State recoups K2.6mil

THE State has recovered more than K2.6million in taxes and penalty fees from an importer who allegedly tried to smuggle alcohol products into the country.
PNG Customs chief commissioner David Towe said the importer had made a false declaration to Customs by under-valuing taxes payable, and under-declaring the goods to Customs.
The amount recovered included:

• K1,027,167.11 in excise duties and taxes;
• a penalty fee of K1,027,167.11; and,
• a K542,344.33 late penalty fee.

“The importer had initially paid K48,144.60 in duty before the alleged illegal activity was detected by Customs,” he said.
“The K48,144.60 was paid for cargo initially declared, with the alcohol products omitted.”
Towe said, even after paying the fees and fines in full, the importer would still be prosecuted for contravening the Customs Act 2020 (amended).
The importer will face charges relating to the false declaration of goods to Customs, attempting to smuggle dutiable goods and attempting to evade paying taxes to the State.
The importer had allegedly lodged an entry for the importation of 1,864 cartons of soft drinks, water, cider beer and mixed alcoholic drinks. The duty totalled K48,144.66.
But when the container carrying the cargo arrived at the Motukea International Terminal in February and was put through the container x-ray machine, officers detected discrepancies in the type of cargo displayed in the scan and the type of cargo listed in the import entry.
Investigation found that the container was in fact carrying 1,873 cartons of assorted alcohol in various quantities, with an import excise duty value of K1,075,311.71.
Towe warned importers that they would face hefty penalties if they breached the Customs Act.