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Investment Promotion Regulation 1992

Unvalidated References:
Investment Promotion Act 1992

This reprint of this Statutory Instrument incorporates all amendments, if any, made before25 November 2006 and in force at 24 October 2004.

.........
Legislative Counsel
Dated 25 November 2006

INDEPENDENT STATE OF PAPUA NEW GUINEA.

No. of 1992.

Investment Promotion Regulation 1992

ARRANGEMENT OF SECTIONS.

1. Interpretation.
2. Notice of objection.
3. Activities reserved for citizens.
3A. Activities reserved for national enterprises.
4. Certificate permitting enterprise to carry on business in reserved activity.
5. Application for certification.
6. Fees.
6A. Contents of Register.
6B. Amount to be deposited.
7. Certificate permitting foreign enterprise to carry on business in an activity.
7A. Prescribed terms and conditions.
8. Register of certificates.
9. Stock exchange.
10. Variation.
11. Register of foreign investment opportunities.
12. Facilitation of new investment.
13. Cancellation of certificates.
14. Permission to carry on business temporarily.
14A. Application for certification.
14B. Fee for purposes of Section 36C(2)(d) of the Act.
14C. Certificate.
14D. Application for variation, etc.
15. Appeal.

Investment Promotion Regulation 1992

MADE by the Head of State, acting with, and in accordance with, the advice of the National Executive Council under the Investment Promotion Act 1992.

Dated 200 .

1. INTERPRETATION.

In this Regulation–

(a) where an activity is expressed as being small scale, the determination as to whether or not an activity is small scale shall be made by the Authority; and
(b) where an activity is followed by numbers, those numbers refer to classifications according to the United Nations International Standard Classification of all Economic Activities (ISIC), Third Revision.

2. NOTICE OF OBJECTION.

[1]A notice of objection under Section 26(3) of the Act shall be in Form 1.

3. ACTIVITIES RESERVED FOR CITIZENS.

[2]For the purposes of Section 27(1)(a) of the Act, the following activities are reserved for citizens:–

Agriculture

Small scale growing of tree crops (coffee, cocoa, copra and tea).

Small scale processing and development of tree crops for export.

Small scale growing of crops, market gardening and horticulture (ISIC 011).

Small scale farming of animals (ISIC 012).

Poultry farming (ISIC 0122).

Small scale growing of crops combined with farming of animals (mixed farming) (ISIC 013).

Hunting, trapping and game propagation including related service activities (ISIC 0150).

>Forestry, logging and related service activities

Gathering of wild growing forest materials: balatta and other rubber-like gums; cork; lac, resins and balsams; rattan; vegetable hair and eel grass; acorns and horse-chestnuts; mosses, lichens and cut evergreen trees used for festive occasions; saps; bark; herbs; wild fruits; flowers and plants; leaves; needles; reeds; roots; or other wild growing materials (ISIC 0200).

Small scale sawmilling.

Walk-about sawmilling.

Fishing and service activities incidental

Fishing on a commercial basis in coastal and inland waters (ISIC 0500).

“Coastal” means within a distance of 3 miles of the shoreline.

Taking of marine or freshwater crustaceans and molluscs. Hunting of aquatic animals such as turtles, sea-squirts and other tunicates, sea urchins or other echinoderms and other aquatic invertebrates.

Gathering of marine materials such as natural pearls, sponges, coral and algae (ISIC 0500).

Wildlife

Hunting or collecting of non-protected fauna, including insects, shells, animal teeth, tusks, feathers, declared sedentary organisms and similar products and living or dead fauna.

Business.

Land surveying and valuing.

Acceptance and movement of letter class mail except international courier service.

Installation and servicing of Telephones, Telex, Data, Facsimile, Cellular mobile, HF, Trunk mobile, Coastal radio.

Installing and letting of Post Office boxes or mail delivery or mail units.

Sign writing (ISIC 7430).

Labour recruitment and provision of personnel except for recruitment and provision of foreign personnel (ISIC 7491).

Cleaning on a fee or contract basis of buildings of all types, including offices, shops, institutions and other business and professional premises and residential buildings, but excluding factories and industrial cleaning of fire-places, furnaces, incinerators, boilers, ventilation ducts and exhaust units, etc., (ISIC 7493).

Service on a fee or contract basis related to work permit and Papua New Guinea visa applications (ISIC 7499).

Health and social work

Child day-care activities (day nurseries) (ISIC 8532).

Mining and construction

Shot-hole drilling (up to 30 metres).

Shot-fires.

Drilling operations for quarrying of stone, sand and clay.

Buying of gold (on a small scale basis).

Real estate.

All forms of real estate management except for principal place of residence.

Renting of machinery and equipment without operator and of personal and household goods.

Renting without operator of all kinds of land transport equipment, e.g. railroad vehicles, cars, trucks, trailers and semitrailers, motorcycles, caravans and campers (ISIC 7111).

Renting of vending and amusement machines (ISIC 7130).

Renting of television receivers, video recorders, video tapes and records (ISIC 7130).

Recreational and cultural.

Indigenous culture and art (any form of displaying with the original art form or establishing outlets for commercial purpose).

Motion picture distribution and projection (ISIC 9211).

Recycling.

Recycling of motor vehicle wrecks, used steel drums, bottles, scrap metals, aluminium, plastics and cardboard.

Hotel/Restaurants/Bars/Canteens.

Fast Food Take-away/Kai bars of all descriptions including mobile delivery food services.

Provision on a fee basis of short-term lodging in places such as hotels, motels, inns etc., with less than 10 rooms of accomodation.

Transport (sea, road and air).

Customs clearance and forwarding services except when integrated with international freight forwarding activities (ISIC 6309).

Transport of freight and passengers by land when not predominantly done as delivery of own goods or transport of own staff or, in the case of school buses, of students (ISIC 6021, 6022 and 6023).

Coastal and inland water transportation (of passengers or goods in boats of maximum of 20 metres length).

Airport terminal building maintenance.

Office and workshop building maintenance.

Airport general aviation apron maintenance.

Airport terminal kiosks leases.

Airport business concession leases.

Airport access road design and documentation.

Airport retaining wall design.

Aerodrome staff housing design.

Airport water supply.

Aerodrome concession lease.

Air services licences.

Navigation aids site clearance.

Security services.

Provision of Security Guards and Dogs.

Sociology.

Establishment of service and sales relating to consultancy work on retrieving information on insects, arts, culture, tourism, history and marine life.

Sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel.

Wholesale and retail sale of second-hand motor vehicles and motorcycles, except by a vehicle or motorcycle dealer authorized by an overseas manufacturer to sell new motor vehicles and motorcycles and in conjunction with such an authorization and when the wholesale and retail sale of second-hand motor vehicles and motorcycles is incidental to the wholesale and retail sale of new motor vehicles and motorcycles (ISIC 5010 and 5040).

Maintenance and repair of motor vehicles and motorcycles, except by a motor vehicle or motorcycle dealer authorized by an overseas manufacturer to sell new motor vehicles and motorcycles and in conjunction with such an authorization and when the maintenance and repair activities are incidental to the wholesale and retail sale of new motor vehicle and motorcycles (ISIC 5020 and 5040).

Retail sale of automotive fuel, except by a motor vehicle or motorcycle dealer authorized by an overseas manufacturer to sell new motor vehicles and motorcycles and in conjunction with such an authorization and when the retail sale of automotive fuel is incidental to the wholesale and retail sale of new motor vehicles and motorcycles (ISIC 5050).

Wholesale and retail sale, except of motor vehicles and motorcycles.

“Wholesale” includes wholesale by commission agents, commodity brokers and auctioneers and all other wholesalers who trade on behalf and on the account of others.

Wholesale and retail sale of crocodile skins including exports, unless in conjunction with crocodile farming or unless processing of crocodile skins.

Wholesale and retail sale of commodity coffee and copra, except by growers and processors.

Wholesale and retail sale of handicrafts and artifacts.

Wholesale and retail sale of wild growing forest materials; balatta and other rubber-like gums; cork; lac, resins and balsams; vegetable hair and eel grass; acorns and horsechestnuts; mosses, lichens and cut evergreen trees used for festive occasions; saps; bark; herbs; wild fruits; flowers and plants; leaves; needles; reeds; roots; or other wild growing materials except for rattan.

Wholesale and retail trade of food, beverages and tobacco; textiles, clothing and footwear and other household or consumer goods (excluding pharmaceutical and medical goods, surgical and orthopaedic instruments and devices) from outlets of up to 500 square metres.

Specialized retail sale of newspapers and magazines (included in ISIC 5239).

Retail sale via stalls and markets (ISIC 5252).

Retail sale carried out from a motor vehicle or motorcycle (ISIC 5259).

Wholesale and retail sale of second-hand clothing and footwear (ISIC 5240).

Repair of electrical household goods when not done in combination with manufacture or wholesale or retail sale of these goods (ISIC 5260).

Repair of footwear when not done in combination with manufacture or wholesale or retail sale of footwear (ISIC 5260).

Repair of watch, clock and jewellery when not done in combination with manufacture or wholesale or retail sale of these goods (ISIC 5260).

3A. ACTIVITIES RESERVED FOR NATIONAL ENTERPRISES.

For the purposes of Section 27(1)(b) of the Act, the following activities are reserved for national enterprises:–

Fisheries and marine resources.

Fish hatcheries and fish farming

Hospitality.

Tourist related activities (village guest houses, management of village cultural arts and shows and tourist guides).

Travel Agencies, Wholesale Tour Operators/Agents

Mining.

Alluvial Mining as per definitions by Department of Mining.

Transport (sea, road and air).

Coastal Transportation of bulk products or goods.

Hiring out of all kinds of sea transport equipment including passenger and freight motor vessels, pontoons, rafts etc, of maximum 30 metres.

Aircraft maintenance companies.

Aircraft hangar concession.

Security services.

Forms of security: dog breeding, husbandry, management; electronic security systems and monitoring; fire alarm systems; armoured fleet services and management; consultancy; building security; sales and services and agents for security equipment and industrial safety procedure.

4. CERTIFICATE PERMITTING ENTERPRISE TO CARRY ON BUSINESS IN RESERVED ACTIVITY.

A certificate permitting an enterprise to carry on business in a reserved activity under Section 27(5) and (6) of the Act shall be in Form 2.

5. APPLICATION FOR CERTIFICATION.

An application for certification under Section 28(1) of the Act shall be in Form 3 and shall contain the particulars provided for by Form 3.

6. FEES.

[3](1)[4] [5]The fee for the purposes of Section 28(2)(d) of the Act is K2,000.00.

(2) Any document required to be lodged with the Authority is to be lodged within one month of the event to which it relates.

(3)[6] [7]Any document lodged with the Authority outside of the period referred to in Subsection (2) incurs a late fee of K4,000.00 which may be waived in whole or in part by the Authority if, in the opinion of the Authority, just cause existed for any delay in lodging the document.

6A. CONTENTS OF REGISTER.

[8]For the purposes of Section 30(1)(c) of the Act, details of certificates issued under Part IVA are the particulars prescribed.

6B. AMOUNT TO BE DEPOSITED.

[9]For the purposes of Sections 28(7) and 36C(5) of the Act, the prescribed amounts are–

(a) in the case of an individual – K 50,000.00
(b) in the case of partnership – K 50,000.00 per partner
(c) in the case of a corporate body – K100,000.00.

7. CERTIFICATE PERMITTING FOREIGN ENTERPRISE TO CARRY ON BUSINESS IN AN ACTIVITY.

A certificate permitting a foreign enterprise to carry on business in an activity under Section 29 of the Act shall be in Form 4.

7A. PRESCRIBED TERMS AND CONDITIONS.

[10](1) For the purposes of Sections 29(2)(b)(iv), 33(1)(c), 36E(2)(b)(iv) and 36F(1)(d) of the Act the following are the terms and conditions prescribed:–

(a) date of commencement of certification;
(b) that the occurrence of an event or the issue of any permit, licence, lease or authority by the State or by a State body to the enterprise named on the certificate is a precondition to the validity of a certificate;
(c) date of–

(i) the commencement of the whole or part of the activity; and
(ii) the cessation of the whole or part of the activity;

(d) preparation and submission to the Authority of audited periodic accounts;
(e) that a certificate may become invalid on the occurrence of an event or on the expiry of a permit, licence, lease or authority issued by the State or by a State body to the enterprise named on the certificate;
(f) the expenditure of a stated amount of money in the country in respect of the activity for which the enterprise is certified within a stated period of time.

(2) For the purposes of this section “an event” includes, without limitation, the following:–

(a) entering into an agreement;
(b) settlement of an agreement;
(c) acquisition or disposition of an interest in any property;
(d) the employment of a particular person;
(e) the issue, amendment or cancellation of a certificate issued to another enterprise;
(f) the commencement or cessation of exports;
(g) the attainment or otherwise of a certain number of employees;
(h) the expenditure of monies under Sections 28(9) and 36C(7) of the Act on terms and conditions set by the Authority.

8. REGISTER OF CERTIFICATES.

The fee payable under Section 30(3) of the Act is K10.00.

9. STOCK EXCHANGE.

For the purposes of Section 32 of the Act, the prescribed stock exchanges are those being members of Federation International des Bourses de Valeurs (FIBV).

10. VARIATION.

[11](1) An application under Section 33 of the Act for a variation of activities, location of carrying on business or another prescribed term or condition of a certificate issued under Section 33 of the Act shall be in Form 5.

(2) The fee payable on an application for variation under Section 33 of the Act is K200.00.

11. REGISTER OF FOREIGN INVESTMENT OPPORTUNITIES.

(1) A foreign investment opportunity notice under Section 34(1) of the Act shall be in Form 6.

(2) A foreign investment opportunity notice under Section 34(2) of the Act shall be in Form 7.

12. FACILITATION OF NEW INVESTMENT.

The fee payable under Section 35 of the Act is K50.00 for each hour of time actually spent in assisting the enterprise or such other fixed or lump sum amount, based on an estimate of the time likely to be spent in assisting the enterprise, as shall be determined by the Managing Director.

13. CANCELLATION OF CERTIFICATES.

[12](1) A notice of cancellation or suspension under Section 36(1)(d) of the Act shall be in Form 8.

(2) A notice of suspension under Section 36(1)(e) of the Act shall be in Form 8.

14. PERMISSION TO CARRY ON BUSINESS TEMPORARILY.

(1)[13] [14]For the purposes of Section 36(3) of the Act foreign enterprise shall apply to the Authority in Form 9 to carry on business temporarily for the purpose of winding up.

(2) The Authority shall consider an application under Subsection (1) and shall grant permission in Form 10.

14A. APPLICATION FOR CERTIFICATION.

[15]An application for certification made under Section 36C shall be in Form 11 and shall contain the particulars required by that form.

14B. FEE FOR PURPOSES OF SECTION 36C(2)(D) OF THE ACT.

[16]The fee for the purposes of Section 36C(2)(d) of the Act is K1,000.00.

14C. CERTIFICATE.

[17]A certificate permitting a foreign enterprise to participate in a national enterprise under Section 36E of the Act shall be in Form 12.

14D. APPLICATION FOR VARIATION, ETC.

[18](1) An application under Section 36F of the Act for a variation of activity, location of carrying on business or another prescribed term or condition of a certificate issued under Section 36E of the Act shall be in Form 13.

(2)[19] [20]The fee payable on application for a variation under Section 36F of the Act is K400.00.

15. APPEAL.

[21](1) (1) The fee payable on making an appeal under Section 40(2)(c) of the Act is K200.00.

(2) An appeal to the Minister under Section 40(2) of the Act shall be lodged with the Authority.

(3) Upon receipt of an appeal lodged under Subsection (2) the Authority shall forthwith supply the Minister with a copy of the appeal and all information pertinent to the appeal.

SCHEDULE 1

[22]PAPUA NEW GUINEA.