(Last updated: 4 Aug 2011)

Business etiquette

Business tips

When visiting a New Caledonian company, particularly for the first time, it is strongly recommended that you use an interpreter, unless your contact confirms that this is not necessary.

It is important to visit the market regularly to develop and maintain a close working relationship. It is preferable to make appointments prior to visiting customers. Many New Caledonian businesses are small and you will find that your contact is the owner or Managing Director. Personal relationships tend to be a little more formal than in Australia and first names are generally not used until you have built up a good relationship.

You should address people by Monsieur 'surname' or Madame 'surname'. If your contact has spent time in Australia, then he/she may well initiate the use of first names. If in doubt, however, use Monsieur or Madame.

New Caledonia is not as large as other markets, but importers tend to be loyal towards reliable suppliers who are prepared to meet smaller market requirements. Moreover, as New Caledonia is a French Territory there are strong connections with France and Europe and you will find this to be quite competitive in terms of sourcing and access to suppliers.

Due to the size of the market and competition between importers, 'exclusivity' is likely to be requested. You will undoubtedly be questioned as to the other companies you are visiting, so discretion is always good.

If you are inviting a business contact to a meal, it is common practice to extend the invitation to your contact’s spouse, particularly if the invitation is for dinner. Exchanging gifts is not common. If invited to a meal at someone’s home, a gift is not expected. However, if you wish to do so, then fresh flowers or wine are preferred.

Smart casual is the norm, with tailored trousers and open necked shirt suitable for most business meetings. Suits and ties are rarely worn to business meetings or functions.

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

For you to assess the import duties that apply to your products overseas, you need to find out what the Export Commodity Classification is for each of your products (with local customs or freight forwarding companies). This classification system is harmonised across countries, so that each post can then advise on rates applying in their respective country, based on this classification.

Import duties in New Caledonia are ad valorem (%), i.e. assessed on the cost, insurance and freight (CIF) value of the goods.

Goods from the European Union (EU) are exempt from customs duty, but subject to all others. In general, goods from the EU will be 10 per cent cheaper than from Australia. However, delivery time and freight costs often offset the difference in price. In addition, for mining and metallurgical projects, as well as in some specific sectors, goods imported can be duty free, or partially exempted.

Customs authority contact details:

New Caledonian Customs Department
Direction Régionale des Douanes et Droits Indirects (DRDNC)
1, Rue de la République
98 845 Nouméa Cedex
Tel: +687 265 427
Fax: +687 276 497
Email: douanes.nc@offratel.nc

Non-tariff barriers

There are four types of import restrictions:

• Import licences are required for some products (specified in the Restricted Products List). The license is requested by the importer, and administered by the Customs Department.
• Quotas are restrictions placed on some items to protect domestic production (either a fixed value or a fixed quantity of imports): frozen chicken, plastic bags, chocolate and ice cream.
• Administrative approval – some consumable items may only be imported by governmental organisations (beef meat, potatoes and cigarettes). Other items require approval by the appropriate government department (eg. pharmaceuticals, telecommunications equipment and dangerous products).
• Prohibited items – the import of some items is prohibited to protect local industry. Prohibition may apply to all imports, or only to goods of non-EU origin: yoghurt, fresh poultry and paper products (ie. toilet paper, paper napkins), cement, household soaps, malt and beer.

Labelling and packaging

All products sold on retailers’ shelves must have French labelling or the retailer can be heavily fined. Stickers on packaging are currently tolerated by the local authorities. New Caledonian authorities would prefer this to be a temporary measure until exporters revamp current uni-lingual labelling. Distributors tend to favour exporters who have made the effort to do so. For further information, please contact the Department of Economic Affairs.

For industrial products, it is strongly advised to have all users’ guide/instructions for use translated into French.

Packing material likely to carry disease is prohibited. Packing should be secure, guard against humidity, bear the consignee's mark (including port mark) and should be numbered. IPSM15 is implemented for palettes, crates, wooden boxes.

Special certificates

Animal and vegetable products require sanitary health certificates issued by the approved authority in the country of origin.

Fresh meat requires veterinary certification indicating freedom from disease and suitability for human consumption. Quarters of beef must bear an inspection stamp.

Canned meat requires veterinary certification of ante- and post-mortem inspection, no use of antiseptics and sterilisation by heat.

Frozen chicken requires veterinary certification of fitness for human consumption.

Milk and milk products require veterinary certification that the country of origin is free of foot and mouth disease, and certification by an authorised official signifying that the products are produced from pasteurised milk and are the product of a registered export establishment.

Spirits require certification of age.

Documentary requirements

As cargo reaches Noumea only three days after leaving Sydney, it is essential that documents necessary for clearing goods through customs be dispatched in time to effect prompt clearance. Delays in clearance can be minimised by:

• Sending a copy of the invoice by courier directly to the customer together with the 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.
• Faxing advice of shipment with name of ship, goods dispatched and FOB or CIF value (Incoterms 1990).

Commercial invoice

No prescribed form but must be signed by the manufacturer or supplier and indicate:

• country of origin
• FAS or FOB and all charges to CIF value (Incoterms 1990) in Australian dollars
• packing details
• weight and dimensions
• unit price
• description of the goods

Certificate of origin

Included with invoice but may be requested separately. When requested it should be certified by a recognised chamber of commerce.

Bill of lading

Normal commercial practice. To Order bills are permitted.

Packing list

Mandatory when packages in a shipment are not uniform in type, quantity, weight or value.

Public health requirements

Products of animal and vegetable origin are subject to sanitary and/or phytosanitary controls. Certification by the approved authority in the country of origin is required. In Australia, this is usually, the Australian Quarantine and Inspection Service (AQIS), Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.

Usually, only pharmaceutical products freely obtainable in France may be imported. Exceptions are granted for certain Australian products imported directly by pharmacists. Pharmaceutical products imported by private individuals for special purposes require prior authorisation by the official pharmaceutical authority.

Weights and measures

The metric system applies.

Insurance

Normal commercial practice.

Methods of quoting and payment

It is standard practice for New Caledonian importers to request CIF Noumea (Incoterms 1990: cost + insurance + freight price) or FOB - Sydney or Brisbane pro-forma invoices in Australian dollars when placing an order.

If you are sending samples, it is strongly advised that you mention ‘Echantillons - sans valeur commerciale’ (Samples with no commercial value) and the carton to be less than 5kg or it will attract extra duties (less than 5kg cartons of samples attract no duty).

Taxation

Domestic taxation is relatively low, with a general tax on services of five per cent. Value Added Tax (VAT) is not applied in New Caledonia.

All merchandise coming into New Caledonia is subject to:

• General Import Tax (zero to 31 per cent) – usually 21 per cent
• Basic Import Tax – 5 per cent
• Port Tax (1 per cent) or Airfreight Tax (3 per cent)
• Customs Duties (zero to 20 per cent)

In general, goods from the EU will be 10 per cent cheaper than from Australia. However, delivery time and freight costs often offset the difference in price. In addition, for mining and metallurgical projects, as well as in some specific sectors, goods imported can be duty free or partially exempted.

There is also a locally manufactured products protection tax (TCPPL), which make imported products not competitive in New Caledonia, in order to protect local manufacturers. This applies to pasta, yoghurts, chocolate, ice cream, etc.

Other import taxes include:

• Consumption tax on imported products (which compete with locally produced goods) and agricultural conjunctural taxes are levied. These are ad valorem, and according to product.
• Additional taxes such as the Tax on Renewable Energies or special tax applied according to product.
• Sanitary and social tax on alcohol and tobacco.