Lockington's Everyday Fiji ... Life Goes On

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Allen Lockington is a self-employed customs agent and business consultant who has regular articles published in Fiji. I thank Allen for permission to reprint some of them in this political blog. They remind us that life goes on, whatever the political situation. And it's good to know that. [Nice new photo, Allen!]

Fair Trading

Tariff classification to determine the correct import duty rate on goods is very important to an importer. Tariff items that have import fiscal duty rates of 5% and 32% incorporated into its structure have been source of some uncertainty for Customs officials and traders alike. A high duty rate usually denotes protectionism, meaning it is protecting a local industry. Example - milk, cream, shoes, tobacco products, alcohol, shoes, ice cream, wet cell batteries, etc. Saris have been a bone of contention for those who import clothing. However, it has been the trend for Customs officers to choose the higher rate if unsure of the classification of an item and that, as Customs Officers will say, safeguards government revenue. Hence the saying, “if in doubt, use the higher rate.” Every citizen in Fiji must ensure the safeguard of our revenue, for obvious reasons. Traders usually give in because time is of the essence and if the higher duty rate is charge they simply pass it on to the consumer. It’s easy as that. However there are avenues to challenge the opinion but it’s a lengthy process and can cost money. Not many ever pursue it. So many traders accept the Customs officer’s opinion and pass on the extra cost to the consumer.



This is not good for the economy because the customers have to bear the brunt of the high cost of goods for the reason that someone wasn’t sure of a duty rate. It is a well-known fact that no one in Fiji is an expert in tariff classification and that‘s why when a trader enquires about the tariff classification, Customs can only give an opinion.  And it’s not free, paying for an opinion can be seen as a bit unfair. However if a trader insists on a ruling, then a request or submission is sent to Brussels and this can take some time. An importer cannot wait for rulings so he accepts the opinion and does what he does best – pass the extra cost on.   It’s OK to use the higher rate, if at the time of importation the goods warrant the high rate; no doubt it safeguards government revenue and protects local industry.

At the moment the Commerce Commission is putting its foot down to lower the cost of basic food items, it has targeted the hardware industry, it froze rent increase and is looking at checking on medicines, and will take things from there. We certainly hope it will look at all aspects of the business industry. It is putting its rubber stamp on Fair Trading. So in the case of imports and the Customs division of FIRCA, the Authority must do its part in ensuring that correct duty rates are paid at the time of importation.

Having said that, fair trading must begin at the borders.

Here I wish to thank the Commerce Commission for taking time to listen to traders who have been affected by the price reduction on basic food items. When the time comes I hope it will do the same for consumers.

As a matter of interest, I was part of the Customs organisation for 28 years.