🇵🇼 Import Customs & Duties: Palau
Quick Facts
Duty-free threshold
$50
Packages under $50, duty free
VAT / Sales Tax
15%
CIF value + duty. PGST (Palau Goods and Services Tax) at 10%.
Clearance Time
5-14 days
typical processing
Duty Rates by Category
| Category | Duty Rate | HS Chapter |
|---|---|---|
| Electronics | 0-5% | 85 |
| Clothing | 3-5% | 61-62 |
| Footwear | 3-5% | 64 |
| Food & Beverages | 0-5% | 01-24 |
| Machinery | 0-3% | 84 |
| Cosmetics | 3-5% | 33 |
| Books | 0% | 49 |
| Toys & Games | 3-5% | 95 |
Rates shown are for standard goods. Exact rate depends on the HS code of your item.
Customs Clearance Process
Palau Bureau of Revenue, Customs and Taxation. Compact of Free Association with US. US dollar is currency. Very low tariff rates (0-5%). Manual customs processing. Small import volumes, mostly from Guam, US, and Taiwan. No sales tax system. PGST (Palau Goods and Services Tax) at 10% on imports.
What to Actually Expect
Extremely remote small island republic (~18,000 people) in western Pacific. Koror is the main commercial center. Cargo ships from Guam every 2-3 weeks. United Airlines serves Palau for air cargo. USPS available. Very low duties (0-5%) but PGST at 10%. No other sales tax. Tourism-dependent economy means decent air connectivity. Strict environmental regulations, world's first to ban reef-toxic sunscreens. Marine sanctuary protections. Everything imported. Extremely long transit times for sea freight.
Required Documents
Commercial Invoice
Item description, quantity, value, sender and receiver details
Packing List
Detailed description of contents in each package
Customs Declaration (CN22/CN23)
Required for postal shipments
Air Waybill (AWB)
Generated by the carrier when booking the shipment
Certificate of Origin
May be required for reduced duties (FTA/preferential rates)
Export/Import License
For restricted goods (electronics, medicines, chemicals)
Import License Requirements
Required for firearms, alcohol, tobacco, and certain food products. Strict biosecurity, Palau has pristine marine environment. Ban on some single-use plastics. Reef-toxic sunscreens banned.
Certificate of Origin
Standard certificate of origin. Compact of Free Association with US provides trade preferences.
Prohibited & Restricted Items
Prohibited
- xNarcotics and illegal drugs
- xExplosives and flammable materials
- xWeapons and ammunition
- xCounterfeit goods
- xCounterfeit currency and documents
Restricted (permit required)
- !Medicines and pharmaceuticals
- !Food and beverages
- !Plants and seeds
- !Electronics (lithium batteries)
- !Perfumes and cosmetics (volume limits)
Useful Links
Popular routes to Palau
Frequently Asked Questions
What is the duty-free threshold for Palau?
The duty-free (de minimis) threshold for imports into Palau is $50. Goods valued below this amount are exempt from customs duties.
What is the VAT rate on imports to Palau?
The VAT/tax rate on imports to Palau is 15%. VAT applies to: CIF value + duty. PGST (Palau Goods and Services Tax) at 10%.
How long does customs clearance take in Palau?
Typical customs clearance in Palau takes 5-14 days. Express shipments usually clear faster.
What documents are needed to import into Palau?
To import into Palau, you typically need: commercial invoice, packing list, bill of lading/airway bill, and customs declaration. Some goods may require a certificate of origin or import license.
What items are prohibited from import into Palau?
Palau prohibits the import of narcotics, weapons, counterfeit goods, certain animal products, and hazardous materials. Restrictions may also apply to alcohol, tobacco, pharmaceuticals, and certain electronics.