The following example explains how the concessions are applied.
A family, consisting of husband, partner and one child under 18 years old, arrives at Jacksons Airport from overseas. In their personal luggage, in addition to their clothing; they have a video camera, which they've owned for some time, a new personal computer, 2 cartons of cigarettes and 4 bottles of alcohol.
The duty free allowance and exemptions mean that the family will be charged duty on the new personal computer but not on the used camera or on the cigarettes or alcohol. However as the two adults are entitled to a 1000 Kina duty free concession and the child a 500 Kina concession, the amount of duty payable is calculated on the value personal computer minus 2,500 Kina, being the sum of their concessions.
The calculation will look like this (the value of the computer is for example purposes only):
Value of the personal computer |
5,000 Kina |
Total family concession |
2,500 Kina |
Total Customs value for duty |
2,500 Kina |
The amount of duty Customs charges is calculated at the rate specified in the Customs Tariff Act 1990. Different rates apply for different types of goods. The duty rate for personal computers is currently zero. Customs duty also includes the payment of a GST component. The GST rate applied is 10% of the value of the goods plus the amount of duty payable on those goods.
In this example the calculation for GST is:
K2500 + K0 x 10% = 250 Kina.
The total amount payable to Customs is the sum of the duty and GST. Therefore in this example the total amount to be paid to Customs by this family is 250 Kina.
Had the family add any additional cigarettes or alcohol then they would have been charged duty on them, as the child is not entitled to any allowance for these items and the 1000 Kina exemption on new goods does not apply to tobacco or alcohol products.
A quick guide to the formulas:
- The value of the item - the passenger concession = Customs Value [CV]
- {Customs Value [CV] + Customs Duty [CD]} x 10% = GST Payable
- CD + GST = Total Amount Payable