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MARSHALL
ISLANDS GEOGRAPHY
- MARSHALL
ISLANDS HISTORY, POPULATION, LANGUAGE AND CULTURE
- MARSHALL
ISLANDS GOVERNMENT
- MARSHALL ISLANDS ECONOMY
AND CURRENCY
- MARSHALL ISLANDS ENTRY
AND RESIDENCE
- MARSHALL ISLANDS BUSINESS
ENVIRONMENT
- MARSHALL
ISLANDS FOREIGN INVESTMENT REGIME
Marshall Islands Geography
The
Marshall Islands are in Oceania, about one-half
of the way from Hawaii to Australia. They consist
of two archipelagic chains of 30 atolls and
1,152 islands.
Of
the 29 atolls, 27 are accessible by small plane
(Air Marshall Islands). Majuro and Kwajalein
atolls, the two population centres are serviced
by both Air Marshall Islands and Continental
Air Micronesia Jet Aircraft. There are also
regular flights to Guam, Hawaii and Fiji.
The
Marshall's climate is tropical with the average
temperature 27 degrees C. and there is less
than a 12 degree daily variation. High temperatures
are cooled by trade winds and frequent rainfall.
Primary leisure activities include world-class
scuba diving on wrecks, walls and reefs, snorkelling
and sports fishing for tuna, marlin, sailfish
and more as well as WW2 wreck sightseeing.
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Marshall Islands History, Population, Language
and Culture
The
population was estimated to be just under 62,000
in July 2007.
The
Republic of the Marshall Islands was first settled
in about 1,000 BC by people of Mayo/Polynesian
stock. It was visited by Spanish navigators in
the 16th century seeking a westerly route to the
Spice Islands.
British
naval explorer John Marshall gave his name to
the islands in 1788. The Marshall Islands were
under control of Spain from 1500 to the late 1800s,
Germany from 1885 to World War I, and Japan from
1917 to 1944. After the second World War, the
Marshall Islands became a United Nations Trust
Territory of the Pacific Islands, under United
States administration.
The
Republic of the Marshall Islands came into existence
in 1979 and gained its independence in 1986, after
signing a Compact of Free Association with the
United States. The Republic became a full member
of the United Nations in 1991 and has established
diplomatic relations with the world's major maritime
and industrial nations.
Marshallese
and English are official languages and both are
taught in schools.
Religious
affiliation is as follows: Protestant 54.8%, Assembly
of God 25.8%, Roman Catholic 8.4%, Bukot nan Jesus
2.8%, Mormon 2.1%, other Christian 3.6%, other
1%, none 1.5% (1999 census).
Majuro
atoll, capital of the Marshall Islands, is the
most developed atoll with a thriving commercial
and political centre and a population of nearly
30,000. It offers visitors, diving and fishing,
a cultural museum, a variety of cuisine and entertaining
nightlife.
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Marshall Islands Government
Republic
of the Marshall Islands has a government modeled
after that of New Zealand, although the chief
minister and head of state bears the title of
President.
There
is a unicameral Parliament (Nitijela) with 33
seats. Members are elected by popular vote to
serve four-year terms. Elections were last held
in November, 2003.
There
is also a 12-member Council of Chiefs (Iroij)
which advises on matters affecting customary law
and practice.
The
chief of state and head of government is President
Litokwa Tomeing, who defeated former President
Kessai Hesa Note in an election held on 7th January,
2008. Note had served as President since 5th January
2004.
The
Judicial Branch of the Marshall Islands includes
the Supreme Court, High Court, district and community
courts, and traditional rights court. Trial is
by jury or judge.
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Marshall Islands Economy
and Currency
The
Marshall Islands has a stable business environment;
the currency is the US dollar.
Air
transportation is facilitated by two international
airports, plus airstrips scattered throughout
the larger islands. There are twelve deep water
docks for large ocean-going ships.
Commercial
activities include: fishing, aquaculture farms,
copra, and a rapidly expanding tourist trade.
Giant clams and sea cucumbers, prized for their
meat and shell, are farmed on many islands. Major
tourist attractions include the world-class snorkel
and scuba diving of submerged World War II wrecks,
colorful reefs and exotic fish in clear warm water
with visibility over 100 feet.
GDP
at purchasing power parity was US$1,800 in 2003,
with annual growth at 1%. Unemployment exceeds
30%. Inflation in 2005 was 3%.
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Marshall Islands Entry and
Residence
Visas
are not required for United States, Federated
States of Micronesia, and Palau citizens. All
other visitors currently must pay $25 for a 3-month
tourist visa and $50 for a business visa. The
visas are issued upon arrival. All visitors must
hold a valid passport valid for one year from
the date of arrival.
US
passport holders may stay up to 30 days without
visa, however permit must be obtained prior to
entry (not necessary for cruise passengers).
For
stays up to 30 days (extendible for up to 90 days
from date of entry), all visitors must possess
sufficient funds for stay and possess an onward
air or sea ticket or sufficient funds for such
ticket. A departure fee of $15 US (those over
age 60 exempt) is required.
Yellow
fever certificates and cholera vaccinations are
required by all travelers arriving from infected
areas. Vaccination against Hepatitis A and B,
typhoid, tetanus and diphtheria may be advised.
For those intending to stay for more than 30 days,
an AIDS certificate is required.
Temporary
residence permits are issued by the Attorney General.
Work
permits are required for non-resident workers
regardless of the term of their employment contract.
The Government requires employers to follow a
three-stage process in obtaining work permits
for non-resident workers:
- First,
they must notify the Chief of Labor in the Ministry
of Foreign Affairs by letter of their desire
to employ a non-resident worker for a particular
position.
- Second,
they must make an effort to hire a citizen for
the position, including advertising the position
in a local newspaper and on the radio.
- Third,
if their efforts to hire a citizen worker are
unsuccessful, they can apply, using a prescribed
form, to the Chief of Labor requesting a specific
non-resident worker to fill the position. Submission
of the application must wait at least 30 days
following the initial advertisement for the
position. In their application, the investor
must show evidence of their efforts to hire
a citizen worker. They also must demonstrate
that the proposed non-resident worker has the
skills and experience to effectively fill the
position, does not possess any communicable
diseases and does not have a police record.
Every effort is made to provide the applicant
with a decision regarding their application
within 14 days of its submission.
A
work permit is issued for a specific non-resident
worker for a period of one year. The permit must
be renewed at the end of the calendar year and
can be renewed for a total of two years. It may
be extended for a third year at the discretion
of Cabinet. The Government requires all employers
with non-resident workers to agree in writing
to cover the cost of repatriating non-resident
workers to the place from which they were hired.
Non-citizen
investors issued with a foreign investment business
license are exempted from having to obtain a work
permit for themselves. Similarly, citizens of
the United States, Federated States of Micronesia
and Palau do not require work permits to be employed
in the Marshall Islands. Non-citizen investors
and nationals of the above-mentioned countries,
however, are required to register with the Labor
Office.
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Marshall Islands Business
Enviroment
Financial
services include the Bank of Guam and the Bank
of Hawaii, in addition to local banks. The major
islands have their own power plants and water
systems.
Telecommunications
services include telex, cellular, internet, international
calling, caller ID, and leased data circuits.
Majuro Atoll and Ebeye and Kwajalein islands have
regular, seven-digit, direct-dial telephones;
other islands interconnected by shortwave radiotelephone
(used mostly for government purposes). The international
country code is 692.
In
2004, main telephone lines in use were estimated
at 5,510, and cell phones at 1,198.
2005
figures suggested that there were around 2,000
internet users in the jurisdiction.
Local
governments issue business licenses for businesses
operating in their areas of jurisdiction. Each
local government determines its own rates and
administration procedures.
There
are no foreign exchange controls in the Marshall
Islands. However, the Government requires all
banks in the Republic of the Marshall Islands
to report transfers of funds from the country
over a 24-hour period that are in excess of US$10,000.
This requirement is a result of the Government’s
international money laundering commitments. The
Banking Commission monitors this information and
has the authority to investigate the financial
records of individuals or businesses, as it considers
necessary.
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Marshall Islands Foreign
Investment
The
Government of the Republic of the Marshall Islands
is particularly interested in encouraging private
investment in its fisheries, tourism, manufacturing
and agriculture sectors, and is actively seeking
direct foreign investment to assist the country
meet its goals.
The
Government has established the Trade and Investment
Services Division under the Ministry of Resources
and Development to be responsible for investment
promotion and the provision of investor facilitation
services.
The
Division provides information on investment conditions
and data on the cost of doing business in the
country and investment related authorization procedures.
It assists in arranging meetings with government
officials, and identifying local private consulting,
accounting and legal services to assist investors
comply with the various approvals required in
order to establish and operate their business
activities.
The
Government requires all non-citizen investments
to obtain a Foreign Investment Business License
(FIBL). A non-citizen investment is defined as
having any level of its equity held by a non-citizen
(i.e. foreign citizen, corporation, joint venture,
partnership or other legal entity). The FIBL can
be obtained by making application to the Registrar
of Foreign Investment in the Office of the Attorney
General using a prescribed form.
The
Government requires non-citizen investments to
either incorporate as a domestic limited company
in the Republic of the Marshall Islands, or register
as a foreign entity, which can be a limited company,
partnership or sole proprietorship.
In
general, non-citizen investment from all countries
is equally welcome and unrestricted in the Republic
of the Marshall Islands. Certain sectors, however,
have been reserved for citizen investment. These
sectors are specified in a Reserved List:
- Small
scale agriculture for local markets;
- Small
scale mariculture for local markets;
- Bakeries
and pastry shops;
- Motor
garages and fuel filling stations;
- Land
Taxi Operations, not including airport taxis
used by hotels;
- Rental
of all types of motor vehicles;
- Small
retail shops with a quarterly turnover of less
than US$ 1,000.00 (including mobile retail shops
and/or open-air vendors/take-outs);
- Laundromat
and dry cleaning, other than service provided
by hotels/motels;
- Tailor
/ sewing shop;
- Video
rental;
- Handicraft
shop;
- Delicatessen,
Deli Shop or Food take-out.
The
Government is committed to maintaining its marine
resources, primarily to ensure food security.
Tuna is the only resource for which industrial-scale
fisheries is promoted. Priority is given to increasing
the returns accruing from this fishery by encouraging
domestic-based production, processing and exports
of tuna products. Domestic-based fishing investments,
both non-citizen and citizen owned, intending
to fish for tuna in the Republic of the Marshall
Islands’ exclusive economic zone must negotiate
a fishing license agreement with the Marshall
Islands Marine Resources Authority (MIMRA).
The
Government similarly requires any investor interested
in exploiting or culturing marine resources in
its coastal waters to obtain a license from MIMRA.
To
help meet its private sector objectives, the Government
offers investments in selected sectors exemptions
from paying taxes and duties. The exemptions are
equally available to both non-citizen and citizen
investors, and can be applied for by submitting
a letter to the Minister of Finance. Investors
intending to establish in the following export-oriented
sectors can be exempted from paying gross revenue
tax for a five-year period:
- Off-shore
or deep sea fishing;
- Manufacturing
for export, or for both export and local use;
- Agriculture;
- Hotel
and resort facilities.
In
order to qualify for an exemption, the investor
must make an investment of at least US$ 1.0 million,
or provide employment and wages in excess of US$
150,000 per annum to citizen workers.
The
government also offers investments in seabed hard
mineral mining in the country’s exclusive economic
zone an exemption from paying all taxes, duties
and other charges except taxes on wages and salaries,
individual income tax and social security contributions.
In order to qualify for the exemption, investors
must pay the Government a royalty, production
charge or combination of production charge and
a share of net proceeds accruing from the mining
activity. All investors are required to notify
the Environmental Protection Agency (EPA) prior
to commencing any development to determine if
an EIA is necessary.
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