Imagine a special economic zone brimming with opportunity, yet undermined by lagging customs oversight that enables rampant smuggling, tax evasion, and ultimately becomes a breeding ground for crime. This scenario, far from hypothetical, underscores how effective customs management serves as the critical safeguard for successful special economic zones (SEZs). The question then arises: How will Papua New Guinea's (PNG) customs authority enhance its SEZ governance to align with international best practices?
Recently, under sponsorship from the Customs Cooperation Fund-China (CCF-China), the World Customs Organization (WCO) conducted a national workshop on free zones/SEZs for the Papua New Guinea Customs Service (PNGCS). Held from May 27-31, 2024, in Port Moresby, the event brought together 30 customs officials from various departments who gained substantial insights through practical demonstrations and discussions. This initiative marks a crucial step in PNGCS's efforts to elevate its SEZ management capabilities while embracing global standards.
Core Focus: WCO Practical Guidelines and Gap Analysis
The workshop centered on comprehensive examination of WCO's practical guidelines on free zones. Participants methodically analyzed core components of the guidelines while evaluating PNGCS's existing procedures and control measures using provided checklists. This "benchmark against international standards, assess current reality" approach enabled clear identification of SEZ-related risks and customs' pivotal role in these zones. More importantly, the comparative analysis revealed gaps between PNGCS operations and WCO standards, establishing foundations for future improvements.
The WCO guidelines encompass all aspects of SEZ management, including:
- Risk assessment and management: Techniques to identify and evaluate risks like smuggling, tax evasion, and intellectual property infringement, plus corresponding mitigation strategies.
- Cargo supervision and control: Methods to effectively monitor goods movement through SEZs, ensuring legality and security while preventing illicit trade.
- Information technology applications: Implementation of digital solutions like electronic data interchange (EDI) and risk management systems to boost efficiency and transparency.
- Cooperation and coordination: Frameworks to strengthen collaboration between customs, other government agencies, businesses, and international organizations in combating illegal activities.
Learning From Experience: International Best Practices
Beyond studying WCO materials, the workshop introduced participants to successful SEZ management approaches from other jurisdictions. By comparing different procedures and controls, PNGCS officials better understood their operational challenges while drawing valuable lessons. Examples included advanced risk management systems that improve inspection targeting accuracy, and robust public-private partnerships that enhance zone security.
Collaborative Problem-Solving: Addressing Challenges
Active discussions during the workshop surfaced key obstacles in PNG's SEZ customs operations, including:
- Insufficient legal frameworks for evolving SEZ needs
- Capacity gaps in customs officers' specialized knowledge
- Outdated information technology infrastructure
- Interagency coordination difficulties
Participants proposed actionable solutions such as legal framework modernization, enhanced officer training programs, IT system upgrades, and improved interdepartmental coordination mechanisms. These outcomes, combined with WCO expert recommendations, will inform future policy revisions and operational enhancements.
Moving Forward: International Standards for Economic Growth
In closing remarks, Assistant Commissioner for Compliance and Procedures Roselyn Tei-Witne expressed gratitude to WCO, CCF-China, and workshop facilitators for enabling PNGCS to implement SEZ customs operations aligned with international standards. The event provided PNG customs officials with both theoretical knowledge and practical insights to develop more efficient, transparent, and secure SEZ management systems - ultimately supporting Papua New Guinea's broader economic development objectives.