Operational Business Process of PNG Customs to Facilitate Round Log Exports from Papua New Guinea

Abstract: Log exports play a significant role in Papua New Guinea's economy. Landowners receive compensation through royalties, and export levies on round log exports fund various initiatives to support areas affected by logging, financed by grants from the Forest Infrastructure Development Fund. Approximately 100 logging firms operate in Papua New Guinea, making it one of the countries with substantial log export volumes, with China accounting for 85% of these exports. PNG Customs, as the border agency, facilitates and processes log exports. Its responsibilities include ensuring border security, facilitating trade, collecting taxes, and protecting the community. PNG Customs ensures that all requirements are completed promptly before loading the logs for export. It manages the necessary export documentation to enable the loading of logs and acts as the designated authority to collect export taxes and levies for the State at the border. However, business fraud remains challenging, as some attempt to evade duty taxes. Line authorities collaborate through information sharing and other initiatives to correct errors and address system vulnerabilities. Keywords: Customs, Export, Fraud, Round Log, Taxes JEL Classification Number: F31, F41