Propst eyes heavier penalties for resale of troop store beer
For Rep. Edwin K. Propst (Ind-Saipan), one way to curb the practice of reselling beer and other alcoholic beverages bought from the Army and Air Force Exchange Service troop store is to impose heavy penalties on erring stores.
Propst said there are confirmed reports of stores that are buying beer from the troop store in Puerto Rico at a cheaper price, then selling the same items to the public without paying the proper taxes.
The lawmaker explained that the military store extends a privilege to enlisted personnel and their immediate relatives that allows them to buy liquor and other items at a discounted price. The items are often sold in large containers and are meant only for personal consumption.
However, some unscrupulous individuals have taken advantage of this and have been buying items—particularly beer—in bulk that are then sold to stores. The stores then resell the beer to customers who unwittingly buy the items.
“One of the ways that I am looking at this as far as legislation is concerned is to impose an immediate and heavy penalty to these stores,” said Propst in an interview.
He added that a typical 30-pack beer could be bought from the troop store at $21.50. The same pack would then be sold to retail outlets, with $5 being added to the actual price.
Propst said the retail outlet can then make a nice profit from selling the beer and “cheating the system.”
The lawmaker added that severe fines can be a deterrent to this illegal practice, but there should also be strict enforcement from the police.
Propts said he has initiated talks with businesses on Saipan and military representatives as well to address the concern. “It is unfortunate that the military is well aware of the situation,” Propst said.
Is that all you can do Mr. Propst? Please think outside the box. I taught you have brain that’s why I voted for you to help the economy grow. Another young gun on the payroll.
This is a big blow to the local businesses if this does not get rectified…..he’s doing the right thing.
Pal, FYI. The loss in taxes from this practice is in the hundred thousands, and could be in the million dollare range. I hope that point alone is worth considering a change in your point.
Hafa adai, pal. With all due respect, this ‘young gun on the payroll’ is doing more than many others on the payroll. Sure, there are other matters that may carry more weight with you, that you think should be addressed first… but what happens to the smaller issues? Shall we just continue the trend of the last 8 years and let them fall into the cracks until we simply forget that they exist? At the very least, Mr. Propst’s decision to pursue these matters shows real character and initiative. I cannot legally vote in the CNMI, but if I could, I would vote for Ed and a handful of others who have actually gotten up off their butts to do good for the island and its people, not just to go outside for a cigarette less than 10-feet from the doors of the office up on the hill. All I’m saying here is that even the little things count and add up to something great for the future. We’re able to enjoy sitting under the shade of a tree because somebody planted a seed many years before.
for the community, these issues, no matter how small, do help. kudos to the lawmaker for addressing them
How dare you, who ever your are? Selling goods from the px, for your personal gain. Don’t abuse the ability to enter the px as a sponsored person. This is a good bill, I hope no vets or service members are in on this. Good work, Congressman Propst..
You service members are bunch of whiners, you can keep your own beer for $21.50 I’ll pay $30.00, you are under paid that’s why they created your own bargain store. You make it seem as if it’s so hard to become a service member, its only taking a simple test or going to college for four years and you are in, you just play G.I Joe for 20 years and now you stand with your chest to the sky as if you went to war every single day. Your extensive training should have thought you to become more professional than arguing over a case of beer. No further comments, let the negativity reply come pouring in, it just excites my day with laughter!
Thanks for such an insensitive remark. I’m sure you feel proud everyday, knowing that someone is protecting you, without you even knowing it, or saying “Si Yu’us Ma’ase”. He’s not sleeping…
If it’s so easy, then join up, Taga, and show us how it’s done. I can assure that there’s a LOT more to it than passing a simple test or graduating from college.
Someone out there, this very moment, is fighting and protecting your freedom to talk so ignorantly. Might be your own blood too.
Right on, shopping on the base and reselling it is purely wrong. Finally, someone to get it right. If we always look the other way, the crap will surely be seen in the direction we are facing sooner or later. Great Job!
Buenas,
Such issue mentioned above had been address in the pass by another CNMI House of Representative member. Matter of fact, I did a researched on such matter and I went as far as tracking down how far the merchandises were distributed. How can you track down business entities that provide their in house products (AAFES) to their customers (tourists) behind close doors? Or during sight seeing tour in their company’s vehicles or boats? There is a misconception that only some stores are marketing the illegal products (tax free), but there are other business who are cashing in. $21.50 for a thirty pack (beer) at the Post Exchange or the Troop Store and the going rate for each beer is $5.00 in the black market. There is a 500 percent profit for each thirty pack sold. The feds needs to step in and do something, because the CNMI Government can only do so much to address such predicament. The scam is a coordinate effort and tracking the PX items (tax free) is next to impossible.
Many of us earned the privilege to shop at the Exchange and Commissary. And we are not enlisted personnel.
http://www.cnmileg.gov.mp/documents/house/hse_bills/18/HB18-088.pdf
Si Yu’us Ma’ase
So this is not original with him? He heisted Rep. John Paul P. Sablan’s bill from two years ago? But he knows how to get publicity for himself!
There is already a law in place, by AAFES making any item that is bought at the store illegal for resell! By the way, I’m glad you mentioned that we are not enlisted personnel! Even employees of the store are authorize to buy, even though they have no connection with the military.
AAFES doesn’t make laws. AAFES doesn’t enforce laws. All AAFES cares about are its sales numbers at the end of the day, and meeting the needs of their TRUE customers. It’s the abuse that’s being discussed here. I’m sure the solution is somewhere in the enforcement.
Our buddy Pal down there seems very disappointed. I on the other hand am happy for Ed doing something than just some senseless bill some of those blokes on the hill are coming up with. Either senseless or bill to fill up there pockets.
Buenas Sir,
We need to give credit to people when credit is due. To say that other legislature had been introducing useless bills to fill up their pockets is at best unfounded. I personally wrote to the letter to the editor several years ago relating to the abuses at the PX and a bill came to fruition based on my allegation. I was task to come up with recommendations, but I refused to do so because the very people I knew were implicated and I was not in the position to get them in trouble.
Why not limit the amount of beer a person can buy at the Troop Store? It shouldn’t be too hard to figure out that the guy who buys a pallet of beer a week is not hosting a rosary.
You have a good point there. The problem is within AAFES management. They want to make more money/sale, they allow people to sponsor others to shop there at AAFES. So these people being sponsored which are non card holders, then buy these beers and nobody knows what they do with them when they leave. AAFES should stop sponsoring non card holders to shop at their stores. CNMI government should invite Maria(AAFES manager) to the legislature and find out more from her in order to eliminate this problem.
Buenas,
If I am not mistaken, the AAFES management (Maria) does not make any rules relating to who enters her facility. It is the discretion of the Commanding Officer of the base or facility. In some posts or bases throughout the United States, civilians may enter the base exchange or commisary with a sponsor. The key word is enter and they are not allow to buy anything. You have to have an authorization or the privilege (via DoD or any federal agency, etc.) to utilize such facility. To my understanding, Maria only manage and implement rules and regulation given to her from higher ups.
Also, Maria work for the federal government and the CNMI Government has no jurisdiction or authority to require Maria to appear before our legislature. The Post Exchange in Saipan is under the Federal Jurisdiction and our government has no authority within such facility. The only time the CNMI Government can get involve with items purchased at the PX is outside the facility and when our law or laws had been violated relating to products acquired from the troop store.
Si Yu’us Ma’ase
Maria does not make any rules? So why is it that the prices of goods in Saipan AAFES is higher than any other AAFES worldwide? You can ask any other customers (Retirees, Active, Reserve, etc..) at AAFES and they’ll tell you more. Lot of things are happening in that store.
But, you are right about CNMI Government with no jurisdiction or authority to require Maria to appear before our legislature.
Buenas,
The going rate on the black market is $5.00 per bottle. Off course there were string attached to such arrangement. You might have to fork up more money in order to fulfill why you were in such places to begin with. Do you think the criminal elements would risk everything for $34 a case? I did a researched or I went undercover to get to the bottom of what becomes of the items purchased from the PX. It took me a span of over three years to start getting the picture. There is something that humans paid for thousands of years and no society can put a complete stop to such behavior. Criminal elements were very creative in maximizing their profits and people were paying the $5.00 a bottle. Also the hard liquors from the PX is something to look at, for every bottle purchase at the PX, depending on how much they charge per glass they served, they would get their 500 percent profit. Everything I had just described above happens behind close doors, and the main customers were tourists, but at times you would see people who resides on island. Have you ever taken your bottles or cans home after a night out? Such arrangement is a breeding ground for greed.
“To stop suffering, stop greediness. Greediness is a source of suffering.” – Buddha.
Did anyone even go over to the PX to talk to anyone? Did anyone go over to talk to the post commander? I did not see any post that actually is accurate. Mostly just ignorant comments.
It is as simple as taking a test and going to college. Police Officers and Firefighters sacrifice their lives so people like you can enjoy life to the fullest, do you hear them whining and complaining about beer, I mean come on?
You seem to forget that the main topic/issue in regards to the article is about legally buying non-taxed beer for personal use that is not to be resold for financial gains but then reselling the item for personal gain and profit for the seller, and the corrupt store that will also gain on the huge profits selling the item. We have too many tax evaders that are not contributing to the economy. There should be no exceptions to these neglected/criminal factors.
Please let us not discuss about the sacrifices of ALL the service members from law enforcement/fire//military anymore. They do not need negative publicity in this forum, unless the specified service member is the subject of the story. Such as the cop(s) arrested for ICE.