Garment maker United International Corp may shutdown its operation by the end of June.
UIC, located along the main road in San Antonio, has less than 1,000 workers.
From January 2005, 11 factories have been closed in Saipan. Ever since the World Trade Organization lifted trade quotas, Saipan factories are unable to cope up with the competitiveness of international market.
Concorde Garment Manufacturing Company, the largest factory in Saipan, shut down operations in December 2006. About 1,400 people were employed here.
With this closure, the Government faced a significant reduction in fee and revenue collections: user fee, labor application fees, and taxes.
The garment industry contributes around $60 million in direct taxes a year to the local Government.
For user fee, which represents 3.7 percent of total industry sales, the Government collected around $30 million a year.
In fiscal year 2006, the user fee collection went down to $19.5 million.
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