Shipyard Authority tax waivers considered on an individual basis

Pago Pago, AMERICAN SAMOA — Treasurer Donald Kruse will look into the request by the American Samoa Shipyard Authority (ASSA) for a tax waiver for materials and supplies used at Satala for boat repairs and maintenance, “as individual cases arises according to applicable statutes”.

However, the Treasurer maintains that for the equipment currently impounded by Customs, it is for Blunts Point ASPA project, different from Shipyard maintenance and work scope at Satala, and as such, according to the ASCA (American Samoa Code Annotated), ASSA must pay the 8 percent in excise taxes, just like all other government entities.

Treasurer Kruse provided several emails that occurred between ASSA and himself which explains that the shipyard doesn't qualify for a certificate of tax exemption after “careful review of the relevant statutes in Chapter 16 – Tax Incentives for Businesses of the American Samoa Code Annotated (ASCA)”; and that in a previous correspondence dated June 18, 2025, “Carlos agreed to pay the excise tax upfront for the equipment impounded by Customs for the ASPA Project at Blunts Point.”

Last week, Samoa News reported on the peaceful protest held on the front lawn of the A.P. Lutali Executive Office Building in Utulei by ASSA employees and its Chief Executive Officer (CEO) Carlos Sanchez. The protest, according to Sanchez was in response to the Treasury’s “plain stupid” decision to tax another government entity. 

ASSA is a semi-autonomous agency of the American Samoa Government.

The demonstration was apparently in response to the Department of the Treasury's refusal to release a container of equipment unless an excise tax of nearly $30,000 — equivalent to eight percent of the monetary value of the goods inside the container — is paid.

As reported by Samoa News, Treasurer Kruse had recently spoken with KVZK TV, outlining the requirement for all government entities to pay excise taxes on goods shipped into the territory.

He underscored that this tax obligation is uniformly enforced across all government agencies, authorities, and departments, ensuring that no entity is granted exemption from these requirements.

Specifically, organizations such as the American Samoa Telecommunications Authority (ASTCA), American Samoa Power Authority (ASPA), and the local Hospital are also subject to these excise taxes.

The revenue generated from these taxes is vital, the Treasurer pointed out, as it funds a wide range of public services and infrastructure projects that benefit the community, including health services, education, and transportation infrastructure.

An exception to this rule exists through an internal governmental charge, which allows departments, agencies, or authorities to apply for a waiver. This waiver enables them to release their goods immediately while postponing the payment of excise taxes or allowing for future offsets against these taxes.

Pointing to tax exemption certificates, Treasurer Kruse clarified that the authority to consider and approve such requests rests solely with the Board. He emphasized that he, as Treasurer, does not have the power to grant these exemptions, ensuring a clear separation of duties within the governmental framework.

The current Board comprises Donald Kruse, Chairman; Ruth Matagi, Vice Chair; Toetasi Tuiteleapaga, Secretary; and, board members Lina Petaia and Vaitautolu Iaulualo. Applications are made to the Board for tax exempt certificates.