The PNG Customs Service has issued a penalty notice to Vitis Industries Limited for failing to keep records and accounts for various alcohol products and cigarette brands.
The penalty fees include K2.476 million for no records and proper accounts of 16, 506 cartons of alcohol products and K113, 850 penalty for no records and accounts for 759 cartons of cigarette brands.
PNG Customs Service Commissioner, David Towe, said the penalty notices were issued for breaches under the Excise Act 1956.
“A total of K2.59 million in penalties have been raised to Vitis Industries Ltd for not keeping records and manufacturer’s books in breach of the law. The penalties must be paid to the state through Customs within 14-working days,” he said.
The alcohol manufacturing company, operating at 9 mile, Port Moresby failed to provide documents to Customs for storing the alcohol drinks in several non-approved and less secure storage facilities without notifying Customs.
In a brief response, a legal representative from Vitis Industries said the company notes the imposition of the penalty by the PNG Customs Service, the officer stated that the penalties have not been properly imposed and determined according to the same law.
“At this stage, the matter is at its preliminary stages and penalties imposed are subject to dispute under s. 90 of the Excise Act 1956,” the officer stated.
However, Mr Towe said under law all locally produced or imported alcohol and cigarettes must be registered and stored in an approved and certified bonded facility.
“It is normal practice for companies to manage their warehouse operation and comply with their tax obligations.
“However in this case, Customs have revoked the permission for voluntary compliance and have taken control of the supervision of the factory.”
He said while Customs supervise the operations, they would ensure every records for the finished goods are maintained and appropriate taxes are paid first before goods are released and sold to customers.
