Basic information
Outline of the system
The Business Licensing system aims to facilitate business development by levelling the "playing field" for investment through legislative enforcements of all trading businesses in the country. It also operates as a final stamp to ensure business compliance with ancillary legislations so as to safeguard the health and safety of consumers and the general public.
Importation is considered under Schedule 2 of the Business Licence Regulations 2007 as a business activity and therefore requires all businesses which undertake importation activities to hold a valid import business licence.
Product coverage
Import Business Licensing covers all product types except products which breach the Consumer Protection Act 2000 and Consumer Protection Regulations 2006. A single Import Business Licence can be utilized to permit the importation of all product types relevant to the business activities registered under the venture in the Business Licence Registry given that they meet the conditions prescribed in the Business Licence Regulations 2007 Schedule 3A.
Agricultural products, fish products, liquor, therapeutic goods, flammable goods, transportation, recycling, telecommunication, construction, information technology.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Non-Automatic licensing to regulate importing businesses.
Products under restriction as to the quantity or value of imports
The Import Business Licensing is not in any means intended to restrict the quantity or value
of imports but rather to enforce compliance of all importing businesses to relevant ancillary
legislations including the Consumer Protection Act 2000 so as to protect the health and safety of the general public.
Prior efforts to streamline the general licensing system have recommended the strengthening
of line ancillary legislative enforcements as an alternative to import business licensing. However, given the role of business licensing in facilitating business development, by creating a levelled playing field for investment, and safeguarding the health and safety of the general public, the recommended repeal of the business licensing system, including import licensing, was denied by Government in consideration of the consequent threat to the general public and to investment. The recommendation was to be reconsidered at a later stage when existing loopholes in the current licensing legislative system and limitations in the enforcement capacity of line legislation are resolved. The recommendation was to be reconsidered at a later stage.
Questions for products under restriction as to the quantity or value of imports
N/A
The system applies to products originating from which country?
The system applies to all goods regardless of their originating country.
Expected duration of licensing procedure
Ongoing
Legal requirements
Is the licensing statutorily required?
Import Business Licensing is stipulated under the Business Licence Regulations 2007 Schedule 2 and subjected to conditions provided in Schedule 3A.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The Business Licence Act requires the licensing of all business activities listed in Schedule 2 of the Business Licence Regulations, including importations, but does not subject any imported product to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
Abolishment of the import licensing system by deletion of importation from the list of business activities in Schedule 2 is subject to the approval of Cabinet and does not require legislative approval. Business activities provided in Schedule 2, including importation.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
All persons, firms and institutions are eligible to apply for licences.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Ministry of Trade and Economic Development/Business Registry Division
Address
Latai Estate, Cnr. Of Tupoulahi and Salote Road, Fasi-moe-Afi, Nukualofa, Tonga
Telephone
7400105/7400104
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Ministry of Trade and Economic Development/Business Registry Division
Documentation requirements
What information is required in applications?
What documents is the importer required to supply with the application?
Refer to Form 1 and Form 3 provided under the Business Licence Regulations 2007.
Window of submission of an application
How far in advance of importation must application for a licence be made?
The Import Business Licence, such as any other Business Licence, is an annual licence and is renewed every year prior to the expiry date of 31st December of the year next following the renewal date.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Applications for import business licences can be lodged during any working day. Renewal applications however are to be lodged at least 30 days prior to the expiry of the licence.
Issuing the license
Can a licence be granted immediately on request?
Upon application, import business licences can be issued within the timeframe of seven working days given that all application requirements are completed.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Businesses which inadvertently import goods without an import licence can promptly obtain an import licence upon lodging the required application with the Business Licensing Unit of the Ministry.
Which administrative body is responsible for approving application of licences?
The import business licence is not subject to any sector specific requirements and is therefore effected by the approval of the Business Licensing Officer.
Must the applications be passed on to other organs for visa, note or approval?
The importer must hold auxiliary business licences for the distribution or processing of the imported products. These auxiliary business licences would be subject to sector specific requirements as stipulated under the Business Licence Regulations Amendment 2010.
Are there any other conditions attached to the issue of a licence?
All Import Business Licences are subject to the below listed conditions as provided under Schedule 3 of the Business Licence Regulations 2007, namely:
- No goods imported under this licence shall:
i. Be counterfeit in nature;
ii. Contain labelling that is false, misleading or deceptive as to the nature or character of such goods;
iii. Be described or presented on any label by words, pictorial or other devices which refer to or are suggestive of any other goods which such goods may be confused with.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
Fee for new applications is TOP$ 120 and for renewal applications is TOP$ 100.
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issue of licences.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
As provided under the Business Licence Act 2002 Section 8, applications for import licence may be refused if the application contravenes Section 5 of the Act hence involve a prohibited activity, the applicant is under 18 years of age or involve a partnership where one of the partners is under 18 years of age, or the applicant is a foreign investor who does not hold a valid foreign investment registered certificate.
Are the reasons for any refusal given to applicants?
Upon application, the applicant will be advised to consider the above stated grounds for refusal and will be required to provide the requirements necessary for the approval of their business licence applications, as provided under the Business Licence Regulations Amendment 2010.
Have applicants a right of appeal in the event of refusal to issue a licence?
A right of appeal against refusal of an application is not provided in the Legislations as all complete applications are appraised and approved.
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
Applications for import business licences can be lodged during any working day. Renewal applications however are to be lodged at least 30 days prior to the expiry of the licence.
What documents are required upon actual importation?
Documents required upon actual importation are subject to the Customs Department.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
As provided under the Business Licence Act 2002 Section 10, a business licence is valid for the period ending on 31st December next following the issue date and can be renewed upon payment of renewal application fee and submission of renewal application form prior to the expiry date of the business licence.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a licence or a portion of a licence.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
As provided under Section 13 of the Business Licence Act 2002, business licences are non-transferable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Foreign exchange is subject to banking authorities and the compliance of the importer with their policies.