(Last updated: 28 May 2011)

Business etiquette

Business tips

Please 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

Vanuatu is in the process of implementing the WTO Customs Valuation Agreement so prospective importers/exporters should check with the Vanuatu Department of Customs and Inland Revenue for the latest information prior to despatching goods to Vanuatu.

Most duties are ad valorem, assessed on the CIF value (Incoterms 1990). Specific duties are expressed in vatu per net metric measurement. Ad valorem (%) rates range from zero per cent to 200 per cent, but in general are about 15-20 per cent. Luxury goods have higher rates.

Certain goods may be exempted from customs import duties and VAT in various circumstances. These include goods imported:

• for specific end-use
• for sale to and exported by tourists
• ships' stores (including fuels)
• for processing and re-exportation
• for agriculture development projects
• for investment projects and goods considered beneficial for the economic development of Vanuatu
• by or on behalf of the Government or by an international convention or agreement are usually duty and VAT exempt

There is currently a 10 per cent tariff surcharge on all imports but the Government of Vanuatu has committed to removing this on accession to the WTO.

Non-tariff barriers

Under the Animal Importation and the Plant Protection Acts, listed items posing a negligible risk may be imported without a permit. Imports of other items coming under the Acts require a permit, issued once the safety of the product has been determined.

Permits should be sought from the Vanuatu Ministry of Agriculture, Quarantine, Forestry and Fisheries. Processed meat imports will only be permitted if they originate from approved suppliers in Australia and New Zealand and are accompanied by relevant quarantine certificates.

Packing, marking and labelling

Processed products must be commercially packed and labelled with country of origin indicated.

Special certificates

Second-hand clothing, copra sacks, etc. require a fumigation certificate.

Documentary requirements

Fax signatures are not permitted. As cargo reaches Vanuatu only three days after leaving Sydney it is essential that documents for clearing the goods through customs be dispatched in time to effect prompt clearance. The Trade Commissioner suggests that delays in clearance can be minimised by:

• Posting a copy of the invoice 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 ofthe bill of lading.
• Cable or telex advice of shipment with name of ship, goods dispatched and FOB or FOW value (Incoterms 1990).

Commercial invoice

No prescribed form. An original invoice plus one copy is required. The invoice must include:

• a description of the goods
• quantities and dimensions
• net and gross weights
• the country of origin
• the CIF value (Incoterms 1990) or, if not available, the value ex-warehouse
• a signature of a responsible member of the exporting firm

Bill of lading

No special requirements. 'To Order' bills acceptable.

Public health requirements

Animal products require import permits from the Ministry of Agriculture, Quarantine, Forestry and Fisheries. Produce, such as fruit and vegetables, needs a phytosanitary certificate and accompanying statement. Exporters should seek the advice of Vanuatu's Quarantine and Inspection Service.

Insurance

Normal commercial practice.

Weights and measures

The metric system.

Taxation

There is a 12.5 per cent Value Added Tax (VAT) payable on all goods and services. The VAT, introduced in August 1998, replaced all previous taxes on goods and services. A turnover tax was abolished when the VAT was introduced.