Customs’ training centered on taxing right

Finance Secretary Larrisa Larson said a huge part of the training of its personnel at the Division of Customs Services is to make sure the items in cargoes that enter the CNMI’s ports are properly valued so they could also collect the right excise taxes.

“A lot of the taxes that we collect at the ports are a significant part of our revenue collection. We charge a lot of excise tax on items that come in the ports. These are items that were transported before they hit the stores, an initial source of revenue that we see right away,” said Larson.

“But one of the things that we do at Customs is making sure the cargo is valued properly. So we need to make sure that what the people are declaring is an accurate representation of the items that they are bringing in.”

Part of Customs officers’ training is they are taught to determine the correct way of charging the goods so they could apply it in real work, and in return businesses that are bringing in the goods are fairly taxed.

“A lot of stuff that we do is to train them on basic customs operations, how to behave and be professional with their jobs, how to assess proper tax rates on the items that they check, and how to do inspection in each of the ports. This is done in a professional way that it won’t be disruptive but still protect our borders,” Larson said.

She said the division, which is headed by director Jose C. Mafnas, has come a long way in a short period of time. “I’m really proud of what they have become. We put them [officers] in rigorous training and we know that there are a lot of challenges that would come their way. Still, they have met all our expectations and I know that we’re going to see a lot of good things.”

Larson added that they are still finishing up the report for fiscal year 2016 but they expect to see another increase in collection with the growth of economic activity on Saipan. Customs reported a 24.9 percent increase in its fiscal year 2015 collection, from $32.5 million to $43.3 million. The more than $10-million increase offset the decline in the government’s other revenue categories.

Increased imports, interceptions, and re-evaluations of undeclared and undervalued taxable commodities, and an increase in collection on accounts with outstanding balances contributed to the rise.

The division, in charge of controlling the flow of goods that enter the CNMI, graduated its sixth cycle last month, with officers undergoing separate training conducted by Superior Court Associate Judge Joseph N. Camacho and Oceania Customs Organization operations manager Tevita Tupuo, respectively.

Money laundering, drugs, and human trafficking are among the challenges the division is facing right now.