At a port users meeting last Friday morning, business owners and their representatives where told by Deputy Treasury for Revenue, Keith Gebauer, that not only will they pay the new $200 per container to be scanned at the main dock, but the current $60 per inspector to physically inspect contents of a container still applies.

“The new container fee as well as the current inspection fee will for sure be passed on by wholesalers to retailers, who will then pass it on to consumers — the ones who end up paying for all these fees,” said a retailer store owner on the Western side, who contacted Samoa News on Saturday after learning from others about what occurred at the Port users meeting.

The storeowner, who asked not to be identified, has echoed the same concern voiced by lawmakers last year, when debating the Administration bill, which is now law. Samoa News notes that the initial proposal from the administration was at least $350 for a 40 foot container, but that was reduced by lawmakers to $200.

Samoa News understands that as of last Friday morning the canneries — StarKist Samoa and the can manufacturing plant, Talofa Systems Inc. — have not received clarification back from ASG on whether the two companies are exempted under their tax exemption certificates. StarKist Co., corporate office didn’t immediately respond to Samoa News’ request for comment on this issue.

Port Administration, in conjunction with Treasury’s Customs Division, called the port users meeting in a Mar. 29 letter, regarding container scanning operation which goes live today — the same time the fee of $200 per 20 feet container or over goes into effect.  Treasury announced two weeks ago the effective date of the container scanner fee.

Gebauer, who is currently overseeing Customs Division, was bombarded with numerous questions from the business representatives at the meeting.

Former Chief of Customs, Moetulu’i Sipili Fuiava Chief of Customs has taken up another position within the Treasury Department and no longer heads the Customs Division, according to a Mar. 28 memo from ASG Treasurer Uelinitone Tonumaipe’a. (See Friday, Mar. 31, 2017 Samoa News edition for story.)

At the start of the two-hour meeting at the Port Administration building at the main dock, Port Administration deputy director Christopher King explained that the meeting would provide a layout of the port operation, when the scanner goes lives today, and how Port operations will be affected.

“Because it’s going to be a work in progress... we’re probably going to find out things that will probably work and not work. And we want port users to come back with feedback on how to better to implement the system,” King said.

“I can tell you now, the scanning [of containers] isn’t going away” said King and explained where the container scanner is located, providing a slide show of the “safety zone” area — 164 feet by 131 feet — marked by ‘red traffic cones’, inside the main dock, just few yards away from the guard gate at the entrance to the port.

He said the scanning area selected is the “least affected area” as trailer trucks with containers are scanned and exit out the main gate. He said trailer trucks coming into the port, will enter through the gate next to the “net yard” — which is the side of the dock next to the Tauese P.F. Sunia Ocean Center.

Businesses owners and representatives were also told that there would be no scanning operation when cruise ships call into the Port of Pago Pago. For example, on Apr. 22, two ships will be in town.

“What about customers needing [container] shipment the day the cruise ship comes in?” asked one of the port users, and Gebauer explained that scanning operation is the first time for Customs. “We’re doing everything the first time... and this is work in progress. We will do everything to accommodate your business needs,” he said.

Gebauer also told businesses that the intention from the start in launching the scanner is to make it as easy as possible for businesses “but that’s not going to say that we will (not) have bumps along the way.”

“Over these next couples of weeks, your feedback is critical,” he said and noted that scanning is during the day, but “we can work out something with the stevedoring for scanning at night, [and] we can come to some type of understanding.”

He also suggested having containers scanned and inspected by Customs before cruise ships arrives.

“I guess the real question here, are you going to stop the flow of containers going out — the flow of commerce — just because your scanner is not operational, when cruise ships are in?” one business representative asked.

Gebauer replied, “I wouldn’t think that we would do anything like that... because of those circumstances and if need to adjust, we’ll adjust.”

With so many questions from business representatives, on a wide range of issues, one businesswoman asked, if the start of scanning container can be pushed back, to which Gebauer said port users were told about the scanning “going live” today.

He said that at some point today, or towards the end of the day, Customs will review the process, working in particular with stevedoring companies, and making adjustments as necessary.

It was agreed between ASG and port users that another meeting would be held tomorrow (Wednesday) to discuss and share feedback from port users after two days of scanning operations.

Gebauer pointed out that the scanning operation is not going away, because it is the law. Additionally, scanning is a security enhancement tool that the government has invested in, for that intended purpose.

Asked by a business representative if scanning of containers means, “you’re doing away [with Customs] inspection fees?”, Gebauer replied “No”, adding the “scanning will help us detect things, [such] contraband, weapons, based on what the x-ray [or scanner] reveals.”

The physical inspection of containers, “matching up what you declare and what’s actually in [the container], there’s still going to the physical inspection, Gebauer said.

A follow-up question from the business person, “So we will be paying $200 per container, plus $60 per [customs] inspector and inspection?” to which Gebauer said “Yes”. This was greeted with “wow” from port users.

For further clarification, another business person asked, “So we still pay the $60 for manual inspection of the container, although we’re paying for the container going through the scanner?”

Gebauer explained that the $200 fee for container scanning “is for border enhancement” and has nothing to do with physical inspection of containers to verify what’s declared inside the container.

Among several questions raised by StarKist Samoa official Taotasi Archie Soliai, is clarification on scanning on the dock of incoming and outgoing containers. He said StarKist has a lot of empty containers coming back on the dock; and that the former Chief of Customs had made a statement that all in bound and any out bound containers — which will be empty — are subject to the container scanner fee.

Gebauer said that there have been containers in the past, that were supposedly empty, but when they’re opened up, they are not empty. He quickly added that he was not making any reference to StarKist.

At this point, according to Gebauer, Customs will focus on all containers arriving in the territory.  “So for right now, we’re just learning, teaching ourselves of incoming [containers], protecting our border,” he said and noted that he’ll get “clarification on the actual law” regarding scanning of outgoing containers.

Business representatives also suggested that Customs carry out “random” scanning of incoming containers and not of all of the containers.

Both Gebauer and King sought to reassure the business community that Port and Customs wants to work closely with them and that their feedback is very important.

Several times throughout the meeting, Gebauer stated that Customs wants to work together with the business community to make the scanning process easy.

A female business representative asked Gebauer, “Why all of a sudden you want to work” with the private sector now?

“Why were we not part of the planning,” the female representative asked, and noted “why was the public” not involved in the planning.

Gebauer noted that it’s been a few days since he has taken over the task of overseeing Customs Division and “I look back on it, we probably could have done a better job on that” and it was not any “ill intentions to keep the public at bay.”

Based on what was said at the meeting, vendors were working to take off the dock any containers of supplies over the weekend, before today’s effective date of the $200 scanning fee per container.

Also raised at the meeting is the scanning time, to which Customs says it’s about a 1- 2 minute scan. However, King reminded vendors to take into account the wait time for the trailer truck with the container as the trucks will queue up on the waterfront of the main port to go through the scanning process.

Business people voiced concerns over the “bottleneck that is going to be caused with the queuing up” of trucks and this will also cause a delay in deliver of containers to the businesses.

Samoa News will report in tomorrow’s edition on other issues raised at the meeting including concerns over radiation coming from the container scanner.