Japan Used Car Import Duty / Regulation in PNG

• Year Restrictions

  No Age Limit

• Destination Port

  LAE, Rabaul, Port Moresby

• Time of Shipment

  RoRo (34-44 Days)

• Vessel Schedule

  RoRo (Monthly)

• Shipping Line

  Deugro (PNG) Ltd.,

• Inspection

  JEVIC

Documents for Customs Clearance:

• Invoice showing the correct value, quantity, description, etc.
• Bill of Lading (BOL)
• Commercial Invoice
• Customs Valuation Declaration
• Certificate of origin and value (if applicable)
• Import Permits/ Licenses/ Applications, etc (if prohibited/restricted)

Duty free importation of used vehicles in Papua New Guinea is allowed provided the following conditions are met

• The vehicle owner should reside in Papua New Guinea for a period of time exceeding a year, on or from their arrival date.
• The vehicle was for the whole period of over twelve months immediately preceding the owner’s departure for Papua New Guinea personally owned and used by the owner in the country in which the owner was living.
• Proof of ownership of the vehicle in a documentary form, such as registration certificate, invoice/ purchase receipt, insurance certificate and passport, etc. The documents can be produced to the Collector of Customs at the port of importation on demand.
• It is established onthat the vehicle has been used for a period of over twelve months and that it is roadworthy as per the safety standard and rules under Papua New Guinea’s road traffic rules.

If above conditions are not met, then the Customs duty and Import Excise duty that should be paid are decided as follows

• The actual price paid plus value of any additional fittings and all charges paid or payable incurred in importing the vehicle including insurance and freight.
• The value established on the above basis will be subject to depreciation allowance of 5% for the first completed month of ownership and use overseas, less – further 1% for each subsequent month of ownership and use overseas, with a maximum reduction of 40% where a brand new vehicle was purchased from a dealer in the exporting country.
• The qualifying period for the depreciation allowance, for value for duty purposes, is to be taken as the period from the date of purchase to date of export to Papua New Guinea or, if sooner, the date of the owner’s embarkation for Papua New Guinea provided the vehicle was in the ownership and use of the owner for the whole of the period.
• If the evidences provided are not accurate due to discrepancy in value, thus are not accepted by the Collector of Customs. The vehicle could be seized for further investigation and proper estimation value.

Vehicles which do not qualify for concession on duty rate:

• If the vehicle has been bought overseas as a used vehicle and is brought to PNG as a private or commercial import. Customs duty and Import Excise duty is payable after proof of valuation is established.
• If the person comes back to PNG after residing overseas for a period that is even less than a year and wish to import a vehicle purchased. It should be noted that Customs duty and Import Excise duty will be payable upon importation of the vehicle after proof of valuation is established.

The demand for used vehicles in Papua New Guinea is rising year by year. In the year 2010 around 2,940 units of used vehicles were imported into the country, which increased to 4,245 units in the year 2012. This year also, there are assumptions that the figure will surpass the last year’s numbers.

Import tax Rates:

Duties= (CIF value*import duty)*GST

For Personal Vehicles:

• Vehicles with the engine size up to 2,700cc customs duty- 60% of CIF amount
• Vehicles with the engine size more than 2,701cc customs duty-110% of CIF amount

For Commercial Vehicles:

• With seating capacity over 10 seats import duty- 10%
• With seating capacity under 10 seats import duty-40%

Note: Goods and Services Tax (GST) is same for every vehicle (personal and commercial) imported, i.e. 10%