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Gov’t cuts fees for small aircraft
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Posted on Mar 28 2001
In light of the persistently slow rally of business on the islands, the finance department has recommended the reduction by 50 percent of customs, immigration and quarantine fees imposed on small aircraft operating at all CNMI airports.
Finance Secretary Lucy Dlg. Nielsen said the move would help maintain a positive relationship between the Commonwealth government and airline companies servicing the Northern Marianas.
A Notice of Emergency Repeal and Reenactment to Customs regulations regarding the CIQ fees has been promptly issued by the finance department, citing the current state of the local economy.
Ms. Nielsen said current CIQ charges are a financial hardship to operators of smaller aircraft, adding that the immediate repeal of a provision in the Customs Regulations is a move to alleviate the carriers’ financial woes.
She pointed out that by amending the regulation, the Commonwealth Ports Authority will play a vital role in expanding the tourism base and increase the number of visitors to the Commonwealth.
“The Asian economic crisis has had a direct and substantial adverse impact on the CNMI’s tourist arrivals, and airlines servicing the Commonwealth have reacted to the drop in arrivals by either re-directing or decreasing the number of flights to CNMI,” said the finance secretary.
Aircraft with a gross weight of less than 20 tons stand to benefit on the discounted rate to be offered by the ports authority, CPA Board Chair Roman S. Palacios said.
The current overtime charges for flights arriving after normal working hours is established at a flat rate of $35.00 per flight in addition to the per arriving passenger fee of $1.00 and per cargo pound rates.
The DOF secretary believes that it is critical to the efforts to expand the tourism industry without being competitive in the area with respect to fees charges to airlines for serving the islands.
The move will also create incentives to induce existing airlines to maintain flights to the Commonwealth, Ms. Nielsen stressed. She also hopes to make the emergency regulation as a permanent measure. (EGA)
