RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/TON/16 
28 October 2005 
 (05-5011) 
Working Party on the 
Accession of Tonga Original:   English 
 
 
 
ACCESSION OF TONGA 
 
Additional Questions and Replies  
 
 
 The following submission is being circulated at the request of the Delegation of the Kingdom of Tonga.   
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  WT/ACC/TON/16 
 Page i 
 
 
 TABLE OF CONTENTS 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......1  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................2  
A. IMPORT REGULATIONS......................................................................................................2  
1. Fees and Charges for Services Rendered................................................................................2  
2. Application of Internal  Taxes to Imports ...............................................................................2  
3. Customs Valuation.............................................................................................................. ......2  
4. Rules of origin ................................................................................................................ ...........3  
B. EXPORT REGULATIONS .....................................................................................................3  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... ...........3  
- Export rest rictions ............................................................................................................ ........4  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.........................................4  
- GENERAL........................................................................................................................ .........4  
VII. TRANSPARENCY ................................................................................................................... 6 
- Publication of information on trade........................................................................................6  
 
  WT/ACC/TON/16 
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 II. ECONOMIC POLICIES 
- Foreign Exchange and Payments Question 1 Paragraph 13:   Tonga says that the "repatriat ion" requirements, which are really a series of 
restrictions on financial flows, can be repealed when reserves hit a certain amount.  We want to 
know how close we are to the magi c 3-4 months import cover.   
Paragraph 14:  This paragraph is contradictory and duplicative.  All the information is 
contained in the paragraph above.  It should be eliminated. 
Paragraph 14 bis  We disagree with Tonga that QRs on imports are the only methods of 
restriction covered by the BOP provisions of the WTO.  As the international monetary system 
has evolved, other restrictions that have the sa me effect on trade have been recognized as 
covered.  However, we are prepared not to en gage the issue directly, and be satisfied with a 
straight commitment to apply such measures in conformity with WTO provisions.  We offer the 
following text: 
14bis.  The representative of  Tonga confir med that from the date of accession 
his government would ensure that the authority in Tonga's laws to apply 
measures for balance of payments purposes would be applied in a manner consistent with the requirements of th e understanding on balance-of-payments 
provisions of the GATT 1994, as well as Article XII of the GATT 1994.  The working party took note of these commitments. 
Answer:
 
Paragraph 13 - 14.  Please refer to revise d Draft Report (WT/ACC/SPEC/TON/4/Rev.4). 
- Investment Regime 
Question 2 Paragraph 20:  Why has Tonga eliminated the final sentence of this paragraph, i.e., "He 
confirmed that benefits granted to investors under the Act would be eliminated upon revocation 
of the Act."  What will be the status of benefits granted to investors after the Act is revoked?  If 
they are not eliminated, we need to know how long  they will last.  They must, at some point be 
eliminated, so we are interested to know when that will happen. 
Paragraph 22:  We do not see this paragraph as duplicative, as it explains directly what is 
happening and what will happen.  The commitm ent language should be restored to this 
paragraph and it should be included in the protocol.   
Answer:
 
Paragraph 20:  Tonga proposed the deletion of the fi nal sentence of this paragraph, i.e. "He confirmed 
that benefits granted to investors under the Act woul d be eliminated upon revocation of the Act.", as it 
duplicates information in paragraph 22, i.e. "All bene fits provided for in the IDI Act would thereby be 
eliminated".  Tonga can include the final sentence of paragraph 20. 
Paragraph 22:  Please refer to text in revi sed Draft Report (WT/ACC/SPEC/TON/4/Rev.4). WT/ACC/TON/16 
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 IV. POLICIES AFFECTING TRADE IN GOODS 
A. IMPORT REGULATIONS 1. Fees and Charges for Services Rendered Question 3 Paragraph 65:  We appreciate the added material.  We suggest a further elaboration, by 
indicating the range of charges for the fee. 
Answer:
 
As detailed in paragraph 48, annual business licence fees are provided in Table 4 of the Working 
Party report. 
2. Application of Internal Taxes to Imports 
Question 4 
Paragraph 71:  The list of Consumption Tax exemptions and zero rates should be either 
included as an annex in the WP report, or given a unique number.   
Answer:  
The list of Consumption Tax exemptions and zero rati ngs is included in Table 6 of the Working Party 
Report. 
3. Customs Valuation 
Question 5 Paragraph 85-86:  We look forward to reviewing Tonga's legislation for Customs Valuation 
prior to accession, and we seek change of the pr oposed transition to 1 January 2008, in light of 
the fact that all legislation will be in place prior to 31 December 2006. 
Paragraph 88 and Table 8 (old Table 7):  We will need to see the draft law prior to finalizing the 
negotiations.  We attach a revised chart (see belo w).  We accept the need for a longer transition, 
but wonder if 1 January 2008 wouldn't be sufficient,  as all the laws and regulations will be in 
place from 31 December 2006.  We would prefer the transition be curtailed to 1 January 2008. 
Action Deadline 
Working Party review of draft te xt of Bill Prior to accession 
Drafting of regulations fo r implementation of amended 
Customs and Excise Act Prior to accession 
Education program - Customs officials, related Tongan 
Government staff,  and Customs clients Commence November 2005 
Customs Specialist Valuation tr aining Commence November 2005 
Development of Administrative Guidelines for Customs 
staff No later than  
31 December 2005 
Articles 1, 8, 2, 3 and 7 pl us associated Articles (i.e. 
Articles 9, 10, 12, 13, 16 and 17) of the WTO Agreement:  
implementation phase  No later than 31July 2006  WT/ACC/TON/16 
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 Action Deadline 
Article 11 of the WTO Agreement:  implementation 
(separate Parliamentary action) No later than 31 July 2006  
Parliamentary passage of Bill No later than  
31 December 2006 
Cabinet endorsement of ame nded Customs and Excise 
Act Regulations No later than 31 December 2006 
Articles 5 and 6 of the WT O Agreement;  implementation 
phase No later than  
31 December 2006  
Further education program and refresher training for 
Customs and related Tongan Government staff On-going 
Full implementation of the Agreement on the 
Implementation of Article VII of the GATT 1994. No later than 1January 2008 
 
Answer:  
Tonga will circulate the draft legislation to members of the Working Party on 24 October 2005. Paragraph 85-86:  Please refer to revise d Draft Report  (WT/ACC/SPEC/TON/4/Rev.4). 
Paragraph 88 and Table 8 (old Table 7):  Please refer to revised Draft Report  
(WT/ACC/SPEC/TON/4/Rev.4). 
4. Rules of origin 
Question 6 If the implementation of Article 2(h) and Annex II, paragraph 3(d) depends on the same law as 
customs valuation, how will Tonga be able to implement the measure by the date of accession?  Please clarify. 
Answer:
 
Tonga notes that it only has preferential rules of origin, under the PICTA.  If Tonga introduces non-
preferential rules of origin, it will be in full conf ormity with the WTO Agreement on Rules of Origin 
from the date of accession. 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 7 Paragraph 99:  Please confirm that the fee (or fe e structure) for a business licence to export is 
the same as for importing.  If not, please clarif y the basis for a different fee, i.e., based on the 
cost of services rendered. 
Answer:
 
As detailed in paragraph 48, annual business licence fees are provided in Table 4 of the Working 
Party report.  Tonga confirms that there is one fee structure for business licences for all business 
activities (e.g. importing, exporting) and therefore the fee structure for a business licence to export is 
the same as the fee structure for a business licence to import. WT/ACC/TON/16 
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 - Export restrictions 
Question 8 Paragraph 102:  Exportation, not importation. 
Answer:
 
Paragraph 102.  Please refer to revised Draft Report (WT/ACC/SPEC/TON/4/Rev.4). V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME - GENERAL Question 9 Paragraphs 164:  We are willing to agree with the extended transition, but characterizing it as 
"two years from the date of accession" is unn ecessary.  That phrase should be eliminated.  
Tonga either is, or is not, capable of implementing TRIPS within the time frame proposed, i.e., 
prior to 30 June 2008.  How long that is from  the date of accession isn't really relevant. 
Paragraph 165:  We really do not understand why Tonga is reluctant to take normal 
commitments for the protection of undisclosed info rmation.  Most accession applicants have 
already incorporated these provisions in their la ws and are prepared to take a commitment.  
We require that Tonga accept this, or give a good  reason why not.  The proposed language is as 
follows: 
The representative of Tonga also stated that, should a transition be granted, 
existing rates of infringement would not in his view increase significantly over this transition period and that any infringement of intellectual property rights would be addressed immediately in c ooperation and with assistance from 
affected right holders.  He further confirmed that during the transition period, that 
Tong a would protect against unfair commerci al use of undisclosed test or other 
data submitted in support of app lications for marketing appr oval of pharmaceutical 
or of agricultural chemical products which utilize new chemical entities, by providing that no person other than the person who submitted such data may, 
without 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 Tonga granted marketing approval to the person that produced the data.  Prior to the issuance of marketing approval of any pharmaceutical and agricultural chemical products, the relevant Ministries in Tonga will determine the existence of 
a patent covering a product for which an application for marketing approval had 
been filed by a party other than the patentee, and will not approve such application 
for marketing approval until the date of the expiration of such patent.  [Note:  The protection of undisclosed data is required  under TRIPS Article 39.3.  We expect 
that this protection will be granted from the date of accession.  We cannot agree to 
any transition for TRIPS implementation unless Tonga is willing to protect these 
rights in the interim.  End note]  He added that Tonga would seek out all 
available technical assistance to ensure th at its capacity to enforce fully 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 Tonga presented an Action Plan setting out details of the steps  WT/ACC/TON/16 
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 that still remained to be taken in order to achieve this objective and a timetable 
for each step (Table 10 (old Table 9)).   
We attach a revised Table 10 (old Table 9). 
Table 10 (old Table 9):  Action Plan fo r conformity with the TRIPS Agreement  
 
Action Deadline 
Drafting of new legislations, covering: 
 - protection of undisclosed in formation and trade secrets; 
- plant variety protection; and 
- general and enforcement obligations under the 
TRIPS Agreement. Protection of undisclosed information 
and trade secrets is provided for by section 9 of the Protection Against 
Unfair Competition Act 2002 
  [Plant variety protection legislation will 
be drafted no later than 
31 December 2006] 
Drafting of amendments to existing legislations to address deficiencies vis-à-vis the WTO Agreement on TRIPS as 
identified in response to WT/ACC/9, specifically: 
 
- Industrial Property Act 1994; and 
- Copyright Act 2002. Prior to accession 
 
Copyright Act 2002 has been enacted. 
 
Amendments to Industrial Property Act 
2004 have been endorsed by the Cabinet and submitted to the Law Reform 
Committee for verification. 
Circulation of draft legisl ation addressing remaining 
deficiencies vis-à-vis  the WTO TRIPS Agreement in Tonga's 
intellectual property rights regime.  Prior to accession 
Parliamentary passag e of new legislations and amendments 
to existing legislations. [No later than 31 December 2006] 
 
Drafting of implementing re gulations for Intellectual 
Property legislations, specifically:  
- Geographical Indications Act 2002; 
- Protection of Layout Designs (Topographies) of 
Integrated  Circuits Act 2002; and 
- new legislations required, as detailed above. Regulations for the Geographical 
Indications Act 2002 and the Protection of Layout Designs (Topographies) of 
Integrated Circuits Act 2002 have been 
endorsed by Cabinet and submitted to the Law Reform Committee. 
Development of manuals and operating procedures [No later than 30 June 2007] 
 
Appointment of staff [No later than 30 June 2007] 
 
Training of key IP personnel [N o later than 31 December 2007] 
 
Training for users (development of information brochure and training program) [No later than 30 June 2008] 
Full implementation of the Agreement on Trade-Related 
Aspects of Intellectual Property Rights. [No later than 30 June 2008] 
 
 
Answer:  
Paragraph 164:  Please refer to revised Draft Report (WT/ACC/SPEC/TON/4/Rev.4). 
Paragraph 165:  Tonga would like to confirm that it can accept normal commitments for the 
protection of undisclosed information.  It is able to accept the same commitment as other acceding 
countries to implement the provisions of TRIPS Artic le 39.3 and is willing to accept the obligation to 
implement the provisions of TRIPS Article 39.3 from the date of accession.  However, the acceptance 
of the TRIPS Agreement already demands a great effort on our part and we are simply unable to WT/ACC/TON/16 
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 persuade our authorities and our stakeholders that Tonga is able to accept the additional 
administrative burden required by the addition of the US language in bold capitals.  Tonga has very 
small administration with very limited financial r esources, as expected of a country with a total 
population of 102,000 and a GDP equivalent to only US$ 163 million.  We are also unable to persuade our authorities and stakeholders th at Tonga should accept commitments going beyond the 
text of the TRIPS Agreement which have, to  our knowledge, been accepted only by one WTO 
member, China. 
Table 10 (old Table 9):  Please refer to revi sed Draft Report  (WT/ACC/SPEC/TON/4/Rev.4). 
VII. TRANSPARENCY 
- Publication of information on trade 
Question 10 
Paragraph 178:  What is wrong with notification?  We remain convinced that actual 
implementation of the website for prior comment is a good commitment for Tonga.  We suggest 
a transition of two years to help ease implementation. 
Answer:
 
Tonga notes that notification is dealt with in the next sub-section of the Working Party report. 
As we have made clear, it is T onga's ambition to publish trade inform ation on a website.  However, its 
experience with this project has already demonstrated  the practical difficulty of achieving this aim in a 
country with a total population of 102,000 and a GDP  equivalent to only US$ 163 million and the fact 
that it is unable to commit itself to assume th e additional administrative burden required for an 
unlimited period. A transitional period would not so lve this problem.  Tonga is simply unable to 
accept a commitment to undertake publish all trade info rmation on a website.  We are also unable to 
persuade our authorities and stakeholders that Tonga should accept a commitment to prior publication 
that WTO Members do not have (other than China and Chinese Taipei) and that is the subject of 
ongoing negotiation in the Working Party on Trade Facilitation. 
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