Palau Customs to Begin Charging Storage Fees for Unclaimed Goods November 3

By Summer Kennard | October 9, 2025 | Koror, Palau

The Bureau of Customs and Border Protection (BCBP) announced that beginning November 3, 2025, it will start charging storage fees for unclaimed or uncleared goods held at all Customs-controlled areas, including the post office, seaport, airport cargo terminals, and its main office.

The policy aims to address overcrowding at Customs facilities and ensure the proper handling, tracking, and disposal of unclaimed items, in line with international standards.

According to BCBP, the new measure applies to both individuals and businesses. Storage fees will range from $2 to $20 per day, depending on the type of item, after an initial grace period. Packages and envelopes will be free for the first five days, with charges beginning on the sixth day.

Policy Clarified After Public Confusion

Following the announcement, Customs officials clarified that the policy does not apply to regular post office mail stored in personal postal boxes — a point that caused confusion among the public.

“This only applies when items are being cleared at our Customs area,” a Customs official explained. “It does not affect Post Office mail in postal boxes. The fees are for goods and parcels that have already arrived and are awaiting Customs clearance or tax payment.”

The official said that storage congestion has become a significant issue across Customs-controlled facilities.

“We have a lot of unclaimed items — business checks, parcels, and goods — that accrue over time, and storage becomes limited,” the official said. “Either fees are paid, or we will need to do our due diligence and get rid of unclaimed items. We have a process to destroy or auction them, but we haven’t enforced that policy for quite some time.”

Retention Periods and Disposal Procedures

Under the new rules, items must be claimed within 15 days at the post office, air cargo terminal, or airport inspection terminals, or they will be transferred to the BCBP main office for safekeeping. Goods stored at the seaport or bonded warehouses may remain up to 90 days before being moved under Customs custody.

Consignees will receive up to three notices — initial, reminder, and final — before disposal. Items unclaimed after 90 days and a 10-day written notice may be auctioned or destroyed according to the law.

Insurance and Responsibility

Customs also clarified that most items held at its facilities are not insured unless coverage was arranged through shipping agents.

“Most goods that come through air or sea may be insured based on arrangements by shipping agents such as CTSI, DHL, or Palau Shipping,” the official said. “However, most goods that come through mail or cargo at the seaport are from individuals and are not usually insured, while commercial shipments might be.”

No Change in Baggage Fees

BCBP emphasized that baggage storage fees at the airport remain unchanged under this policy. A flat fee of $10 per baggage item covers the first 15 days, followed by $20 per 30-day period thereafter.

The bureau noted that what is new is the expanded enforcement of existing fees across all Customs-controlled areas, improved item tracking through the ASYCUDA system, and clearer notification procedures.

Public Encouraged to Claim Items Before Deadline

BCBP is urging consignees to claim existing items before November 3 to avoid incurring charges.

“We’ve given longer grace periods, but we find that we are storing more goods and items than we normally should,” the official said. “Many of these are left behind because people don’t want to pay the taxes associated with such goods. We hope this new policy encourages timely clearance.”

For more information, the public may contact the BCBP Division of Corporate Services.