REGIONAL AID FOR TRADE SEMINAR

BRISBANE | OCTOBER 2016

PRESENTER: BEN SOMERVILLE

2

DHL Express – Fiji & Pacific Islands overview

19761st DHL

shipment sent

180Certified International

Specialists

275,306International Shipments Annually

220Countries &

Territories

served

3Hubs

11Regional Airports

4Service Points

12Facilities

41Vehicles

41 Vehicles

Regional Aid For Trade Seminar | Brisbane | October 2016

TOP TRADE LANE – EXPORT

YTD September – TOP 10

Export Trade Lane s

1. AUSTRALIA

2. NEW ZEALAND

3. UNITED STATES OF

AMERICA

4. CHINA, PEOPLES

REPUBLIC

5. UNITED KINGDOM

6. PAPUA NEW GUNEA

7. VANUATU

8. SAMOA

9. SINGAPORE

10.SOLOMON ISLANDS

Connecting Pacific Islands to the World

YTD September – TOP 10

Import Trade Lane s

1. AUSTRALIA

2. NEW ZEALAND

3. CHINA, PEOPLES

REPUBLIC

4. INDIA

5. HONG KONG

6. UNITED STATES

7. JAPAN

8. SINGAPORE

9. UNITED KINGDON

10.TAIWAN

5

WHY CHOOSE DHL?

Vanuatu - 27 years

Samoa – 26 years

Tonga- 34 years

Tuvalu – 24 years

Kiribati – 29 years

Niue – 23 years

Fiji – 40 years

Cooks – 29 years

Nauru -23 years

Solomon – 38 years

No one knows

the Pacific

Islands like we

do …

Regional Aid For Trade Seminar | Brisbane | October 2016

Manufacturer of garments

Mark One Apparel

Products/Services:

Manufacturing of Shirts, Blouses, Sports

Wear, Work Wear, School Wear, Dresses,

Shorts, Jackets.

Years in business: 27

Export Markets: Australia, New Zealand

DHL been facilitating their trade for 26

years

BODY PRODUCTS

Pure Fiji

Products/Services: Manufacture natural

body care using exotic nuts oil, sugar cane,

pineapple, papaya, passionfruit and green

coconut

Export Markets: Australia, New Zealand,

Pacific Islands, UK, US, PH, China, ROW

DHL has been facilitating their trade for

16 years

GARMENT

United Apparel (Fiji) Ltd

Products/Services:

Manufacturing of Shirts, Blouses, Jackets

Years in business: 27

Export Markets: Australia, New Zealand, Pacific

Islands, UK

DHL has been facilitating their trade for 18 years

GARMENT

Ranjit Garments (Fiji) Ltd

Products/Services:

Manufacturing of woven uniform from corporate, industrial, hospitality

Years in business: 25

Export Markets: Australia, New Zealand, Pacific Islands, UK

DHL has been facilitating their trade for 19 years

HANDICRAFT

Jacks of Fiji

Products/Services: Import handicraft from

Bali and export it worldwide. Tourist target

market

Export Markets: Worldwide

DHL has been facilitating their trade for

18 years

NICKEL

Koniambo Nickel SAS (New Caledonia)

Product / Services: Mines a high quality nickel deposit

and uses highly innovative technology for production

Export / Import Markets: Europe / Asia / US / AU/ NZ

DHL has been facilitating their trade for over 10 years

Without nickel, the world would not shine so brightly!

AVIATION

AIR CALEDONIE (New Caledonia)

Product / Services: Aircraft servicing the people of New

Caledonia. They import / export Aircraft parts

Export / Import Markets: Europe / Asia / US / AU/ NZ

DHL has been facilitating their urgent AOG parts for

the past 16 years

AUTOMOTIVE

CARPTRAC

Product / Services: largest caterpillar dealer with parts,

sales & services. Largest generator and heavy equipment

dealer supplier in Fiji & PI.

Export/ Import Markets: Europe / Asia / US / AU/ NZ

DHL has been facilitating their trade for the past 18

years

TELECOMMUNICATIONS

DIGICEL

Product / Services: provides mobile services. It offers

messaging, voice, mobile-money, coverage and roaming,

and prepaid and post-paid plans. Also sells phones.

Export/ Import Markets: AU/ NZ/ China/ India/ UK / Japan/

PI, Malaysia

Years in Business: 2008

DHL has been facilitating their trade in Fiji & PI for the

past 8 years.

15

IMPORT CHALLENGES

Regional Aid For Trade Seminar | Brisbane | October 2016

Personal Effects Shipments

• No letter with Tax Identification Number (TIN) available to support clearance

• Evidence of payment is not provided on time

Commercial Shipments

• Shipment arrives with incorrect value

• Hand written invoice

• Pro-forma invoice

• Customs Tariff (knowledge)

• Transit time

NGO and Embassy challenges

• All NGO and Embassy shipments have a concession and require provision of a FA608 Form from the

Ministry of Foreign Affairs. Delays are often experienced if this is not supplied.

16Regional Aid For Trade Seminar | Brisbane | October 2016

CHALLENGES WITH FRCA

PRE-CLEARANCE ON LOW VALUE SHIPMENTS: Below FJD400.00

• All undervalued shipments must go through customs examination

• This include samples, commercial and personal shipments valued below FJD400.00

• This rule was changed overnight and is now impacting import clearances on arrival

• Monday 26th September – 200 shipments were on hold in Bond awaiting customs examinations

• Cleared On Arrival % has declined to 45%

• SME customers who import samples can’t access their goods which results in adverse impacts

to their businesses

• Focus on pre-cursors used to manufacture illicit drugs

• Fiji Customs has imposed a range of new fees and charges which came into effect on 01 August

2016.

t

17

t

18Regional Aid For Trade Seminar | Brisbane | October 2016

OTHER IMPORT CHALLENGES IN THE REGION

• Outdated clearance platforms – 32 bit v 64 bit operating systems. Stifles development

• Lack of understanding between Express product v General Airfreight

• Logistical challenges around “final mile delivery”

• Lack of freight capacity on airlines (Tuvalu / Kiribati)

• Language challenges (New Caledonia / Tahiti)

• Screening / Risk assessment – lack of experienced officers

• Manual processes

• Lack of MHE

• Limited specialized transport options, e.g. temperature controlled cargo

• B2C / eCommerce challenges

• Lack of basic Import / Export knowledge

• Variety of commodities

• De minimus (Duty & Tax free threshold)

• Changing business models

19Regional Aid For Trade Seminar | Brisbane | October 2016

Regional Representation – Oceania Customs Organisation

• Foster harmonization, inter-cooperation and assistance

amongst its members on Customs matters

• Promote efficiency and effectiveness in all aspects of

Regional Customs Administrations.

20Regional Aid For Trade Seminar | Brisbane | October 2016

Regional Representation – Disaster Response Team

21Regional Aid For Trade Seminar | Brisbane | October 2016

Regional Representation – Disaster Response Team

22Regional Aid For Trade Seminar | Brisbane | October 2016

Regional Representation – Disaster Response Team

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EXPORT CHALLENGE

Presentation title | Location | xx Month 20xx

• New customs regulation whereby all Export shipments must be registered and have a entry.

• Previously export are registered Asycuda and also our DHL manifest

• With the new process a new added cost been imposed to DHL wherby we have to recruit extra

manpower to do data entry.

SUMMARY OF TRADE

Over the past three decades, export growth in Fiji has been largely influenced by the nature of Fiji’s

preferential trade arrangements, exchange rate arrangements and the country’s openness. In 1993, Fiji

became a signatory of the General Agreement to Tariff and Trade (GATT) and after ratifying the World Trade

Organisation (WTO) arrangements in 1996, it became a member of the WTO. Fiji has also pursued bi-lateral

and multilateral trade agreements, namely, the South Pacific Regional Trade Agreement (SPARTECA) with

Australia and New Zealand in the late 1980s, the Melanesian Spearhead Group with Papua New Guinea,

Vanuatu and Solomon Islands in 1998, Pacific Closer Economic Relations (PACER) in 2002 and Pacific

Island Countries Trade Agreement (PICTA) in 2003

CHALLENGE

• Correct certificate to accompany export not available or

provided

Questions?