Motor vehicles

Motor vehicles

This part covers the importation of motor vehicles by a resident returning to Papua New Guinea after residing overseas or any other person arriving in Papua New Guinea with the intention of taking up residence.

The vehicle may be imported into Papua New Guinea free of Customs duty and Import Excise duty provided the following requirements are met.

  1. The owner has come to Papua New Guinea with the intention of taking up residence in Papua New Guinea for a period of time exceeding twelve months, on or from their arrival date.
  2. The vehicle was for the whole period of over twelve months immediately preceding the owner's departure for Papua New Guinea personally owned and used by the owner in the country in which the owner was living.
  3. That evidence for the proof of ownership in a documentary form, such as registration certificate, invoice/proper purchase receipt, insurance certificate and passport, etc., can be produced to the Collector of Customs, at the port of importation on demand.
  4. On inspection/examination it is established that the vehicle has been actually used over twelve months and that it is roadworthy as required under Papua New Guinea's road traffic rules.

Valuation of Motor vehicles for Customs purposes

If these conditions are not met, the current rate of Customs Duty and Import Excise Duty payable would be determined as follows:-

  1. The actual money price paid plus value of any additional fittings and all charges paid or payable incurred in importing the vehicle including insurance and freight.
  2. The value established on the above basis will be subject to depreciation allowance of 5% for the first completed month of ownership and use overseas, less - further 1% for each subsequent month of ownership and use overseas, with a maximum reduction of 40% where a brand new vehicle was purchased from a dealer in the exporting country.
  3. The qualifying period for the depreciation allowance, for value for duty purposes, is to be taken as the period from the date of purchase to date of export to Papua New Guinea or, if sooner, the date of the owner's embarkation for Papua New Guinea provided the vehicle was in the ownership and use of the owner for the whole of the period.
  4. Where evidence produced is not acceptable to the Collector of Customs due to doubt as to the accuracy of value, the vehicle could be detained for further investigation and proper assessment value.

Vehicles which do NOT qualify for concessional duty rate

Where a vehicle has been purchased overseas second hand and brought to Papua New Guinea as a private or commercial import, the vehicle is not eligible for entry free of Customs duty and Import Excise duty. Customs duty and Import Excise duty is payable after proof of valuation is established.

Persons who have returned to Papua New Guinea to resume residence, after a short period of time overseas, less than 12 months, and who wish to import a vehicle purchased during their absence should note that Customs duty and Import

Excise duty will be payable upon importation of the vehicle after proof of valuation is established.

Steam Cleaning of used vehicles/containers etc.

Quarantine requires all imported vehicles and second hand equipment to be steam cleaned on arrival. Quarantine charges the importer for this service.

Indonesian Border (Wutung) Special Conditions

A temporary import and export permit system has been developed with Indonesia for use at this border post. Once fully opened, vehicles may transport goods and people between the two major towns in the region, Vanimo (Papua New Guinea) and Jayapura (Indonesia), without the need to formally import or export or pay Customs duty every time the vehicle passes through the border. This does not apply to any goods carried in the vehicle, which still attract Customs duty and need to be declared