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All research & economic documentation packaged for presentation to potential investors & government permitting agencies. Author & Publisher of the Business Reference & Investment Guide To The CNMI Contact: Economic Service Counsel, Inc. Tel. (670) 322-3929 Apply annually from the Department Of Commerce, (See Investment Information) . Other Selected Permitting & Regulatory Requirements(Other Than For Casino Operation): Various other permits may be required for a wide variety of activities when undertaken in the Commonwealth. Several of these are these are briefly described below:
Board of Professional Licensing A fee is required. The Board does not have jurisdiction over the legal or medical professions or the certification or credentialing of teachers or any trade or profession over which exclusive jurisdiction for licensing, certification or credentialing has been given to an agency of the United States or to another department or agency of the Commonwealth Government. Those interested in practicing law or the healing arts are advised to contact the following for information on licensing:
BUSINESS OPPORTUNITIES (potential): ALL REQUIRE FINANCIAL AND MARKET ANALYSES TO DETERMINE VIABILITY Fruit Culture: Papaya, jam, marmalade, pickles, canned papaya, frozen papaya, papaya juice, banana, banana chips, pudding. Other: Frozen or canned mango, star-apple, guava, passion fruit , sour sop. Vegetable Culture: Tomatoes, bell pepper, green onions, eggplant, corn, melons, sweet potato, cabbages, cucumber, ginger, taro, yam, tapioca, breadfruit, zucchini, green beans. Flower Culture - Cut flowers, plumeria, hibiscus, anthurium, cattleya, dendrobiums, chrysanthemum, roses, snap dragons, carnation, vanda orchid, tea leaf, marigold, cycad. Livestock Industry: Cattle ranch or farm for beef and processed beef, (Santa Gertrudis crossed with Brahman seem to withstand the tropical temperatures better ). Dairy farm for fresh milk, cheese and butter. Agricultural Processing: Banana, guava, passion fruit, Banana, coconut, breadfruit, taro chips Scientific/Aesthetic: Cultural Center, aquarium, planetarium, health spa. Service (Tourism Oriented): Saddle horse rental (horse drawn cabs), flea market shopping operation, bottling water - Rota), hot air sightseeing balloons ( tethered ), hotels, golf courses. Other Tourist Oriented Projects (requiring special permits or rights of way ) Tourist Scenic Railway (miniature), aerial Cable Lift (to Mt. Tapotchau with mountain top restaurant), underwater marine observatory, Northern Island full service fishing Manufacturing or Assembly: Furniture, leather sandals, belts, wallets, etc., molded wood products, (pulverized coconut shell), handicrafts and souvenirs, ceramic products, beach wear ( bathing suits), machine shop (light), candy, beverages, souvenir candles, etc. Marine: Mariculture (marine shrimp), pearls (cultured-Northern Islands), fishing (skipjack tuna, mackerel, reef fish, shrimp), hydrofoil service, hatchery, marine shrimp juveniles (for export), automobile Ferry (Saipan, Tinian, Rota and Guam) . TINIAN: At the present time the major economic activity on Tinian is the transshipment of tuna. The investment opportunity offering the greatest potential for stimulating economic growth on Tinian is casino operation. Other potential investment opportunities include: hotel resorts and casinos and small service activities. ROTA: Economic activities on Rota at the present center around farming and a small tourism industry. Several investors have plans for the development of large resort hotels. Smaller potential opportunities include: fruit and vegetable farming; food processing and preservation; commercial fishing and sport fishing; health spa and retirement homes. Small manufacturing opportunities include: clothing (beach and resort wear); handicrafts; furniture (hotel, residential, school, lawn, etc.); bottled water and beverages. The list of goods and equipment that are apt to deteriorate markedly in any hot and humid tropical climate, particularly when not in air conditioned surroundings, includes canoes and other electrical equipment, certain optical instruments, leather, natural and synthetic rubber, silk and synthetic fibers of the protein type, synthetic resins, paints, varnishes, asphalt, waxes, lubricants and hydraulic fluids, wood and wood products. Fungus, wood-boring pests such as termites, and corrosion are the chief agents of deterioration. Of these, the most wide spread in their effect are the various fungi. Warmth, high humidity, darkness and poor ventilation all promote the growth of fungi. In some cases, the effect of fungi growth can be retarded by artificial heating as in a hot closet. Where metal goods are concerned the chief hazard is corrosion which is accelerated by the presence of salt particles in the air. CASINO INVESTMENT OPPORTUNITIES: Contact: The Tinian Casino Gaming Control Commission This organization promotes the development of business, trade and commerce within the community. The Chamber frequently represents the private sector in relations with the executive and legislative branches of the government. For more information contact: Saipan Chamber of Commerce Catholicism is the principal religion. There are several Protestant churches. Saipan has Rotary and several other clubs. Many of the resort hotels have pool and tennis clubs with membership open to local residents. There are several sports clubs, including tennis. Thespians and music lovers will find the Northern Marianas Music Society offering pleasant and rewarding experiences and new members are always welcome. There are bowling leagues, softball and swim teams as well as many other athletic associations. Saipan has a gymnasium and a convention center where many activities are held. The tropical climate does not deter joggers and bicyclists and early morning and late evening seem to be the hours of preference. Copies of these volumes may be purchased from: The Law Revision Commission The publications contain: the Trusteeship Agreement for The Former Japanese Mandated Islands; the Covenant; the Constitution of the Northern Mariana Islands; Provisions of the Constitution of the United States Applicable Within the CNMI and other laws of the Commonwealth. This is a monthly publication of laws, regulations, proclamations, etc., which have been promulgated or enacted by the Legislature and various government agencies. It serves as a revision to the most recently published edition of the Commonwealth Code. The publication is available from the: Office Of The Attorney General The annual subscription is $75. (check payable to CNMI Treasurer). An additional $25. should be included for mailing (check payable to Register Of Corporations). The Commonwealth has an excellent telephone system. Micronesian Telecommunications Corporation (MTC) and Island Telecommunications Engineering Corp. (ITE) handle cablegrams, overseas telephone calls, fax messages and telex messages to and from the Marianas. Most major businesses have facsimile machines. M.T.C. operates the local telephone services as well. Direct dialing to Guam, Hawaii and the Continental United States is available. The area code for the Commonwealth is 670. The Commonwealth is linked to overseas locations by a Comsat Earth Satellite Station. Saipan Data Com provides Internet connections to the world wide web. CONSTRUCTION MATERIALS - (See Also "Retirement") : Rock quarries are in operation. Hardware stores are available. Many people purchase their construction material from the Philippines or Taiwan and ship it to Saipan in a container. It is far less expensive than shipping such material from the United States. In terms of living costs the economy of the Commonwealth, particularly Saipan, has undergone marked change in recent years as prices have increased across the board. The CNMI has become a very expensive place to live and it is expected to become increasingly more so in the future. New residents of the Commonwealth are sometimes surprised at the higher prices for some items, particularly food. The cost of living in the Commonwealth has been said to be from 25 to 30 percent higher than on the United States mainland and possibly higher. In comparison with Japan, however, the cost of living is still somewhat less. The higher prices observed by those moving from the United States mainland not only result from shipping costs but also because most distributors cannot take advantage of economies of scale with the result that the small CNMI market translates into smaller volumes in shipping, warehousing and distribution. There is little flexibility in the disposal of excess inventories which means that discount retailing, factory outlets, etc., are not usually found in the islands. Competition, which elsewhere might tend to drive prices close to production and distribution costs, is limited in the Commonwealth. Other reasons for such high prices are related to greater costs for doing business which can be considerably higher than on the mainland. Commercial building costs, whether leased or constructed, are higher and most require air conditioning with the result that there are expensive electricity charges associated with businesses. Premiums for typhoon insurance are expensive and, in the case of perishable items such as certain foods, higher rates of spoilage can be expected all of which add to the cost of doing business and which are ultimately passed on to the consumer in the form of higher prices. The Japanese have also influenced prices in the Commonwealth as the Japanese traveler has become increasingly affluent. High prices for quality goods and services are expected by the Japanese visitor with the result that local businesses accommodate this expectation to the fullest extent. Obviously this is to the detriment of local residents as it results in higher prices for the non tourist as well. Clothing is more expensive as a result of the freight rates associated with such imported goods , however, only light weight tropical wear is worn and there is no need for winter clothing. Some savings can be achieved by not being required to own two sets of seasonal clothes. Recognizing that individual tastes, lifestyles and living standards differ, American executives and professional people, married without children, relocating to Saipan and desiring to maintain a comfortable living environment can expect to experience the following approximate monthly expenses: rent - $800 to $1, 200; transportation ( fuel & maintenance) - $100; utilities (including power for air conditioning) - $125 to $200; food - $500; miscellaneous - $100. Major American and Japanese credit cards are accepted in some establishments but not always by smaller businesses, particularly small hotels, restaurants and shops. Crime in the Commonwealth has been compared to that which may be expected in small U. S. communities or suburban areas on the mainland. There have been some violent crimes of late. Garapan appears to have the most serious crime problems which, as some believe, may be a result of fragmented neighborhoods. The communities of Susupe and San Jose follow Garapan in the number of crimes committed. For more information on Crime Statistics in the CNMI see the Criminal Justice Planning Agency Page. The Commonwealth, being host to people of varied nationalities, is a mixture of interesting cultures which can provide an enriching experience. In terms of doing business, particularly with the government, practices which may be considered appropriate in some foreign countries may not be considered suitable within an American jurisdiction such as the Commonwealth. There are strict laws which must be adhered to when private business becomes involved in government projects where fairness and impartiality without prejudice or bias will be closely monitored. The society on Saipan, with the great influx of foreign workers and businesses, is now multi-national. Among the different groups on the island there is not a great deal of intercultural association between this population perhaps in part due to language differences. The people of the islands are of strong and resilient stock having survived the devastation of war and the disruption caused by typhoons. They are by nature a quite, gentle people quick to make friendships and to help those in need. Spanish traditions and the Catholic Church have had a strong influence on the indigenous population. An interesting and obvious cultural trait among islanders is the lifting of eyebrows as a sign of recognition and greeting. This is often a substitute for the spoken word "hello" or to acknowledge the affirmative. The Commonwealth uses the U.S. dollar and, like the United States, the English system of measurement with increasing use of the metric system. For those interested in land, square meter measurement conversion factors are: one square meter contains 10.764 square feet or 4,047.7 square meters per acre. There are no currency restrictions. Seignorage is the sole province of the United States Government as the Commonwealth has no control over regulating money supply. In the CNMI the supply of money is governed largely by the injection of federal funds, tourist expenditures and foreign investment - the latter two being predominantly Japanese - both development factors driven by external forces. People entering the Commonwealth may import any amount of currency, however, those carrying in excess of $5,000. should declare that fact upon entry as well as the amount being imported. Failure to do so could result in forfeiture of the entire amount or a fine of up to $2,000. Business profits may be remitted freely and without restriction. The Customs Service of the CNMI Division of Revenue and Taxation checks all shipments entering the area regardless of origin. Laws enforced by the Customs Service are excise taxes, Controlled Substances Act, Weapons Control Act and other laws enforced at ports of entry. Official ports of entry for Saipan are Tanapag Harbor ( Charlie Dock ) and Saipan International Airport. Cargo can be released on presentation of original invoices. Taxes are due on imported merchandise within 30 days of entry into the CNMI. Goods imported for personal use, educational materials for public schools, and other selected items are exempt. Parcels sent through the U.S. Postal System from the United States to the Commonwealth may be opened for inspection by CNMI Customs authorities. Further information may be obtained from the Division of Revenue and Taxation. The swiftness of jet aircraft, while having the apparent effect of shrinking distance, tends to distort the perception of time and space in the vastness of the Pacific. The Marianas archipelago is closer to Moscow than Washington, D. C. At 7,000 miles, the area is the most distant member of the American political family and the United States Capitol. Nautical Miles From Saipan To:
*Saipan and Austin, Texas are about equal distance from Honolulu. To convert to statute miles multiply by 1.15. For kilometers multiply by 1.85 Dry - December through June; wet - July through October. Mean annual rainfall - 83.8 inches; mean annual temperature - 83 Degrees F. Humidity averages 79 to 86 percent per month. Economic development efforts in the Commonwealth are directed toward the development of the private sector. The goal is for minimum government involvement in the provision of services and no involvement in productive commercial activities. The Northern Mariana Islands are dependent entirely on imported oil for electric power generation and power requirements have been increasing steadily. The government has transferred utility management and operation to the Commonwealth Utility Corporation (CUC). Proposed new businesses and residential consumers should contact CUC prior to construction to determine the extent of service the Corporation will provide and determine if any possible delays should be anticipated. The following voltages are applicable in the CNMI: Secondary Single Phase
Secondary Three Phase
Primary Three Phase
The voltages above are nominal levels intended to be delivered. Actual levels may vary beyond optimal levels. The following electric power charges were in effect at the time of publication: Residential - $0.11 per Kilowatt hour (Kwh) consumed; Commercial - $0.16 per Kwh.; Government - $ 0.16 per Kwh. Police
Medical
Area code is 670 RESOURCE: "Business Reference And Investment Guide To The Commonwealth Of The Northern Marianas Islands": A form of economic atlas in full color, English, 100,000 words, 232 pages 76 maps, 57 charts, 44 statistical data tables and many other illustrations describing the history, geography and economy, 3rd edition. By William H. Stewart.
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