The PNG Customs Service (PNGCS) recently conducted a series of monitoring visits to three oil facilities across Papua New Guinea in an effort to strengthen excise administration.
Chief Commissioner David Towe stated that a Customs team visited Ridge Camp Oil Refinery (Lagifu), Hides Plant and Gobe Plant in the Southern Highlands, Hela and Gulf Province respectively to verify licensing arrangements, assess volumes of fuel production and carry out scoping for upcoming Post Clearance Audits (PCA).
He said the visits were part of Customs official duties under the Excise Act, which the PNG Customs Service administers on behalf of the PNG Government.
He said Customs is responsible for ensuring compliance and collecting Excise Tax on locally manufactured and imported goods such as petroleum products (e.g., diesel and petrol), alcohol products and tobacco products.
“During this visit, the team’s specific focus was to verify diesel production volumes for excise duty compliance,” the Chief Commissioner stated.
He said strengthening excise administration is a key priority under the PNG Customs Corporate Plan 2024 – 2028. This
priority aims to boost revenue collection through improved excise administration and strategic enforcement.
“As part of our mandate, PNG Customs Service will ensure closer compliance monitoring going forward by working in partnership with our stakeholders to encourage greater voluntary compliance as we look at opportunities to increase the country’s revenue base,“ the Chief Commissioner added.
“We will also look at ways to support a visible and consistent Customs presence on-site at project locations and other operational areas to strengthen oversight and collaboration.”
In addition, the visit allowed the team to observe on-site operations – particularly the workforce, which is predominantly made up of Papua New Guineans.
Beyond the scale and complexity of operations, the Customs team were impressed by the fact that 80 percent of the workforce were Papua New Guineans.
“It’s encouraging to see our people contributing meaningfully to one of the country’s most vital industries, showcasing expertise, resilience, and pride in their work,” The Chief Commissioner added.
He said this reaffirms the importance of transparency, accountability and local capacity-building in PNG’s resource sector.