Gov. Arnold I. Palacios delivers his remarks during the ribbon-cutting ceremony for the expansion of Docomo Pacific’s call center on Middle Road in Gualo Rai on Friday.
Photo by Emmanuel T. Erediano
U.S. manufacturing companies that import components of their products are looking at relocating to the CNMI in response to President Donald Trump’s imposition of higher tariffs on foreign countries such as China, Gov. Arnold I. Palacios told reporters on Friday.
He said Mazda, an automaker, is “looking at opportunities here,” adding that “we talked to Mazda a couple of months ago.”
He said the Commonwealth Economic Development Authority and the Department of Commerce are reviewing federal laws that govern tariffs and are looking into how the CNMI government can bring in foreign investors and U.S. manufacturers that import their supplies from Asia.
“That is going to be something that we are going to be looking at,” Palacios said.
“We are looking into it and see what kind of opportunities [it will bring] to the Commonwealth. We [are] looking at how the Commonwealth can be in a position to take that opportunity,” he added.
According to Title 19 of the Code of Federal Regulations pertaining to customs duties, “Importations into Guam, American Samoa, Wake Island, Midway Islands, Johnston Atoll, and the Commonwealth of the Northern Mariana Islands are not governed by the Tariff Act of 1930, as amended, or the regulations contained in this chapter.
“The customs administration of Guam is under the Government of Guam. The customs administration of American Samoa is under the Government of American Samoa. The customs administration of Wake Island is under the jurisdiction of the Department of the Air Force (General Counsel). The customs administration of Midway Islands is under the jurisdiction of the Department of the Navy. There is no customs authority on Johnston Atoll, which is under the operational control of the Defense Nuclear Agency. The customs administration of the Commonwealth of the Northern Mariana Islands is under the Government of the Commonwealth.”
Palacios said, “We need to … assess … that because we have been [getting] some very interested inquiries from U.S. companies and even some foreign investors [are] taking a look at it.”
As for imports from China, the governor said he doesn’t think the CNMI will be affected by President Trump’s tariffs against the world’s No. 1 exporter.
“We have our own customs system,” Palacios said.
