New law establishes product seal to indicate genuine NMI product

Gov. Ralph DLG Torres has signed into law a House bill that establishes the CNMI product seal.

House Bill 20-86, introduced by Rep. Edmund S. Villagomez (Ind-Saipan) and co-authored by now House Speaker Blas Jonathan T. Attao (R-Saipan) in the previous Legislature, is now Public Law 20-89.

H.B. 20-86 would promote local products internationally and, at the same time, seeks to improve the tourism industry and enhance the Commonwealth’s export potential.

The legislation seeks to end the proliferation of products made by foreigners that are currently on the market that pose as goods that came or that were produced in the CNMI.

“As a result, the CNMI’s identity is being stolen and profited from. Many consumers are duped into believing that these products are genuine CNMI made item/s when they are not. The reality is that while these items are made elsewhere, the CNMI name is used on packaging materials to make the item appear genuine,” states P.L. 20-89.

The new law would protect the integrity of the CNMI and the value of its products through marketing distinction. It would also help genuine products from the Commonwealth compete with those that are similar but made elsewhere.

P.L. 20-89 aims to also give incentives to new entrepreneurs that produce locally-made goods that would proudly show the CNMI Product Seal to help the Commonwealth products get distinguished from the rest.

“Therefore, the Legislature is taking a proactive approach to protect the CNMI’s identity, encourage new entrepreneurs to produce locally made products and, at the same time, promote consumption and exportation of locally made products,” added P.L. 20-89.

The CNMI Department of Commerce will administer the provisions of the CNMI Product Seal Act of 2017 and shall promulgate the rules and regulations no later than 90 days after the enactment of P.L. 20-89, which would also establish a CNMI Product Seal Fund.

“[The CNMI Product Seal Fund], which shall be maintained separate and apart from any other funds of the government of the CNMI. Independent records and accounts shall be maintained in connection therewith.”

“Funds of the CNMI Product Seal Fund shall be used exclusively for the administration and operations of the CNMI Product Seal program. All funds collected from fees, charges, or fines levied pursuant to this Act shall be deposited into the CNMI Product Seal Fund.”

The local Commerce department shall develop the design for the CNMI Product Seal that would give products from the islands of Rota, Tinian, Saipan, and the Northern Islands a distinct image or one product seal for the entire CNMI.