Information on Requests for Exemption of duties on imported goods

 

Granting of exemption from duties is not discretionary

The Papua New Guinea Customs Service wishes to advise all that the PNG Customs Service does not have discretion or power to exempt imports from any duties or taxes payable upon importation.

Exemptions can only be granted to any importers where a legal instrument exists or is in place that makes the exemption lawfully possible. Otherwise duties applicable will be imposed.

 

Relevant legal instrument

The PNG Customs Service only facilitates exemptions that have been approved by the National Executive Council (NEG) and endorsed by the Head of State through a legally binding instrument.  Such instruments include Gazette Notices, Project agreements, Bilateral and Multilateral Trade Agreements.

 

The Papua New Guinea Customs Service wishes to advice that all requests/applications for exemption of Import Duty, Import Excise and Import Goods & Services Tax (GST) must be submitted through the Tariff Officers in Regional Operations or the Tariff & Trade Section at headquarters, and an application form must be filled out with the relevant legal instruments under which the exemption is being requested.

 

Other requirements

Charity organizations, Churches, Health, Educational and Research institutions are only granted exemption on a specific category of goods, provided these institutions are certified by the relevant authorities, such as the Internal Revenue Commission and the Health Department.

 

For Educational Institutions, the consignment of goods will also need to be certified by the Curriculum Unit of the Department of Education.

 

Relevant commercial documentation

The PNG Customs Service will only deliberate on exemption requests/applications presented to our relevant offices/officers, with all relevant/required documents attached to the exemption application form.

 

It is important that all application forms must also include (apart from the legal instrument) the following and other related commercial documents:

 

  • Bill of Lading or Airway Bills;
  • Packing lists; and
  • Invoices for the respective consignment or shipment;
  • Copies of relevant Certification by relevant authorities.

 

Response from PNGCS

It will assist both parties if requests or applications for exemptions are lodged 15 working days prior to the arrival of the consignment. Customs will furnish a reply/acknowledgement within five (5) working days of receipt of request in compliance with the PNG Customs Service Charter.

We trust this will help clarify certain misconceptions that the stakeholders and the general public may have regarding “exemptions” of import duties and/or taxes.

 

For any further information relating to Exemptions, contact the Regional Tariff Officers at the Ports of Lae on 472 4899, Port Moresby on 3127519 and Kokopo on 983 9201.

 

You can also contact the Tariff & Trade Section at the PNG Customs Service Headquarter in Port Moresby on:

 

Phone: 312 7582, 312 7511 or 312 7668

Fax: 323 1882

Email: tariffntrade@customs.gov.pg