Customs and economic development officials said Monday they support the intent of a bill that would establish Guam as a regional transshipment hub, but the measure needs more research and coordination with federal authorities.
Bill 174-38 aims to diversify the island’s economy and attract new investors by establishing a designated Free Trade Logistics Zone. The bill states that the designation would “ensure that imported goods stored or processed on Guam could be re-exported without paying customs duties or taxes,” which would attract investments in warehousing, cold storage, and even light assembly operations.
During a hearing Monday, Guam Customs and Quarantine Agency Director Ike Peredo said before the legislation is enacted, “further research is required to assess its legal feasibility.”
Peredo said while Guam is outside of the U.S. Customs territory, only the federal government has the authority to establish Customs pre-clearance facilities or bonded warehouses.
“It's very important for us to make sure that we don't overstep our so-called authority as it relates to the federal requirements,” he said.
Customs and Quarantine Agency Chief Vincent S.N. Perez testified in support of the legislation, but suggested updating the agency’s enabling legislation to designate Customs as the enforcement authority for the Free Trade Logistics Zone.
Ed Camacho of the Guam Economic Development Authority said the agency supports the legislation. He said companies are interested in a Free Trade Logistic Zone on Guam, but the availability of land is a problem with any foreign investment.
“When they come in, they want to do something, especially these Asian companies, they expect a public-private type partnership where the government will give them the land,” Camacho said. “And that doesn't happen, and that is our biggest issue. In the last three to four months, there have been some big investments looking at Guam, but we can't provide the 80, 50 to 100 acres of land that they were looking for.”
Sen. Chris Duenas, chair of the Committee on Finance and Government Operations, said suggestions offered during testimony would be incorporated into a new version of the bill.
