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Sablan favors hiring DC consultant
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Posted on Jul 30 2005
Saipan Chamber of Commerce president Alex Sablan favors the government’s continued hiring of a consultant to lobby for the amendment of Headnote 3(a) in Washington D.C., agreeing that its services are most needed at this time.
“The SCC implores and supports the administration to continue this extremely important trade work of Sandler, Travis and Rossenburg to provide the best opportunity for the tariff amendment of Headnote 3(a),” said Sablan.
He said “the numbers are real—the apparel industry has been declining, as have revenues for all.”
“We need to achieve this amendment quickly or buyers will source from alternative regions. We look forward to assisting the Lt. Governor [and] Washington Representative as they push for the fast tracked passage of the amendment,” Sablan said.
Lt. Gov. Diego T. Benavente, who recently traveled with Sablan to Washington D.C., earlier recommended the continued hiring of the consultant, whose service for the CNMI government ends today. The firm is paid $15,000 for a month’s work.
Benavente said the government urgently needs the firm to get the congressional amendment done within the year.
The amendment is seen to boost the CNMI garment manufacturers’ competitiveness in the international market.
Benavente earlier warned that, without a timely amendment of the law, this will put the CNMI garment industry at a great risk of losing its buyers. Any sudden pullout of buyers, he said, would mean loss of 40 percent of government revenues.
The CNMI is asking Congress to amend Headnote 3(a) of the U.S. Harmonized Tariff Code to allow the local manufacturers to reduce the local value-added requirement on garment products from 50 percent to 30 percent.
Local authorities said this is similar to what Congress has already granted some foreign countries.
