Examination of Goods in Warehouse

Customs will inform the Warehouse owner/keeper when examination of goods will be carried out. The goods will be opened, examined and then sealed. Goods that have been sealed and marked after examination shall not be opened without the proper permission of Customs.

The owner of the warehouse is responsible for the cost of all operations related to handling of goods in the warehouse. Where the presence of Customs officers are required for such operations, the owner of the warehouse will have to provide at his/her own expenses necessary transportation from the Customs office to the place where these operations are to be performed.

Storage Period for Warehousing Goods

Generally, the warehousing   period is one year from the  date the goods first entered the warehouse; which means goods have to be cleared within one year. Where the warehouse goods cannot be cleared within one year from the date of first entry, an application for re-warehousing must be submitted by the owner or warehouse keeper. The total period of time for which such merchandise may remain in bonded warehouse shall not exceed 5 years from the date of importation.

In cases where there is an application to re- warehoused goods or goods which have been re- warehoused are not cleared within 5 years the BCBP will issue a one month notice  to  the  owner  after  which goods may be seized or disposed in accordance  with RPPL No. 11-15.

Removal of Goods from Warehouse

Goods can only be removed from the warehouse after a Customs Entry has been accepted and the appropriate duty, taxes and levies have been paid.

Upon authorization of the Director of Customs which can impose certain condition warehousing goods can be temporarily removed from the warehouse to undergo handling operations with the intention to:

• Preserve the goods
• Improve the appearance of the goods
• Improve the marketable qualify of the goods
• Prepare the goods for distribution/resale.

Withdrawal of Goods from Warehouse without Payment

• Any merchandise for exportation or for transportation and exportation to a foreign country without the payment of excise tax, thereon, or for transportation and re-warehousing at another port or elsewhere, or
• for transportation and re-warehousing at another port or elsewhere, or
• for transfer to another bonded warehouse at the same port, except that the total period of time for which such merchandise may remain in bonded warehouse shall not exceed 5 years from the date of

Transfer and Removal of Goods

• Where there is a transfer of ownership of goods stored in a bonded warehouse, the importer or owner of the goods shall submit a transfer document in the prescribed form to an officer at the office where the goods were
• Where the importer or owner of goods stored in a bonded warehouse wants the goods removed from the bonded warehouse in smaller units, the importer or owner shall submit to the Bureau:
  • Where the goods are to be released, an amended accounting in a form to be prescribed by the Director; or
  • Where the goods are not to be released, an amended description in the prescribed form.

Abandoned Goods

Merchandise upon which any excise tax or storage of fees are unpaid, remaining in bonded warehouse beyond five (5) years from the date of importation, shall be regarded as abandoned. Title in abandoned merchandise shall automatically vest in the government. The Bureau may sell such merchandise pursuant to law. The proceeds of sale shall be paid into the Road Maintenance Fund.

Merchandise upon which all excise tax and charges have been paid remaining in bonded warehouse beyond five (5) years from the date of importation, shall be considered unclaimed and treated accordingly to Section 1229 (Unclaimed Merchandise) of this Title (RPPL 11-15. Customs Bonded Warehouse).

Unclaimed Goods

• An un-entered merchandise which shall remain in a bonded warehouse for six (6) months, but less than five (5) years, from the date of importation thereof, without all estimated taxes, fees and interest thereon having been paid, shall be considered unclaimed and subject to divestiture of title to the government, and subject to sale by the Director free and clear of any leans or
• Once merchandise is deemed unclaimed, the Bureau shall provide thirty (30) days’ notice to all know interested parties that the title to such merchandise is subject to divestiture on the 30th day after the date of the notice. IF not interested party is know, such notice shall, at a minimum, include publication in one local newspaper of general circulation once per week for three consecutive weeks, the notice period running thirty (30) days from the first date of publication. Notice shall contain the date, time, and location of any
• Unclaimed merchandise may be reclaimed during the notice period provided that:
  • Prior to the 30th day of the notice period, the consignee or owner pays the Bureau a reclamation penalty equal to five (5) percent of the fair market value for such merchandise as determined by the invoice value, and
  • Immediate payment of any excise taxes, storage fees, and interest thereon. No unclaimed merchandise may be entered, exported, or withdrawn by the owner or consignee until such payment is
  • For purpose of this section, the computation of excise taxes, storage fees, and interest thereon shall be subject to rates applicable at the time the merchandise is reclaimed or sold.

Loss of Damaged Goods in Warehouse

Where  goods  are  destroyed  or  lost  in  a  bonded  warehouse,  the  owner  must  notify  Customs     in writing within 2 days after the  discovery  of  the  loss  or  destruction  of  the  warehoused  goods.  The warehouse keeper is not liable for total destruction or irretrievable loss  of  goods  in  the  warehouse if it has happened as a result of unforeseen circumstances.

If there  are  any  applicable  duties  /  taxes  /  levies  on  the  goods  that  have  been  damaged  due  to unavoidable accident, an assessment of the goods  can  be  done  at  the  request  of  the  owner. The assessment will be based on the actual value of the goods and a new bond will be agreed upon for the remaining term of warehousing.

Revocation of Approval

The warehouse keeper or  owner  has  the  obligation  to  adhere  to  all  conditions  of  the  operations of the  bonded  warehouse.  Failure  to  do  so  may  result  in  the  bonded  warehouse  approval   being revoked  or  canceled  in  the  event  of  a  breach  of  any  condition  of   the   bond,   the   bonded warehouse to be locked and sealed and all taxable merchandise stored in a  bonded  warehouse shall become payable immediately.

Where  the  approval is revoked, the Director  shall  before  canceling  a  license  give  the  licensee  a  ninety  (90)  day  notice  of  proposed  cancellation  and  provide  the  licensee  with  all   the   relevant information concerning  the  grounds  on  which  the  Director  proposes  to  cancel  the  license. Upon a final determination  by  the  Director  to  cancel a license, all  excise  taxes  on  taxable merchandise stored in a bonded warehouse shall become payable immediately.

The Licensee may, within ninety (90) days of   the   notice,   make   representation as to why the licensee should not be canceled. Upon final determination by the   Director to cancel a license, the liability  must  be  paid  or the goods  must  be exported, destroyed, surrendered to Customs or moved to another approved warehouse at the discretion of the Director of Customs.

The Director may reinstate a suspended license where the cause  for  the  suspension  no  longer exists. Within ninety (90) days, the Director must either cancel or reinstate the license.

For more information, you should visit the BCBP or write to us.

Visit:

Bureau of Customs and Border Protection

Main Office, Malakal, Koror, Palau

Write to:

PO Box 6011

Koror, Palau 96940

Phone: (690) 488-1985/6031

E-mail: customs@palaugov.org

Web: bcbp.pw