Saipan factories wait it out

Local
Friday, August 10, 2007

The 14 remaining factories on Saipan had July gross sales of nearly $27 million, yielding user fee collections of $998,522.

For the first 10 months of FY 2007, factory sales totaled $317 million, and user fees for the same period are at $11.75 million.

Although sales and tax collections have remained almost constant for the past 10 months, 2007 revenue as a whole will be down approximately 30 percent from 2006.

The Fitial administration, however, remains hopeful-through measures under consideration in the U.S. Congress and the Bush administration-that Saipan factories could possibly continue their operations into the year 2009.

Gov. Benigno R. Fitial earlier expressed his “sincere appreciation” to U.S. Representatives Jeff Flake (R-AZ) and Luis Fortuno (R-PR) for the introduction of H.R. 3165, “The Insular Areas Trade Enhancement Act”, which would amend General Note 3(a) and enable Saipan factories diversification in production through lessened local value-added requirements.

The Governor's special assistant for trade relations and economic affairs, Richard A. Pierce, expressed optimism that the U.S. Administration's Committee for the Implementation of Textile Agreementshas issued an Aug. 8 directive adjusting import limits in certain cotton, wool, manmade fiber, silk blend and other vegetable fiber textiles and textile products produced and manufactured in China and exported in 2007.

Pierce stated, “Governor Fitial will file written material with House Natural Resources Subcommittee on Insular Affairs Chairwoman Donna Christensen, and the Subcommittee Members, requesting support for H.R. 3165, during their visit to Saipan this Aug. 15, 2007. Representatives Flake and Fortuno are members of Chairwoman Christensen's Subcommittee, as well.”

Chistensen (D-USVI), Bordallo (D-Guam) and Faleomavaega (D-American Samoa) sent support letters for the prior introduced General Note 3(a) amendment legislation, S. 1954, when offered for attachment to last year's Miscellaneous Tariff Bill in the U.S. Senate. (PR) [1641]