A Guide to Customs-Approved Depots in Papua New Guinea
Depots are secure, Customs-controlled areas that are essential for international trade. They are primarily used for:
- De-consolidating imported container cargo.
- Consolidating export cargo.
- Facilitating the examination of goods by Customs.
Unlike a warehouse, a depot is a temporary storage solution. Goods can be stored for a maximum of 30 days from their arrival.
Who Can Apply for a Depot Approval?
You can apply if your agency operates in logistics and fits one of these categories:
- Currently operates a cargo de-consolidation facility at a wharf or airport.
- Previously operated a Class I or Class V Customs warehouse.
- Is a freight forwarder seeking to improve logistical efficiency.
The Step-by-Step Application Process
Approval is granted as an annual permission under Section 21(A) of the Customs Act 1951.
Step 1: Obtain and Prepare Your Application
- Get the application pack from your local Customs office or the PNG Customs website.
- Prepare detailed plans of your proposed premises and proof of a commercial agreement to operate there.
- Be ready to demonstrate how your operation meets the key criteria (see table below).
Step 2: Submit and Await Assessment
Customs will assess your application based on several key factors:
| Assessment Criteria | What You Need to Demonstrate |
|---|---|
| Operator Suitability | That you (the applicant) are a “fit and proper person” with the right experience. |
| Location & Control | That you can occupy and control the premises and that the location allows for regular Customs checks. |
| Physical Security | Adequate fencing, lighting, and storage to separate Customs-controlled goods from others. |
| Staff & Procedures | Designated responsible personnel and security staff, with clear procedures for controlling goods. |
| Record-Keeping System | A system that maintains accurate, timely records suitable for Customs audits. |
Step 3: Operate Under Customs Approval
If approved, remember that this is an annual permission. Non-compliance with any conditions can lead to the approval being revoked.
Your Responsibilities as a Depot Operator
Once approved, your depot becomes a “Customs controlled area” under Section 16 of the Customs Act. Your legal duties include:
- Control Access: Only grant entry to authorized, properly identified personnel.
- Post Clear Signs: Display signs stating the premises are a Customs controlled area.
- Maintain Records: Keep a complete register of all goods moving in and out. This includes managing FAK (Freight All Kinds) permissions for moving containers.
- Account for Goods: Be able to account to Customs for all goods under your control when requested.
- Facilitate Audits: Allow Customs to conduct regular audits to ensure compliance.
Key Operational Rules
- 30-Day Storage Limit: Goods must be cleared for home consumption within 30 days of arrival. Customs may seize and move overdue goods to a government warehouse. Extensions may be applied for under certain circumstances.
- Release of Goods: Goods must be released from the depot using a proper delivery authority.
Need More Information?
For application packs or specific queries, contact the PNG Customs Licensing Section: