Consumer products
- Document symbol
- G/LIC/N/3/TON/2
- Original language
- English
- Published on
- 21/09/2022
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The Business Licensing system aims to facilitate business development by levelling the "playing field" for investment through legislative enforcements of all trading businesses in the country. It also operates as a final stamp to ensure business compliance with ancillary legislations so as to safeguard the health and safety of consumers and the general public.
Importation is considered under Schedule 2 of the Business Licence Regulations 2007 as a business activity and therefore requires all businesses which undertake importation activities to hold a valid import business licence.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Import Business Licensing covers all product types except products which breach the Consumer Protection Act 2000 and Consumer Protection Regulations 2006. A single Import Business Licence can be utilized to permit the importation of all product types relevant to the business activities registered under the venture in the Business Licence Registry given that they meet the conditions prescribed in the Business Licence Regulations 2007 Schedule 3A.
Agricultural products, fish products, liquor, therapeutic goods, flammable goods, transportation, recycling, telecommunication, construction, information technology.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to all goods regardless of their originating country.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The Import Business Licensing is not in any means intended to restrict the quantity or value of imports but rather to enforce compliance of all importing businesses to relevant ancillary legislations including the Consumer Protection Act 2000 so as to protect the health and safety of the general public.
Prior efforts to streamline the general licensing system have recommended the strengthening of line ancillary legislative enforcements as an alternative to import business licensing. However, given the role of business licensing in facilitating business development, by creating a levelled playing field for investment, and safeguarding the health and safety of the general public, the recommended repeal of the business licensing system, including import licensing, was denied by Government in consideration of the consequent threat to the general public and to investment. The recommendation was to be reconsidered at a later stage when existing loopholes in the current licensing legislative system and limitations in the enforcement capacity of line legislation are resolved. The recommendation was to be reconsidered at a later stage.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Is the licensing statutorily required?
Import Business Licensing is stipulated under the Business Licence Regulations 2007 Schedule 2 and subjected to conditions provided in Schedule 3A.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The Business Licence Act requires the licensing of all business activities listed in Schedule 2 of the Business Licence Regulations, including importations, but does not subject any imported product to administrative discretion.
Is it possible for the government to abolish the system without legislative approval?
Abolishment of the import licensing system by deletion of importation from the list of business activities in Schedule 2 is subject to the approval of Cabinet and does not require legislative approval. Business activities provided in Schedule 2, including importation.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
How far in advance of importation must application for a licence be made?
The Import Business Licence, such as any other Business Licence, is an annual licence and is renewed every year prior to the expiry date of 31st December of the year next following the renewal date.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Businesses which inadvertently import goods without an import licence can promptly obtain an import licence upon lodging the required application with the Business Licensing Unit of the Ministry.
Q7.b. Can a licence be granted immediately on request?
Upon application, import business licences can be issued within the timeframe of seven working days given that all application requirements are completed.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Applications for import business licences can be lodged during any working day. Renewal applications however are to be lodged at least 30 days prior to the expiry of the licence.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Which administrative body is responsible for approving application of licences?
The import business licence is not subject to any sector specific requirements and is therefore effected by the approval of the Business Licensing Officer.
Must the applications be passed on to other organs for visa, note or approval?
The importer must hold auxiliary business licences for the distribution or processing of the imported products. These auxiliary business licences would be subject to sector specific requirements as stipulated under the Business Licence Regulations Amendment 2010.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
As provided under the Business Licence Act 2002 Section 8, applications for import licence may be refused if the application contravenes Section 5 of the Act hence involve a prohibited activity, the applicant is under 18 years of age or involve a partnership where one of the partners is under 18 years of age, or the applicant is a foreign investor who does not hold a valid foreign investment registered certificate.
Are the reasons for any refusal given to applicants?
Upon application, the applicant will be advised to consider the above stated grounds for refusal and will be required to provide the requirements necessary for the approval of their business licence applications, as provided under the Business Licence Regulations Amendment 2010.
Have applicants a right of appeal in the event of refusal to issue a licence?
A right of appeal against refusal of an application is not provided in the Legislations as all complete applications are appraised and approved.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
All persons, firms and institutions are eligible to apply for licences.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Refer to Form 1 and Form 3 provided under the Business Licence Regulations 2007.
Q11. What documents are required upon actual importation?
Documents required upon actual importation are subject to the Customs Department.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes.
What is the amount of the fee or charge?
Fee for new applications is TOP$ 120 and for renewal applications is TOP$ 100.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issue of licences.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
As provided under the Business Licence Act 2002 Section 10, a business licence is valid for the period ending on 31st December next following the issue date and can be renewed upon payment of renewal application fee and submission of renewal application form prior to the expiry date of the business licence.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a licence or a portion of a licence.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
As provided under Section 13 of the Business Licence Act 2002, business licences are non-transferable.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
All Import Business Licences are subject to the below listed conditions as provided under Schedule 3 of the Business Licence Regulations 2007, namely:
- No goods imported under this licence shall:
i. Be counterfeit in nature;
ii. Contain labelling that is false, misleading or deceptive as to the nature or character of such goods;
iii. Be described or presented on any label by words, pictorial or other devices which refer to or are suggestive of any other goods which such goods may be confused with.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Foreign exchange is subject to banking authorities and the compliance of the importer with their policies.