Import Procedure

Customs Clearances

The Bureau of Customs and Border Protection (BCBP) has jurisdiction to clear imported goods. Local importers are responsible for obtaining formal customs clearance for goods. All commercial importers are to ensure that an accurate and correct customs entry (SAD) is made with payment of all customs charges, and compliance with all BCBP legislative and regulation requirements. For more information, please contact BCBP.

Importers are expected to complete the customs documentation or utilize the services of a customs broker or agent.

The Procurement Office is responsible for customs clearance, delivery, logistics, and warehousing for all government ministries and departments.

Biosecurity Clearances

Importers must obtain import licenses or permits from the Division of Biosecurity for certain types of agricultural commodities, such as rice, dairy, poultry, and meat. Clearance procedures for sea containers generally involve declaration on cargo manifest, inspection of containers and inspection of goods. If import conditions are not complied with and/or all required documents are not presented, then Biosecurity will take appropriate measures to eliminate any Biosecurity risks. These measures can range from detention of the goods for verification, treatment of the goods or destruction. Upon inspection, once all the import conditions are met and no biosecurity risk is detected, the goods are released. Biosecurity treatment for imported goods includes fumigation, steam cleaning and spraying amongst others.

Biosecurity Import permit applications can found on BOA website: https://www.palaugov.pw/executive-branch/ministries/agriculture-fisheries-and-environment/bureau-of-agriculture/

Lodging an import declaration:

The first stage of the import clearance procedure is to lodge an entry or Customs Entry Declaration Form called the Single Administrative Document (SAD) through the ASYCUDAWorld system. The entry can only be lodged by a registered user of the ASYCUDA system or a licensed customs broker. The customs agent or broker will deal with all the requirements needed to clear the goods through Customs and Quarantine formalities.

All entries (SAD) are processed through the ASYCUDA World (AW) system. You may be required to seek the assistance of your agent / broker or contact Customs to for more information on preparation of your customs clearance document.

To facilitate a smooth transition to ASYCUDAWorld, stakeholders are advised to ensure their computer systems have a minimum of 8GB RAM and Java version 8, which will be provided by BCBP and can be downloaded from their website www.bcbp.pw.

Businesses that process their own clearance need to register and undergo training for ASYCUDAWorld by submitting the registration form to BCBP for vetting and approval. For those that are not registered and for personal imports, clearance needs to be done by agents. Personal imports through the post office and airport arrival will be processed by Customs.

Commercial Importers

If you are a commercial or company, you need to have the manifest registered with customs before you can make an entry. Must have B/L submitted to Customs.

All commercial importers are to comply with the following requirements to allow for the release of good from Customs control:

a Customs entry (SAD) is required
make an accurate and correct Customs entry. Monetary penalties may be imposed for entries containing errors or omissions.
payment of all Customs charges
keeping of all commercial documents for six years and producing the same to Customs as and when required.
compliance with all BCBP legislative requirements.

Government Imports:

The Procurement Office is responsible for customs clearance, delivery, logistics, and warehousing for all government ministries and departments.

Documents to Be Submitted: The most important and often requested documents to confirm and verify the declarations made by the importer and Customs Broker are:

Genuine Commercial Invoice showing the correct value, quality, description, etc
Bill of Lading or Air Waybill
Purchase Orders
Bank/Funds Transfer Documents
Packing List
Customs Valuation Declaration
Certificate of origin and value (if applicable)
Import Permits /License/Applications, etc (if prohibited/restricted)
Any other documents as may be required by Customs, including relevant emails

Check the Declaration and Supporting Documents:

The third stage is the checking and verification of the declaration and the attached documents submitted to ensure the goods have been correctly classified using the Customs tariff, the correct value of the goods has been calculated and declared and the correct rate of duty has been applied. (In the future, this check will only be required on requested entries as all others will be electronically cleared.)

Payment of Duties and Taxes:

Since the implementation of the RPPL 11-11, the value of the goods to include any fees imposed by customs at the time of import are subject to the payment of PGST (10%). This includes the Deposit Beverage Container Fee, Excise Tax, Carbon Tax, Customs Entry Fee, the cost of freight, insurance, and other costs associated with the cost of shipments of the goods.

The payment of applicable duties and taxes as detailed on the notice of assessment. At this time, all payments are made the Customs Officers unit we are able to finalize online payments

There are currently two means of payment of import duties and taxes; these are by cash or by approved company or Bank checks, payable at a Customs office.

In the future the payments will be made online. Customs will advise when such service will be available. Once payment has been made to Customs, the owner of the goods may only take possession of the imported goods once all transport, wharfage and other fees have been paid. Goods remain under the control of Customs until they are lawfully removed from a Customs Controlled Area.

Inspect and Release Cargo:

At any time up to the release of cargo from a Customs Controlled Area, Customs has the right to examine the imported goods to determine the nature, origin, condition, quantity, and value of the goods declared to Customs. Customs may also examine consignments where intelligence and risk assessment indicate they may contain prohibited or restricted imports.

Required Import Documents:

Airway Bill (Air shipments) or Bill of Lading (Surface shipments).
Commercial Invoice containing correct value of the imported items.
Packing List/Inventory List containing detailed description of the imported items.
Customs Valuation Declaration/Customs Entry.

Import permits/Licenses (import of some goods is restricted in that they may only be imported under the authority of a permit or license without which the goods are prohibited).

Penalties & Offences

For the purposes of the Customs Regulations (2006), the administrative penalties include:

(a) Personal Exemptions. Goods transported during travel or imported into the Republic, which are not intended for a commercial purpose and are considered goods for personal consumption or use, are normally not taxed, unless otherwise required by law. However, a determination by Customs, whenever made, that the goods or equipment were subsequently used otherwise than as declared, shall be dealt with as fraud. Imported goods not taxed at the time of import and used for a commercial purpose shall be subsequently taxed. An administrative penalty not exceeding $1,000 shall be imposed by the Director on offenders. And/or RPPL 6-20: Section 3702, shall apply. This section falls under Customs Regulations Section 4.12.4.

(b) 12.1 Penalty for failure to report imported goods, exported goods, diversion of imported goods is liable to a maximum administrative fine of $5,000, or in an amount equal to twice the duty payable where this is greater.

(c) 12.1.2 Forfeiture. Goods that are not declared may be seized and subject to confiscation by Customs.

(d) 12.2 Penalty for unloading before reporting. Any person who unloads imported goods without Customs authority before the goods have been reported is liable to a maximum administrative fine of $5,000 under Section 3706 of the Smuggling Act.

(e) 12.3 Penalty for failure to account for goods. Every person who fails to account for imported goods under these regulations is liable to a maximum administrative fine of $ 5,000 or an amount equal to the duty payable where this is greater.

(f) 12.4 Penalty for tampering with seals. Every person who tampers with a seal in violation of Chapter 37, Smuggling Act”, is liable to a maximum administrative fine of $5,000 or an amount equal to the duty payable where this is greater.

(g) 4.1.2 Entry Declaration In addition to the nonnegotiable copy of the bill of lading and vendor’s invoices, packing lists each importer shall sign an Entry Declaration stating that, under penalty of perjury, the vendors’ invoices are true and correct and that no alterations or changes have been made thereto. Importers/Exporters submitting falsified documents will be dealt with in accordance with RPPL 6-20, Anti-Smuggling Act, Section 3702.

(h) 4.1.3 Entry Declaration must be prepared without errors in order to be processed speedily. If an importer, agent or exporter repeatedly submits declarations with errors, the Division of Customs will impose an administrative penalty of $10.00 each time a declaration is submitted with errors.

4.1.4 Disclosure of Cargo. All cargo, including ship’s stores, conveyed on the carrier entering the Republic must be included on the manifest and related bills of lading. It is the responsibility of the Master or Captain of a vessel or aircraft to declare the manifest to the Division of Customs. (40 PNCA §1304(c)) Willful failure to so include such cargo or the presentation of a willfully falsified manifest shall be deemed to be a violation and offenders shall, upon conviction, be imprisoned for a period of not more than one year, fined not more than $1,000.00, or both. (40 PNCA § 1704 and/or RPPL 6-20 -Anti-Smuggling Act).

(j) 4.3.5 Release of Cargo. No carrier, agent, or terminal operator shall release or turn over to a consignee any merchandise being imported into the Republic without prior official written permission of the Director or his designee. (40 PNCA § 1304(f)). Unauthorized release of cargo shall be subject to an administrative penalty of not more than $5,000, imposed by the Director or will be dealt with in terms of section 3706 of the Anti-smuggling Act of RPPL 6-20.

Offences and Penalties

For the purposes of the Customs Regulations (2006), the offenses and penalties include:

13.1 Any person who knowingly threatens or resists a Customs officer – Every person commits an offence who

13.1.1Threatens or assaults; or

13.1.2 By force resists or intentionally obstructs or intimidates,

13.1.3 Any Customs officer in the execution of his or her duties or a person acting in the officer’s aid.

Every person who commits an offence against this section is liable under 17 PNC § 301. Interference with service of process shall be guilty of obstructing justice and, upon conviction thereof, shall be imprisoned for a period of not more than one year, or fined not more than $1,000.00, or both.

13.2 Obstructing Customs Officer or interfering with Customs property. Every person commits an offence who

13.2.1 Otherwise than by force, intentionally obstructs any Customs officer or authorized person acting in the execution of his or her duties; or

13.2.2 Intentionally interferes with any equipment, vehicle, craft, drug detector dog, communications system, or other aid used, or intended for use, by the Customs; or

13.2.3 Does any act with the intention of impairing the effectiveness of any equipment, vehicle, craft, dog, communications system, or other aid used, or intended for use, by the Customs.

13.3 Obligations of persons arriving in or departing from the Republic of Palau. Every person commits an offence who willfully fails to comply with any requirement imposed on that person by a Customs Officer and/or commits an offense against this section is liable on conviction to a fine not exceeding $1,000.

13.4 Unauthorized presence in certain Customs controlled areas. Every person who commits an offence, without the permission of a Customs officer, enters into, or remains in when directed by a Customs officer to leave, a Customs controlled area used for

13.4.1 The temporary holding of imported goods for the purposes of the examination of those goods including the holding of the goods while they are awaiting examination; or

13.4.2 The disembarkation, embarkation, or processing of persons arriving in or departing from Palau; or

13.4.3 The processing of craft arriving in or departing from Palau or the loading or unloading of goods onto or from such craft, when that area is being, or is about to be, used for any of the purposes.

Currency Reporting

Currency and Monetary Instruments

RPPL 7-27 CASH Courier Disclosure Act of 2017 (17 PNCA § 4103)

Report on the transport of cash and negotiable instruments.

Any person who attempts to or physically transports cash or negotiable instruments in an aggregate amount of ten thousand dollars (U.S. S10,000) or more (or its equivalent in foreign currency) at one time into or out of the Republic of Palau shall make a written, signed declaration thereof to Customs on the form prescribed .

Currency Forms are available @ Customs Main Office and Post Office. Forms are also available at the Airport Arrivals Section, Airport Cargo Section and/or Immigration Departure Area. Upon departure, please ask an Immigration or Customs Officer to provide you with a Currency Form to fill in.

You can contact Customs at 488-1985/6031 during regular working hours, Monday thru through Friday 8:00am – 5:00pm for more information.

You can download the form from our BCBP Website: bcbp.pw

Failure to declare upon arrival or departure may lead to criminal or civil penalties being imposed.

Restricted or Prohibited Goods

The owner of exporting goods should be aware the list of prohibited exports that they may only be exported under the authority of a permit or license, without which the goods are prohibited.
Nevertheless, restrictions and or prohibitions generally apply to goods that are of menace to the community e.g.; dangerous weapons such as firearms, illicit drugs, pornographic materials. etc.

Compliance with Regulations

Obtaining the necessary licenses and permits is important for ensuring compliance with the regulations that apply to the product being imported or exported. Failing to obtain the necessary licenses and permits can result in delays, fines, or other problems with the trade process.

Obtaining the necessary licenses and permits can facilitate trade by providing the necessary documentation to support the import or export of the product. This can help to ensure that the trade process runs smoothly and efficiently.

Exchange Rate

The customs value of imported goods must be expressed in U.S. Dollars (USD) currency.

Foreign currency must be converted into USD currency at the rate of exchange prevailing on the day the goods arrive in Palau (not at the time of export).

In line with Customs Regulations, it states the following:

4.10.5 Currency. The basis of the import tax of such goods shall be calculated in U.S. Dollars according to the current rate of exchange at the date of import of the goods into Palau. It shall be the burden of the consignee to provide such information acceptable to Customs officials.

4.10.6 Time of import. The date on which the incoming vessel or aircraft was granted clearance by the Division of Customs to unload cargo will be treated as the time of imports for the imposition of tax rates and exchange rates and other levies applicable for imports.

Bureau of Customs and Border Protection

Bureau of Customs & Border Protection