Palau

Compliance/Financial Considerations

If you intend to do any of the following in Palau, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial 

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS 

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws 

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2. 

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Palau, consult the campus Research Administration Compliance Office at 642-0120.  

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Palau. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance. 

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. 

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.   

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations

Articles

The US State Department's page on the PALAU may be found HERE.

Personal Safety

INTERNATIONAL TRAVEL HAS OFFICIALLY RESUMED, THOUGH FLIGHTS REMAIN RESTRICTED THROUGH AT LEAST JANUARY. THE GOVERNMENT PLANS TO ALLOW AT LEAST TWO FLIGHTS WITH THE US PER MONTH; OTHER FLIGHTS MAY OPERATE IN THE COMING WEEKS, BUT ENTRY WILL REMAIN LIMITED TO AVAILABLE QUARANTINE CAPABILITIES. INBOUND TRAVELERS MUST SELF-QUARANTINE AT THEIR PLACE OF ORIGIN FOR 10 DAYS AND TAKE COVID-19 TESTS AT THE BEGINNING OF THE SELF QUARANTINE PERIOD AND WITHIN 72 HOURS BEFORE DEPARTURE. INTERNATIONAL PASSENGERS MUST ALSO APPLY FOR A QUARANTINE CERTIFICATE AND BOOK A QUARATINE FACILITY IN ADVANCE. TRAVELERS MUST PAY FOR QUARANTINE IN MOST CASES. AUTHORIZED TRAVELERS MUST QUARATINE 14; ARRIVALS MUST ALSO AGREE TO MONITOR AND REPORT THEIR HEALTH FOR SEVEN DAYS BEYOND THE QUARANTINE PERIOD.

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.  

If you are traveling to Palau on University-related business, please sign up for the University’s travel insurance program here. For more information on the travel insurance program, please go here.  

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic.   

Palau operates as a democratic republic and the country's president is both head of state and of government. Presidential elections take place every four years. Palau's legislature is bicameral; the Palau National Congress is composed of the Senate (upper house), which has 13 members, and the House of Delegates, which consists of 16 members. Members of both houses are elected by public vote and serve four-year terms. Following the Second World War, Palau became a UN Trust Territory administered by the US.

There are currently no political parties in Palau, and this system of loose political alliances, which are quickly formed and dismantled, has the potential to destabilize governance. Palau's geographical isolation and dependence on foreign aid and tourism make it vulnerable to external economic shocks.

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned.  Individuals establishing a business or practicing a profession that requires additional permits or licensing should seek information from the competent local authorities, prior to practicing or operating a business.

Firearms: Firearms of any kind are strictly prohibited in Palau. The penalty for possession of a firearm or ammunition is up to 15 years imprisonment. Palau customs authorities may enforce strict regulations concerning temporary importation into or export from Palau of certain other items. You should contact the Embassy of Palau in Washington, D.C., for specific information regarding customs requirements.

Furthermore, some laws are also prosecutable in the United States, regardless of local law.  

Curfew: Koror State, where most tourist facilities are located, may enforce a curfew between 2:30 a.m. and 5:00 a.m., Monday through Thursday, and between 4:00 a.m. and 6:00 a.m., Friday to Sunday, and on national holidays.

Arrest Notification:  If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately.

LGBTI Travelers: There are no legal restrictions on same-sex sexual relations or the organization of LGBTI events in Palau. Palau’s constitution defines marriage as between a man and a woman.