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Vanuatu profile

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Current business situation



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Visiting this country

Security & health, Visas, Travel tips & facts

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Country overview

Country facts, Economic climate, Political climate, Trade relations & statistics

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Useful websites and resources 

Government, business & trade, News & media, Travel & tourism

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Doing business

Business opportunities, Business etiquette, Tariffs & regulations, Documentation, Taxation, Business travel                

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Contact details

Austrade offices, Australian Embassy


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Current business situation

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Vanuatu. This is regularly updated, and should be checked before planning travel.

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Country overview

Country facts

Capital city: Vila
Surface area: 12,200 sq km
Population: 223,000
Official language(s): Bislama, English, French
Head of State: H.E. President Kalkot Mataskelekele
Head of Government: Prime Minister The Hon Ham Lini
Australian exports to Vanuatu: A$68 million
Australian imports from Vanuatu: A$2 million
Vanuatu's principal export destinations: Thailand, India, Japan
Vanuatu's principal import sources: Australia, Japan, Singapore
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Key economic indicators and statistics for 2006:

GDP - US$387 million
GDP per capita - US$1,737
Real GDP growth - 5.5 per cent
Inflation - 1.6 per cent


 


Government revenues are raised mainly from the customs import duties and the Value Added Tax (VAT).


The country has a dual economy, based on:

  • agriculture - small subsistence holder, established plantations, ranches and large farms with mixed cash crops)
  • offshore financial services - Vanuatu is a tax haven, free of corporate tax, income tax, estate duties and non-capital gains

Overall, the government employs up to 30 per cent of active population, and the second major employer being tourism and the transport industries.

Political climate

The Head of State is the President of the Republic, elected for five years by an electoral college. Legislature is made up of one single chamber with 52 Members of Parliament, general elections are held every four years (the last eelctions were in march 1998). The legal system is based on English law, Supreme Court of Vanuatu.

Trade relations and statistics

Major Australian exports to Vanuatu (2006-07):

  • Liquefied propane & butane - A$4 million
  • Computer parts - A$2 million
  • Alcoholic beverages - A$2 million
  • Tobacco, manufactured - A$2 million

Major Australian imports from Vanuatu (2006-07):

  • Bovine meat - A$1 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Doing business

Business opportunities

The Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated 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

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 regulations

Import restrictions

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.

Tariff

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.

Packing, marking and labelling

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

Weights and measures

The metric system.

Insurance

Normal commercial practice.

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.

Documentation

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.

Special certificates

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

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.

Business travel

Port Vila is only 3.5 hours flight away north east of Sydney and 2.5 hours from Brisbane. Vanautu is well services by Qantas, Air New Zealand, Air Calin and Air Vanuatu.


There is no public transport but privately owned mini buses and numerous taxis which are not expensive.


VANAIR is the domestic airline. There are a limited number of charter aircraft plus inter-island trading vessels.

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Visiting this country

Security and health

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Vanuatu. This is regularly updated, and should be checked before planning travel.

Visas

Visas are not required to enter Vanuatu (for stays up to 30 days).

Travel tips and facts

For further travel information please visit Lonely Planet.

Time

Vanuatu is one hour ahead of Australian Eastern Standard Time.

To find out the current time in Vila, view the World Clock.

Dialling codes

Vanuatu's country code is 678.
For calls to Vanuatu from Australia dial: 0011 + 678 + area code + telephone number
For calls from Vanuatu to Australia dial: 00 + 61 + area code + telephone number

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Electricity

Vanuatu’s power supply is 240 volts, 50Hz. The 3-pin angled plugs are the most common.

Weather

For weather details in Vanuatu, please visit the World Meteorological Organization.

Currency

Oanda currency converter

The currency is the Vatu (VT).

Public holidays

January 1 - New Year's Day
May 1 - Labour Day
May 25 - Ascension Day
July 24 - Children’s Day
July 30 - Independence Day
August 15 - Assumption Day
December 25 - Christmas Day

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Useful websites and resources

Government, business and trade

The Government of Vanuatu - www.governmentofvanuatu.gov.vu
Vanuatu Department of Industry, Trade and Commerce - www.vanuatu.net.vu/industry.html
Vanuatu Investment Promotion Authority - www.investinvanuatu.com
Vanuatu Statistics Office - www.vanuatustatistics.gov.vu

News and media

Port Vila Press - www.news.vu/en
Vanuati Daily Post - http://vanuatudaily.com/news/currentweek.php

Travel and tourism

Vanuatu Online - www.vanuatu.net.vu
Vanuatu Tourism Office - www.vanuatutourism.com

Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.

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Contact details

Austrade offices

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Australian High Commission in Vanuatu
Hawkes Law House
Port Vila
Vanuatu
Tel: +678 22 777 (24-hour access to emergency consular services)
Fax: +678 23 948
Web: www.vanuatu.embassy.gov.au


Business hours:
7.30am-4.15pm, Monday to Friday


(Last updated: 28 Feb 2008)

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