CPA says wharfage fee necessary

WHARFAGE fee is a calculated rate imposed by the Commonwealth Ports Authority on all businesses that use CNMI seaports, CPA said.

“It’s never blatant. Fees are structured. It was well discussed and the rate was set accordingly,” CPA Executive Director Carlos H. Salas said. He was reacting to an earlier statement by the Tinian Chamber of Commerce which described the rate as “unfair” to Tinian businesses.

Chamber President-elect Phillip M. Long said Tinian businesses are double-taxed because items get charged upon arrival on Saipan, and again when they reach Tinian.

Long said the Chamber wants CPA to explain its method of wharfage measurement to determine an accurate fee.

Salas said CPA’s wharfage fee is not a tax, but a user fee.

He said CPA charges a uniform rate at all seaports in the CNMI.

“We deeply sympathize with all of them on Tinian, Rota and Saipan, but all we want is to make all three competitive. All fees will make CPA functional,” he said.

Salas said the wharfage fee is necessary to fund seaport improvement projects.

“Money collected forms part of the funding used for improvement,” he said.

Since May 1, CPA has been collecting a minimum of $5.50 wharfage fee, which according to the Chamber is “unfair” because it is “700 percent higher” compared to the actual freight cost.

The Chamber also questioned CPA’s wharfage fee, considering that Tinian port “is falling apart.”

CPA said the Tinian seaport improvement project may be realized in three to four years.

“We’re working to improve the ports,” Salas said.

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