The U.S. Congress has extended the duration of the program for the General System of Preferences (GSP) to the Commonwealth of the Northern Mariana Islands. Manufacturers in the CNMI, while benefiting from General Headnote 3 (a), are also eligible for the export benefits provided by the program.

Of the numerous nations which are signatory to the GSP, Australia, New Zealand and Japan are the closest countries to which Commonwealth manufacturers of qualified products can benefit from reduced import tariffs in the recipient countries. With the exception of certain products, tariff reductions of up to 50% are allowed.

The import regulations from countries participating in the GSP program vary depending upon the country. More than 2,700 product categories of exports from developing countries are eligible under the GSP program. There are value added requirements and, in some cases, quota restrictions. Please consult the customs office for detailed information or consult the Guide to Government Agencies and Requirements.

Generally for a business to benefit from the GSP its products would normally be subject to a high duty in the importing country and the component cost should be considerably lower than those within the country to which the product is to be exported. Ineligible articles under the GSP are generally "import sensitive" products which, if allowed free access into the United States could disrupt domestic production. These articles have a high U.S. import duty.

The United States has an obligation under the Commonwealth's agreement with the United States to seek favorable treatment for exports from the Northern Marianas to foreign countries and to encourage other countries to consider the Northern Marianas a developing territory. This obligation on the part of the United States may possibly result in trade advantages for the CNMI, as there is a waiver provision in the General Agreement on Tariffs and Trade (GATT) which could allow preferential treatment of goods exported from the CNMI. Certain articles shipped from the United States to the CNMI are free of certain federal excise taxes. The Covenant does permit the United States to levy excise taxes on goods manufactured, sold or used, or services rendered in the CNMI in the same manner, and to the same extent, as such taxes are applicable to the U.S. Territory of Guam. The proceeds from such taxes, when and if imposed, will be given the Northern Marianas government by the federal government. The CNMI, if it so desires, can rebate the funds to the business source.

An excise tax is levied on imported goods for the privilege of doing business when such imports are to be resold.

The CNMI can enact its own legislation to protect the islands from being adversely affected by competition from imported foreign goods. It has the right to protect its workers and firms from import competition by imposing duties on imported products which might otherwise compete unfairly with local producers of similar goods. The Covenant may elect to allow foreign goods to enter the CNMI without import fees in order to maintain lower prices for local residents.

Exports from the Northern Marianas destined for the U.S. market are exempt from the 22 percent surtax imposed on imports to the United States. As a U.S. insular possession, the CNMI is eligible for Caribbean Basin Initiative treatment on products exported under the U.S. Tariff Schedule.

The user fee levied by the Government of the CNMI is 3.5 percent of the gross value of merchandise and is levied when certification for export under General Headnote 3 (a) treatment is made by the CNMI Government.

Any person engaged in the sale of goods, resources, food or agricultural produce exported from the Commonwealth is exempt from any tax levied by the CNMI upon the gross revenue derived solely from such export sales.

Items manufactured in the CNMI which are sold and delivered outside the CNMI are exempt from the Gross Revenue Tax but are subject to a 3.5 percent user's fee assessed on the export value of the items.