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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 67,200 in July 2011.
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 January 2008.
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
Jurelang Zedkaia who succeeded Litokwa Tomeing
following a no-confidence vote on 21 October 2009.
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 estimated at USD133.5m in 2008,
with annual growth estimated at -0.3% in the same
year. Unemployment exceeded 30% in 2006. Inflation
in 2008 was estimated at 12.9%.
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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 must pay
$25 for a 3-month tourist visa and $50 for a business
visa (at the time of writing). 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 2009, main telephone
lines in use were estimated at 4,400, and cell
phones at 1,000.
2009
figures suggested that there were around 2,200
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$1.0m, 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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