Loading ...Commerce Division
A. GENERAL
The Commerce Division has been established with an ultimate objective to promote a fair, safe and informed market place that supports a competitive economy.
Its core functions include the controlling of prices of goods approved by Competent Authority; issuance of business licenses; and the protection of consumer’s rights. All services are provided in compliance with the following Acts:
1. Price and Wages Control Act 1947;
2. Weight and Measures Act 1978;
3. Consumer Protection Act 2000, and
4. Business License Act 2002.
B. EXISTING ACTS AND REGULATIONS/ SERVICES
1. Prices and Wages Control Act 1947 / Competent Authority
Under the Prices and Wages Control Act 1947, the Competent Authority may fix and determine the maximum prices at which goods may be sold to secure the availability of fair prices.
Prices of goods and services determined and approved by CA include the followings:
• Prices of petroleum products (motor spirit (PMS), diesoline (ADO), kerosene (DPK),
• Price of liquid petroleum gas (LPGas)
• Bus and taxi fares
Other prices of goods subject to Price Control include
1. Flour
2. Sugar
3. Butter, margarine
4. Milk products
5. Tea
6. Rice
7. Coffee, Milo, Cocoa
8. Edible oil of all types
9. Cheese & Dripping
10. Salt
11. Infant food for babies
12. White benzene per reputed 800ml bottles
13. All lubricant oil
14. Insecticides, weedicides, fungicides for agriculture use
15. Chemicals, fertilizer for agricultural use
Agricultural product that are grown locally and fish that are caught locally are not subjected to Price Control. Ex – bond goods and Export Board sales are also not under the authority of the Price Control
Testing the accuracy of scales and measurement equipments for trade are carried out in every six months.
2. The Consumer Protection Act 2000
The Consumer Protection Act 2000 was enacted for the purpose of protecting the rights and interests of consumers in the marketplace. Given the fast growth of commercial activities in Tonga, it is essential that consumers are aware of their rights and obligations provided under the Act.
Functions
The Act empowers Consumer Affairs with the following mandates:
• Advise the public of their rights under the Act
• Take the necessary actions to remedy infringements under the Act
• Receive and process consumer complaints under the Act
• Carry out the necessary investigation work in respect of complaints made under the Act
Procedures for Handling Consumer Complaints
Procedure Others
1 Complete Consumer Complaint Form (Form 1) All complaints shall be made to the Director of Consumer Affairs within 14 days from the date of sale.
2 Advise the respondent of the complaint made against them The respondent will be advised within 3 working days of the receipt of the complaint made by using the form prescribed in Form 2 of the Consumer Protection Regulation
3 Respondent to make a written submission to the DOC in respect of the complaint against him/her The respondent will get back with the written submission within 7 working days of receipt of the notice of the complaint
4 Carry out investigation The investigation will be carried out in 7 working days after the respondent is notified
5 Seek prior view of other relevant authority, if required Relevant authority is to be consulted if required
6 Report and recommendation submitted by the investigator Identify which party is at fault. Report findings and outcomes of the investigation to the Consumer Officer
7 Review report and recommendation by Consumer Officer Report to the Director of Consumer Affairs
8 Endorse/final decision by the Director of Consumer Affairs
9 Issuance of order to the trader Disseminate order to the party (trader) involved
10 File copy & PA
3. The Business Licenses Act 2002
The new Business Licenses Act 2002 and Business Licenses Regulation 2007 came into force in April 2007. Subject to the Act, every business person in the Kingdom carrying on a business activity is required to hold a valid business license.
Application for business license is submitted together with an application fee of $75.00 (Tongan pa’anga) plus 15% consumption tax. Renewal application fee is $65.00 (Tongan pa’anga) plus 15% consumption tax..
All applications are processed within 7 working days. The application fee is not refundable where the application is refused or withdrawn.
A business license shall be valid for the period ending on 31st December next following the date of its issue unless renewed.
Every application by a foreign investor shall be accompanied by a valid foreign investment registered certificate (refer to Industries Division).
Eligible commercial categories for business license include the followings:
1) Services Providers
2) Manufacturers/Processors
3) Trade Facilities Operator
4) Food Providers
5) Other Business Activities
The prescribed fees involved in licensing are shown in the following table:
Table 1: Prescribed Fees
| Item Activity Fee ($TOP) | Due Date |
| 1 Application for Business License $75.00 + 15 CT | Upon application |
| 2 Application for Renewal of Business License $65.00 + 15 CT | Upon application |
| 3 Amendment of Business License $30.00 | Upon application |
| 4 Inspection of Business License Register $10.00 | Prior to inspection |
| 5 Copying of Business License Register $10.00 | Upon application |
Note: The above prescribed fees were effective in April 2007.
Business Licenses are also granted in other branches in the outer islands of Vava’u, Ha’apai, ‘Eua, and the Niuas.
Contact persons:
1. Mr Paulo Kautoke
Chief Executive Officer
Ministry of Labour, Commerce and Industries
PO Box 110
Nuku’alofa
TONGA
Tel (676) 23 688
Fax (676) 23 887
E-mail: secretary@mlci.gov.to
Or
2. Mr Sione L.Vailanu
Deputy Secretary (Commerce)
Ministry of Labour, Commerce and Industries
PO Box 110
Nuku’alofa
TONGA
Tel (676) 23 688
Fax (676) 23 887
E-mail: sionev@mlci.gov.to
