Importers told they will be charged for insurance & other costs

moetului-dock

It seems that ASG is coming up with new ways to shore up revenues… and businesses are the target.

Chief of Customs Moetului Fuiava Sipili in a January 18 memo has advised importers that effective February 1st, Customs will include freight and insurance costs in calculating excise taxes. And the only exception to this edict is bulk fuel .

He cites section 11.1002, of the American Samoa Code Annotated .” that the basis for computing the excise tax is the price of the items, except for certain petroleum products, and shall include costs, charges, and expenses incident to placing the items in conditions, packed and ready for shipment to American Samoa. The basis for computing the tax on certain petroleum products shall be gallons; freight charges, insurance, and other shipping expenses shall not be included in the basis for computing the tax.

The customs chief concludes, “lf you have any questions about the above, please see me.”

Members of the Chamber of Commerc said that the memo from Moetului apparently hasn’t recievde wide circulation.

One importer said they only knew about the memo because a customs agent handed it to one of their workers at the dock.

A member of the chamber who’s in the accounting business has said that Customs has creatively rewritten the Code by inserting a semi colon where a period exists.  He adds the the letter also cites the wrong Code section.

Another company executive called the proposed change a perfect example of “taxation without representation!”

The business owner asked, “What happened to a planned January 11 meeting between the chamber and the governor and key staff (which was supposed]to address these issues???”.

The apparent change in the computation of the 5% excise tax comes as businesses are feeling their way through the new Customs scanner fees.