Depots

Corporate Services Trade Compliance & Licensing Depots

What is a Customs Depot?

A Customs Depot is a Customs controlled area where goods are temporarily stored to facilitate the logistical requirements of international trade.

The primary purposes of a depot are:

  •  De-consolidation of imported containerised cargo.
  •  Consolidation of export cargo.
  •  Examination of goods by Customs officers.

ℹ️ Key Difference from Warehouses: Depots are fundamentally different from Customs Warehouses. License fees and bank guarantees are not required for depots.

Maximum Storage Period

Goods may remain in a depot for a maximum of 30 days from the time of arrival.

Timeframe Consequence
Within 30 days Goods must be cleared or entered for home consumption.
After 30 days Goods not cleared may be seized and moved to a government warehouse by Customs.
Extension Depot operators may apply for an extension of the storage period under certain circumstances.

The Application Process

Becoming an Approved Depot Operator

Depot approvals are granted under Section 21(A) of the Customs Act 1951, in the form of a permission renewed annually.

Step 1: Obtain an Application Pack

Application packs are available from:

  • Your local Customs office
  • The PNG Customs website
Step 2: Prepare Your Application

When considering an application, PNG Customs will assess your proposal against the following criteria:

  • Is the applicant a fit and proper person to hold a depot approval?
  • Is the applicant in a position to occupy and control the proposed depot, with suitable background and experience to operate a depot?
  • Is the location of the premises too remote from the nearest regular Customs operation to enable regular compliance checks?
  • Is the physical security adequate?
    This includes fencing, lighting, storage facilities, and separation of goods under Customs control from free goods.
  • Are there appropriate staffing arrangements?
    This includes designation of key person/s responsible for physical and documentary control of goods movement, and details of full-time security personnel.
  • Is the recording system suitable to ensure accurate and timely records are maintained for Customs audits and compliance checks?
  • Have detailed plans of the intended premises been provided, along with confirmation of commercial agreements for the owner to operate at the designated premises for the duration of the approval?

Who May Apply?

The following types of agencies are eligible to apply for depot approval:

  •  Agencies currently operating premises for the de-consolidation of cargo, either on the wharf or at airports
  •  Those who previously operated Class I or Class V warehouses
  •  Freight forwarders for whom this facility would improve logistical efficiencies

Depot Operator Responsibilities

Depots are legally designated as "Customs controlled areas" under Section 16 of the Customs Act 1951. As a depot operator, you have specific legal obligations:

Responsibility Description
Access Control Only grant access to the premises to authorized personnel.
Identification Ensure authorized personnel are properly identified.
Signage Display signs stating the premises are a Customs controlled area and entry is prohibited to unauthorized persons.
Record Keeping Maintain records of every depot transaction.
Accountability When requested, account to Customs for all goods held in the premises.

Depot Operations: How It Works

Movement of Containers

Containers are moved from a wharf to a depot by means of an FAK (Freight All Kinds) permission.

Goods Receipt and Release

  •   Receiving Goods: Maintain a register of all goods taken into the depot.
  •   Releasing Goods: Ensure goods are delivered into home consumption by means of a proper delivery authority.
  •   Full Containers: In some instances, full containers may be moved to depots with prior approval from the Customs operations area.

ℹ️ Customs will undertake regular audits to ensure all goods are properly accounted for, and goods are released in accordance with the law

Key Differences: Depot vs Warehouse

Feature Depot Warehouse
Legal Basis Section 21(A) approval Licensed facility
Storage Period Maximum 30 days Up to 12 months
License Fee Not required Required
Bank Guarantee Not required Required
Primary Purpose Cargo handling, de-consolidation, examination Long-term storage of dutiable goods

Important Notes

  • Approval is conferred by the Commissioner of Customs through regional offices and ports.
  • Approval may be revoked if conditions are not complied with by the operator.
  • Depot approvals are granted as an annual permission and must be renewed each year.

Need more information?

For more information or to request an application pack, contact the PNG Customs Licensing Section:

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