Customs denies transshipment charge

Acting Customs Director Jose C. Mafnas has denied allegations by the U.S. Department of the Interior of illegal transshipment of finished garment products into the CNMI, saying the local office has taken measures to ensure compliance with federal laws.

In a report submitted to the recently held 902 consultation talks between the CNMI and Washington, Mafnas said all inbound and outbound cargoes go through strict monitoring by the local customs service despite lack of federal assistance.

He also challenged a DOI-funded investigation and a subsequent federal report on labor, immigration and law enforcement that accused the island government of allowing entry of foreign-made apparel products for shipment into the United States.

In fact, Mafnas said, officials of the U.S. Customs Service who visited the island last year found no violation when they checked into inbound cargoes containing textile products for the garment manufacturing business here.

“Three U.S. Customs agents and our local Customs agents went to various garment factories and conducted physical inspections on inbound containers. None of these factories were found to be in violation of any federal or local laws,” he said at the meeting held last week at the Hyatt.

While Mafnas’ report was only released by the CNMI 902 panel at the end of the four-day talks on Friday, the local customs chief earlier had expressed dismay over the annual report submitted recently by the Interior to the U.S. Congress, claiming rampant unlawful transshipment of apparel products.

He also debunked transshipment charges made by Tom Gray, a private investigator hired by DOI, saying that he did not inquire at the local customs office to check procedures in inspecting inbound cargoes.

“I refute this allegation,” Mafnas explained. “U.S. Customs came twice and did unannounced onsite inspection of inbound container, reviewed our files of each factory.”

He added: “We too conduct 100 percent inspection on all inbound containers consigned to any garment factory. And never have we nor the U.S. Customs found any transshipment of finished garments enter the CNMI.”

The charge of illegal shipment of garment products is one of the allegations leveled by some Washington officials to justify a takeover of CNMI immigration and minimum wage standards — two issues which have strained bilateral relations in recent years.

While local garment firms have denied the accusation, DOI listed it in its yearly scorecard as one area which CNMI has failed to improve despite labor, immigration and customs reforms the island government has implemented in recent months.

According to Mafnas, the local customs office has intensified its law enforcement, in cooperation with the Drug Enforcement Administration, to arrest illegal drug traffickers in the CNMI, including suspected members of Yakuza gang, as well as prevent money laundering.

He also rejected claims that there is “political pressure” on his employees and that local customs agents are not prepared to handle 400 containers of materials being imported into Saipan each month.