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CNMI Government - The CNMI Government prefers to employ Chamorro and Carolinian residents and other U. S. citizens when qualified candidates can be found. This can better be appreciated when considering that local people are more familiar with cultural and domestic issues and it is, after all, their home islands. The indigenous island residents do not have the geographic mobility or diverse employment options one is likely to find on the mainland and strong family ties limit their desire to migrate for employment opportunities although some do leave for jobs elsewhere. Some technical and professional positions are filled by Americans from Guam, Hawaii and the mainland. Several agencies of the CNMI Government are permitted by law to employ nonresident (alien) workers. Private Sector - Any United States citizen is free to enter the Commonwealth and either enter into business and become self-employed or seek employment within the private sector. No documentation is necessary except a Social Security number which can be obtained locally. A business or professional license may be required. Employment for nonresident workers in the private sector requires copious documentation and many legal requirements must be met. Laws and requirements related to the employment of non United States citizens may be obtained from the Department of Labor and Immigration. Foreign Owned Businesses - Since many of the larger hotels and tourist oriented businesses are owned and managed by the Japanese, their employment preferences are given Japanese, Chamorro and the lower paid nonresident workers. Small private foreign operated businesses which are owned by Filipino, Chinese, Korean and others do not offer particularly lucrative employment opportunities for local people since many of these "Mom and Pop" enterprises utilize their own family members in the business. There can also be other difficulties as many in this segment of the economy possess only the most rudimentary English language skills and it is sometimes difficult to communicate. Federal Government - Only a few agencies of the United States Government maintain offices in the Commonwealth even though the islands benefit from all federal programs. Many programs are administered through U. S. Government offices on Guam, Hawaii or from western regional offices on the mainland. Employment opportunities in the Commonwealth with the federal government are limited. International Agencies - No international agency maintains an office in the Commonwealth. The United States Government has indicated that the CNMI is not eligible for assistance from agencies of the United Nations with the result that there are no employment opportunities from this source. United States citizens from the mainland are advised to have their employment in the CNMI somewhat secured before arrival since finding the right job with satisfactory remuneration could be a long and expensive process. The Department of Labor and Immigration, Division of Employment Services, provides a job placement service for all residents. The minimum wage in mid 1996 will be $3.05 per hour. Some people from large metropolitan areas on the U. S. mainland and elsewhere who move to the islands for employment reasons find adjustment difficult and do not remain long after their "initial" enthusiasm wears off. This is not meant to be critical of such people or the islands, it is simply a fact. Usually disenchantment of one spouse or the other is likely to result from one or more of the following: high cost of living compared with the United States particularly for food, rent and utilities; perceived limited medical facilities or educational opportunities; inability to adapt to a different cultural environment; low wages and salaries compared with the mainland or limited employment opportunities for a spouse; expense of moving household effects vast distances and the cost of re-establishing one's household; limited opportunities for professional growth; hot and humid climate; separation from family members on the mainland and the expense of returning for frequent visits; service oriented economy limits opportunities for some professions; limited cultural entertainment; no public transport and water shortages. The above are some of the reasons people leave the islands after a relatively short period and return to the U. S. mainland. It is strange, however, that after leaving the islands to resume their previous urban lifestyle elsewhere, many regret having left the islands and long to return. Before accepting an employment opportunity it is always best to first visit the area and certainly this is true before abandoning one career or geographic location for another, selling the house and giving the dog away. U.S. visitors entering the Commonwealth must show proof of citizenship, (passport, birth certificate, naturalization papers, etc.) Non United States citizens must have a valid passport and round trip or onward trip ticket with a valid visa to their next destination if other than their home country. Authorization for visits of 30 days or less is given at the visitors point of entry. If the purpose of the visit for non U.S. citizens is to conduct business, authorization for visits of 14 days or less is given at the point of entry. Permits authorizing presence of more than 14 days must be obtained by applying through the Department of Labor and Immigration. For laborers, work permits must be obtained in advance. Non U.S. citizens (other than former Trust Territory citizens) cannot enter the Commonwealth on a tourist visa and, while present in the CNMI, obtain a work permit. Work permits for nonresidents must be obtained prior to entry. Regardless of citizenship, U.S./CNMI citizen residents traveling to and from Guam and the Commonwealth must clear immigration and customs at both destinations. The general environmental conditions of the three principal islands of Saipan, Tinian and Rota are essentially the same in that the three areas are influenced by similar natural influences common in the western Pacific. The influence of climate on organic life and that of the ocean are somewhat identical on each island. While there is some difference in soil type and conditions the flora, fauna and ecosystems are similar. Where conditions differ results directly from the influence and impact a variety of development projects have on the landscape and near shore waters of lagoons and bays and the ecology of the project area. It is of little value to generalize beyond the above or to exhaustively explore the vast, complicated myriad of possible situations which a particular project could have upon the environment except perhaps to state that the negative influence of an individual endeavor receives closer scrutiny than its positive attributes. Usually the most vocal opponents of a project are those with no possibility of direct remuneration when such projects are implemented. Recognizing that the fragile environment and its tropical characteristics is the principal reason the visitor industry is flourishing and one which makes the Northern Marianas an attractive tourist destination is reason enough to maintain vigilance for the environment's protection, preservation and enhancement. In order to accomplish the above a number of regulations and procedures have been adopted. Many people in the Commonwealth are very sensitive to protecting the environment both from an aesthetic point of view as well as for the protection and enhancement of flora and fauna, historical and cultural artifacts, wetlands, ground water, the reef, lagoon, etc. Potential developers of large projects should be prepared to undertake comprehensive environmental assessments on the impact of their proposed projects not only to meet the requirements of such agencies as the Coastal Resources Management Office but also to provide information during possible public hearings. Project proposals and concepts should be thoroughly documented for presentation to an experienced and sophisticated audience Some residents new to the islands as well as the tourists find "boonie stomping" in the jungle and exploring for relics of World War Two an interesting past-time. While much of the wreckage of the battle was removed by scrap dealers after the war some interesting artifacts and structures remain, now crumbling with age and often hidden by dense jungle vegetation. There are several interesting caves which were used by the Japanese during the war and an occasional piece of live ordnance can be found which, under no circumstances, should be touched but reported immediately to the police for proper disposal. Occasionally the skeletal remains of some fallen combatant is unearthed and these should be reported to the Office of Historical Preservation or the police for proper identification and burial. Be careful not to enter private property without first obtaining permission from the owner. The Marpi area (northern Saipan) is largely public land and is an interesting area for exploration. The Saipan Lagoon still harbors a variety of coral encrusted invasion materiel much of it now camouflaged by natural surroundings and somewhat difficult to distinguish in the underwater environment. Brush fires are common on Saipan during the dry season. Lack of water or low pressure at some fire hydrants in the vicinity of some commercial or residential property during a conflagration could result in serious, if not total, destruction of a structure. This, of course, influences rates for fire insurance. This sport may be enjoyed throughout the year. Marlin, tuna, dolphin and many other big game fish may be caught. These beautiful trees are in full flower in June and July. Scattered stands of Flame Trees, Delonix regia, (Tronkon Atbot in Chamorro and Kaenju in Japanese ), may be seen during other months. The arbor is the official tree of the Commonwealth. Food stamps are issued in the CNMI. to eligible recipients. The total number of recipients has been declining annually. Products are distributed by Mobil Oil Saipan and Shell Oil. These include gasoline, diesel, kerosene, avgas, and jet fuel. Generally the Commonwealth is a healthy place to live. There are no poisonous land reptiles or insects, and no malaria. The leading cause of death in the Commonwealth, as in the United States, is heart disease, with malignant neoplasms ranking second. Automobile accidents are the fifth leading cause of death. Infectious diseases usually associated with a tropical climate are not present. Overall the Commonwealth is an extremely pleasant area in which to live. Most health problems encountered are a result of diseases transmitted by the consumption of non-potable water (gastrointestinal) and the high sodium concentration in the potable water supply. Influenza has been the leading cause of illness followed by Gastroenteritis. There are health centers with dental facilities on Rota and Tinian. Medicaid and other federal health programs are available to those who qualify. THE FORMATION OF THE MARIANA ISLANDS (25 to 50 million B.C.) The geologic event forming the Marianas archipelago occurred during the Eocene epoch, a time when dinosaurs had already become extinct, plants, fishes and invertebrate mammals had developed and the major mountains of the world had begun to rise. Man would not appear for another 25 to 50 million years, a period so distant from the present as to equal 350,000 to 700,000 human life spans. PREHISTORIC PERIOD (3,000 B. C.) The early history of the Mariana Islands is shrouded in the mists of antiquity but it is believed that the islands were first settled around 3,000 B.C. by an ancient seafaring people, prehistoric "Stone Age Vikings", who journeyed in outrigger canoes and eventually lost their navigational skills and were marooned. It is believed that they sailed across the vast expanse of the open Pacific, north and eastward from southeast Asia, possibly from what is now known as Indonesia. The people, who became known as Chamorros, developed unique construction skills which permitted them to carve huge, mushroom-like capped pillars of stone from solid rock known today as Latte or Taga Stones. Their precise use remains one of the great mysteries of the Pacific to this day. THE SPANISH PERIOD (1521 to 1899) Ferdinand Magellan sighted the islands in March 1521 when he made his landfall at Guam. He claimed the islands for Spain and first christened the archipelago "Las Isles de las Velas Latinas" (The Islands of the Latine Sails), because the triangular shape of the sails used on native canoes were similar to those used on Mediterranean vessels. In 1668 their name was changed a third time to Las Marianas in honor of Mariana of Austria, widow of Philip IV of Spain. Through an act of genocide committed in the 17th century by Spanish colonists against the local inhabitants the Chamorro race was almost wiped out. In 1815 a new wave of people from atolls west and north of Truk (Chuuk) in the Eastern Carolines migrated to Saipan. THE GERMAN PERIOD (1899 to 1914) The islands were sold by Spain to Germany in 1899 and so remained under the German flag until the start of World War I in 1914 when the Japanese moved against the German administration in the islands and forced them out. Defeated Germany was stripped of all overseas possessions at the end of the war in 1919. The Mariana Islands were turned over to the newly created League of Nations to be administered as the Japanese Mandated Territory. Japan had become an ally of the United States, Great Britain and France shortly before the end of the war and was named as this Pacific area's administering authority. By 1919 the islands were being administered by Japan as a mandate under the League of Nations. THE JAPANESE PERIOD (1914 to 1944) Japan withdrew from the League of Nations in 1935 after it had virtually annexed the Islands into the Empire. By 1936 a thriving fishing industry had developed as well as a sugar industry. The islands were assaulted by American forces on July 1, 1944 and one of the most hotly contested battles of the entire war was fought on its sandy beaches and mountainous terrain. American forces gained control of the island in July 1944 and the construction of bases and airfields began. It was from one such airfield on Tinian that the first nuclear weapon was dropped on Hiroshima by the B-29 aircraft Enola Gay hastening the end of hostilities. The airfields on Tinian which, in 1945 were the busiest in the world, are now largely abandoned. TRUST TERRITORY PERIOD (1947 to 1978) In July 1947 the area was recognized as a Trust Territory by the United Nations. The United States Navy , and later the Department of Interior, became the administrator under a Trusteeship Agreement with the United Nations Organization, the successor to the League of Nations. In 1952, upon signing the Treaty of Peace in San Francisco, Japan legally gave up all claims in the mandated islands formerly provided by the League of Nations and acknowledged the United Nations Agreement establishing the Trust Territory of the Pacific Islands with the United States as the administering authority. UNITED STATES COMMONWEALTH (1978 to Present) In January 1978 the Northern Marianas became self-governing in political union with the United States under the terms of a Covenant negotiated between the two governments and the area's first elected governor took office. For the first time after more than 300 years under the flags of Spain, Germany, Japan, and the United Nations, the new Commonwealth of the Northern Mariana Islands began to control its a measure of its own destiny. On May 28,1986 the United Nations Trusteeship Council concluded that the United States had satisfactorily discharged its obligations to the islands. On November 4, 1986 United States citizenship was conferred upon those people of the Northern Marianas that met the necessary qualifications. On December 22,1990 the Security Council of the United Nations voted to dissolve the Trusteeship. The following holidays are observed by the CNMI Government and some businesses. Note that several dates are subject to change each year and may not be current. Check with a current calendar.
In addition the following religious holidays are widely observed in the Commonwealth.
*Holidays falling on Sunday are usually observed on the following Monday. Hotel accommodations are excellent and hotels offer a wide variety of services, fine food and entertainment. Prices vary. During some months of the year all hotels are full and it is therefore prudent to make reservations in advance. Several new hotels are under construction, (see Hotel List) . Single family units and a variety of apartments exist which are available for lease, ( check on the availability of 24 hour water ). Persons intending to reside in the Commonwealth should arrange to attend to housing for themselves and their expatriate staff at an early date. Hunting for various, but limited, game species is regulated and permitted only during the season. A hunting license and gun permit are required. Deer hunting on Rota is usually permitted between September to November. Smallpox immunization is required when travel originates outside the United States and its territories. Cholera and yellow fever immunization is required for those who have visited an infected area within six days prior to arrival. Typhoid, paratyphoid and tetanus shots are suggested but not necessary. INDUSTRIAL PARK & WAREHOUSING: Lease of space at the Lower Base Industrial Park may be arranged through the Marianas Public Lands Corporation. Rental is based on the appraised fair market value times 8 percent per square meter or 3 percent of the total gross receipts whichever is greater. Only a small area remains available at Lower Base for leasing and the total area cannot be enlarged. There is no public warehouse. Saipan Stevedore Company maintains a small warehouse for storage of sea cargo in transit (up to 72 hours without charge). The airlines maintain their own cargo offices and warehouses. Those invertebrates normally associated with a humid, tropical climate need not be a nuisance if prudent, healthful measures are observed such as using an insecticide, covering trash cans and refraining from leaving scraps of food about in one's home. Mosquitoes and flies are not particularly bothersome -ants can be controlled, (except on picnics). The Anopheles type mosquito (malaria bearing) is not present in the Northern Marianas. There are several insurance brokers and companies licensed to do business in the CNMI. A variety of insurance policies may be obtained through these companies. The Pacific Ocean is 20 percent larger than all the continental land masses combined and, strangely, it is culturally interconnected to a far greater extent than may at first be realized and, in many instances, much more so than many nations of the world. The vast ocean distances have provided routes of communication and served to connect oceanic people rather than isolate them although this is probably more true of people from islands south of the equator. Geographers have divided the Pacific into three areas, Micronesia, Polynesia and Melanesia. These three areas along with Australia and New Guinea are sometimes referred to as Oceania. With the notable exception of the Hawaiian and Marshall Islands, the vast majority of islands in the Pacific - other than those in proximity to Asian and American continental land masses - are situated near the equator and the South Pacific, (Polynesia and Melanesia). The Northern Marianas are considered to be a part of Micronesia and are located in the western Pacific. Terrestrial and marine biota in the Marianas are tropical. The north central Pacific Ocean area is largely devoid of islands. In the Pacific, islands are sometimes referred to as "high islands" or "low islands", volcanic or coral [limestone]. All islands in the Northern Marianas but one are " high islands" of basalt built up from great depths by volcanic eruptions. Pagan and other emerged volcanic islands protrude upward from depths of 6,000 to 12,000 feet. Some islands have reefs which have formed around them while others are reef-less. Coral reefs that grow on the flanks of islands protect them from direct wave action. This is true of Saipan's western shore, less so on the eastern side of the island. The most highly developed barrier reef is at Saipan, slightly developed at Tinian and almost nonexistent at Rota. Farallon De Medinilla is a "low coral" island. Islands in the northern area of the Marianas are small and purely volcanic in nature while those in the south consist of volcanic bases covered with coral limestone. Guyots, while not islands, are submerged pinnacles rising from the ocean floor and may be truncated volcanoes that have not yet penetrated the surface or which, at one time, broke the surface then sank under their own weight. There are no atolls in the Marianas archipelago. Always there is an association of island arcs and deep ocean trenches as in the case of the Marianas. Always the two are in areas of volcanic unrest. On the concave side of the islands are rows of volcanoes. On the convex side there is a sharp down-bending of the ocean floor which results in "V" shaped trenches and submarine canyons with steep cliffs. The Mariana Islands are the peaks of submerged mountains. Saipan rises more than 36,000 feet above the floor of the Marianas Trench, the greatest depth on the planet. The water pressure is more than 7 tons per square inch, yet life exists at this great depth. The floor of this underwater canyon is about is from 50 to 80 miles east of Saipan. The Nero and Challenger Deeps, both exceeding 30,000 feet, are features of the Marianas Trench. When you are "on island" on Saipan, Tinian or Rota you are in little self- contained worlds surrounded by the ocean with the great expanse of the sea between you and the great land masses of earth. The dominance of sea and sky is ever present. From a high mountain you can look in any direction and see the ocean and the island's surrounding ribbon of beach. When approaching the islands for the first time they loom out of the sea like mirages. As you fly over the coast line your aircraft is likely to experience a slight "bump" as it encounters air currents being pushed upward by the island's topography. Under a blazing sun, land will heat faster than the surrounding ocean and , conversely in the evening, cool more rapidly than the sea. The prevailing trade winds aside, when the temperature of the land and sea are in equilibrium there is little breeze. It is only when one element is cooler than the other that an air current will flow either toward or away from water. In the entire world there is probably no more delicately balanced environment than that of some Pacific islands. There is little change in climate and few natural enemies of flora and fauna. This is particularly true of the uninhabited islands north of Saipan. On the islands of Saipan, Tinian and Rota do not expect to find the typical "Hollywood" version of tropical islands with thatched huts, grass skirts and abundant locally grown fresh fruits and vegetables free for the taking. These islands long ago evolved from a subsistence lifestyle. Today most of the amenities of the last decade of this century can be found along with some of the problems of the period. Unlike a large metropolitan area the islands are governed by relatively few people and thus it is possible to know them which is a positive factor, however, on the other hand it is quite easy for issues to become personal. IMPORTANT REASONS FOR ESTABLISHING A BUSINESS IN THE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS The Commonwealth is a unique entity under the jurisdiction of the United States. Some important reasons for establishing a business in the Commonwealth are summarized below: - A United States Commonwealth under the American Judicial System where most United States laws apply; - Federal tax laws apply; however, under Covenant provisions and I.R.S. regulations the Commonwealth rebates from 50 to 90 percent of taxes paid on personal and corporate income, (see Taxes) . - All ports of entry are free of United States Customs duties. Goods imported for resale are, however, subject to Commonwealth excise fees. - United States minimum wage laws do not apply. In mid 1996 the minimum wage is expected to increase to $3.05 per hour. - U. S. immigration laws do not apply. Many businesses are American and foreign owned and managed. Several business types of local CNMI visas are available. Commonwealth immigration laws permit unlimited entry for approved foreign investors. - The area qualifies under Head note 3 (a) of the U. S. Tariff Schedules for the export of certain qualified goods to the United States duty free and without quota restrictions ( except for some textiles and several other items). - Under the Generalized System of Preferences exports to other countries also receive favorable tariff treatment. - Foreign Sales Corporations conducting business from the Commonwealth can qualify for federal tax reductions on a portion of income generated from export sales and pay no tax to the Commonwealth Government. - Companies licensed in the Commonwealth are exempt from U. S. vessel documentation laws thereby permitting vessels constructed outside the United States to operate from Commonwealth ports subject to U.S. Coast Guard regulations when such vessels are to be used for commercial purposes. - The Commonwealth is exempt from certain sections of the federal "Jones Act," (U.S. Merchant Marine Act of 1920). - Reliable worldwide communication facilities. No labor unrest, area is politically stable. Year round tropical climate with all the amenities of a tourist resort area, golf, tennis and wide range of water recreation activities. - Reliable scheduled ocean shipping carriers serve the island from the U. S. west coast, Hawaii and Guam as well as major Asian cities. Air service provided by: Continental Airlines, Japan Airways, Northwest, Korean Air and Asiana Airways. INVESTMENT INFORMATION & Government Regulations and Permitting Requirements: Contact:
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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