No Discretionary Power
The Papua New Guinea Customs Service (PNGCS) explicitly states it does not have the discretion or power to exempt imports from duties or taxes on its own authority.
PNGCS acts as a facilitator and enforcer of exemptions that have been legally established by higher authorities.
Mandatory Legal Basis: An exemption can only be granted if a pre-existing legal instrument authorizes it. Without such an instrument, applicable duties and taxes must be imposed.
Legal Framework and Approval Authority
Source of Exemption Authority
Exemptions are not created by Customs but are facilitated by Customs after being established through the following government process:
- National Executive Council (NEC) Approval: The policy decision is made by the NEC.
- Head of State Endorsement: Formally endorsed by the Head of State.
- Creation of Legal Instrument: Codified into a legally binding instrument.
Types of Legal Instruments
Exemptions are grounded in specific legal documents, including:
- Gazette Notices: Official government publications.
- Project Agreements: Contracts for specific development projects.
- Bilateral and Multilateral Trade Agreements: International treaties.
Application Requirement
All exemption requests must cite the specific relevant legal instrument under which the exemption is being sought. The application form must include this information.
Specific Requirements for Different Applicant Types
Non-Profit and Public Service Institutions
Charities, churches, and health/educational/research institutions may qualify for exemptions only on a specific category of goods and must meet additional certification requirements:
| Institution Type | Required Certification / Authority |
|---|---|
| All (Charities, Churches, etc.) | Certified by relevant authorities (e.g., Internal Revenue Commission for tax status, Health Department for medical institutions). |
| Educational Institutions | Goods must be certified by the Curriculum Unit of the Department of Education. |
Application Process and Documentation
Submission Protocol
- Requests must be submitted to Tariff Officers in Regional Operations or the Tariff & Trade Section at PNGCS headquarters. Also see Our Offices
- The official Exemption Application Form must be completed.
Required Supporting Documentation
In addition to the completed form and the cited legal instrument, all relevant commercial documents for the consignment must be attached:
- Bill of Lading or Airway Bill
- Packing List
- Commercial Invoice(s)
- Copies of Relevant Certifications (e.g., from IRC, Health Dept., Education Dept.)
Important: Incomplete applications (missing legal instrument or commercial docs) will not be processed.
Processing Timelines and Service Commitment
- Applications should be lodged at least 15 working days before the consignment’s arrival.
- PNGCS will provide a reply or acknowledgement within 5 working days of receiving a complete request, in line with its Client Service Charter.
Key Takeaways for Importers
- No Arbitrary Exemptions: Do not expect PNGCS to grant exemptions based on appeal or circumstance alone. A legal basis is mandatory.
- Plan Ahead: Begin the application process well before shipment arrival (15+ working days).
- Complete Documentation: Ensure the application package is complete with the form, legal reference, and all commercial documents.
- Specific Eligibility: Institutional exemptions are narrow and require proof of status and, for educational goods, curriculum relevance.
- PNGCS is a Facilitator: The service clarifies its role is to implement exemptions created by the NEC and Head of State, not to create them.
For more information in regard to exemption, please contact the following:
Headquarters (Tariff & Trade Section, Port Moresby)
- Phone: 312 7582 / 312 7511 / 312 7668 / 323 1882
- Email: tariffntrade@customs.gov.pg
Regional Tariff Officers
- Port Moresby: 312 7519
- Lae: 472 4899
- Kokopo: 983 9201