Key Takeaways
- Importers into Vanuatu are subject to customs duties set out in the import duties legislation and applied through the HS tariff schedule and its duty bands.
- Duty is generally calculated on the CIF value of imported goods, with exemptions, concessions and preferential tariffs under regional trade agreements potentially reducing the amount payable.
- Clearing goods involves the ASYCUDA system, supporting documentation and defined timelines, alongside rules on prohibited, restricted and licensed items and other border charges.
- Foreign-owned businesses should plan for compliance obligations and monitor the outlook for customs policy when budgeting for imports into the country.
Customs & Import Duties in Vanuatu: An Introduction
Customs and import duties in Vanuatu are levied actively, and they form a meaningful part of government revenue. The absence of personal income tax, corporate tax, capital gains tax, and withholding tax does not extend to goods crossing the border, where import duty, excise, and Value Added Tax all apply. Anyone moving products into the country should treat customs as a real cost line, not a formality.
Three distinct charges sit within the HS2022 Customs Tariff: import duty, excise duty, and VAT. Vanuatu's applied simple average tariff stands at 9.0% overall, with agricultural goods averaging 16.9% and non-agricultural goods 7.8%, figures reported in the WTO review of the country's trade policy.
This article explains how duties are calculated, which goods qualify for relief, how preferential trade agreements apply, and what the clearance process demands of an importer. It is written for foreign owners, investors, and their advisers assessing the real cost of bringing goods into the country or maintaining an import-dependent operation there.
Legal Basis: The Import Duties Act and Customs Legislation
Two statutes anchor the system. The Customs Act governs the movement of goods across the border and sets out the procedural rules, while the Import Duties (Tariff) Act identifies which goods are taxable and at what rate.
The modern framework dates to a rewrite begun in 2012, built on a model endorsed by Forum Island Ministers. That work became Customs Act No. 7 of 2013, replacing the earlier 1999 statute and aligning procedures with international practice; the power to prohibit or restrict imports by ministerial order carried forward into the new law.
Tariff rates themselves were most recently revised by the Import Duties (Consolidation) (Amendment) Act No. 24 of 2023, gazetted on 29 December 2023. Concessions are governed by Schedule 3 of the Import Duties Act, and several subsidiary orders made in 2014 deal with general regulations, prohibited exports, and prohibited imports.
Two reforms matter to a foreign importer planning ahead. The country acceded to the Revised Kyoto Convention on simplified customs procedures in 2018, and the 2013 Act introduced Advanced Rulings, which are legally binding determinations on tariff classification, valuation, and origin that you can obtain before goods ship.
An Advanced Ruling fixes how Customs will treat a product's classification, value, or origin before it arrives, removing guesswork from your landed-cost calculation.
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How Customs Duty Rates Work: The HS Tariff Schedule and Duty Bands
The tariff classifies every imported product for duty, origin, and statistical purposes, and runs to more than 5,300 individual items. The rate applicable to a given good is found in the HS2022 Customs Tariff published by the revenue authority, and rates vary widely between product categories.
Most goods carry modest duty. Across non-agricultural lines, nearly 30% enter duty-free, and a further quarter sit in the 0–5% band; agricultural goods skew higher, with a substantial share falling between 25% and 50%.
| Duty band | Non-agricultural lines | Agricultural lines |
|---|---|---|
| Duty-free (0%) | 29.9% | 10.8% |
| 0–5% | 24.1% | 20.6% |
| 5–10% | 17.2% | 13.3% |
| 10–15% | 23.7% | 8.6% |
| 15–25% | 3.2% | 17.3% |
| 25–50% | 1.5% | 28.1% |
| 50–100% | 0.4% | 1.4% |
There is meaningful headroom between applied and ceiling rates. All tariff lines are bound at the WTO, with a final bound average of 40.1%, so applied rates sit well below the legal maximum the country could charge.
As a working guide, basic foodstuffs such as rice, flour, and sugar, along with essential medical and educational goods, are typically duty-free or taxed at 0–5%. Consumer goods including electronics, furniture, and clothing attract moderate duty, generally in the region of 10–20%. Excise goods such as spirits and tobacco are treated differently again, taxed on physical quantity or a mix of value and quantity rather than value alone. Confirm any rate against the live tariff before you commit to a shipment, since category estimates are no substitute for the classified line.
Customs Valuation: Determining the CIF Value of Imported Goods
Duty is charged on the CIF value: the cost of the goods, the insurance covering them, and the freight to bring them in. That total, converted into Vatu and multiplied by the applicable rate, gives the duty payable.
The primary method is transaction value, meaning the price actually paid or payable for the goods sold for export, with adjustments where required. It applies provided there are no abnormal restrictions on the sale, no undisclosed conditions affecting price, and no undisclosed proceeds flowing back to the seller.
Where transaction value cannot be used, Customs works down a fixed hierarchy: the value of identical goods, then similar goods, then a deductive value, then a computed value, and finally a residual method. Each is set out in Schedule 2 of the valuation legislation.
Currency conversion is built into the calculation. Values are declared in Vatu, and foreign amounts are converted using monthly exchange rates published on the Single Window Portal, so the rate that matters is the one in force on the date of declaration.
If your supplier invoices on FOB or other terms, you must obtain the freight and insurance figures from the shipping agent before declaring, because Customs taxes the full CIF value regardless of the contract terms.
One relief applies to small consignments: postal and airfreight parcels with an FOB value of VT 10,000 or less may enter free of duty when imported for the recipient's exclusive personal use.
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Exemptions, Concessions and Duty Reductions
A defined set of exemptions sits in Schedule 1, Part 3 of the Import Duties Act, identified by exemption code. These reward activity the government wants to encourage and cover specific categories rather than open-ended relief.
The main groups include:
- Raw materials, packaging, and equipment for manufacturing; building materials and fittings for tourism facilities; and machinery for mineral exploration and extraction
- Fuel for electricity generation; boats, marine motors, boat-building materials, and fisheries equipment
- Temporary importation
- Currency notes imported by the Reserve Bank, approved medals and decorations, life-saving devices, and fire-fighting equipment
- Building materials, furniture, and stationery for churches and schools
- Diplomatic and charitable goods, supplies for foreign-going vessels and aircraft, and goods for approved national projects
Relocation relief is available on personal and household effects. It applies to a person taking up residence for the first time, or to a returning resident who has been absent for at least 12 months within a two-year period.
Tourism investors face a tightened approval channel. Under the 2023 amendment, only the Director of Tourism may approve duty exemptions on goods used in tourism activities, building materials included, and applications run online through the VeSW Concession Module accessed via a licensed customs broker.
Manufacturers and processors can also seek concession reductions on raw materials, machinery, or equipment used exclusively in a local operation. In the fisheries sector, the Director of Customs may approve a reduction to a specified minimum rate where the Director of Fisheries recommends it.
Preferential Tariffs Under Regional Trade Agreements
Vanuatu extends at least MFN treatment to all trading partners and is party to several overlapping Pacific agreements. The most directly useful to an importer is the Melanesian Spearhead Group Trade Agreement, which governs trade among MSG members.
Under that agreement, goods originating in MSG countries enter duty-free. The earlier positive and negative lists both expired on 1 January 2013, after which the tariff schedule committed under the arrangement was fully liberalised, so any qualifying product can now claim preferential access.
Qualification turns on origin. Goods must meet the MSG Rules of Origin, based on a Change of Tariff Heading at the six-digit level, and travel with an MSG Certificate of Origin Form A issued by the exporting country.
The wider network adds further routes. PACER Plus was signed in 2017, with Vanuatu joining as the ninth signatory on 7 September 2017, and negotiations on an Economic Partnership Agreement with the European Union remain under discussion. Non-reciprocal preferences also benefit exporters: Australia and New Zealand grant duty-free, quota-free access under SPARTECA, and the EU does so under Everything but Arms. SPARTECA, however, concerns goods leaving the country and does not reduce import duty on goods arriving from Australia or New Zealand. Details of these arrangements are published by Vanuatu Customs.
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The Import Clearance Process: ASYCUDA, Documentation and Timelines
Clearance runs through the Electronic Single Window System, the national rebrand of ASYCUDA. The platform moved to the web-based ASYCUDA World in July 2017, giving Customs live data for real-time risk assessment, and UNCTAD was engaged in 2019 to adapt the system, which operates in more than 95 countries, to local needs.
Goods are cleared at four approved ports of entry: Port Vila, Lenakel on Tanna, Luganville on Santo, and Sola on Vanualava. Port Vila and Luganville process electronically; Lenakel and Sola handle declarations manually owing to limited network coverage.
Before importing, register with the revenue authority to obtain a Taxpayer Identification Number, and secure any required Biosecurity Import Permits from the Biosecurity Authority before the shipment arrives. A standard clearance requires five core documents.
- Single Administrative Document (SAD)
- Commercial Invoice
- Bill of Lading or Airway Bill
- Packing List
- Freight and Insurance papers
A declaration transaction fee of VT 1,000 applies per declaration. Processing speed depends on the risk lane assigned: the Green Lane assesses directly in 5 to 10 minutes, the Yellow Lane allows up to two days for documentary checks, and the Red Lane permits up to three days where physical examination is required.
Goods must be cleared from customs control within two months of arrival. After that, Customs may seize the consignment and forfeit it to the government.
Where a decision is disputed, the system provides for administrative penalties to settle minor matters quickly and a formal appeals tribunal for cases considered unreasonable or unfair. Procedural detail and the official timelines are set out by the revenue authority.
Prohibited, Restricted and Licensed Goods
Some goods may not be imported at all. Absolute prohibitions cover narcotics, obscene publications and materials, and certain firearms such as automatic weapons, and breaches carry severe penalties.
Importing or attempting to import prohibited or restricted goods on conviction draws a fine of up to VT 500,000 or imprisonment of up to six months, or both. Restricted goods, by contrast, may enter under a permit or licence; examples include frozen fish, prawns, meat, plants, and plant parts.
Controlled categories require specific authorisation. Endangered species of flora and fauna and products derived from them need an import permit from Vanuatu Quarantine and Inspection Services, while firearms, pharmaceuticals, and other controlled items require an import licence. Customs also enforces intellectual property at the border and may require an importer to prove that goods are genuine.
Note that restriction is not the same as relief. Duty and VAT apply to restricted goods whether they are imported for personal use or for sale.
Other Border Charges Within the Customs Scope
Duty is rarely the whole bill. Several charges stack on top of it at the point of entry, and the total payment combines duty, any excise, and VAT.
| Charge | Basis | Rate |
|---|---|---|
| Customs Service Tax | CIF value | 5% |
| Excise duty | Specific or compound (excise goods) | Varies by product |
| VAT | CIF + duty + excise + service tax | 15% |
| Declaration transaction fee | Per declaration | VT 1,000 |
VAT is the largest add-on for most goods, charged at 15% on the duty-paid value rather than on the bare CIF figure. The 5% Customs Service Tax applies to most goods entering for home consumption and functions as a processing charge. Excise applies mainly to spirits and tobacco, calculated on quantity or on a combination of value and quantity.
For completeness on the export side, wood in the rough or roughly squared attracts an export duty of 5% plus VT 3,000 per cubic metre. Separately, a licensed customs broker will charge a fee for filing your clearance documents, which sits outside the duty and VAT payable to Customs. Port handling charges are generally raised by the port authority rather than Customs, and are not part of the duty calculation.
Practical Compliance Tips for Importers and Investors
Sound preparation removes most of the friction from importing. The steps below reflect the requirements and tools already built into the system.
- Register with the revenue authority and obtain your TIN before any import activity begins.
- Apply for Biosecurity Import Permits for regulated goods ahead of the shipment's arrival.
- Convert foreign values to Vatu using the monthly exchange rate published on the Single Window Portal, verifying the rate in force on the declaration date.
- Request an Advanced Ruling on classification, valuation, or origin where the treatment of a product is uncertain.
- For MSG preference, confirm the goods meet the six-digit CTH origin rule and secure a Form A Certificate of Origin from the exporting country.
- Submit tourism duty-exemption applications through the VeSW Concession Module via a licensed broker.
Engage a licensed customs broker rather than attempting clearance unaided; brokers must hold a licence and pass qualifying examinations, and the Vanuatu Customs Brokers and Forwarders Association is the recognised professional body. Clear consignments within the two-month deadline to avoid seizure.
If a customs matter is in dispute, Customs may accept securities so you can take delivery while the question is resolved, which keeps operations running. Rules change over time, so check for updates from the revenue authority before each significant import.
Outlook for Customs & Import Duties in Vanuatu
Policy on tariff revisions has favoured stability. When the HS schedule is updated, rates are not automatically raised; instead the emphasis has fallen on tightening exemption criteria and improving the transparency of concessions.
Digital infrastructure continues to mature. ASYCUDA World's live data supports real-time performance measurement, sharper risk assessment, and stronger post-clearance audit, and the Single Window roadmap envisages integrating further agencies involved in cross-border movement.
International commitments point the same way. Accession to the Revised Kyoto Convention signals a settled commitment to standardised, predictable procedures, and the platform is intended to lift the country's standing on trade facilitation, an area that has weighed on its overall ranking.
One variable remains open. Negotiations on the EU Economic Partnership Agreement are ongoing, and ratification would widen the country's preferential network with Europe. Any change to tariff rates themselves would require primary legislation amending the Import Duties (Consolidation) Act, so material shifts will be visible in advance rather than sudden.
Conclusion
Customs duty liability in Vanuatu is ultimately a cost-of-goods problem, and the CIF valuation method means that freight and insurance charges are baked into every duty calculation before a rate is even applied. For a non-resident owner deciding how to structure import flows, the real question is whether available exemptions and preferential tariff arrangements are being claimed systematically, because unclaimed concessions are simply money left on the table at each shipment.
The practical priority is to map your specific product categories against the tariff schedule and then verify which regional trade agreement rates or concessions your goods genuinely qualify for before the first cargo moves.
How Expanship Can Help Your Business in Vanuatu
Expanship supports foreign-owned businesses with customs and import duty matters, from confirming tariff classification and CIF valuation to coordinating concession applications and broker engagement, and we extend that support across the full operating life of an entity in the jurisdiction. Our work covers formation, ongoing administration, and the tax and reporting obligations that accompany an import-dependent business.
- Company incorporation and structuring
- Registered agent and registered office services
- Tax registration, including TIN setup, and filing
- Ongoing compliance and statutory administration
- Accounting and bookkeeping
- Introductions to local banking partners
To discuss your import operation or a new entity, contact Expanship Vanuatu.
Frequently Asked Questions
Yes. The absence of personal income tax, corporate tax, capital gains tax, and withholding tax does not affect goods crossing the border, where import duty, excise, and VAT all apply. The applied simple average tariff is 9.0%, and customs revenue is a significant source of government income.
Duty is charged on the CIF value, meaning the cost of the goods plus insurance and freight, converted into Vatu using the monthly exchange rate in force on the declaration date and multiplied by the rate for that tariff line. VAT at 15% and a 5% Customs Service Tax are then added, with VAT applied to the duty-paid value.
Standard clearance requires the Single Administrative Document, a commercial invoice, the bill of lading or airway bill, a packing list, and freight and insurance papers, with a VT 1,000 declaration fee per entry. You must also hold a Taxpayer Identification Number and any Biosecurity Import Permit before the goods arrive.
Goods must be cleared from customs control within two months of the date of arrival. If they are not, Customs may seize the consignment and forfeit it to the government, so clearance should be arranged promptly.
Goods originating in Melanesian Spearhead Group countries enter duty-free, provided they meet the MSG Rules of Origin based on a Change of Tariff Heading at the six-digit level and arrive with an MSG Certificate of Origin Form A. Preference is tied to origin, not merely to the country of shipment.
Yes. Tourism investors can apply for duty exemptions on goods used in tourism activities, including building materials, with approval reserved to the Director of Tourism and applications made online through the VeSW Concession Module via a licensed broker. Manufacturers and processors can seek concession reductions on raw materials, machinery, and equipment used exclusively in a local operation.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
