[Federal Register: October 1, 2003 (Volume 68, Number 190)]
[Rules and Regulations]
[Page 56555-56556]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01oc03-7]
[[Page 56555]]
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DEPARTMENT OF COMMERCE
International Trade Administration
DEPARTMENT OF THE INTERIOR
Office of Insular Affairs
15 CFR Part 303
[Docket No. 030707164-3230-02]
RIN 0625-AA63
Changes in the Insular Possessions Watch, Watch Movement and
Jewelry Program
AGENCIES: Import Administration, International Trade Administration,
Department of Commerce; Office of Insular Affairs, Department of the
Interior.
ACTION: Final rule.
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SUMMARY: The Departments of Commerce and the Interior (the Departments)
amend their regulations governing watch duty-exemption allocations and
the watch and jewelry duty-refund benefits for producers in the United
States insular possessions (the U.S. Virgin Islands, Guam, American
Samoa and the Commonwealth of the Northern Mariana Islands). The rule
amends existing regulations, due to changes in the industry, by
updating the watch assembly requirements for purposes of the duty
refund. We also amend 15 CFR part 303 to reflect the new designations
that were created with the addition of the Department of Homeland
Security.
DATES: This rule is effective October 1, 2003.
FOR FURTHER INFORMATION CONTACT: Faye Robinson, (202) 482-3526.
SUPPLEMENTARY INFORMATION: The Departments of Commerce and the Interior
(the Departments) issue this rule to amend their regulations governing
watch duty-exemption allocations and the watch and jewelry duty-refund
benefits for producers in the United States insular possessions (the
U.S. Virgin Islands, Guam, American Samoa and the Commonwealth of the
Northern Mariana Islands). The background information and purpose of
this rule is found in the preamble to the proposed rule (68 FR 45177,
August 1, 2003) and is not repeated here.
The Departments amend the definitions for Creditable wages and Non-
91/5 watches and watch movements, subpart A, 303.2(a)(13) and (14)
respectively, to allow wages to be creditable towards the duty refund
for watches containing preassembled movements provided (1) that the
producer is unable to purchase the movements unassembled and (2) that
it completes in the insular possession all other assembly operations
required to make the movement into a watch (see discussion, below). In
order for wages to be considered creditable for watch assembly
operations which incorporate preassembled movements, the Departments
also amend subpart A, 303.5(b)(6) to require producers who completely
assemble watches in the insular possessions, with the exception of the
movement, to maintain documentation that demonstrates that the
preassembled movement the insular producer purchased could not have
been purchased in an unassembled condition. This documentation must be
available, along with other relevant company records, for review during
the annual audit and verification of the data from the Annual
Application ( Form ITA-334P). Producers are still required to meet the
Bureau of Customs and Border Protection and the Departments' assembly
requirements for purposes of the duty exemption.
Finally, this rule amends 15 CFR part 303 to reflect the new
designations that were created with the addition of the Department of
Homeland Security.
ITA received one comment in response to the proposed rule and
request for comments. The commenter expressed support in totality for
the new rule without revision. Accordingly, the Departments adopt the
provisions in the proposed rule without change.
Administrative Law Requirements
Administrative Procedure Act. The Departments waives the 30-day
delay in effectiveness for this rule because this rule relieves a
restriction. (See 5 U.S.C. 553(d)(1)). This rule provides more
flexibility in the types of movements that can be used in the watch
assembly than was allowed prior to the adoption of this rule. Also,
this rule allows a duty refund benefit for watches assembled with
partially or completely assembled movements if the movement cannot be
purchased unassembled. Because, this rule relieves restrictions for
watch manufacturers, the 30-day delay in effectiveness is waived and
this rule is effective upon publication.
Regulatory Flexibility Act. In accordance with the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., the Chief Counsel for Regulation
at the Department of Commerce has certified to the Chief Counsel for
Advocacy, Small Business Administration, that the proposed rule would
not have a significant economic impact on a substantial number of small
entities. The factual basis for this certification was published in the
proposed rule and is not repeated here. No comments were received
regarding the economic impact of this rule on small entities. As a
result, a final regulatory flexibility analysis was not prepared.
Paperwork Reduction Act. This rulemaking contains revised
collection of information requirements that have been approved by the
Office of Management and Budget under control numbers 0625-0040 and
0625-0134. Send comments regarding the burden estimate or any other
aspect of the collection of information to U.S. Department of Commerce,
ITA Information Officer, Washington, DC 20230 and the Office of
Information and Regulations Officer, Office of Management and Budget,
Washington, DC 20503 (Att: OMB Desk Officer).
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with a collection of information unless it
displays a currently valid OMB Control Number.
E.O. 12866. It has been determined that the rulemaking is not
significant for purposes of Executive Order 12866.
List of Subjects in 15 CFR Part 303
Administrative practice and procedure, American Samoa, Customs
duties and inspection, Guam, Imports, Marketing quotas, Northern
Mariana Islands, Reporting and record keeping requirements, Virgin
Islands, Watches and jewelry.
0
For reasons set forth above, the Departments amend 15 CFR part 303 as
follows:
PART 303--WATCHES, WATCH MOVEMENTS AND JEWELRY PROGRAM
0
1. The authority citation for 15 CFR part 303 continues to read as
follows:
Authority: Pub. L. 97-446, 96 Stat. 2331 (19 U.S.C. 1202, note);
Pub. L. 103-465, 108 Stat. 4991; Pub. L. 94-241, 90 Stat. 263 (48
U.S.C. 1681, note); Pub. L. 106-36, 113 Stat. 167.
0
2. Title 15 CFR part 303 is amended by removing ``U.S. Customs
Service'' or ``Customs Service'' wherever it appears and adding
``Bureau of Customs and Border Protection'' in its place.
0
3. Title 15 CFR part 303 is amended by removing ``Department of the
Treasury'' wherever it appears and adding ``Department of Homeland
Security'' in its place.
0
4. Section 303.2 is amended by revising the first sentence of paragraph
(a)(13) and the first sentence of paragraph (a)(14) as set forth below.
[[Page 56556]]
Sec. 303.2 Definitions and forms.
(a) * * *
(13) Creditable wages means all wages, up to an amount equal to 65%
of the contribution and benefit base for Social Security as defined in
the Social Security Act for the year in which the wages were earned,
paid to permanent residents of the territories employed in a firm's 91/
5 watch and watch movement assembly operations, plus wages paid for the
repair of non-91/5 watches up to an amount equal to 50% of the firm's
total creditable wages, and for wages paid for the complete assembly of
watches in the insular possession, with the exception of the movement,
only in situations where the desired movement can not be purchased in
an unassembled condition. * * *
(14) Non-91/5 watches and watch movements include, but are not
limited to, watches and movements which are liquidated as dutiable by
the Bureau of Customs and Border Protection but do not include, for
purposes of the duty refund, watches that are completely assembled in
the insular possessions, with the exception of a desired movement if
the movement cannot be purchased in an unassembled condition; contains
any material which is the product of any country with respect to which
Column 2 rates of duty apply; are ineligible for duty-free treatment
pursuant to law or regulation; or are units the assembly of which the
Departments have determined not to involve substantial and meaningful
work in the territories (as elsewhere defined in these regulations).
* * * * *
0
5. Section 303.5(b)(6) is revised to read as set forth below.
Sec. 303.5 Application for annual allocation of duty-exemptions.
* * * * *
(b) * * *
(6) Records on purchases of components, including documentation on
the purchase of any preassembled movements, which demonstrate that such
movements could not have been purchased from the vendor in an
unassembled condition, and records on the sales of insular watches and
movements, including proof of payment; and''
* * * * *
James J. Jochum,
Acting Assistant Secretary for Import Administration, Department of
Commerce.
Nikolao Pula,
Director, Office of Insular Affairs, Department of the Interior.
[FR Doc. 03-24903 Filed 9-30-03; 8:45 am]