In Papua New Guinea (PNG), the primary enforcement agency with respect to cross border trade is the Customs Division of the Internal Revenue Commission (Customs).
PNG is a member of the World Trade Organization (WTO), the World Customs Organization (WCO) and the Asia Pacific Economic Cooperation (APEC). As a member of these world organizations, PNG has, since 1996, reduced import duty rates to remove barriers to international trade through tariff reforms. Most imports including capital equipment and parts thereof are free of import duty. However, imports are subject to a 10 percent Goods Services Tax. There are still import duties on certain goods prescribed as luxury goods and on those which the Government has considered as necessary to encourage local industry or protect local products. Goods are classified in accordance with the International Harmonized Commodity Description and Coding System.
An excise duty system also applies. Excise duty applies to excisable goods which are largely locally manufactured goods and on certain imported goods such as spirits, cigarettes and motor vehicles as import excise.