PAPUA NEW GUINEA

CUSTOMS TARIFF (2007 BUDGET AMENDMENT) ACT 2006

No. 19 of 2006.

Customs Tariff (2007 Budget Amendment) Act 2006.

Certified on: 16. 05. 07

Customs Tariff (2007 Budget Amendment) Act 2006.

ARRANGEMENT OF SECTIONS.

1. New Section 9A.

"9A. EXEMPTION FOR RAMU NICKEL PROJECT".

2. Amendment to Schedule 1 — Rates of Import Duty.
3. Amendment of Schedule 2 — Rates of Export Duty.
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No.  of 2006.

AN ACT

entitled

Customs Tariff (2007 Budget Amendment) Act 2006,

Being an Act to amend the Customs Tariff Act 1990,

MADE by the National Parliament to come into operation ‑

(a) in respect of Section 1 – 10 August 2006: and

(b) in respect of the remainder of the Act – on 1 January 2007.

1. NEW SECTION 9A.

The Principal Act is amended by inserting immediately after Section 9 the following new section:–

"9A. EXEMPTION FOR RAMU NICKEL PROJECT.

"(1) In this section ‑

"Mining Development Contract – Ramu Nickel Project" means the Mining Development Contract – Ramu Nickel Project that was signed on 26 July 2000 by the Independent State of Papua New Guinea, Ramu Nickel Limited and Orogen Minerals (Ramu) Limited as amended by the Mining Development Contract Amendment Agreement Ramu Nickel Project that was signed on 10 August 2006 by the Independent State of Papua New Guinea, MCC Ramu NiCo Ltd, Ramu Nickel Limited, Mineral Resources Ramu Limited and Mineral Resources Madang Limited,

"commencement of the tax holiday", "consumables", "contractor," "joint venturer", "manager" and "project" have the same meanings respectively as in the Mining Development Contract – Ramu Nickel Project,

"Schedule II" means Schedule II of the Mining Development Contract – Ramu Nickel Project; 

"Schedule III" means Schedule III of the Mining Development Contract – Ramu Nickel Project;

"(2) Subject to Subsections (3) and (4), the following goods are exempt from customs duty:‑

(a) for the life of the project, all hydrocarbons products to be used or consumed as fuel for the project's powerhouse including without limitation, heavy oils, bunker C oils, furnace oils and diesel; and

(b) all goods and consumables to be used or consumed for or by the project and which are imported by or on behalf of the joint venturers or any of them or by the manager prior to the fifth anniversary of the commencement of the tax holiday.

"(3) This section does not apply in respect of goods and consumables specified in Schedule II.

"(4) The exemption under subsection (1) applies and extends to goods and consumables to be used or consumed for the project which are imported by the manager or by any contractor provided that the requirements of Schedule III are first satisfied whenever the benefit of this provision is claimed.".

2. AMENDMENT OF SCHEDULE 1— RATES OF IMPORT DUTY.

Schedule 1 of the Principal Act is amended by repealing the tariff item, description of goods, and rates of excise duty and remarks shown in the following and replacing them with the tariff item, description of goods, the rates of excise duty and remarks shown below:–
"

Tariff Item	Description of Goods	Duty Rate	Remarks	
0713.3	Beans	Free		
1604.14.10	Dark meat tuna	20%	From 1/01/07 to 31/12/07 then reverts to duty rate for tariff item 1604.14.00
	
1604.15.00	Mackerel	20%	From 1/01/06 to 31/12/2011
	
2005.51.00	Beans, shelled	25%	From 1/01/07 to 31/12/07 then zero rated.
	
2202.10.00	Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured
	25%	From 1/01107 to 31/12/07 than reverts back to duty rate of 15%	

3. AMENDMENT OF SCHEDULE 2 — RATES OF EXPORT DUTY.

Schedule 2 of the Principal Act is amended by repealing and replacing the progressive log export tax scale under export Item 44.03 with the following:–

Export Item	Description	Export tax/m3 equals	Remarks	
44.03	Plantation logs	Free	The export of unprocessed timber, being bals, blackbean, cordial, ebony, rosewood, teak and all conifers is banned	
	Sandal wood	15 per cent		
	Timber logs and poles in the rough, whether or not stripped of bark or sapwood, or roughly squared (i.e. not downstream processed eg, sawn timber), of all species (other than balsa, blackbean, cordia, ebony, rosewood, teak and all conifers the export of all of which is banned).
	28.5 per cent		
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I hereby certify that the above is a fair print of the Customs Tariff (2007 Budget Amendment) Act 2006 which has been made by the National Parliament.

Clerk of the National Parliament.

I hereby certify that the Customs Tariff (2007 Budget Amendment) Act 2006 was made by the National Parliament on 28 November 2006.

Speaker of the National Parliament.