PNG Customs Service

The PNG Customs Service administers customs and excise functions across Papua New Guinea, governing the movement of goods into and out of the country. For investors, particularly those involved in manufacturing, construction, resource extraction, or any activity requiring the importation of equipment and materials, the Customs Service is a key regulatory interface.

Legislative Framework

Customs operations in PNG are governed primarily by the Customs Act 1951 and the Customs Tariff Act 1990, along with associated regulations and ministerial determinations. The customs framework establishes the rules for tariff classification, valuation, origin determination, and the application of duties and taxes on imported goods.

Import Procedures

All goods imported into Papua New Guinea must be declared to the Customs Service. Importers are required to lodge customs entries, provide commercial documentation (invoices, bills of lading, packing lists), and pay applicable duties and taxes before goods are released from customs control.

Key considerations for investors importing goods include:

• Tariff classification — goods are classified under PNG’s tariff schedule, which is based on the Harmonized System (HS). The applicable duty rate depends on the classification of the goods.
• Capital goods and equipment — certain categories of capital equipment may be eligible for duty concessions or exemptions under specific provisions of the tariff legislation or through project-specific arrangements.
• GST on imports — Goods and Services Tax is payable on most imported goods, calculated on the customs value plus duty. GST-registered entities may claim input credits for GST paid on imports used in their taxable activities.
• Prohibited and restricted imports — certain goods are subject to import restrictions or require permits from other government agencies prior to importation.

Export Governance

Exports from Papua New Guinea are subject to customs export procedures, including lodgement of export entries and compliance with any applicable export licensing requirements. Certain commodities — particularly unprocessed natural resources — may be subject to export controls or licensing administered by the relevant sector authority.

Export documentation requirements are an important consideration for investors in sectors such as agriculture, fisheries, forestry, and mining, where compliance with both customs procedures and sector-specific export regulations is required.

Duty Concession Frameworks

Papua New Guinea provides for duty concession arrangements in certain circumstances, including for approved investment projects. These concessions may be negotiated as part of broader investment agreements or accessed through standing provisions in the tariff legislation. Eligibility and application processes are administered by the Customs Service in consultation with the relevant policy departments.

Investors should assess the customs and duty implications of their project’s import requirements during the planning phase. Further information on the regulatory environment is available in the Sector Regulations section, or investors may contact InvestPNG for guidance on customs-related matters.