How to export from Papua New Guinea?
We will be discussing the steps and best practices for successfully exporting goods and products from Papua New Guinea.
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- When goods are exported from Papua New Guinea whether by sea, air or land. The owner is obliged by law to correctly declare goods to Customs.
- The owner via his/her clearing agent (Customs Broker) is required to prepare and lodge with Customs an Export/SAD declaration/ export entry describing the nature, quantity, value, supplier and country of origin of the goods exported or to be exported.
- This export entry MUST contain the name, address and Tax File Number of the owner is a legal document and any errors and or omissions may attract the imposition administrative penalties.
- Owners are warned that deliberate false declaration to Customs may result in the goods being seized and the owner or agent prosecuted.
A. Export Clearance Procedure
- The export clearance procedure requires the lodging of a declaration/entry (Customs Form 15) through Customs ASYCUDA World (AW) System.
- The entry can only be lodged by a licensed Customs Broker, who has been authorised in writing by the owner of the goods to act on his/her behalf through the form G26 agreement.
- The Customs Broker shall deal with all requirements/formalities needed to clear the goods through Customs, NAQIA and other, relevant border agencies prior to goods being released for export.
- The export entry shall be made by the owner or agent at any time within three (3) clear working days before the intended departing of goods at the port of departure of a conveyance carrying the goods;
- And not later than three (3) clear working days from the date of the outward report of the conveyance, or within such extended time as the Collector directs;
- A requirement to enter goods does not apply to goods that, for a total shipment:
- Have a value for duty not exceeding 5000 Kina; or
- Are accompanied or unaccompanied personal or household effects of a passenger, or a member of a of a crew, of a ship or aircraft
- Goods that have a value for duty not exceeding 5000 Kina but otherwise require an entry to be made shall be reported to Customs and duty paid in an approved form.
- Good that have a value for duty not exceeding 250 Kina shall be deemed to have a “free” rate of duty.
- A genuine Licensed Customs Broker must be identified and nominated by the exporter using Customs form G26 to lodge the export declaration with Customs.
- A Customs Entry (export declaration) is lodged through the AW system by the nominated Customs Broker. The relevant export document copies will be uploaded in the AW system for verification by Customs.
- If required by Customs, the Customs Broker is to print a hard copy of the entry with all relevant documents and produce it to Customs at a designated Customs office.
- The most important and often requested documents to confirm and verify the declarations made by the exporter and Customs Broker are:
- Genuine Commercial Invoice showing the correct value, quality, description, etc
- Bill of Lading or Air Waybill
- Packing List
- Customs Valuation Declaration
- Certificate of origin and value (if applicable)
- Export Permits /License/Applications, etc. (if applicable)
- Any other documents as may be required by Customs, including relevant emails
- The checking and verification of the declaration and relevant source documents are part of Customs due diligence checks to ensure the goods are correctly classified and valued.
- Customs checks is done to ensure:
- Correct documents are submitted
- Goods have been correctly classified using the updated Customs Tariff Act
- Legitimate value of the goods is declared
- The correct rate of duty has been applied
- Restricted/prohibited goods are not exported
At any time up to the release of the goods from a Customs Controlled Area, Customs has the mandate to intervene and to examine shipment/s where intelligence and risk assessment indicate the likelihood of it containing prohibited or restricted export.
- The payment of applicable duties and taxes as detailed on the notice of assessment issued by Customs.
- Export duties are payable by the owner or its agent at the rate in force when entry is made of the goods for home consumption.
- Here an assessment is made of an entry linked to a Customs prepayment account (if available), the AW System auto generates duty payment receipt for the total duty assessed on this account.
- Where an assessment is made of an entry not link to Customs prepayment account, the assessing officer shall issue a notice of assessment for duty payable to the owner or its agent of the goods.
- The duty specified in a notice of assessment is due and payable within 5 clear working days excluding weekends after the date of the issue of the notice of assessment.
- Where an amount of duty specified in a notice of assessment is not paid on or before the date specified in the notice and the notice has been issued to the owner or agent of the goods, the owner or agent of the goods shall pay to the Collector, in addition to the duty so specified:
- interest charges on the unpaid duty at the rate of 8% of the amount of the unpaid duty for each 5 days period or part thereof for which the duty remains unpaid until the duty is paid.
- An administrative penalty fee established by the Customs Act
- Exporter or its agent may choose to settle export duties via electronic payment system or EFPOS, as Cash payment is not accepted.
B. Penalties for Non-compliances and Breaches of Legislation
- PNG Customs Service takes a very serious stance against non- compliance and breaches of the Customs Act and other allied legislation which it enforces.
- Impositions of substantial penalties will be applied against any non-compliance and breaches of legislation that is evident during the Customs clearance process.
- Administrative Penalty
- Penalties range from 50 – 200% of any additional duties and taxes assessed, and/or seizure of the goods and conveyances (vehicle, vessel or aircraft).
- The following will apply when a penalty has been imposed:
- Exporter who do not make payments of any penalties within the prescribed period will have an interest added for any day thereafter the date due and may be referred for prosecution should the penalties remain unpaid.
- The exporter will be profiled as non-compliance individual/company and their future export will be targeted and appropriate corrective actions will be applied by Customs
- Unless the reason is genuine, any appeal for remittance or remission or waiver of any penalties will not be addressed by Customs, unless payments of these penalties have been made
- The actual exported goods may also be detained and or seized, together with the imposition of penalties.
C. Records of Exports
- It is mandatory that the owner of the goods and anyone who causes goods to be exported retain all relevant records in relation to those goods for a period of 5 years from the date of export.
- If the owner or other person is selected for Customs audit these records will be examined by Customs officers to ensure compliance with the Customs Act. Anyone who fails to retain these records carries severe penalties and this may include term of imprisonment
D. Restrictions & Prohibitions
- The owner of exporting goods should be aware the list of prohibited exports that they may only be exported under the authority of a permit or license, without which the goods are prohibited.
- A Schedule of goods that are restricted or prohibited absolutely can be seen in the Customs (Prohibited Imports) Regulations 1973.
- Nevertheless, restrictions and or prohibitions generally apply to goods that are of menace to the community e.g.; dangerous weapons such as firearms, illicit drugs, pornographic materials and copy right infringement goods etc.
PAPUA NEW GUINEA EXPORTS
Papua New Guinea is a country located in the southwestern Pacific Ocean, and it is known for its rich natural resources and diverse culture. The country’s economy is heavily reliant on exports, particularly in the areas of agriculture, mining, and forestry.
One of the main exports from Papua New Guinea is coffee. The country is a leading producer of Arabica coffee, which is known for its high quality and unique flavour. Coffee is grown in the highlands region of the country, and it is one of the main sources of income for many small farmers.
Another important export from Papua New Guinea is palm oil. The country is a major producer of this commodity, which is used in a wide range of products, from cooking oil to soap. The palm oil industry in Papua New Guinea is still relatively young, but it has the potential to become a major contributor to the country’s economy.
Papua New Guinea also exports a significant amount of timber. The country has a diverse range of forests, and the logging industry is a major source of income for many rural communities. However, the industry has also been criticized for its negative impact on the environment and for its lack of regulation.
The mining industry is also a major contributor to Papua New Guinea’s economy. The country is rich in minerals, including gold, copper, and oil. The mining industry has led to significant economic growth in recent years, but it has also been criticized for its negative impact on the environment and local communities.
In addition to these main exports, Papua New Guinea also exports a wide range of other products, including seafood, cocoa, and rubber. The country’s diverse range of natural resources provides a wide range of opportunities for economic development.
Obtaining licenses and permits is important when trading with Papua New Guinea (PNG) for several reasons:
Compliance with Regulations – Obtaining the necessary licenses and permits is important for ensuring compliance with the regulations that apply to the product being imported or exported. Failing to obtain the necessary licenses and permits can result in delays, fines, or other problems with the trade process.
Protecting Intellectual Property – Obtaining licenses and permits can also be important for protecting intellectual property rights, such as patents, trademarks, and copyrights. This is particularly important for products that are subject to intellectual property protection in PNG.
Facilitating Trade – Obtaining the necessary licenses and permits can facilitate trade by providing the necessary documentation to support the import or export of the product. This can help to ensure that the trade process runs smoothly and efficiently.
Demonstrating Commitment – Obtaining licenses and permits can also demonstrate a company’s commitment to operating in accordance with the regulations and laws of the country in which it is doing business. This can help to build trust and credibility with partners and customers in PNG.
The first step in exporting from PNG is to identify a market for the product. This may involve research to determine the demand for the product in the target market, as well as identifying any potential competitors and the regulations that apply to the product in the target market.
Depending on the product being exported, it may be necessary to obtain licenses and permits from the PNG government. For example, exports of certain products, such as timber, may require a permit from the Department of Environment and Conservation.
Once a market has been identified, the next step is to find a buyer for the product. This may involve working with a local agent or distributor, or finding buyers directly through trade shows, online platforms, or other channels.
The price of the product will need to be determined based on factors such as the cost of production, the demand for the product in the target market, and any applicable tariffs or other fees.
Exporting from PNG typically requires a range of documents, including commercial invoices, shipping documents, and export licenses. It is important to ensure that all necessary documents are in order to avoid delays or problems with the export process.
Once the buyer has been found and the necessary arrangements have been made, the product can be shipped to the buyer. This may involve working with a shipping company or logistics provider to arrange for the transport of the product.