STANDARD INTERPRETATION GUIDELINE

Transcription

1 STANDARD INTERPRETATION GUIDELINE CUSTOMS CONCESSION CODE 246 COMPANIES OR ENTITIES INVOLVED IN THE FISHING INDUSTRY This Standard Interpretation Guideline ( SIG ) sets out Fiji Revenue and Customs Service s ( FRCS ) policy and operational practice in relation to the Customs Concessions granted to Companies or Entities involved in the Fishing Industry under Code 246. It is issued with the authority of the Chief Executive Officer ( CEO ) of FRCS. All legislative references in this SIG are to the Customs Tariff Act ( CTA ) 1986 (unless otherwise stated). This SIG is in effect from 14 th June, 2018 and may need to be reviewed in the event of any relevant legislative amendments. CONTENTS Executive Summary... 2 Introduction... 2 Governing Conditions... 3 Qualifying Criteria and Conditions... 3 Appendix... 4

2 EXECUTIVE SUMMARY 1. The fishing industry is highly critical to the Fijian Economy and contributes about 1.6% to the total GDP of the country. The Government through its fiscal policies has accorded certain benefits to assist the industry. 2. Customs Concession Code 246 under the Customs Tariff Act provides import duty concessions to the companies or entities involved in the fishing sector. 3. While the legislative provisions are set out in the Customs Tariff Act, the players in the industry need to be very clear in terms of the administration and the application of the law. 4. This SIG therefore, sets out the CEO s official position on the application of Customs Concession, Code The SIG relates to the list of goods, persons and bodies that can qualify for duty concession under Code 246 to Part III of the Customs Tariff. INTRODUCTION 6. The purpose of this SIG is to provide clarity and certainty to the application of the provisions under Code 246. The pre-requisites to qualify, test rules and the entitlements under the code are discussed. 7. This SIG also serves as a checklist to the applicants to self-assess their eligibility. 8. Furthermore, it will ensure that there is a uniformed approach to the processing of applications under this provision. LEGISLATIVE PROVISION Code Owner Goods Eligible Fiscal Import Excise VAT Conditions Authority (1) (2) (3) (4) (5) (6) (7) (8) 246 Companies and Entities involved in fishing Industry. (i) Gas-oil (diesel) having sulphur content not exceeding 500 ppm (HS ). (ii) Specialised fishing gear and equipment (list attached). (iii) Special fishing vessel. (iv) Fishing bait. Free Free 9% (a) That the goods are directly used for the fishing Industry. (b) That the goods are not for sale and are to be used exclusively for which the concession is granted. (c) That the disposal or used of goods used for purposes other than that for use the concession is granted be subject to the conditions laid down in Section 17 of the Customs Tariff Act. The person approved by the CEO. Page 2 of 5

3 GOVERNING CONDITIONS 9. The concession is to be claimed on the imported goods and goods cleared from ex-bond warehouses by the person or body specified in column (2). 10. The goods are of a kind relating to a name or description specified in column (3). 11. When any conditions affecting the goods is not fulfilled after the goods leave Customs Control, the CEO may disallow the concession and collect the duty applicable under Part 1. Further action may also be taken such as penalties and/or compounding. QUALIFYING CRITERIA AND CONDITIONS 12. The fishing companies must be registered and licensed with the Ministry of Fisheries. 13. The appropriate fishing licence must be obtained and sighted if the applicant is new and proper records must be obtained thereafter. 14. The vessel classification and registration must be obtained from Maritime Safety Authority of Fiji. 15. The list of all fishing vessels for the company must be obtained to confirm if the vessels are Fiji flagged and registered in Fiji. 16. A prescribed application form requesting for duty concession on Industrial/Automotive distillate oil should be lodged and approved by the Tariff & Trade Section. 17. The application form must include details such as the name of the company, mailing address, telephone number, address, fax number, nature of business, products purchased, supplier information, estimated volume consumed per month, estimated value consumed per year, intended use along with a payment of $25.00 and any other relevant information. 18. In instances whereby the company exhausts the approved initial fuel allocation; a letter of request shall be submitted for additional fuel allocation assessment. 19. Approval shall be granted once the officer is satisfied with reasonable grounds for allowing fuel allocation. 20. If the goods cleared under this incentive are used for the purpose other than for which duty concession was granted, the individuals or institutions shall be investigated and prosecuted accordingly. 21. For any other clarifications you may contact the Tariff and Trade team on FICS- SuvaTariff&Trade@frcs.org.fj. 22. Appendix A provides a list of specialized equipment, gear and safety items used in a long line fishing operation. Page 3 of 5

4 APPENDIX List of specialized equipment, gear and safety items used in a long line fishing operation. Line hauler Line shooter Radio beacon Floaters Monofilament lines Nylon Mono Line Polyester Mainline & Branch line Wire Leaders Stainless wire /color coated wire Snap all sizes Swivel all sizes & types,( Leaden barrel swivel, 8 type etc) Crane and rolling swivel Snap & Swivel all sizes Aluminum clips Brass clips Plastic buoys & Strobe light Radio Buoys Sel Call buoy Wire stretcher Snap stretcher Side roller for line Steam stretcher Imitation bait Tubes Vinyl / Urethane / Luminous Spool / reel spares Hook bins Sleeves sizes Hooks hook types and sizes Course Luminous / Aluminum / Stainless steel Mono cutter Rubber hammer Bleeding knife Gaff gaff heads Page 4 of 5

5 Armour spring Spike brain killer Harpoon stick / head Line hauler rubber Line thrower rubber Line ace rubber Line hauler spring rubber Line setter rubber Line setter rubber band Line setter rubber wheel Stainless pawl Push rubber Gel ice dry ice Fish tracing tags & devises Temperature data loggers Page 5 of 5