Motor Vehicle Dealers

Licensing of motor vehicle dealers is provided for under the Motor Car Dealers Act 1976 as amended by the Motor Car Dealers (Amendment) Act 2017.

A person who sells three or more motor vehicles in any period of 12 months for profit or reward other than to a licensed dealer, is deemed to be a dealer and must be licensed.

A dealer includes a person who, otherwise than in the capacity of an employee-

  1. carries on the business (whether or not he or she carries on any other business) of-
    1. selling new motor cars; or
    2. selling second-hand motor cars; or
  2. holds himself or herself out in any way as carrying on the business of trading in motor vehicles.

A private individual or a company that:

  1. imports a vehicle for their own use; or
  2. imports vehicles to sell to a licensed dealer; or
  3. imports 1 or 2 vehicles in a 12 month period for sale other that to a licensed dealer,
may legally import a motor vehicle into PNG without being a licensed dealer.

The information on this page is a summary of the provisions as they relate to a person applying for a licence. See the Act for all the provisions relating to motor vehicle dealers. HERE

Application for a motor car dealer's licence

A person may apply for a licence to conduct the business of–

  1. a dealer in new motor vehicles; or
  2. a dealer in second-hand motor vehicles.

An application for a licence or renewal of a licence should be–

  1. made to–
    • for a dealer located in NCD or in the Papua Region (Central, Gulf, Milne Bay, Oro (Northern), and Western (Fly River) Provinces)–
      • the RTA Operations Office, Kunai Street, Hohola, Port Moresby
    • for a dealer located in other regions–
      • Highlands Region – RTA Regional Office, Kungtang Street, Mt Hagen
      • Momase Region – RTA Regional Office, 3rd Street, Lae
      • Islands Region – RTA Regional Office, Aidik Street, Kokopo.
    using this form [downloadable Form 81]; and
  2. in respect of premises approved for the purpose by an authorized officer; and
  3. accompanied by the prescribed fee; and
  4. accompanied by such evidence as the RTA requires of the applicant’s financial ability to carry on the business of a licensed dealer and as to his or her character,
and shall state that the application is made on behalf of the applicant and for his or her sole benefit, or on behalf of and for the benefit of him/herself and other persons whose names and addresses and the extent of whose interest in the business in respect of which the application is made shall also be set out in the application.

The fee payable for a licence and for each renewal of licence is K1,000.00.

The RTA may grant or refuse an application for a licence.

A licence is subject to such conditions (if any) as are specified in the licence and permits the licensed dealer specified in the licence to carry on the business of trading in the class of motor vehicles and at the premises specified in the licence.

A licence will be issued in respect of one place of business only.

Where a licensed dealer conducts his or her business at more than one place of business he or she must obtain a separate licence for each place of business.

A licence shall be endorsed with the address of the place of business in respect of which it is issued.

A licence remains in force for 12 months.

Where a licence is granted to a person who has applied for the licence on behalf of and for the benefit of himself and other persons, the licence will contain an endorsement of the names and addresses of the persons other than the licensed dealer in respect of whom and for whose benefit the licence is granted.

Where a licence is endorsed, a person, whose name is not endorsed on the licence, who, without the approval of the RTA, acquires or holds an interest in or derives any benefit from the business carried on by the licensed dealer is guilty of an offence.

Deposits by licensed dealers

It is a condition of a licence that the licensed dealer will at all times during the currency of the licence maintain with the Department of Finance a deposit of K3,000.00.

The RTA may require a licensed dealer, at all times during the currency of the licence, to maintain with the Department of Finance, in place of a deposit, a bank guarantee or other security of K3,000.00 in a form approved by the Minister.

Any money so deposited remains the property of the licensed dealer but any interest arising out of the investment of the money by the Minister shall be paid by him into the Consolidated Revenue Fund.

Any deposit, and the bank guarantee or other security is security for the discharge of the liabilities of the licensed dealer arising under the Motor Car Dealers Act, and is not applicable in the discharge of any other liabilities of the licensed dealer until those first-mentioned liabilities have been discharged or otherwise provided for to the satisfaction of the RTA.

Any deposit, and the bank guarantee or other security will not be returned to the licensed dealer after the date on which he or she ceases to be a licensed dealer unless the RTA is satisfied that the liabilities of the licensed dealer in respect of–

  1. any repairs required to be made by the dealer under Section 21 of the Act have been made; and
  2. any repairs required to be made or any maintenance required to be carried out by that dealer under any warranty or guarantee given by the dealer on the sale of a new motor vehicle,
have been made or carried out, as the case may be, or otherwise provided for to the satisfaction of the RTA.

Renewal of licence

A licence may be renewed by the RTA from time to time for further periods each not exceeding 12 months.

A renewal of a licence may be on the same conditions as the original licence or, if the RTA so determines, on different conditions.

The RTA, where it is satisfied that a licensed dealer–

  1. has committed an offence against the Act; or
  2. has failed to perform a duty that he or she is required to perform under the Act; or
  3. is not a fit and proper person to continue to hold a licence; or
  4. has failed to comply with a condition of the licence,
may refuse to renew the licence.

Production of motor car dealer's licence

Every licensed dealer must, at the premises where he or she carries on business, produce his or her licence or licences when required to do so by an authorized officer.

Duplicate licence

Where the RTA is satisfied that a licence has been lost or destroyed it may, on payment by the licence holder of the prescribed fee, issue a duplicate licence.

The fee payable for a duplicate licence is K100.00.

Authorized officers

The Minister may, from time to time, by notice in the National Gazette, appoint persons to be authorized officers for the purposes of the Motor Car Dealers Act.

An authorized officer may at all reasonable times–

  1. enter any building or premises where a licensed dealer carries on his business; and
  2. inspect any motor vehicles offered or displayed for sale; and
  3. inspect the licensed dealer’s record of second-hand motor vehicles kept under Section 19 of the Act; and
  4. inspect the licensed dealer’s record of transactions kept under Section 20 of the Act.