PNG Customs Service Partners with EastWest Transport for Trusted Trader Program
The PNG Customs Service has entered into a Memorandum of Intent (MOI) with EastWest Transport (EWT) to initiate a trial of the Trusted Trader Program (TTP). This agreement represents a pivotal advancement in enhancing the security, efficiency, and facilitation of legitimate trade within Papua New Guinea (PNG). The MOI was formalized last week at the PNG Customs Headquarters in Waigani, with Customs Chief Commissioner David Towe and EWT General Manager Nicholas Bury signing the document. With this agreement, EWT becomes the third freight forwarder to join the initiative in PNG.
Overview of the Trusted Trader Program
The TTP, often referred to as the Authorized Economic Operator (AEO) program, stands out as a premier Customs-Business collaboration in numerous countries globally. It is a crucial component of the World Customs Organization’s (WCO) SAFE Framework of Standards, which delineates protocols for securing and facilitating international trade. Through this program, businesses can achieve recognition as trusted traders by Customs authorities worldwide, provided they adhere to defined security and compliance criteria. Those with trusted trader status generally enjoy advantages such as faster Customs clearance, fewer inspections, and other preferential treatment.
Objectives of the Trusted Trader Program
Chief Commissioner David Towe articulated the program’s purpose, stating that it aims to enhance trade security while enabling the smooth transit of goods across borders, thereby reducing Customs involvement. He noted that increased intervention at borders leads to higher operational costs for businesses, and this program seeks to mitigate such challenges. “Given the rising cost of goods and services, Customs is exploring ways to alleviate these burdens,” he further explained.
Significance of Public-Private Partnerships
The Chief Commissioner acknowledged EWT’s participation as a significant moment, marking them as the third freight forwarder to join the trial program. This highlights the critical role of public-private partnerships in optimizing trade processes. The other two freight forwarders already part of the program are Express Freight Management and Lae Inland Logistics.
Commitment to Compliance and Security
Customs Assistant Commissioner for Compliance and Procedures, Roselyn Tei, noted that EWT’s journey into the program commenced in October 2023 when they expressed interest. In response, PNG Customs undertook several internal compliance evaluations and site visits to ensure EWT met the WCO’s security benchmarks. “We appreciate EWT’s dedication and the substantial resources they have committed to meeting our security requirements,” the Assistant Commissioner remarked.
EWT’s Dedication to Efficient Trade Solutions
In his remarks, EWT General Manager Nicholas Bury expressed appreciation for being included in the trial program and highlighted the necessity of collaboration between the business sector and government entities. “Having worked in PNG for several years, I have seen an increase in collaboration with the Customs team, and today’s discussions resonate with me,” Mr. Bury stated. He emphasized EWT’s strong belief in working together to provide efficient and cost-effective services for PNG’s businesses and consumers. Bury also mentioned that EWT has undertaken considerable investments to meet the program’s standards and is dedicated to passing cost savings on to consumers. “In an era of rising costs, initiatives like this will create a significant impact,” he noted.
Future Plans for the Trusted Trader Program
Both EWT and PNG Customs are keen to continue their collaboration as Customs develops and finalizes the legal structure of the TTP. With the inclusion of the third freight forwarder, PNG Customs intends to onboard importers and exporters as the next step in the program’s expansion.
