Doing business

(Last updated: 28 August 2008)
 

Business opportunities

Compared with other export markets, Fiji and the South Pacific provides opportunities to a vast array of products and services from Australia, ie. the breadth of trade is immense. This is because island nations have a broad range of import requirements and many multinational companies services the Pacific from the Australian regional head office. As a result, over 3,000 Australian companies export to Fiji every year making it a top 10 global destination for Australia by the sheer number of exporters.

Austrade’s business development specialists have prepared a range of market profiles that offer potential to assist in your exporting investigations. Austrade’s in-market teams have identified opportunities for Australian exporters in various industries (see 'Profiled industries in this market' on the left side of this page).

In conjunction with the market profiles, the Opportunities Online portal may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, identified by our overseas network to Australian businesses.

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business tips

There are cultural differences between indigenous Fijians and Indo-Fijians or Fiji-Indians (ie. Fiji citizens of Indian origin). Most business people are Indo-Fijians, although there is a growing presence of Indigenous Fijians in business. 

Business dress is informal. Normal attire for men is trousers with an open-neck, short-sleeve shirt. For more formal business meetings, (eg. with a Government Minister) a tie might be worn, normally with a short sleeve shirt. Suits and jackets are seldom required.

Mannerisms of which you need to be aware include:

• Standing with hands on hips is seen as an expression of anger or arrogance.
• Indigenous Fijians do not like to be touched on the head - it is a traditional taboo.
• Pointing to a person while talking to them is generally considered rude.

Most business people prefer to be called by their first name, rather then using Mr/Mrs (surname). It is a normal practice to use titles in formal correspondence. Certain indigenous Fijians have the title 'Ratu' (for men) or 'Adi' (pronounced ‘An-dee’, for women), meaning that they are of chiefly status. The title should always be used with their first name when addressing them.

Culturally, the Fijian people are very polite and respectful. You will find that they are hesitant to ask for clarifications or ask questions, thinking they could be seen as being rude or offensive. Therefore, it is important to develop a good rapport and discuss issues thoroughly to ensure that both parties interpret each other correctly. When discussing business with Fijian people note that ‘yes’ doesn't always mean, ‘I agree with you’ - it could mean ‘I understand you’.

Fiji Indians can be quite direct and want to know the ‘deal’ fairly quickly, ie. ‘What’s the price?’ They are traders by instinct and often base their evaluation on price. So if other aspects of your product are important, such as quality or service, then it pays to emphasise, and if possible, quantify them.

Part of the culture is Fiji time. Timeliness is not strictly observed, however, in recent years, this has become less apparent. Meetings and appointments may not start on time - delays of 10-15 minutes are quite normal. Guests invited to trade displays or seminars often arrive up to half an hour late.

It is not unusual to be offered a bowl of yagona or kava. Kava is often referred to as the national drink and is offered to visitors on special occasions. We suggest that you accept the first bowl offered so as not to cause offence and then politely decline should you not wish to drink anymore.

Alcohol is consumed in the business community and red wine seems to be becoming more common. Spirits are commonly consumed at business gatherings.

The exchange of gifts is not a widely accepted Fijian business practice. On occasions as a gesture of friendship, one may be presented with gift but it does not necessarily mean that you have to respond likewise.

Please also note:

Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Single-column tariffs are based on the Harmonised System. Fiscal duties are mainly ad valorem (per cent) assessed on a cost, insurance and freight (CIF) value (Incoterms 1990). Units used in assessing specific duties are levied according to product. Specific rates may be slightly altered due to a regulation requiring metric quantities.

Non-tariff barriers

Import control is exercised through adherence to regulations covering the following five classes of restricted goods:

• Absolute prohibitions
• Prohibited unless specified conditions are complied with
• Prohibited unless covered by an import licence issued by the Minister of Finance
• Prohibited unless covered by an import licence issued by the Permanent Secretary for Trade and Commerce
• Prohibited from importation under other laws

Foreign exchange is administered by the Reserve Bank of Fiji. Commercial banks are fully delegated authority to screen and approve overseas remittances of all current payments. Advance payments up to F$0.5 million are made subject to the goods arriving in Fiji within 90 days.
 

Customs authority contact details:

The Director-General
Fiji Islands Customs Service
Dominion House
PO Box 175, Suva, Fiji
Tel: +679 301 551
Fax: +679 302 321 or 315 337

Product certification, labelling and packaging

Labelling and marking

Outer containers should bear consignee's mark and port mark and should also be numbered (to accord with packing list) unless their contents can be otherwise readily identified.

There are no legislative requirements regarding marketing or labelling of goods.

Packaging

Packing of grass, straw, chaff and sacking is prohibited.

Goods should be securely packed, having due regard to the nature of the goods, means of transport and likely climatic conditions during transit and delivery.

Special certificates

Phytosanitary certificates, in addition to the permits referred to in 'Public health requirements' must accompany imported plants. An approved authority in the country of origin must issue the prescribed health certificates. In Australia this is usually the Australian Quarantine and Inspection Service, Commonwealth Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

Sheep and goats are permitted entry, but must be accompanied by a certificate issued by a government veterinary indicating freedom from disease.

Fruit imports must be accompanied by a quarantine certificate attesting that they have been grown in an area free from fruit fly infestation.

The Ministry of Health requires a certificate of fumigation for used clothing.

Imports of brandy, whisky and rum must be certified by the Collector of Customs at port of shipment as having been matured by storage in wood for not less than three years. A certificate of a Collector of Customs or a public authority at the port of shipment will be accepted as adequate proof. Special standards of strength are prescribed for alcoholic beverages.

Methods of quoting and payment

Quotes should be in Fiji or Australian dollars, preferably C&F (Incoterms 1990).

Documentary requirements

Fax signatures are not permitted on original documents. As the time taken for cargo to reach Fiji from Eastern Australia is relatively short, it is essential that documents necessary for clearing the goods through customs be dispatched in time to effect prompt clearance. It is suggested that delays in clearance can be minimised by:

• Posting a copy of the invoice directly to the customer together with name of ship and intended date of departure (this would enable the customer to carry out customs formalities with a bank guarantee in lieu of the bill of lading).
• Cabling or telexing advice of shipment with name of ship, goods dispatched and FOB or FOW (Incoterms 1990) value.

Commercial invoice

No prescribed form and an original and one copy is required by Fiji Customs. The importer may request additional copies, and must include the following details:

• Date and number of the invoice
• Name and address of the seller/consignor of goods
• Name and address of the buyer/consignee
• Name of the ship or flight number if known as the time the invoice is made out
• Country of origin of the goods
• Description of the goods, quantity, number of packages, marks and numbers of each package, the selling price and the terms of delivery (ex-factory, FOB, CIF etc. (Incoterms 1990))

All invoices (including copies) must bear the following declaration (with the relevant parts altered to reflect the details of the shipment):

'The buyer named in this invoice has purchased the specified goods from the vendor named herein for the amounts stated and no further payment either director indirect other than the costs, charges and expenses specified has been or will be made by the buyer in respect of the goods. The goods have not been sold to the importer but are to be imported for .................(appropriate details). The importer/buyer is (i) not associated in business with the seller in any way: a broker, agent, distributor or concessionaire for the seller/consignor; (ii) associated in business with the seller/consignor.'

Inclusion of a product's correct HS classification is not obligatory but is useful for clearance purposes.

Bill of lading/airway bill

No special requirements. To Order bills are acceptable.

Packing list

Packing lists are not compulsory, but facilitate clearance, required for all full container loads of cargo. Optional for loose air-cargo shipments.

Public health requirements

Importation of live animals or animal products listed below, all require an import permit:

• fresh/chilled/frozen and processed meats/poultry
• canned meat/poultry
• all dairy products
• semen
• feathers
• hides
• animal by-products (eg. tallow, biologicals)

Permits are issued by the office of:

Director of Animal Health & Production
Fiji Ministry of Agriculture, Fisheries & Forest
PO Box 15829 Suva

An initial application for a permit must be made in writing and, if the application is approved, an Import Permit will then be issued - usually processed within two weeks of receipt. However, if an application is made for a product which has never been imported into Fiji, a Pest-Risk-Analysis will have to be undertaken, which takes a minimum time of 12 months.

Fruit and vegetables must be accompanied by an import licence obtained from the Chief Quarantine Officer, Ministry of Agriculture Fisheries & Forest, and must comply with specified health regulations requiring methyl bromide fumigation (see also 'Special certificates').

Agricultural seeds are allocated an import permit only after a sample representative of the batch proposed for import has been subject to testing by the Ministry of Agriculture, Fisheries & Forestry.

Pure food ordinances govern the use of colours and preservatives, and the standard, composition and marking of food products.

Importation of the following drugs and their salts is restricted to the Government Pharmacist:

• morphine
• pethidine
• methadone
• phenadoxone
• tincture of opium

Pharmacopoeia is the legal reference for the standard quality and composition of all drugs.

Insurance

Normal commercial practice.

Weights and measures

The metric system.

Taxation

Value added tax, assessed on the duty-paid value, is levied on almost all items at a rate of 12.5 per cent. Excise taxes are levied on alcoholic beverages and tobacco products.

The corporate tax for both resident and non-resident companies is 31 per cent.

The top marginal personal tax rate is 31 per cent, which takes effect at assessable income levels above FJ$20,000. The Fiji Government's stated intention is to progressively reduce this rate, in line with corporate tax.

A double taxation relief convention has been concluded with Australia.

Setting up in Fiji

Finding the right partner

Potential investors in Fiji should contact Austrade Suva who will provide investor’s with a step-by-step guide to investing in the market and referrals to key service providers.

In market representation

Whilst some products and services can be delivered to the market without local representation, for many products a local presence/representation is recommended.  Local partner selection is one of the most important factors that will determine your success in the Fiji market. 

For Australian companies considering appointing a local representative we recommend contact is made with Austrade Suva in the first instance.