Applying for a refund

If you believe you may qualify for a refund, please contact the BCBP for further information about what is required for your application. Please include the Customs Import Entry Number or Waybill Number and a written letter explanation of why you are applying for a refund. Further evidence to support your claim may be requested. Refunds are processed on a weekly basis. Simply contact the BCBP and submit you written letter and supporting documents requesting for a refunds.

Most refunds result from overpayment, errors, incorrect concession codes, of customs duties, taxes and fees. The goods that arrived may have been damaged, short-shipped, lost or destroyed. If you are eligible for a refund, the BCBP will review your claim and if approved, the BCBP will notify the National Treasury to issue a check to the importer / exporter.

Refund process

Step 1. Exporter submits a written letter to the BCBP along with all the export and relevant documents.

Step 2. Any request for refunds must be submitted in writing within 30 days after the goods are release from Customs control.

Step 3. A service charge of $25.00 shall be assessed for the processing of any application for import tax refund regardless of the basis for such refund.

Step 4. If you are eligible for a refund, the BCBP will review your claim and if approved, the BCBP will notify the National Treasury to issue a check to the importer / exporter.

In line with the Customs Regulations (2006), it states the following:

4.5 Import Tax Refunds Pursuant to PNC 40: section 1302, the following shall apply:

4.5.1 Damaged, pillaged or faulty goods. Upon receipt of a written request within 30 days of the goods’ release from Customs control, the Director may authorize a refund of the whole or part of the import tax paid, where he is satisfied that any of the following conditions exist:

4.5.1.1 The goods have been damaged, pillaged, lost or destroyed during the voyage;

4.5.1.2 The goods have, while subject to the control of Customs, been damaged, pillaged, lost or destroyed; or

4.5.1.3 Owing to a fault or defect in any goods, the importer has received a reduction or a refund, in whole or part, of the price paid or to be paid for the goods.

4.5.1.4 Short shipments.

4.5.1.5 Change of import tax rates by legislation.

4.5.1.6 No refund or credit shall be allowed for imported goods after 30 days or one (1) month of the date of original entry.

4.5.2 A service charge of $25.00 shall be assessed for the processing of any application for import tax refund regardless of the basis for such refund.

4.10 Import Tax Deductions; Samples or Promotional Items; Temporary Imports.

4.10.4.2 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.