manner in accordance wi th the Foreign Investment Act of 1998.   
37. Holders of Category B licenses (Manufacturing Industries and Trades) were allowed to 
import materials and supplies required in the manufacturing processes without purchasing a D1 licence as well.  These enterprises were also allowed to sell their output, wholesale or retail, 
without a D2 licence, but only through one outlet - at the business headquarters or adjacent premises.   
38. The representative of Vanuatu confirmed that no later than the date of accession, the Vanuatu 
authorities will issue upon request to any domestic or  foreign entity automatically, promptly and on 
terms and in a manner no less favourable than for other categories of business licence, a new category of business licence enabling holders to engage in the importation and exporta tion of goods without 
engaging in manufacturing or w holesale/retail (distribution).  In addition, category D1 and 
D2 licenses will be merged, creating a single licence category to allow licence holders for 
wholesale/retail (distribution) to engage in importa tion and exportation as well, thus ensuring that a 
retail or wholesale business will not be required to purchase two licenses in order to import or to 
export.  The limitation on national treatment crea ted by differential pricing for business licenses in 
some sectors will also be eliminated.  To ensu re these changes, the Busi ness Licence Act will be WT/ACC/SPEC/VUT/8 
Page 12  
 
  amended and gazetted accordingly for implementa tion no later than the date of accession.  The 
Working Party took note of these commitments.   
39. The representative of Vanuatu confirmed that from the date of accession, Vanuatu would 
ensure that its laws and regulations relating to th e right to trade in goods and all fees, charges and 
taxes levied on such rights would be in full c onformity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GA TT 1994 and that it would implement such laws and 
regulations in full conform ity with these obligations.  The Working Party took note of 
these commitments.  
A. IMPORT REGULATIONS 
- Ordinary customs duties  40. The representative of Vanuatu said that Vanuatu had adopted the Harmonised Commodity 
Description and Coding System (HS) in 1989, an d applied it with certain modifications as some 
subdivisions at the six-digit level had been regrou ped into the four-digit HS level.  Vanuatu had 
applied the six-digit level classification HS (96) as from 1 July 1998, with seventh and eight-digit 
levels reflecting national classifications.  Vanuatu had subsequently implemented the 2002 version of 
the Harmonized System in 2004, and had intr oduced a new Customs Tariff using the HS2007 
nomenclature from 1 January 2010.   
41. The representative of Vanuatu said that, like many other least developed countries, 
his Government was obliged to rely on the customs ta riff for a large part of its revenue and that this 
would continue to be the case in the foreseeable future despite all the Government's efforts to adopt 
a more modern tax structure.  At present, tari ffs alone accounted for approximately 30 per cent of 
Vanuatu's total government revenue, including grants.  While the tariffs also provided an incentive to 
local production, in practice only an extremely limited number of goods were actually produced in 
Vanuatu.  This made it clear that, with very few exceptions, the tariff had very little protective effect 
and did not act as a barrier to imports.  Most tariffs were ad valorem  rates.  Until the end of 2009, 
specific duty rates had been levied on edible oils  and cooking oils, beer, wines, spirits, tobacco 
products, hydrocarbon oils, paints and varnishes, pi gments, and soap.  According to the new Customs 
Tariff in force since 1 January 2010, ad valorem  duties were now applied on all items with one sole 
exception - motor spirit (HS 2710.1110), subject to a specific duty of VT 15 per litre.   
42. Requests for the examination of proposals for tariff protection were assessed by 
the Department of Industry.  For the manufacturing industry, practice would be to grant protection for 
a minimum of three years, to be reviewed annually thereafter.    WT/ACC/SPEC/VUT/8 
 Page 13 
 
 
  - Other duties and charges  
43. In answer to questions, the re presentative of Vanuatu said that the Import Duties Act of 1998 
had abolished a 5 per cent service tax levied on imports of most products, as of 1 July 1998.  
There was no stamp duty for imports.   
44. The representative of Vanuatu confirmed that, in th e past, the importation of rice, sugar, flour, 
tobacco products and canned mackerel had been  licensed by the Vanuatu Cooperative Federation 
against payment of 3 or 4 per cent commission on the c.i.f. value, in order to enable the Federation to repay its outstanding debts.  These requirements ha d been abolished and the Federation had ceased to 
operate commercially.  He confirmed that Vanuatu  currently applied no "other duty and charge" 
referred to in Article II:1(b) of the GATT 1994.   
45. The representative of Vanuatu stated that the a pplication of any "other duties and charges" 
other than normal customs duties and fees and char ges for services rendered would be in accordance 
with WTO provisions from the date of accession.  He further confirmed that Vanuatu has bound 
"other duties and charges" as defined in Article  II:1(b) of the GATT 1994 at zero in its Goods 
Schedule.  The Working Party took note of this commitment.   
- Tariff rate quotas, tariff exemptions 
46. The representative of Vanuatu said that goods imported for agriculture, horticulture, livestock 
or forestry could be exempted from import duty.  By joint decision, the Directors of Customs and 
Agriculture could also exempt from import duti es plant, machinery, materials and equipment 
(including purpose-designed vehicles), including sp are parts and accessories.  Provided the goods 
were intended exclusively for use in a development project approved by the Director of Agriculture, 
the exemption could also be extended to fuel oils for static machinery and vehicles engaged primarily 
in off-road applications.   
47. Schedule III of the Vanuatu Customs Tariff provided that import duty exemptions or 
reductions might be granted on goods which coul d be considered beneficial for the economic 
development of Vanuatu, including raw materials and equipment for manufacturing, goods destined 
for new tourism developments, finance or commercial sectors, mineral exploration, fisheries and inter-island shipping.  Goods imported for us e by diplomatic missions or other approved 
organizations, for example as donations, aid or disaster relief, were also admissible free of duty or tax 
by virtue of international c onventions or agreements.   WT/ACC/SPEC/VUT/8 
Page 14  
 
  48. A Member encouraged strongly the Government of Vanuatu to revise its Import Tax Law to 
limit, to the greatest extent possible, the use of im port tariff exemptions.  Rather than using a complex 
and potentially discriminatory tariff exemption sch eme, the Government of Vanuatu should give 
careful consideration to providing low bound tariff rates to import items which served as inputs for those enterprises for which the Government  would seek to encourage operations.   
49. The representative of Vanuatu replied that his G overnment had taken steps to lower tariffs on 
inputs used in the production process substantially but reiterated the importance of tariff revenues for 
his country.  The Vanuatu Customs Tariff, Schedule III, section 1 (Economic Reliefs), X.1 which regulated the import duty exemptions policy for goods imported for manufacturing or processing had 
been revised in 1998 to make the duty exemption po licy more transparent, and had reduced the scope 
for discretion.  Decisions were now based on objec tive criteria for evaluating the contribution that 
individual exemptions would make to the economic development of the country.  These criteria did 
not discriminate between products originating in different countries.  They included:  the quality of the product, the size of the investment in productiv e capacity, participation of ni-Vanuatu, the location 
of the business, workers employed, and training oppor tunities provided.  Decisions could be subject to 
judicial review.  Details of the system were provided to the Working Party.   
50. Applicants were required to complete the "V anuatu Duty Exemption Application Form" to 
obtain an import duty exemption.  The form could be obtained from the Department of Trade and Industry, Customs, Fisheries, Minerals and Touris m Departments.  Each r espective line department, 
e.g. tourism or minerals, considered the application which, if supported by the line department, would 
be forwarded to the Director of Customs for co nsideration by the Duty Exemptions Committee, 
comprising representatives of Finance, Customs and Trade.   
51. The representative of Vanuatu stated that upo n accession to the WTO, any tariff exemptions, 
including those under Section III of the Vanuatu Customs Tariff, would only be implemented in 
conformity with the relevant WTO provisions including Article I of the GATT 1994 and the 
TRIMs Agreement.  All exemptions, whether granted or declined would be notified by publication in 
the Government Gazette.  The Working Part y took note of this commitment.   
- Fees and charges for services rendered  
52. The representative of Vanuatu said that, as a resu lt of modifications in 1999, the only charge 
collected to cover the cost of the services re ndered was VT 750 (about US$7.50) per customs 
declaration.  He added that port and marine services were provided by the Ifira Wharf and 
Stevedoring Limited and the Northern Islands Stev edoring Limited on a purely commercial basis.   WT/ACC/SPEC/VUT/8 
 Page 15 
 
 
  These companies were not controlled by the Govern ment.  Details of the port handling charges are 
presented in Table 3.  There were separate charg es for exports and imports.  Vanuatu also charged 
fees for various services rendered in connection w ith importation and exportation of agricultural 
goods (issue of permits, inspection, fumigation, storag e, etc.).  He confirmed that Vanuatu did not 
impose any fees or charges for services rendered to imports or exports other than those listed in 
Table 3.   
53. The representative of Vanuatu stated that all fees and charges for services related to imports 
and exports would be operated in conformity with the provisions of the WTO Agreement, in 
particular Articles VIII and X of the GATT 1994.  The representative of Vanua tu also stated that, 
from the date of accession, Vanuatu would not appl y, introduce or reintroduce any fees and charges 
for services rendered that were applied to imports on an ad valorem  basis, or allow firms providing 
customs or port services on its behalf to apply such  fees or charges.  Information regarding the 
application and level of such fees and charges, reve nues collected and their use, would be provided to 
WTO Members on request.  The Working Party took note of these commitments.   
- Application of internal taxes to imports 
54. The representative of Vanuatu said, until 2002, do mestically-produced beer had been subject 
to an excise tax of VT 80 per litre, while no excise du ty had been levied on imported beer.  The tax on 
locally-made beer had been repealed in 2002 as a new system of excise duties had been introduced, 
taxing imported and domestically-pro duced goods equally.  At present, Vanuatu maintained excise 
taxes on alcoholic beverages, tobacco and tobacc o products, motor spirits and distillate fuels 
(Table 4).  Members noted that the tax applied to  alcoholic beverages was not uniform for types of 
beverages, particularly those based on distilled alc ohol.  They requested Vanuatu's efforts to ensure 
that imported distilled alcoholic beverages did not  experience discrimination based on the structure 
and application of Vanuatu's excise tax regime. 
55. In reply to Members, the representative of Va nuatu stated that the schedule of excise taxes 
would be amended to remove, upon accession, the discr imination between like or similar alcoholic 
beverages, including for the excise tax applied to:  Whiskies (HS2208.3010, HS2208.3020); Rum and 
other spirits obtained by distilling fermented sugarcane products (HS 2208.4010, HS2208.4020); Gin 
and Geneva (HS2208.5010, HS2208.5020); Vodka (HS2208.6010, HS2208.6020); Liqueurs and 
cordials (HS2208.7010, HS2208.7020); and, other spirituous beverages (HS2208.9010, 
HS2208.9020).  The Working Party took note of this commitment. WT/ACC/SPEC/VUT/8 
Page 16  
 
  Table 4:  Excise Taxes Levied by Vanuatu
 
HS Code Product description Excise tax 
2203.0000 Beer made from malt. VT 180/ltr 
22.04 Wine of fresh grapes, including fortified wines; grape must other than that of 
heading 20.09.  
2204.1000 Sparkling wine VT 200/ltr 
 Other wine; grape must with fermentation prevented or arrested by the 
addition of alcohol:  
2204.2100   - -  In containers holding 2 l or less VT 200/ltr 
2204.2900   - - Other VT 200/ltr 
2204.3000 Other grape must VT 200/ltr 
22.05 Vermouth and other wine of fresh grapes flavoured with plants or aromatic 
substances.  
2205.1000 In containers holding 2 l or less VT 200/ltr 
2205.9000 Other VT 200/ltr 
2206.0000 Other fermented beverages (for example, cider, perry, mead); mixtures of 
fermented beverages and mixtures of fermented beverages and non-
alcoholic beverages, not else where specified or included. VT 200/ltr 
22.07 
 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% 
volume or higher; ethyl alcohol and other spirits, denatured, of any strength.  
2207.1000 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% 
volume or higher VT 200/ltr 
2207.2000 Ethyl alcohol and other spirits, denatured, of any strength VT 200/ltr 
22.08 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% volume; spirits, liqueurs and other spirituous beverages.  
2208.1000 - Compound alcoholic preparations of a kind used for the manufacture of 
beverages VT 200/ltr 
2208.2000 Spirits obtained by distilling gr ape wine or grape marc VT 200/ltr 
 Whiskies:  
2208.3010   - - - Less than 37% by volume of alcohol VT 280/ltr 
2208.3020   - - - 37% by volume of alcohol or more VT 1,500/ltr 
 Rum and other spirits obtained by distilling fermented sugar-cane products  
2208.4010 - - - Less than 37% by volume of  alcohol VT 280/ltr 
2208.4020   - - - 37% by volume of alcohol or more VT 1,500/ltr 
 Gin and Geneva:  
2208.5010   - - - Less than 37% by volume of alcohol VT 280/ltr 
2208.5020   - - - 37% by volume of alcohol or more VT 1,500/ltr 
 Vodka:  
2208.6010   - - - Less than 37% by volume of alcohol VT 280/ltr 
2208.6020   - - - 37% by volume of alcohol or more VT 1,500/ltr 
 Liqueurs and cordials:  
2208.7010   - - - Less than 37% by volume of alcohol VT 280/ltr 
2208.7020   - - - 37% by volume of alcohol or more VT 1,500/ltr 
 Other :  
2208.9010   - - - Less than 37% by volume of alcohol VT 280/ltr 
2208.9020  - - - 37% by volume of alcohol or more  VT 1,500/ltr 
24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco 
substitutes.  
2402.1000 Cigars, cheroots and cigar illos, containing tob acco VT 18,000/kg 
2402.2000 Cigarettes containing tobacco VT 16/stick 
2402.9000 Other VT 16/stick 
24.03 
 Other manufactured tobacco and ma nufactured tobacco substitutes; 
"homogenised" or "reconstituted" to bacco; tobacco extracts and essences.  
2403.1000 Smoking tobacco, whether or not containing tobacco substitutes in any 
proportion: VT 4,000/kg  WT/ACC/SPEC/VUT/8 
 Page 17 
 
 
  HS Code Product description Excise tax 
 Other:  
2403.9100   - -  "Homogenised" or "reconstituted" tob acco VT 10,000/kg 
2403.9900 Other VT 10,000/kg 
27.10 Petroleum oils and oils obtained from bituminous minerals, other than crude; 
preparations not elsewhere specified or  included, containing by weight 70% 
or more of petroleum oils or of oils obtained from bituminous minerals, 
these oils being the basic constituents of the preparations; waste oils. 
Petroleum oils and oils obtained from bituminous minerals (other than 
crude) and preparations not elsewhere specified or included, containing by 
weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other 
than waste oils: 
  - -Light oils and preparations:  
2710.1110     - - -  Motor spirit (PMS) VT 20/ltr 
2710.1120    - - -  Aviation gasoline (AVGAS) VT 4/ltr 
2710.1130    - - -  Jet fuel and aviation kerosene (DPK) VT 4/ltr 
2710.1140    - - -  Other kerosine and (white spirit) VT 4/ltr 
2710.1150    - - -  Distillate fuels (ADO) VT 15/ltr 
 
56. The representative of Vanuatu stated that Vanuatu had introduced value added tax on 
1 August 1998, replacing a turnover tax.  VAT was levi ed at a single rate of 12.5 per cent.  The tax 
was trade neutral in full observa nce of the obligations under Articles I and III of the GATT 1994.  
Signatories of the Melanesian Spearhead Gr oup Trade Agreement were subject to VAT.  
He confirmed that no domestic produc ts were exempted from the VAT.  He also noted that certain 
imports were exempted from paying VAT.  Th ese included those products imported under duty 
exemptions to promote economic growth (as per paragraph 47 and paragra ph 49), products imported 
by international or diplomatic organisations, recognized charitable organizations, and products 
imported by recognized educational institutions, as set  out in Schedules I, II, and V of the Vanuatu 
Value Added Tax Act.  Expor ts were zero-rated.   
57. The representative of Vanuatu stated that fro m the date of accession Vanuatu would apply 
its domestic taxes in full compliance with the rele vant provisions of the WTO, including Articles I 
and III of the GATT 1994, in a non-discriminatory manner to imports from all WTO Members and to domestically-produced goods.  The Working Party took note of this commitment.   
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems  
58. The representative of Vanuatu said that prohibitions affected importation of obscene or 
indecent material, and narcotics and dangerous drugs .  The Ministry of Home Affairs authorized 
imports of firearms and ammunition, licenses being st rictly controlled for reasons of public security 
and safety.  The Ministry of Home Affairs also is sued automatic licenses for importation of liquor and 
spirits in order to monitor trade.  The marketi ng and sale of tobacco products was regulated pursuant 
to the Tobacco Control Act No. 19 of 2008.  Information on import licensing procedures according to WT/ACC/SPEC/VUT/8 
Page 18  
 
  the format applicable to WTO Members was provided to the Working Party in document 
WT/ACC/VUT/7, Annex I.  Non-tariff measures applied by Vanuatu prior to accession are 
enumerated in Table 5. 
Table 5:  Non-Tariff Measures Applied by Vanuatu Prior to Accession
 
Item HS 96 Classification Non- Tariff Measure Justification 
Screen printed T-shirts 
(with Vanuatu motif 
and embroidery) 61.09 Import licence - Ban Measure removed and 
replaced with tariff of 
VT 500 per unit or 70%, whichever is greater 
Firearms and 
ammunition 93.04-93.06 Import licence Article XX 
Liquor and spirits 22.08 Import licence - automatic Article XX 
Pornographic material N.A. Import ban Article XX(a) 
Narcotics N.A. Import ban/licence Article XX 
Rice 10.06 Subject to import licence 
issued by Vanuatu Cooperative Federation with 
commission of 3% to 4% Measure eliminated 
Flour 11.05-11.06 " " 
Sugar 17.01 " " 
Canned mackerel 16.04 " " 
Tobacco products 24.01-24.03 " " 
Plants and other 
products controlled by 
CITES N.A. Import licence from the 
Vanuatu Quarantine and 
Inspection Services Article XX 
 
59. Regarding right-hand drive (RHD) motor vehicles, the representative of Vanuatu stated that 
the Import of Motor Vehicles (Control) Act has pr ohibited the import of RHD motor vehicles since 
18 April 1994.  Vanuatu does not prohibit the use of RHD motor vehicles already in country when 
the ban went into effect and exemptions from the ban on importation can be obtained with an order 
from the Minister of Internal Affairs.  This pr ovision is used to exempt specialty RHD vehicles 
whenever necessary.   
60. The representative of Vanuatu said that under th e Import of Goods Control Act, the Minister 
of Trade could restrict or prohibit importation of goods into Vanuatu (or specified parts thereof) for 
the purpose of protecting and stimulating local indus try.  However, these provisions had been found to 
be of little practical value and had rarely been  used.  Once Vanuatu was a Member of WTO, 
the powers under this Act would be used only in stri ct conformity with WTO provisions.  As noted in 
Vanuatu's Legislative Action Plan, the Import of Goods Control Act would be amended to ensure 
compliance with WTO rules.    
61. In reply to specific questions, the representativ e of Vanuatu confirmed that, in the 1990s, 
importation of potatoes had been prohibited duri ng the harvest months (August-March), but that  WT/ACC/SPEC/VUT/8 
 Page 19 
 
 
  this seasonal restriction no longer applied.  It had been replaced with an equivalent tariff.  Import 
orders restricting importation of screen-printed T-sh irts with Vanuatu motif had also been abolished 
and replaced by equivalent tariffs.  As noted a bove under the heading "Other Duties and Charges", 
import orders restricting imports of rice, sugar,  flour, tobacco products and canned mackerel and 
associated non-automatic import licenses had also been  abolished and replaced by  tariff equivalents.  
Import requirements related to Sanitary and Phyto sanitary measures are dealt within the relevant 
section below. 
62. The representative of Vanuatu confirmed that Va nuatu would, from the date of accession, not 
introduce, re-introduce or apply quantitative restrict ions on imports, or other non-tariff measures such 
as licensing, quotas, prohibitions, bans and other restri ctions having equivalent effect that cannot be 
justified under the provisions of the WTO Agreement.   He further confirmed that the legal authority 
of the Government of Vanuatu to restrict or prohibit importation of goods into Vanuatu would be 
applied from the date of accession in conformity w ith the requirements of the WTO, in particular 
Articles XI, XII, XIII, XVIII, XIX, XX, and XXI of the GATT 1994, and the Agreements on Agriculture, the Application of Sanitary and Ph ytosanitary Measures, Import Licensing Procedures, 
Safeguards, and Technical Barriers to Trade.  Th e Working Party took note of these commitments.  
- Customs valuation 
63. Early in the accession process the representativ e of Vanuatu provide d information on 
implementation and administration of the Customs Valuation Agreement according to the format 
applicable to WTO Members in document WT/A CC/VUT/7, Annex II.  At that time, current 
regulations were contained in Schedule III of the Import Duties (Consolidation) Act [CAP. 91] which 
were based on the Brussels Definition of Value.   
64. Some Members stated that Vanuatu should ou tline plans to undertake a thoroughgoing needs 
assessment with regard to customs procedures, administration and practices, with a view to full implementation of the Customs Valuation Agreemen t.  Some Members said that Vanuatu should 
clarify whether it would intend to invoke the pr ovisions of the Customs Valuation Agreement 
providing special and differential treatment for devel oping countries, e.g., the transitions/reservations 
on computed value method, minimum values, reversal of sequential order, etc.   
65. In reply, the representative of Vanuatu said th at the Import Duties (Consolidation) (Customs 
Valuation Amendment) Act of 1999 had been p assed and had been gazetted in 2001 to bring 
Schedule III into conformity with the provisions  of the WTO Customs Valuation Agreement.  
Vanuatu had also introduced the ASYCUDA progr amme in 1999 with financial assistance from WT/ACC/SPEC/VUT/8 
Page 20  
 
  Australia and technical assistance from UNCTAD in order to facilitate the proper implementation of 
the customs valuation system.  Vanuatu Customs officers had participated in a number of training 
courses in 1999 and 2000 in order to be ready to implement the Import Duties (Consolidation) 
(Customs Valuation Amendment) Act of 1999.   
66. A Member expressed concern that Article 12 of the Agreement (transparency) was not 
covered in the legislation provided.  The represen tative of Vanuatu replied that other legislation 
provided for the transparency provision in Article 12.  Section 8 of the Acts of Parliament 
Act [CAP. 116)] provides that Acts must be published and section 13 of the Interpretation 
Act [CAP. 132] provides that subordinate legislati on must be published.  A Member expressed some 
additional minor technical concerns about the Im port Duties (Consolidation) (Customs Valuation 
Amendment) Act of 1999.  The representativ e of Vanuatu undertook to make the necessary 
amendments to the legislation to satisfy th ese concerns.  He noted that the Import Duties 
(Consolidation) (Customs Valuation Amendment) Act of 1999 included the relevant provision on the 
valuation of carrier media bearing so ftware for data processing equipment. 
67. The representative of Vanuatu confirmed that Vanuatu would, from the date of accession, 
fully apply the WTO provisions concerning customs valuation, including the Agreement on the 
Implementation of Article VII of the GATT 1994, as well as the provisions for the Valuation of 
Carrier Media Bearing Software for Data Processi ng Equipment (Decision 4.1) .  The Working Party 
took note of these commitments.   
- Rules of origin 
68. The representative of Vanuatu said that, collection of trade statistics apart, Vanuatu only used 
rules of origin in the Melanesian Spearh ead Group Trade Agreement (see section on Trade 
Agreements below).  These were ba sed upon a change in HS classification at the six-digit level.  
There was no conflict between these rules a nd the WTO Agreement on Rules of Origin, and 
the Department of Customs had the capacity to give  an advance ruling on origin should an exporter or 
importer desire it (Customs Act No. 15 of 1999, sec tion 31 – Declaration of Imports).  Requests for 
such assessments should be addressed to the Dire ctor, Department of Cu stoms and Inland Revenue, 
Ministry of Finance and Economic Management, w ho would provide an authoritative ruling within 
30 days.  Such assessments would remain valid for th ree years provided that the facts and conditions, 
including the rules of origin, under which they had been made remained comparable.  In answer to 
questions and comments, the delegation of Vanuatu ag ain stressed that rules of origin, particularly 
non-preferential rules of origin, played a very limited ro le in its trade policy.  It did not, for instance, 
have provision for the use of trade remedies, such as anti-dumping duties.    WT/ACC/SPEC/VUT/8 
 Page 21 
 
 
  69. The representative of Vanuatu stated that from the date of accession, Vanuatu's preferential 
and non-preferential rules of origin would comply fu lly with the WTO Agreement on Rules of Origin.  
The requirements of Article 2(h) and Annex II, paragraph 3(d) of the Agreement which require 
provision upon request of an assessment of the or igin of the import and outline the terms under which 
it will be provided,  would also be implemented prior to accession.  Vanuatu would abide by 
the relevant WTO provisions on transparency and th e provision of information about its rules of 
origin and their application.  The Workin g Party took note of these commitments.   
- Other customs formalities 
70. The representative of Vanuatu said that although Vanuatu was not a member of the World 
Customs Organization its systems and procedures rela ted to its other customs formalities were based 
on the Kyoto Convention on the Simplification and Ha rmonization of Customs Procedures.  He also 
added that Vanuatu did not require any form of au thentication or legalization of customs documents 
prior to customs clearance.   
- Preshipment inspection 
71. The representative of Vanuatu said that Vanuatu did not carry out preshipment inspection of 
imports and had no plans to do so.   
72. The representative of Vanuatu stated that if  preshipment inspection requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Preshipment Inspection.  Vanuatu would take full responsibility to ensure that such enterprises 
operating on its behalf complied with the provisions of WTO Agreements.  Decisions by such firms 
could be appealed by importers in the same way as administrative decisions taken by the Vanuatu 
Government.  The Working Party took note of these commitments.   
- Anti-dumping, countervailing duties, safeguard regimes 
73. The representative of Vanuatu said that Vanuatu  had no provisions in its legislation for anti-
dumping and countervailing measures or a competent authority to conduct investigations and apply 
such measures at present, and that there were no plan s to introduce such legislation.  His Government 
reserved the right to employ anti-dumping duties, countervailing duties and safeguard provisions in 
a manner consistent with its WTO obligations.  An y measures that would be introduced would be 
notified to the relevant WTO Committee.   
74. The representative of Vanuatu stated that Vanuatu would not a pply any anti-dumping, 
countervailing or safeguard measures until it had impl emented appropriate laws  in conformity with WT/ACC/SPEC/VUT/8 
Page 22  
 
  the provisions of the WTO Agreements on these matters.   Vanuatu would ensure the full conformity 
of any such legislation with the relevant WTO provisions, including Article VI and XIX of 
the GATT 1994 and the Agreement on the Implementati on of Article VI, the Agreement on Subsidies 
and Countervailing Measures and the Agreement on Safeguards.  After such legislation was 
implemented, Vanuatu would only apply any anti-dumping duti es, countervailing duties and 
safeguard measures in full conformity with the relevant WTO provisions.  The Working Party took 
note of these commitments.   
B. EXPORT REGULATION 
75. The representative of Vanuatu said that exporters of Vanuatu goods which they had not 
produced themselves on a commercial basis were exempted from business licenses.  In the past, 
exporters of kava needed to obtain an author ization from the Vanuatu Quarantine and Inspection 
Services at a cost of VT 30,000 (US$300) and were  also required to pay a facility fee of VT 80,000 
(US$800), payable in instalments, to the Vanuatu Quarantine Services.  Coffee was also subject to 
export licensing, revenue from which covered the co st of quality control.  Vanuatu had abolished 
taxes on exports of copra (4 per cent), kava (3 per cent), beef (2 per cent), and cocoa (7 per cent).  
Export taxes were still collected on logs (5 per cent plus VT 3,000 per cubic metre) and unworked 
seashells (30 per cent).  In early 2006, export duties of 30 per cent had also been introduced on pure-
bred breeding animals, other live bovine animals, or namental fish, and eels, but these taxes had been 
abolished later in the same year.  In the past, the export of logs had been banned for environmental 
reasons, but this was no longer the case.  The ma nufacturing sector was basically exempt from import 
duties and taxes on raw materials imported for manufacture, process and export under the Inward 
Processing Relief Standards.  The representative of Vanuatu said Vanuatu had no export subsidies.   
76. The representative of Vanuatu stated that, from the date of accession, Vanuatu would ensure 
that it applied its laws and regulations governing export measures and would act in conformity with 
the relevant provisions of the WTO, including Articles I and XI of the GATT 1994 and the Agreement on Subsidies and Countervailing Measures.  The Working Party took note of this 
commitment.   
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 77. The representative of Vanuatu said that self re liance, defined as meeting import requirements 
from foreign exchange earnings and fiscal requi rements from domestic revenues, was a long-term 
economic objective.  Some projects had been set up to encourage local manufacturing and especially  WT/ACC/SPEC/VUT/8 
 Page 23 
 
 
  small-scale industries, including high quality bags  and leather products, aluminium boats, beer and 
juice, some textiles and clothing items, coveri ngs, fibreglass products, quality furniture, quality 
preservative-free natural dairy produc ts, and coconut-based quality soap, cooking oil and hair lotion.   
78. At the beginning of 1997, the Government  had established an on-going Comprehensive 
Reform Programme, focusing on outward-looking re form of the private and public sector.  
Emphasis was put on competitive production of goods for export, assisted by a more open trade 
regime.  Industrial projects could be supported through special loans at  relatively low interest rates 
from commercial banks and special exemptions accord ed by the customs and tax authorities, but the 
Development Bank of Vanuatu, which had in the p ast provided low-interest loans for industrial 
projects, no longer existed.   
79. Asked to provide a draft subsidies notifica tion prior to the completion of the accession 
process, the representative of Vanuatu said that th e Department of Customs and Inland Revenue had 
estimated the total value of duty foregone in 2009 due to all duty exemptions to be roughly 
VT 3 billion (US$30 million).  This figure largel y consisted of exemptions on duties on imports 
related to aid projects and imports by internati onal agencies, as listed in Schedule 6 of Vanuatu's 
Diplomatic Immunities and Privileges Act. 
80. The representative of Vanuatu stated that his gove rnment did not grant any benefits to firms 
contingent upon export performance or local conten t of exports.  He added that, from the date of 
accession, Vanuatu would not apply any such prohibited s ubsidies.  Subsidy programmes would be 
administered in line with the Agreement on Su bsidies and Countervailing Measures and any such 
programmes would be notified to the Committe e on Subsidies and Countervailing Measures upon 
Vanuatu's accession to the WTO in accordance with Article 25 of th at Agreement.  The Working 
Party took note of this commitment.   
- Technical barriers to trade, standards and certification 
81. The representative of Vanuatu provided inform ation on technical barriers to trade in 
the format applicable to WTO Members (docum ent WT/ACC/VUT/6, Annex VIII).  The National 
Building Code required construction in the main town s to meet certain standards (necessary to protect 
life from cyclones and earthquakes).  This was administ ered by the city councils of Port Vila and 
Luganville.  Apart from these and some basic health st andards administered by the Ministry of Health, 
which in his view did not create any unnecessary obs tacles to international trade as required by 
the Agreement on Technical Barriers to Trade, Va nuatu maintained no technical regulations or WT/ACC/SPEC/VUT/8 
Page 24  
 
  standards.  As a least developed country, Vanuatu had no option but to leave most technical standards 
issues as a private contractual matter between buyer and seller.   
82. Vanuatu was not represented directly or through the South Pacific Forum at any international 
standards bodies, such as the ISO.  The Forum Econom ic Ministers Meeting held in Fiji in July 1998 
had mandated the undertaking of a study of whether trade facilitation measures in standards could be 
achieved through a regional facility.  Given the rapid changes presently occurring with regard to 
standards and their regulation globally, Vanuatu expect ed to take a more active role in this area in 
future.  Vanuatu had established an enquiry point,  as required by Article 10 of the TBT Agreement, 
within the Department of Trade, Industry a nd Investment (documents WT/ACC/VUT/9/Add.5 and 
WT/ACC/VUT/10).  The Director of the Departme nt would fulfil all WTO's TBT notification and 
enquiry point obligations.  The enquiry point was fully functioning.  The contact details were as 
follows:   
  The Office of the Director of Trade 
  Department of Trade, Industry and Investment   Ministry of Trade and Business Development 
  Private Mail Bag 9030 
  Port Vila    Vanuatu    Telephone: +678 22770 
  Fax:  +678 25640 
  Email:  vanuatutrade@vanuatu.gov.vu  
83. The representative of Vanuatu stated that Va nuatu would apply the Agreement on Technical 
Barriers to Trade from the date of its accession wit hout any transitional period.  If, in the future, 
technical regulations or standards and conform ity assessment procedures were to be introduced, 
Vanuatu would notify appropriate le gislation in conformity with the Agreement on Technical Barriers 
to Trade.  Any standards, technical regulations, and conformity assessment procedures adopted would 
be developed and applied in conformity with the provisions of the Agreement, including publication 
prior to implementation to allow interested par ties the opportunity for review and comment as 
provided for in the Agreement.  Existing or ne w measures would be applied on a non-discriminatory 
basis, i.e. providing for national treatment and MFN treatment to all imports.   The Working Party took 
note of these commitments.   
- Sanitary and phytosanitary measures 
84. The representative of Vanuatu said that Vanuatu ha d a very favourable pest status.  This was 
one of the very few benefits of its isolation in the South Pacific and was a valuable national asset to be 
measured, utilized and preserved.  Its sanitary a nd phytosanitary (SPS) measures had to reflect this  WT/ACC/SPEC/VUT/8 
 Page 25 
 
 
  need.  The legislative basis for Vanuatu's sanitary and phytosanitary measures consisted of the Animal 
Importation and Quarantine Act of 1988, and regu lations in Order No. 14 of 1994; the Plant 
Protection Act No. 14 of 1997, and the Imports Spec ification (Plants) Manual; and the Food Control 
Act No. 21 of 1993 gazetted in July 1999.  Copies  of these were provided to the Working Party, 
together with other documentation illustr ating how these were implemented.   
85. The representative of Vanuatu said that the Va nuatu Quarantine and Inspection Services were 
responsible for implementing SPS prov isions on animals and plants, wh ile the Department of Health 
had responsibility for food control.  Vanuatu's SPS  measures were transparent.  The SPS enquiry 
point had been established.  The task had been en trusted to the Director of the Vanuatu Quarantine 
and Inspection Services, who would also be r esponsible for making notifications to WTO and 
ensuring that the transparency obligations of the SPS Agreement would be met.   
86. Under the Animal Importation Act and the Plant Protection Act, listed items posing 
a negligible risk could be imported without a perm it.  Imports of other items coming under the Acts 
were subject to a permit, issued once the safety of the product has been determined.  This was 
common practice internationally and particularly necessary in Vanuatu which was largely disease and 
pest free.  It was, to give one example, recognized  by the Office International des Epizooties (OIE) as 
being free of all list A OIE diseases.   
87. All imported animals were examined at th e point of entry by a veterinarian from 
the Department of Livestock.  Animal products , plants and plant products were examined by 
a member of the Quarantine and Inspection Services.  Reports from the OIE detailed the health status 
for determining source country risk, and Vanuatu would not accept animals from countries without 
a health status report.  Vanuatu would not accept plan t products if the risk anal ysis demonstrated that 
they represented a risk.  At the request of importers , protocols were developed with other countries for 
the importation of animals and an imal products as well as plant and plant products when the pests 
concerned was of particular concern to Vanuatu.  These set out the steps to be taken in the exporting 
country to eliminate the risk.  Vanuatu would nor mally not develop protocols with countries having 
endemic OIE List A diseases as Vanuatu had no high -security quarantine facilities to handle imports 
from countries with serious animal diseases. 
88. The Food (Control) Act restricted businesses a nd persons from displayi ng, storing or selling 
food unfit for human consumption.  These provisi ons were enforced through municipal health 
standards. WT/ACC/SPEC/VUT/8 
Page 26  
 
  89. Within the limits of its resources as a l east developed country, Vanuatu took part in 
the relevant international organizations.  On the an imal side, Vanuatu was an active member of OIE, 
for instance, by sending monthly reports to OIE on  its disease status, having joined the organization 
in 1983.  Vanuatu had been a member of the C odex Alimentarius Commission since 1995.  Vanuatu 
was also a member of the newly formed Pacific Plant Protection Organization (PPPO), and had been a contracting party to the International Plant Pr otection Convention (IPPC) since 2 August 2007.   
90. Vanuatu's SPS measures were based only upon sci entific evidence of potential risk and had 
no other foundation.  Whenever possible, Vanua tu based its national measures on international 
standards, guidelines, or recommendations.  It fo llowed OIE guidelines for all list A and B diseases 
and the code of practice contained in the Imports  Specification (Plants) Manual conformed to IPPC 
standards, which cover the main products.  In practice, it followed Codex food standards.   
91. Assistance in setting regulations was also obtained from the South Pacific Communities 
(SPC), as well as the relevant services of Australia and New Zealand.  The SPC provided scientific advice and technical assistance and training to its members.  The Plant Protection Unit of the SPC had established a list of prohibitions applying across the Pacific island countries producing similar crops 
in comparable climate and environment.  The list was provided to the Working Party (document 
WT/ACC/VUT/7, Annex IV).   
92. Vanuatu had the capability of doing risk assessment s for itself.  Being a small least developed 
country, it frequently based these on risk assessment s made by other countries where conditions were 
similar to its own.  It understood that developed countries sometimes did the same.  The countries in 
its region considered that there was need for co- operation on this matter.  To this end, studies had 
been commissioned by the Secretariats of the South Pacific Forum and the Pacific Communities on 
possible means to develop a regional capacity.   
93. Vanuatu was making other efforts to improve its  current measures.  It was, for instance, 
developing guidelines based on scientific principles to formulate procedures for safe importation of 
plants and plant products with the assistance of Ne w Zealand.  In future, principles to be applied 
included area of freedom, treatment (heat treatme nt) and tissue cultured materials, which should 
eliminate the risk of introduction of new pests.  It was also drafting an import specification manual 
based on scientific information to further improve c onformity with IPPC standards.  In response to 
a comment by a Member, he added that Vanuatu had made all efforts possible to improve its current 
sanitary and phytosanitary measures.  Vanuatu ha d become a party to the International Plant 
Protection Convention (IPPC) in 2007, and had deve loped import guidelines and specific protocols 
for certain animals, animal products, plants and plant products.  The specific protocols had been  WT/ACC/SPEC/VUT/8 
 Page 27 
 
 
  formulated after conducting import risk analyses on these quarantine articles.  The import guidelines 
were based on scientific principles as required by  IPPC and OIE.  Further, in 2009 Vanuatu had 
certified and registered its first post entry quara ntine (PEQ) facility, thus making it possible for 
importation of certain live plants into the country.   
94. The representative of Vanuatu said that Vanua tu's SPS enquiry point had been formally 
established on 26 February 2001 (documents  WT/ACC/VUT/9/Add.5 and WT/ACC/VUT/10) and 
was fully operational.  The contact details were as follows: 
Office of the Director, Vanuatu Quarantine and Inspection Services 
Vanuatu Quarantine and Inspection Services  
Private Mail Bag 9095 
Port Vila   Telephone: +678 23130/23519 Fax:  +678 23185/24653 email:  vqisvila@vanuatu.com.vu 
95. In order to ensure that the SPS Agreement was effectively implemented as from the date of 
Vanuatu's accession, procedures provided that (i) information on proposed SPS measures which might 
have a significant effect on trade were publishe d and notified to WTO, copies of the proposed 
regulations were provided to other WTO Member s on request, a reasonable time was allowed for 
Members to comment and for these comments to be taken into account, but that urgent matters of 
health were dealt with; (ii) SPS measures were b ased on scientific evidence; (iii) SPS measures were 
based on international standards, guidelines and recommendations, unless a higher level of protection 
is determined; (iv) SPS measures of other countri es were accepted as equivalent if these measures 
achieved the level of protection appropriate  to Vanuatu; (v) SPS measures were based on 
an assessment of the risks to human, animal or pl ant life or health; (vi) SPS measures take into 
account the regional characteristics both of the areas from which imported products originate and 
the areas for which they are destined; (vii) SPS  measures do not arbitrarily or unjustifiably 
discriminate between different WTO Members or  between domestic and foreign suppliers; and 
(viii) that relevant control, inspection and appr oval procedures comply with the provisions of the 
SPS Agreement. 
96. The representative of Vanuatu stated th at Vanuatu would apply the Agreement on 
the Application of Sanitary and Phytosanitary  Measures from the date of its accession without 
any transitional period.  Vanuatu administered its  existing requirements on imports for sanitary and 
phytosanitary purposes based on principles of pest ri sk analysis and the international standards of 
Codex Alimentarius, IPPC, FAO and OIE, and th ese existing requirements would be notified to WT/ACC/SPEC/VUT/8 
Page 28  
 
  the WTO Committee on Sanitary and Phytosanita ry Measures upon accession.  Any SPS measures, 
and control, inspection and approval procedures adopted after accession would be developed and 
applied in conformity with the provisions of  the Agreement, including publication prior to 
implementation to allow interested parties the opport unity for review and comment as provided for in 
the Agreement.  Vanuatu would review its existi ng requirements in light of its obligations under 
the Agreement.  Existing or new measures woul d be applied on a non-discriminatory basis, 
i.e., providing for national treatment and MFN treat ment to all imports from similar conditions.  
The Working Party took no te of these commitments. 
- Trade-related investment measures 
97. The representative of Vanuatu said that Vanuatu applied no trade-related investment measures 
proscribed under the GATT 1994.  Import duty relief for industries was not linked in any way to local content requirements.   
98. The representative of Vanuatu said that Vanuatu would not maintain any measures 
inconsistent with the TRIMs Ag reement and would apply the TRIMs Agreement from the date of 
accession without recourse to any transitional period.  The Working Party took note of this commitment.   
- Free zones, special economic areas 
99. The representative of Vanuatu said that the Government's Council of Ministers had approved 
the establishment of free industrial zones on several  islands, including Santo, Efate, Malekula and 
Tanna in September 1993.  UNIDO had completed a feasibility study of the project, but further study 
would be required to determine whether the project was viable.  Plans to establish a free trade zone on 
Santo Island had also been discussed.  However, no free zones had been established to date.   
100. The representative of Vanuatu said that any free zones or special economic areas which it 
established would be fully subject to the coverage of  its commitments in its Protocol of Accession to 
the WTO Agreement and that Vanuatu would ensu re enforcement of its WTO obligations in 
those zones or areas.  In add ition, goods produced in any such zones or areas under tax and tariff 
provisions that exempt imports and imported inputs fr om tariffs and certain taxes would be subject to 
normal customs formalities when entering the rest of  Vanuatu, including the application of tariffs and 
taxes.  The Working Party took note of these commitments.    WT/ACC/SPEC/VUT/8 
 Page 29 
 
 
  - Government procurement 
101. The representative of Vanuatu said Vanuatu pr actised open tendering and competitive bidding 
in the context of a small island economy.  The Fi nancial Regulations of the Republic of Vanuatu 
(Chapter 22, Regulations 361, 364, 365 a nd 368) provided the guidelines for government 
procurement.  A Central Tender Board in the Depa rtment of Finance evaluated tenders and awarded 
contracts.  The Central Tender Board comprised the Director of Finance or his representative, the director of the department procuring the goods or services, and a representative of the Ministry responsible for the department proc uring the goods or services.  All written contracts worth more than 
VT 3 million (US$30,000) required approval by the Atto rney General before the contract was signed.  
A minimum of three written tende rs were required for specific works or services exceeding 
VT 1 million (US$10,000).  Notice of invitation to tender was given at least two weeks before the closing date, normally by advertisement in the nati onal press.  The Financial Regulations contained no 
dispute settlement provisions; aggrieved individuals or companies could resort to the judicial system.   
102. The guidelines stipulated that for works or services worth VT 50,000 (US$500) to 
VT 1 million (US$10,000) at least three written quota tions should be obtained wherever possible, and 
the procurement order should be placed by the Accounting Office (normally the director of the department).  A minimum of two quotations were required for works or services not exceeding 
VT 50,000, and the procurement or der could be placed by senior department staff.  The guidelines 
also stipulated that goods and services should be procured through the Government Central Store 
wherever possible.  The Central Store purchased  stationery and other supplies used by the 
Government on a purely commercial basis.  The Gove rnment Central Store did not sell to the public, 
or to non-governmental entities.   
103. Some Members said that adoption of the disciplines of the Agreement on Government 
Procurement would benefit Vanuatu and asked wh ether Vanuatu intended to accede to this 
Agreement.   
104. The representative of Vanuatu said that Vanuatu  did not intend to apply for accession to that 
Agreement at this stage.  He confirmed that th e financial regulations of  Vanuatu did not permit 
discrimination against foreign suppliers and that  no such discrimination will be introduced in 
the future.  The Working Party took note of this commitment.   WT/ACC/SPEC/VUT/8 
Page 30  
 
  - Transit 
105. The representative of Vanuatu said that little tr ade transited through Vanuatu, which therefore 
had no need for specific regulations on the matte r.  However, transit trade was allowed under 
international customs practices. 
106. The representative of Vanuatu confirmed that  his Government w ould apply any laws, 
regulations and practices governing transit operati ons and would act in full conformity with 
the provisions of the WTO Agreement, in particular  Article V of the GATT 1994.  The Working Party 
took note of this commitment.   
- Agricultural policies 
107. The representative of Vanuatu said that agricultu re played a dominant role in the economy.  
The main cash crops were copra, coffee, kava a nd cocoa.  Cocoa cultivation and beef production was 
growing in importance.  The beef industry was con centrated on Espiritu Santo, where Vanuatu's major 
slaughterhouse, constructed to intern ational standards, was located.   
108. Vanuatu provided virtually no monetary grants to agricultural producers, but agricultural 
producers were among the businesses eligible for incentives offered through the Business Licence 
Committee and Customs Department.  These incen tives included exemption from business licence 
requirements, special loans at relatively low rates of interest from commercial banks, and special exemptions accorded by the customs and tax authorities.   
109. Vanuatu also had aid-financed programs of domestic support for agriculture.  The Department 
of Agriculture oversaw the provision of a sma ll subsidy of VT 50 (about US$0.50) per coconut 
seedling.  The VT 50 subsidy per coconut seedling ha d been abolished in 2005.  Government policy 
had also been to ensure that small-holders of coffee were provided with free planting materials and 
a subsidy on the purchasing price.  In addition,  the Vanuatu Commodities Marketing Board regulated 
the "beach" (farm-gate) price of copra on an ad hoc  basis by using surpluses generated from trading 
activities and transfers of Lomé Convention funds  from the commodity price stabilisation scheme 
(Stabex) of the European Union.  In 1996, the Government had used approximately VT 10 million as 
a once-off payment to support copra prices.  Since 1984, the VCMB had accumulated losses 
approaching US$20 million, but relatively high world market prices for copra and cocoa in recent 
years had reduced the need for price support to th ese sectors in Vanuatu.  The VCMB was now fully 
obliged by statute to fund its own activities without any subsidy.    WT/ACC/SPEC/VUT/8 
 Page 31 
 
 
  110. Vanuatu's commitments on agricultural tariffs, on domestic support for agriculture which 
qualify for the de minimis level of support of 10 per cent that is available to developing countries, and 
on agricultural export subsidies, are in the Sc hedule of Concessions and Commitments on Goods 
annexed to the draft Protocol of Accession to the WT O reproduced in the Appendix to this report.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
111. In early discussions of this subject in the Wo rking Party, the representative of Vanuatu said 
that Vanuatu had for some time  maintained two pieces of legislation, governing patents and 
trademarks.  Patent legislation was based on the Registration of United Kingdom Patents 
Act [CAP. 80], providing that a patent registered in the United Kingdom was similarly workable in 
Vanuatu.  The Registration of United Kingdom Trade Marks Act [CAP. 81] had the same legal status 
in Vanuatu.  A trademark remained  protected as long as such registration remained in force in 
the United Kingdom.  Vanuatu had no legislati on concerning copyright and related rights, 
the protection of layout-designs (topographies) of  integrated circuits, geographical indications, 
industrial designs, and trade secrets and undisclosed  information.  Infringements of intellectual 
property rights had so far been foreign to th e legal system of Vanuatu, although courts had 
the authority to give orders and provide remedi es for holders of patents and trademarks.   
112. Vanuatu would also have to examine the extent  to which amendments were also required in 
related legislation, such as the Criminal Procedur e Code and the Penal Code (to ensure conformity 
with Article 61 of the TRIPS Agreement) and the Customs Act (to ensure that customs officers had 
adequate legal authority to facilitate the prot ection of intellectual property rights holders from 
counterfeits and trade mark piracy).  Concerning en forcement, officers would need to be trained in 
several government departments.  Most important was the training and recruitment of an officer in 
the Vanuatu Financial Services Commission to be in  charge of the day-to-day implementation of 
patents and trademarks administration.  Other offi ces requiring training included the Department of 
Customs, the Department of Trade and the Police and Attorney-General's chambers.  At present, 
these key divisions lacked expertise about the ob ligations created under the TRIPS Agreement.  
Vanuatu recognized that membersh ip of the Paris, Berne, Geneva, Brussels, UPOV and WIPO 
Conventions would facilitate compliance with  the TRIPS Agreement and would accede to 
these treaties by no later than 1 December 2012.   
113. In subsequent discussions, the representative of Vanuatu reported on the major effort that his 
Government had already made to ensure passag e of WTO-compatible legislation setting basic 
standards for the protection of intellectual property giving effect to the TRIPS Agreement.  Draft legislation would be transmitted to Members of the Working Party for comment, and should be WT/ACC/SPEC/VUT/8 
Page 32  
 
  passed by Parliament before the end of 2001.  Va nuatu had already transmitted Laws or draft Laws 
On Copyright, Patents, Trademarks, Designs, Trad e Secrets and Geographical Indications.  Members 
of the Working Party had been invited to forw ard any comments on these Laws and draft Laws to 
the Government of Vanuatu so that these could be  taken into account before they were presented to 
Parliament for final approval.  He added that Parliament had passed new Laws on Copyright and 
Related Rights, Layout Designs of Integrated Ci rcuits, Geographical Indications (Wine), and Trade 
Secrets in 2000.  Bills on trademarks, patents and industrial designs - which would complete 
the legislative programme on TRIPS - had been pr epared for consideration by Parliament.   
114. In a later update, the representative of Vanuatu added that Parliament had passed new Acts on 
trademarks, patents, and industrial designs in 2003.  Vanuatu's Parliament had also approved 
legislation to take account of the UK Pate nts (Amendment) Act and the UK Trade Marks 
(Amendment) Act in 2008, which had been gazetted in the same year.  Copies of the new legislation 
were provided to the Working Party.  The Acts passed in 2000 and 2003 had not yet been gazetted, 
and therefore had not yet entered into force.  Ho wever, these steps would be completed by no later 
than 1 December 2010.  
115. The representative of Vanuatu thanked the governments concerned for the technical 
assistance that they had provided and for their recognition that more would be required.  For the reasons given above, the Government  of Vanuatu requested that the Working Party grant a transitional 
period to obtain technical assistance and equip the ad ministration to implement fully the obligations 
of the TRIPS Agreement by no later than 1 December  2012.  He confirmed that, if such a transitional 
period were granted, Articles 3, 4 a nd 5 of the Agreement, providing for, inter alia , national treatment 
and MFN treatment under current legislation in pl ace would apply, and Vanuatu would ensure that 
any changes made in its laws, re gulations and practice in this pe riod would not result in a lesser 
degree of consistency with the provisions of th e TRIPS Agreement that existed on the date of 
accession.  In addition, Vanuatu w ould not grant patents, trademarks , or copyrights, or marketing 
approvals for pharmaceutical or agricultural chem icals inconsistent with the provisions of the 
TRIPS Agreement.   
116. The representative of Vanuatu also stated that, sh ould a transition be granted, existing rates of 
infringement would not significantly increase over th e transition period and that any infringement of 
intellectual property rights would be addressed im mediately in cooperation and with assistance from 
affected right holders.  Vanuatu would protect ag ainst unfair commercial use of undisclosed test or 
other data submitted in support of  applications for marketing approval of pharmaceutical or of 
agricultural chemical products which utilize new chem ical entities, by providing that no person other  WT/ACC/SPEC/VUT/8 
 Page 33 
 
 
  than the person that submitted such data may, with out the permission of the latter person, rely on such 
data in support of an application for product approval for a period of at least five years from the date 
on which Vanuatu granted marketing approval to the person that produced the data.  Prior to issuance 
of marketing approval of any pharmaceutical an d agricultural chemicals products, the relevant 
Ministries in Vanuatu would determine the existen ce of a patent covering a product for which an 
application for marketing approval had been filed by  a party other than the patentee, and must not 
approve such application for mark eting approval until the date of th e expiration of such patent.  
He added that Vanuatu would seek out all available technical assistance to ensure that its capacity to 
fully enforce its TRIPS-consistent legal regime upon expiration of the transition period is assured.  
In response to requests from delegations for more specificity, the representative of Vanuatu presented 
an Action Plan setting out details of the steps that s till remained to be taken in order to achieve this 
objective and a timetable for each step (Table 6).  
Table 6:  TRIPS Action Plan  
Action Deadline 
Parliamentary consideration of TR IPS-consistent legislation on 
copyright and related rights, patents, trademarks, industrial 
designs, geographical indications, layout designs of integrated circuits, and protection of undisclosed information (trade secrets) Legislation passed during various sittings 
of Parliament in 2000, 2003, and 2008 
Gazetting of remaining unimplemented  TRIPS-consistent 
legislation approved by Parliament:  
 - Copyright and Related Rights Act No. 42 of 2000;  
- Trade Secrets Act No. 52 of 2000;  
- Trade Marks Act No. 1 of 2003; and - Circuits Layouts Act No. 51 of 2000. No later than 1 December 2010 
Drafting of implementing regulations. 
Notification of gazetted TRIPS-c onsistent legislation and draft 
implementing regulations to WTO TRIPS Committee. No later than 1 December 2011  
Establishment (implementation) of implementing regulations. 
 
Establishment of any necessary additional legislation and regulations to provide a legal basis for enforcement mechanisms. No later than 1 December 2012 
Establishment of Intellectual Property (IP) Office, recruitment of 
personnel, obtaining facilities and equipment. No later than 1 December 2012 
Development of manuals and operating proc edures. No later than 1 December 2012 
Training of at least 15 offici als, customs officers and private 
sector people as well as educators in TRIPS issues. No later than 1 December 2012 
Readiness to participate in regional and international IP 
administrative cooperation (Forum Island countries, PCT, Madrid 
Protocol, etc.). No later than 1 December 2012  
Membership in the Paris, Bern e, Geneva, Brussels, UPOV and 
WIPO Conventions No later than 1 December 2012 
Full implementation of WTO TRIPS Agreem ent No later than 1 December 2012 
 
117. The representative of Vanuatu stated that legisla tion on copyright and re lated rights, patents, 
trademarks, industrial designs, geographical indicati ons, layout designs of integrated circuits, and WT/ACC/SPEC/VUT/8 
Page 34  
 
  protection of undisclosed information (trade secr ets) conforming to the requirements of the 
Agreement on Trade-Related Intellectual Propert y Rights would be enacted by no later than 
1 December 2010.   Vanuatu would apply the Agreement on Trade-Related Intellectual Property 
Rights by no later than 1 December 2012 accordi ng to the action plan in Table 6, with the 
understanding that during this period protectio n for intellectual property rights listed in 
paragraphs 115 and 116 would be applied in Va nuatu.  The Working Party took note of this 
commitment.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
118. The representative of Vanuatu said that whol esale and retail trade, government services 
(i.e. public administration and health, recreation a nd other services), and transport and communication 
were the principal services sectors, together acc ounting for nearly 60 per cent of Vanuatu's GDP.  
The contributions from financial services a nd tourism were also significant.   
119. The Finance Centre of Vanuatu, protected by strict professional secrecy and the absence of 
foreign exchange control and direct taxation, contributed significantly to national income and 
government revenue.  The Government was committed  to making Vanuatu th e foremost investment 
centre in the Pacific.  Offshore banks were supe rvised and regulated by the Vanuatu Financial 
Services Commission.  Banks carrying on business in Vanuatu were supervised and regulated by the 
Central Reserve Bank.  The legislative framework ha d been improved by the passage of the Financial 
Institutions Act of 1999, which had been sent to  the WTO Secretariat for the information of 
delegations.  To obtain a permit to  operate, banks had to meet requirements designed to ensure that 
banks would act prudently.  These requirements were based on the work of the Basel Committee set 
up by the G7 to codify best practice for the conduc t of banking business, including core principles for 
banking supervision.  The new legislation had, for example, eliminated the difference between 
the capital requirements for locally-owned and foreign-owned banks, and paid up capital and 
unimpaired reserves of VT 200 million were now necessary for all banks and branches of banks.  
For the commitments to be undertaken by Vanuatu in the banking sector, see the Schedule of Specific 
Commitments on Services annexed to the Draft Prot ocol of Accession reproduced in the Appendix to 
this report.   
120. Exclusive suppliers or monopolies existed in elect ricity supply, water supply and internal air 
transport.  The Government had contracted a privat e power utility (UNELCO) to provide electricity in 
Port Vila, Luganville, Malekula a nd Tanna Island.  Outside the areas supplied by UNELCO, a variety 
of small-scale arrangements existed for the suppl y of electricity.  All these arrangements were 
independent of the power utility.  Water service s were provided by Union Electrique du Vanuatu  WT/ACC/SPEC/VUT/8 
 Page 35 
 
 
  Limited.  The Government had established a semi-autonomous Utilities Regulatory Authority to 
oversee the regulated services industries in Vanuatu, principally the supply of electricity and water.  
The Authority managed and administered the con cession agreements for the supply and delivery of 
electricity and water services, and provided ad vice to the Government on matters affecting 
these industries.  Vanair Limited was the sole supp lier of domestic air services, while international 
flights were shared between Air Vanuatu Limited, Solomon Airlines, Air Pacific and Air Caledonie.   
121. Telecom Vanuatu Limited had for many year s been the sole supplier of communication 
services.  However, since 2001 the Government had opened up the market for mobile telecommunications services to competition.  At pr esent, Vanuatu was served by the Smile service 
operated by Telecom Vanuatu Limited as well as Digi Cel, which was foreign owned.  The move had 
created significant price competition in the mobile  telecommunications market and contributed to 
a significant rise in the penetration of mobile telephones in Vanuatu.  As Vanuatu's population was 
diffused across numerous islands, coverage was not universal but steadily improving, particularly as 
a consequence of competition between the mobile carriers.  Telecom Vanuatu Limited's monopoly on 
fixed-line telephony continued to exist, but w ould not be extended beyond 31 December 2012.    
122. With these exceptions, commercial presence of fo reign services suppliers on the territory of 
Vanuatu was largely unrestricted, and there were  no prohibitions regarding the establishment of 
foreign service suppliers.  Vanuatu maintained no numerical quotas or economic needs tests relating 
to the supply of services.  Vanuatu maintained no prohibitions or limita tions on consumption of 
services abroad by its nationals.  Travelling abroad was subject to an airport departure tax, but this tax 
was now included in the price of all air tickets.   
123. Regarding the presence of foreign natural pe rsons, the Labour Commissioner issued work 
permits provided a post could not be filled by sk illed local labour, in which case job training should 
be provided.  Companies were requi red to advertise all va cant positions in the local press, and if no 
suitably qualified local candidate responded, a non- Vanuatu citizen could be  hired.  Vanuatu had 
revised its system for approving or refusing work pe rmits to ensure transparency and full right of 
judicial review.  Any foreign natural person could obtain a one-year residence permit against 
a minimum investment in Vanuatu of about US$50,000 (VT 5 million). 
124. The residence permit requirements did not apply for obtaining a licence to practice 
a profession.  A list of Acts constituting the regul atory regime for business services was provided in 
document WT/ACC/VUT/4 (paragraphs 44-45).  Appr oval by professional associations was required 
for certain types of services, notably for legal services (the Legal Practitioners Board), medical and 
dental services (the Medical Practitioners Board), engineering and architecture (the Survey Board), WT/ACC/SPEC/VUT/8 
Page 36  
 
  and accounting.  Cross-border supply of legal servic es was allowed, but only through an existing firm 
in Vanuatu.  Resident foreign lawyers, graduate d from an institution recognized by the Law Council 
and having undergone two-year pos t-graduate training in Vanuatu, could provide exactly the same 
services as domestic lawyers.  There were no limitations on the access of foreign service providers in educational services.   
125. Vanuatu's Schedule of Specific Commitments on Services is annexed to its draft Protocol of 
Accession reproduced in the Appendix to this report.  This Schedule of Specific Commitments on 
Services contains the legally binding market access co mmitments of Vanuatu in respect of services.   
VII. TRANSPARENCY 
- Publication of information on trade 126. The representative of Vanuatu provided informa tion to the Working Party on the publication 
of laws and regulations.  All laws  are published in the Official Gazette and do not come into force 
before such publication.   
127. The representative of Vanuatu confirmed that  Vanuatu would, upo n accession, fully and 
promptly implement Article X of the GATT 1994 and other transparency provisions in 
the WTO Agreements requiring notification and publi cation.  He further confirmed that no law, 
regulation, judicial decision, administrative ru lings, or other measures of general application 
pertaining to or affecting trade in goods, services  and TRIPS, would become effective prior to 
its publication.  The publication of such laws , regulations and other measures would include 
the effective date of these measures and list the pro ducts and/or services affected by the particular 
measure.  He stated further that Vanuatu intended to establish or designate an official journal or  
web-site, published or updated on a regular basis a nd readily available to WTO Members, individuals 
and enterprises, dedicated to the publication of a ll regulations and other m easures pertaining to or 
affecting trade in goods, services, and TRIPS prior to implementation, and that Vanuatu intended to 
provide a reasonable period, e.g. no less than 30 days, for comment to the appropriate authorities of 
Vanuatu before such measures are implemented, ex cept for those regulations and other measures of 
general application involving natio nal emergency or security, or for which the publication would 
impede law enforcement or be ot herwise contrary to the public interest or prejudice the commercial 
interests of particular enterprises, public or privat e.  Vanuatu would implement this facility as soon as 
possible, but no later than within four years of th e date of its accession to the WTO.  The Working 
Party took note of these commitments.    WT/ACC/SPEC/VUT/8 
 Page 37 
 
 
  - Notifications 
128. The representative of Vanuatu said that at the la test upon entry into force of the Protocol of 
Accession, Vanuatu would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  Any regulations subseque ntly enacted by Vanuatu which gave effect to 
the laws enacted to implement any Agreement c onstituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of these commitments.   
VIII. TRADE AGREEMENTS 
129. The representative of Vanuatu said that Vanua tu's exports benefited from duty-free and 
quota-free access in relation to all products unde r the SPARTECA Agreement with Australia and 
New Zealand (1980) and from duty-free, quota-free ac cess to the EU market under the Everything But 
Arms (EBA) regulation.   
130. Vanuatu was also a party to the Melanesi an Spearhead Group (MSG ) Trade Agreement, 
established in 1993 as a reciprocal free trade agre ement between Fiji, Papua New Guinea, Solomon 
Islands and Vanuatu.  The treaty had undergone a number of reforms over the years, notably by 
expanding the product coverage from three products initially to more than 180 products at present, 
and by moving from a positive list to a negative list a pproach in 2004.  Extension of the MSG Trade 
Agreement to also cover services and labour mob ility was under consideration.  The Agreement had 
been notified to the WTO by Papua New Guinea under the provisions of the Enabling Clause in 1999.  
Imports from MSG countries were subj ect to all domestic taxes.   
131. Vanuatu had ratified the Pacific Island Count ries Trade Agreement (PICTA) in June 2005, 
and the Agreement had entered into force for Vanuatu  in July 2005.  The PICTA had been notified to 
the WTO jointly by Fiji, Papua New Guinea, Solomon Islands, and Tonga in 2008.   Vanuatu is one of 
PICTA parties that have indicated it was ready to trade under PICTA. 
132. Vanuatu had signed agreements on technical cooperation with Fiji and Papua New Guinea, 
a Technical Aid Cooperation Agreement with Ne w Caledonia, and an Agreement on Economic and 
Technical Cooperation with China in 1992.  Vanua tu had signed the Australia-Vanuatu Partnership 
Development Agreement in May 2009.   Vanuatu had concluded air ser vices agreements with Fiji and 
Australia (1993), and ratified the Pacific Islands Ai r Services Agreement in 2006.  In the same year, 
Vanuatu had also signed an air services agreement with New Zealand.   
133. He added that the South Pacific Regiona l Trade and Economic Cooperation Agreement 
(SPARTECA) provided for duty-free and quota-free a ccess for exports from Vanuatu to Australia and WT/ACC/SPEC/VUT/8 
Page 38  
 
  New Zealand.  However, it was generally acknowle dged that sanitary and phytosanitary requirements 
combined with SPARTECA's rules of origin prov isions had resulted in very few exports from 
Vanuatu to these markets.  The Everything But Arms  agreement had resulted in some exports, notably 
of coconut oil, to the European Union.   
134. At the regional level, the MSG Trade Agreemen t provided for gradual reduction in tariffs on 
all exports originating from its four members, with all tariff lines scheduled to reach zero per cent.  
Each member had a brief negative list of items enjo ying protection through slightly higher tariffs, but 
these tariffs would be subject to the same schedul e of liberalization, with tariffs on negative list 
products also scheduled to reach zero per cent, but with higher tariffs allowed in the interim than on 
non-negative list items.  Vanuatu's MSG Negative List  and the associated liberalization schedule is 
reproduced in Table 7(a).   
135. Like the MSG Trade Agreement, the Pacific Island Countries Trade Agreement provides for 
full trade liberalization on all products originating from other members, with all tariff lines similarly 
scheduled to reach full liberalization (i.e. zero duty) .  PICTA allowed each party to have a "List of 
Excepted Products".  Tariffs would eventually be eliminated also on these products, but the timeline 
for full liberalization was longer than for the othe r products.  Small Island States (SIS) and Least 
Developed Countries (LDC), such as Vanuatu, be ing parties to PICTA had a slightly longer 
liberalization timeline than non-SIS/LDC signatories.  Vanuatu's list of excepted products is also 
reproduced in Table 7(b).  He noted that Vanua tu had not yet implemented the PICTA Rules of 
Origin.  
136. The Pacific Agreement on Closer Economic  Relations (PACER) was an economic 
cooperation agreement signed by the Pacific Is land States and Australia and New Zealand.  
Pacific Island Leaders formally agreed in A ugust 2009 to commence PACER Plus negotiations.  
Pacific Island Forum Members have agreed on PACE R Plus negotiating issues, including the priority 
negotiating issues of rules of origin, regional labour  mobility, development assistance, infrastructure, 
and trade facilitation.  Vanuatu is par ticipating in PACER Plus negotiations.  
137. The representative of Vanuatu stated that hi s Government would observe the provisions of 
the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its trade 
agreements, and would ensure that the provisi ons of these WTO Agreements for notification, 
consultation and other requirements concerning free trade areas and customs unions of which Vanuatu 
was a member were met from the date of acces sion.  The Working Party took note of these 
commitments.    WT/ACC/SPEC/VUT/8 
 Page 39 
 
 
  CONCLUSIONS 
138. The Working Party took note of the explana tions and statements of Vanuatu concerning 
its foreign trade regime, as reflected in this report.   The Working Party took note of the commitments 
given by Vanuatu in relation to certain specific ma tters which are reproduced in paragraphs 23, 25, 
28, 31, 38, 39, 45, 51, 53, 55, 57, 62, 67, 69, 72, 74, 76, 80, 83, 96, 98, 100, 104, 106, 117, 127, 128 and 137.  The Working Party took note that these commi tments had been incorporated in paragraph 2 
of the draft Protocol of Accession of Vanuatu to the WTO.   
139. Having carried out the examination of the foreign trade regime of Vanuatu and in the light of 
the explanations, commitments and concessions ma de by the representative of Vanuatu, the 
re-convened Working Party reached the conclu sion that Vanuatu be invited to accede to 
the Marrakesh Agreement Establishing the WTO unde r the provisions of Article XII.  For this 
purpose, the re-convened Working Party has prepared the draft Decision and Protocol of Accession 
reproduced in the Appendix to this report, and ta kes note of Vanuatu's Schedule of Concessions and 
Commitments on Goods (document WT/ACC/VUT/[  ]/Add.1) and its Schedule of Specific 
Commitments on Services (document WT/ACC/VUT/[  ]/Add.2) that are annexed to the Protocol.  
It is proposed that these texts be adopted by the General Council when it adopts the report.  When the 
Decision is adopted, the Protocol of Accession would be open for acceptance by Vanuatu which 
would become a Member 30 days after it accepts th e said Protocol.  The re-convened Working Party 
agreed, therefore, that it had completed its wo rk concerning the negotiations for the accession of 
Vanuatu to the Marrakesh Agre ement Establishing the WTO.   WT/ACC/SPEC/VUT/8 
Page 40  
 
  ANNEX 1 
Laws, Regulations and Other Information Pr ovided to the Working Party by Vanuatu
 
- Comprehensive Economic Re form Programme (draft); 
- Summary of Legislative Reforms Necessary as a Result of Accession to the WTO; - Public Finance and Economic Manageme nt (Amendment) Act No. 10 of 1999; 
- Public Finance and Economic Manageme nt (Amendment) Act No. 12 of 2000; 
- Foreign Investment Act No. 15 of 1998; - Foreign Investment (Amendment) Act No. 1 of 1999; - Foreign Investment (Amendment) Act No. 6 of 2001; - Vanuatu Foreign Investment Promotion (Amendment) Act No. 6 of 2007;  
- Vanuatu Foreign Investment Promotion (Amendment) Act No. 23 of 2008; 
- Business Licence (Localization of Businesses) Order No. 79 of 1983; 
- Amendment to Business Licence (Localiza tion of Businesses) Order No. 79 of 1993; 
- The Business Licence Act (Chapter 173), Schedule 1 - Rates of Business Fees; - Bill for the Business Licence Act No. 19 of 1998; 
- Business Licence Act No. 19 of 1998; 
- Bill for the Business Licence (Amendment ) Act No. 90/1999 and Explanatory Note; 
- Business Licence (Amendment) Act No. 6 of 2000 and Explanatory Note; - Business Licence Act, Consolidated Edition 2006;  The Business Licence (Amendment) Act No. 1 of 2006;  - Business Licence (Amendment) Act No. 13 of 2006;  
- Business Licence (Amendment) Act No. 19 of 2007; 
- Bill for the Customs Act No. __ of 1999; - Customs Act No. 15 of 1999; - Customs (Amendment) Act No. 15 of 2003;  - Customs (Amendment) Act No. 20 of 2007;  
- Decentralization and Local Government Regions Act No. 1 of 1994; 
- Customs Import and Export Duty Tariff 1995/1996; - Import Duties (Consolidation) (Amendment) Act No. 9 of 2000 - Amendments of the Import Duties (Consolidation)(Amendment) Act No. 46 of 2005;  - The Import Duties (Consolidation)(Amendment) Act No. 2 of 2006; - The Import Duties (Consolidation)(Amendment) Act No. 36 of 2006;  
- The Duty Exemption Policy and application form for exemption of customs duty; 
- The Duty Exemption Policy - Manufacture and Process Sector as per the Vanuatu Customs 
Tariff, Schedule III, Section 1, X.1 of 1998; 
- Duty concessions guidelines (Schedule III Application Form); - The Dues, Fees and Charges Order No. 14 of 2 October 1982; 
- Agricultural Fees, Consolidated Edition 2006; 
- Amendments of the Agricultural Fees Regulations; - Excise Act No. 24 of 2002; - Excise (Amendment) Act No. 13 of 2003; - Excise Tax (Amendment) Act No. 38 of 2006;  - Beer (Repeal) Act No. 25 of 2002; 
- Bill for the Value Added Tax Act No. l2 of 1998 and Explanatory Note; 
- Value Added Tax Act No. 12 of 199 8 (consolidated to 29 January 2001); 
- Value Added Tax (Amendment) Act No. 28 of 2002;  - Value Added Tax (Amendment) Act No. 3 of 2007;  - Import of Goods (Miscellaneous Control) (Repeal) Order No. 13 of 1999; 
- The Import of Goods (Control), Consolidated Edition of 2006; 
- The Import of Motor Vehicles (Control) Act No. 30 of 1992; - Alcohol Importation, Consolidated Edition 2006 [CAP. 8];  WT/ACC/SPEC/VUT/8 
 Page 41 
 
 
  - Tobacco Control Act No. 19 of 2008;  
- Import Duties (Consolidation) (Customs Va luation Amendment) Act No. 8 of 1999; 
- Bill for Import Duties (Consolidation) (Cus toms Valuation Amendment) of 1999 and 
Explanatory Note; 
- Export Duties (Amendment) Act No. 19 of 2006;  
- Export Duties (Amendment) Act No. 25 of 2007; 
- Food (Control) Act No. 21 of 1993, Consolidated Edition 2006; - Food (Control)(Amendment) Act No. 27 of 2009;  - Explanation of the Prohibited Plants List pr epared by the Department of Agriculture and 
Horticulture, Plant Protection and Quarantine Division; 
- Independent assessment of Vanuatu Quaran tine and Inspection Services (31 August 1999); 
- Animal Importation and Quarantine Act [CAP . 201], Revised Edition 1988 and Regulations 
under the Act; 
- Schedules setting out quarantine requirements fo r the importation of selected products into 
Vanuatu:  No. 45, goats from Australia; No. 46, caprine embryos from the Republic of South 
Africa:  and No. 47, bovine embryos from USA; 
- Conditions for vessels carrying live animals; - Decision Pathway for Pest Risk Asse ssment for Pacific Island Countries; 
- Plant Protection Act No. 14 of 1997 and Manual for its implementation dated 
30 September 1997; 
- Vanuatu Quarantine and Inspection Services - import documentation; 
- The Vanuatu Government Financial Regulations  regarding Purchase of Goods and Services, 
Chapter 22; 
- The Vanuatu Commodities Marketing Bo ard (Amendment) Act No. 25 of 2003; 
- The Vanuatu Commodities Marketing Boar d (Amendment) Act No. 15 of 2005;  
- Bill for the Copyright Act No. __ of 1999 (draft as at 28 August 1999); 
- Bill for the Copyright Act of 1999 and Explanatory Note; 
- Copyright and Related Rights Act No. 42 of 2000; - Bill for the Trademarks Act of 1999 and Explanatory Note; - Draft Bill for the Trademarks Ac t of 2001 and Explanatory Note; 
- Trademarks Act No. 1 of 2003; - Registration of United Kingdom Trade Marks, Consolidated Edition of 2006; 
- Registration of United Kingdom Trade Marks (Amendment) Act No. 15 of 2008;  
- Bill for the Geographical Indications (Wine) Act No. __ of 2000 (and Explanatory Note); 
- Geographical Indications (Wine) Act No. 53 of 2000; - Bill for the Patents Act of 1999 and Explanatory Note; - Bill for the Patents Act of 2001 and Explanatory Note; 
- Patents Act No. 2 of 2003;  
- Registration of United Kingdom Pate nts, Consolidated Edition of 2006; 
- Registration of United Kingdom Pate nts (Amendment) Act No. 14 of 2008; 
- Bill for the Designs Act of 2000 and Explanatory Note; - Draft Bill for the Designs Act of 2001 and Explanatory Note; - Designs Act No. 3 of 2003;  
- Bill for the Circuit Layouts Act No. 51 of 2000 and Explanatory Note; 
- Circuit Layouts Act No. 51 of 2000; - Bill for the Trade Secrets Act No. __ of 1999 (and Explanatory Note); - Bill for the Trade Secrets Act No. 52 of 2000 and Explanatory Note; - Trade Secrets Act No. 52 of 2000; 
- Legal Profession Act No. 49 of 2005;  
- The Telecommunication Act No. 10 of 1989;  - Telecommunication (Amendment) Act No. 34 of 2006; - Telecommunications (Amendment) Act No. 15 of 2007; - Telecommunications (Amendment) Act No. 31 of 2009;  WT/ACC/SPEC/VUT/8 
Page 42  
 
  - Insurance Act No. 54 of 2005; 
- Insurance (Amendment) Act No. 29 of 2009;  - Description of the structure and competence of the Land Surveyors Board; - Financial Institutions Act of 1999; - Reserve Bank of Vanuatu Policy Guidelines 1 to 4; 
- Trade Agreement Among the Melanesian Spearhead Group Countries of 23 June 1993; 
- Agreement Establishing the Melanesian Spearh ead Group (Ratification) Act No. 18 of 2007;  
- Pacific Agreement on Closer Economic Relations  (PACER)(Ratification) Act No. 5 of 2003;  
- Pacific Island Countries Trade Agreement (PICTA ) Consolidated Amendments (Ratification) 
Act No. 3 of 2008;  
- Extracts of the Laws of the Republic of Vanua tu concerning Customs, Road Traffic (Control), 
Export Duties, Obscenity, Agricultural Fees, Import Duties (Consolidation), Hotels and 
Licensed Premises Tax, Gaming (Control), Business Licence, Import of Goods (Control), 
Video Cassettes (Tax on Hiring), Cheque Tax,  Rent Taxation, Amusement Machines Tax, 
Banking, Immigration, Stamp Duties, Trust Comp anies, Airport Departure Tax (International 
Flights), Electricity Supply, Registration of United Kingdom Trade Marks, Registration of 
United Kingdom Patents, Insurance, Price C ontrol, Partnership, Passports, Citizenship 
(Entitled Persons), Citizenship, Coastal Tr ading (Control), Central Bank of Vanuatu, 
International Financial Institutions, Di plomatic Privileges and Immunities, 
Telecommunications, Post Office, Labour (Work Permits), and Companies; 
- Customs Import and Export Duty Tariff - Harmonized Commodity Description and Coding 
System (Third Edition 2002); 
- Trade Data 1994-96 (diskette);  - Statistics Office:  Vanuatu National Agriculture Census 1994 - Main Report; 
- Statistics Office:  Copra and Cocoa, Annual Report 1994; - Statistics Office:  Statistical Indicators, October-December 1995; and 
- Statistics Office:  Detailed Commodity Tables of Overseas Trade of Vanuatu, Annual 
Report 1993.  WT/ACC/SPEC/VUT/8 
 Page 43 
 
 
  ANNEX 2 
Reserved Investments  
1. Tourism 
(a) Local tour agent if the annual turnover is less than VT 20 million; 
(b) Local tour operator if the investment is less than VT 50 million; 
(c) Commercial cultural feasts (M elanesian, Polynesian etc.);   
(d) Guest houses if the number of beds is less than  50 or less than ten rooms or annual turnover is 
less than VT 20 million; 
(e) Bungalows if the annual turnove r is less than VT 30 million; and 
(f) Hotels and motels if the total value of the i nvestment is less than VT 10 million or the annual 
turnover is less than VT 20 million. 
2. Trade 
(a) Export of sandalwood in stick and chips form; 
(b) Local trading of sandalwood; (c) Export of seeds and other minor forest products; 
(d) Second hand clothing shops; and 
(e) Export of kava in root, chips and stick form. 
3. Manufacturing 
(a) Manufacture of handicraft and artefacts. 
4. Services 
(a) Kava bars; 
(b) Open air vendors; 
(c) Mobile shops; (d) Door to door sales; (e) Road transport operators - public taxi and bus services; (f) Private security services including security guards; 
(g) Category F of Business Licensing Act No. 19 of 1998 of less than VT 5 million turnover per 
year; 
(h) Retail shops including general merchandise trading shops where the annual turnover is less 
than VT 30 million, excluding specialty shops; 
(i) Coastal shipping of less than 80 tonnes, excluding vessels used for tourism purposes; (j) Electricians and electro-technici ans meeting prescribed standards; 
(k) Residential building and constructi on meeting prescribed standards; and 
(l) A land transport operator of any kind in cluding but not limited to an operator of: 
 (a) a transport or transfer that operates from the airport to any of the following locations:   (i) a hotel; 
  (ii) a bungalow; 
  (iii) a motel; 
  (iv) a resort;   (v) a guesthouse;   (vi) a lodge. WT/ACC/SPEC/VUT/8 
Page 44  
 
  (b) a transport or a transfer th at operates from any of the locati ons listed under item 4(l)(a)(i)-(vi) 
to the airport; 
(c) a transport or a transfer th at operates from any of the locati ons listed under item 4(l)(a)(i)-(vi) 
to attend any kind of tours; and 
(d) a transport or a transfer that operates a tour  from any particular location not listed under item 
4(l)((a)(i)-(vi) to a specific location.  
5. Fishing 
(a) Fishing within archipelagic waters within th e meaning of the Maritime Zones Act [CAP. 138] 
and the first six nautical miles of the terr itorial sea within the meaning of that Act.  
   WT/ACC/SPEC/VUT/8
 Page 45Table 2:  Legislation Introduced as a Result of Accession to the WTO  
WTO Agreement or other  
subject-matter Laws and other legal provisions addressing and 
covering the subject matter Status of indicated legislation Comment 
General Trade Law  Subsequent legislation to be revised where 
found to be incompatible with WTO provisions. 
National treatment Import Duties (Consolidation) Act [CAP. 91] Amended Point system based on nationality abolished. 
Relationship central vs. sub-central 
government Provincial Government Act 1994  Provinces are not permitted to raise import 
duties or import taxes. 
Trading Rights Busine ss Licence Act 1998 
The Business Licence (Amendment) Act No. 1 of 
2006; 
Business Licence (Amendment)Act No. 13 of 2006; Business Licence (Amendment)  Act No. 19 of 2007  To be amended to ensure that import licenses 
may be granted to foreign "importers of 
record" and to remove business licence fees 
that violate any commitment to  non-discrimination and national treatment. 
Import duties Import Duties (Consolidation) Act [CAP. 91] 
 Amended in 1998 Substantial across-the board reductions in 
tariffs. 
Other duties and charges Import Duties (Consolidation) Act [CAP. 91] 
 Amended in 1998 Service tax abolished (rolled into new tariff 
rates). 
 Import of Goods (Control) Act No. 176 [CAP. 176] Amended in 1998 3-4% commission issued by the Vanuatu 
Cooperative Federation abolished and rolled 
into the tariff rate. 
Duty exemptions Vanuatu Customs Tariff, Schedule III, section 1 
(Economic Reliefs) Amended in 1998 Policy made more transparent and the scope 
for discretion reduced. 
Internal taxation Value Added Tax Act No. 12 of 1998 and 
Explanatory Note 
Value Added Tax (Amendment) 
Act No. 28 of 2002; Beer (Repeal) Act No. 25 of 2002; 
Excise Act No. 24 of 2002; 
Excise Tax (Amendment) Act No. 38 of 2006 Effective 1 August 1998 Rate of 12.5% applied to goods and most 
services. 
 
 Reforming the system of excise taxes to 
remove discrimination between like or 
similar alcoholic beverages. 
Agreement on Import Licensing 
Procedures Import of Goods (Control) Act No. 176 [CAP. 176] 
Customs Act [CAP. 257]  Bans (potatoes, T-shirts) and import Orders 
eliminated. 
Import of Goods (Control) Act and the Customs Act to be amended to eliminate 
authority of Minister to restrict imports to 
protect domestic production. 
Agreement on Implementation of Article VII of the GATT 1994 
(customs valuation) Import Duties (Consolidation)(Customs Valuation 
Amendment) Act of 1999 Effective 1 January 2001 Ensu res full compliance with the 
WTO Agreement. 
Export duties Export Duties (Amendment) Act No. 19  of 2006; 
Export Duties (Amendment) Act No. 25 of 2007    
  WT/ACC/SPEC/VUT/8 
Page 46 WTO Agreement or other  
subject-matter Laws and other legal provisions addressing and 
covering the subject matter Status of indicated legislation Comment 
Agreement on Technical Barriers to 
Trade (establishment of TBT enquiry point) Decision of the Ministry of Trade, Commerce and 
Industry  
Food (Control) Act No.
 21 of 1993; 
Food (Control) (Amendment) Act No. 27 of 2009 Effective 19 September 2001 The Director of the Department of Trade, 
Industry and Investment appointed as TBT enquiry point. 
Agreement on the Application of 
Sanitary and Phytosanitary Measures Animal Importation and Quarantine Act of 1988; 
Order No. 14 of 1994; 
Plant Protection Act No. 14 of 1997; Imports Specification (Plants) Manual; 
Food Control Act No. 21 of 1993 
 
Participation in international fora
: 
OIE FAO Codex Alimentarius Commission 
IPPC 
Pacific Plant Protectio n Organization (PPPO)  
 
  
 
 
 
 Member since 1983 
Member since 1995 
Contracting party since 2007  The Director of the Vanuatu Quarantine and 
Inspection Services is the SPS enquiry point 
(decision of 26 February 2001). 
TRIPS Agreement Copyright and Related Rights Act No. 42 of 2000; 
 
 
Circuit Layouts Act No. 51 of 2000; Trade Secrets Act No. 52 of 2000; 
Geographical Indications (Wine) Act No. 53 of 
2000; Trademarks Act No. 1 of 2003; 
Patents Act No. 2 of 2003; 
Designs Act No. 3 of 2003; United Kingdom Patents (Amendment) Act No. 14 
of 2008; 
United Kingdom Trade Marks (Amendment) Act 
No. 15 of 2008 Approved by Parliament, not 
gazetted 
 
" " 
" 
 
" 
" 
" 
Approved by Parliament and 
gazetted 
" Acts to be gazetted no later than 
1 December 2010 (see Table 6, and the 
Legislative Action Plan). 
  
General Agreement on Trade in Services Legal Profession Act No. 49 of 2005; 
The Telecommunication Act No. 10 of 1989; 
Telecommunication (Amendment) Act No. 34 of 2006; Telecommunication (Amendment) Act No. 15 of 2007; Telecommunication (Amendment) Act No. 31 of 2009; Insurance Act No. 54 of 2005; Insurance (Amendment) Act. No. 29 of 2009    
   WT/ACC/SPEC/VUT/8
 Page 47WTO Agreement or other  
subject-matter Laws and other legal provisions addressing and 
covering the subject matter Status of indicated legislation Comment 
Trade Agreements (Article XXIV of the 
GATT 1994) Agreement Establishing the Melanesian Spearhead 
Group (Ratification) Act No. 18 of 2007 
Pacific Island Countries Trade Agreement (PICTA) Consolidated Amendments (Ratification) Act No. 3 of 2008    
 WT/ACC/SPEC/VUT/8 
Page 48  
 
  Table 3:  Fees and Charges for Services Rendered
 
Description of Merchandise Basis of Charge Tariff (VT) 
HANDLING CHARGES:  OFF LOADING OR LOADING MAIN WHARF AND STORAGE OF GOODS 
IN SHED AND/OR OPEN AREA. 
General tariff up to 2 tons per unit weight exportation  
General cargo except following merchandises CUBIC/T 1,401 
Copra ex quay CUBIC/T 997 
Copra under hooke CUBIC/T 817 
Coffee, cocoa, shells  taros CUBIC/T 946 
Tinned food CUBIC/T 946 
Refrigerated or frozen meats CUBIC/T 1,290 
Refrigerated or frozen goods CUBIC/T 1,290 
Logs ex quay CUBIC/T 779 
Logs under hook water side CUBIC/T 591 
Sawn timber in bundles CUBIC/T 1,008 
IMPORTATION 
General cargo except the following merchandise CUBIC/T 1,401 
Frozen or refrigerated merchandise CUBIC/T 1,558 
Ammunition or explosives CUBIC/T 3,538 
Glass and marble in plates or slabs CUBIC/T 2,379 
Empty drums or barrels (11 gls) CUBIC/T 95 
Horses and cattle UNIT 1,922 
Pigs and sheep UNIT 481 
Cement in bag loose TON 1,493 
Palletized cement or plaster bags (minimum 50T) CUBIC/T 1,139 
Mail Bag UNIT 47 
Homogenous lot of palletized goods over 50T CUBIT/T 1,263 
Unpackaged or containerised motocars UNIT 7,009 
Pick-up truck, bus up to 2,000 kgs CUBIC 7,710 
Minimum charge per bill of lading UNIT 315 
Unpacked truck, bus up to 2,000 kgs CUBIC 701 + surcharge heavy 
lift 
Trailer, caravans towable machines on wheels CUBIC 701 + surcharge heavy 
lift 
Boat, launch (unpackaged) CUBIC 839 + surcharge heavy 
lift 
Boat, launch (with slings) CUBIC 757 + surcharge heavy 
lift 
Heavy equipment CUBIC 839 + surcharge heavy 
lift 
Heavy equipment (with slings) CUBIC 757 + surcharge heavy 
lift 
Special case:  for off loading or loading on barge of heavy automotive equipment 15 per cent reduction (over 10T or 20 m3) 
Full Containers FCL   
Named FCL or FCL/FCL - LCL/FCL, pier to house, quay to door, signifies for the purposes of application of 
the present tariff, that the u nopened container is off-loaded and stowed in the port area, from where it must be 
taken in charge by the consignee.  If this container has to be unpacked, it will be subject to the following charge in addition to the full container tariff: 
 - VT 2,884 per 9C/m 
 - VT 6,389 per 20'/. 
ISO NORM 
a) 8' container Unit VT 7,703 
b) 20' container Unit VT 26,279  WT/ACC/SPEC/VUT/8 
 Page 49 
 
 
  Description of Merchandise Basis of Charge Tariff (VT) 
20' full container of animal feed (cattle cake make from 
flour) (bulk or bags) Unit VT 21,024 
d) 20' full loaded of rice-bag or sugar-bag Unit VT 25,227 
e) 20' full loaded of flour bag Unit VT 22,425 
Other full Containers  
General cargo tariff with 50 per cent rebate, calculated on the outside volume of the container. 
Empty Containers (See general instructions)   
4 c/m or netted side Unit VT 1,243 
8' or netted sides Unit VT 2,489 
10' Unit VT 3,731 
20' Unit VT 6,221 
30' Unit VT 8,710 
Empty Cattle Boxes or Bare stalls . c/m VT 227 
Heavy Lifts 
Any package of a unit weight of 2T or over will be ch arged at the rate applicable to their category, and a 
surtax added as under, applicable on tonnage unit gross weight: 
* From 2 to 3 tons VT 230 
* From 3 to 5 tons VT 703 
* From 5 to 8 tons VT 977 
* From 8 to 20 tons VT 1,251 
Above 20 tons, price to be discussed with the client.  However, palletised goods of 2 tons and 2.5 tons, unit 
weight, will not be subject to this surtax. 
Returning Empty Pallets (Australia) VT 64 
Stevedoring Pallets VT 154 
Special Cases: 
1. Refrigerated or frozen goods, will be held at the cu stomers disposal within 2 hours after their un-loading. 
2. Cement the stevedore may either require the customers of the cement to remove it immediately, or have 
it removed on the customers behalf at his cost. 
3. By agreement with the Customs Department, the Director of the Port, ma y authorize the immediate 
removal of particular lots of merchandise. 
AGRICULTURAL FEES 
Description of Service Basis of Charge Tariff (VT) 
PERMITS AND CERTIFICATES 
Import permit for nursery stock, plants, plant materials and 
seeds per permit 700 
Phytosanitary certificate for plants, plant materials and 
seeds per certificate 700 
Inspection certificate for artefacts, ti mber and furniture per certificate 700 
Inspection certificate for cocoa per certificate 700 
Derating Certificate per certificate 3,000 
FUMIGATION OF NATURAL PRODUCTS 
Timber 
Fumigation of timber with methyl bromide at a quarantine 
station per cubic metre 1,000 
Fumigation for additional cubi c metre of timber at a 
quarantine station per cubic metre 500 
Fumigation of timber with methyl bromide outside a 
quarantine station per cubic metre 1,500 
Fumigation for additional cubic metre of timber outside a 
quarantine station per metre 1,000 
Kava 
Fumigation of kava with methyl bromide at a quarantine 
station per cubic metre 1,800 
Fumigation of kava with methyl bromide outside a 
quarantine station for kava per cubic metre 3,400 WT/ACC/SPEC/VUT/8 
Page 50  
 
  Description of Merchandise Basis of Charge Tariff (VT) 
Fumigation for additional cubic metre of kava at a 
quarantine station or outside a quarantine station per cubic metre 600 
Copra 
Fumigation of copra with meth yl bromide at a quarantine 
station per cubic metre 1,000 
Fumigation of copra with methyl bromide outside a 
quarantine station per cubic metre 2,000 
Fumigation of additional cubic metre of copra at a 
quarantine station or outside a quarantine station per cubic metre 500 
Cocoa beans 
Fumigation of cocoa beans at quarantine station per cubic metre 1,000 
Fumigation for additional cubic metre of cocoa beans at a 
quarantine station per cubic metre 500 
Fumigation of cocoa beans outside a quarantine station per cubic metre 1,500 
Fumigation for additional cubic metre of cocoa beans 
outside a quarantine station per cubic metre 600 
Coffee beans 
Fumigation of coffee beans at quaran tine station per cubic metre 1,000 
Fumigation for additional cubi c metre of coffee beans at 
quarantine station per cubic metre 600 
Fumigation of coffee beans outside a quarantine station per cubic metre 1,500 
Fumigation for additional c ubic metre of coffee beans 
outside a quarantine station per cubic metre 600 
Other produce 
Fumigation of other fresh produce up to 1,000 kg e.g. taro, 
yam, bean, ginger, corn per cubic metre 1,000 
Additional cost per 500 kg over 1,000 kg for fumigation of 
other produce, e.g. taro, yam, bean, ginger, corn per cubic metre 600 
OTHER TREATMENTS 
Artefacts 
Treatment of artefacts less than 0.5 cubic metres per cubic metre 700 
Treatment of artefacts from 0.5 to 1.0 cubic metres per cubic metre 1,000 
Treatment of additional cubic metre of artefacts per cubic metre 600 
Personal luggage and individual risk goods 
Treatment of personal luggage less than 0.5 cubic metres per cubic metre 1,000 
Treatment of personal luggage from 0.5 to 1.0 cubic metres per cubic metre 1,500 
Additional cubic metre of treatment of personal luggage per cubic metre 600 
Treatment of individual risk goods per treatment 500 
Trochus shells and other things 
Treatment of trochus shells per cubic metre 1,000 
Treatment of other things at a quarantine station per treatment 1,000 
Treatment of other things outside a quarantine station per treatment 3,800 
INSPECTIONS 
Personal effects, household effects or baggage 
Inspection of personal effects,  household effects or baggage 
up to 0.5 cubic metres per inspection 1,000 
Inspection of personal effects,  household effects or baggage 
over 0.5 cubic metres but less than shipping container  per inspection 2,100 
Inspection of shipping container of personal effects, 
household effects or baggage per container 5,200 
Plant material and produce 
Inspection of export consignment of nursery stock or fresh-
cut flowers per consignment 1,000 
Inspection of import consignment of nursery stock or fresh-
cut flowers per consignment 1,700  WT/ACC/SPEC/VUT/8 
 Page 51 
 
 
  Description of Merchandise Basis of Charge Tariff (VT) 
Inspection of export consignment of fresh fruits or 
vegetables per consignment 1,000 
Inspection of import consignment of fresh fruits or 
vegetables per consignment 2,000 
Inspection of export or import consignment of seeds per consignment 800 
Inspection of cocoa per consignment 1,400 
Inspection of export or import consignment of other plant 
materials per consignment 800 
Inspection of export or import consignment of stored 
produce per consignment 1,000 
Inspection of export or import timber, poles, plywood or 
other timber products per consignment 2,200 
Inspection of bulk feed shipment per consignment 3,000 
Vehicles and machinery 
Inspection of used vehicle per vehicle 1,600 
Inspection of used vehicle parts or used tyres per inspection 2,000 
Inspection of used tracked vehicles or agricultural 
machinery per inspection 3,000 
Miscellaneous 
Inspection of trade samples per consignment 500 
Inspections of artefacts per consignment 700 
Inspection of empty shipping container per container 1,000 
Inspection of transitional facility other than quarantine 
facility per hour 2,000 
Inspection of private quarantine facility per year 30,000 
Miscellaneous outside of normal business hours inspection per hour 1,500 
Second or subsequent inspection per inspection 2,000 
Storage 
Storage per day 500 
Fumigation of other goods 
Fumigation of commercial quantities of second hand 
clothes at a quarantine station per cubic metre 1,000 
Fumigation of commercial quantities of second hand 
clothes outside a quarantine station per cubic metre 1,500 
Fumigation for additional cubic metre of commercial 
quantities of second hand clothes at a quarantine station or 
outside a quarantine station per cubic metre 500 
AT THE END OF THE SCHEDULE 
Services 
Service call during official hours per trip 2,500 
Service call during unofficial hours per trip 3,000 
Working privately requested during hours or part thereof per hour 2,000 
Work privately requested outside normal hours outside 
quarantine station per hour 4,000 
Destruction of items per cubic metre 2,500 
Surveillance of discharge of cargo during normal working 
hours per visit 2,500 
Surveillance of discharge of cargo outside normal working 
hours per visit 4,000 
Annual costs of compliance auditing of facility other than 
quarantine facility per visit 50,000 
Growing and monitoring of an imported plant species for 
pest or disease tests per consignment 20,000 
Growing and monitoring of plant species not requiring tests 
for pests or disease per consignment 2,000 WT/ACC/SPEC/VUT/8 
Page 52  
 
  Description of Merchandise Basis of Charge Tariff (VT) 
Supervising disposition of goods per hour 2,300 
Supervising fresh produce (fruits/vegetables) treatment per consignment 1,000 
Clearance of international aircraft 
 A. Seating capacity of up to 30 passengers 
B. Seating capacity from 30 but less than 60 passengers 
C. Seating capacity from 60 but less than 130 passengers 
D. Seating capacity from 130 but less than 220 
passengers 
E. Seating capacity of over 220 passengers  
 per flight  
per flight 
per flight 
per flight 
 per flight  
 
2,500 
3,000 
4,000 
5,000 
 
6,000 
Clearance of International Vessel 
 
A. Cruise ship B. Yacht 
C. Other vessels  
 
per voyage per voyage 
per voyage  
 
20,000 
2,500 
10,000 
Travel overnight cost per night 5,000 
Overtime per hour 1,500 
Garbage disposal - vessels, yachts, other craft per cubic metre 3,000 
  
   WT/ACC/SPEC/VUT/8
 Page 53Table 7(a):  Vanuatu's Negative List Under the MSG Trade Agreement  
HS 6-digit Vanuatu HS tariff code Description MFN 
Rate 2009 
Tariff 
Rate 2010 
Tariff 
Rate 2011 
Tariff 
Rate 2012 
Tariff 
Rate 2013 
Tariff 
Rate 
0207.11 0207.12 0207.1100 
0207.1200 Fresh or chilled whole chickens 
Frozen whole chickens 55% 
55% 12% 
12% 10% 
10% 8% 
8% 6% 
6% 0 
0 
0403.10 0403.1000 Yoghurt 40% 12% 10% 8% 6% 0 
0407.00 0407.0090 Birds eggs, in shell, fresh, preserved or 
cooked 35% 12% 10% 8% 6% 0 
 
0901.11 
 
 0901.21 09.01 
0901.1100 
 
 0901.2100 Coffee not roasted 
Not decaffeinated 
 
Coffee roasted Not decaffeinated  
30% 
 
 
25%  
10% 
 
 
10%  
8% 
 
 
8%  
6% 
 
 
6%  
6% 
 
 
6%  
0 
 
 
0 
1602.50 1602.5010 Canned beef  40% 12% 10% 8% 6% 0 
1905.90 1905.9010 Breakfast crackers 50% 8% 6% 0 0 0 
2009 
 
  
2009.11 
 2009.31 
2009.39 
 2009.41 
 
2009.49 2009.80 
2009.90  
 
  
2009.1100 
 2009.3100 
2009.3900 
 2009.4100 
 
2009.4900 2009.8000 
2009.9000 Fruit juices (including grape must) and 
vegetable juices, unfermented and not 
containing added spirit, whether or not etc. 
Frozen orange juice 
 Other single citrus fruit not exceeding 20 
other 
 Pineapple juice 
Of a Brix value not ex.20 
Other Juice of other single fruit 
Mixture of juices  
 
  
40% 
 
40% 
40% 
 
40% 
40% 
40% 40% 
40%  
 
  
12% 
 
12% 
12% 
 
12% 
12% 
12% 12% 
12%  
 
  
10% 
 
10% 
10% 
 
10% 
10% 
10% 10% 
10%  
 
  
8% 
 
8% 
8% 
 
8% 
8% 
8% 8% 
8%  
 
  
6% 
 
6% 
6% 
 
6% 
6% 
6% 6% 
6%  
 
  
0 
 
0 
0 
 
0 
0 
0 
0 
0 
2105.00 2105.0000 Ice-cream 40% 12% 10% 8% 6% 0 
2201.11 2201.1000 Mineral water (unsweetened)  30% 12% 10% 8% 6% 0 
3208.10 
3208.20 
3208.90 
3209.10  
3209.90 
3210.00 3208.1000 
3208.2000 
3208.9000 
3209.1000  
3209.9000 
3210.0000 Paint Based on polyester 
Paint Bases on acrylic or vinyl polymers 
Other paints 
Paints based on acrylic or vinyl polymers 
Other paints 
Other paints and varnishes VT 280/ltr 
VT 280/ltr 
VT 280/ltr 
VT 280/ltr 
 
VT 280/ltr 
VT 280/ltr 12% 
12% 
12% 
12% 
 
12% 
12% 10% 
10% 
10% 
10% 
 
10% 
10% 8% 
8% 
8% 
8% 
 
8% 
8% 6% 
6% 
6% 
6% 
 
6% 
6% 0 
0 
0 
0 
 
0 
0  
  WT/ACC/SPEC/VUT/8 
Page 54 HS 6-digit Vanuatu HS tariff code Description MFN 
Rate 2009 
Tariff 
Rate 2010 
Tariff 
Rate 2011 
Tariff 
Rate 2012 
Tariff 
Rate 2013 
Tariff 
Rate 
3401.11 3401.20 
3401.19 
  
3402.11 
3402.12 3402.13 
3402.19 3401.1100 
3401.2000 
3401.1900 
  
3402.1100 
3402.1200 3402.1300 
3402.1900 Soap for toilet use 
Soap in other forms 
(Coconut Soap products) Soap and 
organic surface-active products in bars, etc, nes 
Anionic-Organic Surface-active agents 
Cationic Non-ionic 
Other 50% 
35% 
35% 
  
30% 
30% 30% 
30% 12% 
12% 
12% 
 
 
12% 
12% 12% 
12% 10% 
10% 
10% 
  
10% 
10% 10% 
10% 8% 
8% 
8% 
  
8% 
8% 8% 
8% 6% 
6% 
6% 
  
6% 
6% 6% 
6% 0 
0 
0 
  
0 
0 0 
0 
 3925.1000 
 Poly tanks, Fibreglass water tanks and 
eskies 30% 12% 10% 8% 6% 0 
 44.07 
4407.1000 
4407.2400 
  
 
4407.2500 
 
4407.2600  
4407.2900 
4407.9100 4407.9200 
4407.9900 Sawn timber 
Coniferous 
Other of tropical wood specified in 
subheading Note 1 to this chapter….Viola, Mahogany (swietenia 
spp), Imbuia and Balsa 
Dark red Meranti, Light Red Meranti 
and Meranti bakau 
White Lauan, White Meranti, White Seraya, Yellow Meranti and Alain 
Other 
Of oak ( Ouercus spp ) 
Of beech (Fagus spp) 
Other  
40% 
40% 
  
 
40% 
 
40% 
 
40% 
40% 40% 
40%  
12% 
12% 
  
 
12% 
 
12% 
 
12% 
12% 12% 
12%  
10% 
10% 
  
 
10% 
 
10% 
 
10% 
10% 10% 
10%  
8% 
8% 
  
 
8% 
 
8% 
 
8% 
8% 8% 
8%  
6% 
6% 
  
 
6% 
 
6% 
 
6% 
6% 6% 
6%  
0 
0 
  
 
0 
 
0 
 
0 
0 0 
0 
4818.10 4818.1000 Toilet paper  40% 12% 10% 8% 6% 0 
6204. 
 6204.42 
6204.43 
6204.44 6204.49  
 6204.4210 
6204.4310 
6204.4410 6204.4910 Dresses (Island Dresses/MARI 
BROUSES) Of cotton 
Of Synthetic Fibres 
Of artificial Fibres Of other textile material  
 
40% 
40% 
40% 40%  
 
6% 
6% 
6% 6%  
 
0 
0 
0 0  
 
0 
0 
0 0  
 
0 
0 
0 0  
 
0 
0 
0 0 
7210.41 
7210.49 
7210.70  
7210.90 7210.4100 
7210.4900 
7210.7000  
7210.9000 Corrugated  
Other corrugated 
Painted, varnished or coated with plastics 
Other plated or coated with aluminium  15% 
15% 
15% 
 
15% 6% 
6% 
6% 
 
6% 0 
0 
0 
 
0 0 
0 
0 
 
0 0 
0 
0 
 
0 0 
0 
0 
 
0 
7308.30 7308.3000 Doors windows and their frames and 
thresholds 15% 6% 0 0 0 0  
   WT/ACC/SPEC/VUT/8
 Page 55HS 6-digit Vanuatu HS tariff code Description MFN 
Rate 2009 
Tariff 
Rate 2010 
Tariff 
Rate 2011 
Tariff 
Rate 2012 
Tariff 
Rate 2013 
Tariff 
Rate 
7309.00  
7310.10 
  
7310.29 7309.0000 
 
7310.1000 
  
7310.2900 Reservoirs, tanks and similar containers 
of iron or steel 
Tanks, and similar containers of iron or 
steel, of a capac ity not exceeding 
300 litres 
Tanks of iron or steel exceeding 
300 litres 30% 
 
30% 
  
30% 12% 
 
12% 
  
12% 10% 
 
10% 
  
10% 8% 
 
8% 
  
8% 6% 
 
6% 
  
6% 0 
 
0 
  
0 
 7610.1000 
 
7610.9000 
 7611.0000 Doors, windows and their frames and 
thresholds for doors 
Aluminium structures and parts of 
structures Aluminium reservoirs and tanks  30% 
 
30% 
 
30% 12% 
 
12% 
12% 10% 
 
10% 
 
10% 8% 
 
8% 
 
8% 6% 
 
6% 
 
6% 0 
 
0 
 
0 
 8903.9910 
8903.9920 Aluminium and Fibreglass boats 
Aluminium and Fibreglass boats (4 - 8 
meters inclusive) 30% 
30% 12% 
12% 10% 
10% 8% 
8% 6% 
6% 0 
0 
 
 9401.8000 
 Fibreglass furniture 
(To consider subdivision) 35% 12% 10% 8% 6% 0 
 9403.3000 
 9403.4000 
 
9403.5010  
9403.5090 
9403.6000 Wooden furniture of a kind used in 
offices Wooden furniture of a kind used in the 
kitchen 
Wooden furniture of a kind used in the bedroom: 
Camphorwood chests and the like 
Other  Other wooden furniture 35% 
 
35% 
 
35% 
 
35% 
35% 12% 
 
12% 
 
12% 
 
12% 
12% 10% 
 
10% 
 
10% 
 
10% 
10% 8% 
 
8% 
 
8% 
 
8% 
8% 6% 
 
6% 
 
6% 
 
6% 
6% 0 
 
0 
 
0 
 
0 
0 
 9406.0000 Prefabricated building of steel 5% 12% 10% 8% 6% 0  
  WT/ACC/SPEC/VUT/8 
Page 56 SCHEDULE III 
Schedule of Import Duty Reductions for Purposes of Article  9 
Year 2005 Year 2006 Year  2007 Year 2008 Year 2009 Year 2010 Year 2011 Year 2012 Year 2013 
30 25 20 15 12 10 8 6 0 
25 20 15 12 10 8 6 0  
20 15 12 10 8 6 0   
15 12 10 8 6 0    
12 10 8 6 0     
10 8 6 0      
8 6 0       
6 0        
0         
 
Notes:  
(i) Where the negative rate rest between the two rates the highe r of the range will be taken as the point of entry for reductio n in import duty rates.  
(ii) Based on the excepted import duty rates for each respective Pa rty disclosed in Schedule II, the rate declared for each pro duct will be reduced according to 
the above Schedule III.  
  WT/ACC/SPEC/VUT/8 
 Page 57 
 
 
  Table 7(b):  Vanuatu's List of Excepted Products Under the PICTA  
Vanuatu 
Meat and edible offal of the poultry of heading No. 0105, 
fresh, chilled or frozen 0207.0000 50% 
Birds eggs, in shell, fresh, preserved or frozen 0407.0000 50% 
Canned beef 1602.5000 25% 
Fruit juices 2009.0000 50% 
Ice cream 2105.0000 50% 
Paints and varnishes, including enamels and lacquers (Oil 
based) 3208.0000 VT 350/ltr 
Paint and varnishes, including enamels and lacquers (water 
based) 3209.0000 VT 350/ltr 
Other Paints and Varnishes, including enamels and lacquers 3210.0000 VT 350/ltr 
Pigments used to manufacture paint; and dyes 3212.0000 VT 350/ltr 
Fibreglass tanks exceeding 300 litres 3925.1000 30% 
Toilet Paper 4818.1000 50% 
Fibre glass boats 8903.9900 35% 
Wooden furniture - Offices 9403.3000 35% 
Wooden furniture - Kitchen 9403.4000 35% 
Wooden furniture - Bedroom 9403.5000 35% 
Wooden furniture - Other 9403.6000 35% 
Plastic Furniture 9403.7000 35% 
Pre fabricated buildings 9406.0000 30% WT/ACC/SPEC/VUT/8 
Page 58  
 
  APPENDIX  
[Draft Decision] 
ACCESSION OF VANUATU 
 
Decision of [      ]  
 The General Council, 
 Having regard to paragraph 2 of Article XII a nd paragraph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organizati on (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of th e WTO Agreement agreed by the General Council 
(WT/L/93); 
 Conducting the functions of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;  
 Taking note of the application of Vanuatu for accession to the Marrakesh Agreement 
Establishing the World Trade Organization dated 7 June 1995; 
 Noting the results of the negotiations direct ed toward the establishment of the terms of 
accession of Vanuatu to the WTO Agreement and having prepared a Draft Protocol on the Accession 
of Vanuatu;  
 Decides as follows: 
  Vanuatu may accede to the WTO Agreement on the terms and conditions set out in the Draft 
Protocol annexed to this Decision. 
 
_______________ 
 
 
  WT/ACC/SPEC/VUT/8 
 Page 59 
 
 
  [DRAFT PROTOCOL  
ON THE ACCESSION OF VANUATU] 
 
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the 
approval of the General Council of the WTO accorded  under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinaft er referred to as the "WTO Agreement"), and 
Vanuatu,  
 Taking note of the Report of the Workin g Party on the Accession of Vanuatu to the 
WTO Agreement reproduced in document WT/ACC/VUT/[  ], dated [  ] (hereinafter referred to as the 
"Working Party Report"), 
 Having regard to the results of the nego tiations on the accession of Vanuatu to the 
WTO Agreement, 
 Agree as follows: 
PART I - GENERAL 
1. Upon entry into force of this Protocol pur suant to paragraph 8, Vanuatu accedes to the 
WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the 
WTO. 
2. The WTO Agreement to which Vanuatu acced es shall be the WTO Agreement, including 
the Explanatory Notes to that Agreement, as rectifie d, amended or otherwise modified by such legal 
instruments as may have entered into force before the date of entry into force of this Protocol.  
This Protocol, which shall include the commitments referred to in paragraph [138] of the Working 
Party Report, shall be an integral part of the WTO Agreement.   
3. Except as otherwise provided for in paragra ph [138] of the Working Party Report, those 
obligations in the Multilateral Tr ade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by Vanuatu as if it had accepted that Agreement on the date of its entry into force. 
4. Vanuatu may maintain a meas ure inconsistent with paragra ph 1 of Article II of the GATS 
provided that such a measure was recorded in th e list of Article II Exemptions annexed to this 
Protocol and meets the conditions of the A nnex to the GATS on Article II Exemptions.   
PART II - SCHEDULES 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitments annexed to the General Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Commitments annexed to the General Agreement on Trade in Services (hereinaft er referred to as "GATS") relating to Vanuatu.  
The staging of concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the respective Schedules. WT/ACC/SPEC/VUT/8 
Page 60  
 
  6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date 
of that Agreement, the applicable date in resp ect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
PART III - FINAL PROVISIONS 
7. This Protocol shall be open for acceptance, by signature or otherwise, by Vanuatu until  
[       ]. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Vanuatu. 
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-
General of the WTO shall promptly furnish a certifie d copy of this Protocol and a notification of 
acceptance by Vanuatu thereto pursuant to paragraph 9 to each Member of the WTO and to Vanuatu.   
 This Protocol shall be registered in accordance with the provisions of Article 102 of the 
Charter of the United Nations. 
 Done at [   ] this [   ] day of  [   ] two thousa nd and [   ], in a single copy in the English, French 
and Spanish languages, each text being authentic, except that a Schedule annexed hereto may specify 
that it is authentic in only one of these languages. 
 
_______________  WT/ACC/SPEC/VUT/8 
 Page 61 
 
 
  ANNEX I 
SCHEDULE [   ] - VANUATU 
Authentic only in the [    ] language 
 (Circulated in document WT/ACC/VUT/[...]/Add.1) 
_______________ 
 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the [   ] language 
(Circulated in document WT/ACC/VUT/[   ]/Add.2) 
 
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