# Federated States of Micronesia (FM) **Capital:** Palikir **Currency:** US Dollar (USD) (USD) **Population:** 113,160 — Older stored figure; source year not documented. **Area:** 702 km² > Micronesia is a remote island federation in the western Pacific with four states (Pohnpei, Chuuk, Yap, Kosrae). Logistics rely almost entirely on sea and air freight. Imports are mainly food, fuel and consumer goods, while exports are dominated by fish. There is no VAT; instead the state levies import duties (standard rate 4 percent on the CIF value). The Customs & Tax Administration handles clearance electronically via ASYCUDAWorld. Long distances mean long transit times. Micronesia (ISO Code: FM) is located in the western Pacific and consists of four states spread across more than 600 islands. Politically, the state is a federation of island states with a presidential system of government and close cooperation with the USA under the Compact of Free Association. The climate is tropical-maritime with high temperatures, high humidity, and a pronounced rainy season, occasionally influenced by tropical storms. The economy is dominated by the public sector, complemented by fishing, agriculture, and limited tourism. Foreign trade heavily relies on fish products and aid financing, while imports of food, fuel, consumer goods, and machinery highlight dependence on international supply chains. Logistically, the ports in Pohnpei and Chuuk play a central role in maritime freight traffic. Due to its isolated location, the transit function for regional trade is low, mainly limited to transport between islands and neighboring states. Micronesia has limited road infrastructure that supports domestic transport. The national currency is the US dollar (USD), which facilitates economic integration with international markets. **Top Import Partners:** US, JP, CN, KR, AU **Top Export Partners:** JP, CN, KR, US, TH **Top Import Goods:** Food, Petroleum products, Consumer goods, Building materials, Vehicles **Top Export Goods:** Fish, Services **Key Airports:** - [Chuuk International Airport (TKK)](https://www.freight-academy.com/en/information/airports/chuuk-international-airport-tkk) - [Kosrae International Airport (KSA)](https://www.freight-academy.com/en/information/airports/kosrae-international-airport-ksa) - [Pohnpei International Airport (PNI)](https://www.freight-academy.com/en/information/airports/pohnpei-international-airport-pni) - [Yap International Airport (YAP)](https://www.freight-academy.com/en/information/airports/yap-international-airport-yap) - [HOUK (PULUSUK) CIVIL AIRFIELD](https://www.freight-academy.com/en/information/airports/houk-pulusuk-civil-airport-13947) - [Ulithi Airport (ULI)](https://www.freight-academy.com/en/information/airports/ulithi-airport-uli) - [Woleai Atoll Airport](https://www.freight-academy.com/en/information/airports/woleai-atoll-airport-36724) ## Customs & Import **Import VAT:** No VAT/GST. Instead, the state levies import duties (standard rate 4 percent ad valorem on the CIF value, food 3 percent). **Customs complexity:** medium **Customs system:** Electronic processing via ASYCUDAWorld. Import duties on CIF basis under Customs Act 1996 (Title 54): standard rate 4 percent ad valorem, food 3 percent, higher rates for tobacco, alcohol and sweetened beverages. **Customs authority:** [Customs & Tax Administration (CTA), Department of Finance and Administration](https://dofa.gov.fm/dofa-divisions/customs-tax-administration/) ## Logistics & Risk **Logistics role:** Remote island federation / Fisheries exporter **Economic area:** Pacific Islands Forum (PIF) / Compact of Free Association with the USA **Logistics risk:** medium **Dangerous goods relevance:** low to medium **Pharma/cold chain:** low ## FAQ ### Which customs system does Micronesia use? Micronesia processes customs declarations electronically via ASYCUDAWorld. The responsible authority is the Customs & Tax Administration (CTA) within the Department of Finance and Administration. Imports are assessed on a CIF basis. ### Is there a VAT on imports? No. Micronesia has no VAT or GST. Instead, the state levies import duties, with a standard rate of 4 percent ad valorem on the CIF value and 3 percent on food. ### What are the import duty rates? Under the Customs Act 1996 (Title 54), 4 percent is the standard rate and 3 percent applies to food. Higher rates apply to, among others, tobacco (50 percent), cigarettes, alcohol and sweetened beverages (25 percent). ### Which ports and airports handle trade? Sea freight runs through the ports of Pohnpei (Dekehtik), Chuuk (Weno), Kosrae (Okat) and Yap (Colonia). For air freight, the international airports Pohnpei (PNI), Chuuk (TKK), Kosrae (KSA) and Yap (YAP) are used. ### Which shipping companies serve Micronesia? The islands are supplied via liner services of Matson and Kyowa Shipping from Guam and Asia. Only a few ships call at the ports each month, which lengthens transit times. ### What seasonal risks exist? The tropical maritime climate brings typhoons and storms, mainly in the second half of the year, as well as heavy rainfall. High humidity burdens temperature-sensitive goods. ### Are preferential origin proofs required for trade with Switzerland? No. There is no free trade agreement between Micronesia and Switzerland, the EU or EFTA. Therefore, no preferential origin proofs are applicable in bilateral trade in goods. ## Sources & Last Verified - [https://dofa.gov.fm/dofa-divisions/customs-tax-administration/](https://dofa.gov.fm/dofa-divisions/customs-tax-administration/) - [https://fsmlaw.org/fsm/code/title54/T54_Ch02.htm](https://fsmlaw.org/fsm/code/title54/T54_Ch02.htm) - [https://dofa.gov.fm/wp-content/uploads/2025/07/FSM-Code-DutiesCustoms.pdf](https://dofa.gov.fm/wp-content/uploads/2025/07/FSM-Code-DutiesCustoms.pdf) - [https://data.worldbank.org/indicator/SP.POP.TOTL?locations=FM](https://data.worldbank.org/indicator/SP.POP.TOTL?locations=FM) - [https://gov.fm/2023-amended-compact-of-free-association/](https://gov.fm/2023-amended-compact-of-free-association/) - [https://www.doi.gov/oia/compacts-of-free-association](https://www.doi.gov/oia/compacts-of-free-association) - [https://www.matson.com/ocean-services/port-locations/fsm.html](https://www.matson.com/ocean-services/port-locations/fsm.html) - [http://www.ppa.fm/](http://www.ppa.fm/) *Last verified: 2026-06-22* --- *Freight Academy — Country Profile: [https://www.freight-academy.com/en/information/land/fm](https://www.freight-academy.com/en/information/land/fm)* *Markdown mirror: [https://www.freight-academy.com/api/md/country/en/fm](https://www.freight-academy.com/api/md/country/en/fm)*