Tonga - 1.3 Customs Information

Duties and Tax Exemption 

For contact information regarding government custom authorities, please follow this link:  4.1 Government Contact List 

Emergency Response: 

Customs regulations (Regulation 136, Customs and Excise Management Regulations 2008) stipulates.  

Relief consignments  

(1) “Relief consignment” means-  

(a) goods, including vehicles and other means of transport, foodstuffs, medicaments, clothing, blankets, tents, prefabricated houses, water purifying and water storage items, or other goods of prime necessity, forwarded or received as aid to those affected by a disaster; and 

 (b) equipment, vehicles and other means of transport, specially trained animals, provisions, supplies, personal effects, and other goods needed by disaster relief personnel to perform their duties and to support them Customs and Excise Management Regulations CAP. 11.03.01 to 2020 Revised Edition Page 39 in living and working in the territory of the disaster throughout the duration of their mission. 

(2) The Minister may allow simplified and facilitated Customs procedures and declarations in the case of relief consignments. 

(3) Relief consignments received as gifts by an organisation approved by the Minister for use by or under the control of that organisation or for distribution free of charge by the organisation or under their control shall be admitted into the Kingdom free of all Customs duties, excise taxes, and charges. 

In the following table, state which of the following agreements and conventions apply to the country and if there are any other existing ones 

Agreements / Conventions Description 

Ratified by Country? 

(Yes / No)  

WCO (World Customs Organization) member 

Yes  

01/07/2005 

Annex J-5 Revised Kyoto Convention 

No  

OCHA Model Agreement 

No  

Tampere Convention (on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations) 

Yes: 2003 

 

Regional Agreements (on emergency/disaster response, but also customs unions, regional integration) 

Yes: 2016 

Pacific Resilience Program 

Exemption Regular Regime (Non-Emergency Response):  

[Note: This section should contain information on the usual duties & taxes exemption regime during non-emergency times, when there is no declared state of emergency and no streamlines process (e.g. regular importations/development/etc.).] 

Once an official request for international assistance has been submitted, the Director of Customs and Quarantine are to make the necessary arrangements for the on-going clearance of all donor assistance that is provided for “disaster relief purposes”. 

This may include duty exemption for goods that are purchased locally with disaster relief funding. 

The Central Control Group (CCG) is responsible for providing information on donor assistance to Customs and Quarantine to facilitate this process. This includes details on type, quantity, source, means of transportation, arrival point and estimated time of arrival. As for normal customs and quarantine situations, disaster relief operations should not in themselves cause a breakdown in established security and/or immigration regulations. 

 

Organizational Requirements to obtain Duty Free Status 

United Nations Agencies 

 All Charitable organisations must register with the Ministry of Commerce, Labour and Industries as a charitable entity. Registration is voluntary, but if an entity wishes to retain or obtain an exemption from income tax then it will need to register. 

Non-Governmental Organizations 

 All Charitable organisations must register with the Ministry of Commerce, Labour and Industries as a charitable entity. Registration is voluntary, but if an entity wishes to retain or obtain an exemption from income tax then it will need to register. 

Exemption Certificate Application Procedure:  

Duties and Taxes Exemption Application Procedure 

Generalities (include a list of necessary documentation) 

 Filing income tax returns: 

If the agency is assessed as being fully exempt from income tax, no need to file an income tax return unless required. However, the agencies need to keep accurate records for the organisation. 

 

Charity - Income Tax 

Charitable organisations can receive many types of income, including subscriptions, grants, subsidies, donations, fees, raffle money, trading profits, proceeds from selling assets and so on. 

 

Charitable organisations are liable for income tax if: 

  • they operate with no written rules, constitution or trust deed; 

  • they operate under a set of rules, a constitution or a trust deed that does not meet the requirements for an income tax exemption; and 

  • they use business income for charitable purposes outside Tonga. 

Process to be followed (step by step or flowchart) 

 Under Regulation 9 of the Consumption Tax Regulations 2005 (CT Regulations), the “Chief Commissioner may authorize the granting of a refund in respect of Consumption Tax paid or borne on a taxable supply to, or taxable import, by – 

A public international organization, foreign government, or any other person to the extent that organization, government, or person is entitled to exemption from Consumption Tax under an international agreement. 

or 

A non-profit organization in respect of a taxable supply to, or taxable import by the organization of goods or services acquired for the purposes of providing charitable activities.” 

An “international agreement” for purposes of Regulation 9 is an agreement between the Government of Tonga and a foreign government or public international organization for the provision of financial, technical, humanitarian, or administrative assistance to the Government of Tonga. The agreement can constitute an exchange of letters or any formal agreement in writing. 

A “non-profit organization” is defined in Regulation 9 to mean “an institution, body, or trust of a public character that the Chief Commissioner has certified as conducting activities exclusively for charitable purposes, which includes the relief of poverty, advancement of education or religion beneficial to the community”.  The words “charitable activities” are also defined in Regulation 9 to mean “activities consisting of the free distribution of food, meals, board, lodging, clothing, necessities or amenities to any persons in necessitous circumstances, but not including any activities relating to the conduct of a business”. 

The Chief Commissioner is given a discretionary power under Regulation 9 to authorize any relief “on such conditions and subject to such restrictions as he may consider appropriate”. 

Any claim for a refund of Consumption Tax under Regulation 9 must be made in a form that has been prescribed (see attachment) and should be accompanied by proof of payment of Consumption Tax, for example a receipt issued by the Customs “one stop shop” or if the purchase is made locally, a proper invoice disclosing the amount of Consumption Tax paid. The application for refund can be made personally at the Revenue Services Department. 

It is important to note that it is first necessary to establish that there is an agreement between the Kingdom of Tonga and the public international organization, and foreign government providing for certain exemptions from local indirect taxes which would include the Consumption Tax. Having established that, it is necessary in each case to determine if the public international organization, foreign government or person is entitled to relief from Consumption Tax in respect of the particular import or supply. Most international agreements have limited exemptions and apply to a limited category of imports and supplies for a pre-determined purpose. 

In the case of non-profit organizations, it is first necessary for the particular non-profit organization seeking the refund to establish that it has been certified by the Chief Commissioner as a non-profit organization “conducting activities exclusively for charitable purposes”. Secondly, it would be necessary for the non-profit organization to establish that the relevant import or supply is to be used for charitable activities consisting of the free distribution of food, meals, board, lodging, clothing, necessities or amenities to any persons in necessitous circumstances. 

Exemption Certificate Document Requirements 

All document requirements in the below table apply to both UN agencies and NGOs. 

Duties and Taxes Exemption Certificate Document Requirements (by commodity) 

  

Food 

NFI (Shelter, WASH, Education) 

Medicines 

Vehicle & Spare Parts 

Staff & Office Supplies 

Telecoms Equipment 

Invoice 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

AWB/BL/Other Transport Documents 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Donation/Non-Commercial Certificates 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Packing Lists 

Packing list / container list, Yes, Original 

Packing list / container list, Yes, Original 

Packing list / container list, Yes, Original 

Packing list / container list, Yes, Original 

Packing list / container list, Yes, Original 

Packing list / container list, Yes, Original 

Other Documents 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

Additional Notes 

NGOs have different procedures from the UN. NGOs must be registered with the Social Welfare Council, Ministry of Finance with notification from the Ministry of Foreign Affairs. After the registration procedure is done with the above-mentioned entities, application for registration is made to the Department of Customs. All exemption requests are submitted to the Ministry of Foreign Affairs who certifies the documents. If the items requested for exemption are on the Ministry’s approved list, then the request is approved and processed. If the items are not on the Ministry’s approved list, the request must be submitted and approved by the Ministry of Finance. Documents required for this request are: 

  • Bill of Lading 

  • Insurance policy (only for commercial goods for risk of loss) 

  • Certificate of Origin 

  • Invoice 

  • Packing List 

  • Mode of Payment (grant, donation, non-commercial certificate) 

Customs Clearance 

General Information  

Customs Information 

Document Requirements  

Invoices, Air Waybills or other transport documents, Donation / Non-Commercial Certificate, Packing List 

Embargoes 

None specified 

Prohibited Items 

Narcotics 
• Pornography (please consider the term as used under the Islamic law)  
• Alcohol 
• Creams (cosmetics) not registered with the Ministry of Health 
• Counterfeit items 
• Potassium Bromides  

 

General Restrictions 

Tonga has regulated against the importation of GMO products. 

Customs Clearance Document Requirements 

Customs Clearance Document Requirements (by commodity) 

  

Food 

NFI (Shelter, WASH, Education) 

Medicines 

Vehicles & Spare Parts 

Staff & Office Supplies 

Telecoms Equipment 

D&T Exemption Certificate 

 Yes, Original, 1 copy,  

Yes, Original, 1 copy,  

Yes, Original, 1 copy,  

Yes, Original, 1 copy,  

Yes, Original, 1 copy,  

Yes, Original, 1 copy,  

Invoice 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

Yes, original 

AWB/BL/Other Transport Documents 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Bill of lading, Certificate of Origin, Cargo Manifest 

Donation/Non-Commercial Certificates 

Yes, Original 

Yes, Original 

Yes, Original 

Yes, Original 

Yes, Original 

Yes, Original 

Packing Lists 

Yes, Original Packing list / container list 

Yes, Original Packing list / container list 

Yes, Original Packing list / container list 

Yes, Original Packing list / container list 

Yes, Original Packing list / container list 

Yes, Original Packing list / container list 

Phytosanitary Certificate 

Required covering all produce in each shipment 

Required covering all produce in each shipment 

Required covering all produce in each shipment 

Required covering all produce in each shipment 

Required covering all produce in each shipment 

Required covering all produce in each shipment 

Other Documents 

 

 

 

 

 

 

Transit Regime 

Goods intended for transit or transhipment in Tonga must be given prior approval from Customs. An application for transit or trans-shipment must be made to Customs on the approved form (Form C10 - Customs Trans-shipment). 

Customs transit 

This refers to the Customs procedure under which goods are transported under Customs control from one Customs office in Tonga to another. 

Customs Trans-shipment 

This refers to the Customs procedure under which goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of one Customs office which is the office for imports and exports. 

Conditions of Transit and Transhipment 

Customs may take all necessary steps to ensure that the consignment is easily identified and to enable detection of any unauthorized interference. Such steps may include the setting of specific time limits for the transit or trans-shipment operation to take place. 

(Source: https://www.revenue.gov.to/Transit-and-Transshipment )