Tariff

Tariff Guide Classification in Papua New Guinea
Corporate Services Trade Tariff & Trade, Excise & Valuation Tariff

What is Tariff Classification?

Tariff classification is the process of determining the correct category for your goods under the Customs Tariff Act 1990. This classification is essential because it determines:

  •  The rate of duty applicable to your goods
  •  Whether any legal provisions (such as import/export licences or rules of origin) apply
General Rule: Customs agents are trained in classification and valuation procedures and should be able to properly classify your goods.

Getting Help with Classification

Step 1: Contact a Regional Tariff Officer

If you are unsure about the correct classification for your goods, you can contact a Tariff Officer at one of the regional offices:

  •   Southern Regional Operations, Port Moresby
  •   Northern Regional Operations, Lae
  •   Islands Regional Operations, Kokopo
Step 2: Referral to Headquarters

If the classification matter is more complex, it will be referred to the Headquarters Branch in Port Moresby for final determination.

Advice vs Ruling: Understanding the Difference

It is important to understand whether you are receiving general advice or a formal ruling, as they have different legal implications.

Aspect General Advice Formal Ruling
Nature General guidance provided to agents, clients, and industry. A formal instruction on a classification issue that must be followed.
Accountability The recipient is accountable for any decision made based on advice. Customs is accountable for any error made in the ruling.
Legal Status Provided "without prejudice" – not legally binding. Carries the full weight of law unless successfully challenged in Court.
Consequences of Disregard N/A – advice is guidance only. May result in additional duty, administrative penalties, seizure of goods, or prosecution.
Source Regional offices can provide advice. Only the headquarters office can issue a formal ruling.

How to Request a Tariff Ruling

For Customs to make accurate and consistent classification rulings, importers and traders have a responsibility to provide as much information as possible.

Information to Include in a Ruling Request:
  •   Product Literature: Brochures, catalogues, or technical specifications.
  •   Samples: Physical samples of the product in question (if feasible).
  •   Suggested Classification: Your own suggested tariff classification possibilities.
  •   Supporting Arguments: Any reasoning or evidence to support your suggested classification.

Duration and Amendments to Rulings

Scenario What Happens
Once a ruling is made It remains in force until it is superseded.
Changes to HS or Tariff Nomenclature Amendments to the Harmonized System (HS) or Tariff Nomenclature may result in Customs issuing a new ruling without a request from industry.
Effect of New Ruling The new ruling applies in the same way as if a particular importer or customs agent had requested it.

Tariff Schedules

The Customs Tariff Act 1990 contains two main schedules that govern the classification of goods.

Schedule No. 1: Import Tariff
  •  Purpose: All goods imported into Papua New Guinea must be classified using this schedule.
  •  Application: Determines the import duty rates and applicable provisions for all imported goods.
Schedule No. 2: Export Tariff
  •  Purpose: Governs export duties for goods leaving Papua New Guinea.
  •  General Rule: Where no item appears in Schedule 2, the "rate of export shall be free".
  •  Valuation Basis: Export values are calculated as "free on board" (FOB) – the total price paid or payable by a buyer taking delivery in the importing country.

Goods Subject to Export Duty

Most goods exported from Papua New Guinea are free from export duty. Notable exceptions include:

  • Crocodile skins
  • Log exports
  • Sandal wood

Export Permits: Additional Requirements

Exporters should note that other commodities require Export Permits before they can be lawfully exported, even if they are not subject to export duty.

Goods Requiring Export Permits
  •  Chapter 3: Fish and fishery products
  •  Chapter 28: Inorganic chemicals; alluvial gold and concentrates
  •  Chapter 44: Wood and articles of wood; log exports
  •  Chapter 71: Precious metals and articles of precious metal
Where to Obtain Export Permits

Export Permits are issued by the responsible Government agency:

  •  Fish products: Fisheries Authority
  •  Logs and wood products: Forestry Authority
  •  Alluvial gold and concentrates: Mineral Resources Authority

Consequences of Non-Compliance

ℹ️ Export Permits must be presented to Customs on demand.

⚠️ Attempts to export these commodities without a valid Export Permit may result in; Seizure of the goods and prosecution of the exporter.

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