Palau Import Duties & Taxes Explained

For a shipment to Palau, expect to pay Palau Goods and Services Tax (PGST) at 10% plus Customs Import Duty of 3-10% on your item value, with no tax-free threshold for most shipments. Your total charges will also include carrier clearance fees, and taxes are calculated on the item value alone, not including shipping costs.

No, there is no formal de minimis threshold for most mail or courier shipments to Palau. You should expect to pay taxes on the value of your shipment regardless of the total amount.

Palau calculates taxes based on the FOB (Free on Board) value, which is the cost of the items before shipping and insurance are added. This means you do not pay PGST on the international shipping fees.

While the 10% PGST is the primary charge, some specific goods may also incur customs duties ranging from 3% to 10%. Most common consumer items are typically subject only to the standard PGST.

Yes, carriers like DHL or FedEx often charge a separate processing or brokerage fee for handling your customs clearance. These fees are paid directly to the carrier and are not collected by the government.

The Bureau of Customs and Border Protection (BCBP) in Palau is responsible for collecting all import taxes and duties. You will pay these charges upon arrival or through your carrier before delivery.

Certain goods from the United States may be eligible for duty-free entry under the Compact of Free Association, but the 10% PGST may still apply. Basic necessities and medical supplies are also potential candidates for exemptions.

To estimate your costs, calculate 10% of your item's purchase value for PGST and add any potential carrier handling fees. Remember that duties might apply to specific categories, so check the classification of your items.

You will likely pay a 10% Palau Goods and Services Tax (PGST) on most items. This tax is calculated based on the FOB value of your goods, excluding shipping and insurance costs.

An inaccurate declaration can cause significant delays at the border while authorities verify the value of your shipment. Ensure your invoice clearly and correctly reflects the actual purchase price of the goods.