Commerce: Foreign investors, retirees also face losing status

Foreign investors and foreign retirees—just like nonresident workers—face losing their immigration status if they are outside the CNMI by June 1, 2009, when the federal government takes control of local immigration, according to Commerce Secretary Michael J. Ada.

Commerce has issued 492 foreign investor permits as of Jan. 22, Ada said.

“A foreign investor permit,” according to Ada, is also an immigration status.

There are three types of investor permits: a short-term or exploratory business permit, a long-term business permit and a foreign investment certificate.

“If they plan on doing business here for, say, the next two years, and they don’t need to go back to their own country, then they’re fine. However, if they do need to exit to go back to their country for any reason, that permit will not allow them back in under that immigration category,” he said in an interview.

A two-year foreign business permit is issued to those who have at least $150,000 in investments in the CNMI, while a foreign investment certificate is issued to those with at least $250,000 in investments.

“Foreign investment is a significant issue because of our economy. …One of the reasons why the governor is going into litigation is it will have a detrimental impact on our economy and most people kind of look at this federalization [as a way to] get green cards. It has nothing to do with it; the whole situation of federalization is a detriment to our economy. It takes away our labor. It’s also going to impact our tourism markets. We’ll be losing the Chinese and Russian markets,” he said.

But the Saipan Chamber of Commerce, the umbrella organization of business groups in the CNMI, yesterday said the loss of immigration status by June 1 remains “pure speculation” as of this time because the proposed federal regulations governing labor and investor permits have not been published yet.

On Wednesday, CNMI Immigration director Melvin Grey posted a public notice stating that persons with CNMI immigration status but are outside the CNMI by June 1 will lose that status.

Jim Arenovski, president of the Saipan Chamber of Commerce, said it’s prudent to wait for the regulations to be published after which the public has 60 days to comment.

“I think that it’s scaring people for no reason,” he said.

Grey said the U.S. Department of Homeland Security informed the CNMI that local documents—including entry permits, visitor entry permits, electronic VEPs, authorization for entry for employment, re-entry letters, authorization to board and CMI permanent resident cards—will not be valid for boarding any aircraft or sea vessel to return to the CNMI on or after June 1, 2009.

Copies of the notice are posted on government offices, including the Department of Commerce’s Foreign Investment Office on Capital Hill.

Ada said also to be affected are foreign retirees. Foreign individuals at least 55 years old and have invested at least $100,000 in a residential property on Saipan or $75,000 on Tinian or Rota are qualified to apply for a foreign retirees investor certificate.

“I’m anticipating the regs aren’t going to be as stiff because I don’t think it’s the intent to pull these investors out. But what’s going to be significant is currently our investors can travel to and from [the CNMI] without incident. They’re going to have to comply with whatever regs the feds put out,” he added.