American Samoa Customs

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American Samoa: ASG Zoll levies 5% exchange rate on the basis of new parametres

Ministry of Finance, Customs Department has sent a note to "all parties concerned" about the new way in which Customs will charge the 5% consumption duty that it is currently levying on all goods entering the territory for sales or business use as of February 1, 2017. It dates from 18 January 2017 and was sent by customs chief Moetului S.U. Fuiava.

At present, the calculation of duty is made on the basis of the FOB - cargo on board/carriage on board value of goods, which does not include cargo and cargo insurances; the duty is 5%, as described in the commented Samoa section 11.1002 of the US Samoa Convention. But in his note, the Chief of Customs refers to the new way of calculation of duties as "in accordance with the commented Samoa US Samoa Act, section 11.1002".

The subtitle for 1002 is "Amount of taxation on certain goods" and sets the rates of consumption of certain goods, inclusive of the 5% rates of consumption of goods "which are not included in subparagraphs.... and which are introduced for business use or for re-sale. "This section does not include the "basis for calculating duty " to which the Chief of Customs refers as the rationale for his new method of calculating duty.

a) An amount of duty shall be charged and payable on the goods referred to in point 11. b ) The calculation of the duty is based on the cost of the goods, with the exception of certain oil based goods, and includes the cost, fees and expenditures associated with the provision of the goods in good order, packaged and shipped to American Samoa.

Galloons form the base for the calculation of the levy on certain oil-product. Shipment costs, insurances and other forwarding costs are not taken into account in the calculation of the taxes. Notwithstanding the provisions of this Regulation, all goods cleared by customs officials as duty-free at the date of importation shall be recorded as conditional and liable to customs duties if it is established within 90 calendar days of import that the goods should have been taxable.

He linked this to the following sentence: "Freight, insurances and other forwarding costs are not taken into account in the calculation of the tax", which applies only to oil and not to all goods arriving in American Samoa. Moetului has indeed, under this codex expression, "reinterpreted" or "rewritten" the law that allows to levy consumption taxes on goods calculated on CIF (freight, insurances, freight) and not on the FOB (freight on board) value of the goods.