Firm fined K2mil

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Customs Chief Commissioner David Towe

A COMPANY is expected to pay more than K2 million as penalty for allegedly evading tax after the PNG Customs found a false declaration of goods imported into the country. Customs Chief Commissioner David Towe said such importers (name withheld) would face hefty penalties if their activities breached the (amended) Customs Act 2020. Towe said they found alcoholic drinks inside a container instead of bottled water as was declared by the company. “The importer is 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 totalled K48,144.66,” Towe said. “However, when the container arrived at the Motukea International Terminal in February, it was put through the Customs container X-ray machine and officers detected discrepancies in the type of cargo displayed in the scan and the type of cargo listed in the entry.” They found that the container had 1,873 cartons of assorted alcohol in various quantities, with a Customs duty of K1,075,311.71.“The importer now has to pay the K1,075,311.71 in duty along with the 100 per cent penalty of K1,075,311.71,” he said.“The importer must pay to the State K2,150,623.42 before he can take delivery of the goods.” He said the importer would also be charged with smuggling, tax evasion and false declaration under the Customs Act. Towe said the importer was a repeat offender. The confiscated items will be kept for 30 days until the penalty is paid. Otherwise the items will be destroyed, he said.