Governor Lacks Authority to Impose Tariffs, Legal Opinion States

The governor of the U.S. Virgin Islands does not possess the legal authority to impose tariffs on goods or services imported from the British Virgin Islands or any other foreign jurisdiction, according to a legal opinion issued by the Legislature’s assistant legal counsel, Sharline Rogers. The U.S. Constitution grants the power to impose tariffs exclusively to Congress, which has delegated that authority to the U.S. president through legislation, including the Reciprocal Trade Agreements Act of 1934.

The legal opinion, delivered through the chief legal counsel of the Legislature, Amos Carty Jr., was issued in response to inquiries from Senate Vice President Kenneth Gittens. It further stated that the governor cannot independently impose fees on goods and services entering the Virgin Islands from the British Virgin Islands or other foreign countries. While the Revised Organic Act grants the Legislature authority to impose customs duties on imported goods for consumption, no such authority extends to the governor.

The opinion comes as the officers of the 36th Legislature prepare to convene an emergency meeting with Governor Albert Bryan Jr. today, Wednesday, February 26. The meeting was requested by the governor in a February 19 letter to Senate President Milton Potter, in which he urged immediate legislative action to address what he described as an “increasing imbalance in cross-border trade and travel.” Bryan proposed a tariff of at least 25% on goods imported from the British Virgin Islands and the introduction of entry and exit fees for non-Virgin Islanders traveling between the two territories.

Senate President Potter announced the emergency meeting on February 21, stating that the Office of the Governor would present briefings on trade imbalances, economic impacts, revenue projections, 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.”

Meanwhile, concerns have been growing within the local marine industry regarding proposed regulatory changes in the British Virgin Islands. At a town hall meeting on February 18, organised by the Virgin Islands Professional Charter Association, industry stakeholders expressed alarm over steep increases in chartering permit fees for foreign-based vessels and new restrictions on home-based vessel definitions. One attendee suggested a retaliatory response to the BVI’s protectionist measures.

Despite these concerns, the legal opinion confirms that the governor lacks the authority to unilaterally impose tariffs or fees on cross-border trade. Any action on the matter would require intervention at the federal level or legislative measures within the Virgin Islands’ constitutional framework.

Source: WTJX Virgin Islands Public Broadcasting System