Exempt Imports

In line with RPPL No.11-11, it states the following:

• 1215. Exempt imports.

(a) The following imports are exempt imports:

(1) an import by a passenger or a member of a crew of a ship or aircraft of the following:

(A) an amount of alcohol equal to the amount exempted from excise tax under Section 2613(1)(B); and

(B) an amount of cigarettes or other tobacco products equal to the amount exempted from the excise tax under Section 2613(1)(A);

(2) an import of goods as stores of a ship or aircraft, being goods required for the use of the passengers and crew of the ship or aircraft when on board and while the ship or aircraft is in international traffic in such quantities as approved by the Director;

(3) an import of goods in a single consignment not for commercial use or sale in which the value of the goods does not exceed one thousand dollars ($1000);

(4) an import of goods by a diplomatic or consular mission, or by a diplomat or a member of the diplomat’s family forming part of the diplomat’s household in the Republic, to the extent required under the Diplomatic Relations Act of 1994, codified at 28 PNC Chapter 8;

(5) an import of goods by a foreign government or an international organization to the extent required under:

(A) an agreement between the government of the Republic and a foreign government or international organization for the provision of financial, technical, humanitarian, or administrative assistance to the government; or

(B) the Diplomatic Relations Act of 1994, codified at 28 PNC Chapter 8; and an import of goods if a supply of those goods in the Republic would be an exempt or zero-rated supply as set forth in this chapter.

(b) An import is not an exempt import under Subsection (a)(3) if the Director is satisfied that a consignment has been split into two (2) or more consignments for the purposes of taking advantage of Subsection (a)(3).

For more information, please click on this link to the Tax Reform Main Page: https://www.palaugov.pw/taxreform/pgst/

Temporary Imports:

For the purposes of the Customs Regulations (2006), the temporary imports include: 

4.10.3 Temporary imports. The following will apply to temporary imports which will later be re-exported in a same or similar condition to the original shipper upon conclusion of the item’s use in Palau:

4.10.3.1 Where an item is imported into Palau on a temporary basis, such as tools used for installation, repair, construction, equipment, machinery for processing and are to be re-exported upon completion of the activity for which such item was imported, but in any case, no more than six months from date of first entry into Palau, the Director may provide for the deferment of any applicable import tax for such period of time. If the item is re-exported to the original shipper within that time period, the tax assessment on such item shall be cancelled pursuant to 40 PNC Sec. 1302.  Failure to re-export within the time specified shall result in the full amount of the tax assessment coming due and payable.

4.10.3.2 For items imported into Palau on a temporary basis for installation, repair, construction, or other activity which requires presence of more than six (6) months from date of import but which will be re-exported to the original shipper upon conclusion of the activity for which it was originally imported, the applicable import tax shall be based on the reasonable rental value of such item while in Palau, or such other evidence of valuation as may be determined by the Director. Import tax in this instance shall not be deferred but shall be collected and shall be non-refundable to the consignee or shipper on the basis that value was received and consumed in Palau during the period of use.  If the item or items subject to this regulation are not in-fact re-exported at the conclusion of rental period declared at time of import, import tax shall be paid based on the full value of the item at the time of import minus a deduction for actual import tax previously paid based on the rental value of such item.

4.10.3.3 At the time of re-export of items temporarily imported, a Customs inspection and verification must be carried out.