An Act to amend Section 1405 of Title 40 of the Palau National Code to restructure the cost, duration of validity, and classification of vessels for the tax assessed for foreign owned private yachts and cruise ships entering the Republic, and for other related purposes (RPPL NO. 10-38).

This Act lays down rules for increasing the fee charged to foreign yacht owners and cruise ships entering Palau waters, in order to protect the environment by reducing the number of vessels that take advantage of the low fees and enhance its contribution to the economy. Foreign water vessel tax shall apply to private yacht, cruise ships, commercially operated boats for recreational purposes, and any water vessel owned or operated by a non-resident. This Act sets forth provisions on the cost, duration of validity, and classification of vessels for the tax assessed for foreign owned private yachts and cruise ships entering the Republic.