ITA and Interior Issue Proposed Rule on the Watch, Watch Movement, and Jewelry Insular Possession Programs
The International Trade Administration (ITA) and the Department of Interior (Interior) have issued a proposed rule to amend 15 CFR Part 303 which governs watch duty-exemption allocations and the watch and jewelry duty-refund benefits for producers in the U.S. insular possessions (the U.S. Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Mariana Islands).
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According to the agencies, this proposed rule would update the maximum total value of watch components per watch that are eligible for duty-free entry into the U.S. under the insular program, further clarify the definition of creditable and non-creditable wages and fringe benefits, provide more details about the calculation of mid-year and annual duty-refund and verification process, and make minor editorial changes.
Written comments must be received on or before February 23, 2007.
Highlights of Proposed Rule
According to the explanatory text provided by the ITA and Interior, the proposed amendments would modify 15 CFR 303 by (partial list):
raising the maximum total value of watch components per watch and watch movement that are eligible for duty-free entry into the U.S., from $800 to $3,000 per watch and from $35 to $300 per watch movement due to recent increases in the price of gold.
stating that duty refunds may now be obtained on any articles that entered the customs territory of the U.S. duty paid except for any article containing a material which is the product of a country to which column 2 rates of duty apply, pursuant to the Miscellaneous Trade and Technical Corrections Act of 2004, Public Law (P.L.) 108-429.
clarifying which wages, health insurance, life insurance and pension benefits are creditable in the agencies' calculation of the duty-refund benefits and which are not.
clarifying that two program producers may, under certain circumstances, work on the same unit of jewelry and receive creditable wages and fringe benefits proportionally if both producers demonstrate that they have met all the qualifications of the regulations and have records sufficient for the agencies' verification. However, a non-program jewelry producer would not be permitted work together with a program jewelry producer on the manufacturing of a single article of jewelry and receive creditable wages and benefits.
providing further details about the calculation of the mid-year duty-refund and annual duty-refund. The criteria would be modified for the calculation of the annual duty-refund to include health insurance, life insurance and pension benefits, pursuant to P.L. 108-429, and for the calculation of the mid-year duty refund.
specifying that all data must be available at the time of the annual verification and that the agencies will not consider further data after the verification for the particular year has been completed.
clarifying that the refund of duties is specifically on items that entered into the Customs territory of the U.S. "duty paid".
(See proposed rule for a complete list of proposed amendments and affected regulations.)
Agencies Maintain Option to Further Review Value Limits
The agencies state that based on comments received on the advance notice of proposed rulemaking, they propose increasing the value limits on watches and watch movements while maintaining the option to further review value limits in future years if circumstances dictate a change.
(See ITT's Online Archives or 10/24/06 news, 06102410, for BP summary of the ITA and Interior Department's advance notice of proposed rulemaking.)
-written comments must be received on or before February 23, 2007
ITA/Interior contact: Faye Robinson (202) 482-3526
ITA/Interior proposed rule (D/N 0612243019-7006-01, FR Pub 01/24/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-294.pdf