Freight support package for Pacific SMEs

The Pacific Trade Invest (PTI) has launched its 2023 Freight Support Package for Pacific exporters.

Recognising global inflation and rising supply chain costs, the scheme helps strengthen business resilience and support businesses affected by high freight costs.

Applications for this valuable and practical freight subsidy package are now open between 1 March 2023, and close 30 April 2023.

Applicants will receive notice of the decision by the end of May 2023.

To be eligible for the grant, applicants must:

• Have a registered business export licence and operate in one of the Pacific Islands Forum Member Countries and be exporting during 2023 or have forward export orders for 2023.
• Must be exporting to NZ or PIFS nation or territory.
• Provide documentary evidence of freight costs over the past 12 months (e.g., bill of lading, air waybills, freight company invoices and/or statements).
• Provide proof of freight payments made.
• Agree to submit an impact statement and sales attributed to grant.

Glynis Miller, Pacific Trade Invest New Zealand Trade Commissioner says, “The Freight Support Programme is an important element adding practical value to our core function – that of supporting exporters from the Blue Pacific, and inbound investment too”

PTI NZ will also consider freight costs for the import of raw materials, as being eligible for the Freight Subsidy Package, as long as the other eligibility criteria are met.

The Freight Support Package complements the priority area in the Pacific Regional E-Commerce Strategy and Roadmap: to “Develop regional freight assistance packages (cost-share basis) to lower the costs of cross-border E-commerce.

“The Pacific Islands Export Survey 2020 conducted by Pacific Trade Invest (PTI) reveals that freight costs are one of the top three barriers to export faced by Pacific businesses, and this situation was exasperated by the disruptions to shipping credited by COVID-19. A freight assistance package such as the one developed by PTI can support Pacific exporters by reducing the cost of accessing international markets in a post COVID-19 recovery phase. Tailoring the support towards E-commerce businesses would in turn foster innovation and stimulate long-term competitiveness in the Pacific region.”