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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 18-919.3 

REGIONAL ISSUES 

Compact of Free Association 

Postal Services and Related Programs 

Amendment to Article VI of the 

Federal Programs and Services 

Agreement Between the 

UNITED STATES OF AMERICA 

and PALAU 

Signed at Honolulu September 3, 2010 
 

 

NOTE BY THE DEPARTMENT OF STATE 

Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)— 

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 

 

 

 

 

 

 

 

 

 

 

PALAU 

Regional Issues: Compact of Free Association 

Postal Services and Related Programs 

Amendment to Article VI of the Federal Programs and 

Services Agreement; 

Signed at Honolulu September 3, 2010; 

Entered into force September 19, 2018. 

. 
Appendix E(I): 

Agreement Between 

the Government ofthe United States ofAmerica 

and 

the Government ofthe Republic ofPalau 

to Amend Article VI ofthe Federal Programs and Services 

Agreement Concluded Pursuant to Article II ofTitle Two and 

Section 232 ofthe Compact ofFree Association 

The Government of the United States of America and the Government of the Republic of Palau 

hereby agree to amend Article VI of the Federal Programs and Services Agreement Concluded 

pursuant to Article II ofTitle Two and Section 232 ofthe Compact ofFree Association. signed at 

Palau on January I0, 1986 ( the Compact), to read as follows: 

Article VI 

Postal Services and Related Programs 

I. The Government of Palau shall maintain responsibility pursuant to its laws and 

regulations for all local postal services. 

2. The Government of Palau shall be responsible for all its own postal staff. facilities and 

equipment. 

3. The Government of Palau shall issue postage stamps and other prescribed postal indicia, 

which shall be used for prepayment of postage rates and other postal charges on all mail 

originating in its territory, except for mail sent through the military postal system provided for in 

Article VII of the Status of Forces Agreement Concluded Pursuant to Section 323 of the 

Compact ofFree Association. 

4. The United States Postal Service (USPS) shall provide the following services for the 

Republic ofPalau through Fiscal Year 2024 commencing on the effective date ofthis Agreement 

without compensation by the Government of Palau; provided that the United States Postal 

Service is reimbursed for the provision of such services from funds appropriated by the United 

States Congress in implementation ofthis Agreement: 

(a) maintain a reasonable and cost effective level of service for conveyance of mail to 

and from the United States and the Palau International Airport at Arai; 

(b) dispatch, documentation, statistical, accounting, and settlement operations m 

connection with the international exchange ofmail with other countries; 

(c) Express Mail, except that no service guarantee will be provided; registered mail; 

and insured parcel service; and 
(d) technical assistance as provided in paragraph 16 ofthis Article. 

5. As of the effective date of this Agreement, COD (cash on delivery) will no longer be 

available and. one (I) year after the effective date of this Agreement, USPS Money orders will 

no longer be available. Services requiring delivery scans or electronic signature capture will also 

not be made available for mail addressed to ZIP codes in Palau. 

6. The Government of Palau shall undertake to protect the postal services provided by the 

Government of the United States from use that is inconsistent with mailing standards as set forth 

in the Domestic Mail Manual and International Mail Manual or that involves the shipment of 

commercial goods for direct or indirect resale outside the Republic of Palau. The USPS shall 

notify the President of the Government of Palau in writing of any such instances of which the 

USPS becomes aware. The Government of Palau shall reimburse USPS for all expenses, 

including but not limited to, air transportation costs, directly related to any such use as 

determined by the USPS following consultation with the Government of Palau. Reimbursement 

shall be made by cashier's check made payable to the USPS no later than ninety (90) days after 

the USPS invoice for reimbursement is transmitted to the Government ofPalau. 

7. The Government of the United States shall provide mail service pursuant to this Article 

with the understanding that the volume of mail may increase in proportion to population 

increases and ordinary growth of local commercial enterprise. If, after the effective date of this 

Agreement, there is an increase in the volume of mail serviced by the USPS relating to Palau in a 

fiscal year (October 1 through September 30) that exceeds the average volume of the preceding 

three (3) fiscal years by more than twenty percent (20%), the Government of Palau shall 

reimburse the USPS for the costs incurred for the volume in excess of twenty percent at the rate 

paid by the USPS in transportation costs plus ten percent (10%) of those costs for administrative 

expenses. At five-year intervals after the effective date of this Agreement, the volume figure of 

twenty percent and the reimbursement provisions of this paragraph will be reviewed by both 

parties at the request of either party. 

8. The Government of Palau shall ensure that all mail turned over to the USPS for 

conveyance to the United States or other countries complies with the postal conventions to which 

the United States adheres and with the postal laws and regulations of the United States. 

International documentation (parcel bills for registered and insured parcels, letter bills for 

registered letters, and A V-7/CN-38 manifests for Express Mail) shall be required for those 

special services provided between the exchange office of the Republic of Palau and designated 

exchange offices of the United States. Pursuant to paragraph 16 of this Article. the Government 

of the United States shall, upon request, assist the Government of Palau in developing local 

practices and procedures to fulfill the requirements ofthis paragraph. 

9. Pursuant to this Agreement mail shall be exchanged at the exchange office designated in 

this paragraph, and outgoing mail from the Republic of Palau shall be merged with United States 

mail for conveyance to the United States or to other countries. Such outgoing mail from the 

Republic of Palau shall be treated as though it were mail from the United States for dispatch, 

documentation, statistical, accounting and settlement operations with other countries. The 

designated exchange office shall be located at the Palau International Airport at J\.rai. 
10. The Government of Palau may determine postal rates for internal mail to local addresses 

within the Republic of Palau. 

11. After the effective date of this Agreement. the Government of Palau shall be responsible 

for determining the postal rates for mail being sent from addresses in the Republic of Palau to 

addresses in the United States and to other countries. The floor established for postage rates of 

mail from the Republic of Palau to the United States shall be the published United States 

domestic postage rates at the time. The floor established for postage rates of mail from the 

Republic of Palau to countries other than the United States, shall be the published United States 

standard international postage rates at the time. The Government of Palau may agree to establish 

a floor of United States domestic postage rates for mail exchanged between addresses of the 

Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. 

If, after the effective date of this Agreement, the USPS experiences severe losses as a result of 

providing postal services to the Republic of Palau pursuant to this Article, the USPS and the 

Government of Palau shall consult at the request of the USPS to find mutually acceptable 

measures to address the losses suffered by the USPS. If the USPS and the Government of Palau 

cannot agree on mutually acceptable measures to address the losses, the USPS may establish 

special cost-related rates or may opt to establish standard international rates and classifications 

for mail from the United States to the Republic of Palau, provided that international rates will be 

phased in over a period of not less than five (5) years, beginning no sooner than 2014. 

I2. Revenues derived from the sale of stamps issued by the Government of Palau for postal 

services or for philatelic purposes shall be retained by the Government of Palau. The 

Government of Palau agrees to provide, pursuant to its constitutional processes, adequate 

funding for the operation of its postal services in a manner which will allow the USPS to perform 

its responsibilities under this Agreement in an efficient and economical manner, with any 

disputes arising under this paragraph to be resolved pursuant to Article II of Title Four of the 

Compact. 

13. Liability for the loss of registered and insured items shall rest with the Government 

which, having received it without comment, cannot prove either delivery to the addressee or 

correct transfer to another administration. Pursuant to paragraph 16 of this Article, the 

Government of the United States shall, upon request, assist the Government of Palau in 

developing local practices and procedures to fulfill the requirements of this paragraph. 

14. The Government of Palau shall not impose any terminal dues or other charges on the 

USPS or the postal administrations of any other governments for mail conveyed to the Republic 

of Palau by the USPS pursuant to this Agreement. 

15. One (1) year from the effective date of this Agreement, the Government of Palau shall 

discontinue the sale of Postal Money Orders on USPS forms in accordance with USPS 

regulations. One (I) year from the effective date of this Agreement, the Republic of Palau shall 

return to the USPS all devices, USPS money order forms. and supplies used for the imprinting of 

Postal Money Orders and shall remit to the USPS all amounts collected in conjunction with the 

issuance of Postal Orders issued on USPS forms, including the Postal Money Order fees. 
16. Pursuant to this Agreement the USPS may provide such technical assistance (including 

technical assistance to provide any employee training) as the USPS and appropriate officials 

authori7J'd to act on behalf of the Government of the Palau mutually agree to be necessary and 

appropriQte. This technical assistance would not require compensation from the Republic of 

Palau. provided that USPS is reimbursed the costs of such technical assistance from funds 

appropriated by the United States Congress. In addition, appropriate officials of the Government 

of Palau shall consult with the USPS with regard to fiscal planning and postal administration for 

the purpose of promoting economical and efficient postal services and programs. 

17. United States Postal Service Inspectors. in concert with the Republic of Palau law 

enforcement agencies shall be authorized to investigate any incident, issue or claim regarding 

mail originating from the United States destined for the Republic of Palau, and to seek 

reimbursement for any cost associated with such investigations. 

18. The obligations of the Governments signatory to this Agreement under this Article shall 

terminate September 30, 2024. Prior to the termination of this Agreement, the USPS and the 

Government of Palau shall enter into bilateral arrangements to establish mutually acceptable 

terms and conditions for the exchange of the mail between the United States and the Republic of 

Palau. 

19. If the Government of Palau is interested in joining relevant international or regional 

postal organizations, it shall give advance notice to the Government of the United States, 

including the USPS. As mutually agreed, the United States shall assist the Government of Palau 

in acquiring membership in relevant international or regional postal organizations. 

This Agreement to amend Article VI of the Federal Programs and Services Agreement 

Concluded Pursuant to Article II of Title Two and Section 232 of the Compact of Free 

Association shall enter into force on the date of the last note of an exchange of diplomatic notes 

by which the Government of the United States of America and the Government of the Republic 

of Palau inform each other that all internal procedures necessary for its entry into force have 

been fulfilled. This Agreement may be amended by the Govenunent of the United States of 

America and the Government of the Republic of Palau at any time by mutual written agreement. 

This Agreement shall remain in force through September 30, 2024, subject to Article IV, Title 

Four of the Compact. 
Agreement Between 

the Government ofthe United States of America 

and 

the Government ofthe Republic of Palau 

to Amend Article VI ofthe Federal Programs and Services 

Agreement Concluded Pursuant to Article U ofTitle Two and 

Section 232 ofthe Compact of Free Association 

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, 

have signed this Agreement. 

DONE AT \\:o~ok1-\... \)Sf:\ . in duplicate. this 3J day of~kw. 2010, in the 

English language. 1 

FOR THE GOVERNMENT FOR THE GOVERNMENT 

OF THE UNITED ST A TES OF AMERICA: OF THE REPUBLIC OF PALAU: 

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