1 Micronesia Country Profile

1 Micronesia Country Profile


Generic Information

he Federated States of Micronesia abbreviated FSM and also known simply as Micronesia is an independent sovereign island nation and a United States associated state consisting of four states – from west to east, Yap, Chuuk, Pohnpei (also known as "Ponape") and Kosrae – that are spread across the Western Pacific Ocean. Together, the states comprise around 607 islands (a combined land area of approximately 702 km2 or 271 sq mi) that cover a longitudinal distance of almost 2,700 km (1,678 mi) just north of the equator. They lie northeast of New Guinea, south of Guam and the Marianas, west of Nauru and the Marshall Islands, east of Palau and the Philippines, about 2,900 km (1,802 mi) north of eastern Australia and some 4,000 km (2,485 mi) southwest of the main islands of Hawaii. While the FSM's total land area is quite small, the country's waters occupy more than 2,600,000 km2 (1,003,866 sq mi) of the Pacific Ocean, giving the country the 14th-largest exclusive economic zone in the world.The sovereign island nation's capital is Palikir, located on Pohnpei Island  

The Federated States of Micronesia is governed by the 1979 constitution, which guarantees fundamental human rights and establishes a separation of governmental powers. This constitution constructs the national government to be similar to – but not exactly alike – that of the United States. 

Generic country information can be located from sources, which are regularly maintained and reflect current facts and figures. For a generic country overview, please consult the following sources: 

Federated States of Micronesia Wikipedia Country Informationhttps://en.wikipedia.org/wiki/Federated_States_of_Micronesia

Federated States of Micronesia IMF Country Informationhttp://www.imf.org/en/Countries/FSM

Humanitarian Info

Federated States of Micronesia World Food Programme Information - No Country Office

Federated States of Micronesia UN Office for the Coordination of Humanitarian Affairs Information http://www.unocha.org/office-pacific-islands/federated-states-micronesia

 Micronesia Economist Intelligence Unit Information*-There is no page for FSM 

(*note - this is a paid service) 

Facts and Figures

Federated States of Micronesia Wolfram Alpha Information http://www.wolframalpha.com/input/?i=micronesia 

Federated States of Micronesia World Bank Information http://www.worldbank.org/en/country/pacificislands/overview

Federated States of Micronesia Population Informationhttps://worldpopulationreview.com/countries/micronesia-population 



1.1 Micronesia Humanitarian Background


Disasters, Conflicts and Migration

Natural Disasters

Type

Occurs

Comments / Details

Drought

Yes

Affected as part of the Pacific drought between 2015-2017.

Earthquakes

Yes Earth tremors- No earthquakes have caused any significant damage in the last 2 decades

Epidemics

Yes

Cholera 1999 

Dengue Outbreak - October 2016

Influenza A (H1N1) Pandemic - April 2009, August 2022

COVID 19 - July 2022 

Extreme Temperatures

No

Flooding

Yes Isolated usually coincides with King tide and La Nina periods

Insect Infestation

No

Mudslides

Yes Chuuk state Piis Paneau Mudslide 2002, Pohnpei 1998,2007

Volcanic Eruptions

No

High Waves / Surges

Yes Severe Sea Swell Floods – December - February

Wildfires

No Occur periodically in Chuuk

High Winds

Yes Tropical Cyclones

Man-Made Issues

Civil Strife

No


International Conflict

No

Internally Displaced Persons

No

Refugees Present

No

Landmines / UXO Present

No Chuuk, Pohnpei

For a more detailed database on disasters by country, please see the Centre for Research on Epidemiology of Disasters Country Profile

Seasonal Effects on Logistics Capacities

Seasonal Effects on Transport

Transport Type

Time Frame

Comments / Details

Primary Road Transport

Nov - Apr

Cyclone season can affect island roads or access tracks where causeways have been constructed to allow travel between and around islands. During the cyclone season high winds associated with high seas and especially king tides can affect causeway access and have caused damage especially on atolls. This damage often limits the passage or results impassable roads. 

Secondary Road Transport

NA

Rail Transport

NA

Air Transport

Yes Storm and cyclone season can affect scheduled flights however these are mostly between the four main states capital serviced by larger aircraft. Most islands are not serviced by air. 

Waterway Transport

Yes Inter-island transport from Pohnpei and other state capitals forms the critical supply link to the outer islands. During the Storm season, November to April, inter-island transport is affected by high seas which will delay deliveries to islands. All atolls, having a lagoon can, in almost all cases, receive vessels for re-supply assuming reef depth is sufficient.

Seasonal Effects on Storage and Handling

Activity Type

Time Frame

Comments / Details

Storage

All year

The climate in FSM is hot and humid with the Island of Pohnpei, central and southern islands receiving the most rainfall. The northern islands tend to be drier. Climate influences do not severely affect the storage of local goods.   

Handling

All year Cyclone season occurs between November and April. During this time and although cyclones are not as prevalent in the North-East Pacific, high seas with the increase in the easterly trade winds can cause issues with inter-island transport. Wetter weather can cause handling issues especially in exposed dock areas and transshipment of goods to smaller tenders when in the Outer Islands. 

Capacity and Contacts for In-Country Emergency Response

GOVERNMENT

Emergency response operates nationally through the Department of Environment Climate Emergency Management (DECEM) in Palikir. Disaster coordination offices are present in each of the state capitals and have designated Disaster Coordination Officers (DCO). The DECEM provides the coordination and framework for Emergency response. The DCO at state level coordinates operational response in their respective regions. The cluster structure has not been established however it remains an organisational goal at DECEM to see its implementation. Outside major emergency responses DECEM and DCO are responsible for coordinating Sea Search and Rescue Operations in conjunction with US Coast guard based in Guam.    

FSM Government relies significantly on international assistance during normal times and emergency situations. While DECEM is recognised as the emergency response structure mechanism nationally, state disaster coordination offices are in a capacity development phase and will need to be provided support to develop more effective responses at state level. FSM will continue to rely on outside sources in the case of larger emergencies. FEMA provide funding for disaster response if the assessed cost of a disaster is over USD 1m, under this figure, funding relies on the FSM Government’s own resources. FEMA funding is channeled through USAID to their implementing partners, IOM provide the response mechanism on the ground. To trigger this level of aid the Presidents of FSM and the USA must declare it a state of emergency.  

Due to a limitation of resources, established businesses operating in the states’ capitals often assist small vulnerable groups where possible. The National Oceanic Resources Management Authority (NORMA, the Government agency responsible for managing the FSM’s fisheries resources) will also respond by communicating to the fishing fleets in FSM waters. 

The US Coast Guard provides surveillance aircrafts for search and rescue, but military involvement in disaster response has been minimal and ad-hoc. Military (external) response assistance is not a part of any response planning and there are no formal frameworks.      

For more information on government contact details, please see the following link: 4.1 Micronesia Government Contact List 

HUMANITARIAN COMMUNITY 

IFRC have a National office in Kolonia and are represented in the four states with prepositioned emergency NFI in container storage in each state (200 x family packs in Pohnpei and Chuuk, 100 x family packs in Yap and Kosrae). They work closely with UNICEF and IOM and sit on the National Disaster Response Committee. USAID have a strong presence in the region and have provided funding for UNDP, UNICEF and IOM who have ongoing programs throughout the region focused on disaster resilience and capacity building, prepositioning emergency stocks, education, water sanitation, health and nutrition, COVID responses and child protection. 

For more information on humanitarian agency contact details, please see the following link: 4.2 Humanitarian Agency Contact List

1.2 Micronesia Regulatory Departments and Quality Control

The politics of the Federated States of Micronesia (FSM) takes place in a framework of a federal representative democratic republic. The President of the Federated States of Micronesia is both head of state and head of government. Executive power is exercised by the president and his cabinet, while legislative power is vested in both the president and the congress. The judiciary is independent of the executive and the legislature. 

FSM operates on two separate regulatory levels: national bodies under the FSM Government and at the state level for Pohnpei Chuul, Yap and Kosrae. 

At the National level the following departments are responsible for the listed regulatory functions 

  • Office of the President 
  • Department of Foreign Affairs official requests to the international community for disaster assistance 
  • Department of Resource & Development oversees the Division of  Agriculture under which lays Bio Security and Quarantine and Food Quality, energy, trade and investment 
  • Department of Transportation, Communication, and Infrastructure is responsible for all air and Maritime Activity including Ports Airports and shipping regulations and includes ownership of Government ships in each State
  • Department of Finance and Administration oversees the division of Customs and Tax Administration. The responsibility of the division is to regulate and collect tax revenue and authorise Tax and Duty exemptions on imported goods
  • Department of Health and Social Affairs
  • Department of Justice
  • Department of Education
  • Department of Environment, Climate Change & Emergency Management (DECCEM) is responsible for the preparedness and Disaster response for all National Emergencies
  • Office of Public Defender 

The Environmental Protection Agency (EPA) has a laboratory for quality testing of food and water. Testing of items such as fuel are undertaken by SGS in Guam. 

Further information is available at https://gov.fm/#:~:text=STATE%20GOVERNMENT,includes%20seven%20major%20island%20groups. 

The Compact of Free Association (COFA) is an international agreement establishing and governing the relationships of free association between the United States and the three Pacific Island sovereign states of the Federated States of Micronesia (FSM), the Republic of the Marshall Islands (RMI), and the Republic of Palau. Under the compact, the US federal government provided guaranteed financial assistance over a 15-year period administered through its Office of Insular Affairs in exchange for full international defence authority and responsibilities. Negotiators initiated the Compact of Free Association in 1980. In 2003, the compacts with the RMI and FSM were renewed for 20 years and provided USD 3.5 billion in funding for both countries. An extension of economic provisions under the compact is under negotiation. 

For more information on regulatory departments and quality control laboratories’ contact details, please see the following links:  4.1 Micronesia Government Contact List and 4.3 Laboratory and Quality Testing Company Contact List. 

1.3 Micronesia Customs Information


For contact information regarding government custom authorities, please follow the link below:  4.1 Micronesia Government Contact List

Customs policy, procedures, rules and regulations are the responsibility of the Division of Customs and Taxation Administration (DCTA) of the Department of Finance and Tax Administration. (DFTA) 

While each State maintains various departments, at state level customs is regulated and controlled nationally with an office in each of the four states. 

Duties and Tax Exemption

Duties and tax exemption can be applied for all goods that are part of a foreign aid program and for all goods that are used for humanitarian purposes. Tax exemption requests must be agreed to and approved by the Secretary of the Department of Finance and Tax Administration. 

Applications are made on a consignment or case by case basis and organisations are not given a blanket exemption based on the organisation’s activities. 

All goods which are classified as being goods that fall under the import category of Foreign Aid and also for use in Humanitarian Aid are tax exempted. However, any of these goods being imported under such classification and subsequently sold will attract all taxes. Imported goods that are donated are not taxed. (Source: Department of Customs and Tax Administration (Palikir). 

Emergency Response

[Note: This section contains information that is related and applicable to 'crisis' times. These instruments can be applied when the Government officially declares an emergency.  When this occurs, there is usually a streamlined process to import goods duty and tax-free.] 

Agreements / Conventions Description

Ratified by Country?

(Yes / No)

WCO (World Customs Organization) member

No

Annex J-5 Revised Kyoto Convention

No

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)

Public Law 15-58 section Compact of Free Association with United States

Exemption Regular Regime (Non-Emergency Response)

Duties and tax exemption fall under Section 222 of title 54 1 of the Code of the 2 Federated States of Micronesia Amendment 15-118. Specifically section 6 Refers to the exemption for goods imported for foreign aid projects and Section 9 refers to good used for humanitarian purposes. 

The procedures and polices do not change with the enactment of a state of disaster or emergency. 

The official process to be followed for taxes exemption is the same. 

While an organisation can directly apply for tax exemption directly to the DFTA during non-disaster times, during a national state of emergency they should channel duty and tax exemption requests through the Department of Environment, Climate Change, and Emergency Management  (DECEM) who are the national focal point and cluster coordination focal point and will be able to expedite exemption requests directly to the Secretary.

Organizational Requirements to obtain Duty Free Status

United Nations Agencies

  All UN Organisations are exempt from duties and taxes if the goods are for the use in humanitarian programs assessed on a case by case or individual consignment bases

Non Governmental Organizations

All Non-Government Organisations are exempt from duties and taxes if the goods are for the use in humanitarian programs assessed on a case by case bases individual consignment basis.

Note: Organisations cannot get a blanket exemption based on the organisation activities. (source Assistant Secretary to DCTA)

Exemption Certificate Application Procedure


Duties and Taxes Exemption Application Procedure

Generalities (include a list of necessary documentation)

 

 The Tax exemption process requires only standard transport and shipping documentation to request the exemption.

Documentation Required

  1. Copy Air Waybill/ Bill of Lading
  2. Copy Commercial Invoice. Indication of value of goods
  3. Itemised Packing List
  4. Letter of Donation detailing consignee -If being donated to DECEM or Government Department
  5. Letter of Request for duty and tax exemption detailing purpose of use i.e. humanitarian disaster relief.

Process to be followed (step by step or flowchart)

 

  1. Pre Shipment Approval
    1. Goods donated to FSM Govt Entities and Agencies
    2. 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 DECEM, Department of Health and all other departments
    3. There must be documented approval of the packing list and the agreement to receive the goods consigned

2. Obtain Dispatch Documents from Point of Origin

    1. Original Bill of Lading/ Airway Bill
    2. Commercial Invoice/ Invoice for value of goods in consignment
    3. Itemised packing list
    4. Letter of Donation

3. Send Original Documents

      1. Courier copies or original documentation -Specific to consignment to in country contact.
      2. Shipping Agent if relevant
      3. National Office or organisation
      4. If DECEM or Govt Department consignees  they must be notified prior to dispatch

4. Arrival of documents

a. Obtain Request for Tax exemption letter from Government Dept. or Organisation to complete

5. Submit to DECEM

    1. Take all original documentation to DECEM to facilitate exemption request to DCTA

6. DCTA Approval

      1. Once Exemption is granted take documentation to Customs agent at point of import or shipping agent if applicable


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

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

AWB/BL/Other Transport Documents

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Donation/Non-Commercial Certificates

Yes Letter of Donation

1x copy

Yes Letter of Donation

1x copy

Yes Letter of Donation

1x copy

Yes Letter of Donation

1x copy

Yes Letter of Donation

1x copy

Yes Letter of Donation

1x copy

Packing Lists

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Yes, 1x copy

Other Documents

Letter of Duty and Taxes

Exemption Request Original

Letter of Duty and Taxes

Exemption Request Original

Letter of Duty and Taxes

Exemption Request Original

Letter of Duty and Taxes

Exemption Request Original

Letter of Duty and Taxes

Exemption Request Original

Letter of Duty and Taxes

Exemption Request Original

Additional Notes

Medical Items- There are no specific requirement for import of medical items other than outlined above

Vehicles- There are 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

(Source :Assistant Secretary -Division of Customs and Tax Administration Palikir)

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

Yes 1 x original

Yes 1 x original

Yes 1 x original

Yes 1 x original

Yes 1 x original

Yes 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

1x Original

1x Copy

Yes Letter of Donation

1x Original

1x Copy

Yes Letter of Donation

1x Original

1x Copy

Yes Letter of Donation

1x Original

1x Copy

Yes Letter of Donation

1x Original

1x Copy

Yes Letter of Donation

1x Original

1x Copy

Packing Lists

Yes 1 x original

Yes 1 x original

Yes 1 x original

Yes 1 x original

Yes 1 x original

Yes 1 x original

Phytosanitary Certificate

No

No

No

No

No

No

Additional Notes

Used clothing

For the import of used clothing items no phytosanitary 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

No ports in Micronesia have bonded facilities but can however store full containers for goods in transit.