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Customs

Customs & Tax Updates: New import tax rates and e-cigarette ban. Stay informed for a smooth visit to Palau. Contact Bureau of Customs for details.


RPPL 11-11

§ 1301  Imposition Of Import Tax

Every person who imports into the Republic shall be assessed and levied and must pay, import tax at the rate of zero %

§ 2612 Imposition of excise tax on imports of excisable goods

  1. Cigarettes: $5.00 per pack
  2. Tobacco Product Other Than Cigarettes: $294.12 per kg.
  3. Carbonated Soft Drinks: $0.10 per 12 fl oz
  4. Beer: $0.03 per ounce
  5. Liquor: $0.30 per ounce
  6. Grape or Other Fruit-Base Wine: $0.20 per fl oz. Or metric equivalent
  7. Wine coolers or cooking wine with a recognized alcohol content $0.05 per oz. Or metric equivalent
  8. Bottled Water: 25% of the excisable value
  9. All other alcoholic beverage products, including liquors, sake, and alcoholic products without grape or fruit base: $0.30 per fluid oz. Or metric equivalent
  10. Carbon Tax : $0.02 per Gallon
  11. Vehicles Or Vehicles Chassis: 5%
  12. All Other Import Products : 0%

Exemptions

§ 1215 Exempt Imports

The following goods are exempt imports 

(1) for persons arriving in the Republic by common carrier:

(A) one only of the following: one opened pack of cigarettes; one cigar not exceeding fifteen (15) grams; or up to fifteen (15) grams of loose smoking tobacco, chewing tobacco, or pipe tobacco, in an opened package;

(B) a quantity of alcohol products, as selected by the person, that is in aggregate not more than two (2) liters;

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

(3) goods carried across the Republic in transit.

(4) an import of goods in a single consignment not for commercial use or sale in which the value of the goods does not exceed four hundred dollars ($400);

Excise Tax Formula

Size (x) Conversion Rate (x) Tax Rate = Excise Tax

  1. Example: Liquor
    750ml x # cs x # in cs x .03381/33.81 = liter (x) $10.143 = excise tax due
  2. Example: Bottle of Wine
    750ml x # cs x # in cs x .03381/33.81 = liter (x) $6.762 = excise tax due
  3. Example: SODA CAN
    355ml x # cs x # in cs x .03381/33.81 = liter (x) $0.28175 = excise tax due
  4. Example: BEER
    12 oz x #c s x # in cs x .03381/33.81 = liter (x) $1.0143 = excise tax due
  5. Example : Bottle Wine Cooler or cooking wine
    12 oz x # cs x # in cs x .03381/ 33.81= liter (x) $1.6905 = total tax due
  6. Example: CIGARETTE
    1 pack (x) $5.00 = $5.00
  7. Example: TOBACCO/TOBACCO PRODUCT
    Kg x $294.12 = Tax due
  8. Example: Bottle water.
    CIF Value x 25% = Tax Due

Palau Goods & Services Tax on Import Formula

  • Excisable Goods: CIF Value + Excise x 10% = PGST Due
  • Any Other Imports: CIF Value x 10% = PGST Due
  • The total Tax Due upon import is Excise + PGST

Currency Reporting

All travelers into and out of Palau are required to Declare on the Arrival or Departure Card if they are carrying $10,000 or more in Currency or negotiable bearer instruments in their possession or baggage.
If yes, you are also required to complete a Border Currency Report Form

Seizure and Detention of Currency Administrative and Civil Penalties up to Double the value of the Currency (Cash Courier Disclosure Act of 2007)

Forfeiture of the currency and/or Monetary instruments and Criminal Penalties for Smuggling of up to five years imprisonment and/or $5,000 Fine (17 PNC Chapter 37)



Key Elements of Comprehensive Ban on E-Cigarettes

RPPL 11-27

Prohibits the Importation, Distribution, Selling, Possession, Use of Electronic Cigarettes within the Republic of Palau.

Effective Date May 29, 2023

“E-cigarettes” means any product or product component (refill liquids, cartridges, capsules, electronic devices, or other components exclusively of use for e-cigarettes) designed to deliver nicotine and/or other chemicals to the user via an aerosol or vapor by heating a solution that a user inhales.

Any person who imports or purposefully sells or distributes to any minor (person under 21 years), or to a person who he knows will supply them to a minor, shall be imprisoned for up to 1 year or fined not more than $20,000 (USD) or both.

Any person who sells or distributes e-cigarettes, may be imprisoned for up to 1 month or fined not more than $1,000 or both.

Any traveler who voluntarily surrenders any e-cigarettes at points of entry into Palau shall not be convicted for their import.

No person shall purchase, possess, or consume an e-cigarette within Palau.

Violators may be subject to fines:

1st violation: up to $50

2nd violation: up to $200

3rd violation: up to $400

Subsequent violations: up to $500- or 24-hours incarceration

Other Reminders to Travelers

1st violation: up to $50

2nd violation: up to $200

3rd violation: up to $400

Subsequent violations: up to $500- or 24-hours incarceration


Contact info

Bureau of Customs & Border Protection
MINISTRY OF FINANCE
REPUBLIC OF PALAU

Tel: 680 488 1985/5067/6031
FAX: 680 488 4405
EMAIL: [email protected]

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