THE Papua New Guinea Customs Service (PNGCS) has issued a strong warning to individuals and businesses involved in illegal importation and smuggling activities that Customs will employ all lawful measures to ensure offenders are brought to justice and face the full force of the law.
This warning follows a recent enforcement operation involving the seizure and subsequent destruction of a large quantity of illegally imported foreign brand cigarettes, estimated to have a a street value of approximately K3.54 million that had been deliberately concealed and falsely declared to evade Customs detection and duties.
The cigarettes, which were seized last year and destroyed recently, was estimated about K3.28 million in taxes that would have been evaded had Customs not intervened, representing a significant loss of revenue to the Government and creating an unfair advantage to law-abiding businesses in PNG that meet their tax obligations.
The illegal cargo, packed in a 20-foot container, was initially declared as tissue products last year, however, it was flagged for further scrutiny after Customs officers at the Customs Examination Facility at Motukea outside Port Moresby, identified irregularities in the x-ray imagery.
Upon examination, officers discovered that the consignment had been deliberately misdeclared and concealed using a “cover load” strategy.
Out of the 484 cartons declared in the container, a portion contained legitimate goods placed at the front, while the remainder concealed items intended for illegal commercial distribution. A detailed joint physical inspection by Customs and Police revealed that 130 cartons contained tissue paper used as a “cover load,” concealing a further 354 cartons of foreign-manufactured cigarettes.
The investigation also found that the shipment was part of an organised attempt to smuggle goods into the country while avoiding payment of lawful duties and taxes.
Meanwhile, a Chinese National has since been identified, arrested and charged in relation to this case with the assistance from Police and the Bank of Papua New Guinea’s Financial Analysis and Supervision Unit.
Chief Commissioner of Customs David Towe emphasized that smuggling and other border related illegal activities pose a very serious threat to the country’s economy, undermine national development through lost revenue and erode fair competition for companies that comply with the law and pay their taxes in PNG.
“PNG Customs does not tolerate non-compliance,” the Chief Commissioner stated. “Those who attempt to circumvent our laws must understand that enforcement actions will be taken, and they will face prosecution in accordance with the law.”
“Let this serve as a warning that if you engage in illegal or smuggling activities, the law will eventually catch up with you and you will face the full force of the law.”
The Chief Commissioner stated that protecting Government revenue remains one of the top priorities for Customs. He said revenue leakage through illegal trade directly affects the Government’s ability to deliver essential services to the people of Papua New Guinea, while also placing honest, tax compliant businesses at a serious disadvantage.
“Every kina lost through smuggling and illegal importation is revenue denied to the State”, the Chief Commissioner stated. “Our officers are committed to ensuring that all goods entering the country are properly declared and that the correct duties and taxes are paid.”
He said PNG Customs continues to strengthen its intelligence, surveillance, and enforcement functions, working closely with partner agencies to detect, deter, and disrupt illicit trade and transnational criminal activities.
The Chief Commissioner also commended the dedication and professionalism of Customs officers and partner agencies involved in the operation, highlighting their role in safeguarding the nation’s borders and upholding the law.
The eventual destruction of the seized items recently involved Customs enforcement officers working alongside Police and other relevant authorities.