THE enactment of Public Law 21-42, which removes the 30-day period for “high-risk” importers to pay the excise tax, has created a “high demand” for “low-risk importer” consideration.
For this reason, Rep. John Paul Sablan said he is introducing House Bill 22-27 to allow the Division of Customs to collect application fees from those who want to be considered as “low-risk” importers.
Prior to the enactment P.L. 21-42 last year, the Legislature and the Customs director agreed that low-risk importers are those who have a long history of importing products to the CNMI; have been paying their excise tax timely and consistently; and have little to no chance of violating customs laws.
Among the businesses considered as low-risk importers are local companies, such as Joeten Enterprises, Herman’s Bakery and Pacific Trading.
High-risk importers, for their part, are short-term or one-time importers who could “walk away” from their tax obligations.
Sablan’s H.B. 22-27 will remove the provision in P.L. 21-42 that provides for a 15-day grace period for low-risk importers.
Instead, Customs will be allowed to promulgate regulations regarding the 30-day grace period, and “establish application fees for low-risk importer applicants….”
But firearms may not be released until the complete payment of all taxes due and owed are made, and upon a showing that the firearm has been properly registered and that the owner has a valid weapons identification card or firearms identification card.
H.B. 22-27 states that many other importers who think they can qualify as low-risk importers “are applying or have applied” to Customs, hoping that they will be able to avail themselves of the 30-day grace period.
Due to the “high demand” for the low-risk designation, H.B. 22-27 states, “It would be extremely pertinent to provide the Division of Customs with the authority to assess fees for such applications.”
The funds that can be earned from the fee “can be used to stimulate the CNMI’s economy and provide financial cushion to our ailing situation,” the bill also states.
John Paul Sablan
