Distillers Alcohol regulations in Palau
How to import or export liquor and spirits to Palau, how to register products and labels, the import duty and taxes, and how to get a licence to make alcohol there. Researched July 2026.
Research guide, not legal advice. Compiled in July 2026 from the public sources listed at the bottom of this page. Duty rates, fees and rules change often: confirm with the regulator, a customs broker or local counsel before you act. Spotted something out of date? Tell us.
- Status
- Legal
- Legal drinking age
- 21
- Legal purchase age
- 21
Licence to make spirits (distillery and bottling)
- Licences needed
- Alcohol Manufacturer's License under 11 PNC Chapter 10, general Business License under 40 PNC Chapter 15, and Environmental Quality Protection Board (EQPB) permits
- Authority
- Bureau of Commercial Development (Ministry of Public Infrastructure and Industries) and Bureau of Revenue and Taxation (Ministry of Finance)
- Documents
- Business registration documentation, facility site plans, EQPB environmental compliance clearance, and tax clearance certificates
- Fees
- not confirmed
- Time to obtain
- not confirmed
Import licence and registration
- Who can import
- Licensed commercial entities registered with the Bureau of Revenue and Taxation and authorized by the Bureau of Customs and Border Protection; arriving adult travelers may import up to 2 liters duty-free for personal consumption
- Licences or registrations
- General Business License (40 PNC § 1501), Tax Identification Number (TIN), Palau Goods and Services Tax (PGST) registration, and excise goods importer authorization under 40 PNC § 2612(d)
- Authority
- Bureau of Customs and Border Protection (BCBP) and Bureau of Revenue and Taxation (BRT), Ministry of Finance
- Documents
- Customs import declaration, commercial invoice, Bill of Lading or Air Waybill, packing list, and TIN proof
- Fees
- Standard business license fee (typically $100+ under 40 PNC § 1506); specific import permit fee not confirmed
- Time to obtain
- not confirmed
Product and label registration
- Required
- no
- Process
- Palau does not operate a pre-market brand or label registration approval process for imported alcoholic beverages; compliance with standard international commercial labeling and customs declarations is required
Import rules
All commercial shipments must be cleared through the Bureau of Customs and Border Protection (BCBP) with standard shipping manifests and invoices. Excisable goods subject to excise stamps or controls must be imported only by an importer licensed by the Director of Customs (40 PNC § 2612). Foreign investment rules reserve retail and wholesale merchandise activities to Palauan citizens unless Foreign Investment Board (FIB) approval is granted.
Import duty on spirits (HS 2208)
0% (under RPPL 11-11 § 1301, general customs import duty was set to 0%, replacing former ad valorem tariffs with specific excise taxes and the PGST)
Excise and taxes
Specific excise tax on liquor/spirits (and non-grape/fruit alcoholic products) of $0.30 per fluid ounce (approx. $10.14 per liter) under 40 PNC § 2614 / RPPL 11-11; plus 10% Palau Goods and Services Tax (PGST) assessed on the import value formula: (CIF Value + Excise Tax) × 10%
Retail and distribution
Private licensed vendors (retail stores, bars, restaurants, hotel lounges, and cabarets). Wholesale and retail sales are restricted to Palauan-owned entities under foreign investment laws. Operating hours and restrictions are set by state governments; notably in Koror State, alcohol sales, purchases, and public consumption are prohibited between 12:01 AM and 6:00 AM daily
Online sale and delivery
not confirmed
Labelling
Standard international labeling is accepted (product name, producer details, country of origin, liquid volume, and percentage alcohol by volume (% ABV)). English is widely used and accepted; no domestic health warning statement is legally mandated on spirits containers
Advertising
Alcohol advertising is permitted with limitations (must not target minors under age 21 or display false or misleading claims); unlike tobacco, for which comprehensive advertising and sponsorship bans exist, alcohol faces moderate media and billboard regulation
Legal definitions of spirits
not confirmed
Dry or restricted areas
No complete nationwide prohibition; however, local states regulate operating hours and public drinking. In Koror State (the commercial center), municipal laws ban alcohol sales and transfers from 12:01 AM to 6:00 AM daily, prohibit drinking in public places, and enforce nighttime curfews
Recent changes
- Implementation of the comprehensive tax reform package (RPPL 11-11), establishing the 10% Palau Goods and Services Tax (PGST) on imports and domestic sales while zero-rating general import duty and setting specific excise taxes on liquor at $0.30 per fluid ounce.
- Enhanced border control mechanisms and customs digital declaration procedures implemented by the Bureau of Customs and Border Protection (BCBP).
Opportunities for exporters
Palau's tourist-driven hospitality sector generates steady demand for premium international spirits, craft spirits, and popular rum, vodka, and whisky brands. Exporters must partner with established Palauan-owned distributors and importers to navigate local commercial distribution requirements.
Regulators
Sources
- Palau Bureau of Customs and Border Protection - PGST and Other Taxes (RPPL 11-11)
- Pristine Paradise Palau / BCBP - Customs & Tax Updates
- Palau Code Commission - Republic of Palau Public Laws
- Koror State Government - Alcoholic Beverage Sales and Curfew Law
- WHO FCTC Implementation Database - Republic of Palau RPPL 9-6 and 8-27 (Alcoholic Beverage Control Act Amendments)
Selling into Palau or buying from it?