What is a Customs Warehouse?
A Customs Warehouse is a government-licensed facility where you can store imported or locally made dutiable goods for up to 12 months without paying duties or taxes on them. This helps businesses manage cash flow and logistics.
Key Benefit: You only pay the duty and tax when you take the goods out for sale or use in Papua New Guinea (“home consumption”). The duty rate applied is the one in force on the day you file the release paperwork.
Who Can Apply to Own a Warehouse?
Not everyone will qualify. To be eligible, you or your company must meet these core conditions:
- Valid Business Registration: You must be a person or company registered with Papua New Guinea’s Investment Promotion Authority (IPA) under the Business Act 1998.
- Relevant Core Business: Operating a warehouse must be a necessary part of your main business activity (e.g., you are a major importer, manufacturer, or logistics company).
- Financial & Operational Capacity: You must prove you have enough capital to run the facility and can meet all security standards set by Customs to protect the goods and ensure tax compliance.
Step-by-Step Application Process
Here is how to apply for a Customs Warehouse license:
| Step Actions | Details & Requirements |
|---|---|
| Step 1 – Submit Formal Application | Send a letter to the Commissioner of Customs including: • Your/your company’s full name and address. • Details of the types of goods to be stored. • A sketch plan of the proposed warehouse. |
| Step 2 – Provide Supporting Documents | You must also provide: • Evidence of financial capacity to operate. • Any other documents Customs may request to assess your application. |
| Step 3 – Application Review & Approval | Customs reviews your application against strict conditions. If successful, you will receive a written notice detailing your approved goods, operational limits, and legal responsibilities. |
| Step 4 – Lodge Security & Pay Fees | Before the license is issued, you must: • Provide a Bank Guarantee (the amount is set by Customs based on risk and goods value). • Pay the annual license fee (K2000.00). |
| Step 5 – License Issuance & Renewal | The license is valid for a calendar year and must be renewed annually by the 10th working day of the new year, with the K2000.00 fee paid again. |
Warehouse Owner’s Key Responsibilities & Risks
Owning a licensed warehouse comes with serious legal and financial obligations under the Customs Act 1951:
- Duty & Tax Liability: You are personally liable to pay all Customs Duty and GST on any goods that are lost, stolen, or cannot be accounted for while in your warehouse.
- Security & Compliance: You must maintain the physical security of the building and goods. You are also obligated to provide full assistance to Customs officers during inspections or audits.
- License Revocation: The Commissioner of Customs has the right to revoke or cancel the license if you or your staff breach the Customs Act.
Types of Goods Stored in Warehouses
Warehouses hold goods under Customs control, which fall into two main categories:
| Category | Description | Common Examples |
|---|---|---|
| Imported Goods | New goods from overseas that attract import duty. | General merchandise, machinery, vehicles, consumer goods. |
| Excisable Goods | Goods manufactured locally in a “bonded” facility, where Excise duty is deferred until release. | Beer, spirits, tobacco products, petroleum products. |
Need More Information?
For specific queries about licensing a warehouse, you can contact the PNG Customs Service Licensing Section:
- Telephone: +675 3127568 or +675 3127500
- Email: cal@customs.gov.pg