The Ministry of Finance encompasses the Bureau of Customs and Border Protection. The Bureau has a mandate to implement the collection of revenue and to secure Palau’s borders from illicit trade and other criminal activities, whilst facilitating legitimate trade and protecting its unique environment.

Customs activities at the points of entry are professional and thorough with a central customs database for recording and processing the importation of all goods into Palau. All processing for customs clearance must go through this database to be assessed and recorded. The Bureau has offices and inspectors at both the Palau International airport and Malakal Port – the two international points of entry.

Bear in mind that for tax exemption requests, the Ministry of State is the government entity that facilitates and evaluates any request for exemption for the import of humanitarian goods.

Duties and Tax Exemption

For contact information regarding government custom authorities, please see: 4.1 Palau Government Contact List

Emergency Response

Procedures during emergency and non-emergency times do not differ. There is no national legislation or regulation, neither for streamlining the exemption process at such times, or providing a blanket exemption to organisations who may be permanently registered and present in country.

Agreements / Conventions Description	Ratified by Country? (Yes / No)
WCO (World Customs Organization) member	No
Annex J-5 Revised Kyoto Convention	Yes 10 .12.1999, Amendment 10.3. 2015
OCHA Model Agreement	No
Tampere Convention (on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations)	No
Regional Agreements (on emergency/disaster response, but also customs unions, regional integration)	Palau Compact of Free Association with US (this however does not apply to disaster assistance)

Exemptions to Regular Regime (Non-Emergency Response)

The procedures for tax exemption during non-emergency times are reviewed on a case-by-case basis through the Bureau of Customs and Border Protection and through the Ministry of State.

For government legislation items 5 & 6 of the Palau customs regulation, see Annex 5.1.

Specific goods funded by foreign aid programs, and imports for the purposes of humanitarian assistance will, upon the request of the Ministry of State (to the Bureau of Customs and Border Protection) be granted an exemption. No standing agreement or legislation exists relating to the automatic blanket exemption of goods for use by humanitarian organisation either permanently registered in country or temporarily responding. It is exclusively up to the importer/consignee to apply for an exemption. There is also no legislation or regulation for streamlining the process. However, tax and duty exemption will be provided and considered as a priority during times of disaster.

For more information see: http://www.palaucustoms.org/service_01_1_detail.aspx?sn=3fcc1157-16cc-432c-97c4-319c7cdbd168

Organisational Requirements to obtain Duty-Free Status
United Nations Agencies
Organisations and agencies are not able to obtain blanket duty-free status. Organisations considering a permanent presence in Palau will need to be registered and provide organisational constitutions, charters and details of their mission to undertake the registration process. Duty-free exemption however remains on a case-by-case basis. Diplomatic personnel and goods belonging to diplomatic personnel and representatives are tax exempt, but are required to follow the same process for exemption.
Non-Governmental Organisations
NGOs are required to follow the above process and can only apply for exemption on a case-by-case basis.

Exemption Certificate Application Procedure

Duties and Taxes Exemption Application Procedure
Generalities
The tax exemption process requires standard transport and shipping documentation for each consignment requiring an exemption. Consignment Documentation Required: Copy Air Waybill/ Bill of Lading Copy Commercial Invoice (Indication of value of goods.) Itemised Packing List Letter of Donation detailing consignee if being donated to NEMO or Govt Department. Letter of Request to Ministry of State for duty and tax exemption detailing purpose of use i.e. humanitarian disaster relief or foreign aid program
Process to be followed
Time Frame The normal process of applying for tax exemption can be anything from a few days to 1-2 weeks. During times of emergency exemptions can be processed in a matter of hours (as indicated by Ministry of State Official and Director of Customs).
A) Pre-Shipment Approval: Goods donated to Palau Govt Entities and Agencies For all goods being donated to Government entities and agencies it is essential that prior to shipment, approval from the departments as the consignee, has been granted. This includes NEMO, Departmnt of Health and all other departments. It is advisable (though not stipulated), that there must be documented approval of the packing list and the agreement to receive the goods consigned. B) Obtain Dispatch Documents from Point of Origin Original Bill of Lading/ Airway Bill Commercial Invoice/ Invoice for value of goods in consignment Itemised packing list Letter of Donation (if applicable) C) Send Original Documents Courier copies or original documentation - specific to consignment to the in-country contact. Shipping Agent if relevant National Office or organisation If NEMO or Govt Department are consignees, they must be notified prior to dispatch. D) Arrival of Documents Obtain Request for Tax exemption letter from Govt Dept or Organisation to complete, i.e. from consignee. E) Submit to NEMO Take all original documentation to NEMO to facilitate exemption request to Ministry of State. N.B. A consignee can request directly to the Ministry if State for an exemption decision; however in a State of Emergency it is advisable to coordinate activities through NEMO. F) Ministry of State Approval The Ministry of State makes a ruling as to the validity of the exemption requests and writes a letter to the Bureau of Customs and Border Protection agreeing to an exemption. G) Take Approval Documentation to Bureau of Customs. Take all approval documentation to Customs Office at Malakal. The customs director will approve the exemption, and documents can be taken to the agent or point of entry customs officials for release.

Exemption Certificate Document Requirements

Duties and Taxes Exemption Certificate Document Requirements (by commodity)
	Food	NFI (Shelter, WASH, Education)	Medicines	Vehicle & Spare Parts	Staff & Office Supplies	Telecoms Equipment
Invoice	1 x copy	1 x copy	1 x copy	1 x copy	1 x copy	1 x copy
AWB/BL/Other Transport Documents	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy
Donation/Non-Commercial Certificates	Yes: Letter of Donation 1 x Copy	Yes: Letter of Donation 1 x Copy	Yes: Letter of Donation 1 x Copy	Yes: Letter of Donation 1 x Copy	Yes: Letter of Donation 1 x Copy	Yes: Letter of Donation 1 x Copy
Packing Lists	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy
Other Documents	Letter of Duty and Taxes Exemption, Original	Letter of Duty and Taxes Exemption, Original	Letter of Duty and Taxes Exemption, Original	Letter of Duty and Taxes Exemption, Original	Letter of Duty and Taxes Exemption, Original	Letter of Duty and Taxes Exemption, Original
Additional Notes
Medical Items - There are no specific requirements for import of medical items other than outlined above. Vehicles - There is no specific documentation requirement for the import of vehicles for use in humanitarian or disaster programs. Communications Equipment - There are no specific requirements for the importation of satellite phones/VHF or HF radios It is suggested that multiple copies of documents be made available to ensure the clearance process is unhindered).

Customs Clearance

General Information

Customs Information
Document Requirements	As outlined above
Embargoes	None
Prohibited Items	Firearms, illegal drugs
General Restrictions	There are no general restrictions

Customs Clearance Document Requirements

Customs Clearance Document Requirements (by commodity)
	Food	NFI (Shelter, WASH, Education)	Medicines	Vehicles & Spare Parts	Staff & Office Supplies	Telecoms Equipment
D&T Exemption Certificate	1 x original	1 x original	1 x original	1 x original	1 x original	1 x original
Invoice	Yes: 1 x original	Yes: 1 x original	Yes: 1 x original	Yes: 1 x original	Yes: 1 x original	Yes: 1 x original
AWB/BL/Other Transport Documents	Yes: 3 x Original	Yes: 3 x Original	Yes: 3 x Original	Yes: 3 x Original	Yes: 3 x Original	Yes: 3 x Original
Donation/Non-Commercial Certificates	Yes: Letter of Donation 1 x Original 1 x copy	Yes: Letter of Donation 1x Original 1 x copy	Yes: Letter of Donation 1 x Original 1 x copy	Yes: Letter of Donation 1 x Original 1 x copy	Yes: Letter of Donation 1 x Original 1 x copy	Yes: Letter of Donation 1 x Original 1 x copy
Packing Lists	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy	Yes: 1 x copy
Phytosanitary Certificate	No	No	No	No	No	No
Other Documents
Additional Notes
UN/NGOS There is no difference in the documentation required to undertake the customs clearance. Used clothing For the import of used clothing items, no phyto-sanitary certificate is required to facilitate the import. However, such goods will be inspected by quarantine. Should there be identifiable contamination the container will be decontaminated at cost to the consignee.

Transit Regime

All goods coming into Palau must come either through Malakal Port or through the Palau International Airport. Neither the port nor airport have bonded facilities to accommodate transit goods. Sealed containers (sea freight) that are proposed for transit purposes could, with prior approval of the port operators and customs, be considered on a case-by-case basis during exceptional circumstances. Applications would need to be made to the Director of the Bureau of Customs and Border Protection at Malakal.