PNG Customs service

Vitis Industries Pays Fine

The penalty fees was for engaging in excise tax evasion practices on its premises.

Customs Chief Commissioner David Towe confirmed that the penalty has been settled in full and that Customs is now working with the company to provide tax compliance guidance and supervision.

The Chief Commissioner stated that the penalties paid consists of K2.476 million for not keeping proper records and accounts for 16,506 cartons of various alcohol products,  K113, 850 for not keeping proper records and accounts for 759 cartons of various cigarettes brands.

Vitis To Pay K2.59m Penalty Fee

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.

Successful Year for Customs

In his Christmas message, Chief Commissioner, David Towe said amid the challenges Customs faced, he is proud to announce that they have done well in border security, international trade facilitation and revenue collection for the State. 

“We faced major disruptions in our operation as we moved offices, our head office to Waigani and Port Moresby operations to Gordon industrial areas. Sadly, we lost our Commissioner for Trade & Corporate Services, late James Bire and few others along the way.

Illegal Imports Destroyed

The destruction exercise was carried out just outside Port Moresby in the presence of Customs Enforcement Officers, Police and NCDC’s (Food Sanitation) Health Officers. 

“Six containers in total, three 40ft and three 20ft, were seized from eight different importers for various breaches of the Customs Act relating to smuggling,  tax evasion offences and intellectual property rights infringements.

“The total tax value of all the cargo destroyed is over K30 million. These containers were seized between 2018 and 2020,” Customs Chief Commissioner, David Towe said.

Customs Recovers K2.6 million

The importer made a false declaration to Customs by grossly under-valuing the taxes payable and under-declaring the goods to Customs.

Customs Chief Commissioner David Towe said the amount recovered included K1,027,167.11 in Customs excise duties and taxes, a 100% penalty of K1,027,167.11 and a K542,344.33 in late penalty fee.

The importer was alleged to have lodged an entry for the importation of 1,864 cartons of soft drinks, water, cider beer and ready mixed alcoholic drinks. The Customs duty on these items totaled K48, 144.66, which the importer had paid.

Customs Revenue Slumps

A total of K890 million in taxes was collected in the first quarter of 2021 fiscal year.

PNG Customs Service Commissioner, David Towe revealed this, however, he did not reveal how much of a drop from the first quarter was made, but he said this slump is because of the drop in trade globally.

He said there is still the need to ensure compliance to help rectify this drop in revenue collection.

Customs clamps down on illegal goods

It’s estimated the products are worth K500,000 in import excise duty and GST.

PNG Customs Commissioner Ray Paul in a media conference revealed that the company of interest was spotted unpacking cartons of cigarettes and alcoholic products from a container into its premises on Wednesday, July 20.

Customs then conducted verifications with the shipping and customs database and found that the particular shipment was falsely declared to customs as building materials.

Customs than reacted quickly to secure the container and arrange for a search warrant.