Country profile
Federated States of Micronesia
FM · FSMAs of: 6/22/2026Remote island federation / Fisheries exporter
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.
Overview
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.
Mentioned countries
Glossary terms
Customs & Import/Export
Import 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.
Export system
Low export bureaucracy, dominated by fish products. Processing via the CTA with ASYCUDAWorld; no general export duties provided.
Import VAT
- No VAT/GST. Instead, the state levies import duties (standard rate 4 percent ad valorem on the CIF value, food 3 percent).
Import documents
- Commercial invoice
- Packing list
- Bill of lading (B/L) / Air waybill (AWB)
- Customs declaration (SAD/ESAD)
- Import licence (commercial)
Export documents
- Commercial invoice
- Packing list
- Bill of lading / Air waybill
- Customs export declaration
- if applicable, fisheries or health certificate
Origin proofs / FTA
No free trade agreement with Switzerland, the EU or EFTA; in bilateral trade in goods, no preferential origin proofs are applicable.
Restricted & prohibited goods
Import controls, including for weapons, ammunition, drugs and cannabis, and quarantine for plants, animals and certain foods. Commercial imports and exports require a licence.
Export controls & sanctions
FSM maintains no independent sanctions regime; as a UN member, it implements UN sanctions. Close ties to the USA via the Compact of Free Association (until 2043).
Without warranty — always verify with freight forwarder/customs agent and official authorities.
Customs / Import / Export (Rest) — General process
Quick operational overview for international shipments. Depending on the destination (Oceania, Middle East, or other regions), steps, pre-filings and documents may differ.
Documents (typical)
- Commercial invoice (description, value, Incoterms)
- Packing list (weights, dimensions, packages)
- HS code / tariff classification
- Proof of origin / preference docs (where relevant)
- Transport documents (AWB / Bill of Lading) depending on mode
Process (simplified)
- Prepare export (docs, HS code, origin)
- Import clearance in destination country (declaration, possible checks)
- Release and delivery; duties/taxes according to classification and value
Common pitfalls
- Vague description or missing HS codes → delays and clarifications
- Incoterms unclear: who clears customs/pays charges?
- Incomplete origin data → preferential treatment may not apply
- Inconsistent documents (invoice vs packing list vs shipment data)
Important: Requirements depend on goods, origin, Incoterms, value, and consignee. When in doubt, confirm with your broker/forwarder and official sources.
Official links
Note: regional/general sources. Country-specific authority links will be added iteratively.
Trade
Freight Infrastructure & Transport Network
Cargo airports
- Pohnpei International (PNI)
- Chuuk International (TKK)
- Kosrae International (KSA)
- Yap International (YAP)
Seaports / access ports
- Pohnpei (Dekehtik/Kolonia)
- Chuuk (Weno)
- Kosrae (Okat)
- Yap (Colonia)
Top trade lanes
- USA/Guam - FSM
- Japan - FSM
- China - FSM
- South Korea - FSM
- Australia - FSM
Risk & Operational Notes
Risk notes
Main risks: long distances, low ship frequency (only a few calls per month) and strong import dependence. Long transit times and limited handling capacity.
Seasonal & weather risks
Tropical maritime climate with typhoon and storm risk (mainly in the second half of the year) and heavy rainfall. High humidity burdens temperature-sensitive goods.
Current logistics notes
Supply via liner services of Matson and Kyowa Shipping from Guam and Asia. Compact funds (USD 3,3 billion until 2043) support infrastructure. Status 2026.
As of: 2026-06-22
Operational notes – no claim to completeness. Verify with your freight forwarder and official sources.
Airports in this country
Latest News
No news for this country yet.
View all news →Sources & Data Confidence
Official sources
- dofa.gov.fm
- fsmlaw.org
- data.worldbank.org
Source references without warranty. For legal/tax decisions consult official authorities.
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.
Which trade partners are important for Federated States of Micronesia?
Which logistics terms are especially relevant for Federated States of Micronesia?
For international shipments, these terms are a good quick start:
Next steps
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