ITA and Interior Issue Final 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 final rule, effective May 7, 2007, which amends 15 CFR Part 303 governing 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 final rule updates 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 clarifies the definition of creditable and non-creditable wages and fringe benefits, provides more details about the calculation of mid-year and annual duty-refund and verification process, and makes minor editorial changes.
Highlights of Final Rule
According to the explanatory text provided by the ITA and Interior, the final rule modifies 15 CFR Part 303 by (partial list):
amending 15 CFR 303.14(b)(3) to raise 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.
amending 15 CFR 303.1(c) and 303.15(b) to reflect that the 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.
amending various subparagraphs of 15 CFR 303.2 and 303.16 to clarify which wages, health insurance, life insurance and pension benefits are creditable in the agencies' calculation of the duty-refund benefits and which are not.
amending 15 CFR 303.16(a)(9)(i)(C) and (a)(10)(i)(D) to clarify 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 may not work together with a program jewelry producer on the manufacturing of a single article of jewelry and receive creditable wages and benefits.
amending 15 CFR 303.12(a)(1), 303.14(c), 303.19(a)(1) and 303.20(b) to provide further details about the calculation of the mid-year duty-refund and annual duty-refund. The final rule also modifies the criteria for the (1) calculation of the annual duty-refund to include health insurance, life insurance and pension benefits, pursuant to P.L. 108-429, and (2) calculation of the mid-year duty refund.
amending 15 CFR 303.5(c) and 303.17(c) to specify 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.
amending 15 CFR 303.2(b)(5) and 303.16(b)(3) to clarify that the refund of duties is specifically on items that entered into the Customs territory of the U.S. "duty paid."
(See final rule for a complete list of amendments and affected regulations.)
(See ITT's Online Archives or 02/05/07 news, 07020520, for BP summary of the proposed rule.)
ITA/Interior contact - Faye Robinson (202) 482-3526
ITA/Interior final rule (D/N 0612243019-7062-02, FR Pub 04/05/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-1578.pdf