House OKs final version of bill on grace period for paying excise tax

All 20 House members voted to adopt the conference committee report, which endorsed the passage of H.B. 21-104. The Senate is expected to follow suit.

Authored by House Floor Leader John Paul Sablan, H.B. 21-104 was passed by the House in February, and by the Senate, with amendments, in April.

A bicameral conference committee was formed after the House rejected one of the Senate amendments.

In its version of the bill, the Senate included a provision that would reduce to 15 days from 30 days the grace period for Rota and Tinian.

The House conferees agreed to include the Senate proposal, provided that the Third Senatorial District — Saipan and the Northern Islands —   is included in the 15-day grace period provision.

According to the committee report, “the conferees unanimously agreed to include the Third Senatorial District to remove any perception of discrimination.”

From left, House Minority Leader Tina Sablan, House Floor Leader John Paul Sablan, House clerk Linda Muna, Speaker Blas Jonathan Attao, House legal counsel John Cool and Rep. Marco Peter, back to the camera, in the House chamber during a session. Photo by Emmanuel T. Erediano 

The Division of Customs said the elimination of the 30-day grace period would help the agency collect from short-term or one-time importers, some of which are “high-risk” importers for customs violations.

The House Floor Leader, for his part, said his bill aims to deter “fly-by-night importers who have been taking advantage of the 30-day grace period.” These importers, he added, “import goods then walk away from their tax obligations.”

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