Government of the Federated States of Micronesia

New Import Tax Law

Public Notice: F&A (003-04)
December 27, 2004


The Federated States of Micronesia Department of Finance and Administration wishes to inform the general public that a new Law has been signed to change taxes on certain import products beginning January 1, 2005.

Public Law No. 13-60 amends Title 54 of the FSM Code, Section 221 on the subject of Levy and Rates. The noted changes applies to rates of the following imported products:


  1. Cigarettes, has changed from the rate of 25% ad valorem, to $0.025 per cigarette, provided that this rate shall increase by $0.005 per cigarette on January 1st of each of the years 2007, 2009, 2011, 2013 and 2015;

  2. Tobacco, other than cigarettes remained at the rate of 50% ad valorem;

  3. Perfumery, cosmetics, and toiletries, including cologne and other toilet waters, articles of perfumery, whether in sachets or otherwise, and all preparations used as application to the hair or skin, lipsticks, pomades, powders, and other toilet preparations not having medicinal properties, remained at 25% ad valorem;

  4. Soft drinks, drink mixes, drink preparations, coffee, tea, and nonalcoholic beverages, remained at 25% ad valorem, provided, however, that any beverage having a fruit juice content of 25% or more by volume shall be at the rate of 3% ad valorem.

  5. Beers and malt beverages, has changed from the rate of 25% ad valorem, to $0.25 per 12 fluid ounces.

  6. Distilled alcoholic beverages, has changed from the rate of $10.00 per gallon, to $12.00 per gallon.

  7. Wine, has changed from the rate of $25% ad valorem, to 30% ad valorem.

  8. Imported fresh and frozen fish and seafood: shall be at the rate of 25% ad valorem, while foodstuffs for human consumption remains at 3% ad valorem.

  9. Gasoline and diesel fuel, remained at 5 cents per gallon.

  10. Laundry bar soap, has changed from the rate of 100% ad valorem, to 25% ad valorem.

  11. All other imported products, except those with specified rates, remained at 4% ad valorem.


With changes effective January 1st 2005, the Division of Customs and Tax Administration requests the cooperation and assistance of all importers to apply the new rates when filling out the import Self Assessment Declaration (SAD) form.

For additional information and clarification on the changes in the import duty rates, please contact the Customs and Tax field offices in your State or the Main Office in Palikir:

Division of Customs and Tax Administration
Department of Finance and Administration
FSM National Government
P.O. Box PS 54
Palikir, Pohnpei FM 96941
Tel: (691)320-5855/2826
Fax: (691) 320-5715
e-mail: ctahq@mail.fm

or contact the field offices:

Chuuk: (691) 330-2753/4482
Kosrae: (691) 370-3010/3382
Pohnpei: (691) 320-2350/5508
Yap: (691) 350-2272/2419

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