Incentives

Duty Concession

Minister of Finance may grant remission of reduction of duties to assist industries in Fiji subject to such conditions as he may consider necessary in respect of imported machinery and equipments including parts and material. If he is satisfied, it is to be used in a manufacturing or production process which will promote or create the development of industry in the Country.

Under Section 10 to 11 of the Custom Tariff Act, the Minister may grant remission or reduction of duties certain cases or to assist industries. Duty concession to packaging materials are available in Concession Code 231 and approved raw materials used by the manufacturer of the approved goods under Code 236 in Part 3 of the Customs Tariff Act. (Link to Act)

Tax Free Region

Who will qualify for this incentive?

This incentive is available to a newly incorporated entity engaged in a new trade, business or manufacture established in the following areas:-

  • Vanua Levu – included Taveuni, Rabi, Kioa and other islands generally included for government’s administrative purpose as being in the Northern Division.
  • Rotuma
  • Kadavu
  • Levuka
  • Lomaiviti; and
  • Lau
  • Any company may apply to the Minister for Finance in a prescribed form for an operating license.

Criteria for Grant of License

  • The company is a newly incorporated entity engaged in a new trade, business or manufacture.
  • The minimum initial level of investment should be $250,000 from 1 January 2010.

Tax Exemptions Available

  • The income of any new activity approved and established between 1 January 2010 to 31 December 2014 shall be exempt from tax as follows:
    • capital investment from $250,000 to $1,000,000, for a period 5 consecutive fiscal years; or
    • capital investment from $1,000,000 to $2,000,000, for a period of 7 consecutive fiscal years; or
    • capital investment above $2,000,000 for a period of 13 consecutive fiscal years.
  • The income of any new activity approved and established from 1st January 2015 shall be exempt from tax for a period of 13 consecutive fiscal years with an initial capital investment of $2,000,000 or more.

Duty Exemption

  • Import duty exemption on the importation of raw materials, machinery and equipment (including parts and materials) insofar as they are required for the establishment of the business in the Tax Free Region.

Other benefits under the TFR

  • Additional 5 years of income tax exemption is available to any company granted a license and having indigenous Fijian landowner equity of at least 25 percent.
  • Additional 7 years of income tax exemption is available to any hotel developer granted a license and having indigenous Fijian landowner equity of at least 25 percent.

Duty Free Processing Zones and Bonded Factories

Duty Free Processing Zones and Bonded Factories are under Customs Control where all goods whether raw materials or semi-finished articles are duty unpaid. Duty Free Processing Zone is commonly called “Tax Free Zone [TFZ] “and the Bonded Factories are called “Tax Free Factories [TFF]” in Fiji. The TFZ is managed by Fiji Trade & Investment Bureau [FTIB] but controlled by Customs Administration. Here, most if not all Tax Free Factories should be located in the Tax Free Zone at one centre where it is easier for Customs Administration to control the TFF operations. The idea of TFF and TFZ is to allow Tax Free Operators to import the raw materials and export the finished articles or manufactured goods. All TFF goods are subject to 100% export as it is designed for the export markets under various trade agreements such as SPARTECA, MSG , US Trade Visa, Lome IV or Cotonou Agreement and a Bilateral Trade Agreement. To qualify for exports under the preferential duty access under the bilateral and multilateral agreements, Customs Administration in Fiji must determine that the goods are made / produced / manufactured in Fiji with “made in Fiji ” labels appearing on the goods. A Certificate of Origin is issued by the Customs Administration in Fiji confirming that the goods are of Fiji origin in order to qualify for duty free access in the country of import provided that Fiji and the country where the Fiji goods are exported is member of the Trade Agreement or member of the Free Trade Area.

Duty Suspension Scheme

Interested organizations may apply to the Exporters Club (EC) to join the scheme by submitting a formal ‘Application for Membership to DSS’ (Form DSS 6).

Exporters Club will determine the EP Ratio (Entitlement Proportion Ratio) = approved import input ¸ DSS exports. The application is vetted and processed before forwarding to the Comptroller of Customs for final approval. Every application submitted will have a list of goods or materials that is intended for importation under the scheme.

Customs will verify the information submitted by EC that the applicant has concrete intentions to engage into an activity that involves import of raw materials or goods and the substantial transformation of these into products for subsequent re-exportation outside Fiji and approves or disapproves the application.

‘Substantial transformation’ means imported inputs, which upon manufacturing or processing will result in a finished product that is substantially different from the original by the virtue of a change to the classification of goods in its first four digits of nomenclature.

If the application is approved Customs will issue licence to DSS Exporter.

If disapproved Customs will advice EC accordingly.

EC will activate the membership and enters details into software program.

The exporter receives licence and begins operation as a DSS firm.

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HEAD OFFICE LOCATION

CONTACT DETAILS

Revenue & Customs Service Complex,
Lot 1 Corner of Queen Elizabeth Drive
& Ratu Sukuna Road,
Nasese,
Suva.
Phone: (+679) 3243000
Fax: (+679) 3315537
Email: info@frcs.org.fj