Freight Forwarders for Papua New Guinea Trade Routes

Shipping goods to Papua New Guinea (PNG) involves more than transport logistics. Customs clearance is the primary bottleneck—and the most common point of failure—for importers unfamiliar with PNG’s regulatory environment. Delays, penalties, or cargo holds are usually caused by incomplete documentation or non-compliance with customs rules.

This guide explains how PNG customs works, what documents are mandatory, and how to reduce clearance risk when importing from Australia or other countries.

Overview of Customs Clearance in Papua New Guinea

All imports into Papua New Guinea are regulated by the PNG Customs Service, under the Customs Act 1951 and supporting regulations. Customs clearance applies to:

• Commercial cargo

• Personal effects

• Project and mining equipment

• Medical supplies

• Humanitarian and aid shipments

Clearance must be completed before cargo can be released, whether it arrives by air or sea.

Mandatory Import Documentation

Missing or inconsistent paperwork is the #1 cause of delays in PNG. The following documents are typically required:

1. Commercial Invoice

Must include:

• Seller and buyer details

• Full goods description (no vague terms)

• HS code (recommended)

• Invoice value and currency

• Incoterms (e.g. CIF, FOB)

Undervaluation is a high-risk issue in PNG and often triggers inspection.

2. Packing List

Should clearly state:

• Number of packages

• Weight (gross and net)

• Dimensions

• Package type (cartons, crates, pallets)

3. Bill of Lading or Air Waybill

• Must match the invoice and packing list exactly

• Consignee details must be correct

• Notify party should be specified where required

4. Import Declaration (Single Administrative Document)

Filed through a licensed PNG customs broker. Self-lodgement by foreign importers is not permitted.

5. Import Permit or License (if applicable)

Required for controlled goods such as:

• Food and agricultural products

• Pharmaceuticals and medical devices

• Chemicals and hazardous materials

• Telecommunications equipment

• Firearms and restricted items

Duties, GST, and Customs Charges

Import Duty

• Rates vary depending on HS classification

• Many goods attract 0–15% duty, but misclassification can result in reassessment and fines

Goods and Services Tax (GST)

• Standard rate: 10%

• Calculated on CIF value + duty

Other Charges

• Customs processing fees

• Quarantine or inspection fees

• Port and terminal handling charges

Failure to pre-calculate landed cost is a common commercial mistake.

Quarantine and Biosecurity Compliance

Papua New Guinea enforces strict biosecurity controls, particularly for:

• Food products

• Wooden packaging and pallets

• Used machinery and vehicles

Common requirements include:

• Fumigation certificates

• Phytosanitary certificates

• Cleaning declarations for used equipment

Non-compliant cargo may be re-exported or destroyed at the importer’s cost.

High-Risk Compliance Issues in PNG

Importers routinely underestimate the following risks:

• Inaccurate cargo descriptions

• Missing import permits

• Incorrect HS codes

• Undervaluation to reduce duty

• Using unlicensed customs brokers

PNG Customs has broad discretion to hold cargo indefinitely pending investigation.

Role of Licensed Customs Brokers

PNG customs law effectively requires the use of a local licensed customs broker. A competent broker will:

• Classify goods correctly

• Lodge declarations accurately

• Liaise with Customs and Quarantine

• Resolve inspections and valuation disputes

• Minimise clearance delays

Attempting to “cut costs” here often increases total landed cost.

Best Practices for Smooth Customs Clearance

To reduce risk when shipping to Papua New Guinea:

• Prepare documents before cargo departs Australia

• Use consistent descriptions across all paperwork

• Confirm permit requirements in advance

• Budget for duty, GST, and inspections

• Work with freight forwarders experienced in PNG trade

For exporters unfamiliar with PNG, customs should be treated as a strategic risk, not an administrative task.

Final Note

Customs clearance in Papua New Guinea is procedural, document-heavy, and unforgiving of errors. Compliance is not optional—it directly determines delivery timelines and cost certainty.