{"id":266,"date":"2026-01-19T11:31:05","date_gmt":"2026-01-19T01:31:05","guid":{"rendered":"https:\/\/dev.customs.gov.pg\/?page_id=266"},"modified":"2026-02-02T13:18:16","modified_gmt":"2026-02-02T03:18:16","slug":"exemptions","status":"publish","type":"page","link":"https:\/\/dev.customs.gov.pg\/index.php\/exemptions\/","title":{"rendered":"Exemptions"},"content":{"rendered":"\n<div class=\"wp-block-group alignwide is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-353c4f5a wp-block-group-is-layout-flex\">\n<h2 class=\"wp-block-heading\">Legal Framework and Exemption Authority<\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\">Legal Basis for Exemptions<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customs Tariff Act 1990, Section 9(1)(a)<\/strong>: Authorizes the Head of State, acting on advice, to exempt specific goods from duty.<\/li>\n\n\n\n<li><strong>Goods and Services Tax Act 2003, Section 25(8)<\/strong>: Authorizes the exemption of Goods and Services Tax (GST).<\/li>\n\n\n\n<li><strong>Other Relevant Legislation<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Diplomatic and Consular Privileges and Immunities Act<\/li>\n\n\n\n<li>Aid Status (Privileges and Immunities) Act<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\">Authority Granting Exemptions<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Head of State<\/strong>: Holds the ultimate decision-making power for exemptions.<\/li>\n\n\n\n<li><strong>Acting on Advice<\/strong>: Makes decisions based on recommendations from relevant departments.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-accent-5-color has-alpha-channel-opacity has-accent-5-background-color has-background is-style-dots\"\/>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group alignwide is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-353c4f5a wp-block-group-is-layout-flex\">\n<h2 class=\"wp-block-heading\">Types of Exemptions and Applicable Conditions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Diplomatic and Consular Privileges Exemptions<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Based on the Vienna Convention, to which Papua New Guinea is a signatory. This ensures reciprocal treatment for diplomats.<\/li>\n\n\n\n<li>Exempts foreign diplomats in PNG from paying customs duties and other taxes, mirroring privileges granted to PNG diplomats overseas.<\/li>\n\n\n\n<li>Reciprocity and adherence to international diplomatic norms.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Aid Status Privileges Exemptions<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This facilitates the provision of foreign aid by removing potential barriers posed by domestic tax laws.<\/li>\n\n\n\n<li><strong>Conditions<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Granted to organizations and personnel designated with &#8220;aid status&#8221; by the Head of State.<\/li>\n\n\n\n<li>Often includes\u00a0<strong>end-use obligations<\/strong>. Duties\/taxes become payable if the specified conditions (e.g., use for a specific aid project) are not met.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><em><strong>Important Note<\/strong>: Contractors or subcontractors to designated aid agencies are generally\u00a0<strong>not automatically exempt<\/strong>\u00a0unless explicitly provided for in their contract under the Loans and Assistance Act (Section 8).<\/em><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Exemptions under the Customs Tariff Act<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 9 allows the Head of State to exempt goods or apply reduced duty rates.<\/li>\n\n\n\n<li><strong>Key Exemption Categories<\/strong>:\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Goods imported by certified community organizations<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Must be certified by the Secretary of the Department of Prime Minister.<\/li>\n\n\n\n<li>Organization must be non-commercial and exclusively devoted to the public interest.<\/li>\n\n\n\n<li>Activities must relate to:<br>a) Advancement of education and vocational training; OR<br>b) Provision of medical services.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Goods for educational or training purposes<\/strong>:\n<ul class=\"wp-block-list\">\n<li>For use by institutions officially recognized by the Secretary for Education or the Commissioner for Higher Education.<\/li>\n\n\n\n<li><strong>Not for sale, exchange, or trade within 5 years<\/strong>.<\/li>\n\n\n\n<li>Must be imported on a firm and specific order.<\/li>\n\n\n\n<li>Must be goods that, in the opinion of the Commissioner-General,\u00a0<strong>cannot be locally produced or manufactured<\/strong>.<\/li>\n\n\n\n<li>Must be certified as necessary for an approved curriculum or for the institution&#8217;s operation.<\/li>\n\n\n\n<li>If disposed of within 5 years without prior written approval from the Commissioner-General, a proportional amount of duty for the remaining period becomes payable.<\/li>\n\n\n\n<li>If purchased based on a duty-free quotation, the sale price must not exceed 120% of the C.I.F. value.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/li>\n\n\n\n<li><strong>Other Exemptions<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Reduced tariff rates for goods originating from certain Pacific region countries (under trade agreements).<\/li>\n\n\n\n<li>Reduced rates for imports that assist local industry.<\/li>\n\n\n\n<li>Exemptions under\u00a0<strong>Bilateral\/Multilateral Treaties and Agreements<\/strong>\u00a0(typically under the Loans and Assistance Act, Section 8), which also impose end-use obligations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-accent-5-color has-alpha-channel-opacity has-accent-5-background-color has-background is-style-dots\"\/>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group alignwide is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-353c4f5a wp-block-group-is-layout-flex\">\n<h2 class=\"wp-block-heading\">Exemption Application Process<\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<h4 class=\"wp-block-heading\">Pre-Application<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<ul class=\"wp-block-list\">\n<li>Applications must be submitted\u00a0<strong>well in advance<\/strong>\u00a0of the goods&#8217; arrival.<\/li>\n\n\n\n<li>The importer is responsible for ensuring the import meets all Customs requirements.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<h4 class=\"wp-block-heading\">Required Application Documentation<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p>A written application must be submitted to the&nbsp;<strong>Director &#8211; Tariff and Trade Branch<\/strong>&nbsp;and must include:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Application Letter<\/strong>\u00a0stating:\n<ul class=\"wp-block-list\">\n<li>Nature of the organization&#8217;s activity.<\/li>\n\n\n\n<li>Specific grounds for requesting the duty\/tax exemption.<\/li>\n\n\n\n<li>Relevant legislation under which the organization qualifies.<\/li>\n\n\n\n<li>Confirmation that the imported goods are qualifying goods.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Supporting Import Documents<\/strong>\u00a0(for each consignment):\n<ul class=\"wp-block-list\">\n<li>Airway Bill or Bill of Lading<\/li>\n\n\n\n<li>Commercial Invoice<\/li>\n\n\n\n<li>Packing List<\/li>\n\n\n\n<li>Purchase Order<\/li>\n\n\n\n<li>Credit Note<\/li>\n\n\n\n<li>Telegraphic Transfer<\/li>\n\n\n\n<li>Manifest\/Consignment Note<\/li>\n\n\n\n<li>Any relevant email correspondence<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<h4 class=\"wp-block-heading\">Processing &amp; Outcome<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<ul class=\"wp-block-list\">\n<li><strong>Review<\/strong>: Customs verifies compliance with exemption terms and conditions.<\/li>\n\n\n\n<li><strong>Approval<\/strong>: If successful, a written exemption approval is issued.<\/li>\n\n\n\n<li><strong>Clearance<\/strong>: The approval letter\u00a0<strong>must be presented<\/strong>\u00a0when the customs agent lodges the import entry. Normal clearance formalities, including possible inspection by Customs or Quarantine, still apply.<\/li>\n\n\n\n<li><strong>Permits\/Licenses<\/strong>: Goods requiring import permits or licenses must still have those documents produced at clearance, even if exempt from duty.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<h4 class=\"wp-block-heading\">Financial Responsibilities of the Importer<\/h4>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p>Even for exempt goods, the importer is responsible for paying:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Quarantine charges.<\/li>\n\n\n\n<li>Wharf or transport company handling charges.<\/li>\n\n\n\n<li>Customs agent fees for clearance services.<\/li>\n\n\n\n<li><strong>Important<\/strong>: Delays in clearance (e.g., due to late application) resulting in storage charges are the importer&#8217;s responsibility, unless caused by Customs officer neglect.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-accent-5-color has-alpha-channel-opacity has-accent-5-background-color has-background is-style-dots\"\/>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group alignwide is-vertical is-layout-flex wp-container-core-group-is-layout-fe9cc265 wp-block-group-is-layout-flex\">\n<h2 class=\"wp-block-heading\">Key Compliance and Enforcement Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reporting Requirement<\/strong>: Exempt goods must still be formally reported to Customs upon import.<\/li>\n\n\n\n<li><strong>Zero-Rate Application<\/strong>: Instead of being duty-free, exempt goods have a\u00a0<strong>customs duty rate of zero<\/strong>\u00a0applied.<\/li>\n\n\n\n<li><strong>End-Use Monitoring<\/strong>: Many exemptions (Aid Status, Tariff Act educational goods, Treaties) come with conditions. Failure to comply can trigger liability for the duties\/taxes that were waived.<\/li>\n\n\n\n<li><strong>Non-Commercial Focus<\/strong>: Exemptions for community and educational goods are strictly for\u00a0<strong>non-commercial<\/strong>\u00a0purposes.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-accent-5-color has-alpha-channel-opacity has-accent-5-background-color has-background is-style-dots\"\/>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Related Documents<\/h3>\n\n\n\n<div class=\"wp-block-group is-layout-grid wp-container-core-group-is-layout-478b6e6b wp-block-group-is-layout-grid\">\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-12b69f98-204b-4d63-b784-077145eaaba7\" href=\"https:\/\/dev.customs.gov.pg\/wp-content\/uploads\/2025\/09\/Application-for-Exemptions.pdf\">Application for Exemption(s)<\/a><a href=\"https:\/\/dev.customs.gov.pg\/wp-content\/uploads\/2025\/09\/Application-for-Exemptions.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-12b69f98-204b-4d63-b784-077145eaaba7\">Download<\/a><\/div>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-ce095a77-d98e-40b2-a47b-7b4f140485fb\" href=\"https:\/\/dev.customs.gov.pg\/wp-content\/uploads\/2025\/09\/Customs-Tariff-Act-1990-Update-2022.pdf\">Customs Tariff Act 1990 (Update 2022)<\/a><a href=\"https:\/\/dev.customs.gov.pg\/wp-content\/uploads\/2025\/09\/Customs-Tariff-Act-1990-Update-2022.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-ce095a77-d98e-40b2-a47b-7b4f140485fb\">Download<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Legal Framework and Exemption Authority Legal Basis for Exemptions Authority Granting Exemptions Types of Exemptions and Applicable Conditions Diplomatic and Consular Privileges Exemptions Aid Status Privileges Exemptions Exemptions under the Customs Tariff Act Exemption Application Process Pre-Application Required Application Documentation A written application must be submitted to the&nbsp;Director &#8211; Tariff and Trade Branch&nbsp;and must include: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":637,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-266","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Exemptions - PNG Customs Service<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.customs.gov.pg\/index.php\/exemptions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Exemptions - PNG Customs Service\" \/>\n<meta property=\"og:description\" content=\"Legal Framework and Exemption Authority Legal Basis for Exemptions Authority Granting Exemptions Types of Exemptions and Applicable Conditions Diplomatic and Consular Privileges Exemptions Aid Status Privileges Exemptions Exemptions under the Customs Tariff Act Exemption Application Process Pre-Application Required Application Documentation A written application must be submitted to the&nbsp;Director &#8211; 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