IMPLEMENTATION OF CUSTOMS COUNTER CLEARANCE CONCEPT OF IMPORT VALUE THRESHOLD OF MINIMUM K50-K5000 MAXIMUM

TO AIR NIUGINI LIMITED/PNG AIR LIMITED/MSMEs (MICRO-SMALL-TO-MEDIUM ENTERPRISE)/SMEs (SMALL TO MEDIUM ENTERPRISE) AND INDIVIDUALS

The Government of Papua New Guinea (GoPNG) has passed amendments to Sections 19 & 21 of the Customs  (2021 Budget)(Amendment) Regulation 2020 to immediately effect Counter Clearance, an initiative of the Papua New Guinea Customs Service (PNGCS), to timely facilitate clearance of imports by MSMEs (Micro-small-to-medium enterprises), SMEs (Small to medium enterprises) and individuals starting 1st of January, 2021.

Imported goods with value of K50–K5,000 will be directly cleared by Customs over the counter without engagement of Customs Brokers.

This initiative is mainly aimed to support and grow the MSMs and SMEs as it will cut out delays and costs associated with clearance.  The rapid advancement in digital technology had driven exponential growth in e-commerce globally including PNG.

The growth of MSMEs and SMEs is a fundamental attribute to PNG’s economic growth and prosperity.

It is evident that many entrepreneurs (MSMEs, SMEs & individuals) are importing commercial quantity of goods sourced offshore from platforms like Alibaba, E-bay, Amazon, online auction sites, etc and air freighted to PNG in real time for commercial purposes.

In order to promote the growth of MSMEs and SMEs, the Customs Counter Clearance Concept is introduced to support speedy clearance of imported goods valued at K50– K5,000 directly without engagement or involvement of Customs Brokers/Agents.

A test trial on this concept will be conducted with Air Niugini Limited and PNG Air Ltd, within Port Moresby’s Jacksons International Airfreight for two months until further notice.

Airfreight goods will be targeted for this trial. The imported cargo that is airfreighted will be simply cleared over the counter without involving or engaging Customs Broker/Agent.

Customs will be at entry points to clear your cargo with a value for duty {VFD) inclusive of cost insurance and freight {CIF) minimum K50 and maximum K5,OOO with a simplified single administrative document (SAD) or Form 15 using its ICT platform ASYCUDA World.

In order for Customs to effectively implement and facilitate this policy change, MSMEs, SMEs and individuals are advised to comply with the following;

  1. All MSMEs, SMEs and Individuals (soletraders) must have a TIN from Internal Revenue Commission and registered with Customs ASYCUDA World;
  2. All MSMEs, SMEs and Individuals (sole traders) must be registered with Investment Promotion Authority;
  3. Present transaction documents, including invoices, airway bills, receipts, TT copy, email copies, etc., deemed as evidence of transaction.

PNGCS will use this information to facilitate real time counter clearance, depending on the import document provided and risk assessment and issue tax assessments that are expected to be paid using EFTPOs (no cash will be accepted) and consignment delivered over the counter.

The viability and sustainability of this policy into the future depends on every MSME, SMEs and individuals and travellers observing maximum compliance, risk free and cooperation with Customs and its participating stakeholders.

Should you require further information or clarity on the implementation of this regulation, do contact Customs Team via telephone 312 7500 and ask for Mark Rami, Kiri Arthur or Wendy Nom..