PAPUA NEW GUINEA

EXCISE TARIFF (2007 BUDGET AMENDMENT) ACT 2006

No. 20 of 2006.

Excise Tariff (2007 Budget Amendment) Act 2006.

Certified on: 16. 05. 07

Excise Tariff (2007 Budget Amendment) Act 2006

ARRANGEMENT OF SECTIONS.

1. New Section 3A.

"3A. EXEMPTION FOR RAMU NICKEL PROJECT.".

2. Duties on Excise (Amendment of Schedule 1).
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AN ACT

entitled

Excise Tariff (2007 Budget Amendment) Act 2006,

Being an Act to amend the Excise Tariff Act (Chapter 107),

MADE by the National Parliament to come into operation –

(a) in respect of Section 1— on 10 August 2006; and

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

1. NEW SECTION 3A.

The Principal Act is amended by inserting after Section 3 the following new section:-

"3A EXEMPTION FOR RAMU NICKEL PROJECT.

"(1) In this section unless contrary intention appears –

"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 excise 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;

(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. DUTIES ON EXCISE (AMENDMENT OF SCHEDULE 1).

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 from 1/01/07	Remarks	
2403.10.60	"Coarse Shredded tobacco for Roll Your Own Cigarettes"	K29.18 Per Kg until 31/12/2007 then the rate applying to 2403.10.50 (Twist or trade tobacco)	The duty rate for tobacco (and alcohol) products is adjusted at 6 monthly intervals, on 31st of May and 30th November each year.

The adjustment is calculated by multiplying the duty rate then applicable, by the lesser of the Consumer Price Index (CPI) movement in the previous 6 month period, or 2.5%. The adjustment as calculated is added to the duty rate then applicable, to give the new duty rate. The new duty rate after each adjustment will replace the previous duty rate and will apply from the first day of the next month ie. from 1st June and 1st December,
	
2710.00.13	Aviation Gasoline (Av-Gas)	Free	From 1 January 2007
	
2710.19.40	"Pre-mixed Gasoline-oil fuel (eg Zoom)" from refinery gate or at the point of import.	K0.30 per Litre until 31/12/2007 then the rate applying to 2710.11.10 (Gasoline)		
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I hereby certify that the above is a fair print of the Excise Tariff (2007 Budget Amendment) Act 2006 which has been made by the National Parliament.

Clerk of the National Parliament.

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

Speaker of the National Parliament.