WT/TPR/M/387/Add.1  
5 July 2019  
(19-4499) Page: 1/46 
Trade Policy Review Body  
8 and 10 May 2019  Original: English/anglais/inglés  
 
  
TRADE POLICY REVIEW  
PAPUA NEW GUINEA 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Manuel A.J. Teehankee (Philippines)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Papua New Guinea .1 
 
 
Organe d'examen des politiques commerciales  
8 et 10 mai  2019  
EXAMEN DES POLITIQUE S COMMERCIALES  
PAPOUASIE -NOUVELLE -GUINÉE 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E. M. Manuel A.J. Teehankee (Philippines)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la 
Papouasie -Nouvelle -Guinée .1 
 
 
Órgano de Examen  de las Políticas Comerciales  
8 y 10 de mayo  de 2019  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
PAPUA NUEVA GUINEA 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Manuel A.J. Teehankee (Filipinas)  
En el presente documento figuran las preguntas presentadas anti cipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Papua  Nueva Guinea .1 
  
                                                
1 In English only./ En anglais seulement./En inglés solamente.  WT/TPR/M/38 7/Add.1  
 
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  Contents  
EUROPEAN UNION  ................................ ................................ ................................ ............  3 
UNITED STATES  ................................ ................................ ................................ ..............  12 
AUSTRALIA  ................................ ................................ ................................ .....................  17 
JAPAN  ................................ ................................ ................................ .............................  22 
CHINA  ................................ ................................ ................................ .............................  24 
ICELAND  ................................ ................................ ................................ .........................  32 
BRAZIL  ................................ ................................ ................................ ............................  33 
PHILIPPINES  ................................ ................................ ................................ ..................  34 
SEPARATE CUSTOMS TER RITORY OF TAIWAN, PENGHU, KI NMEN AND MATSU  ...............  38 
REPUBLIC OF KOREA  ................................ ................................ ................................ ....... 40 
CANADA  ................................ ................................ ................................ ..........................  42 
THAILAND  ................................ ................................ ................................ .......................  43 
INDONESIA  ................................ ................................ ................................ .....................  45 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
EUROPEAN UNION   
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
 
 Paragraph 3.47, page  39 
Question 1 
Does the PNG intend to 
implement  International Standard on 
Phytosanitary Measures, ISPM 32?  PNG currently implements International 
Standard on Phytosanitary Measures, ISPM 32.  
 Paragraph 3.49, page  39 
Question 2 
Does the PNG publish, or maintain, a 
list of the approved protocols for 
different products and countries, so 
that potential exports can have an 
idea of the applicable rules in a 
transparent way?  Yes, PNG maintains a list of approved protocols 
for different products and countries so the 
potential exporters have an  idea of the 
applicable rules in a transparent way.  This list 
is not currently published, but exporters can 
access it from the NAQIA Import Permit 
Section on request.  
 Paragraph 3.74, page  44 
Question 3 
Why does PNG request fees to 
register with customs? How the 
registration with customs works, and 
for what purpose?  PNGCS has amended and adopted under its 
Customs Prohibited Imports Regulation (CPIR), 
Border Measures under Articles 51 –61 of the 
TRIPS Agreement.  
 
Under Section 8 of the CPIR, a rights holder 
that wants to monitor and enforce his/her 
rights may file a recordation of IPR with the 
PNGCS. Recordation is for monitoring 
purposes, is free and valid up to 2 years.  
 
Under Section 9 of the CIPR, an Application to 
Intervene to suspend clearance of goods 
suspected of infringing IPR (in the 2-year 
period) shall attract a non -refundable fee of 
PGK 2000 (approximately USD 600). The fee 
represents the administrative cost of 
suspending clearance, i.e. to open/unload and 
inspect the goods to ascertain its validity. Due 
to manpower constraints, the 
unloa ding/loading/packing and unpacking is 
contracted to local businesses.  
 
This section further states that the 
Commissioner may determine a non -refundable 
fee which we accordingly apply as mentioned 
above.  
 Paragraph 3.74, page  44 
Question 4 
If and how PNG is considering 
overcoming this disincentive in order 
to encourage the right holders in the 
lodging of applications?  Since no such registration fee is charged by 
PNGCS, no such disincentive exists.  
 Paragraph 4.30, page  50 
Question 5 
Can PNG elaborate more  on the 
perceived erosion of the benefits and 
the relation to the GSP+ scheme: who 
are the competitors concerned ? Under the Pacific -EU Interim Economic 
Partnership Agreement, there is provision of 
duty free and quota free market access for PNG 
fisheries pr oducts (HS 1604: canned tuna) to 
the EU market.  This was perhaps the most 
important single reason that PNG signed this 
agreement.  
 
For members trading on an MFN basis, there is 
a 24% tariff at the EU border on canned tuna. 
However, the EU has granted GSP+ treatment 
to the Philippines, and formerly to Ecuador 
(prior to its joining the EU -Andean Community 
FTA), who are the main competit ors to PNG. WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
This has effectively eroded the 24% tariff on 
canned tuna from these competitors, thereby 
exposing PNG to competition from cheaper 
canned products from these countries which 
has threatened the survival of the six tuna 
processing plants and 10,0 00 direct and 
30,000  indirect jobs in PNG.  
 Paragraph 4.33, page  50 
Question 6 
Could PNG elaborate on this point: 
how does PNG intend to address the 
issue in the last phrase ( "notably, the 
lack of policy enforcement is resulting 
in the loss of millions of Kina in illegal 
or under -reported fishing activities ")? PNG intends to further legislate against IUU 
fishing by introducing an amendment to the 
current Fisheries Management Act  and 
regulations.  
 
A review is currently being undertaken by NFA 
to incorporate a specific definition of IUU 
fishing in the revised Fisheries Management Act 
and regulations.  
 
PNG has already introduced reforms to its 
policies especially in order to meet th e EU IUU 
Regulations as part of its market access 
requirements after receiving a yellow card in 
2015. Since the introduction of IUU reforms, 
the EU has removed the yellow card on PNG. 
The reforms include a review of our Monitoring, 
Control and Surveillance  regime, including the 
introduction of a Catch Documentation 
Scheme, Flag State Responsibility, Port State 
Measures, Real time Reporting using an 
Integrated Fisheries Management Information 
System (IFIMS), 100% observer coverage on 
all fishing vessels incl uding coverage on all 
transshipments, etc.  
 Paragraph 4.42, page  52 
Question 7 
For which activities or in which cases 
are special mining licences necessary?  A Special Mining Lease license is applicable 
under the Mining Act 1992 (Part V, Division 2) 
for large-scale mines that have considerable 
mineral deposits with economic value and that 
can be mined for up to 40 years (extendable 
under §36).  
 
The Mining Act is available from the MRA 
website ( http://www.mra.gov.pg/ ). 
 
Mining operations using special mining leases 
are typically highly mechanised, and state of 
the art technology is used to extract minerals.  
 
The quantity and quality of the mineral 
deposits are first determined through 
exploration activities by the hold er of an 
exploration licen ce permitted under the Mining 
Act 1992 (Part V, Division 1).  
 Paragraph 4.65 and Table  4.7, 
page  57 
Question 8 
Given the current market structure 
(utility and consumer base), how does 
the PNG authorities intend reach 
500MW of renewable energy by 2030 
and what would be the respective 
shares of biomass, hydro and other 
RES?  As per the MTDP III, the electricity indus try 
needs to be liberalized to encourage proper 
competition in transmission, generation and 
wholesale/retail. The Government 's priority will 
be on transmission infrastructure, while 
allowing for the private sector to compete in 
generation and retailing. Cr eation of a National 
Energy Authority and Electricity Regulation 
Commission is needed to facilitate and regulate 
these restructuring processes. Furthermore, a 
National Energy Policy needs to be formulated 
to ensure that these are implemented as a 
priority under MTDP III.  
 WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
In partnership with the private sector, energy 
development from renewable sources will be 
pursued, including geothermal, wind, and 
biomass. A considerable amount of investment 
will be required to produce energy and 
electricity generating capacity from these other 
sources where feasible, but importantly there is 
great potential because they can produce 
electricity at low cost. By 2030, around 2 5% of 
PNG's electricity needs will be generated from 
these renewable sources. In addition, biofuel s 
will be developed as a renewable energy 
alternative to fossil fuels for transport.  
 
Presently PNG Biomass in the Markham Valley 
has a 30MW nameplate project in early front 
end engineering design (FEED). An additional 
project in the Madang/Momase area wil l 
provide 15MW and is also in project feasibility. 
There are some exploratory programs being 
considered by New Britain Palm Oil in 
developing compressed natural gas as a bi -
product from their processing mills. 
Geothermal energy sources on Lihir island 
provide around 60MW of power to the mine 
site, reducing external power requirements. 
Various solar programs of differing scale and 
output are being proposed and considered.  
 
The National Energy Policy contains some 
information on the respective shares of the 
RES. It is very likely that hydro will form the 
majority, given existing and proposed projects.  
 Paragraph 4.117, page 66  
Question 9 
Ports operated by PNG Ports have 
generally low cargo processing costs, 
and the national shipping market is 
competitive. Ho wever, international 
shipping is among the most expensive 
in the Pacific region, with low levels of 
competition.  
Apart from the slow processing at 
ports, what are the main causes for 
the high prices and lack of 
competition in maritime transport?  PNG continues to operate a very open 
transport services market to encourage 
competition. If volume growth is not 
considered attractive enough to induce vessel 
calls to PNG, then we will continue to see an 
imbalance in supply and demand, and high 
international shipping costs.  
 
Given that cargo and vessel throughput 
performance has improved, notably with 
significant investment undertaken in maritime 
infrastructure, main ports now have 
appropriate gear capacity and congestion 
issues have reduced. These are recent 
improvements in PNG's main ports.  
 
It is anticipated that a combination of steady 
volume growth, driven by extractive industry 
projects coming on stream, together with 
improved maritime infrastructure, will induce 
additional vessel calls and shipping optio ns, 
that in turn will lead to more competitive 
pricing from shipping lines.    
 
There are ongoing discussions between the 
industry regulator and shipping lines to 
consider the regulated and non -regulated costs 
associated with import/export.  
 Table 4.14, pa ge 67  
Question 10 
Given the restricted domestic capacity 
and the objective of tripling the As per the MTDP III, the focus for the sector in 
the medium term will be on developing a sea 
transport system that is easily accessible by 
the rural maritime population. The country has WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
number of vessels operating on 
domestic routes, are there any plans 
to open up coastal shipping to foreign 
operators?  the potential to become a major transshipment 
hub in the Pacific and s erves as a crucial bridge 
between the growing Asian economies and the 
Pacific. In the medium term, the Government 
will continue to invest in programs that will 
realize the country 's potential as a 
transshipment hub. The four key programmes 
that will be imp lemented over the next five 
years are: (i) reforming the maritime sector; 
(ii) rehabilitating and upgrading major ports 
and their related facilities; (iii) rehabilitating 
and upgrading important strategic small 
wharves and jetties; and (iv) improving safet y 
and security on maritime transport systems.  
 
Questions based on the Report by Papua New Guinea - WT/TPR/ G/387  
 
 Paragraph 2.2, page  3 
Question 11 
Why does the government expect 
growth to rebound quickly despite the 
massive impact of the drought and 
earthquake and the declared time 
frame of recovery of four years?  In 2018, the economy is estimated to have 
expanded by 0. 3%, driven by the negative 
impact of the earthquake on production in the 
oil, gas, mining and quarrying sectors.  This will 
more than o ffset the increase in mining output 
outside the affected areas and the increased 
output in the non -mining sector, particularly in 
agriculture, forestry and fisheries, and the 
uplift at the end of the year associated with 
increased APEC activities.  
 
In 2019 , growth is expected to rebound to 
4.0%, reflecting:  
• the return to full production of oil, gas, 
mining and quarrying, after lower 
production in 2018 due to the earthquake,  
• increase in commodity prices,  
• commencement of new mining and 
petroleum projects, and  
• the resolution of forex supply shortages.  
 
Over the medium term (2020 –2023), growth is 
expected to be strong (at an average rate of 
5.0%) supported by the construction phase of 
the new mining and petroleum projects (Wafi 
Golpu , Papua LNG, PNG LNG Train 3 and 
P'nyang).  
 
The recovery work will largely focus on 
rebuilding and maintenance to infrastructure 
such as schools, aid posts and roads, etc 
damaged during the earthquake. Thus, 
rebuilding this infrastructure will directly 
increase economic activity.  
 Paragraph 2.4, page  3 
Question 12 
What measures have been taken by 
the Government to translate the act 
of hosting major international events 
into measurable achievements in the 
development of trade and attraction 
on investments?  The Medium Term Development Plan III 2018 –
2022 was drafted to capture the various 
activities that respective sectors are to 
undertake to drive development forward. This 
includes activities in trade and investment. The 
National Budget will also try to captu re some of 
the commitments made during APEC. All these 
will be monitored at various levels to track and 
measure the outcomes.  
 Paragraph 2.6, page  4 
Question 13 
Has there been any analysis of the 
impact on foreign currency flows this 
act of investing offs hore will have? It It is not true that the government is controlling 
the foreign exchange market.  
 
The foreign exchange market is made up of 
four banks and two non -bank authorized WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
is well documented in several 
economic reports that the PNG 
government has had to actively 
control foreign currency markets with 
several importers facing extended 
delays in paying for orders due to 
non-availability of and limits on 
foreign currency. While the recent 
successful issue of sovereign bonds 
has eased the demand for foreign 
currency, the huge backlog of those 
waiting for foreign currency has not 
been cleared. (see also Secretariat 
report on page 6, paragraph 4).  foreign exchange dealers (AFEDs). The Central 
Bank is a player in the market through its 
sporadic foreign exch ange interventions, and 
the kina exchange rate is determined through 
the interaction of importers and exporters via 
these AFEDs.  
 
There are several factors that have contributed 
to demand and supply conditions and hence 
impacted on foreign exchange liquidi ty. These 
include the global economic slowdown, oil price 
decline, domestic project development 
agreements (PDAs), natural disasters, fiscal 
deficits, infrastructural tax credit schemes and 
general behaviour of banks.  
 
These factors have mainly reduced the  supply 
of foreign exchange to the market or have 
increase demand for foreign currency.  
 
As a result, the market has not able to clear 
large orders on time for some time causing 
delays and the backlog of orders.  
 
In 2019, the foreign exchange backlog, defined 
as past due payments beyond three months, 
have decreased to around K300m from around 
K1.8 billion in the beginning of 2018. The 
clearance time for large orders has also 
significantly improved from 6 months to around 
2 months and gradually large outstanding 
dividends payments are now starting to be 
cleared.  
 
The following factors have contributed to these 
positive developments: good inflows as a result 
of the recovery in global commodity markets, 
BPNG 's strateg ic interventions, enforcement of 
foreign exchange regulations and compliance, 
and improved management of government 's 
fiscal expenditure.  
 
Improved sentiments in the economy also 
contributed to good inflows to the market; 
these include the inaugural sovere ign bond 
issuance, signing of the Papua LNG, and a 
stable outlook by a rating agency.  
 
The Bank also requested AFEDs to better 
allocate their dollar inflow to better serve their 
clients and not to ration foreign currency under 
the pretext of prioritizatio n now that the 
market has improved.  
 Paragraph 3.2, page  5 
Question 14 
Following development of StaRS  and 
its identification of 'certification' as 
one of the 8 policy instruments to 
bring about green growth, are there 
any specific measures in place to help 
PNG producers access niche markets 
overseas through adherence to 
voluntary sustainability standards (for 
example, UTZ certified, Fair Trade, 
Ethical Tea Initiative)?  PNG is in the process of consulting on a 
National Interpretation of the Roundtable on 
Sustainable Palm Oil (RSPO) Principles and 
Criteria, jointly with Solomon Islands.  The draft 
is availabl e from the RSPO website.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 Paragraph 4.1, page  5 
Question 15 
Could the government elaborate on 
what is meant by a trade policy that is 
fundamentally private -sector -led? Principle 4 of the National Trade Policy 2017 –
2032 elaborates the public and private se ctors' 
roles: "The primary role of Government is to 
provide oversight and coordination, of the 
required policy and regulatory framework for 
trade, and create the necessary enabling 
environment for an efficient and viable trading 
system. Government will als o be involved in 
strategic sectors of interest to PNG through PPP 
arrangements to promote public policy 
objectives.  The role of the private sector is 
primarily to spearhead trade -related activities 
within the national economy and export -led 
growth. " Trade policies have an impact on 
business and therefore the objective is to have 
more private sector inputs into policy making. 
This will be achieved through establishing 
platforms comprising public and private sector 
representatives under the NTO.  
 Paragraph 4.1, page  5 
Question 16 
How does the government view the 
objective of the policy to signal the 
country's openness in light of the 
moves recently to introduce 
limitations on foreign direct 
investments as proposed under the 
Foreign Investment Regulatory 
Authority bill?  The government views the proposed Foreign 
Investment Regulatory Authority bill as an 
improvement to its existing investment regime 
by adding further clarity and predictability to 
the rules and procedures governing foreign 
direct investment in t he country. The bill is 
being developed in consultation with relevant 
national stakeholders.  
 Paragraph 4.5, page  6 
Question 17 
Could the government elaborate on 
this, given that export subsidies are 
not allowed under WTO rules? 
Further, in the preceding  paragraph 
4.4 (page 6), it is reported that an 
evaluation report on the impact of 
trade following tariff liberalisation by 
PNG is yet to be done, so what is the 
basis of this preliminary analysis?  Papua New Guinea has never initiated a 
dispute within the WTO, largely due to its lack 
of the financial and technical resources 
necessary to do so.  The fact that export 
subsidies are not allowed under WTO rules 
therefore does not prevent such subsidies, 
when used by competitors, from harming the 
private sector in  PNG. In addition to export 
subsidies, the competitiveness of PNG industry 
is also harmed by the inability of the 
Government to subsidise energy to the same 
extent as many of its competitors.  There are, 
of course, many other factors in limiting PNG 's 
compe titiveness.  
 
The evaluation referred to in paragraph 4.4 will 
examine the impact of tariff liberalisation on 
trade and other important outcomes, not the 
impact of trade following tariff liberalisation.  
 
The preliminary analysis referred to is based on 
a comparison of the country 's legislation with 
that of comparable developing countries.  
 
This is an issue of unfair competition raised by 
the PNG private sector and thus the evaluation 
report should determine the causes of injury to 
domestic industry.  
 Paragraph 4.11, page  7 
Question 18 
There has been minimal change to 
PNG's Sanitary and Phytosanitary 
(SPS) regime (confirmed by the 
Secretariat Report on page 7, 
paragraph 15) so could PNG inform if The Government intends to notify any new SPS 
legislation to the WTO before it enters in to 
force.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
new legislation will be notified to 
WTO, before entering into  force?  
 Paragraph 4.13, page  7 
Question 19 
What will be the scope of this planned 
"bio-security " law? Will it be notified 
to the WTO?  The biosecurity law will have comprehensive 
coverage of biosecurity.  The Government 
intends to notify any new biosecurity law 
before it enters in to force.  
 Paragraph 4.14, page  7 
"A second priority is to continue to 
facilitate trade by improving online 
access to SPS approva ls." 
Question 20  
Does this refer to individual exporter 
information, or to import conditions 
for certain products and countries? Is 
there any such information available 
online?  This refers to individual exporter information, 
as subsequently explained in pa ragraph 4.14 
("the Authority is establishing an electronic 
process to apply for import permits, including 
online payment and approval "). Neither 
individual exporter information nor information 
on import conditions for certain products and 
countries is curr ently available online.  
 Paragraph 5.10, page  9 
Question 21 
In order to encourage sustainable 
management of forests and ensuring 
legality of forest operations the EU 
has adopted Forest Law Enforcement, 
Governance and Trade (FLEGT) Action 
Plan. EU Illegal  Tiber Regulation has 
been adopted requiring economic 
operators to demonstrate that timber 
products have been made with legally 
harvested timber. What is PNG's 
stance on FLEGT?  PNG supports global efforts to encourage 
sustainable forest management, combat illegal 
logging and promote legal forest products 
trade. PNG recognizes the EU FLEGT Action 
Plan, the FLEGT License, the Australian Illegal 
Logging Prohibition Act, the US Lacey Act and 
other timber trade regulations, legality 
verification schemes such as the Forest 
Stewardship Council 's (FSC) Sustainable 
Certification, the FSC Chain of Custody, the 
Program of for Endorsement of Forest 
Certification 's (PEFC) Sustainable Forest 
Management Certificate as well as the PEFC 
Chain of Custody.  The Government is no t ready 
to get a FLEGT License at this time, however it 
is working towards putting in place the 
fundamentals required to meet this standard in 
future. This work includes:  
• Development of PNG Timber Legality 
Standards. These set out the agreed 
definition of what constitutes legal timber 
sourced from PNG. (PNG as a member of 
the International Tropical Timber 
Organisation (ITTO) recognized ITTO 's 
definition on illegal logging which refers 
"removal of logs in a manner that is against 
the provisions of the releva nt laws of a 
particular country ".) This was done in 
collaboration with major forestry 
stakeholders, resource owners, government 
agencies, non -governmental organisations, 
academia and the private sector, and 
international organisations which included 
ITTO, EU-FAO and The Nature Conservancy 
(TNC).  
• Improving mapping systems in partnership 
with the Japanese International Cooperation 
Agency (JICA) and developing a centralized 
database (Decision Support System) which 
will collect, store and process forest data 
and information. These will complement the 
PNG Timber Legality Verification System 
(TLVS) which has also in been developed in 
Partnership with the FAO and other relevant 
stakeholders.  Challenges in establishing the 
centralized Database System and TLVS, and 
having a fully digital system include but are 
not limited to: (1) infrastructure availability WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
and reliability, i.e. having facilities with 
adequate storage, servers and network, 
network links from officers outside the Port 
Moresby head office and clients. ( 2) finding 
software developers that have adequate 
expertise to support and maximize progress 
of the system.  
 
Furthermore, PNG already has in place AUST -
PNG Country Specific Guidelines, which is a 
guide developed to assist both Australia -based 
importers of PNG forest products and exporters 
of PNG forest products to Australia, to ensure 
that legal forest products are sourced from 
PNG and mitigate the risk of illegal timber 
entering the market. PNG is also developing an 
APEC Timber Legality Guidance Template, 
which will also assist both buyers and 
exporters of PNG Forest products to identify 
legally sourced forest products.  
 Paragraph 5.13, page  10 
Question 22 
In 2020 is scheduled at the Western 
and Central Pacific Fisheries 
Commission (WCPFC) a discussion, 
and if possible the adoption, of 
Tropical Tunas catch limits and 
allocation in the high seas of the 
WCPFC Convention Area. In this 
framework, coastal States seem not 
to accept to open any discussion 
regarding fisheries and catches in 
EEZs that, in fact, represent about 
90% of the Tropical Tunas catches in 
the Western and Central Pacific. The 
sustainable conservation of the 
Tropical Tuna stocks can't be ensured  
and regulated by only addressing and 
adjusting, if necessary, a minor part 
of the catches. In addition, refusing to 
discuss current EEZ catches and 
allocations is discriminatory and not in 
line with the international law, 
particularly UNCLOS with regard t o 
cooperation on shared stocks 
management that should be an 
essential and indisputable principle to 
be followed by all nations involved in 
these fisheries. Moreover, the 
postponement of any decision on 
allocation in high -seas would imply 
additional time al lowing coastal States 
purse seine to operate in high -seas 
without any limitations, which might 
put in jeopardy Tropical Tunas stocks, 
notably by entailing stock falls below 
MSY levels.  
We would like to know if PNG has 
already reflected on this situation an d 
also know your position on this 
important issue?  PNG shares the EU 's interest in this very 
important issue.  However, consultation and 
reflection remain ongoing and the 
Government 's position has not yet been 
finalised.  
 Paragraph 5.13, page  10 
Question 23 
PNG is a key player in WCPFC, both 
as individual cooperating member PNG is actively considering options for 
improving information sharing and 
transparency among WCPFC CCMs.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
(CCM) and also as PNA member. In 
many instances, compatibility and 
compliance with WCPFC Conservation 
and Management Measures (CMMs) is 
linked to the implementation of the 
PNA 3rd implem enting agreement 
(3IA) without further details. It would 
be very helpful and would greatly 
improve the transparency of the 
process if more information could be 
provided in relation to the 
compatibility between relevant WCPFC 
provisions and the 3IA. Similar ly, 
there is very little information 
available in relation to the bilateral 
fisheries agreements under the vessel 
day scheme VDS which is not in line 
with international commitments.  
Would PNG be willing to contribute in 
further improving information sharin g 
and transparency among WCPFC 
CCMs?  
 Paragraph 5.26, page  12 
Question 24 
Could the PNG authorities elaborate 
on their understanding and plans in 
relation to third party access policy in 
the gas sector? What is the timeline 
for its introduction? Will the 
introduction of third -party access be 
accompanied by the effective 
privatisation of the PPL utility?  
 The Department of Petroleum together with the  
Gas Coordination office have started to the 
process of drafting a White Paper on Third 
Party Access (TPA). The consultation process 
has been completed and the White Paper is 
ready to be tabled in Cabinet.  
 
The main objective is the sharing of facilities 
and infrastructure with regard to the electricity 
market.  
 
  WT/TPR/M/38 7/Add.1  
 
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Member  Question  Response  
UNITED STATES   
Questions based on the Report  by the Secretariat - WT/TPR/S/387  
 
 3 TRADE POLICIES AND 
PRACTICES BY MEASURE  
3.1.1 Customs procedures, 
valuation, and requirements  
Page 30, Paragraph 3.5: The 
Secretariat Report notes PNG has 
notified its Category A commitments 
under the Trade Facilitation 
Agreement.  
1. When does PNG plan to notify its 
Categories B and C commitments?  An NEC Submission on TFA Categories B and C 
is currently with Cabinet for its endorsement 
and notification will follow thereafter.  
 Page 31, Paragraph 3.8:  The 
Secretariat Report notes that it is 
unclear what legal provisions on 
customs valuations are currently in 
force.  
2. Could PNG clarify which customs 
valuation laws or other relevant legal 
provisions are currently in place?  The Customs Act 1951 was amended in 1987. 
As a consequence of the amendment, 
Division  2 (Ad Valorem Duties) comprising 
Sections 95 –101 was repealed. The Customs 
(Ad Val orem Duties) Regulation was then 
enacted in 1987 to cater for the amendment to 
the Customs Act.  
 
Currently, PNG Customs is in the process of 
amending the Customs (Ad Valorem Duties) 
Regulation1987 to align with the general 
provisions of the GATT.  
 
Informat ion on currently applicable customs 
valuation rules are available from 
http://customs.gov.pg/trade -facilitation/tariff -
valuation/customs -valuation/   
 Also, PNG has not notified their 
national legislation or Checklist of 
issues to the WTO Committee on 
Customs Valuation.  
3. When does PNG plan to notify 
their national legislation to the WTO 
Committee on Customs Valuation?  Revision of customs legislation is c urrently in 
progress.  Customs legislation will therefore be 
notified once current revisions have been 
passed.  PNG expects that this will happen 
before the end of this year.  
 3.1.6 Import prohibitions, 
restrictions, and licensing  
Page 36, Paragraph 3.24:  The 
Secretariat report states that in 
January 2016, PNG's moratorium on 
the issuance of import permits for 
fresh foods, including fruit, 
vegetables, and uncooked poultry, 
was partially lifted.  
4. Which agricultural products 
remain ineligible to receive import 
permits?  There are no restrictions on import permits by 
agricultural product.  The only current 
restriction is a temporary biosecurity ban on 
uncooked poultry meat from Malaysia.  It is 
currently under review.  
 5. Does PNG have plans to lift the 
morator ium on the remaining 
ineligible products? If so, please 
provide details of the plans.  There are no remaining ineligible products 
(except for the temporary ban mentioned in 
the previous question).  
 6. Could PNG provide the scientific 
basis for classifying the products as a 
biosecurity risk, including any risk 
assessments?  All countries assign commodities certain levels 
of risk under which the commodity can be 
allowed access.  This is a recognized right for all 
countries under the SPS agreement.  PNG has 
determined its own Appropriate Level of 
Protection (ALOP), which is based on a 
qualitative approach. We do not think our ALOP 
is too trade restrictive.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 7. How does this align with market 
access commitments PNG made, 
particularly those in Article  4, 
Paragraph 2 of the Agreement on 
Agriculture?  Import permits are withheld only for 
biosecurity reasons and on a non -
discriminatory basis.  PNG does not issue 
discretionary import licences.  
 Page 36, Section 3.1.7: According 
to the report, a draft Anti -dumping 
and Countervailing Measures Act and 
a draft Safeguards Measures Act are 
undergoing legislative approval.  
8. What is the status of the 
legislative approval process for the 
various pieces of legislation 
referenced? What is the proposed 
framework?  This is a misstatement on our part. The draft 
bills are still undergoing domestic 
consultations.  
 Page 38, Paragraph 3.42:  We note 
the lack of TBT notifications by PNG.  
9. Is PNG planning on updating their 
notifications to make sure trade 
relevant technical regulations and 
conformity assessment procedures 
that are not based on international 
standards are notified to the WTO?  PNG intends to submit its outstanding TBT 
notific ations.  However, as noted in the 
Government Report (WT/TPR/G/387, see paras 
6.5, 6.6 and Annex), PNG faces administrative 
capacity constraints which limit the rate at 
which notifications can be submitted to the 
WTO.  The Government would welcome support 
from donors that would enable the country to 
fulfil its obligations in a more timely way and 
would welcome guidance from other Members 
as to which notifications are of most immediate 
value to ensure the process is prioritised 
domestically to provide the great est usefulness 
at the earliest opportunity.  
 3.3.1 Incentives  
Page 38, Paragraph 3.36:  The 
Secretariat Report notes that "PNG 
maintains a range of tax and tariff 
concessions under various initiatives 
aimed at promoting investment..." 
and that "[s]ome of t hese may be 
granted by industry, type of activity, 
or on a company -specific basis."  
10. Has PNG included any of these 
referenced initiatives and concessions 
in its subsidies notifications and, if so, 
please identify the programs and the 
notification.  PNG has been notifying Section 45B under 
Division 1A – Export Incentives of the Income 
Tax Act only.  This was most recently notified in 
G/SCM/N/284/PNG on 21st November 2017.  
 11. If these incentives have not been 
previously notified, could PNG explain 
if it intends to submit a notification 
under Article 25 of the SCM 
Agreement or explain why they are 
not subject to the notification 
requirements?  As noted in the Government Report 
(WT/TPR/G/387, see paras 6.5, 6.6 and 
Annex), PNG faces administrative capacity 
constraints which limit the rate at which 
notifications can be submitted to the WTO.  The 
Government would welcome support from 
donors that would enable the country to fulfil 
its obligations in a more timely way and would 
welcome guidance from other Members  as to 
which notifications are of most immediate 
value to ensure the process is prioritised 
domestically to provide the greatest usefulness 
at the earliest opportunity.  
 3.3.5 State trading, SOEs, and 
privatization  
Page 42, Paragraph 3.64:  The 
Secretariat 's Report states that PNG 
has not submitted any state trading 
enterprise notifications to the Working 
Party on State Trading Enterprises.  
12. Could PNG identify when such 
notifications will be made?  As noted in the Government Report 
(WT/TPR/G/387, see paras 6.5, 6.6 and 
Annex), PNG faces administrative capacity 
constraints which limit the rate at which 
notifications can be submitted to the WTO.  The 
Government would welcome support from 
donors that would enable the country to fulfil 
its obligations in a more t imely way and would 
welcome guidance from other Members as to WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
which notifications are of most immediate 
value to ensure the process is prioritised 
domestically to provide the greatest usefulness 
at the earliest opportunity.  
 3.3.7 Intellectual property ri ghts 
(IPRs)  
Page 44, Paragraph 3.71:  The 
report notes that PNG "authorities are 
aware of the need to review the 
current outdated laws, to take 
account of technological change and 
align them with international 
treaties."  
13. Could PNG provide information on 
any plans to join international treaties 
on IP, including but not limited to the 
WIPO Copyright Treaty (WCT), the 
WIPO Performances and Phonograms 
Treaty (WPPT), and the Marrakesh 
Treaty?  The Government is currently considering 
acceding to the following international treaties:  
1. Berne Convention  
2. Beijing Treaty on Audiovisual Performances  
3. WIPO Copyright Treaty  
4. WIPO Performances and Phonograms Treaty  
5. Marrakesh Treaty  
6. Madrid Protocol  
 Page 44, Paragraph 3.72:  The 
report states that "[n]o pro visions 
regarding collective management of 
such rights are contained in the 
legislation."  
14. What is the role of the Intellectual 
Property Office of PNG with regards to 
collective management for copyright 
in PNG?  The current Copyright and Neighbouring Rights  
Act 2000 does not have any provisions on 
collective management organisations (CMOs).  
An amendment to the Act has been drafted to 
cater for the establishment of CMOs, but it is 
yet to be finalised.  
 15. Are there any plans to include 
collective management provisions in 
copyright legislation in the near 
future? If so, please provide details of 
the plans.  The Government intends to include collective 
management provisions in future legislation 
but no detaile d plans are publicly available at 
this stage.  
 4 TRADE POLICIES BY SECTOR  
Page 51, Table 4.4: The report 
notes that PNG is considering raising 
license fees as part of its 
2030 targets/objectives for the 
domestic fisheries industry.  
16. Does the government of  PNG 
have a timeframe for when it plans to 
raise license fees for foreign -flagged 
vessels?  PNG has no firm timeframe for changes in 
licence fees.  
 17. Can PNG provide more 
information on how much it plans to 
raise license fees?  PNG has no detailed quantitativ e plan for 
increases in licence fees.  
 5 APPENDIX TABLES  
Table A2.1  
Page 77, Table A2.1: Tax 
Incentives, 2019: Table A2.1 of the 
Secretariat Report, under 
"Manufacturing Sector," shows an 
Export Sales Incentive program for 
qualifying export goods under the 
Income Tax Regulation (Regulation 
10A). This appears to be distinct from 
the Export Incentives under Income 
Tax Act Section 45B that PNG 
previously notified as having been 
repealed in 2015.  
18. Has PNG previously notified the 
Export Sales Incentive under I ncome 
Tax Regulation 10A in accordance The Government has not made any 
notifications that might be necessary regarding 
Export Sales Incentive under Income Tax 
Regulation 10A.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
with Article 25 of the SCM 
Agreement?  
 19. If the program has not been 
previously notified, could PNG explain 
if it intends to submit notification 
under Article 25 of the SCM 
Agreement or explain why it is not 
subject to the notification 
requirements?  The Government has not yet completed 
adequate analysis to determine whether the 
progra mme would need to be notified under 
Article 25 of the SCM Agreement.  The 
Government will submit any necessary 
notifications as soon it has the resources to 
conduct the necessary analytical and technical 
tasks.  
 20. Could PNG explain how it views 
this program in the context of the 
provisions under Article  3.1(a) of the 
SCM Agreement prohibiting subsidies 
contingent upon export performance?  The Government has not yet completed 
adequate analysis to determine whether the 
programme is compatible with Article 3.1(a)  of 
the SCM Agreement.  If the programme 
contravenes any provision of the SCM 
Agreement then the programme will be 
adapted to bring it into conformity with the 
Agreement.  
 
Questions based on the Report by Papua New Guinea - WT/TPR/ G/387  
 
 4 TRADE POLICIES  AND 
PRIORITIES  
4.1 Trade Policy  
Page 6, Paragraph 4.2: The Report 
notes that a new National Trade Office 
(NTO) will be created to coordinate 
and implement PNG's National Trade 
Policy.  
21. What is the current status 
regarding the establishment of the 
NTO?  The NTO has been established through a 
decision of the NEC, but is not yet operational. 
A structure has been approved but no funding 
was allocated for 2019. The relevant agencies 
are currently working to rectify the anomaly. It 
is hoped to be fully operati onalised by the end 
of the year.  
 Page 6, Paragraph 4.6: PNG notes 
that the Intellectual Property Office of 
PNG "is currently working on 
amendments to the existing legal 
framework, in order to eliminate 
remaining incompatibilities with TRIPS 
among other o bjectives."  
22. Could PNG explain in greater 
detail which aspects of the legal 
framework for IP are being amended 
and the timeline for completion of 
each law?  The Government intends to amend the 
Trademarks Act.  The Trademarks Act is the 
oldest of the IP laws a dministered by the IPO. 
Most provisions have been borrowed from the 
Australian Trademarks Act of 1955.  
 
The proposed amendments and inclusions 
include the following:  
- removal of the Part A and Part B 
requirements  
- further refinement of the Absolute and 
Relative grounds of registrations  
- inclusion of multiple class registrations  
- inclusion of collective marks  
- inclusion of certification marks  
- recognition of geographical indications  
- Madrid protocol provisions, in line with our 
intention to acceded t o Madrid Protocol . 
 
The amendment is expected to be completed 
by the end of 2020.  
 Page 7, Paragraph 4.12:  Paragraph 
4.12 notes that NAQIA sets import 
requirements based on risk 
assessments and international 
standards.  
23. Are NAQIA requirements and 
assessments available online? If so, 
where?  Neither NAQIA requirements nor assessments 
are currently available online.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 24. Could PNG provide clarification on 
risk assessment procedures related to 
plant health?  Import conditions are developed and set after 
an import risk assessment has been carried 
out. The import conditions are based on 
international standards in compliance with the 
IPPC, Codex, and the WTO SPS Agreement.  
 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
AUSTRALIA   
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
 
 2. Trade and Investment Regimes  
2.3 Trade Agreements and 
Arrangements  
2.3.3 Investment Regime  
Page 27, Paragraph 2.41  
The report states that PNG's FDI 
regime is generally open, and there 
were no significant changes to the 
investment regime during the review 
period.  
Question 1  
In January 2019, Minister for 
Commerce and Industry Hon Wera  
Mori MP gave notice to the PNG 
Parliament of his intention to 
introduce the Foreign Investment 
Regulatory Authority Bill 2018, which 
would ban foreign investment under 
PGK10 million and significantly 
expand the list of sectors reserved for 
PNG citizens. T hough the Bill has now 
been withdrawn, we understand that 
amendments to the Investment 
Promotions Act 1992 are currently 
underway. What is the scope of the 
amendments?  PNG aims to pursue a more liberal investment 
regime and recognizes the important 
contri bution that foreign investment makes in 
human and economic development. The 
Government is proposing changes that are 
designed to make it easier for responsible 
foreign investment while addressing some 
shortcomings in the regime that were being 
exploited by  a small number of foreign 
investors.  
The Government is therefore amending the 
Investment Promotion Act 1992 to institute 
most of the improvements. A small number of 
changes will be enacted through changes to 
existing administrative practices, such as entr y 
permits. Key changes are:  
1. Minimum investments for 
business/investor resident visas  – non-
citizen owners of foreign investments will be 
required to show a minimum investment in 
PNG in order to obtain a residency visa. 
This class of visa will also apply to  
overseas -headquartered foreign investors 
recruiting senior management staff for their 
PNG-based operations.  
2. Reserved activities for PNG citizens  – 
the IPA will continue to reserve activities for 
citizens under the Reserved Activities List 
and regularly r eview the list. This will be 
done in a transparent manner and changes 
will be publicly announced.  
3. Promotion of local -foreign partnerships  
– a new 'Restricted Activities List' will be 
introduced to encourage PNG citizen 
participation in larger, more comple x, 
and/or more capital -intensive businesses. 
Activities will be identified where foreign 
investment is allowed under certain 
conditions, which can include minimum local 
ownership and minimum investment levels.  
4. Grandfathering existing businesses – in 
cases where existing foreign investors are 
engaged in activities which later become 
reserved or restricted, they will receive 
limited grandfathering to provide some 
protection from the changes.  
5. Improved compliance and enforcement 
– government agencies will upgra de their 
compliance and enforcement capacity and 
activities.  
As part of the amendment, the Government 
also aims to streamline and expedite the 
foreign investment screening and certification 
process, to be on par with international best 
practices and provid e clearer rules indicating 
when applications will be accepted or rejected.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 3. Trade Policies and Practices by 
Measure  
3.1 Measures Directly Affecting 
Imports  
3.1.3 Tariffs  
Pages 31 -32, Paragraph 3.12  
The report states that PNG announced 
the suspension of  TRP's last phase in 
its 2018 National Budget pending a 
review by the Department of 
Treasury. However, in 2017 -18, the 
tariff rates on certain imports were 
already revised upwards, with a view 
to protecting domestic industry and 
discouraging unhealthy cons umption.  
Question 2  
Papua New Guinea's 2018 budget 
raised tariffs on around 250 lines and 
the 2019 budget continued tariff 
increases on over 70 lines, including 
on UHT milk and poultry. What 
measures were used for the tariff 
increases? Does Papua New Guinea 
intend to apply th e revised tariff on 
UHT milk?  The increase in the tariff on certain products 
was intended to improve domestic 
manufacturing sector competitiveness against 
cheap imported products.  
 
The revised rate applies to UHT milk.  
 Question 3  
Has the review by the Department of 
Treasury concluded?  The review has not commenced yet, for 
reasons given in the Government Report, 
paragraph 4.4 on page 6.  
 3. Trade Policies and Practices by 
Measure  
3.1 Measures Directly Affecting 
Imports  
3.1.3 Tari ffs 
3.1.3.12 Tariff Reduction 
Programme  
Page 31, Paragraph 3.12  
The report states that, in the 2018 
National Budget, the authorities 
announced the suspension of the 
TRP's last phase, pending a review by 
the Department of Treasury as to 
whether greater exposure to 
international competition had indeed 
fostered a more efficient and 
productive pr ivate sector. In 2017 -18, 
the tariff rates on certain imports 
were already revised upwards, with a 
view to protecting domestic 
manufacturers and the local oil 
refinery, and discouraging the 
consumption of goods that may pose 
significant health risks.  
Ques tion 4  
The Papua New Guinea (PNG) 2019 
Budget set out over 70 changes to 
tariff lines, the vast majority 
increases in tariff rates of 5 – 25%. 
Australia is interested in Papua New 
Guinea's explanation for the increase 
in these tariff rates, particularly fo r 
Chapter 73 – Articles of Iron or Steel. 
The tariff changes revise upwards the 
tariffs for steel products that are 
important inputs into steel structure There has been an increase from 10% to 15% 
on the  bridges and bridge sections 
(7308.10.00). The rationale for this change is 
to maintain consistency on the tariff rates 
applied with other similar items under 7308.10 
for ease of administration. Also bridges and 
bridge sections are produced locally.  
 
There  has been an increase from 15% to 25% 
for angles, profiles perforated, prepared for use 
in the assembly of metal structure 
(7308.90.10) and other (7308.90.90). The 
rationale for this change is to make this rate 
consistent with the other amendments to 
ensur e the desired applied tariff for prefab 
(25%) is applied as per 7301.20.09, etc.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
manufacture. What is the reason for 
these increases?  
 4. Trade Policies and Practices by 
Sector  
4.1 Agriculture, Forestry, and 
Fisheries  
4.1.3 Fisheries  
Page 50, Paragraph 4.33  
The report states that Table 4.4 
provides some of the key fisheries 
targets to be attained by 2030. 
According to the authorities, to 
achieve these targets, maritime 
surveillance capacities need to be 
enhanced to oversee the sector; 
notably, the lack of policy 
enforcement is resulting in the loss of 
millio ns of Kina in illegal or under -
reported fishing activities. Research, 
extension services and marketing 
capacities also need to be developed 
to support the industry in managing 
risks and in providing direction.  
Question 5  
Could PNG tell us what it is doing to 
enhance maritime surveillance 
capacities to meet its 2030  fisheries 
targets?  A comprehensive review of the Fisheries 
Management Act is currently being undertaken 
to ensure the Act is responsive to current 
regional and international fisheries dynamics. 
This will include strengthening of penalties for 
repeat offenders.  
 
PNG has already introduced reforms to its 
policies especially in order to meet the EU IUU 
Regulations as part of its market access 
requirements after receiving a yellow card in 
2015. Since the introduction of IUU reforms, 
the EU has removed the yellow card on PNG. 
The reforms include a review of our Monitoring, 
Control and Surveillance regime, including the 
introduction of a Catch Documentation 
Scheme, Flag State Responsibility, Port State 
Measures, Real time Reporting using an 
Integrated Fisheries Management Information 
System (IFIMS), 100% observer coverage on 
all fishing vessels including coverage on all 
transshipments, etc.  
 
PNG works very closely with the region through 
the Forum Fisheri es Agency and its partners, 
including Australia, New Zealand, the US and 
France to conduct joint regional surveillance 
operations throughout the year.  
 
Questions based on the Report by Papua New Guinea - WT/TPR/G/387  
 
 5. SECTORAL TRADE POLICIES  
5.5 Services  
Page 11, paragraph 5.20  
The PNG Government's report notes 
the international cable is being funded 
by three governments and will 
improve access to services and help 
to lower cost of telecommunications 
services. It notes the need for 
adequate regula tion as well as 
investment to ensure the country 
benefits from the new cable 
connection.  
Question 6  
Can PNG outline the measures it will 
undertake to ensure that State Owned 
Enterprises (SOEs) will not unfairly 
benefit from the CS2 and other cross 
ownership arrangements to maximise 
the economic benefit of the cable?  There are two important measures currently in 
place or being undertaken, one policy and one 
regulatory measure.  
 
Policy Measure:  
The Government's core polices, and regu lations 
are centred around achieving the two 
important goals of universal access to ICT 
services and that these services are affordable 
to consumers. NICTA continues to play the 
pivotal role as the sector's regulator to 
promote policies and regulations tha t enhance 
competition, encourage investment and close 
the digital divide that is prevalent today in 
PNG. Kumul Telikom Holdings Ltd (KTH), the 
holding company of Telikom PNG, DataCo PNG, 
and bmobile -Vodafone, is the new fixed line, 
backbone carrier, mobile  and ISP SOE that 
competes at the retail end with other private 
telco companies such as Digicel PNG. Current 
ICT law and regulation, notably the recent 
"Wholesale Service Declaration No. 1 of 2018", 
requires DataCo, the backbone carrier, to non -
discriminat orily offer wholesale services on the 
CS2 to all ICT operators, thereby levelling the 
playing field at the wholesale end and spurring 
competition at the retail end of the market. 
This should significantly minimize the 
opportunity for Government SOEs to unf airly 
benefit from the CS2 cable, and will maximizing 
its economic benefits  
 WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
Regulatory Measure:  
The Wholesale Services Declaration No. 1 of 
2018 requires the SOE DataCo (who manages 
the Government's share in the CS2 cable) to 
allow open and non -discrimina tory access to 
the capacity on the cable based on the 
principles of cost -based pricing and any -to-any 
connectivity.  
 5. SECTORAL TRADE POLICIES  
5.5 Services  
Page 11, paragraphs 5.21 - 5.22 
5.21. The National Information and 
Communications Technology Authority 
(NICTA) is the statutory ICT 
regulatory authority, and selectively 
regulates competition and pricing in 
the market. The Authority recognizes 
that adequate regulation is just as 
important as investment to ensure 
that businesses and consumers fully  
benefit from improved services and 
lower costs as a result of the new 
connection. Another Government 
priority is to improve connectivity 
within the country, a considerable 
challenge given PNG's mountainous 
terrain and 600 islands. The next step 
will be to  construct a coastal 
submarine cable to connect major 
coastal population centres to the 
capital.  
5.22. The Government is currently 
preparing e -commerce legislation to 
create an enabling environment for 
business, with the intention to accede 
to the UN Econo mic and Social 
Commission for Asia and the Pacific 
(UNESCAP) Framework Agreement on 
Cross -border Paperless Trade. This 
will contribute to the creation of the 
country's single window, in line with 
Article 10.4 of the Trade Facilitation 
Agreement (TFA).  
Question 7  
Noting PNG's objective to achieve a 
modern and affordable ICT that 
reaches all parts of the country, can 
PNG outline the regulatory market 
reforms that it is proposing to achieve 
this objective?  The National ICT Policy 2008 and the "Phase 
Two" pol icy reforms in 2009 initially paved the 
way for open markets and introduced 
competition into the ICT market.  
NICTA continues to make regulations and 
instruments in line with government policy 
objectives. Some specific reforms include 
instituting a horizon tally structured licensing 
regime that promotes new market entry, 
declaration for the supply of certain wholesale 
services, and making available limited 
resources such as spectrum and numbering on 
a fair and non -discriminatory basis.  
The fundamental ICT po licies of Competition in 
the ICT Sector, and the Universal Access 
Service scheme (UAS) are the bedrock for 
achieving this objective – these will continue.  
A new UAS Strategic plan 2018 –2022, aligned 
to the national Medium Term Development Plan 
2018–2022, s hould channel further private 
sector investment into telecom/ICT 
infrastructure development in the country, 
extending the reach of ICT services.  
The Government decision to restructure SOEs, 
enabling the structural separation of wholesale 
carriage services from retail, essentially 
improves their competitiveness at the two ends 
of the market. This in turn will lead to higher 
levels of affordability and accessibility in an 
effective and competitive market environment.  
 Question 8  
The mobile market in PNG appears to 
play an important role in delivering 
connectivity for communities. Are 
there measures planned to improve 
competition in the mobile market? Is 
the Government considering further 
public sector investment in this 
regard, or  are their plans for full or 
partial privatization of 
telecommunications State -Owned 
Enterprises?  The digital mobile market in PNG has 
undoubtedly been the game changer for 
delivering connectivity to about 50% of the 
population. This has come about primar ily due 
to competition in the mobile market.  
The regulator (NICTA) has contemplated the 
potential benefits of a 3rd major operator that 
could improve competition, but whilst NICTA 
would accommodate a 3rd operator there has 
not been significant interest fro m the market. 
There are a few firms with potential interest, 
but they face barriers to entry, especially in 
terms of infrastructure roll -out as currently 
there are no infrastructure -sharing regulations.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
The Government continues to invest in SOEs, 
and hopef ully with reforms to consolidate retail 
business activities, will create a viable 
competitor in KTH.  
The Government has no plans for full or partial 
privatization of SOEs, as significant access 
gaps remain  and private investment lacks the 
business incentive to extend connectivity to 
uneconomic or non -profitable areas. 
Government intervention through SOEs is 
therefore necessary for the time being.  
 Question 9  
Noting the ad valorem  levy used to 
fund PNG's te lecoms Universal Access 
Scheme, does PNG have any other 
plans to introduce funding 
mechanisms for ICTs?  
 The MTDP III spells out some of the initiatives 
to be undertaken in the medium term. This 
includes initiatives such as investing in rural 
communication, IGIS, national broadband 
network amongst others.  
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
JAPAN    
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
 
 3 TRADE POLICIES AND 
PRACTICES BY MEASURE  
3.2 Measures Directly Affecting 
Exports  
3.2.3 Export prohibitions, 
restrictions, and licensing  
Question 1 , Paragraph 3.31, 
page  37 
According to the report by the 
Secretariat, a ban on exports of round 
logs is scheduled to come into effect 
in 2020. Please provide the detailed 
information regarding a ban on 
exports of round logs.  PNG is committed to developing a thriving 
economy, a fair and happy society, and a 
sustainable environment as set out in our 
Vision 2050, and to be achieved through the 
implementation of the Development Strategic 
Plan 2010 -2030 and the various Medium Term 
Development Plans. Currently over 80% or 
3 million cubic meters of PNG's total annual log 
production are being exported to the Chinese, 
Korean, Japanese and other Asian markets. Of 
the remaining 20%, most is being processed 
onshore for domestic consumption, with a 
relatively small amount exported as sawn 
timber, plywood and other wood products. This 
project's objective is to reverse this situation.  
Although there is a policy to ban log export by 
2020, the government  is taking gradual steps 
in decreasing the exports of natural logs and 
increasing the onshore processing to 80%. This 
will hopefully eventually lead to a maybe 100% 
ban on log export.  
 
The gradual steps taken at this stage include:  
(1) Using the routine projec t review process, 
reviewing existing timber project 
agreements (Timber Permits) and 
increasing their (sawmill) domestic or 
onshore processing quota and decreasing 
their log export quota;  
(2) Zero export tariffs on all processed wood 
products;  
(3) Ban of export of some high -value species in 
log form;  
(4) Have regular monitoring and inspections of 
wood products, sawmilling facilities, log 
storage ponds, treatment plants, kiln 
dryers, and timber and other wood products 
storage areas to ensure that standards are 
adhered to ; 
(5) Producing wood samples and testing to 
determine the mechanical properties of PNG 
wood species either for individual timber 
project sites or generally (ACIAR project in 
partnership with Papua New Guinea and the 
Pacific Island Project).  
 
Significant challenges to this work include 
having in place adequate service infrastructure 
such as water, roads and electricity to support 
processing.  
 4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Financial services  
Question 2 Paragraph 4.92, 
page  61-62 
According to the report by the 
Secretariat (p. 61), 'Only PNG -
incorporated entities may hold a bank 
licence, i.e. foreign branches are not A corporate body incorporated in PNG  can 
apply for a banking business licence and if 
approved, hold a banking licence.  
 
A foreign branch cannot hold a banking licence.  
 
Whilst BPNG does not issue banking licenses to 
foreign branches, foreign entities can still 
operate wholly owned subsidiar ies in PNG, but WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
allowed'. While PNG's GATS schedule 
of specific commitments does not 
prohibit foreign branches to hold a 
bank licence  in its horizontal 
commitments and 7.  FINANCIAL 
SERVICES B. Banking and other 
financial services (excluding 
insurance) commits to open mode 3, 
isn't the above -mentioned practice 
contradicting to those PNG's 
commitments?  these have to be locally incorporated legal 
entities given their economic interest to 
operate on an ongoing basis in PNG.  
 
The above requirement is intended to ensure 
effective regulation and supervision of banking 
institutions. For instanc e, foreign branches 
would usually not hold capital onshore, which is 
the cushion for unexpected losses and this 
protects PNG depositors. Similarly, BPNG's 
ability to take control of a foreign branch 
through statutory management or in order to 
remove unfit board directors can be limited 
legally in view of their offshore location.  
 
For more information refer to the following 
Bank of PNG website for:  
1. Banks and Financial Institutions Act 2000  
https://www.bankpng.gov.pg/wp -
content/uploads/2014/06/banks__fin_institutio
ns_act1.pdf  
2. Authorized Deposit -Taking Institutions;  
https://www.b ankpng.gov.pg/financial -
system/superannuation/  
3. Licensed Financial Institutions;  
https://www.bankpng.gov.pg/financial -
system/licensed -financial -institutions/  
 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
CHINA    
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
 
 Page  7, Para 10  
PNG's applied MFN tariff is now based 
on HS2017, with a simple average 
(excluding non -ad valorem rates) of 
3.9%, down from 5.1% in 2010.  
Page  8, Para  19 
Agricultural policy relies on a self -
sufficiency -driven notion of food 
security using high tariff barriers at 
the border for the targeted products 
(e.g. pork, poultry, sugar).  
Question ： 
1. Please explain the specific 
practices and reasons for 
implementing high tariff barriers at 
the border.   PNG's agriculture sector is largely dominated 
by small growers supplying to major wholesale 
distributors and/or selling their produce at local 
wet markets to generate income. This type of 
activities cre ates employment, and sustains 
livelihoods for about 60 % of PNG's population 
living in rural areas.  
 
Import tariffs are the main trade policy 
instrument to help local farmers compete 
against cheaper imports given that PNG lacks 
the financial capacity to ad equately assist its 
local farmers using domestic support 
programmes.  
 
Amendments to import tariffs are done as part 
of the national budgetary process. 
Amendments to import tariff rates are usually 
made at the request of local industry 
representatives to the Department of Treasury . 
 Page 8, Para 22  
Since 2014 -15, the development of 
LNG projects has propelled the gas 
industry to become the key driver of 
economic growth. Nonetheless, LNG 
output has mostly been used to repay 
project -related debt and has 
generated little employment or 
additional government revenues. Oil 
reserves are projected to be depleted 
by 2026 unless new discoveries are 
made. Mining remains an important 
contributor to the economy but very 
limited processing takes place in PNG 
and more cou ld be done to encourage 
further value addition and 
downstream processing onshore to 
create jobs. Although the sector has 
been opened to private participation, 
electricity supply remains unreliable 
and very expensive for the quality of 
service, thus raising  the costs of 
doing business in PNG.  
Question ： 
2. Please introduce the development 
plan of the energy and mineral 
industries, as well as the progress 
made in national grid financing and 
construction in PNG.  For the energy sector, the MTDP III spells out 
the following strategies. These strategies 
are accompanied by the five -year 
investment plan that should address 
accessibility and reliability of energy needs 
in the country. Note that the MTDP III 
integrates the priorities of the Energy Policy 
as well:  
- Formu late the National Energy Policy and 
regulatory framework  
- Create a regulatory framework for 
electricity supply and distribution  
- Introduce specific sustainable energy 
policies  
- Increase investment in sustainable energy 
supply options  
- Improve power tra nsmission lines and 
infrastructure to reduce loss of power 
supply  
- Encourage Domestic Market Obligation – to 
lead to greater use of gas to generate 
electricity domestically.  
 
For minerals, the following are the 
Government's main strategies. These are also  
accompanied by the five -year investment plan:  
- Provide the enabling environment for the 
development of new mining projects  
- Provide a regulatory and policy framework 
that is both simple and effective to keep 
industry compliance costs to a minimum to 
protect the environment and to ensure 
landowners and other stakeholders benefit  
- Facilitate further exploration by simplifying 
and speeding up regulatory procedures  
- Strengthen the capacity of state institutions 
to administer and enforce mining 
regulations to ensure the Government's 
policy is implemented effectively  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
- Promote an integrated approach to mine 
development rather than a n enclave 
approach  
- Develop and review appropriate 
mechanisms to address landowners' 
participation and industry issues  
- Pursue strategies for manufacturing and 
SME formation and development that 
encourage downstream processing to add 
value  
 Page 11, Para 1.7  
A major economic challenge 
confronting PNG at the time, which 
had wide trade policy implications, 
was how to manage the "Dutch 
disease" effects of the kina's 
appreciation. It was feared that the 
substantial foreign direct investment 
(FDI) inflows from liquefied natural 
gas (LNG) and other projects from the 
expected mining boom would reduce 
competitiveness in the non -mining 
sectors and might accentuate the 
economy's "dualistic" or "two -speed" 
nature.  
Page 13, Para 1.7  
During the review period, PNG's  
merchandise exports almost doubled 
from USD 5.5 billion in 2012 to USD 
9.9 billion in 2017, driven by a surge 
in exports of mineral fuels and oils, 
mostly LNG (28.9% of total 
merchandise exports in 2017). As a 
result, the export structure shifted 
drastica lly, with mineral products 
accounting for about half of total 
merchandise exports, compared with 
the 17.3% share in 2012 (Chart 1.2 
and Table A1.1). Other top export 
products are precious stones and 
metals (23.2% in 2017), followed by 
palm oil, transport e quipment, wood 
and articles of wood, and coffee.  
Question ： 
3. With a comparison of the above 
two paragraphs, does it mean that 
PNG has not addressed the "Dutch 
disease", and that there are still 
"dualistic" or "two -speed nature" 
problems?  The Government recognises that significant 
challenges remain in managing the cyclical 
nature of investment and its effects on the 
currency. Among the measures that the 
Government is putting in place to better 
manage the effects of these flows is the 
creation of a Soverei gn Wealth Fund.  
 4. PNG has adopted measures such 
as integrating state -ownership. Is 
there any evidence proving that it is 
the way to solve these problems?  KCH is examining ways of expanding national 
content activity to ensure a wider spread of 
benefit from extractive industry construction 
and production programs.  
 Question ： 
5. The goal of PNG is to provide 
fewer mining products in the global 
market. Will it likely affect the 
liberalization of investment on global 
resource?  We seek further clarification from Ch ina on this 
question.  
 6. From the results it can be seen, 
after nearly a decade of implementing 
the strategy, mining still takes up a 
large share in PNG. Does it mean that The Government recognises that much work is 
still to be done in implementing policies that 
will achieve adequate diversification of the 
economy.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
the strategy is not implemented 
ideally enough?  
 7. What measures have PNG taken to 
achieve industrial upgrading and 
transformation?  The main competitiveness challenges that PNG 
industry faces rela te to low labour productivity 
and expensive, unreliable or unavailable 
infrastructure services. In the medium term, 
these are the main constraints that must be 
addressed in order to boost manufacturing 
growth and employment, to meet the 
Government's target  of doubling the sector's 
contribution to GDP between 2017 and 2025.  
 
The DSP sets out at a high level the 
Government's plans for improving productivity 
(§§4.6 and 4.7) and infrastructure delivery 
(§§4.8–4.11).  
 8. Is it possible for PNG to acquire 
fair returns through appropriate 
resources and social, economic and 
environmental policies, rather than 
reducing the share?  We seek further clarification from China on this 
question.  
 Page 28, Para 2.42  
For example, the Government can 
take equity of up to 30% in mining 
development projects (Mining 
Act,1992) and 22.5% in petroleum 
projects (Oil and Gas Act, 1998). If it 
elects not to, and there is 100% 
foreign equity, 2% will be negotiated 
for the landowners' benefit 
(negotiated at 7% for the LNG 
project).  
Quest ion： 
9. How to calculate the government's 
share in mining and oil and gas 
projects?  For mining projects, the State has the option to 
purchase up to 30% of the equity of the 
project. Of that option of 30%, 5% is allocated 
to the project's host province, includ ing the 
provincial government, local level government 
and the locally impacted landowners. The 
distribution mechanism is determined during 
the consultation and negotiation process, 
including development forums and memoranda 
of agreement.  
 
Apart from the St ate's equity interests, the 
State is entitled to the following fiscal 
entitlements in accordance with the Mining Act 
1992 and other relevant legislation:  
• Corporate income tax – 30% 
• GST – 0% 
• Excise duty – exempted  
• Import duty – exempted  
• Mining levy – 0.5% from the project's 
revenue (excluding penalty, FOB cost). The 
amount is paid to the Mineral Resources 
Authority.  
• Tax holidays for start -up projects will not be 
considered any more by the Government.  
 
The impacted landowners are entitled to a 2% 
royalty ded ucted from the project's revenue 
from net smelter return or free on board (FOB) 
(excluding penalty, FOB cost).  
 
In Petroleum, the Government share is 
calculated as a percentage of the invested 
amount of the total Gas Project Cost.  
 10. How to ensure that a fair and just 
approach is taken in calculating the 
government's share in the projects?  PNG has one of the most equitable benefit -
sharing mechanisms in the world. It involves 
the landowners, local -level government, 
provinces and the National Government to 
negotiate for these benefits.  
 Page  29, Para 2.46  
Foreigners may lease government -
owned land, usually for 99 years, for 
specified purposes, e.g. residential, 
business or for "special purposes". All Government Land in PNG is pre -categorised 
and assessed prior to marketing and making it 
available for the public to tender. Those who 
win the tender pay the rent that has been 
assessed and fixed before advertising or WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
leasehold and freehold land is 
registered, and leasehold land is 
transferable. The Government has 
tried to reduce land tenure problems 
by forming industrial and rural 
development centres and free -trade 
zones to grant leasehold land to 
exporters.  
Question ： 
11. How to calculate the rents paid by 
foreign nationals in renting the land 
owned by PNG government?  making it available. For residential leases, 
there are three categories which are High 
Covenant, Medium Covenant and Low 
covenant. Rent is charged in that category – 
from high to Low respectively.  
Business Leases and Industrial Leases again 
vary with business leases paying lower than 
industrial leases. Again, how much rent is 
payable in each category of lease is also 
determined by the amount of land captured in 
each parcel (allotment).  
Special purp ose leases are supposedly for the 
purpose of providing public services so their 
rent ranges from free to some degree of rent 
payable if it is used to spin profit.  
So all lessees pay what rental has been fixed. 
Both foreigners and Nationals pay what has 
been fixed. There is no extra cost for 
foreigners.  
 12. What is the rent payment method 
(on an annual basis or in a lump 
sum)?  Land Rent is payable annually. All rent is 
payable by January 1st each year. Any time 
later is late and can draw arrears or extra 
charges.  
Payment is strictly by EFTPOS at the Lands 
Department cash office. No cash is received. If 
lessee has cash, they are advised to deposit 
the cash into the National Governments 
Consoli dated Revenue Account at any bank. 
Deposit slip is to be presented to Lands 
Department to raise an official receipt.  
In the provinces, payment can be directly 
deposited into the Consolidated Revenue 
Account or paid to the Provincial Cash Offices. 
Receipts  or deposit slips presented at the 
Provincial Lands Office who will make copies 
and forward to Lands Headquarters for official 
receipting.  
The Consolidated Revenue Account Number 
can be taken from the Department of Lands 
Cash Office at Waigani (Eda Tano H aus). 
 13. Please explain in detail the 
"special purpose" for which foreigners 
may lease government -owned land 
usually for 99 years.  Special Purpose Leases are designed for 
provision of Public Services like churches, 
schools, play grounds, parks or disability  centre 
etc. So long as they are non -profit generating 
and purely for services they do not attract Land 
Rent.  
 Page 42, Para  3.65 
In June 2015, with a view to ensuring 
the efficient management of state -
owned commercial assets, PNG 
established a framework that 
consolidated: all state interests in oil 
and gas projects under Kumul 
Petroleum Holdings (KPH); all state 
interests in mining projects under 
Kumul Minerals Holdings (KMH); and 
all remaining SOEs under Kumul 
Consolidated Holdings (KCH). As at 
December  2018, the KCH portfolio of 
companies alone had combined assets 
of PGK 9 billion and 7,117 employees.  
Question ： 
14. How does the government ensure 
fair competition between state -owned Any company regardless of ownership must 
comply with the Oil and Business Act and Oil 
and Business Regulations, and t he ICCC Act.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
enterprises and private ones in the 
mining and oil and gas industries?  
 Page  49, Para 4.22  
PNG's key policy objective for the 
sector is "to promote a financially and 
economically sustainable forest 
industry through improved 
international market visibility". The 
NTP 2017 -32 calls for: increased 
connectivity with the private sector, 
other government agencies, civil 
society and international 
organizations to encourage 
information linkages and transparency 
on international trade of forest and 
wood products; the marketing and 
promotion of wood products to 
maximize ret urns and minimize 
transfer pricing in the log export 
trade; and the encouragement of 
domestic processing of forest 
products wherever this is 
economically and financially viable.  
Question ： 
15. Does PNG have a comprehensive 
management policy for natural 
resources?  The Government has a National Strategy for 
Responsible Sustainable Development (StaRS). 
The second edition was published in 2014. 
Alongside the national planning framework 
made up of Vision 2050, the DSP and MTDP, 
the StaRS guides sustainable ma nagement of 
natural resources.  
 
In addition, each sector has its own legislation 
and policy for managing natural resources.  
 16. What are the specific tools used by 
PNG to coordinate the management of 
oil and gas, mining, forests, and land?  The PNG Forestry A ct 1991 (amended) 
provides the legislative requirements of how 
PNG's forest resources are to be developed and 
managed including resource acquisition and 
allocation processes. Other policy documents 
that provide additional policy guidance include:  
(a) The Forest Regulation 1998 (amended in 
2001 and 2008),  explains how any 
individual, corporate body, business group 
or any affected forestry industry player 
including the Board, PFMCs and NFS should 
apply the provisions of the Forestry Act 
1991 (as amended).   
(b) National Forest Policy 1991, national 
blueprint for the sustainable management 
and utilisation of forest resources;  
(c) National Forest Plan 1996, sets out how the 
national and provincial gov ernments intend 
to manage and utilise PNG's forest 
resources. It guides development of forest 
projects . 
(d) The National Forest Development Guideline 
2009 contains  broad objectives and gives 
significant directions to the National Forest 
Plan, which underpins all forest -based 
activities in PNG.  
 
The operational manuals that provide guidance 
for the implementation of the legislative 
framework as listed are:  
1 Manual on Planning, Monitoring and Control 
Procedures for Natural Forest Logging 
Operations under Timber Permits. This 
manual provides for planning, monitoring 
and controlling procedures for forestry 
operations in natural forests. It sets out the 
procedures for preparation and submission WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
of forest working plans, annual logging 
plans and setup plans, log ponds and 
logging base camps.  
2 Procedures For Exporting Logs. This manual 
describes the procedures that log exporters 
must follow to obtain approved statutory 
export documents, monitoring of loading 
and outward log export clea rance of log 
ships. It also incorporates the log export 
monitoring by SGS (PNG) Ltd, which is part 
of the Société Générale de Surveillance 
Group, a leading inspection and verification 
company.  
 
Important challenges include the capacity of 
officials to effectively implement these 
legislative requirements and adequate logistics.  
 
The Oil and Gas Act 1998 is the Act that 
governs the conduct of oil and gas investors in 
PNG. The Oil and Gas Act Re gulations guide the 
development and exploration of hydrocarbons 
in PNG.  
 Page 44, Para 3.71  
In June 2016, PNG accepted the 
Protocol Amending the TRIPS 
Agreement, which took effect on 
23 January 2017 .27 No changes to 
the legal and institutional framework 
governing IP took place during the 
review period. The authorities are 
aware of the need to review the 
current outdated laws, to take 
account of technological change and 
align them with international trea ties. 
This has prompted the drafting of a 
National IP Plan, with the aim of 
enhancing the utilization of IP and 
enabling PNG to meet its relevant 
international obligations.  
Question ： 
17. What is the main content of the 
"National IP Plan"?  The goal of the IP st rategy is to create an 
enabling environment for increased use of the 
intellectual property system to:  
(i) Promote creative and innovative activities in 
all sectors  
(ii) Increase the level, and forms, of protection 
for IP assets generated in the public and  
private sectors and academia  
(iii)Stimulate research and development 
activity, technology transfer and 
commercialization in all productive sectors  
(iv)Facilitate increased entrepreneurial activity 
nationally  
(v) Protect, enforce, preserve, conserve and 
use cultural heritage;  
to achieve sustainable and responsible 
economic development and national prosperity.  
 
The national IP roadmap is developed under 
four key strategic objectives:  
1. To build an efficient and responsive 
intellectual property institutional and 
legislative framework to facilitate increased 
use of the national intellectual property 
system  
2. To create an enabling environment for 
increased innovative activities across all 
sectors to foster a culture based on research 
and deve lopment, new product development 
and critical design thinking to provide 
solutions to national and global challenges  
3. To guide sustainable and responsible use of 
Papua New Guinea's national and cultural 
resources to spur innovative economic 
development to sustain current and future 
development needs  
4. To provid e the knowledge base to inspire 
the creation and management of intellectual 
property assets for wealth creation.  
 Page 44, Para 3.72  
Compulsory licensing provisions are 
set out in the Patents and Industrial Compulsory licensing, while provided for in law, 
has not yet been applied in PNG since the 
enactment of the Act. There is a lack of WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
Designs Act, 2000. There are no legal 
provisions on exhaustion of rights.  
Question ： 
18. What scenarios are subject to 
compulsory licensing provisions? Has 
PNG issued any compulsory licenses 
for patent implementation? If so, 
please elaborate.  understanding regarding the use of the 
compulsory licensing regime by the IP Office 
and relevant ag encies that may have reason to 
use this provision, particularly in relation to 
access to medicine.  
 19. Is there any consideration in the 
near future to incorporate provisions 
on exhaustion of rights in relevant 
laws?  The exhaustion of rights will be in considered 
as and when the Government begins work on 
amendments to the Patents and Industrial 
Designs Act.  
 Page 44, Para 3.74  
Right holders may ask the PNG 
Customs Service to seize imports 
suspected of IPR infringement, 
subject to the provision of prima facie 
evidence. Ex officio action may also 
be taken, provided the right holder 
has registered with the PNG Customs 
Service and has signed a waiver 
protecting it from future court action 
resulting from any such seizure. 
According to the authorities, the 
duplication of IPR registration fees at 
IPOPNG and the PNG Customs Service 
acts as a disincentive to most right 
holders.  
Question ： 
20. Has PNG considered to cancel 
duplicate registration fees to relieve 
the burden of the right holders?  
 PNG Customs Service does n ot charge any fee 
to rights holders upon registration.  
Questions based on the Report by Papua New Guinea - WT/TPR/G/387  
 
 Page 6, Para 4.6  
The Office is currently working on 
amendments to the existing legal 
framework, in order to eliminate 
remaining incompatibilities with TRIPS 
among other objectives. Generous 
assistance has recently been provided 
by the EU to develop a new IP 
strategy.  
Ques tion： 
1. Please introduce the main 
amendments to the existing legal 
framework.  The Government intends to amend the 
Trademarks Act. The Trademarks Act is the 
oldest of the IP laws administered by the IPO. 
Most provisions have been borrowed from the 
Australian Trademarks Act of 1955.  
 
The proposed amendments and inclusions 
include the following:  
-  removal of the Part A and Part B 
requirements  
-  further refinement of the Absolute and 
Relative grounds of registrations  
-  inclusion of multiple class registrations  
-  inclusion of collective marks  
-  inclusion of certification marks  
-  recognition of geographical indications  
-  Madrid protocol provisions, in line with our 
intention to acceded to Madrid Protocol . 
 2. What is the main content of the 
"IP strategy"?  The goal of the IP strategy is to create an 
enabling environment for increased use of the 
intellectual property system to:  
(i) Promote creative and innovative activities in 
all sectors  
(ii) Increase the level, and forms, of protection 
for IP assets genera ted in the public and 
private sectors and academia  
(iii)Stimulate research and development 
activity, technology transfer and 
commercialization in all productive sectors  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
(iv)Facilitate increased entrepreneurial activity 
nationally  
(v) Protect, enforce, pre serve, conserve and 
use cultural heritage;  
to achieve sustainable and responsible 
economic development and national 
prosperity.  
 
The national IP roadmap is developed under 
four key strategic objectives:  
1. To build an efficient and responsive 
intellectual property institutional and 
legislative framework to facilitate increased 
use of the national intellectual property 
system  
2. To create an enabling environment for 
increased innovative activities across all 
sectors to foster a culture based on research 
and deve lopment, new product development 
and critical design thinking to provide 
solutions to national and global challenges  
3. To guide sustainable and responsible use of 
Papua New Guinea's national and cultural 
resources to spur innovative economic 
development to sustain current and future 
development needs  
4. To provid e the knowledge base to inspire 
the creation and management of intellectual 
property assets for wealth creation.  
 Page 7, Para 4.8  
In addition to traditionally legislated 
areas, IPOPNG's mandate includes the 
protection of traditional knowledge 
(TK). 
Question ： 
3. How does the IPOPNG  protect 
traditional  knowledge?  IPOPNG is not specifically mandated to protect 
to traditional knowledge per se. But it is 
obliged to ensure that any registrations that 
come through the IP Office having traditional 
knowledge significance should be addressed 
diligently in consultation with  interested parties 
and relevant agencies.  
 
The IPO does not register traditional knowledge 
as there no law for traditional knowledge 
registration in PNG.  
 
The office responsible for traditional knowledge 
is the National Cultural Commission.  
 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
ICELAND    
 On the occasion of  the 11th Ministerial 
Meeting of the WTO in Buenos Aires in 
2017 more than 120 WTO members 
and observers launched a joint 
declaration on women and economic 
empowerment. The declaration aims 
inter alia at sharing best practices and 
working together at the W TO to 
remove barriers for women's 
economic empowerment and increase 
women's participation in trade.  
Iceland has the following questions to 
Papua New Guinea:  
1. What is the participation of women 
in the economy in Papua New Guinea?  
2. Have particular barriers th at limit 
women's participation in trade been 
identified?  
3. The Secretariat's report 
(WT/TPR/S/387) mentions that one of 
the goals Papua New Guinea aims to 
achieve through the National Trade 
Policy for the time period 2017 -2032 
is to identify, support and inv olve all 
relevant actors in trade policy for 
sustainable development. It is 
mentioned that gender and 
inclusiveness will be among the 
integral components of trade policy. 
Can Papua New Guinea elaborate on 
the experience in mainstreaming 
gender consideratio ns into trade 
policy and the results so far?   1. According to some estimates, women's 
participation in the economy is among the 
highest in the world (71%), with very low 
disparity with men on this metric (3%) (see 
Nathans, 2013, Women's Economic 
Participat ion in Papua New Guinea , p 1). 
However, a large share of this participation is 
in the form of subsistence agriculture, and 
there is much more significant disparity with 
men in terms of formal employment.  
 
2. Considering existing rates of participation, 
the challenge for PNG is not to reduce barriers 
to women joining the labour force, but to 
reduce barriers that women face in moving into 
formal sector employment, or to improving 
their income and conditions of work in the 
informal sector.  
 
3. As in many devel oping countries, the first 
challenge in mainstreaming gender 
considerations into trade policy is the lack of 
relevant data and the consequent difficulty in 
prioritising the binding constraints preventing 
women from participating more effectively in 
trade. This tends to result in uneven progress, 
where policies are able to address issues that 
come to light (e.g. on access to finance) while 
other constraints are not understood to the 
extent needed to design effective remedies.  
 4. The report of Papua New Guinea 
(WT/TPR/G/387) mentions the 
government's work on financial 
inclusion, where a particular focus has 
been given to women. It also 
mentions efforts to increase 
opportunities for women in fish 
processing, and as decision makers i n 
agriculture. Could PNG provide further 
information on specific measures 
undertaken  to address barriers to 
women's participation in trade or to 
promote women's entrepreneurship 
and participation in trade, and share 
information on the results provided? 
Are there any best practices or 
lessons learned that Papua New 
Guinea can share with the WTO 
membership that other countries 
could learn from as regards women's 
economic empowerment and trade?  
5. Are the effects of trade policy on 
women and men measured and 
monitored, and if so how?  4. Among the most significant programmes to 
improve women's economic empowerment and 
trade in PNG is Australia's "Pacific Women" 
programme. An independent mid -term review 
of the PNG country programme was published 
in 2017 and offers valuable reflections on 
PNG's experience which could be of value to 
other donors and in other contexts.  
 
5. Monitoring of trade policy, including gender 
disaggregation, has traditionally been weak 
and uneven. However, this has been taken into 
consideration  in the National Trade Policy, in 
particular in the institutional design of future 
trade policy oversight, which includes a Trade 
Policy Advisory Council (TPAC) whose role 
includes monitoring the effects of trade policy. 
Representatives of both Government and the 
private sector with responsibility for women's 
advocacy will play an important role in the 
TPAC in helping to ensure that trade policy 
formulation and monitoring takes into account 
the needs of women.  
This is also an area in which donors will play an 
important role in improving data quality, 
including by helping governments to build their 
capacity to generate and use high -quality data, 
and UNCTAD's recent work should be 
commended in this regard.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
BRAZIL    
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
 
 Page 36 , Para 3.24  
3.24 In August 2015, PNG imposed a 
moratorium on the issuance of import 
permits for fresh foods, including 
fruit, vegetables and uncooked 
poultry, with the stated aim of 
fostering domestic production and 
further protecting biosecurity. In 
November 2015, the moratorium was 
revised to allow one company to 
import bulb onions, capsicum and 
tomatoes. The import ban was lifted, 
at least partially, in January 2016.  
Question 1 : Could Papua New 
Guinea provide updated information 
on the status of the fresh food ban? 
Are there import prohibitions still in 
place?  Almost all restrictions were lifted in 2016. The 
only remaining ban is a temporary ban on 
uncooked poultry meat from Malaysi a. It is at 
present under review.  
 Question 2 : The Report of the 
Secretariat states that the ban was 
lifted at least partially. Was the ban 
lifted for all members, on a MFN 
basis, or lifted only to import from 
specific countries?  
 The ban was lifted for all members on an MFN 
basis. Temporary restrictions on products from 
individual countries remain only where a risk 
assessments has identified an ongoing 
biosecurity risk.  
Other questions  
  
 According to data available at the 
TRAINS  Database on Non -Tariff 
Measures1, Papua New Guinea only 
allows imports of certain live animals 
(e.g. goats, horses, donkeys and 
mules) from Australia and New 
Zealand and of semen from Australia, 
New Zealand, Canada and New 
Caledonia.  
Question 3 : Could Pap ua New 
Guinea confirm if only these countries 
and territories are allowed to export 
certain live animals and semen to 
Papua New Guinea? If that is the 
case, what is the legal basis for the 
measure and how does it relate to the 
relevant provisions of the SP S 
Agreement?  
1 https://trains.unctad.org   
 Import conditions are developed and set after 
an import risk assessment has been carried 
out. The import conditions are based on 
international standards in compliance with  the 
OIE, Codex, and the WTO SPS Agreement.  
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
PHILIPPINES   
Questions based on the Report by the Secretariat - WT/TPR/S/387  
  
I. ECONOMIC ENVIRONMENT  
II. TRADE AND INVESTMENT 
REGIMES  
Para 2.7 , Page 18  
The Ministry of Commerce and 
Industry (MCI), through the 
Department of Commerce and 
Industry (DCI), handles external 
trade policy formulation and 
implementation. It negotiates and 
administers PNG's multilateral, 
bilateral, and regional trade 
agreements (RT As). Other ministries 
with trade -related responsibilities 
include: Treasury, Finance and Rural 
Development, and its Internal 
Revenue Commission (IRC) and the 
Customs Service; the Prime Minister's 
Office; Agriculture and Livestock; 
Forestry; Fisheries; Land s and 
Physical Planning; Petroleum and 
Energy; Public Enterprises and State 
Investments; and Tourism and 
Culture.  
Question:  
1. Could PNG differentiate the 
functions of the DCI and the PNG 
National Trade Office?  The DCI is currently in existence and handles 
the functions of commerce, industry and trade. 
The NTO does not yet exist, but will be 
established with the following functions:  
• To provide leadership and policy advice on 
the implementation of the NTP and trading 
matters across all sectors of the economy.  
• To spearhead the development and 
improvement of policy, negotiations, 
promotion and regulations of trade and 
advise Government accordingly.  
• To coordinate and maintain oversight across 
all sectors on the implementation of the 
NTP. 
• To play an adviso ry role of oversight for 
regulatory and facilitating agencies of 
Government on trade related issues  
• To enhance capacities of trade officers and 
post them as Trade Attachés to strategic 
Diplomatic and Trade Missions to pursue 
PNG's trade interests.  
Further information can be found in the NTP, 
§13.3.  
Following the transition, the DCI will continue 
to handle the functions of domestic commerce 
and industry.  
 2. It was mentioned in the 
paragraph's footnote that DCI is 
currently in transition to separate 
externa l trade from commerce and 
industry. Which government agency 
will handle the external trade function 
following this separation?  Following the transition, the National Trade 
Office will handle all trade issues.  
 Para 2.47 , Page 29  
PNG grants various tax incentives to 
both local and foreign investors. 
General tax incentives apply across all 
sectors but there are also sector -
specific incentives (Table A2.1); these 
incentives are currently being revised, 
with World Bank support. PNG ha s no 
investment performance 
requirements.  
Questions:  
3. What is PNG's timeline to complete 
the revision of its incentives?  The review of incentives is expected to be 
completed by November 2019.  
 4. Could PNG provide details on the 
proposed coverage of t he revised 
incentives?  The review will cover incentives for all sectors.  
 III. TRADE POLICIES AND 
PRACTICES BY MEASURE  
Para 3.8 , Page 31  
According to the authorities, PNG 
applies the WTO Customs Valuation 
Agreement, and uses the transaction 
value of goods as the primary method 
of calculation. However, it is unclear 
what legal provisions on customs The Customs Act 1951 was amended in 1987. 
As a consequence of the ame ndment, Division 
2 (Ad Valorem Duties) comprising Sections 95 –
101 was repealed. The Customs (Ad Valorem 
Duties) Regulation was then enacted in 1987 to 
cater for the amendment to the Customs Act.  
 
Currently, PNG Customs is in the process of 
amending the Cus toms (Ad Valorem Duties) WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
valuation are currently in force. In 
princi ple, the dutiable value of all 
imports is the sum of the purchase 
cost and all expenses incurred for 
insurance and freight up to the point 
of entry. In the absence of 
satisfactory proof of insurance, the 
cost of insurance is calculated as 
0.5% of the cost of freight. 
Consignments can be released under 
bond prior to the final determination 
of duties.  
Question:  
5. Could PNG clarify which legal 
provisions on customs valuation are in 
force?  Regulation1987 to align with the general 
provisions of the GATT.  
 
Information on currently applicable customs 
valuation rules are available from 
http://customs.gov.pg/trade -facilitation/tariff -
valuation/customs -valuation/   
 Para 3.25 , Page 36  
PNG has no legal and institutional 
frameworks for the application of anti -
dumping, countervailing, and 
safeguard measures. According to the 
authoritie s, a draft Anti -dumping and 
Countervailing Measures Act and a 
draft Safeguards Measures Act are 
undergoing legislative approval. To 
date, no contingency actions have 
been taken.  
Question:  
6. Could PNG provide updates on its 
initiatives to establish legal and 
institutional frameworks for anti -
dumping, countervailing, and 
safeguard measures?  The draft bills are still undergoing domestic 
consultation.  
 IV. TRADE POLICIES BY SECTOR  
Para 4.31 , Page 50  
General tax incentives apply across all 
sectors but there are also specific 
incentives for fisheries (Table A2.1).  
Question:  
7. Apart from those listed in Table  
A2.1, does PNG offer additional 
incentives, whether fiscal or non -
fiscal, for fisheries?  PNG has offered a rebate to tuna processors in 
PNG since January 2018. The purpose of the 
rebate is to encourage onshore processing and 
create spin -off activities which generate new 
jobs. 
 
The Government will ensure that its fisheries 
subsidies notifications a re up to date by 
30th June.  
 Para 4.32 , Page 50  
PNG's key policy objective for the 
sector is "to support further growth 
and development of fisheries industry 
to maximize the returns on its 
resource, in terms of jobs and export 
earnings". The NTP calls for  the 
following measures: establish marine 
industrial zones, including expediting 
the establishment and operation of 
the Pacific Marine Industrial Zone 
(PMIZ) in Madang and of the Wagang 
Dedicated Fish Port in Lae, to 
maintain its competitive position in 
current and future export markets; 
maintain export restrictions to 
encourage downstream processing 
and value adding onshore, wherever 
necessary; and identify and conclude 
RTAs to gain competitive advantages 
for fish exports.  
 The first marine industrial zone will be built in 
Madang, on the northern coast. Land for the 
zone has been secured and is ready for 
construction. It is hoped that co -funding for 
construction  will be secured this year.  
 
PNG is completing the Feasibility Study on 
Wagang Dedicated Fish Port in Lae, Morobe 
Province. A request for tenders for a geotech 
study has already been published by the 
Central Supplies & Tenders Board (CSTB). The 
contract wi ll be awarded soon.  
 
The Department of Lands has been engaged to 
undertake customary land 
identification/mobilization and registration with 
traditional landowners in Wagang. Incorporated 
Land Groups for the different landowner clans 
will soon be incorporat ed after land 
identification and mobilization.  
 WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
Questions : 
8. Could PNG provide updates on its 
initiatives to establish marine 
industrial zones?  The draft feasibility study report by China Jinin 
Construction PNG Ltd for Manus Port and 
Fisheries Project has been completed and is 
now being circulated for comments.  
 9. What are the specific export 
restrictions PNG has in place to 
encourage onshore fisheries 
processing? Could PNG provide more 
information on these export 
restrictions?  PNG has a policy that bans at -sea 
transshipment by fishing boats to encourage 
offloading of tuna at PNG ports for onsh ore 
processing in Wewak, Madang and Lae. Only 
smaller purse seine fishing vessels below 
600 GRT that require mothership operation are 
allowed to transship at sea under the National 
Tuna Domestication Policy.  
 
Furthermore, all projects with State Agreement 
like RD, Frabelle, SSTC, Majestic Seafood and 
Nambawan Seafood that have integrated tuna 
fishing and processing operations are required 
to offload all tuna catches to their plants for 
processing. Only surplus whole round tuna are 
exported. The general poli cy objective is for all 
tuna to be processed on shore. This is not 
happening for various reasons including the 
lack of port facilities for offloading, the high 
cost of business, etc.  
 10. What other initiatives does PNG 
plan to put in place to support its  
fisheries industry?  The Government has no specific plans for 
further measures in the short term.  
 Para 4.91 , Page 61  
PNG remains among the most 
underbanked countries on several 
indicators (numbers of branches, 
ATMs, and loan penetration). BPNG is 
activel y engaged in a programme to 
strengthen financial inclusion, 
education, and improvement in the 
capital market. Banks hold only 
around half of their assets as loans, 
with the rest held largely as short -
term securities and cash. A new 
Treasury bill and Treasu ry bond (TAP) 
facility by BPNG was introduced in 
April 2016 to help promote financial 
inclusion and deepening.  
Question:  
11. Could PNG expound on its 
initiatives to deepen and strengthen 
financial inclusion and services?  The Bank of PNG started the financi al inclusion 
journey in late 2013. Actual implementation 
started in 2014 with the National Strategy for 
Financial Inclusion 2014 –15. In 2016, a second 
strategy for 2016 –20 was drafted. When we 
started this journey we had only a few ATMs, 
agents, branches a nd few accounts held by 
women. Student accounts were also very few, 
not exceeding 20,000. The number of accounts 
by the end of 2013 was 1.1m.  
As at March 2019, we have the following:  
• 216 Branches  
• 463 ATM  
• 15,379 EFTPOS  
• 475 Agents  
• 2.8m new accounts (cumulatively)  
Other progress includes the real time gross 
settlement of cheques called the Kina 
Automated Transfer System (KATS), the 
development of a national switch for 2nd and 
3rd tier financial institutions, and insurance 
subscription through mobile p hones, with an 
uptake of 300,000 new policy holders (BIMA). 
The Bank is currently looking at implementing 
the recommendations coming out from the 
Financial Sector Review concluded lately by the 
World Bank, Treasury and Bank of PNG in an 
attempt to broaden the current limited financial 
markets, avoid duplication amongst regulators 
and work on fair market conduct and consumer 
protection issues.  
 
Questions based on the Report by Papua New Guinea - WT/TPR/ G/387  
 
 Para 5.17 , Page 10  
Attracting investment in onshore 
processing of fish is a high priority. 
The Government sees this as a way of PNG plans to restrict third generation fishing 
access to companies that plan to invest 
onshor e given that all foreign and domestic 
licensed fishing companies are on an equal WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
creating well paid employment, 
especially for women, who are 
underrepresented in the formal 
economy, but form a large majority of 
workers in the fi sh processing sector. 
The country currently has six facilities 
producing tinned tuna and cooked 
loins, employing some 20,000 people. 
A major current challenge is that tariff 
preferences for tinned tuna into the 
EU market, negotiated under the 
interim EPA, have been eroded 
through the extension of duty -free 
access to large competitors under 
GSP+. This has seriously undermined 
the overall value of the agreement to 
the PNG economy, and placed the 
industry under threat from 
international competitors who benefit  
from subsidies that the Government 
of PNG cannot match.  
Question:  
12. Could PNG expound on how it 
plans to attract investments in 
onshore fisheries processing?   footing in terms of the access fees for fishing 
days under the PNA Vessel Day Scheme (VDS). 
Preference in terms of allocation of fishing days 
and rights will be given to compa nies who plan 
to invest onshore in PNG and create much 
needed economic benefit.  
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
SEPARATE CUSTOMS TER RITORY OF TAIWAN, PENGHU, KI NMEN AND MATSU  
Questions based on the Report by the Secretariat - WT/TPR/S/387  
 
  For mining, PNG currently has a robust and 
attractive mining regime that provides for 
liberal access for investment in the mining 
sector. The fiscal regime is favourable 
(including reasonably low corporate income 
tax) and some mines in the country are 
currently on tax  holidays subsequent to the 
start-up of operations.  
 
The revised mining act, which is currently 
under review by the Government, will continue 
to maintain the sector's attractiveness to FDI, 
and at the same time allow for inclusion of 
greater transparency i n stakeholder 
engagement and social obligation by mining 
investments.  
 
PNG is currently a member of the Extractive 
Industries Transparency Initiative (EITI) and 
the revised mining act provides for greater 
transparency for financial reporting by mining 
comp anies for public awareness.  
 3 TRADE POLICIES AND 
PRACTICES BY MEASURE  
3.3 Measures Affecting Production 
and Trade  
3.3.3 Sanitary and phytosanitary 
requirements  
Page 39 (Para 3.48)  
A system of import permits issued by 
NAQIA remains in place for: live 
animals, animal products, fish and 
fish products, plants, timber, plant 
products, biological organisms, sand, 
stone and gravel. Import permit 
applications must be lodged at 
NAQIA's head office in Port Moresby, 
either by post or over the counter. 
The typical processing time is four to 
five working days. In some cases, 
prior approvals by other competent 
authorities are also required. Import 
permits are valid for three months, 
and specify th e quantity and country 
of origin of the authorized good. 
According to the authorities, an 
electronic system for the issuance of 
import permits is being developed but 
progress is hampered by the lack of a 
sustainable funding arrangement.  
Question(s):  
Could  PNG briefly describe an import 
permit system in fish and fish 
products such as Standard Operation 
Procedure (SOP) or is there any 
documental requirement?  PNG has Agriculture Quarantine Circulars 
(AGCs) which are a set of policy protocols 
arrived at and de veloped after a risk 
assessment of the commodity in question has 
been conducted. An item is allowed market 
access after it satisfies our permit application 
processing and screening system which are 
actually stipulated in the AGCs.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 4 TRADE POLICIES BY SEC TOR 
4.1 Agriculture, Forestry, and 
Fisheries  
4.1.3 Fisheries  
Page 49, Para 4.25 
The fishing sector currently provides 
around 10,000 jobs. Fishing is mainly 
conducted by artisanal communities in 
inland and shallow coastal waters, 
medium -sized domestic prawn  and 
long line boats, and foreign purse -
seine tuna operators. Commercial 
fishing is carried out by licensed 
medium -sized domestic prawn and 
tuna long -line operators, and large 
international purse -seine fleets in the 
deep-water tuna fishery.  
Question(s):  
How does PNG control and monitor 
the fishing capacity of foreign fishing 
vessels operating in the EEZ (for 
example, quantity of fishing vessel or 
operation period)? What is the 
standard established by PNG that 
foreign -flagged longline fishing 
vessels are p ermitted to sign fishery 
cooperation agreements with PNG in 
form of a project, instead of general 
procedure to sign the agreement?  The number  of vessels is not a problem in the 
purse seine vessel day scheme (VDS) fishery, 
although there are other requireme nts such as 
length of vessels, good standing at the regional 
vessel register and others. In the purse seine 
tuna fishery, it is the number of VDS days 
allocated to a vessel that is important in 
controlling fishing effort in the fishing grounds 
(both the EE Z for foreign -flagged and 
EEZ/archipelagic waters for PNG flagged).  
 
PNG's longline tuna fishery is not yet fully 
developed, though some commercial -scale 
operations have been allowed.  
 
The fishery is currently being developed under 
a trial fishery until su fficient scientific data is 
collected to enable authorities to model and 
confirm the bio -economics of the fishery in 
terms of:  
i) stock size,  
ii) catch per unit effort,  
iii) total number of vessels that can be allowed 
to fish at any one time,  
iv) other harvest control r ules and conditions 
of license to develop the appropriate fishery 
management and development plans.  
 
PNG's domestication policy needs to be based 
on current circumstances and not previous 
investment conditions, so the Government 
prefers to sign cooperation  agreements on a 
project basis.  
 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
REPUBLIC OF KOREA   
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
  
Page 4 , Para 2.11  
 
2.11. The Government increased 
external borrowing in 2018 –19. Along 
with an increase in  mining and 
petroleum tax collections, dividends 
and royalties, this is expected to 
resolve the foreign exchange shortage 
in 2019.  
 
Question 1  
Is Papua New Guinea willing to 
introduce a new foreign exchange 
policy to counter the current 
challenge of foreign exchange 
shortage? When does it expect to 
scrap 'the policy of rationing foreign 
exchange' that in fact has been 
limiting its imports since the 
introduction in 2014?  Yes, external borrowings provided some relief 
to the market through Central Bank 
interventions and general confidence in the 
market.  
 
A slight recovery in the commodity market has 
also seen good inflows through dividends, 
royalties, tax payments and general cash calls.  
 
Market sentiments also improved as a result of 
the inaugural sovereign bond issuance in 
September 2018. The recent signing of the 
Papua LNG project also improved market 
sentiments.  
 
The Bank is mandated to oversee the foreign 
exchange market and has not introduced any 
major foreign exchange rate policy. However, 
the Bank has strengthened the process & 
mechanism for foreign exchange reporting and 
stepped up its compliance on existing foreign 
exchange regulations. The Bank of PNG has not 
imposed any restrictions on foreign currency, 
but has advised the banks to priorit ize their 
inflow of dollars to better serve all clients.  
 
Questions based on the Report by Papua New Guinea - WT/TPR/ G/387  
 
 Page 42 , Para 3.3.5  
3.66. State involvement remains 
prevalent in many sectors of the 
economy and, in some cases, 
continues to crowd out private 
entrepreneurs. SOEs have commercial 
operations in, inter alia, energy, 
mining, water and sewerage, 
telecommunications, aviation, har bour 
facilities, financial services, and 
agriculture and food processing (Table 
3.7). The authorities have taken some 
steps to encourage PPPs and to 
facilitate the entry of private suppliers 
in power generation and 
telecommunications. Nevertheless, a 
numbe r of SOEs continue to benefit 
from soft budget constraints and 
access to concessional finance 
arrangements.  
Question 1  
Is Papua New Guinea considering any 
changes of the current system in 
which it operates the state -owned 
monopoly power utility, in order t o 
enhance efficiency and reliability, thus 
lowering business costs and 
enhancing PNG's low electrification 
level?   Yes, the Government took steps to open up 
competition in the power generation segment 
of the industry. So far,  outstandi a number of 
players have participated but more reforms 
need to happen to the retail and distribution 
segments of the industry for electricity to reach 
the unreached population, mostly those in the 
remote areas.  
 
The Government has also embarked on a 
number of projects to add ress access to 
electricity to the remote and rural 
communities. This include the rural 
electrification program. The Government is also 
addressing this issue through looking at 
alternative sources of energy or power to serve 
its people.  
 WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
Other questions   
 We would be interested in hearing 
whether the PNG government has a 
plan to resolve the outstanding 
payment issues, in which foreign 
companies haven't been paid for 
government projects they've 
conducted and need to spend 
tremendous costs and time for the 
collection of the payment.   The Government would require details of 
specific cases in order to comment on 
challenges in the implementation of 
Government projects.  
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
CANADA    
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
 
 3. TRADE POLICIES AND 
PRACTICES BY MEASURE  
 
Section 3.1.7 Anti -dumping, 
countervailing, and safeguard 
measures  
 
Page 36 , Para 3.25  
 
PNG has no legal and institutional 
frameworks for the application of anti -
dumping, countervailing, and 
safeguard measures. According to the 
authorities, a draft Anti -dumping and 
Countervailing Measures Act and a 
draft Safeguards Measures Act are 
undergoing legislative approval. To 
date, no contingency actions have 
been taken.  
Questions:  
 
1. Would it be possible to obtain a 
copy of the draft Anti -dumping and 
Countervailing Measures Act and draft 
Safeguards Measures Act?  The draft bills are still undergoing domestic 
consultation and are not yet ready for external 
circulation.  
 2. When does Papua New Guine a 
intend to enact these acts?  There is no set timeframe for the enactment of 
these acts, at the moment.  
 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
THAILAND   
Questions based on the Report by the Secretariat  - WT/TPR/S/387  
  
2.3.3 Investment regime  
Page 27, Para 2.40 
Question : In respect of investment 
promotion, does the Investment 
Promotion Authority (IPA) have to 
work in coordination with other 
sectoral bodies and how?  Yes. IPA coordinates with other sectoral bodies 
to promote investments. For example, in terms 
of investment incentives, IPA works with the 
Treasury Department, Internal Revenue 
Commission, Commerce and Industry 
Department amongst others. In terms of 
promoting investments, IPA works with 
provincial and local level government 
representatives. IPA als o participates in policy 
discussions and promotes dialogue with 
government and the business community to 
create a favourable investment regime for 
PNG. Currently IPA is leading the spot 
inspection and database survey on all business 
houses together with th e support of the 
Internal Revenue Commission, PNG Customs 
Services, Citizenship and Immigration 
Authority, Department of Labour and Industrial 
Relations and the National Capital District 
Commission (the city authority).  
 Page 27, Para 2.40  
Question : Does the meaning of 
national entities for which specific 
activities in Table 2.4 are reserved 
cover Papua New Guinean entity 
comprised of less than 50% of foreign 
ownership and not controlled by 
foreigners?  An entity that is 50% or more controlled and 
owned by foreigners is regarded as a foreign 
entity. An activity that is reserved for Papua 
New Guineans requires majority control and 
ownership by Papua New Guineans.  
 3.1.1 Customs procedures, 
valuation, and requirements  
Page 31, Para 3.8  
 
Question : According to  para 3.8, we 
note that Papua New Guinea (PNG) 
applies the WTO Customs Valuation 
Agreement. However, the unclear 
legal provisions on customs valuation 
may affect the confidence of 
importers and we have some 
questions as follows:  
 
1. If the transaction valu e cannot be 
used to determine customs value, 
does the PNG customs provide a 
process of consultation between the 
customs administration and importers 
with a view to determining a proper 
customs value at a basis of value 
under the provisions of the 
GATT  1994? PNG Customs implements the Valuation 
Regulation 1987 provisions, which reference 
the GATT.  
 
In the absence of a transaction value or in a 
circumstance which prevents the use of the 
transaction value, Customs can still arrive at a 
value (for duty) without  resorting to arbitrary 
or fictitious values by applying one of the other 
valuation methods:  
• Identical Goods  
• Similar Goods  
• Deductive Value  
• Computed Value  
• Fall back Value  
 2. In the absence of satisfactory proof 
of insurance, which law or regulation 
does the PNG customs use to 
determine the cost of insurance by 
calculating 0.5% of the cost of 
freight? Please clarify.  The Customs Administrative Provisions allow 
for 0.5% insurance to be calculated on the cost 
of freight to arrive at the CIF landing cost .  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 4.1.1 Agriculture  
Page 45, Para 4.1  
Question : Are there any import 
permit exemption or tariff preference 
for products that are re -imported?  The Government does not issue import permit 
exemptions or provide tariff preferences for 
products that are re-imported.  
 4.1.3 Fisheries  
Page 50, Para 4.30  
Question : Do you have any 
investment incentives for fish 
processing companies to establish 
business in Papua New Guinea in 
order to achieve the fisheries target in 
2030?  
 PNG has offered a rebate to tuna pr ocessors in 
PNG since January 2018. The purpose of the 
rebate is to encourage onshore processing and 
create spin -off activities which generate new 
jobs. 
 
In addition, PNG plans to restrict third 
generation fishing access to companies that 
plan to invest. P reference in terms of allocation 
of fishing days and rights will be given to 
companies who plan to invest onshore in PNG 
and create much needed economic benefit.  
 4.3 Manufacturing  
Page 59, Para 4.75  
Question : What is the priority sector 
of the high value  production?  The Government has chosen not to elaborate 
specific priority manufacturing sectors in 
regulation or policy as yet.  
 4.4.4.3 Maritime transport  
Page 66, Para 4.115 -4.116  
Question : Do you have a plan to give 
a permanent permit to foreign firm t o 
operate both overseas and domestic 
shipment in order to reduce the 
logistic cost?  
 The Government has no specific plans that are 
sufficiently developed to be publicised at this 
time. 
 
  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
INDONESIA   
Questions based on the Report by the Secretariat - WT/TPR/S/387  
 
 2.3.3 Investment Regime  
Page 29  
2.49. PNG has double taxation 
treaties with Australia, Canada, China, 
Fiji, Germany, Malaysia, Singapore, 
and the United Kingdom. Agreements 
with Indonesia and Thailand are 
pending  signing and ratification by 
Parliament, to be incorporated into 
domestic legislation (PNG Income Tax 
(International Agreements)).  
 
Question:  
 
1. Could PNG provide more 
information about progress of this 
agreement?  The Government is not able to provide further 
information on the progress of this agreement 
at this time.  
 4.1.1 Agriculture  
Page 45  
4.2. PNG's agricultural sector is 
generally much less productive, and 
therefore much less profitable, than 
agricultural sectors in many similar 
countries. For example, the current 
stocks of coffee and cocoa trees are 
old, and are therefore low -yielding. 
There is, therefore, considerable 
scope for expansion of PNG's 
agricultural output.  
 
Question:  
 
1. The Government of PNG mentioned 
that the reason for increasing import 
tariffs is to protect local products. 
However, in above passage it can be 
assumed that t he quality of local 
products is not good. How PNG meet 
national agricultural needs with the 
conditions are (1) increase of import 
tariff and (2) poor quality of local 
products?  The passage in the Secretariat report refers to 
the situation in the production  of raw 
agricultural commodities for export, like coffee 
and cocoa. PNG's trade in agriculture is 
typically characterised by exports of raw 
agricultural commodities and imports of 
finished products. Increasing production is a 
priority of the Government. Ho wever, PNG 
acknowledges that exporting raw commodities 
may not be sustainable in the long term 
because of more efficient producers competing 
in the international global market for 
commodities.  
 
PNG producers acknowledge this challenge, 
and are therefore t aking steps to increase 
production of higher value added, quality 
products that meet the requirements of niche 
markets, abroad and in country. PNG also 
recognizes that there is also a large domestic 
market for speciality products. Import tariffs 
are theref ore levied on higher valued local 
products to support local producers who are 
competing against cheaper imported 
substitutes.  
 
Import tariffs however should be reduced or 
eliminated at some point in time as part of 
PNG's unilateral Tariff Reform Programme  to 
benefit consumers and businesses.  
 
General question  
  
 1. Would the Government of PNG 
provide further reasoning behind the 
restriction of trade for frozen meat 
imports (beef, pork, and chicken) 
from Indonesia, meanwhile beef from 
Australia and New Zealand free to 
enter without restrictions?  Concerns include Newcastle disease for poultry, 
Classical Swine Fever for pigs, and the fact that 
the animal health status of the large ruminant 
sector is largely unknown. However, this will 
soon improve as NAQIA /PNG and Indonesia 
have recently signed an MoU to work together 
in areas of biosecurity, market access and 
information sharing and conduct combined 
surveys along the common land border.  WT/TPR/M/38 7/Add.1  
 
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  Member  Question  Response  
 2. We also need explanation of why 
importation of dairy product (mil k, ice 
cream, yoghurt, etc.) from Indonesia 
requires approval from the Ministry of 
Health of PNG, while dairy products 
from Australia and New Zealand don't 
need approval from the Ministry?  Health Certification for processed products is a 
requirement for im ports from all source 
countries. More information on the specific 
case would be needed to investigate any 
apparent misapplication of existing rules.  
 
 
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