After going through multiple laws that never properly regulated the importation of betel nut into RMI, Nitijela has redone the law once again — but this time making it legal to import the nuts and establishing a system for taxing these imports.
The Betelnut Amendment Act of 2025, endorsed earlier this month by Nitijela, states that its aim is for “proper regulation of betel nut importation,” including a system of import tax and business licensing for importers.
The new Public Law 2026-69 states clearly that “the importation, distribution and sale of betel nut is permitted in the Republic, subject to conditions provided in this Act.” It also bans the sale of betel nut to minors under the age of 18 and gives local governments authority to enact ordinances within their jurisdictions that follow relevant sections of the new law.
The new law gives local governments the authority to “prohibit or restrict the sale and distribution of betel nut within its jurisdiction.” But local governments cannot prohibit the importation of betel into RMI.
Key provisions included:
- To legally import betel nut to RMI, a person or company needs to be licensed to import it. The law lists fines for selling without a license.
- The Ministry of Finance shall establish a Betel nut Revenue Fund to provide quarterly reports on revenue collected through imports.
- The Betel nut fund will use 20 percent of the revenue to support projects on the outer islands, including public health, community development, enforcement of betel nut rules, and other things. The other 80 percent is for the national government to use to support “initiatives related to betel nut to enhance enforcement, public health programs, and community development.”
- A six-month grace period for implementation is provided from the date of signing, earlier this month. “During this period, businesses and individuals engaged in the importation and sale of betel nut shall not be penalized for failure to meet the requirements related to import tax of the possession of a valid license for betel nut importation, provided they make reasonable efforts to come into compliance.”
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