Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698746827400.pdf (Micronesia, Federated States of)
FIFTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FOURTH REGULAR SESSION, 2008 C.B.

NO.

15-118 A BILL FOR AN ACT To further amend title 54 of the Code of the Federated States of Micronesia, as amended, by further amending section 222, as amended by Public Laws Nos.

10-10, 10-136, 10-149, 11-43, 11-70 and 11-82, to add a subparagraph (9) to create a new exemption for health, education and welfare related goods donated for humanitarian use, and for other purposes.
BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.

Section 222 of title 54 of the Code of the 2 Federated States of Micronesia, as amended by Public Laws Nos.

10- 3 10, 10-136, 10-149, 11-43, 11-70 and 11-82, is hereby further 4 amended to read as follows: "Section 222.

Exemptions.

(1) Damaged, pillaged or faulty goods.
Upon receipt of a written request within 28 days of the goods' release from Customs control, the Secretary may authorize a refund of the whole or part of the duty paid, where any of the following conditions exist: (a) goods have been damaged, pillaged, lost or destroyed during the voyage; (b) goods have, while subject to the control of Customs, been damaged, pillaged, lost or destroyed; or (c) the Commissioner is satisfied that, owing to a fault or defect in any goods, the importer has received a reduction or a refund, in whole or part, of the price paid for the goods.
CBL 15-124 C.B.

NO.

15-118 (2) Goods imported for subsequent export.

(a) Upon application to and approval by the Secretary, import duty paid on the following goods shall be refunded: goods imported for processing in the FSM, not otherwise used in the FSM, and subsequently exported from the FSM.
For purposes of this subsection, raw materials or ingredients which are worked into or otherwise become part of a different or more finished product are deemed exported when that product is exported.

(b) Goods imported for processing are eligible for the duty refund when the finished products which the imported goods were processed into have been loaded on an aircraft or vessel for direct removal from the FSM and that aircraft or vessel has departed from the port.
After they have been so loaded, the goods shall again be subject to import duty if they are unloaded or used in the FSM.

With respect to importers primarily engaged in importing for processing and subsequent export, the Secretary shall provide for waiving, by regulation rather than collecting and subsequently refunding, duties.
(c) Upon application to and approval by the Secretary, import duty shall be waived on the following goods: goods imported for transshipment through the FSM, 2 of 6 C.B.

NO.

15-118 not to be used in the FSM, which are securely stored while in the FSM and which are exported from the FSM within a reasonable time of import to the FSM, as defined by regulation.
Should these goods not be exported within a reasonable time, the importer will be subject to a penalty equal to one-quarter of the import duty that would have been due if the goods were to be used in the FSM.

Should these goods be removed from the secure storage facility or used in the FSM, they will be subject to the full import duty.

(d) The burden of proving that goods imported are for subsequent export shall be upon the importer/exporter as specified in regulations.
(3) Goods carried in per trip abroad.
Each time an individual person enters or returns to the FSM from a foreign jurisdiction, he or she is entitled to bring into the FSM the following goods duty free, provided that such goods are for that person's own personal use or consumption and not for resale or exchange, and provided further that such person is permitted by applicable State law to possess, use, and consume such goods: (a) up to 200 cigarettes; (b) up to one pound of tobacco or twenty cigars; (c) up to 52 fluid ounces or 1500 milliliters of 3 of 6 C.B.
NO.

15-118 distilled alcoholic beverages; and (d) up to two hundred dollars ($200) worth of goods other than tobacco products, beer and malt beverages, distilled alcoholic beverages, and wine.

(4) Visitors' personal effects.

A visitor to the FSM may import bona fide personal effects into the FSM duty free, provided the goods are for the visitor's own personal use and will be taken with the visitor when he or she leaves the country.

(5) Returning goods.


Goods produced or properly entered in the FSM which are subsequently removed from the FSM may be returned to the FSM duty free.

The burden shall be on the owner of the goods to establish that the goods were either produced in the FSM or previously and properly entered.

(6) Goods used in foreign aid projects.


An international organization, foreign contractor, or other foreign entity may import goods into the FSM duty free in connection with the performance of services or other conduct of business in furtherance of a foreign aid agreement entered into by the FSM, the terms of which require that such import shall not be subject to taxation by the FSM; provided that if and when such goods are subsequently sold in the FSM, import duty shall be due based on the sale amount.
The duty, 4 of 6 C.B.

NO.

15-118 together with penalties and interest, shall be the joint and several personal liability of the importer and the purchaser and shall be secured by first liens on the goods and on the importer's property as hereinafter provided.

(7) Certain fishing vessels and equipment.


Fishing vessels basing in the Federated States of Micronesia under a valid permit or license issued pursuant to title 24 of the Code of the Federated States of Micronesia shall not be subject to the import duty on either the vessel or equipment installed in the vessel.

This ex emption shall apply to replacement parts and equipment imported by these fishing vessels as well.

(8) Parcels which would generate a de minimis duty.
Parcels mailed or otherwise sent into the FSM, which would otherwise generate a de minimis duty, shall be exempt from import duty, provided that such goods are for the recipient's own personal use or consumption and not for resale or exchange.

Parcels with values up to the amount specified in subsection (3)(d) of this section, shall be exempt."

(9) Health, education and welfare related goods donated for humanitarian use.
Upon application to and approval by the Secretary, the import duty on goods related to health, education or welfare donated without 5 of 6 C.B.

NO.

15-118 cost for humanitarian purposes, and not for resale, shall be waived or refunded; provided, however, that if and when any of such goods are subsequently sold in the FSM, import duty shall be due based on the sale amount.
The duty, together with penalties and interest, shall be the joint and several personal liability of the importer and the purchaser and shall be secured by first liens on the goods and on the importer's property as hereinafter provided.

10 Section 2.

This act shall become law upon approval by the 11 President of the Federated States of Micronesia or upon its 12 becoming law without such approval.

13 14 Date: 4/04/08 Introduced by: /s/ Joe N. Suka Joe N. Suka of 6