How To Obtain A PNG Cocoa Export License

The Cocoa Board of Papua New Guinea is the sole authority that issues licenses to companies/exporters who meet the requirements to export cocoa from PNG each year. The cocoa export license issued by the Cocoa Board is valid for one (1) year only, all licenses expire on 30th September each year.

Requirements for Cocoa Export License

The following are Guidelines on the requirements which need to be satisfied before the Cocoa Board would consider issuing a license to export cocoa.

A. INTRODUCTION

  1. Any application that does not fulfill one or more of the guidelines will be rejected. Therefore full documentation of each of the guidelines is essential for the application to be considered at all by the Board.
  1. No person except the Board has the right to export cocoa from PNG. An export license issued by the Board is a consent to export cocoa on behalf of the Board and can be terminated at any time.
  1. Reports on progressive achievements of any conditions endorsed by the Board must be submitted for annual review. All licenses expire on 30th September each year.
  1. An export license is not transferable.
  1. These guidelines replace all previous guidelines and Board directives on the registration of Exporters.

B. CREDIT WORTHINESSS & FINANCIAL STANDING

  1. New applicants and existing registered exporters must demonstrate their financial ability through evidence of overdraft facilities or cash at the bank for purpose of cocoa exporting. This must be verified by a letter from a bank together with bank statements.
  1. The minimum financial requirements for a cocoa exporter is K300,000.
  1. Any credit arrangements with overseas companies and partners must be approved by the Board. The company must demonstrate that this is strictly a credit arrangement and provide all the necessary supporting documents.

C.  CORPORATE DETAILS (SHAREHOLDING)

  1. New applicants should be wholly Nationally-owned PNG registered companies with preference given to broad-based grower shareholding. Companies and their employees who already have shares in existing registered export companies either directly or indirectly are disqualified.
  1. Registered exporters with overseas shareholding are required to conform with the Investment Promotion Authority requirement for a national enterprise status-which means 50 percent or more ownership by nationals. They have a period of six (6) months to obtain 51 percent national shareholding.
  1. Registered exporters shall not hold shares in the other export companies. The Board must be advised of any changes in shareholding.
  1. Corporate details that must be submitted are:

All Applicant’s:

a) List of Shareholders/Copy of share register;
b) List of Board of Directors;
c) Audited Accounts for the last three years or a certified financial statement for a registered accountant;
d) Copy of Certificate of Registration;
e) Memorandum and Articles of Association.

D.  MANAGEMENT EXPERTISE

  1. Each exporter must be a qualified cocoa trader of international repute who can demonstrate expertise in international cocoa trading, quality control and general marketing of cocoa. The management and trading credentials of the individual(s) must be included in the submission.
  1. The Board may accept a management agreement with an overseas partner but any such arrangement must be fully documented and subject to the Board’s approval.

E.  TRAINING OF NATIONALS

  1. It is a pre-requisite for each exporter to train PNG nationals on all facets of cocoa training under relevant Government legislation and regulations. The Board requires copies of exporters training program.
  1. All exporters seeking renewal must demonstrate that reasonable efforts have been undertaken to train nationals and localize expatriate held positions.

F.  EXPORT PERFORMANCE

  1. The minimum export value of any exporter is 1,000 tonnes per annum. Any exporter not meeting the minimum volume will be required to show cause why its license shall not be cancelled.

G.  WAREHOUSE & FACILITIES

  1. Each exporter must have its own winnower or grader/cleaner, cut-test equipment, moisture meter and bagging and marketing equipment.
  1. The exporter must undertake to purchase from registered premises only. Any exporter in breach of this conditions will have its license suspended.

H. QUALITY CONTROL

  1. Cocoa for export must be graded. Marked and packed according to the specifications provided by the Board.
  1. The specification of any shipment of cocoa must match the description as marked upon the bags and in the shipping documents relevant to it.
  1. Exporters trading in certified organic cocoa must have copies of certification documents from an approved agency authenticating every smallholder farm, block or plantation from which any such cocoa for export has originated.
  1. Similar documentation covering all factories and warehouse through which cocoa has passed must be submitted to the Board. Cocoa said to be organically produced will not be certified for export unless current and proper authentication is available.

I.  SALES OBLIGATION

  1. Each exporter must observe their contractual obligations both to suppliers internally and buyers overseas.
  1. All contracts with processors must be sent to the Board. Serious breaches of domestic and overseas contractual obligations will result in the termination of the license.

J.  EXPORT PRICES/REGISTRAION

  1. All export contracts must be registered with the Board under the appropriate Sales Contract Form and ICCO Form 1.
  1. Exporters will be requested to show cause and justify in the case where sales contract prices fall below 10 percent of the world market price. Failure to justify divergence will result in a penalty equivalent to the different times the tonnage involved. Continuous breaches will result in suspension and eventual termination of license.

K.  MONIES DUE TO THE BOARD

  1. Any monies due to the Board shall be settled within 30 days in accordance with normal accounting practice. Any exporter with monies owing over the required period shall have its license suspended.

L.  FAILURE TO TRADE

  1. Any exporter that fails to trade in any one year shall not have its license renewed.

M.  PURCHASES FROM UNREGISTERED PERMANTARIES

  1. Licensed exporters are prohibited from making purchases from unregistered fermentaries. Any exporter caught in breach of this condition shall be penalized by paying K500 fine and deducting the late registration fee.

N.  APPLICATION/REGISTRATION FEES

  1. The closing date for receiving applications for export licenses (including renewals) is 31st July of each year.
  1. A non-refundable application fee of K200 shall be paid when an application for an export license is lodged with the Board.
  1. A non-refundable fee of K500 shall be payable to the Board if an application is received after the closing date.
  1. Any incomplete application will be subject to an additional non-refundable fee 0f K200.
  1. License fee for an exporter shall be K2, 323.20 for a major port and K950.40 for a minor port. The license fee shall be refunded to the applicant if his application is unsuccessful.

O.  REVIEW OF CONDITIONS

  1. The Board may by within ten (10) working days review, amend and revise any of the conditions of an exporter’s license.
  1. The Board shall revoke an export license issued to a registered exporter, if the exporter is proven to have supplied false or incomplete information or inaccurate or misleading information when an application was first lodged.

For further information or clarification to your query or on the above guidelines please lease directly with the Cocoa Board of PNG on telephone (675) 982 9083 or by email PNG Cocoa Board

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