ST. CROIX — The officers of the 36th Legislature will convene an emergency meeting with Governor Albert Bryan Jr. on Wednesday to discuss the administration’s proposed tariff of at least 25% on goods imported into the territory from the British Virgin Islands, the Senate president announced.
The discussion between the lawmakers and governor will also touch on the administration’s proposal to introduce entry and exit fees for non-Virgin Islanders traveling between the Virgin Islands and British Virgin Islands.
Members of the local marine industry expressed deep concerns during a town hall meeting organized by the Virgin Islands Professional Charter Association on February 18 over proposed regulation changes in the neighboring British Virgin Islands that include steep increases in chartering permit fees for foreign-based vessels and restrictions on the definition of home-based vessels. One attendee expressed concerns about the BVI’s protectionist measures, suggesting a need for a retaliatory response.
The governor wrote a letter to Senate President Milton Potter the next day requesting an emergency meeting of the Legislature to address urgent economic and policy considerations regarding the imposition of his administration’s proposed tariff and entry/exit fees.
“The increasing imbalance in cross-border trade and travel necessitates immediate legislative action to protect our local economy, ensure fair trade practices, and generate additional revenue for critical infrastructure and public services,” Bryan wrote in his February 19 letter.
Potter announced on February 21 that the lawmaking body’s officers would convene an emergency meeting with the governor on Wednesday to discuss his proposals. He noted the Office of the Governor would present detailed briefings on several key areas, including current trade imbalances and economic impacts, implementation framework for the proposed tariffs, revenue projections from the new fees, enforcement mechanisms, and potential effects on tourism and local businesses.
“We recognize the urgency of addressing economic challenges facing our territory,” Potter said in a statement. “The Legislature looks forward to engaging in productive discussion with the Governor’s Office while ensuring any proposed measures protect our local economy and maintain positive relations with our brothers and sisters in the BVI.”
As senators and the governor prepare to meet, the Legislature’s assistant legal counsel, Sharline Rogers, issued a legal opinion through the body’s chief legal counsel, Amos Carty Jr., on Tuesday in response to four questions posed by Senator Kenneth Gittens, Senate vice president, based on the administration’s proposal to impose a tariff.
The governor does not have the legal authority, with or without the approval of the Legislature, to impose tariffs on goods or services coming into the Virgin Islands from the British Virgin Islands or other foreign jurisdictions, according to the legal opinion. The U.S. Constitution bestowed the power to impose tariffs upon Congress. Congress, however, has delegated the power to lay tariffs to the U.S. president, a practice that began with the Reciprocal Trade Agreements Act of 1934 and has continued to the present.
In response to Gittens’ question about what fees (not tariffs), if any, the governor could independently impose on goods and services coming into the Virgin Islands from the BVI or other foreign countries, the legal opinion stated that the governor cannot independently impose such a fee.
Gittens also asked what legal precedents or provisions of Virgin Islands law, federal law, or other relevant regulations govern the imposition of tariffs or similar trade restrictions by the VI government. According to the legal opinion, the VI government does not have the authority to impose tariffs. The Revised Organic Act in Section 8(f)(1), however, bestows upon the Legislature the authority to impose a custom duty on any article imported into the Virgin Islands for consumption.
In response to Gittens’ final question regarding the legal steps or processes the governor would need to follow to implement any tariffs, the legal opinion reiterated that the governor cannot impose tariffs.
