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Shortened grace period to pay excise tax is enacted
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Posted on Feb 11 2021
A bill that reduces the 30-day grace period for importers to pay the excise tax on dutiable goods that require Customs inspection and clearance is now a Commonwealth law.
Gov. Ralph DLG Torres notified Senate President Jude U. Hofschneider (R-Tinian) and House Speaker Edmund S. Villagomez (R-Saipan) last Friday that he has already signed into law House Bill 21-104. The bill becomes Public Law 21-42.
The previous law allows taxpayers to pay the excise tax within 30 days after the entry of the goods that are subject to an excise tax. However, that became a loophole for several fly-by-night operators to avoid paying this tax. By the time the 30 days are up, the importer could no longer be found. This time, with the new law, taxpayers are required to pay the excise tax upon clearing the Division of Customs.
The House passed the bill with amendments in February 2020. The Senate passed the bill with amendments in April 2020. The House then rejected the Senate’s amendments.
Rep. John Paul Sablan (R-Saipan), who is the author of the bill, said in an earlier interview that the Senate amendments included provisions that would only apply to Rota and Tinian, and not Saipan, and that they thought it’s unfair.
Sablan said when the conference committee sat down to iron out their differences, they just added Saipan to the bill, so it becomes a generalized Commonwealth-wide approach for all senatorial districts.
