By Roselyn Erehe
Papua New Guinea (PNG) recently hosted significant summits, among which the 2024 IPA Regulators Summit in July stood out. This gathering provided regulatory agencies a platform to share insights into their roles, responsibilities, and future plans, underscoring their vital contributions to the country’s economic development by ensuring legal compliance and advancing government initiatives.
During the summit, PNG Customs Chief Commissioner David Towe presented an overview of the agency’s daily operations. PNG Customs is tasked with enforcing laws related to the movement of goods, people, and services across the country’s borders. Its key functions include:
The Customs authority collaborates with agencies such as the National Trading Office and law enforcement to secure borders and regulate cross-border activities.
- Monitoring imports and exports
- Collecting duties and taxes
- Preventing smuggling
- Enforcing trade regulations
- Protecting national security
- Ensuring product safety
- Facilitating trade
In September, PNG Customs reported a significant achievement in its mid-year performance, reflecting resilience and effective fiscal management despite domestic and global economic challenges. Building on the momentum from 2023, PNG Customs entered 2024 with a commitment to exceed expectations under the theme, “Advancing Growth through Collaboration and Integrity.”
According to the mid-year report, PNG Customs collected K1,860.32 million in aggregate revenue by the end of June 2024. This figure represents 44% of the annual target of K4,250.15 million, as set by the 2024 National Budget projections. The 2024 revenue target reflects a 13% increase from the previous year’s target of K3.7 billion. Notably, this year’s mid-year revenue surpasses that of the same period in 2023 by K264.5 million—or 17%.
The agency’s core functions, including border security, trade facilitation, and revenue collection, played crucial roles in this success. PNG Customs facilitated K642.16 million in import duty and tax exemptions through project agreements, marking a 2.4% increase in exemptions compared to the same time last year, amounting to an additional K15.01 million.
Additionally, in the first half of 2024, PNG Customs processed and cleared 60,991 trade entries, comprising imports, exports, and local excise declarations. This represents a 12% increase in trade activity, with 6,794 additional customs declarations and excise entries compared to the first half of 2023. The growth in economic activity and trade reflects a rising demand and consumption within the country.
However, the first half of 2024 was not without challenges for PNG Customs. Revenue collections fell 6% short of projections due to various economic headwinds, and the agency continues to face limitations in resources for border surveillance and compliance enforcement.
Despite these challenges, PNG Customs remains committed to fulfilling its key mandates, ensuring effective border security, fostering economic growth, and contributing to the broader development policy agenda of the Marape-Rosso Government.
