The Tonga Customs Department reintroduced the charging of Customs Duties on personal belongings last week after a lapse of nearly two years.

The Chief Executive Officer for the Ministry of Finance, 'Aisake Eke said that there was nothing unusual about charging duty on personal belongings, "it had always been the practice until the introduction of Sales Tax (during the late 1960s) when Sales Tax was applied only to commercial goods, then personal belongings became tax free.

"When Sales Tax was abolished in 2005 and replaced by the Consumption Tax, personal belongings should have been taxed," he said.

Last week

The Acting Deputy Commissioner for Revenue, Kelemete Vahe said on Monday September 17 that he directed the full reinforcement of Customs Duty on all personal items last week.

The calculation of Custom Duties on gifts and personal belongings could be a bit tricky because gifts and personal belonging are usually sent without disclosing the full value of the goods.

WTO

'Aisake said that under World Trade Organisation (WTO) regulations they are given the authority to calculate the real value of the goods if he is in doubt.

"Obviously if someone sends a car as a gift, valued at $50, there is something wrong and the Customs Officer has the authority to set the value of the car.

"The best solution is for people to provide genuine invoices or to enclose the real value of the goods," he advised.

Earlier this year Tonga became a member of the WTO and one of its obligations at this early stage of its membership is to reduce all duties on all imports to not more than 20%.

Custom duties are Tonga's main source of revenue and 'Aisake believes it is justifiable for government to put duty on gifts and personal belonging.

Rates

Tonga's Customs department is advising the public that their 20 kg of personal baggage will not be charged import duty and consumption tax, provided the value is not over $600.

However, other personal effects arriving in unaccompanied baggage and cargo will be charged at the appropriate rate of duty for the items plus Consumption Tax. The duty and CT combined will amount to around 30% or more on the declared value including the value of the freight. For example, import duties are currently 15% for meat and foodstuffs and electrical appliances, and 20% for clothing. In addition, government will also collect 15% Consumption Tax, an $8 quarantine fee, and .70 seniti per package on imported personal belongings. All goods require a receipt of purchase or an invoice or accurate valuation.

No fruit or vegetables may be brought in without certification. Meat may be brought in accompanied baggage. However, proper documentation is required for meat sent as cargo or unaccompanied baggage.