(APIA, Samoa) — The Samoa Chamber of Commerce suggested to the American Samoa Government (ASG) that they review and revisit the eligibility criteria for a foreigner to become a permanent resident after 20 years “to ensure the minimum red tape for applications from businesses outside of American Samoa,” said Chief Executive Officer of the Samoa Chamber of Commerce, Ane Moananu, during the first day and inaugural meeting of the two Samoa’s economic integration initiative to the Samoa Talks—  the pre-summit — during her presentation.

The two day pre-summit being held at the Millenia Hotel conference room kicked off yesterday in Samoa with members of the private sector and government agencies, including the Samoa Talks task force led by ChairmanTuaolo Manaia Fruean, co Chair Department of Commerce Director, Keniseli Lafaele and co Chair, Samoa’s CEO of Ministry of Commerce, Industry, Labor and Trade, Auelua Samuelu Enari.

During Moananu’s presentation yesterday, she pointed out that in April the pre-summit or inaugural meeting resolved for the private sectors of both Samoas to work together to  document the issues in consultation with the government. She said that Samoa’s Chamber is the voice of business in Samoa advocating on behalf of 300 individual businesses, and in recognizing its role, the Chamber collated issues and case studies for their issues paper. She called for support for the two government’s work in developing the framework of the agreement.

She said that Samoa’s Chamber recommends mobilization of the Committee for the agreement to build momentum on the process and this would ensure there is a coordinated approach to resolve issues identified and discussed at the pre-summit.

PROCEDURAL & REGULATORY ISSUES

Samoa’s Chamber head points out that the process to obtain a business license to operate in or establish a commercial presence in American Samoa is challenging and cumbersome — and this could be streamlined and consolidated to eliminate any barriers to business creation and foreign investment rules between the two Samoas.

Moananu said the use of online registries and the facilitation of electronic payments would improve the process immensely — particularly for businesses that do not have firms undertaking the application process on their behalf.

Samoa’s Chamber CEO stated that American Samoa — through the DOC — has initiated a one-day business license process. However applications from non-US nationals or citizens are referred to the Territorial Planning Commission for further review and it only applies to foreigners who have been granted permanent residence status in American Samoa.

“The person must have been physically and legally present in American Samoa for a continuous 20 years. The Chamber suggests a review of the eligibility criteria of 20 years residency, to ensure the minimum red tape for applications from businesses outside of American Samoa,” said Moananu.

She further noted that several companies in the service industry continue to face challenges with the immigration system in American Samoa. “It is an inconvenience for companies to apply for entry permits every single time they travel across.”

“The Chamber encourages ASG to fast track discussions with the Samoan government to allow for the issuance of multiple entry permits which would be a significant improvement in facilitating travel between the two Samoas.”

Another issue that Moananu noted is that American Samoa operates under the US Internal revenue service code, from tax year 2000. She said that this territorial income tax is difficult for some businesses to comprehend.

“The 30% repatriation tax that exists could also be a disincentive for companies outside of American Samoa.” Samoa’s Chamber suggested that the tax requirements and obligations in the territory should be clearly outlined, streamlined and explained in investment guides or a “doing business in the territory” report. In particular, Moananu said, it should clearly state the requirement for a foreign country or business to file taxes in American Samoa if they conduct business in the territory for at least 90 days, or earn $300,000 USD.

Moananu said Samoa’s Chamber notes that the procedures for opening a new account in American Samoa are subject to federal requirements, particularly to address the issue of terrorism and money laundering activities.

“While this is knowledgeable as an acceptable precaution, the Chamber recommends that ASG and the banking institutions in American Samoa work together to conduct a risk assessment for all its trading partners. A potential list could be drafted to identify low risk countries, such as Samoa and processes could be simplified for this category. This will allow for minimal delays for local companies wishing to open a new account in the territory.”

INFRASTRUCTURE TRANSPORT

Samoa’s Chamber also points out that freight costs to send exports between the two Samoas are significant and often become a barrier to trade.

According to Moananu, several companies have noted the high cost to send goods to American Samoa in comparison to the modest cost to send items from Fiji to American Samoa. Samoa’s Chamber also recommends that local wharf charges currently on commodities exported to American Samoa could gradually be reduced and in the long run could be removed to support local exports. 

CHARGES-EXCISE TAXES

Moananu said that several excise taxes are being changed on export commodities such as raw agricultural and agro-processed goods from Samoa. Samoa’s Chamber recommends a gradual reduction of these charges on particular agro-processed exports such as coconut cream and snacks (taro, banana & ulu).

Furthermore an exemption list could be developed between the two Samoas to improve trade facilitation for specific products of mutual interest to the private sector of each country.

The Chamber further noted that they’ve been advised by the local brewery of a potential increase in the excise tax on alcoholic beverages. Moananu pointed out that any movement of such on products from Samoa could be filtered through relevant focal points in the private sector who would subsequently inform businesses that might be affected, should an exemption list be developed between the two Samoas, and ceiling rates for import duties could be set intact for the identified products of mutual interest.

Samoa News will report on other issues discussed during the pre-summit in upcoming editions.