GOVERNOR Ralph DLG Torres on Friday signed into law House Bill 21-104, which requires importers to pay excise tax upon clearing Customs while giving “qualified low risk” businesses a grace period of 15 to 30 days.
Authored by Rep. John Paul Sablan, the bill is now Public Law 21-42.
John Paul Sablan
Customs Director Jose Mafnas, who pushed for the bill’s passage, said it will help Customs deal with tax evaders as well as undervalued and undeclared imports.
Mafnas assured the business community that the measure targets only “high-risk” importers and that it would bring “fairness to the importers who pay their taxes faithfully.”
High-risk importers are those who bring in shipments in a short-term period and are likely to evade taxes. They are those who change their business names, address or just “disappear from Custom’s radar,” Mafnas said.
Long-term businesses who meet their tax obligations are considered low-risk importers.
P.L.21-42 states that by requiring the payment of the excise tax upon clearing Customs, “the credit risk associated with the nonpayment of excise tax will be eliminated.”
