admin's picture

Increased fees would make Fiji products more expensive in U.S.

SUVA, Fiji (Fijilive, May 1, 2008) - The Fiji Embassy in the United States has filed a submission with the US Customs and Border Protection Agency (CBP) on behalf of various Fiji agencies opposing a new CBP proposal which, if implemented could increase the prices for some Fiji exports to the USA.

On January 24, 2008, the CBP issued a notice in the Federal Register proposing to eliminate the "first sale rule" that when an import transaction involves a series of sales, the customs import value upon which CBP assesses import duties, fees and taxes may be based on the sale price of the first arm’s length transaction for goods clearly destined for export to the US.

In a statement today, the embassy said this means that US importing companies can lawfully minimize import duties, fees, and taxes by basing the customs import value on the manufacturer’s sale price to an intermediary rather than the intermediary’s sale price to the US importing company.

Potential impact of the CBP’s proposal are increased import duties, fees, and taxes paid by US importing companies and prices paid by US consumers.

For Fiji, this could mean high tariffs charged by the CBA for those items exported from Fiji to the USA and caught by this rule.

"This cost would make Fiji products more expensive in the US market and depress demand for our products.

"Alternatively, if the increase in tariffs is absorbed by the Fiji producers, it would mean a decrease in profits and foreign exchange revenue.

"In an already economically strained environment, Fiji products cannot afford to be subject to increased tariffs," the embassy said.

The embassy said the Customs and Border Protection Agency had invited comments from the public by April 23.

The Fiji Embassy submitted opposing comments from Fiji’s Trade Development Committee, which is a central body comprising of key Government, private sector and civil society stakeholders that monitor and guide Fiji’s trade policy, trade negotiations and external economic relations and other private exporters from Fiji.

Rate this article: 
Average: 3.5 (11 votes)

Add new comment