Warehouses

Corporate Services Trade Compliance & Licensing Warehouses

The Chief Commissioner of Customs may, by notice in the National Gazette, appoint or license specific places as Customs Warehouses for the storage of goods subject to Customs control.

Chapter 101, Customs Act

What is a Customs Warehouse?

A Customs Warehouse is a licensed facility where dutiable goods can be stored without duties and taxes being paid immediately. Goods can remain in a warehouse for up to 12 months.

During this period, the goods are under Customs control. When the owner is ready to release the goods into the PNG market, they lodge an ex-warehouse declaration, pay the applicable duties and GST, and the goods are cleared for home consumption.

ℹ️ The duty rate applied is the rate in force at the time the ex-warehouse entry is lodged, not when the goods first arrived.

Types of Goods Stored in Customs Warehouses

Goods stored in licensed warehouses fall into two categories:

Category Description Examples
Imported Goods New goods imported into PNG that attract import duty. General merchandise, machinery, consumer goods.
Excisable Goods Goods manufactured locally under bond that attract excise duty when released for home consumption. Beer, spirits, tobacco products, petroleum products.

The Application Process

Becoming a Licensed Customs Warehouse Operator

Customs Warehouses are licensed by the Commissioner of Customs after the applicant fully meets all required conditions.

Step 1: Confirm You Are Eligible to Apply

While anyone can apply, strict conditions mean only serious and capable applicants succeed. You must:

  •  Be a person or company registered with the Investment Promotion Authority (IPA) under the Business Act 1998.
  •  Operate an enterprise whose core business activity requires a Customs Warehouse.
  •  Have sufficient capital to establish and sustain a warehouse.
  •  Be able to meet all security requirements set by Customs to protect revenue and ensure compliance.
Step 2: Prepare Your Application Documents

When applying for a new warehouse license, you must submit the following:

Item Description
Application Letter A formal letter addressed to the Commissioner of Customs expressing your interest.
Applicant Details Full name and address of the person or company applying.
Goods Particulars Full details of the types of goods you intend to warehouse.
Warehouse Plan A sketch plan or detailed drawing of the proposed warehouse premises.
Financial Evidence Proof of financial capacity to operate a warehouse (e.g., bank statements, financial records).
Additional Documents Any other documents Customs may require to assess your application.
Step 3: Submit and Await Assessment

Customs will review your application against strict criteria, including your suitability, financial capacity, and the security of your premises.

Step 4: If Approved – What Happens Next?

Successful applicants will receive a written approval from the Commissioner of Customs. This letter will specify:

  • The type of goods you are authorized to warehouse.
  • The limit of permitted operations (what you can and cannot do).
  • Your responsibilities under the Customs Act 1951, including liability to pay duty and GST on all goods unaccounted for.
  • Requirements for the physical security of the building and goods.
  • Your obligation to assist Customs officers when they are on-site performing their duties.

Before the license is issued, you must:

  • Lodge a Security: Provide a Bank Guarantee in a form acceptable to the Commissioner of Customs. The value of the security is determined by:
    • The type and quantity of goods to be warehoused.
    • Whether the goods are high-dutiable items.
    • The associated revenue risks.
    • The estimated value of goods to be warehoused in any single year.
  • Pay the License Fee: The initial license fee must be paid before the license is granted.

License Validity, Renewal & Revocation

Validity Period The license is valid for each calendar year
Renewal Deadline Must be renewed annually on or before the 10th working day of the new year.
Renewal Fee K2,000.00 per year, payable in one sum.
Revocation The Chief Commissioner reserves the right to revoke or cancel the license if the license holder or any staff are involved in breaches of the Customs Act 1951.

Key Responsibilities of a Licensed Warehouse Operator

Once licensed, you have ongoing legal obligations:

  • Pay Duties on Unaccounted Goods: You are liable to pay duty and GST on any goods that cannot be accounted for.
  • Maintain Security: Ensure the physical security of the premises and goods at all times.
  • Cooperate with Customs: Provide full assistance to Customs officers performing their duties on-site.
  • Comply with the Law: Adhere strictly to all conditions in your license and the Customs Act 1951.

Need more information?

Contact our Licensing Section should you have any queries: 📧cal@customs.gov.pg

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