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INDIRECT TAXES - Importing Goods into PNG (click on heading below then click again) Classification of Goods and Payment of Duty Valuation of Goods for Duty Industry Assistance Classification of Goods and Payment of Duty All goods imported into PNG by land, sea, air or post must be cleared by Customs. Goods are classified in accordance with the Harmonised Commodity Description and Coding System or the HS Tariff which was adopted by Papua New Guinea in 1991. This means that the rate of duty applicable for each commodity is found in the Schedule to the Customs Tariff Act 1990. The majority of goods imported into Papua New Guinea are free of import duties. Because of Papua New Guinea's membership of international organisations such as the World Customs Organisation (WCO), the World Trade Organisation (WTO) and the Asia Pacific Economic Cooperation (APEC), a progressive review of tariff reforms has recently been undertaken to assist in the facilitation of imported goods into Papua New Guinea The objective of the review was to significantly lower tariff bands for raw products and to provide a more moderate protective tariff rate for local manufacturers. The first reduction in the tariff rate bands became effective as of 1 July 1999 and will continue to be reduced further until year 2006. To complement the lowering of the tariff rates in accordance with international practice, the Government introduced a Value Added Tax (VAT) of 10% that is applicable on all imports unless exempted through a gazette notice. Customs collect the VAT at the time the goods are cleared for home consumption. Excise duties are also applicable to certain locally manufactured products. They are, in the main, the traditional excisable goods such as beer, spirituous beverages and tobacco products. "Specific" rates of excise duty are applicable for such goods and are found in the Schedule to the Excise Tariff Act. Provision has been made to slightly increase the excise rates of duty every six (6) months to take account of inflation. View and Print Importing Goods (Import Goods.PDF 6KB)

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