CUSTOMS and Quarantine Services on Thursday shared feedback from importers regarding the enforcement of Public Law 21-42, which requires the payment of excise tax upon clearing Customs.
In general, according to Customs and Quarantine Officer Reina Camacho, the responses from businesses “have been that the new practice is fairer.”
The new rules, she said, allow importers who pay their tax obligations on time to avail themselves of a 30-day grace period to pay excise taxes.
“For these companies, it is business as usual,” Camacho said.
She said of the 276 applications for a 30-day grace period, 214 were approved, 16 were disapproved, five are conditional and 34 are still pending.
Applications are usually denied for non-compliance or because of the import history of the applicants, she added.
She said a taxpayer is non-compliant with Customs importation laws and regulations if there is prior violation, undeclared items, undervaluation of imports, contraband offense, counterfeit offense, nonpayment of taxes, and non-compliant payment history.
Applications that were denied on the basis of import history indicate that the applicants import only once a month or have no import history and no physical address.
Camacho said those who have not yet applied for the 30-day grace period must pay upon clearance. Those who have been approved for the 30-day grace period, should pay within 30 days to remain in good standing and avoid late charges.
If they anticipate any delays with a payment, importers should inform Customs.
Camacho said the intent of P.L. 21-42 is to prevent infrequent, non-law abiding/non-compliant businesses from taking advantage of the 30-day grace period to pay taxes.
Containers are unloaded from a cargo ship at the Port of Saipan last month.
