INVESTMENT and trade within Papua New Guinea’s Special Economic Zones (SEZs) are expected to become easier following a new agreement between the Special Economic Zones Authority (SEZA) and PNG Customs Service.
The two government agencies signed a Memorandum of Understanding (MoU) yesterday to improve customs clearance, trade compliance and the movement of goods within SEZs.
The agreement is aimed at supporting the Government’s push to use SEZs to attract investment, increase exports, create economic opportunities and promote industrial development in the country.
Under the agreement, SEZA and Customs will work together to introduce a One-Stop Customs Clearance system for businesses operating within SEZs.
They will also establish customs-controlled checkpoints to monitor the movement of goods and ensure businesses comply with national customs and trade laws.
The MoU also provides for duty-free and tax exemption arrangements for eligible SEZ businesses, as well as the development of bonded warehouses in line with customs requirements.
SEZA said the partnership would help reduce delays and bottlenecks in the movement of goods while improving transparency and accountability in SEZ operations.
The agencies will also work on integrating digital systems, including ASYCUDA World, to improve the sharing and processing of trade information.
The agreement is expected to strengthen border security and anti-smuggling measures while giving investors greater confidence to operate in Papua New Guinea.
SEZA said effective trade facilitation was important to its mandate under the SEZA Act 2019, which seeks to create a predictable and investor-friendly environment for economic activity.
To implement the agreement, SEZA and Customs will establish designated focal points and a Joint SEZ Customs Taskforce to coordinate activities and monitor progress.
The partnership is expected to support the development of SEZs as key areas for investment, trade and industrial growth in PNG.