WT/TPR/S/215/Rev.1 Trade Policy Review 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) OVERVIEW  
1. Since the last Review of Solomon Islands in 1998, the authorities have increased automation 
in customs procedures and adopted risk profiling as pa rt of efforts to enhance revenue collection and 
control.  Customs values are determined in accord ance with the Brussels Defi nition of Value.  The 
simple average applied MFN rate declined to 9.1% in 2008, from almost 23% ten years earlier.  There has also been a sharp fall in tariff dispersion.  Solo mon Islands has bound all of its tariffs, mostly at a 
rate of 80%;  some applied rates exceed their bindi ngs.  The rate of the goods tax applied on imports 
is 15%, compared with 10% on domestic goods;  certa in imported goods are not subject to the excise 
duties levied on the same goods produced domestically. 
2. Solomon Islands does not have legislation on c ontingency measures, nor has it ever applied 
such measures.  It has limited institutional capaci ty to adopt and enforce technical regulations, 
conformity assessment procedures, and SPS measur es, although some efforts are under way to 
strengthen capacity in the SPS area.  Solomon Islands  has never made a notification under the TBT or 
SPS agreements except to notify its SPS enquiry point. 
3. Export taxes are levied mainly on fish, minerals , and timber.  The taxes on timber and fish are 
levied on a value determined by the authorities.  Firms that export their entire output or satisfy domestic-value-added criteria may be eligible to dedu ct export profits for income tax purposes.  There 
are no official schemes for export finance and in surance.  There is an incipient institutional 
framework for export promotion. 
4. The authorities have prepared a draft law on business incorporation, and are reviewing the 
business registration system.  There is no active enfo rcement of the few statutory provisions designed 
to prevent anti-competitive business practices.  Price controls apply on various staples.  Import duty 
and tax exemptions are available to businesses, but guidelines issued in 2006 call for their approval to 
be based on cost-benefit considerations.  Some in come tax exemptions are granted on the basis of 
domestic-value-added criteria.  An Act adopted in  2007 seeks to improve the performance of state-
owned enterprises, but its implementation is awaiti ng the reconstruction of these enterprises' accounts 
and the formulation of regulations.  Solomon Isla nds is neither a party nor an observer to the 
Government Procurement Agreement.  It has not adopted any legislation to implement the TRIPS 
Agreement. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
5. Since the last Review of Solomon Islands, the authorities have increased automation in 
customs procedures and adopted risk profiling as part of their efforts to enhance control and revenue 
collection, which were found to be inadequate in a 2003 audit report. 
6. The Customs and Excise Division of the Ministry of Finance and Treasury implements 
customs policy. 
7. There are no registration requirements for impor ters who already have a tax identification 
number (TIN) from the Inland Revenue Division of the Ministry of Finance and Treasury.  Importers without a TIN must register with Customs, which automatically assigns to them a "customs client 
number". Solomon Islands WT/TPR/S/215/Rev.1 
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8. Imports must be reported to customs by lodgin g the cargo manifest, bill of lading or airway 
bill, commercial invoice, and customs declaration.  Additional information is required when importing 
goods subject to licensing (section (vi) below).  Fo r imports purchased on credit and valued at more 
than SI$50,000 (about US$6,530), information must be lodged also with the Central Bank to ensure 
compliance with foreign exchange regulations.  Cu stoms adopted the software package PC Trade in 
April 2008;  customs declarations must be filled out electronically using the electronic self-assessment declaration (eSAD). 
9. In the absence of complete information, impor ts may be allowed provisionally into Solomon 
Islands following payment of import duty and a su rcharge not exceeding 50% of the duty.  The 
surcharge is reimbursed if the information is presented within six months of importation. 
10. As part of PC Trade, the Customs and Excise Division has established "risk management 
profiling procedures" to identify high-risk shipment s.  Under these procedures, importers are assigned 
to one of three risk levels, based on past perfo rmance with respect to customs clearance and other 
criteria.  Importers' risk status is reviewed every th ree months.  The level of risk is also determined by 
the type of product in a shipment:  chemicals, explosives, film, electrical goods other than from 
Australia and the United Kingdom, video tapes, motor vehicles, and household effects are classified 
as high risk, while live animals and plants, animal  and plant products, noodles, tobacco, beverages 
and spirits, and second-hand clothes are considered medium risk. 
11. Shipments classified as high risk are subject  to physical examination and documentary 
review, while medium-risk shipments have a 50% ch ance of being subject to  documentary review;  
physical examinations of medium-risk shipments are carried out occasionally.  Low-risk shipments 
are not subject to physical examination or docum entary review, unless randomly selected.  According 
to the risk management profiling procedures, 5% of low-risk shipments are randomly selected for 
further inspection.  The authorities indicate that cu stoms clearance of low-risk shipments is usually 
completed in a few hours.  The World Bank estimates that shipments clear customs in three days, and 
that a further ten days are necessary to handle shipments inside the port.
1 
12. Following an audit conducted in 2003, the Office of the Auditor General noted that Customs' 
"inadequate controls resulted in sign ificant leakages in customs revenue".2  According to the 
authorities, the Customs and Excise Division has increased automation in customs procedures and 
taken other steps to enhance reve nue collection and goods control. 
13. Decisions by Customs may be challenged administ ratively or judicially.  Although there is no 
formal process for administrativ e challenges, the authorities indicate that importers may lodge 
complaints with the Minister of Finance and Treasury.  There are no data regarding the number of administrative challenges brought.  Judicial revi ew takes place through the High Court;  two cases 
were heard in 2008. 
14. Solomon Islands does not require preshipment inspection. 
(ii) Customs valuation 
15. Solomon Islands has not adopted legislation to  implement the Customs Valuation Agreement;  
customs values are assessed  according to the Brussels Definition of Value. 
                                                     
 
1 World Bank (2009). 
2 Office of the Auditor General (undated). WT/TPR/S/215/Rev.1 Trade Policy Review 
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16. Solomon Islands has not notified customs valu ation legislation to the WTO nor has it 
responded to the WTO checklist of issues on customs valuation.3  It did not invoke any of the 
provisions contained in the Customs Valuation Agreement regarding special and differential 
treatment. 
17. The authorities indicate that they determine cu stoms values using the Brussels Definition of 
Value.  Under the Customs and Excise Act, the customs value of imports is generally the "domestic value" plus the cost of p acking, freight, and insurance.
4  The domestic value is defined as the 
wholesale price of identical or similar goods in  the principal markets of the exporting country, 
excluding taxes.  When the "actual purchase pri ce" of imports exceeds the domestic value, the 
customs value is the actual purchase price.  The auth orities recognize that this valuation method is not 
in line with WTO disciplines. 
18. The Comptroller of Customs can waive the requi rement for complete information in support 
of the declared value if satisfied that it is "im possible" to obtain such information, or if the 
information presented is "sufficient to en able a reliable estimate of the value".5  The Comptroller of 
Customs must appoint two officers responsible fo r estimating the customs value when complete 
information is not available.  The legislation does not specify the valuation method to be used in these 
circumstances. 
19. Imports allowed into Solomon Islands without complete information on the customs value 
may be subject to a surcharge not exceeding 50% of the import duty.6  The surcharge is returned if 
complete information in support of the declared va lue is presented within six months of importation, 
or if the importer explains the failure to submit such information.  According to the authorities, 
waivers are rarely granted. 
20. The Comptroller of Customs is required to publis h periodic rates for the conversion of foreign 
currency amounts into domestic cu rrency for customs valuation purposes.7  The authorities indicate 
that the rates used by Customs are derived fro m commercial banks' selling rates and are published 
quarterly. 
21. The Customs and Excise Division can conduct po st-entry audits up to three years after 
importation.8  However, such audits are rare.9  Customs valuation decisions may be challenged 
administratively or judicially (see section (i) above). 
(iii) Rules of origin 
22. Solomon Islands does not maintain non-preferential rules of origin. 
23. As a party to the MSG Trade Agreement and the PICTA, Solomon Islands applies preferential 
rules of origin.  Goods containing inputs fro m non-MSG countries qualify for MSG preferences if 
they have been "sufficiently work ed or processed".  This criterion is  met when the goods are classified 
under a different four-digit tariff heading from their non-MSG inputs. 
                                                      
3 As required by WTO document G/VAL/5, 13 October 1995. 
4 Section 13(1), Customs and Excise Act, Chapter 121 of the Laws of Solomon Islands, 1 April 1960. 
5 Section 80, Customs and Excise Act. 
6 Section 81, Customs and Excise Act. 
7 Section 13, Customs and Excise Act. 
8 Section 229, Customs and Excise Act. 
9 Soni, Harries and Zinner-Toa (2007). Solomon Islands WT/TPR/S/215/Rev.1 
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24. Under PICTA, goods containing non-PICTA inputs must have been "substantially 
transformed" to qualify for preferential treatment.  Substantial transformation occurs when the final 
manufacturing process occurs in the exporting PICTA country, with at least 40% of material, labour, 
and overhead costs incurred in that country. 
25. To qualify for preferential treatment, importers must  submit to Customs a certificate of origin 
issued by the competent authority of the exporting country. 
(iv) Tariffs 
26. The simple average applied MFN rate declined  significantly during the review period, from 
almost 23% in 1998 to 9.1% in 2008.  Tariff dispersi on has also fallen sharply, with the vast majority 
of items carrying a 10% rate.  This is the result of successive reforms to improve resource allocation 
and revenue collection, and facilitate customs admini stration.  The reforms undertaken were key steps 
towards those objectives, but statutory and discretionary import duty exemptions partly undermine them, as well as the transparency of the tariff re gime.  Solomon Islands has bound all of its tariffs, 
mostly at a rate of 80%;  some applied rates ex ceed their bindings.  Correcting this problem, and 
locking in recent tariff reforms through lower bindi ngs would significantly enhance the predictability 
of the trade regime. 
27. Solomon Islands grants at least MFN tariff treatment to all WTO Members and non-
Members. 
28. The tariff schedule is contained in the First Schedule to the Customs and Excise Act, and 
specifies only MFN rates.  Cabinet must approve modi fications to the tariff schedule, including rates, 
before the Minister of Finance and Tr easury issues an order to that effect.
10  The latest amendment to 
the tariff schedule became effective in January 2007. 
(a) Structure and levels 
29. The tariff nomenclature is partially based on the Harmonized Commodity Description and 
Coding System (HS2002).  The authorities recognize the need to adopt the HS fully. 
30. The tariff schedule comprises 5,496 tariff lines at  the eight-digit level (Table III.1).  Non- ad 
valorem  tariff rates are applied on 1.3% of all tariff  lines, including wine, spirits, fuels, explosives, 
cinematographic film, video tapes, and goods subject to excise tax (section (v) below).  Solomon 
Islands does not apply seasonal or va riable tariffs, or tariff quotas. 
Table III.1 
Structure of the tariff schedule, 2009 
  2009 
1. Total number of tariff lines 5,496 
2. Non- ad valorem  tariffs (% of all tariff lines) 1.3 
3. Non- ad valorem  with no AVEs (% of all tariff lines) 1.3 
4. Tariff quotas (% of all tariff lines) 0.0 
5. Duty free tariff lines (% of all tariff lines) 0.6 
6. Dutiable lines tariff average rate (%) 9.2 
7. Domestic tariff "peaks" (% of all tariff lines)a 0.0 
8. International tariff "peaks" (% of all tariff lines)b 0.0 
9. Bound tariff lines (% of all tariff lines) 100.0 
a Domestic tariff peaks are defined as those exceed ing three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%. 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of Solomon Islands. 
                                                      
10 Section 7, Customs and Excise Act. WT/TPR/S/215/Rev.1 Trade Policy Review 
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31. The simple average applied MFN tariff is 9.1% , (Table III.2) down from almost 23% in 1998.  
The coefficient of variation is 0.2, reflecting a large degree of uniformity among rates.  The average 
applied tariff for agriculture (WTO definition) is  9.3%, slightly more than the average for non-
agriculture (9.1%).  These estimates exclude non- ad valorem  rates, because no data were available to 
calculate their ad valorem  equivalents. 
Table III.2 
Summary analysis of the MFN tariff, 2009 
 MFN 
Description No. of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Final bound 
average 
(%) 
Total 5,496 9.1 0 - 15 0.2 78.8 
HS 01-24 836 9.4 5 - 15 0.2 73.8 
HS 25-97 4,660 9.1 0 - 15 0.2 79.7 
By WTO category      
WTO Agriculture 769 9.3 5 - 15 0.2 71.3 
 - Animals and products thereof 99 8.8 5 - 10 0.2 86.1 
 - Dairy products 26 7.7 5 - 10 0.3 35.4 
 - Coffee and tea, cocoa, sugar, etc. 142 9.9 5 - 15 0.1 73.9 
 - Cut flowers, plants 34 10.0 10 - 10 0.0 9.3 
 - Fruit and vegetables 178 10.0 10 - 10 0.0 80.0 
 - Grains 16 5.0 5 - 5 0.0 71.9 
 - Oilseeds, fats and oils and their products 80 9.1 5 - 10 0.2 76.8 
 - Beverages and spirits 49 10.0 10 - 10 0.0 90.9 
 - Tobacco 11 10.0 10 - 10 0.0 80.0 
 - Other agricultural products n.e.s. 134 9.0 5 - 10 0.2 62.4 
WTO non-agriculture (incl. petroleum) 4,727 9.1 0 - 15 0.2 80.0 
 - WTO non-agriculture (excl. petroleum) 4,706 9.1 0 - 15 0.2 80.0 
 - Fish and fishery products 143 10.0 5 - 10 0.0 89.7 
 - Mineral products, precious stones and precious 
  metals 337 9.6 5 - 10 0.1 74.4 
 - Metals 618 8.0 5 - 10 0.3 80.0 
 - Chemicals and photographic supplies 882 7.9 5 - 15 0.3 77.5 
 - Leather, rubber, footwear and travel goods 168 10.0 5 - 10 0.0 80.0 
 - Wood, pulp, paper and furniture 261 9.8 5 - 10 0.1 80.0 
 - Textile and clothi ng 873 9.9 5 - 10 0.1 79.9 
 - Transport equipment 162 8.1 0 - 10 0.4 80.0 
 - Non-electric machinery 542 9.2 0 - 10 0.2 80.0 
 - Electric machinery 259 9.7 0 - 10 0.1 80.0 
 - Non-agriculture articles n.e.s. 461 9.7 0 - 10 0.1 85.8 
 - Petroleum 21 10.0 10 - 10 0.0 0.0 
By ISIC sectora      
Agriculture and fisheries 314 9.2 5 - 10 0.2 68.5 
Mining 101 9.9 5 - 10 0.1 80.0 
Manufacturing 5,080 9.1 0 - 15 0.2 79.5 
By HS section      
  01  Live animals & products 242 9.3 5 – 10 0.2 71.2 
  02  Vegetable products 287 9.5 5 - 10 0.2 65.5 
  03  Fats & oils 49 9.6 5 - 10 0.1 74.7 
  04  Prepared food, etc. 258 9.4 5 - 15 0.2 87.1 
  05  Minerals 169 10.0 5 – 10 0.0 80.0 
  06  Chemical & products 823 7.5 5 – 15 0.3 74.9 
  07  Plastics & rubber 217 10.0 5 – 10 0.0 80.0 
  08  Hides & skins 75 10.0 10 – 10 0.0 80.0 
  09  Wood & articles 88 10.0 10 – 10 0.0 80.0 
  10  Pulp, paper etc. 152 9.6 5 - 10 0.1 80.0 
  11  Textile & articles 865 9.9 5 - 10 0.1 80.0 
  12  Footwear, headgear 58 9.6 5 - 10 0.1 80.0 
  13  Articles of stone 145 10.0 10 - 10 0.0 80.0 
  14  Precious stones, etc. 56 10.0 10 - 10 0.0 80.0 
  15  Base metals & products 600 7.9 5 - 10 0.3 80.0 
  16  Machinery 832 9.4 0 - 10 0.2 79.7 
  17  Transport equipment 173 8.2 0 - 10 0.4 80.0 
  18  Precision equipment 240 9.7 0 - 10 0.2 92.7 
  19  Arms and ammunition 22 9.8 5 - 10 0.1 80.0 
Table III.2 (cont'd) Solomon Islands WT/TPR/S/215/Rev.1 
 Page 25 
 
 
 MFN 
Description No. of lines Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) Final bound 
average 
(%) 
  20  Miscellaneous manufacturing 138 9.8 5 - 10 0.1 80.0 
  21  Works of art, etc. 7 10.0 10 – 10 0.0 80.0 
By stage of processing      
First stage of processing 653 9.6 5 – 10 0.1 71.9 
Semi-processed products 1,768 8.5 5 - 15 0.3 78.8 
Fully-processed products 3,075 9.3 0 - 15 0.2 80.3 
 
a ISIC (Rev.2) classification, excluding electricity (1 line). 
 
Source: WTO Secretariat estimates, based on data provi ded by the Solomon Islands authorities. 
32. The sharp decrease in applied MFN rates betw een 1998 and 2008 is the result of successive 
reforms that sought to improve resource allocat ion, reduce duty evasion, and facilitate customs 
administration.  The number of ad valorem  tariff bands was decreased from five in 1998 to four by 
end 2005, with the maximum rate falling to 20% from 70%.  In January 2007, the authorities reduced 
the maximum rate by a further five percentage  points, and introduced a duty-free tariff band. 
33. Close to 82% of all ad valorem  tariff lines have an MFN rate of 10%, and another 17% have a 
rate of 5%.  The highest ad valorem  rate of 15% applies on six tariff lines comprising alcoholic 
preparations, vinegar, chemical preparations  for photographic uses, precious metal ores and 
concentrates, and metal scrap and waste.  There ar e 33 duty-free tariff lines, around 0.6% of the total. 
34. There is limited tariff escalation between  semi-processed and fully processed goods 
(Table III.2). 
35. The average effective tariff rate, at 5.7% in 2007, is low compared with the simple average 
MFN tariff rate.11  This partly reflects the prevalence of customs duty exemptions.  The importance of 
import duties as a source of Government revenue h as declined significantly in recent years.  Import 
duties represented around 11% of customs and inland revenue in 2007, down from 20% in 2003.12 
(b) WTO bindings 
36. The binding commitments undertaken by Solom on Islands are contained in List CXXXV 
annexed to the Marrakesh Protocol.  The Secretaria t transposed these commitments into HS 1996, and 
included them in the Consolidated Tariff Schedule file of Solomon Islands.  In late 2008, the 
Committee on Market Access was considering how to give legal effect to these changes. 
37. Solomon Islands has bound all of its tari ffs;  most are bound at 80%.  Certain goods, 
including meat, processed fish, so ap, prepared foods, bottled water, and photocopying machines are 
bound at rates between 90% and 150%.  Lower bound rates of between 5% and 35% apply on wheat, 
malt, margarine, sugar, pharmaceuticals, and fertiliz ers.  Several goods, incl uding beer, wine, spirits, 
tobacco products, fuels, explosives, media for sou nd recording, and cinematographic film are subject 
to non- ad valorem  or compound bound rates. 
38. In general, applied tariff rates are well belo w their bound rates;  some, however, exceed their 
bindings (Table III.3).  Also, video tapes corr esponding to HS 8523.1110,  8523.1210, 8523.1310, 
                                                      
11 The effective tariff is the ratio between the revenue earned from import duties, and the value of 
merchandise imports. 
12 Calculated on the basis of CBSl (2008a) an d Ministry of Finance and Treasury (undated). WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 26 
 
 
8524.5120, 8524.5220, and 8524.5320 are subject to an applied tariff of SI$20 per unit.  The 
ad valorem  equivalent of this rate could exceed the bi nding (the greater of 70% or SI$15 per unit) due 
to changes in price. 
Table III.3 
Products for which the applied MFN tariff rate exceeds the bound ratea 
(Per cent unless otherwise indicated) 
HS code Description MFN duty Bound duty 
1211.1000 Plants and parts of plants of a kind used primarily in perfumery, pharmacy, or 
for insecticidal or similar purposes 10 5 
1211.2000 Plants and parts of plants of a kind used primarily in perfumery, pharmacy, or 
for insecticidal or similar purposes 10 5 
1211.3000 Plants and parts of plants of a kind used primarily in perfumery, pharmacy, or 
for insecticidal or similar purposes 10 5 
1211.4000 Plants and parts of plants of a kind used primarily in perfumery, pharmacy, or 
for insecticidal or similar purposes 10 5 
1211.9000 Plants and parts of plants of a kind used primarily in perfumery, pharmacy, or 
for insecticidal or similar purposes 10 5 
1901.1010 Preparations for infant use, put up fo r retail sale:  contai ning added sugars 10 5 
1901.1090 Preparations for infant use, put up for retail sale:  Other 10 5 
1901.2000 Mixes and doughs for the preparation of bakers' wares of heading 19.05 10 5 
1901.9000 Other food preparations  of flour, groats, meal, starch, or malt extract 10 5 
2208.2010 Spirits obtained by distilling grape wi ne or grape marc:  less than 57% by 
volume of alcohol $100/l $75.00/l 
2208.2090 Spirits obtained by distilling grape wine or grape marc:  other $100/l $75.00/l 
2208.3010 Whiskies:  less than 57% by volume of alcohol $100/l $75.00/l 
2208.3090 Whiskies:  other $100/l $75.00/l 
2208.4010 Rum and tafia:  less than 57% by volume of alcohol $100/l $75.00/l 
2208.4090 Rum and tafia:  other $100/l $75.00/l 
2208.5010 Gin and Geneva:  less than 57%  by volume of alcohol $100/l $75.00/l 
2208.5090 Gin and Geneva:  other $100/l $75.00/l 
2208.6010 Vodka:  less than 57% by volume of alcohol $100/l $75.00/l 
2208.6090 Vodka:  other $100/l $75.00/l 
2208.7010 Liqueurs and cordials:  less than 57 % by volume of alcohol $100/l $75.00/l 
2208.7090 Liqueurs and cordials:  other $100/l $75.00/l 
2208.9010 Other spirits:  less than 57% by volume of alcohol $100/l $75.00/l 
2208.9020 Other spirits:  57% by volume of alcohol or more but less than 80% $100/l $75.00/l 
2208.9090 Other spirits $100/l $75.00/l 
2705.0000 Coal gas, water gas, producer gas and similar gases, other than petroleum gases 
and other gaseous hydrocarbons $0.2/kg $0.16/kg 
2710.1110 Motor spirit $0.3/l 0.25/l 
2710.1910 Motor spirit $0.3/l 0.25/l 
2711.1100 Liquefied natural gas $0.2/kg $0.16/kg 
2711.1200 Liquefied propane $0.2/kg $0.16/kg 
2711.1300 Liquefied butanes $0.2/kg $0.16/kg 
2711.1400 Liquefied ethylene, propylene, butylene and butadie ne $0.2/kg $0.16/kg 
2711.1900 Other liquefied  gas $0.2/kg $0.16/kg 
2711.2100 Natural gas, in gaseous state $0.2/kg $0.16/kg 
2711.2900 Other petroleum gases, in  gaseous state $0.2/kg $0.16/kg 
3302.9020 Other mixtures of odoriferous substances and mixtures $18/l $15.00/l 
3706.9090 Other cinematographi c film $0.36/30m $0.30/30m 
 
a The analysis took into account only app lied rates whose corresponding HS code was identical to the HS96 code in the 
 Consolidated Tariff Schedule file of Solomon Islands.  
Source : WTO Secretariat, based on informa tion provided by the authorities. Solomon Islands WT/TPR/S/215/Rev.1 
 Page 27 
 
 
(c) Tariff concessions 
39. There are 22 standing import duty exemptions in an Annex to the First Schedule to the 
Customs and Excise Act:  19 are full exemptions, and the rest are partial (Table III.4).  Under the 
Annex, certain manufacturing inputs qualify for both full and partial exemptions.  It appears that this 
is due to an administrative error, and that in practice, qualifying manufacturing inputs are fully 
exempted from import duties.  According to the authorities, the partial exemption on capital 
equipment under HS Chapters 84, 85, and 90 is only granted to "new" companies or investors. 
Table III.4 
Standing import duty exemptions, 2009 
Description 
Full exemptions 
Goods or articles imported for the official or personal use of th e Governor General and members of his nuclear family residing with him 
Goods for official use by a diplomatic mi ssion or consular post, and goods for use by the staff of a mission or consular post 
Goods for official use by international or  regional organizations and goods for use by staff of international or regional organ izations 
Coat-of-arms flags, sign boards, seals and stamps, books, printe d matter, furniture, and equipment and similar articles supplie d by the 
sending State for the official use of a consular  post headed by an honorary consular officer 
A motor vehicle imported by a contracting se ttler contracted by the Solomon Islands Gove rnment, provided that it is confirmed b y the 
Office of the Prime Minister that such concession is sp ecifically covered under the contract of employment 
Specialized technical supplies and parts for domestic and interna tional aircraft;  fuel and lubricants, consumable stores, and commissary 
services for use in aircraft and ships e ngaged in international services;  and speci alized ground equipment for maintenance of international 
airports or seaports 
Articles of an educational, scie ntific or cultural nature that have been imported by a register ed institute of learning, includ ing:  books, 
documents, periodicals, newspapers, and manuscripts;  paintings and drawings, sculptures, collect ors' pieces and objects of art  consigned 
to registered public institutions, and antiques more than 100 year s old;  sound recordings designed for educational purposes;  and 
architectural, industrial, and engineering plans, models, wall charts, and scientific instruments 
Drugs, medicines, and medical supplies impor ted by a hospital, dispensary, clinic, or veterinary hospital approved by the relev ant 
Ministry;  hospital instruments and appliances used in hospitals , or by a medical practitioner, optometrist, dentist, and regis tered 
physiotherapists or vets;  medical or surgical appliances used by persons suffering from sicknesse s, disease, or physical impai rment;  and 
goods for relief, employment, rehabilitation, and cu ltural needs of a permanently disabled person 
Goods (other than tobacco, wines, and spir its) that:  belonged to a deceased person;  were not used for business purposes;  and  are for a 
resident person who becomes entitled by virtue of any testamentary di sposition of intestacy 
Patterns and samples that are cut, mutilate d or otherwise spoiled so that they cannot  be sold (excluding advertising magazines and books) 
Non-consumable goods that are solely for use in churches and c hurch services;  materials solely for use in the construction, re pair or 
alteration of a church building;  altar br ead and wine;  monuments for erection in a public place to commemorate a historical e vent;  and 
bibles and other religious books importe d by a registered church denomination 
Goods required by any person approved by th e responsible Minister for scientific re search or for meteorological observation 
Currency notes and coins imported by the Centra l Bank with the purpose of becoming legal tender 
Goods of all kinds (excluding wine, beer, spirits, cigarettes,a nd tobacco) donated to registered charitable organizations and a id agencies, 
other than churches, and provided that such goods are not sold or used for any other commercial purposes 
Machinery, equipment and chemicals imported by the Solomon Islands  Water Authority and shown to be required solely for the purp ose 
of performing its functions 
Manufacturing inputs that undergo a substan tial transformation or change in their e ssential character, excluding tobacco, cigar ettes, beer, 
spirits, and fuel 
Goods imported under a memorandum of understa nding or agreement between a foreign govern ment or international aid donor and the  
Ministry of National Planning and Aid Coor dination for use in a donor-funded project 
Cargo manifests relating to consignm ents arriving in Solomon Islands 
Goods imported or taken out of bond for the sole  use of the national and provincial governments 
Partial exemptions 
Manufacturing inputs that undergo a substantial transformation or ch ange in their essential character are exempt from duty in e xcess of 
5% 
Capital equipment under Chapters 84, 85 or 90 are exempt from duty in excess of 5% 
Goods that are required exclusively for th e packing of any local product or manufacture,  or will be used exclusively in the man ufacture or 
repair of containers and will form part of such containers are exempt from duty in excess of 5% 
 
Source:  First Schedule to the Customs and Excise Act. 
40. Under the Customs and Excise Act, the Minister of Finance and Treasury has wide discretion 
in granting import duty exemptions pursuant to a memorandum of understanding with the WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 28 
 
 
beneficiary.13  Following a 2002 amendment, the decision to grant exemptions must take into 
consideration "the benefits or  repercussions the exemption would have on the economy of 
Solomon Islands".14  In June 2006, the Minister of Finance and Treasury issued guidelines governing 
import duty exemptions.15 
41. According to the guidelines, exemptions are li mited to imports of capital goods by new or 
expanding businesses, or for the development of ru ral communities.  The following are not eligible:  
goods for resale or consumed in the normal course  of business operations;  road vehicles used for 
private purposes;  and spare parts, oil, fuel, diesel , or lubricants purchased by businesses with annual 
turnover of more than SI$1 million (about US$130,550).  In addition, the guidelines establish a test to 
determine "whether it is in the national interest to  forgo revenue that would otherwise be collected" 
and require the Minister of Finance and Treasury  to present to Parliament and publish in the Gazette 
information on exemptions granted. 
42. A statutory Customs Exemptions Committee must approve exemption applications before the 
Minister of Finance and Treasury can grant final approval.16  The Committee, which is composed of 
representatives from various Government entiti es and the Chamber of Commerce, assesses 
applications on the basis of the guidelines.  Be tween July and December 2007, the only period for 
which data were available, the Minister of Fi nance and Treasury approved 38 applications for 
exemption, and rejected 8.  The revenue forgone as a result of approved exemptions was estimated at 
SI$7.6 million (some US$992,170).17 
(d) Tariff preferences 
43. No detailed information on preferential tariff ra tes applied by Solomon Islands was available 
to the Secretariat.  According to the authoriti es, Solomon Islands grants duty free treatment to 
180 tariff lines in the context of the Melanesia Spearhead Group Trade Agreement. 
(v) Other charges 
44. The application of internal taxes is both discrimin atory and inconsistent:  the goods tax rate is 
15% for imports but only 10% for domestic goods, wh ile imported beer, tobacco, and cigarettes are 
not subject to the excise duties levied on the same goods produced domestically. 
45. A "goods tax" is levied on the "sale value" of domestic and imported goods.18  The sale value 
is the wholesale price, except for imports by pers ons who have not registered  with the Inland Revenue 
Division of the Ministry of Finance and Treasury.  The sale value for these imports is 130% of the 
sum of the customs value and import duties.19 
46. The Goods Tax Act lists numerous exemptions, including for goods manufactured and sold 
by small businesses, goods used as "aids to ma nufacture", goods for use by the Government, 
containers, rice, medicines, medical tools, aircraft, and buses.20  It also grants discretion to the 
                                                      
13 Section 8(7), Customs and Excise Act. 
14 Section 8(5), Customs and Excise Act. 
15 Ministry of Finance and Treasury, Guidelines for the Application of Section 8 of the Customs and 
Excise Act [CAP121], 13 June 2006. 
16 Section 8(6), Customs and Excise Act. 
17 Ministry of Finance and Treasury (2008), and (2007). 
18 Section 13, Goods Tax Act, Chapter 122 of the Laws of Solomon Islands, 1 March 1993. 
19 Section 21(1), Goods Tax Act. 
20 First Schedule to the Goods Tax Act. Solomon Islands WT/TPR/S/215/Rev.1 
 Page 29 
 
 
Minister of Finance and Treasury in exempting spec ific goods or persons (section (4)(iii)).  In 2007, 
the Government collected an estimated SI$251 milli on in goods tax, around 27% of total customs and 
inland revenue.21 
47. Retail sales of certain services and domestic and imported goods are subject to sales tax.22  A 
rate of 10% applies on:  telecommunication services;  restaurant services;  domestic sea travel;  
professional and security services;  motor vehicle rental;  vessel and aircraft rental;  real estate services;  electronic repairs and equipment;  machin ery and equipment rental;  video and computer 
equipment rental;  services by hairdressers, barber s, and beauty shops;  laundry services;  and tyre 
services.  Specific rates apply on:  air travel, video rental, movies, petrol and diesel, and casino 
services.  Information on the rates applied in early 2009 was not available to the Secretariat.  Revenue 
derived from sales tax was estimated at SI$34 milli on in 2007, around 4% of total customs and inland 
revenue.
23 
48. Imports are not subject to excise duties. These are levied on domestically produced beer, 
tobacco, and cigarettes at SI$4 per litre for beer and SI$40 per kg for tobacco.24  The rate on cigarettes 
containing tobacco with more than 10 mg of tar pe r cigarette is currently SI$360 per kg;  all other 
cigarettes are subject to a rate of SI$0.185 per stick. 
(vi) Quantitative restrictions and controls 
49. Under the Customs and Excise Act, the Minister of Finance and Treasury may issue an order 
prohibiting imports of "any goods whatsoever" or from "any particular place".25  No information was 
available on the use of this provision. 
50. The Comptroller of Customs may also refuse th e release from Customs of "goods of any class 
or description chargeable with a duty of custom s or excise... in quantities exceeding those which 
appear to the Comptroller to be reasonable in the circumstances".26  Goods subject to this provision 
must be released after three months at the latest.  According to the authorities, this provision has not 
been used in recent years. 
51. Solomon Islands maintains import prohibitions to protect public health, safety and morals, 
and the environment.  Import bans cover counterfe it currency, indecent or obscene materials, certain 
knives and arms, matches containing white or yellow phosphorous, certain products under the 
Dangerous Drugs Act, ozone-depleti ng substances, and wildlife specimens.27  Import bans may also 
be applied for sanitary and phytosanitary reas ons, and to protect intellectual property rights 
(sections (ix) and (4)(vi)). 
                                                      
21 Ministry of Finance and Treasury (undated). 
22 Section 3, Sales Tax Act, Chapter 125 of the Laws of Solomon Islands, 30 July 1990. 
23 Ministry of Finance and Treasury (undated). 
24 Section 7, Customs and Excise Act. 
25 Section 33. 
26 Section 73(1), Customs and Excise Act. 
27 Second Schedule to the Customs and Excise Act;  sections 4(2) and 11, Dangerous Drugs Act, 
Chapter 98 of the Laws of Solomon Islands, 14 April 1941;  and section 12(1), Wildlife Protection and Management Act 1998. WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 30 
 
 
52. Certain goods are subject to import licensing (Tab le III.5).  Only licensed persons can import 
medicines and poisons.28  Solomon Islands has not notifie d the published sources for its import 
licensing procedures, nor has it answered the questionnaire on import licensing.29 
Table III.5 
Imports subject to licensing requirements, 2009 
Product Purpose of the restrictiona Licensing authority Licensing requirements 
Arms and ammunition Protection of public safety .. .. 
Certain drugs under the 
Dangerous Drugs Act Protection of public health Ministry of Hea lth Products must be for medicinal purposes 
Used clothing, linen, and 
jute sacks Protection of public health .. Importer must prove to the Comptroller of 
Customs that the product has been sterilized, disinfested, and/or disinfected 
Plants, animals, and their 
products To prevent the introduction 
of pests and diseases Ministry of Agriculture 
and Livestock As specified in the Import Specification 
Manual of the Agri culture Quarantine 
Service 
Live fish Protection of the 
environment Director of Fisheries Permits are granted after assessing the 
possible effects of the release of fish into 
the wild 
Food To prevent the entry of food 
that is unfit for consumption Ministry of Health Permits ar e issued upon presentation of a 
certificate attesting that food has been 
processed under sanitary conditions 
Wildlife specimens  Environmental protection .. .. 
Ozone-depleting 
substances Environmental protection .. .. 
 
.. Not available. 
 
a As stated by the authorities.  
Source:  Agricultural Quarantine Act, Pure Food Act, Dangerous Drugs Act, Pharma cy and Poisons Act, Firearms and 
 Ammunition Act, and Fisheries Act 1998. 
(vii) Contingency measures 
53. Solomon Islands does not have safeguard anti- dumping or countervailing duty legislation, nor 
has it applied any safeguards, anti-dumping or countervailing duties. 
(viii) Technical regulations, conformity assessment procedures, and standards 
54. Solomon Islands has limited institutional capacity  to adopt and enforce technical regulations 
and conformity assessment procedures.  It did not ad opt legislation to implement the TBT Agreement, 
nor has it made any notifications under that Agreemen t.  The preparation and notification to the WTO 
of an inventory of technical re gulations and conformity assessment procedures would be a first step 
towards increasing transparency for traders and he lping efforts to enhance consumer protection. 
55. Solomon Islands has not submitted any notifi cation on the implementation of the TBT 
Agreement.30  Nor has it designated an entity responsible for answering enquiries about technical 
regulations, conformity assessment procedures, and standards.31  WTO Members have not raised any 
                                                      
28 Parts V and VI, Pharmacy and Poisons Act, Chapter 105 of the Laws of Solomon Islands, 
28 July 1941. 
29 As required under Articles 1.4(b) and 7.3 of the Agreement on Import Licensing Procedures, and 
WTO document G/LIC/3, 7 November 1995. 
30 As required by Article 15.2 of the TBT Agreement. 
31 As required by Article 10.1 of the TBT Agreement. Solomon Islands WT/TPR/S/215/Rev.1 
 Page 31 
 
 
concerns in the TBT Committee regarding measure s by Solomon Islands, a nd Solomon Islands has 
not been involved in any WTO dis pute related to the TBT Agreement. 
56. Solomon Islands has not adopted legislation to  implement the TBT Agreement.  Technical 
regulations and conformity assessment procedures may be embodied in statutes passed by Parliament, 
or in subsidiary legislation made by the Executive.32  Under the Consumer Protection Act, the 
Minister of Commerce, Industries Labour and Immigration can regulate "product safety or quality standards for any specified kind of goods".
33  Measures adopted under this provision may include 
requirements relating to performance, composition,  design, packaging, marking and labelling, 
processing method, and testing.34  No technical regulations or conformity assessment procedures have 
been adopted under this provision.  The authorities have prepared draft legislation to replace the 
Consumer Protection Act. 
57. The Minister of Commerce, Industries Labour a nd Immigration may also make regulations on 
"methods of inspecting, verifying and stamping we ights, measures, copies and models thereof, 
weighing instruments and measuring instrument s, and of certifying such verification".35  S u c h  
regulations are not yet in force. 
58. To the extent that technical regulations a nd conformity assessment procedures are embodied 
in subsidiary legislation, the administrative procedure for their adoption is governed by the 
Interpretation and General Provisions Act.36  Subsidiary legislation must be published in the 
Solomon Islands Gazette , and enters into force on the date of publication, unless another date is 
specified in the legislation itself.37  In addition, it must be sent to Parliament, which may annul it 
through resolution within three months.38  Subsidiary legislation approve d by Parliament in draft form 
is not subject to this requirement.39  Legislation governing the adopti on of subsidiary legislation does 
not contemplate public comment or WTO notification of draft measures. 
59. Solomon Islands does not maintain an inventor y of technical regulations or conformity 
assessment procedures in force.  The Secretariat has no information on the number of applicable 
technical regulations or standards, nor how th ese may be enforced.  The Customs and Excise Act 
specifies certain technical regulations applicable on imports.40  For example:  brandy and whiskey 
must have been matured "by storage in wood" for no t less than three years, and rum for not less than 
two years;  electrical appliances designed to be conn ected to the electricity supply system must meet 
the conditions specified by the Solomon Islands Elect ricity Authority;  and cigarettes imported in 
quantities of more than 200 must be contained in packages displaying a health warning.  The 
Pharmacy and Poisons Act specifies labe lling requirements for imported medicines.41 
60. There are no competent agencies to assess conf ormity with Solomon Islands technical 
regulations.  The National Metrology and Testing La boratory was destroyed during the period of civil 
                                                      
32 National Parliament of Solomon Islands (2007a). 
33 Section 12(1), Consumer Protection Act, Chapter 63 of the Laws of Solomon Islands, 16 October 
1995. 
34 Section 12(2), Consumer Protection Act. 
35 Section 15(1), Weights and Measures Act, Chapter 155 of the Laws of Solomon Islands, 1 December 
1980. 
36 Chapter 85 of the Laws of Solomon Islands, 29 September 1978. 
37 Section 61(1). 
38 Section 62(1) and (2), Interpre tation and General Provisions Act. 
39 Section 62(3), Interpretation and General Provisions Act. 
40 Second Schedule to the Customs and Excise Act. 
41 Section 50, Pharmacy and Poisons Act. WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 32 
 
 
strife, and the authorities are seeking funds to rebuild  it.  No information is available on market 
surveillance activities carried out by the authorities in connection with Solomon Islands technical 
regulations. 
61. There are no standardizing bodies in Solomon Islands. 
(ix) Sanitary and phytosani tary (SPS) measures 
62. During the period under review, there have been  some efforts to strengthen the limited 
institutional capacity of Solomon Islands in the SP S area, for example through the development of 
animal and plant import specifications, and the establishment of facilities to conduct food tests.  However, transparency could be further improved, particularly through the submission of relevant 
WTO notifications.  More generally, assigning gr eater priority to SPS activities could benefit 
domestic consumers and strengthen the capacity of local producers to compete in export markets. 
63. Under the Agricultural Quarantine Act, the Mi nister of Agriculture and Livestock can 
regulate imports to prevent the introduction of diseases and pests into Solomon Islands.
42  T h e  
Ministry of Health and Medical Services is res ponsible for ensuring that imported food meets the 
requirements of the Pure Food Act 1996  and the Environmental Health Act.43  Provincial governments 
cannot adopt SPS measures. 
64. The Solomon Islands enquiry point and na tional notification authority under the 
SPS Agreement is the Director of the Environment Health Division of the Ministry of Health and 
Medical Services.44  WTO Members have not raised any concerns in the SPS Committee regarding 
measures adopted by Solomon Islands.  Solom on Islands has not notified any SPS measures. 
65. Solomon Islands is a member of the Codex Al imentarius Commission and the International 
Plant Protection Convention, but not the World Organization for Animal Health.  It has signed protocols on SPS issues with Australia, Fiji, New Zealand, Papua New Guinea, and Vanuatu. 
66. The procedure for the development of SPS measure s applied on imports is described in the 
Import Specification Manual of the Solom on Islands Agriculture Quarantine Service .  Although the 
manual is not public, the authorities provided a copy to  the Secretariat in the context of this Review.  
Measures are developed by the Chief Plant Protection Officer or the Chief Veterinary Officer of the 
Agriculture Quarantine Service on the request of  importers.  Measures must be prepared "in 
accordance with accepted internationa l guidelines".  The manual does not provide for public comment 
or WTO notification of draft measures.  SPS measures are described in the schedules to the manual.  There is no public inventory of SPS measures, or of products subject to such measures. 
67. Risk assessments are conducted following any re quest to import a product for which no SPS 
measures are specified in the manual, or to rene w a licence.  According to the authorities, they 
conduct around 100 risk assessments per year.  There are no statutory provisions regarding the maximum duration of risk assessments;  the authorities indicate that these take a minimum of three months.  The cost of risk assessment is bo rne by the Agricultura l Quarantine Service. 
                                                     
 
42 Section 2, Agricultural Quarantine Act, Chapter 343 of the Laws of Solomon Islands, 
10 February 1986. 
43 Environmental Health Act, Chapter 99 of the Laws of Solomon Islands, 1 August 1980. 
44 WTO documents G/SPS/ENQ/23 and G/SPS/NNA/13, 27 March 2008. Solomon Islands WT/TPR/S/215/Rev.1 
 Page 33 
 
 
68. A licence issued by the Permit Officer of the Agriculture Quarantine Service is generally 
required to import plants, animals, and their products.45  Licences specify the conditions under which 
a product may be imported into Solomon Islands.  Th e procedure for issuing licences is described in 
the Import Specification Manual .  Licences are valid for one year and are for multiple entries.  They 
are granted within one week once the corres ponding risk assessment has been completed. 
69. Imports considered "low risk" are exempt from licensing requirements, provided that they are 
"commercially packaged and labelled".46  Low risk products are specified in the Import Specification 
Manual  and include processed food containing animal pr oducts from Australia and New Zealand, and 
processed food containing plant products from any country. 
70. Food imports require a permit issued by the Environment Health Division of the Ministry of 
Health and Medical Services.47  Permits are issued upon presentation of a certificate from the 
competent authority in the exporting country attes ting that the food has been processed under sanitary 
conditions.  The authorities indicate that permits are normally issued in three days.  In addition to a 
permit, food containing animal or plant products ma y require an import licence from the Agriculture 
Quarantine Service. 
71. All imports of plants, animals, and their produc ts are subject to physical inspection at the 
border.  Inspections are conducted by the Agricult ure Quarantine Service.  Fees for inspection, 
treatment, and quarantine are specified in Schedule 4 of the Agricultural Quarantine Order.  Imported 
food is randomly selected for inspection and analysis.48  The authorities indicate that a government 
laboratory has been conducting chemical and bacteriological analyses of food since November 2008. 
72. There is no legislation on the importation of ag ricultural biotechnology products, or products 
from hormone-fed animals;  and there are no spec ial reporting requirements on imports of these 
products.  According to the authorities, draft biosecurity legislation is under preparation. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
73. There are no registration requirements for expo rters who have a tax identification number 
(TIN) from the Inland Revenue Division of the Minist ry of Finance and Treasury.  Importers without 
a TIN must register with the Customs and Excise Division, which automatically assigns a "customs client number". 
74. The bill of lading, commercial invoice, packing list, port handling receipts, and customs 
declaration must be lodged with Customs for a ll exports.  Additional info rmation is required for 
exports of goods subject to licensing requirements (s ection (ii) below).  Following the introduction of 
the software package PC Trade in April 2008, customs declarations must be filed electronically using 
the electronic self-assessment declaration (eSAD).  
75. As part of PC Trade, the Customs and Excise Division has established "risk management 
profiling procedures" for exports, which are similar to those set up for imports (section (2)(i)).  
Exports of reptiles and insects, birds, live fish, and crocodile skin are considered high risk, while fish 
                                                     
 
45 Sections 4-6, Agricultural Quarantine Order. 
46 Sections 2 and 3 of the Solomon Islands Agriculture Quarantine Service Import Specification 
Manual . 
47 Part VI, Pure Food Act 1996. 
48 Section 22(3), Pure Food Act 1996. WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 34 
 
 
and marine products, gold, silver, wood, and metal waste and scraps are medium risk.  The World 
Bank estimates that export shipments clear customs in four days, and that a further 11 days are necessary to handle shipments inside the port.
49 
(ii) Export taxes, quantitative restrictions, and licensing 
76. The Minister of Finance and Treasury has wide  discretion in prohibiting exports.  Export 
taxes are levied mainly on fish, minerals, and timber.   Taxes on timber and fish are levied on a value 
determined by the authorities.  Although export taxes discourage the production and trade of the 
dutiable products, given Solomon Islands' limited institutional capacity they provide a short-run 
means to capture economic rents from natural-resource exports.  
77. Exports of certain goods are subject to duties (Table III.6).50  Between 2003 and 2007, export 
duties represented almost 18% of total customs and inland revenue.51  The authorities indicate that 
export taxes are a practical and cost-efficient mean s of raising revenue and that they encourage 
downstream domestic processing and help protect the environment. 
Table III.6 
Export duties, 2009a 
Codeb Product description Rate 
0106 Other live animals  
0106.2000 Reptiles 10% 
0106.3000 Wild or domesticated birds 10% 
0106.9010 Insects 10% 
0301 Live fish  
0301.1000 Ornamental fish 10% 
0301.9000 Other live fish 10% 
0302 Fish, fresh or chilled  
0302.3000 Skipjack, bonito, and tuna 5% 
0302.6010 Bill fishes and sword fishes 5% 
0303 Fish, frozen  
0303.4000 Skipjack, bonito, and tuna 5% 
0303.7010 Bill fishes and sword fishes 5% 
0304 Fish fillets and other fish meat, fresh, chilled or frozen 5% 
0305 Fish, dried, salted or in brine, smoked 20% 
0306 Crustaceans  
0306.0010 Live crustaceans 10% 
0306.0020 Aquarium crustaceans 10% 
0306.0040 Fresh, chilled, frozen, dr ied, salted, or in brine 10% 
0307 Molluscs  
0307.0010 Live molluscs 10% 
0307.0020 Aquarium molluscs 10% 
0307.0040 Molluscs, fresh, chilled, fr ozen, dried salted or in brine 10% 
0507.0000 Tortoise/turtle shell, unworked or simply prepared 10% 
0508 Coral and similar materials, she lls of molluscs and crustaceans  
0508.0011 Shells, namely trocus, greensnail and blacklips 30% 
0508.0020 Coral of all kinds 10% 
1402 Rattans (calamus) raw or dried 30% 
2616 Precious metal ores and concentrates  
2616.1000 Silver ores and concentrates 15% 
Table III.6 (cont'd) 
                                                      
49 World Bank (2009). 
50 Section 7, Customs and Excise Act. 
51 Calculated on the basis of CBSI (2008a). Solomon Islands WT/TPR/S/215/Rev.1 
 Page 35 
 
 
Codeb Product description Rate 
2616.9010 Alluvial gold and concentrates 15% 
2616.9090 Other ores and concentrates 15% 
4103 Crocodile skin 10% 
4403.1110 
4403.1120 
4403.1130 Sawn logs and veneer logs, coniferous: 
Determined value:  not more than SI$673 per m3 
Determined value:  less than or equal to SI$1,047 per m3, but greater than SI$673 
per m3  
25% 25% on the first SI$673 per m
3 plus 
40% on the remainder 
 Determined value:  more than SI$1,047 per m3 25% on the first SI$673 per m3, plus 
40% on the next SI$374 per m3, plus 
60% on the remainder 
4403.0021 
4403.0022 
4403.0023 Sawn logs and veneer logs, non-coniferous: 
Deter mined value:  not more than SI$550 per m3 
Determined value:  less than or equal to SI$850 per m3, but greater than SI$550.00 
per m3 
Determined value:  more than SI$850 per m3 
  
25% 
SI$137.50 per m3, plus 40% on the 
value above SI$550 per m3 
SI$257.50 per m3 plus 60% on the 
value above $850 per m3 
4403.0031 
4403.0032 
4403.0033 Logs, non-coniferous, below saw mill quality 
Determined value:  not more than SI$550 per m3 
Determined value:  less than or equal to SI$850 per m3, but greater than SI$550 
per m3 
Determined value:  more than SI$850 per m3  
25% SI$137.50 per m
3 plus 40% on the 
value above $550 per m3 
SI$257.50 per m3 plus 60% on the 
value above SI$850.00 per m3 
4407.0010 4407.0020 Lumber, sawn, planed, grooved, tongued  2.5% 
7106 Silver, in any form 20% 
7108 Gold, in any form 5% 
7204 Ferrous waste and scrap SI$1.50 per tonne 
7404 Copper waste and scrap 15% 
7602 Aluminium waste and scrap 15% 
9706 Antiques 10% 
a Excluding products subject to a "free" rate of duty. 
b As stated in the relevant statute;  the codes may not coincide with those used by Solomon Islands in mid-2008. 
Source:  First Schedule to the Customs and Excise Tax. 
78. Round logs are generally subject to compound ( ad valorem  and specific) rates, applied on a 
"determined value" set by the Comptroller of Customs on the recommendation of the Commissioner 
of Forests (see also Chapter IV(4)).52  Export taxes on fish are calculated on the basis of a value 
determined by the Comptroller of Customs after consultation with the Ministry of Fisheries and 
Marine Resources.  According to the authorities, these values have not been reviewed since 2000.  
Export taxes applied on other goods are calculated on the basis of their f.o.b. price. 
79. Timber exports require "specific authority" from the Central Bank (Chapter IV(4)).  The 
purpose of this measure is "to ensure that Solomon Islands log exporters obtain open market prices for 
their log exports and remit the full proceeds to Solomon Islands".53  A licence is required to export 
other products subject to export taxes, war relics,  certain products under th e Dangerous Drugs Act, 
firearms and ammunition, live fish, and wildlife specimens listed in Schedule II of the Wildlife 
Protection and Management Act 1998.54 
                                                      
52 IMF (2008a). 
53 Central Bank of Solomon Islands online information, "Solomon Islands Round Log Export System".  
Viewed at:  http://www.cbsi.com.sb/index.php?id=41. 
54 Section 22, Dangerous Drugs Act;  section 17, Fi rearms and Ammunition Act;  section 32, Fisheries 
Act 1998;  and section 11(2), Wildlife Protection and Management Act 1998. WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 36 
 
 
80. Under the Customs and Excise Act, the Minister  of Finance and Treasury can issue an order 
prohibiting exports of "any goods whatso ever" or to "any particular place".55  No information is 
available on the use of this provision.  Solomon Islands prohibits exports of baitfish and certain 
products under the Dangerous Drugs Act.56  Exports for commercial purposes of wildlife specimens 
listed in Schedule I of the Wildlife Protecti on and Management Act 1998 are also prohibited.57 
(iii) Duty and tax concessions 
81. The authorities have wide discretion in exempting export profits from income tax, but 
guidelines introduced in 2006 seek to reduce that di scretion.  To qualify for the longest exemption 
periods of five or six years, firms must expor t their entire output, or meet a 50% domestic-value-
added criterion.  Firms may also apply for a 150% deduction of export promotion and marketing 
expenses for income tax purposes. 
82. Under the Income Tax Act, the Commissioner of Inland Revenue has wide discretion in 
exempting export profits from income tax.58  According to guidelines for income tax exemptions 
issued by the Minister of Finance and Treasury in June 2006, exemptions are granted exclusively to 
"investors with capital inputs to major new project s or substantial business expansion", subject to 
certain thresholds.59  The guidelines establish a test to determine whether it is in the national interest 
to forgo revenue that would otherwise be collected  and require the Commissioner of Inland Revenue 
to publish quarterly information on exemptions granted. 
83. Applications for income tax exemptions ar e considered by the Inland Revenue Division 
Exemptions Committee, an administrative body composed of the Deputy and two Assistant Deputy 
Commissioners of Inland Revenue, and two sen ior compliance officers.  The Committee is 
responsible for assessing applications on the basi s of the June 2006 guidelines, and making a non-
binding recommendation to the Minister of Finance and Treasury for approval.60 
84. The Income Tax Act specifies the duration of  income tax exemptions on export profits.61  
Firms that produce exclusively for export are eligib le for a five-year exemption.  Other firms are 
eligible for exemptions ranging from three to six y ears, provided they meet certain domestic-value-
added criteria:  an exemption of six years is ava ilable for firms with domestic-value-added of 75% or 
more;  five years for 50% to 75%;  four years for 40% to 50%;  and three years for 25% to 40%.  The Commissioner of Inland Revenue may extend income tax exemptions granted to these firms for a further five years, provided they invest an additional SI$10 million or more.
62 
85. Firms may also apply for a 150% deduction of export promotion and marketing expenses for 
income tax purposes.63  Firms that export manufactured goods, fresh seafood, or fresh agricultural 
produce are eligible for an exemption on export profits of between three and six years. 
                                                      
55 Section 33. 
56 Third Schedule to the Customs and Excise Act and sections 4(2) and 11, Dangerous Goods Act. 
57 Section 11(1), Wildlife Protection and Management Act 1998. 
58 Sections 11 and 12, Income Tax Act, Chapter 123 of the Laws of Solomon Islands, 1 January 1965. 
59 Minister of Finance and Treasury,  Guidelines for the In centives under Part III of the Income Tax 
Act, 27 June 2006. 
60 Minister of Finance and Treasury,  Guidelines for the In centives under Part III of the Income Tax 
Act, 27 June 2006. 
61 Part III, First Schedule to the Income Tax Act. 
62 Section 11(4), Income Tax Act. 
63 Section 6, Second Schedule to the Income Tax Act. Solomon Islands WT/TPR/S/215/Rev.1 
 Page 37 
 
 
86. No applications for income tax exemptions we re approved by the Minister of Finance and 
Treasury between July and December 2007, the only  period for which data were available to the 
Secretariat.64 
87. Under the Customs and Excise Act, the Minister of Finance and Treasury has wide discretion 
in granting export duty exemptions pursuant to  a memorandum of understanding with the 
beneficiary.65  According to the authorities, no new export duty exemptions have been granted since 
2003, and the last export duty exemption e xpired in 2006 (see also Chapter IV(4)). 
88. Exports are exempt from excise and goods taxes.66 
(iv) Promotion, finance, insurance, and guarantees 
89. Solomon Islands does not have any finance, in surance, or guarantee schemes exclusively for 
exporters.  Exporters receive priority under the Central Bank's small business finance scheme 
(section (4)(iii)). 
90. Export promotion activities are limited.  A Ma rketing and Export Promotion Division has 
been established in the Ministry of Commerce, Indus tries, Labour, and Immigration.  The Division is 
expected to have six full-time staff.  In early 200 9, the Division was taking stock of Solomon Islands' 
export policies, and evaluating their impact on export performance to make recommendations for 
reform.  It was also working with the Ministry of  Agriculture and Livestock to identify agricultural 
commodities with export potential. 
91. The Commodities Export Marketing Authority provides quality assurance and market 
intelligence services to cocoa and copr a exporters (see Chapter IV(2)). 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Business registration and taxation 
92. The processes for obtaining a business licence from provinces and incorporating a business 
are complex and lengthy, and have become major obstacles to market entry, including by foreign investors.  Ongoing efforts to review the inco rporation process and the business registration system 
are thus of great importance. 
93. A licence is required to carry on a business in Solomon Islands.  Business licences are granted 
by provincial governments for a fee.  Foreign inv estors must also register with the Registrar of 
Foreign Investment (Chapter II(4)). 
94. Under the Companies Act, businesses may in corporate to form a limited company.
67  
Incorporation is effective from the date specified in the certificate of incorporation, which is issued by 
the Registrar of Companies in Honiara upon registration of the company's memorandum of 
association.68  The Minister of Commerce, Industries,  Labour and Immigration must approve the 
                                                      
64 Ministry of Finance and Treasury (2008) and (2007). 
65 Section 8(7). 
66 First Schedule to the Customs and Excise Act, an d section 47 of the First Schedule to the Goods Tax 
Act. 
67 Chapter 175 of the Laws of Solomon Islands, 1 June 1961. 
68 Sections 15 and 16, Companies Act. WT/TPR/S/215/Rev.1 Trade Policy Review 
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company name.69  Companies incorporated under the Compani es Act must have a registered office in 
Solomon Islands.70  There are no nationality or residency requirements for company directors. 
95. It takes around 57 days to set up a limited liability company in Honiara.71  The most time-
consuming procedures are:  registration of the memo randum and articles of association (32 days), and 
approval of the company name (17 days).  The cost of the incorporation process totals SI$3,050 
(around US$400), including the SI$1,000 business licen ce fee levied by the Honiara City Council. 
96. According to the Asian Development Bank ( ADB), the business incorporation process is 
complex and slow.72  In addition, the discretion enjoyed by officials responsible for company 
registration and business licensing "may invite corruption".73  In this context, the authorities note that 
they have submitted new draft companies legislation to Parliament, and that they are reviewing the 
system for lodging, processing, storing, and publishing business registration information. 
97. Foreign incorporated companies can es tablish a branch in Solomon Islands.74  T h e y  m u s t  
provide the following information to the Registrar of  Companies within one month of establishing in 
Solomon Islands:  a certified copy of the document de fining the constitution of the company;  a list of 
the company's directors and secretary;  and the name and address of at least one representative in 
Solomon Islands. 
98. Resident firms are taxed on their worldwide income at a rate of 30%.75  Resident firms are 
companies incorporated in Solomon Islands and non-incorporated firms that are controlled by 
Solomon Islands residents or whose central manageme nt and control is in Solomon Islands.  Income 
derived from Solomon Islands by all other firms is  taxed at 35%.  According to the World Bank, a 
typical medium-sized company pays approximately 36% in taxes on its profits, and takes on average 
80 hours per year to prepare, file, and pay taxes.76  Certain payments to resident and non-resident 
taxpayers are subject to withholding taxes, which range from 5% to 35%. 
(ii) Competition policy and price controls 
99. There is no active enforcement of the few stat utory provisions designed to prevent anti-
competitive business practices.  Although the authorit ies are considering introducing new legislation, 
since the last Review of Solomon Islands there ha ve been no concrete steps to strengthen the legal 
framework on competition policy.  Price controls apply on various staples as a means to address 
market failures, including low competition. 
100. Solomon Islands does not have a generic comp etition law.  The Consumer Protection Act 
contains general provisions on refusal to sell, tied se lling, exclusive dealing, price discrimination, and 
monopolization.77  The director of the Consumer Affairs Division of the Ministry of Commerce, 
Industries, Labour, and Immigration has wide discr etion in exempting particular firms from the 
                                                      
69 Section 18, Companies Act. 
70 Section 102, Companies Act. 
71 World Bank (2009). 
72 Asian Development Bank (2005b). 
73 Asian Development Bank (2005b). 
74 Part VII, Companies Act. 
75 Section 4, Income Tax Act. 
76 World Bank (2009). 
77 Part III, Consumer Protection Act, Chapter 63 of the Laws of Solomon Islands, 16 October 1995. Solomon Islands WT/TPR/S/215/Rev.1 
 Page 39 
 
 
provisions on exclusive dealing, price discrimination,  and monopolization if this is "in the interest of 
the national economy".78  There is no statutory definition of this term. 
101. The Consumer Affairs Division may carry out competition-related investigations, but has 
never done so since the entry into fo rce of the Consumer Protection Act.79  The authorities indicate 
that they are considering introducing new legisla tion on competition policy.  They also note that 
monopolies are widespread, partly reflecting the small size of the Solomon Islands market. 
102. Price controls are established through ministeria l orders issued under the Price Control Act.80  
Price controls may apply to specific areas of Solomon Islands.  Draft price contro l orders must be sent 
to Parliament, which may annul them, through resolution, within 20 days.81 
103. Price controls apply on milk, meat, fish, sugar, soap, rice, cooking oil, curry powder, biscuits, 
liquid petroleum gas, and fuels sold in seven areas.82  The price of bread in Honiara is also controlled 
(Table III.7).  Price controls are sometimes specified for specific brands.  In general, maximum wholesale prices are determined by adding prescribed mark-ups to the "landed cost", that is, the sum 
of the c.i.f. price and customs duties for impor ts, or the factory price for domestic goods.  The 
mark-up used to determine the maximum wholesale price of imported rice is higher than for domestic 
rice.  Maximum retail prices are generally determin ed by adding prescribed mark-ups to the sum of 
the wholesale price and the cost of transport (cost into store). 
Table III.7 
Price controls in Honiara, 2009 
Product Maximum wholesale price Maximum retail price 
Cream milk powder and condensed milk Landed cost plus 10% Cost into store plus 13% 
Corned beef and certain other pr epared meats Landed cost plus 10% Cost into store plus 13% 
Fish .. .. 
Sugar Landed cost plus 10% Cost into store plus 13% 
Flour Landed cost plus 10% Cost into store plus 13% 
Soap Landed cost plus 10% Cost into store plus 13% 
Rice (domestic) Landed cost plus 6% Cost into store plus 9% 
Rice (imports) Landed cost plus 9% Cost into store plus 9% 
Cooking oil Landed cost plus 10% Cost into store plus 13% 
Curry powder Landed cost plus 10% Cost into store plus 13% 
Cabin or navy biscuits Landed cost plus 10% Cost into store plus 13% 
Bread .. .. 
Liquid petroleum gas .. .. 
Petroleum motor spirit .. .. 
Distillate .. .. 
Kerosene .. Cost into store plus 15% (packaged) or 20% (bulk) 
 
.. Not available. 
 
Source:  The Price Control (Application to G oods and Restriction of Prices) Order,  1 July 1987, and information provided 
 by the authorities. 
104. Petrol and diesel are subject to fixed wholesale and retail prices.  Electricity and water are 
also subject to price controls (see also Chapter IV(6)). 
                                                      
78 Sections 26, 27, and 29, Consumer Protection Act. 
79 Sections 6-9. 
80 Sections 4 and 6, Price Control Act, Chapter 64 of the Laws of Solomon Islands, 26 March 1982. 
81 Section 10, Price Control Act. 
82 The Price Control (Application to Goods and Restriction of Prices) Order, 1 July 1987. WT/TPR/S/215/Rev.1 Trade Policy Review 
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105. In the context of the previous Review of Solomon Islands, the authorities signalled their 
intention to move away from price c ontrols to reduce market distortions.83  According to the 
authorities, the current policy is to maintain price controls, and to improve the Price Control Act.  
They also note that price controls are a means of balancing consumer and producer interests in 
markets with low levels of competition, insuffi cient information by consumers or shortages. 
(iii) Incentives 
106. A wide range of tax exemptions are available to businesses.  Under aut horizing legislation, 
the authorities have wide discretion in granting exemptions, but guidelines issued in 2006 seek to 
reduce that discretion.  Some income tax exempti ons are granted on the basis of domestic-value-added 
criteria;  others are available for specific activitie s, including hotels and agricultural and fisheries 
firms.  Transparency in this area has been enhan ced considerably since the Ministry of Finance and 
Treasury decided to publish quarterly reports on exemptions.  These reports suggest that exemptions are significant;  it would thus be important to assess their net benefits with a view to their possible 
rationalization.  This would help address the fra gile fiscal situation, and minimize distortions. 
107. The Commissioner of Inland Revenue has wi de discretion in granting income tax 
exemptions.
84  Under guidelines issued in June 200685, exemptions may only be granted to new 
projects and must pass a national interest test (see section (3)(iii)). 
108. Applications for income tax exemptions ar e considered by the Inland Revenue Division 
Exemptions Committee (section (3)(ii)).  Firms that  invest SI$10 million (aro und US$1.3 million) are 
eligible for exemptions of up to ten years.  Other firms are eligible for exemptions that range from 
three to six years, provided they meet the same domestic-value-added criteria applied on income tax 
exemptions for export profits (see section (3)(iii) above). 
109. Under the Income Tax Act, firms may apply fo r additional income tax exemptions, including 
a 200% deduction of training and education expenses, and a 150% deduction of domestic transport 
costs.  Also, tourist hotels, resorts, and relate d projects are eligible for a five-year income tax 
exemption.  Agriculture, forestry, animal husbandry,  and fisheries firms are eligible for income tax 
exemptions in five out of ten years following the start of operations.  Mining companies may also be 
eligible for exemptions (see Chapter IV(5)). 
110. No applications for income tax exemptions we re approved by the Minister of Finance and 
Treasury between July and December 2007, the on ly period for which information was available.86 
111. There are some 70 statutory goods tax exemptions for specific goods or entities.87  T h e  
Minister of Finance and Treasury has wide discr etion in granting additional goods tax exemptions.88  
Under the Minister's 2006 guidelines, goods tax exem ptions are limited to capital good imports by 
new or expanding businesses, or for the development of rural communities.89  The following are not 
                                                      
83 WTO (1999), Chapter III(4)(iv). 
84 Income Tax Act sections 11 and 12. 
85 Minister of Finance and Treasury,  Guidelines for the In centives under Part III of the Income Tax 
Act, 27 June 2006. 
86 Ministry of Finance and Treasury, Quarterly Report on Exemptions, Exemption Reports No. 07/04 
(May 2008), and 08/02 (September 2007). 
87 Section 37(1) and First Schedule, Goods Tax Act. 
88 Section 37(2), Goods Tax Act. 
89 Ministry of Finance and Treasury, Guidelines for the Application of Part VI of the Goods Tax Act 
[CAP122], 13 June 2006. Solomon Islands WT/TPR/S/215/Rev.1 
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eligible:  goods for resale or consumed in the normal course of business operations;  road vehicles 
used for private purposes;  and spare parts, oil, fu el, diesel, or lubricants purchased by businesses with 
annual turnover of more than SI$1 million.  The guid elines also establish a test to determine "whether 
it is in the national interest to forego revenue that  would otherwise be collected" and require that the 
Minister of Finance and Treasury present to Parliament and publish in the Gazette  information on 
exemptions granted. 
112. The Inland Revenue Division Exemptions Comm ittee is responsible for assessing goods tax 
applications on the basis of the June 2006 gui delines, and making a non-binding recommendation to 
the Minister of Finance and Treasury.  Between Ju ly and December 2007, the only period for which 
data were available, the Minister of Finance a nd Treasury approved 117 applications for exemption, 
and rejected 76.  The revenue forgone as a result of  approved goods tax exemp tions is estimated at 
SI$39 million (some US$5.1 million), equivalent to  about 13% of Solom on Islands' tax revenue 
during the same period.90 
113. Solomon Islands maintains only a few incentives besides tax exemptions.  Under its small 
business finance scheme, the Central Bank of Solo mon Islands guarantees 80% of a loan's unsecured 
portion, up to SI$300,000 (around US$39,170).91  The price of the guarantee is 1% of the guaranteed 
loan.  Companies controlled by nationals, and joint ventures with at least 50% domestic ownership are 
eligible to apply.  Priority is granted to "small and medium enterprises invol ved with rural or export 
business ventures".92  Information was not available to the Secretariat on the total value and number 
of loans guaranteed under this scheme. 
114. Solomon Islands Government provides ad hoc assistance to state-owned enterprises, for 
example through preferential loans, loan guarantees, and tax exemptions.93  In general, the purpose is 
to provide relief to enterprises in financial difficulty. 
115. The marketing and price stabilization schem es maintained by the Commodities Export 
Marketing Authority were eliminated in 2002 (see Chapter IV(2)). 
(iv) State trading, state-owned enterprises, and privatization 
116. State-owned enterprises are active in a wide ra nge of sectors.  Their performance has been 
generally weak, which has translated into poor ser vices and high prices.  The State Owned Enterprises 
Act, adopted in August 2007, seeks to address these problems, but its full implementation requires the 
reconstruction of the accounts of several SOEs, a nd the development of regulation in a significant 
number of areas. 
117. Solomon Islands has made no notifications c oncerning state trading enterprise within the 
meaning of Article XVII of the GATT 1994.  In th e context of the previous Review of Solomon 
Islands, the authorities indicated that there were only two state-trading enterprises in the sense of 
Article XVII of the GATT 1994:  the Government Pharmacy, which has exclusive import rights on 
methylated spirits and ethyl alcohol, and the Co mmodities Export Marketing Authority (CEMA).  It 
appears that the Government Pharmacy is still in  operation, although it is not clear whether its 
                                                      
90 Excluding revenue from import and export duties, and excise taxes.  Ministry of Finance and 
Treasury (2008) and (2007). 
91 Central Bank of Solomon Islands online information, "Small Business Finance Scheme".  Viewed at:  
http://www.cbsi.com.sb/fileadmin/PDF/notices/SBFS_Brochure.pdf. 
92 Central Bank of Solomon Islands online information, "Small Business Finance Scheme".  Viewed at:  
http://www.cbsi.com.sb/fileadmin/PDF/notices/SBFS_Brochure.pdf. 
93 International Finance Corporation and The World Bank Group (2005). WT/TPR/S/215/Rev.1 Trade Policy Review 
Page 42 
 
 
exclusive import rights are still in force.  Unde r the Commodities Export Marketing Authority Act, 
the CEMA has exclusive export rights on some  agricultural commodities (see Chapter IV(2)). 
118. There are SOEs in a wide range of sectors,  including agriculture, fishing, forestry, 
manufacturing, electricity, broadcasting, air transport, ports, posta l services, and water.94  T h e  
Investment Corporation of Solomon Islands (ICSI),  a statutory body created in 1988 to hold the 
Government's shares in several enterprises95, has equity holdings in seven enterprises:  
Solomon Airlines Ltd (100%), Solomon Islands Prin ters Ltd (100%), Sasape  Marina Ltd (100%), 
Soltai Fishing and Processing Company Ltd (51%),  Kolombangara Forest Products Ltd (40%), 
Solomon Telekom Company Ltd (2.7%), and Pacific Forum Line Ltd (0.6%). 
119. While the authorities believe that there are social  benefits attached to state-owned enterprises, 
they are considering privatization as a means of enhancing the viability of some SOEs.96 
120. The IMF notes that several state-owned enterp rises are in arrears, depend on government 
support, and provide poor services.97  This partly reflects long-st anding issues like the absence of 
clear strategic goals and performance targets, ambigu ity regarding the role of directors and relevant 
ministers, and weak accountability.98  In its previous Review of Solomon Islands, the Secretariat 
noted that the commercial soundness and viability of several business ventures supported by SOEs 
was highly questionable, and that political interfe rence had sometimes required the ICSI to meet 
social objectives and engage in uneconomic transactions.99 
121. Parliament adopted the State Owned Enterpri ses Act 2007 in August 2007.  Its purpose is to 
"enhance the performance of State Owned Enterprises so  that they provide the best possible services 
for the people of Solomon Islands and contribute to  the long term economic and social development 
of Solomon Islands".100  Regulations are required to implem ent key provisions, including on the 
appointment and duties of directors, the "comm unity service obligation", and the performance of 
regulatory functions by SOEs.  These regulations ha ve not yet been enacted.  The authorities indicate 
that they are reconstructing the accounts of SOEs an d setting up an entity responsible for monitoring 
the application of the Act as part of their efforts to implement it fully. 
122. The following are subject to the Act:  Co mmodities Export and Marketing Authority, 
Investment Corporation of Solomon Islands, Solo mon Airlines Ltd, Solomon Islands Broadcasting 
Corporation, Solomon Islands Electricity Authorit y, Solomon Islands Home Finance Ltd, Solomon 
Islands Ports Authority, Solomon Islands Postal Co rporation, and Solomon Is lands Water Authority.  
The Act's accountability provisions, which include the requirement to make publicly available a 
statement of corporate objectives, annual report, and audited financial statement, extend to all 
subsidiaries owned by these enterprises.  State-owne d enterprises and their subsidiaries must disclose 
assistance received from the Government. 
123. During the period under review, the ICSI divested  part of its equity in Solomon Telekom 
Company Ltd (Chapter IV(8)(iii)).  Solomon Isla nds Plantation Ltd and Solomon Taiyo Ltd, which 
were partly owned by the ICSI at the time of th e previous Review of Solomon Islands, have been 
                                                      
94 National Parliament of Solomon Islands (2007b). 
95 Investment Corporation of Solomon Islands Act, Chapter 143 of the Laws of Solomon Islands, 
1 May 1988. 
96 IMF (2007a). 
97 IMF (2007a). 
98 National Parliament of Solomon Islands (2007b). 
99 WTO (1999), Chapter III(4)(v). 
100 Section 4, State Owned Enterprises Act 2007. Solomon Islands WT/TPR/S/215/Rev.1 
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wound up.  The authorities have received external  assistance to formulate plans for private 
participation in Solomon Airlines Ltd, but have not taken any policy decisions.101  They note that the 
privatization process for Home Finance Ltd is in its final stages, and that they intend to privatize 
Sasape Marina Ltd.  A project is under way to improve the Solomon Island Electricity Authority's 
operational efficiency and financia l sustainability (Chapter IV(6)). 
(v) Government procurement 
124. Solomon Islands is not a party or observer to the Government Procurement Agreement.  In 
general, central government agencies procuring go ods and services, or conducting public works, must 
follow instructions issued by the Ministry of Fina nce and Treasury.  However, several audits by the 
Office of the Auditor General have revealed "w idespread non compliance" with legislation and 
guidelines on government procurement.102  Thus, more needs to be done to ensure that the 
Government acquires products and services at the best possible conditions. 
125. Central government expenditu re on goods and services tota lled around SI$497 million in 
2007, close to 17% of GDP.103  There are no data on the value of procurement at the sub-central level. 
126. Under the Public Finance and Audit Act, the Minister of Finance and Treasury can issue 
financial instructions to ensure the proper s upervision and control of Government finances.104  
Chapter 22 of the Financial Instructions 2004 cove rs procurement of goods, services, and public 
works by the Central Government.  The Financial Instru ctions also cover the sale of state assets.  The 
Instructions are not publicly availa ble, but a copy was provided to th e Secretariat by the Ministry of 
Finance and Treasury in the context of this Review.  A project is under way in the Ministry of Finance 
and Treasury to facilitate the implementation of the Fi nancial Instructions by clarifying some of their 
provisions. 
127. The Permanent Secretary of the Ministry of Finance and Treasury can issue alternative 
instructions when "following the Financial Instructions  would, in particular circumstances, not be in 
the best interests of Solomon Islands".105  A written copy of the alternativ e instructions must be sent to 
the Auditor-General. 
128. There is no central procurement office: ea ch Government entity carries out its own 
procurement;  and provincial governments are res ponsible for their own procurement.  Solomon 
Islands does not maintain a system for the disse mination of procurement information, including 
advance information on procurement opportunities.  Under the Financial In structions, procuring 
entities must publish a notice of invitation to tender  for procurement valued at more than SI$50,000 
(around US$6,530).  Notices must be published in the press and the Gazette  at least two weeks before 
expiry of the deadline to submit tenders.106  The Financial Instructions do not establish a requirement 
to publish notices abroad or in a foreign language , nor do they require the product specification in 
tender documentation to be based on performa nce requirements rather than brands. 
                                                      
101 See, for example, Asian Development Bank (2006). 
102 Office of the Auditor-General (u ndated).  Under Section 108 of the Constitution, the Office of the 
Auditor General must submit to Parliament audit re ports on the accounts of the Central and Provincial 
governments. 
103 IMF (2008b). 
104 Section 6, Public Finance and Audit Act, Chapter 120 of the Laws of Solomon Islands, 1 September 
1978. 
105 Chapter I, Financial Instructions 2004. 
106 Section 524, Financial Instructions 2004. WT/TPR/S/215/Rev.1 Trade Policy Review 
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129. There are no registration requirements for prosp ective tender participants.  Procuring entities 
may maintain lists of "preferre d suppliers" for frequent purchases.107  However, according to the 
authorities, preferred supplier lists are not used in practice. 
130. Open tenders are required for procurement in excess of SI$50,000.  Contracts of SI$50,000 or 
less must be awarded on the basis of at least three written quotations (if the value exceeds SI$10,000), 
three verbal quotations (if the value falls betw een SI$2,000 and SI$10,000), or direct tendering 
(SI$2,000 or less).  Quotation requirements may be waived if the product in question is available only 
from a single source or at "a fixed price", or in an "emergency".108  The Financial Instructions do not 
define the term "emergency".  No data are av ailable on the value of procurement conducted under 
each of these methods. 
131. Each ministry must establish a tender board  responsible for awarding contracts valued 
between SI$50,000 and SI$500,000.109  The Central Tender Board of the Ministry of Finance and 
Treasury awards all central government procurement c ontracts exceeding SI$500,000.  As part of the 
tender evaluation process, a technical officer mu st submit to the tender board a written report 
specifying the reasonable cost for the product in question, the competence and previous performance 
of the bidders, and their compliance with the tender conditions.110  The Financial Instructions do not 
contain provisions requiring tender boards to publici ze award decisions.  According to the authorities, 
foreign firms established outside Solomon Islands are not required to have an agent in Solomon 
Islands to participate in tenders. 
132. The Financial Instructions do not preclude discrimination between foreign and domestic 
products or suppliers, or against fo reign-owned suppliers.  Neither do th ey prohibit offsets.  There are 
no provisions that grant foreign products or suppliers less than national treatment. 
133. There is no formal procedure for bidder complain ts.  However, according to the authorities, 
bidders can lodge administrative complaints with th e tender board responsible for a particular tender. 
(vi) Intellectual property rights 
134. Solomon Islands has not adopted any legislati on to implement the TRIPS Agreement.  The 
legal framework offers copyright protection;  patents and trade marks registered in the 
United Kingdom are eligible for registration in  Solomon Islands under statutes that predate 
Independence.  Government experts were not ava ilable to comment on this section of the report. 
135. Solomon Islands has never made a notificati on under the TRIPS Agreement or a submission 
to the TRIPS Council.  There have not been any WTO disputes on intellectual property rights 
involving Solomon Islands.  Solomon Islands is not a member of the World Intellectual Property 
Organization, neither is it a signatory to any international intellectual property rights treaty. 
136. Solomon Islands does not have a specific polic y on intellectual property rights.  It did not 
adopt any legislation to implemented the TRIPS Agreem ent.  In the context of the previous Review of 
Solomon Islands, the authorities expressed the intenti on to bring their intellectual property regime into 
conformity with WTO obligations by 2002.111 
                                                      
107 Section 519(7), Financial Instructions 2004. 
108 Sections 521 and 543, Financial Instructions 2004. 
109 Section 519, Financial Instructions 2004. 
110 Section 529, Financial Instructions 2004. 
111 WTO (1999), Chapter III(5). Solomon Islands WT/TPR/S/215/Rev.1 
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137. The main statutes on intellectual property rights are the Copyright Act, the Registration of 
United Kingdom Patents Act, and the Registration of  United Kingdom Trade Marks Act (Table III.8).  
At the time of the previous Review of Solomon Is lands the Secretariat noted that the Copyright Act 
was not being implemented because it had not been published in the Solomon Islands Gazette .112  The 
Secretariat was unable to confirm whether this Act has yet been published. 
Table III.8 
Summary of intellectual prop erty rights protection, 2008 
Main legislation Duration Coverage 
Patents    
Registration of United Kingdom 
Patents Act, Chapter 179 of the Laws 
of Solomon Islands, 14 July 1924 Patents expire at the same 
time as their respective U.K. 
patents Registration in Solomon Islands is  limited to patents granted in 
the United Kingdom within the previous three years 
Industrial designs   
No specific statute n.a. n.a. 
Utility models   
No specific statute n.a. n.a. 
Trade marks   
Registration of United Kingdom Trade 
Marks Act, Chapter 180 of the Laws of 
Solomon Islands, 20 June 1939 Trade marks expire at the 
same time as their 
respective U.K. trade marks Registration in Solomon Islands is limited to trade marks 
registered previously in the United Kingdom 
Geographic indications   
No specific statute n.a. n.a. 
Copyright and related rights   
Copyright Act, Chapter 138 of the 
Laws of Solomon Islands, 1 June 1988 50 years from the end of the 
calendar year in which the 
author died, the recording or film was published, or the broadcast made Original literary, dramatic, musical, or artistic work;  sound 
recordings, cinematograph films,  broadcasts, and editions first 
published in Solomon Islands that meet certain conditions.  General exceptions are listed under sections 7 and 15 of the Act;  special exceptions are contained in sections 8 to10 of the Act 
New plant varieties   
No specific statute n.a. n.a. 
Layout designs of integrated circuits   
No specific statute n.a. n.a. 
Undisclosed Information   
No specific statute n.a. n.a. 
 
n.a. Not applicable. 
 
Source: WTO Secretariat, based on Copyright Act, Registration of United Kingdom Patents Act, and Registration of 
 United Kingdom Trade Marks Act. 
138. There are no statutory provisions on compulsory licensing of intellectual property rights.  
Under the Copyright Act, the copyright owner cannot prevent someone who does not own the copyright from importing protected items acquired legally in a foreign market.
113  The Registration of 
United Kingdom Patents Act and the Registration of  United Kingdom Trade Marks Act do not contain 
provisions on international exhaustion.  In practice,  Solomon Islands allows parallel imports of items 
protected by patents and trade marks. 
139. Under the Copyright Act, the Minister may deny copyright protection to the works of citizens 
from countries that "fail to give adequate  protection to Solomon Islanders' works".114  The Secretariat 
could not determine whether this provision has ever been used. 
                                                      
112 WTO (1999), Chapter III(5). 
113 Sections 6(2) and 14 (6). 
114 Section 27(1). WT/TPR/S/215/Rev.1 Trade Policy Review 
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140. The Copyright Act provides for civil remedi es and criminal penalties for copyright 
infringement.115  The production, exhibition, or distribution for commercial purposes of items that are 
known to infringe copyrights is a criminal offence.   The Registration of United Kingdom Patents Act 
and the Registration of United Kingdom Trade Marks Act do not contain enforcement provisions. 
141. Under the Copyright Act, a copyright owner may request the Comptroller of Customs to 
prohibit imports of items suspected of infringing copyright for a period of up to five years.116  
According to the authorities, no imports prohibitions have been put in place under this provision. 
                                                      
115 Part IV, Copyright Act. 
116 Section 24.