Vanuatu

What are the regulations and policy provisions for foreign trade?

1. Trade regulatory department
The Ministry of Foreign Affairs, International Cooperation and External Trade is responsible for formulating policies for government diplomacy, international cooperation, foreign trade and other related industries, and promoting their development. The Vanuatu Customs and Taxation Bureau is under the jurisdiction of the Ministry of Finance and is responsible for customs duties and domestic taxation. The Bureau of Trade, Industry and Investment is responsible for domestic trade and industry, and also participates in import and export processes; Responsible for multilateral and bilateral trade negotiations, trade agreement signing, and foreign investment.

2. Trade regulatory system
Vanuatu has not yet introduced specific laws and regulations related to foreign trade, but customs have introduced customs laws, import/export tariff bills, and so on. The government is conducting research on trade remedy legislation, including anti-dumping, countervailing, and safeguard measures.

3. Relevant regulations on trade management
The Ministry of Trade and Industry and the Chamber of Commerce are responsible for verifying the origin of products, while the Commodity Market Committee is responsible for signing certificates.
The government encourages export-oriented investment projects and exempts their exported goods or services from export taxes (excluding shells and logs). The government of Vanuatu has established the following channels for imported goods:
(1) Green channel: Release within 45 minutes (referring to imported goods that do not pose potential risks and do not contain prohibited or restricted substances);
(2) Yellow channel: Release within 1 day (referring to imported goods with incorrect tariff codes, requiring quarantine certificates, or a tendency to falsely declare taxes);
(3) Red channel: Release within 3 days (referring to imported goods that require immediate inspection or have a high risk of fraud).
In February 2018, the Vanuatu Ministry of Agriculture issued a decree temporarily prohibiting the logging, processing, and sale of rosewood, which will take effect from February 28, 2018.

4. Inspection and Quarantine of Import and Export Commodities
Vanuatu requires fumigation certificates for second-hand clothing, coconut products, wood, etc; There are strict quarantine requirements for food imports.

5 Customs management rules and regulations

Customs clearance procedures
The customs clearance process in Vanuatu is very simple:
(1) After receiving the bill of lading and other relevant documents, the importer shall go to the shipping agency to check the arrival date and tax rate, and pay 1000 watts; The shipping agency will notify the importer after the goods arrive.
(2) Go to the customs to purchase the customs declaration form and declare it.
(3) Pay terminal fees, container loading and unloading fees, and container towing fees at the port.
(4) Pick up the goods from the customs warehouse at the dock with the customs receipt of the customs declaration form. Import declaration matters:
(1) Within 24 hours after arriving in Vanuatu, the captain must submit and store the ship's documents, original declarations, and translations signed by him at the customs office before loading and unloading.
(2) Before any goods exported to Vanuatu are landed, the shipper, importer, or their agent must make a detailed customs declaration to the customs office. However, the vessel may be authorized to unload after presenting the original vessel declaration.
(3) Any goods imported into Vanuatu must provide proof of the nature, quantity, mark, number, and weight of the goods, as well as the source, destination, and transportation method.
(4) The shipper, importer, or agent must fill out the declaration form according to regulations. Export declaration matters: Before the export goods are loaded onto the ship, they must be declared in the same way as imported goods.

Vanuatu is currently implementing the WTO Customs Evaluation Agreement, so importers and exporters need to contact Vanuatu Customs to confirm the new regulations before shipping. The tariff rate in Vanuatu adopts the HS coding system, which is generally calculated based on the CIF price of goods, and the tax rate ranges from 0% to 200%. The general commodity tariff rate is maintained at 15-20%, while the luxury goods tariff rate is relatively high.
Except for rice, flour, canned mackerel, and tobacco products, no license is required for other imports. Individual goods are prohibited from being imported, such as smoke and fire. Except for unprocessed shells and logs, there are no restrictions on the export of other goods. The tariff rate ranges from 2% to 15%, with an average of about 3%. The export of cultural relics requires approval from the cultural center. To protect the interests of state-owned enterprises, Vanuatu implements high import taxes, such as a tax rate of 230% for beer, 60% for paint, 82% for juice and ice cream, 72% for fish products and furniture, 52% for cheese, and 48% for vegetables.
To reduce the impact of high tariffs on high costs, manufacturers can apply for exemption or exemption of import taxes on capital goods, raw materials, and intermediate products. After submitting the tax exemption application to the tax exemption committee, it shall be recommended to the Ministry of Finance.