• 1204. Bonding Requirement.

Before any imported merchandise is released from the Bureau’s custody and stored in any bonded warehouse, the owner or licensee thereof shall give a bond in such sum and with such sureties as may be approved by the Director to secure the government against any loss of excise tax or expense connected with or arising from the deposit, storage, or manipulation of merchandise in such warehouse. Such bond shall conform to all legal requirements.

• 1210. Bond Requirement.

The Director may require such bonds or other security as he, or the Minister, may deem necessary for the protection of the revenue or to assure compliance with any provision of law, regulation, or instruction which the  Ministry or the Bureau may be authorized to enforce.

• 1211. Conditions and Form of Bond

Whenever a bond is required pursuant to this Chapter, the Minister may require:

• Cash or cash equivalent in lieu of bond;
• Letter of credit issued yearly, or otherwise by accepting banking institution;
• Personal guarantees in a form acceptable to the Minister;
• A bond issued by a company that is licensed or authorized under the laws of Palau to carry on the fidelity or surety class of insurance business and that the Miniser recommends in writing as acceptable as an institution whose bonds may be accepted;
• Except as otherwise specifically provided by law, prescribe the conditions and form of such bond and the manner in which the bond may be filed, and fix the amount of penalty thereof, whether for the payment of liquidated damages or of a penal sum;
• The approval of the sureties of such bond, without regard to any general provision of law;
• Authorization, to the extent that he/she may deem necessary, for the taking of a consolidated bond (single entry or term), in lieu of separate bonds to assure compliance.