This section of our website is to:
- Help you with Customs requirements if you are manufacturing excisable products (such as alcohol, or tobacco and wine)
- Detail the requirements for duty free purchases of alcohol (such as ethyl alcohol and alcohol used in manufacture)
The following products attract excise duty:
- Alcohol and alcoholic beverages (such as wine, spirits and beer)
- Tobacco, tobacco products and tobacco substitutes
The rates of excise duty on the excisable goods can be found in the excise duties tariff schedule and part one of Schedule 2 of the Customs Excise Act.
Manufacturers are advised to refer to the Customs Revenue Measures in the 2013 Budget for the new Excise Rates.
This section of our website is to:
- Help you with Customs requirements if you are manufacturing local products (such as matches, cartons, milk etc)
- Detail requirements to manufacture approved goods (refer to Concession Codes 231, 232, 236 of pages 800 to 803 of the 2012 Fiji Harmonised Customs Tariff)
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.
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.
- Lomaiviti; and
- 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 FJ$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 FJ$250,000 to FJ$1,000,000, for a period 5 consecutive fiscal years; or
- capital investment from FJ$1,000,000 to FJ$2,000,000, for a period of 7 consecutive fiscal years; or capital investment above FJ$2,000,000 for a period of 13 consecutive fiscal years.
- The income of any new activity approved and established from 1 January, 2015 shall be exempt from tax for a period of 13 consecutive fiscal years with an initial capital investment of FJ$2,000,000 or more.
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 Tax Free Region
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 per cent.
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.
License of Goods
- All restricted goods require permit or license from different government authorities.
- All goods that are exported from Fiji with the value exceeding FJ$20,000 requires export license (form F) which can be obtained through the Reserve Bank of Fiji. Click here for prohibited and restricted imports and exports.
License for Bonded Warehouse
- The license fees payable for each bonded warehouse shall be a minimum of FJ$1279.80 per year. And if the building, storage tank or enclosure in respect of which such license is issued has a capacity of more then 50 cubic meter, the amount to be paid for such license shall increase at the rate of FJ$1 for every additional cubic meter of storage space above 50 cubic meters but shall not in any one case exceed FJ$1794 for the whole of one year.
- The license shall expire on the 31st December of each year and if the license is not paid by 7th January of the following year or the Chief Executive Officer may refuse to allow any transaction to take place in the warehouse. Reference Customs Regulation 63.
- Renewal of license is also subject to Customs compliance level of the bond owner to the Customs requirements and legislation as stipulated in the bonded warehouse conditions.
Customs Agents License
- The license fee payable by a Customs Agent shall be FJ$255.55 per annum and if it is not paid by 7th January of the following year, the Chief Executive Officer may refuse to allow any Customs transaction or business to be carried out by the agent until such fee is paid. Reference Customs Regulation 129.
Customs Carriers License
- An annual fee of FJ$127.80 is payable for each license. Reference Customs Regulation 132.
Licenses for Vehicles and Boats used for Carrier
- Each vehicle or boat employed for the carriage of goods subject to Customs control shall be separately licensed. For such purpose and the Customs carrier concerned, shall pay an annual fee of FJ$25.55 in respect of each such vehicle or boat. Reference Customs Regulation 133.