Changes in the Insular Possessions Watch, Watch Movement and Jewelry Programs, 67645-67650 [05-22244]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations
rules on aviation safety. Subtitle I,
section 106, describes the authority of
the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more
detail the scope of the Agency’s
authority.
We are issuing this rulemaking under
the authority described in subtitle VII,
part A, subpart III, section 44701,
‘‘General requirements.’’ Under that
section, Congress charges the FAA with
promoting safe flight of civil aircraft in
air commerce by prescribing regulations
for practices, methods, and procedures
the Administrator finds necessary for
safety in air commerce. This regulation
is within the scope of that authority
because it addresses an unsafe condition
that is likely to exist or develop on
products identified in this rulemaking
action.
Regulatory Findings
We have determined that this AD will
not have federalism implications under
Executive Order 13132. This AD will
not have a substantial direct effect on
the States, on the relationship between
the National Government and the States,
or on the distribution of power and
responsibilities among the various
levels of government.
For the reasons discussed above, I
certify that this AD:
(1) Is not a ‘‘significant regulatory
action’’ under Executive Order 12866;
(2) Is not a ‘‘significant rule’’ under
DOT Regulatory Policies and Procedures
(44 FR 11034, February 26, 1979); and
(3) Will not have a significant
economic impact, positive or negative,
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
We prepared a regulatory evaluation
of the estimated costs to comply with
this AD and placed it in the AD docket.
See the ADDRESSES section for a location
to examine the regulatory evaluation.
by adding the following new
airworthiness directive (AD):
DEPARTMENT OF COMMERCE
2005–23–07 Boeing: Amendment 39–14365.
Docket No. FAA–2005–21975;
Directorate Identifier 2005–NM–122–AD.
International Trade Administration
Effective Date
Office of Insular Affairs
(a) This AD becomes effective December
13, 2005.
15 CFR Part 303
Affected ADs
Applicability
RIN 0625–AA68
(c) This AD applies to all Boeing Model
727, 727C, 727–100, 727–100C, 727–200, and
727–200F series airplanes; certificated in any
category.
Changes in the Insular Possessions
Watch, Watch Movement and Jewelry
Programs
Unsafe Condition
AGENCIES:
(d) This AD results from fuel system
reviews conducted by the manufacturer. We
are issuing this AD to prohibit the resetting
of a tripped circuit breaker for a fuel pump,
which could allow an electrical fault to
override the protective features of the circuit
breaker, and could result in sparks inside the
fuel tank, ignition of fuel vapors, and
consequent fire or explosion.
Compliance
(e) You are responsible for having the
actions required by this AD performed within
the compliance times specified, unless the
actions have already been done.
Revise the Airplane Flight Manual (AFM)
(f) Within 30 days after the effective date
of this AD, revise the Limitations section of
the Boeing 727 AFM to include the following
statement. This may be done by inserting a
copy of this AD into the AFM.
‘‘Do not reset a tripped fuel pump circuit
breaker.’’
Note 1: When a statement identical to that
in paragraph (f) of this AD has been included
in the general revisions of the AFM, the
general revisions may be inserted into the
AFM, and the copy of this AD may be
removed from the AFM.
Accordingly, under the authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as
follows:
PART 39—AIRWORTHINESS
DIRECTIVES
Material Incorporated by Reference
(h) None.
1. The authority citation for part 39
continues to read as follows:
Issued in Renton, Washington, on October
26, 2005.
Kalene C. Yanamura,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 05–22214 Filed 11–7–05; 8:45 am]
Adoption of the Amendment
I
I
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The Federal Aviation
Administration (FAA) amends § 39.13
I
VerDate Aug<31>2005
16:28 Nov 07, 2005
Jkt 208001
DEPARTMENT OF THE INTERIOR
[Docket No. 050613157–5219–02]
(b) None.
Alternative Methods of Compliance
(AMOCs)
(g)(1) The Manager, Seattle Aircraft
Certification Office, FAA, has the authority to
approve AMOCs for this AD, if requested in
accordance with the procedures found in 14
CFR 39.19.
(2) Before using any AMOC approved in
accordance with 14 CFR 39.19 on any
airplane to which the AMOC applies, notify
the appropriate principal inspector in the
FAA Flight Standards Certificate Holding
District Office.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Safety.
67645
BILLING CODE 4910–13–P
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
Import Administration,
International Trade Administration,
Department of Commerce; Office of
Insular Affairs, Department of the
Interior.
ACTION: Final rule.
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 the
regulations by making technical changes
required by passage of the
Miscellaneous Trade and Technical
Corrections Act of 2004; extending the
duty refund benefits to include the
value of usual and customary health
insurance, life insurance and pension
benefits; raising the ceiling on the
amount of jewelry that qualifies for the
duty refund benefit; allowing new
insular jewelry producers to assemble
jewelry and have such jewelry treated as
an article of the insular possessions for
up to 18 months after the jewelry
company commences assembly
operations; allowing duty refund
certificate holders to secure a duty
refund on any articles that are imported
into the customs territory of the United
States by the certificate holder duty
paid; providing a more comprehensive
definition of ‘‘unit;’’ adjusting the
amount of watch repairs that are eligible
for the duty refund; providing
compensation to insular watch
producers if tariffs on watches and
watch movements are reduced; and
clarifying which wages are eligible for
purposes of determining the duty refund
and identifying which records are
needed for the audit.
DATES: This rule is effective December 8,
2005.
E:\FR\FM\08NOR1.SGM
08NOR1
67646
Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
Faye
Robinson, (202) 482–3526.
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 (70 FR 38828, July 6, 2005) and is
not repeated here.
SUPPLEMENTARY INFORMATION:
Amendments
Section 1562 of Public Law 108–429
(2004) amends Public Law 97–446,
Public Law 103–465 and Public Law
106–36. The rule makes the necessary
technical changes to reflect the new
authority for the insular watch and
jewelry programs. Changes are made to
Authority, 15 CFR Sections 303.1(a),
303.2(a)(1), 303.12 (c)(2), 303.15(a), and
303.16(a)(1).
Pursuant to Public Law 108–429, the
definition of ‘‘creditable wages’’ is
changed by amending 15 CFR
303.2(a)(13) and 15 CFR 303.16(a)(9) to
include the value of usual and
customary health insurance, life
insurance and pension benefits. The
rule also changes the definition of
creditable wages to include the
difference between the duty rates for
watches and watch movements that
were in effect on January 1, 2001 and
any new lower duty rates that takes
place in the future. This provision in
Public Law 108–429 is only applicable
if there were duty reductions on
watches and watch movements. We
further reapportion the percentage of
watch and watch movement repair
wages that are creditable towards the
duty-refund. The rule raises the
percentage of repairs that are eligible for
benefits in response to a request we
received which pointed out that repair
work is very labor intensive and more
time consuming than regular watch
assembly.
In an effort to further clarify which
wages are eligible for the duty refund,
we added a new Section 303.2(a)(14);
redesignated the current Sections
303.2(a)(14) through (a)(16) as Sections
303.2(a)(15) through (a)(17),
respectively; added a new Section
303.16(a)(10); and redesignated current
Sections 303.16(a)(10) and 303.16(a)(11)
as Sections 303.16(a)(11) and
§ 303.16(a)(12), respectively, to further
clarify which wages are not creditable.
We also, as requested by a producer,
VerDate Aug<31>2005
16:28 Nov 07, 2005
Jkt 208001
clarified the term ‘‘year’’ in current
Sections 303.2(a)(16) and 303.16(a)(11)
to clear up any possible confusion.
We also amended §§ 303.2(b)(4),
303.2(b)(5), 303.12(c)(1), 303.16(b)(2),
303.16(b)(3), and 303.19(c)(1). Pursuant
to Public Law 108–429, we are changing
the regulations to allow the refund of
duties on any articles that are imported
into the customs territory of the United
States duty paid by the certificate holder
unless the articles contain a material to
which column 2 rates of duty apply.
Further, the rule amends Sections
303.20(b)(ii),(b)(iii) and (b)(iv) by raising
the ceiling on the number of duty-free
units of jewelry entering the United
States each year that qualify for duty
refund benefits under the program.
Pursuant to Public Law 108–429, the
rule changes the maximum number of
units a year to qualify for the duty
refund benefit from 750,000 units to
10,000,000 units as long as the limit on
available program funds is not exceeded
and all the units are entered free of duty
in accordance with the regulations.
Another change, pursuant to Public
Law 108–429, amends Section
303.20(a)(2) to allow new program
jewelry producers up to an18 month
exemption from meeting the substantial
transformation requirements and the
other provisions normally required for
duty-free entry into the United States.
Starting on the day the new producer
commences jewelry manufacturing or
jewelry assembly, the jewelry producer
has up to 18 months for any article of
jewelry provided for in heading 7113,
HTSUS, that is assembled in an insular
possession, to be treated as a product of
the insular possession.
The rule also amends Section
303.16(a)(7) by expanding the definition
of a ‘‘unit’’ of jewelry so that the term
unit more accurately represents the way
some heading 7113, HTSUS, jewelry is
sold in the industry.
The rule further amends Sections
303.5(b)(5) and 303.17(b)(4) to clarify
that all records pertaining to shipment
documents and proof of residency, as
required, must be maintained and made
available for the verification of data. The
provision also adds new Sections
303.5(b)(8) and 303.17(b)(9) which
require the collection and maintenance
of information pertaining to health
insurance, life insurance and pension
benefits for each employee in order that
the benefit information can be verified
and the duty refunds, based on the
verified data, be issued in accordance
with Public Law 108–429. Further, in
accordance with Public Law 108–429,
the rule adds a new Section 303.5(b)(9)
in the event that the HTSUS tariffs on
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
watches and watch movements are
reduced.
ITA received two comments in
response to the proposed rule and
request for comments. Both commenters
supported all the provisions that were
proposed and as a result we are
adopting the proposed regulations in
this final rule.
Administrative Law Requirements
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 this
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 is not
required and has not been prepared.
Paperwork Reduction Act. This
rulemaking contains revised collection
of information requirements that have
been approved by the Office of
Management and Budget (OMB) under
control number 0625–0040. 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 (Attn: OMB Desk Officer), or
e-mail David_Rostker@omb.eop.gov.
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 the collection of information
unless it displays a currently valid OMB
Control Number.
E.O. 12866. It has been determined
that this 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.
For reasons set forth above, the
Departments amend 15 CFR part 303 as
follows:
I
E:\FR\FM\08NOR1.SGM
08NOR1
Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations
PART 303—WATCHES, WATCH
MOVEMENTS AND JEWELRY
PROGRAMS
1. The authority citation for 15 CFR
part 303 is revised to read as follows:
I
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; Pub. L. 108–429, 118 Stat. 2582.
§ 303.1
[Amended]
2. The first sentence of § 303.1(a) is
amended by removing ‘‘and amended by
Public Law 103–465, enacted 8
December 1994.’’ and adding ‘‘amended
by Public Law 103–465, enacted 8
December 1994 and amended by Public
Law 108–429 enacted 3 December
2004.’’ in its place.
I 3. Section 303.2 is amended as
follows:
I A. Section 303.2(a)(1) is amended by
removing ‘‘.’’ at the end of the sentence
and adding ‘‘, Public Law 108–429,
enacted on 3 December 2004, 118 Stat.
2582.’’ in its place.
I B. Section 303.2(a)(13) is revised as
set forth below.
I C. In Section 303.2, paragraphs (a)(14)
through (a)(16) are redesignated as
paragraphs (a)(15) through (a)(17), and a
new paragraph (a)(14) is added as set
forth below.
I D. Newly designated paragraph (a)(17)
is amended by removing ‘‘(i.e., be
physically present for at least 183 days
per year)’’ and adding ‘‘(i.e., be
physically present for at least 183 days
within a continuous 365 day period)’’ in
its place.
I E. The heading and the first sentences
of paragraph (b)(4) are revised as set
forth below.
I F. Paragraph (b)(5) heading is revised
as set forth below.
I
§ 303.2
Definitions and forms.
(a) * * *
(13) Creditable wages, creditable
fringe benefits and creditable duty
differentials eligible for the duty refund
benefit include, but are not limited to,
the following:
(i) Wages up to an amount equal to 65
percent of the contribution and benefit
base for Social Security, as defined in
the Social Security Act for the year in
which wages were earned, paid to
permanent residents of the insular
possessions employed in a firm’s 91/5
watch and watch movement program.
(A) Wages paid for the repair of
watches up to an amount equal to 85
percent of the firm’s total creditable
wages.
(B) Wages paid to watch and watch
movement assembly workers involved
VerDate Aug<31>2005
16:28 Nov 07, 2005
Jkt 208001
in the complete assembly of watches
and watch movements which have
entered the United States duty-free and
have complied with the laws and
regulations governing the program.
(C) Wages paid to watch and watch
movement assembly workers involved
in the complete assembly of watches,
excluding the movement, only in
situations where the desired movement
can not be purchased unassembled and
the producer has documentation
establishing this.
(D) Wages paid to those persons
engaged in the day-to-day assembly
operations on the premises of the
company office, wages paid to
administrative employees working on
the premises of the company office,
wages paid to security employees and
wages paid to servicing and
maintenance employees if these services
are integral to the assembly and
manufacturing operations and the
employees are working on the premises
of the company office.
(E) Wages paid to persons engaged in
both creditable and non-creditable
assembly and repair operations may be
credited proportionally provided the
firm maintains production, shipping
and payroll records adequate for the
Departments’ verification of the
creditable portion.
(F) Wages paid to new permanent
residents who have met the
requirements of permanent residency in
accordance with the Departments’
regulations, along with meeting all other
creditable wage requirements of the
regulations, which must be documented
and verified to the satisfaction of the
Secretaries.
(ii) The combined creditable amount
of individual health and life insurance
per year, for each full-time permanent
resident employee who works on the
premises of the company office and
whose wages qualify as creditable, may
not exceed 100 percent of the ‘‘weighted
average’’ yearly federal employee health
insurance, which is calculated from the
individual health plans weighted by the
number of individual contracts in each
plan. The yearly amount is calculated
by the Office of Personnel Management
and includes the ‘‘weighted average’’ of
all individual health insurance costs for
federal employees throughout the
United States. The maximum life
insurance allowed within this combined
amount is $50,000 for each employee.
(A) The combined creditable amount
of family health and life insurance per
year, for each full-time permanent
resident employee who works on the
premises of the company office and
whose wages qualify as creditable, may
not exceed 120 percent of the ‘‘weighted
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
67647
average’’ yearly federal employee health
insurance, which is calculated from the
family health plans weighted by the
number of family contracts in each plan.
The yearly amount is calculated by the
Office of Personnel Management and
includes the ‘‘weighted average’’ of all
family health insurance costs for federal
employees throughout the United
States. The maximum life insurance
allowed within this combined amount is
$50,000 for each employee.
(B) The creditable pension benefit, for
each full-time permanent resident
employee who works on the premises of
the company office and whose wages
qualify as creditable, is up to 3 percent
of the employee’s wages unless the
employee’s wages exceed the maximum
annual creditable wage allowed under
the program (see paragraph (a)(13)(i) of
this section). An employee earning more
than the maximum creditable wage
allowed under the program will be
eligible for only 3 percent of the
maximum creditable wage.
(iii) If tariffs on watches and watch
movements are reduced, then
companies would be required to provide
the annual aggregate data by individual
HTSUS watch tariff numbers for the
following components contained
therein: the quantity and value of watch
cases, the quantity of movements, the
quantity and value of each type of strap,
bracelet or band, and the quantity and
value of batteries shipped free of duty
into the United States. If discrete watch
movements are shipped free of duty into
the United States, then the annual
aggregate quantity by individual HTSUS
movement tariff numbers would also be
required along with the value of each
battery if it is contained within. These
data would be used to calculate the
annual duty rate before each HTSUS
tariff reduction, and the annual duty
rate after the HTSUS tariff reduction.
The amount of the difference would be
creditable toward the duty refund. The
tariff information would only be
collected and used in the calculation of
the annual duty-refund certificate and
would not be used in the calculation of
the mid-year duty-refund.
(14) Non-creditable wages and noncreditable fringe benefits. Wages
ineligible for the duty refund benefit
wages include, but are not limited to,
the following:
(i) Wages over 65 percent of the
contribution and benefit base for Social
Security, as defined in the Social
Security Act for the year in which wages
were earned, paid to permanent
residents of the territories employed in
a firm’s 91/5 watch and watch
movement program.
E:\FR\FM\08NOR1.SGM
08NOR1
67648
Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations
(A) Wages paid for the repair of
watches in an amount over 85 percent
of the firm’s total creditable wages.
(B) Wages paid for the assembly of
watches and watch movements which
are shipped outside the customs
territory of the United States; wages
paid for the assembly of watches and
watch movements that do not meet the
regulatory assembly requirements; or
wages paid for the assembly of watches
or watch movements that contain
HTSUS column 2 components.
(C) Wages paid for the complete
assembly of watches, excluding the
movement, when the desired movement
can be purchased unassembled, if the
producer does not have adequate
documentation, demonstrating to the
satisfaction of the Secretaries, that the
movement could not be purchased
unassembled whether or not it is
entering the United States.
(D) Wages paid to persons not
engaged in the day-to-day assembly
operations on the premises of the
company office; wages paid to any
outside consultants; wages paid to
outside the office personnel, including
but not limited to, lawyers, gardeners,
construction workers, and accountants;
wages paid to employees not working
on the premises of the company office;
and wages paid to employees who do
not qualify as permanent residents in
accordance with the Departments’
regulations.
(E) Wages paid to persons engaged in
both creditable and non-creditable
assembly and repair operations if the
producer does not maintain production,
shipping and payroll records adequate
for the Departments’ verification of the
creditable portion.
(ii) Any costs, for the year in which
the wages were paid, of the combined
creditable amount of individual health
and life insurance for employees over
100 percent of the ‘‘weighted average’’
yearly individual health insurance costs
for all federal employees. The cost of
any life insurance over the $50,000 limit
for each employee.
(A) Any costs, for the year in which
the wages were paid, of the combined
creditable amount of family health and
life insurance for employees over 120
percent of the ‘‘weighted average’’
yearly family health insurance costs for
all federal employee. The cost of any life
insurance over the $50,000 limit for
each employee.
(B) The cost of any pension benefit
per employee over 3 percent of the
employee’s creditable wages unless the
employee’s wages exceed the maximum
annual creditable annual maximum
creditable wage allowed under the
program (see paragraph (a)(13)(i) of this
VerDate Aug<31>2005
16:28 Nov 07, 2005
Jkt 208001
section). Employees earning over the
maximum creditable wage allowed
under the program would have a
creditable annual pension benefit of up
to 3 percent of the maximum creditable
wage and wages over 3 percent of the
maximum creditable wage would not be
creditable.
*
*
*
*
*
(b) * * *
(4) ITA–360P ‘‘Certificate of
Entitlement to Secure the Refund of
Duties on Articles that Entered the
Customs Territory of The United State
Duty Paid.’’ This document authorizes
an insular watch producer to request the
refund of duties on imports of articles
that entered the customs territory of the
United States duty paid, up to the
specified value of the certificate. * * *
(5) ITA–361P ‘‘Request for Refund of
Duties on Articles that Entered the
Customs Territory of the United States
Duty Paid.’’ * * *
*
*
*
*
*
I 4. Section 303.5(b)(5) is revised to
read as set forth below and
paragraph(b)(8) and (b)(9) are added to
read as set forth below.
§ 303.5 Application for annual allocation of
duty-exemptions.
*
*
*
*
*
(b) * * *
(5) Customs, bank, payroll,
production records, and all shipping
records including the importer of record
number and proof of residency, as
requested;
*
*
*
*
*
(8) All records pertaining to health
insurance, life insurance and pension
benefits for each employee; and
(9) If HTSUS tariffs on watches and
watch movements are reduced, records
of the annual aggregate data by
individual HTSUS watch tariff numbers
for the following components contained
therein would be required: the quantity
and value of watch cases; the quantity
of movements; the quantity and value of
each type of strap, bracelet or band; and
the quantity and value of batteries
shipped free of duty into the United
States. In addition, if applicable, records
of the annual aggregate quantity of
discrete watch movements shipped free
of duty into the United States by HTSUS
tariff number.
*
*
*
*
*
I 5. Section 303.12(c)(1) and (c)(2) are
revised to read as follows:
§ 303.12 Issuance and use of production
incentive certificates.
*
*
*
*
*
(c) The use and transfer of certificate
of entitlements. (1) Insular producers
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
issued a certificate may request a refund
by executing Form ITA–361P (see
§ 303.2(b)(5) and the instructions on the
form). After authentication by the
Department of Commerce, Form ITA–
361P may be used to obtain duty
refunds on articles that entered the
customs territory of the United States
duty paid except for any article
containing a material which is the
product of a country to which column
2 rates of duty apply. Articles for which
duty refunds are claimed must have
entered the customs territory of the
United States during the two-year
period prior to the issue date of the
certificate or during the one-year period
the certificate remains valid. Copies of
the appropriate Customs entries must be
provided with the refund request in
order to establish a basis for issuing the
claimed amounts. Certification
regarding drawback claims and
liquidated refunds relating to the
presented entries is required from the
claimant on the form.
(2) Regulations issued by the Bureau
of Customs and Border Protection, U.S.
Department of Homeland Security,
govern the refund of duties under Public
Law 97–446, as amended by Public Law
103–465 and Public Law 108–429. If the
Departments receive information from
the Bureau of Customs and Border
Protection that a producer has made
unauthorized use of any official form,
they shall cancel the affected certificate.
*
*
*
*
*
§ 303.15
[Amended]
6. Section 303.15(a) is amended by
removing ‘‘.’’ at the end of the sentence
and adding ‘‘, and Public Law 108–429,
enacted on 3 December 2004.’’ in its
place.
I 7. Section 303.16 is amended as
follows:
I A. Paragraph (a)(1) is amended by
removing ‘‘.’’ at the end of the last
sentence and adding ‘‘, and Public Law
108–429, enacted on 3 December 2004.’’
in its place.
I B. Paragraph (a)(7) is revised to read
as set forth below.
I C. Paragraph (a)(9) is revised to read
as set forth below.
I D. Paragraphs (a)(10) and (a)(11) are
redesignated as paragraphs (a)(11) and
(12) and a new paragraph (a)(10) is
added as set forth below.
I E. Newly designated paragraph (a)(12)
is amended by removing ‘‘(i.e., be
physically present for at least 183 days
per year)’’ and adding ‘‘(i.e., be
physically present for at least 183 days
within a continuous 365 day period
year)’’ in its place.
I F. Paragraph (b)(2) is revised to read
as set forth below.
I
E:\FR\FM\08NOR1.SGM
08NOR1
Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations
G. The heading of paragraph (b)(3) is
revised to read as set forth below.
I
§ 303.16
Definitions and forms.
(a) * * *
(7) Unit of Jewelry means a single
article (e.g., ring, bracelet, necklace),
pair (e.g, cufflinks), gram for links
which are sold in grams and stocked in
grams, and other subassemblies and
components in the customary unit of
measure they are stocked and sold
within the industry.
*
*
*
*
*
(9) Creditable wages and creditable
fringe benefits eligible for the duty
refund benefit include, but are not
limited to, the following:
(i) Wages up to an amount equal to 65
percent of the contribution and benefit
base for Social Security, as defined in
the Social Security Act for the year in
which wages were earned, paid to
permanent residents of the insular
possessions employed in a firm’s
manufacture of HTSUS heading 7113
articles of jewelry which are a product
of the insular possessions and have met
the Bureau of Customs and Border
Protection’s criteria for duty-free entry
into the United States, plus any wages
paid for the repair of non-insular
HTSUS heading 7113 jewelry up to an
amount equal to 50 percent of the firm’s
total creditable wages.
(A) Wages paid to persons engaged in
the day-to-day assembly operations at
the company office, wages paid to
administrative employees working on
the premises of the company office,
wages paid to security operations
employees and wages paid to servicing
and maintenance employees if these
services are integral to the assembly and
manufacturing operations and the
employees are working on the premises
of the company office.
(B) Wages paid to permanent
residents who are employees of a new
company involved in the jewelry
assembly and jewelry manufacturing of
HTSUS heading 7113 jewelry for up to
18 months after such jewelry company
commences jewelry manufacturing or
jewelry assembly operations in the
insular possessions.
(C) Wages paid when a maximum of
two producers work on a single piece of
HTSUS heading 7113 jewelry which
entered the United States free of duty
under the program. Wages paid by the
two producers will be credited
proportionally provided both producers
demonstrate to the satisfaction of the
Secretaries that they worked on the
same piece of jewelry, the jewelry
received duty-free treatment into the
customs territory of the United States,
and the producers maintained
VerDate Aug<31>2005
16:28 Nov 07, 2005
Jkt 208001
production and payroll records
sufficient for the Departments’
verification of the creditable wage
portion (see § 303.17(b)).
(D) Wages paid to persons engaged in
both creditable and non-creditable
assembly and repair operations may be
credited proportionally provided the
firm maintains production, shipping
and payroll records adequate for the
Departments’ verification of the
creditable portion.
(E) Wages paid to new permanent
residents who have met the
requirements of permanent residency in
accordance with the Departments’
regulations along with meeting all other
creditable wage requirements of the
regulations, which must be documented
and verified to the satisfaction of the
Secretaries.
(ii) The combined creditable amount
of individual health and life insurance
per year, for each full-time permanent
resident employee who works on the
premises of the company office and
whose wages qualify as creditable, may
not exceed 100 percent of the ‘‘weighted
average’’ yearly federal employee health
insurance, which is calculated from the
individual health plans weighted by the
number of individual contracts in each
plan. The yearly amount is calculated
by the Office of Personnel Management
and includes the ‘‘weighted average’’ of
all individual health insurance costs for
federal employees throughout the
United States. The maximum life
insurance allowed within this combined
amount is $50,000 for each employee.
(A) The combined creditable amount
of family health and life insurance per
year, for each full-time permanent
resident employee who works on the
premises of the company office and
whose wages qualify as creditable, may
not exceed 120 percent of the ‘‘weighted
average’’ yearly federal employee health
insurance, which is calculated from the
family health plans weighted by the
number of family contracts in each plan.
The yearly amount is calculated by the
Office of Personnel Management and
includes the ‘‘weighted average’’ of all
family health insurance costs for federal
employees throughout the United
States. The maximum life insurance
allowed within this combined amount is
$50,000 dollars for each employee.
(B) The creditable pension benefit, for
each full-time permanent resident
employee who works on the premises of
the company office and whose wages
qualify as creditable, is up to 3 percent
of the employee’s wages unless the
employee’s wages exceed the maximum
annual creditable wage allowed under
the program (see paragraph (a)(9)(i) of
this section). An employee earning more
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
67649
than the maximum creditable wage
allowed under the program will be
eligible for only 3 percent of the
maximum creditable wage.
(10) Non-creditable wages and noncreditable fringe benefits. Wages
ineligible for the duty refund benefit
include, but are not limited to, the
following:
(i) Wages over 65 percent of the
contribution and benefit base for Social
Security, as defined in the Social
Security Act for the year in which wages
were earned, paid to permanent
residents of the territories employed in
a firm’s 91/5 heading 7113, HTSUS,
jewelry program.
(A) Wages paid for the repair of
jewelry in an amount over 50 percent of
the firm’s total creditable wages.
(B) Wages paid to employees who are
involved in assembling HTSUS heading
7113 jewelry beyond 18 months after
such jewelry company commences
jewelry manufacturing or jewelry
assembly operations in the insular
possessions if the jewelry does not meet
the Bureau of Customs and Border
Protection’s substantial transformation
requirements and other criteria for dutyfree enter into the United States.
(C) Wages paid for the assembly and
manufacturing of jewelry which is
shipped to places outside the customs
territory of the United States; wages
paid for the assembly and
manufacturing of jewelry that does not
meet the regulatory assembly
requirements; or wages paid for the
assembly and manufacture of jewelry
that contain HTSUS column 2
components.
(D) Wages paid to those persons not
engaged in the day-to-day assembly
operations on the premises of the
company office, wages paid to any
outside consultants, wages paid to
outside the office personnel, including
but not limited to, lawyers, gardeners,
construction workers and accountants;
wages paid to employees not working
on the premises of the company office
and wages paid to employees who do
not qualify as permanent residents in
accordance with the Departments’
regulations.
(E) Wages paid to persons engaged in
both creditable and non-creditable
assembly and repair operations if the
producer does not maintain production,
shipping and payroll records adequate
for the Departments’ verification of the
creditable portion.
(ii) Any costs, for the year in which
the wages were paid, of the combined
creditable amount of individual health
and life insurance for employees over
100 percent of the ‘‘weighted average’’
yearly individual health insurance costs
E:\FR\FM\08NOR1.SGM
08NOR1
67650
Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations
for all federal employees. The cost of
any life insurance over the $50,000 limit
for each employee.
(A) Any costs, for the year in which
the wages were paid, of the combined
creditable amount of family health and
life insurance for employees over 120
percent of the ‘‘weighted average’’
yearly family health insurance costs for
all federal employee. The cost of any life
insurance over the $50,000 limit for
each employee.
(B) The cost of any pension benefit
per employee over 3 percent of the
employee’s creditable wages unless the
employee’s wages exceed the maximum
annual creditable annual maximum
creditable wage allowed under the
program (see paragraph (a)(9)(i) of this
section). Employees earning over the
maximum creditable wage allowed
under the program would have a
creditable annual pension benefit of up
to 3 percent of the maximum creditable
wage and wages over 3 percent of the
maximum creditable wage would not be
creditable.
*
*
*
*
*
(b) * * *
(2) ITA–360P ‘‘Certificate of
Entitlement to Secure the Refund of
Duties on Articles that Entered the
Customs Territory of The United State
Duty Paid.’’ This document authorizes
an insular jewelry producer to request
the refund of duties on imports of
articles that entered the customs
territory of the United States duty paid,
with certain exceptions, up to the
specified value of the certificate.
Certificates may be used to obtain duty
refunds only when presented with a
properly executed Form ITA–361P.
(3) ITA–361P ‘‘Request for Refund of
Duties on Articles that Entered the
Customs Territory of the United States
Duty Paid.’’ * * *
*
*
*
*
*
I 8. Section 303.17 is amended by
revising paragraph (b)(6); by
redesignating paragraphs (b)(7) and
(b)(8) as paragraphs (b)(8) and (b)(9);
and by adding a new paragraph (b)(7) to
read as follows:
§ 303.17
Annual jewelry application.
*
*
*
*
*
(b) * * *
(6) Customs, bank, payroll,
production records, and all shipping
records including the importer of record
number and proof of residency, as
requested;
(7) All records pertaining to health
insurance, life insurance and pension
benefits for each employee;
*
*
*
*
*
VerDate Aug<31>2005
16:28 Nov 07, 2005
Jkt 208001
9. Section 303.19(c)(1) is revised to
read as follows:
I
§ 303.19 Issuance and use of production
incentive certificates.
*
*
*
*
*
(C) The use and transfer of certificate
entitlements. (1) Insular producers
issued a certificate may request a refund
by executing Form ITA–361P (see
§ 303.16(b)(3)) and the instruction on
the form). After authentication by the
Department of Commerce, Form ITA–
361P may be used to obtain duty
refunds on article that entered the
customs territory of the United States
duty paid. Duties on an article which is
the product of a country with respect to
column 2 rates of duty apply may not
be refunded Articles for which duty
refunds are claimed must have entered
the customs territory of the United
States during the two-year period prior
to the issue date of the certificate or
during the one-year period the
certificate remains valid. Copies of the
appropriate Customs entries must be
provided with the refund request in
order to establish a basis for issuing the
claimed amounts. Certification
regarding drawback claims and
liquidated refunds relating to the
presented entries is required from the
claimant on the form.
*
*
*
*
*
10. In § 303.20:
A. Paragraph (a)(2) is revised;
I B. Paragraph (b)(1)(ii) is amended by
removing ‘‘450,000’’ and adding
‘‘3,533,334’’ in its place;
I C. Paragraph (b)(1)(iii) is amended by
removing ‘‘600,000’’ and adding
‘‘6,766,667’’ in its place; and
I D. Paragraph 303.20(b)(1)(iv) is
amended by removing ‘‘750,000’’ and
adding ‘‘10,000,000’’ in its place.
I
I
§ 303.20
Duty refund.
*
*
*
*
*
(a) * * *
(2) Eighteen month exemption. Any
article of jewelry provided for in HTSUS
heading 7113, assembled in the insular
possessions by a new entrant jewelry
manufacturer shall be treated as a
product of the insular possessions if
such article is entered into the customs
territory of the United States no later
than 18 months after such producer
commences jewelry manufacturing or
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
jewelry assembly operations in the
insular possessions.
*
*
*
*
*
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration, Department of Commerce.
Nikolao I. Pula,
Director for Insular Affairs, Department of
the Interior.
[FR Doc. 05–22244 Filed 11–7–05; 8:45 am]
BILLING CODE 3510–DS–P; 4310–93–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Chapter I
[Docket No. 2005N–0419]
Change of Name; Technical
Amendment
AGENCY:
Food and Drug Administration,
HHS.
Final rule; technical
amendment.
ACTION:
SUMMARY: The Food and Drug
Administration (FDA) is amending its
regulations to reflect a change in the
name for AOAC INTERNATIONAL.
This action is editorial in nature and is
intended to improve the accuracy of the
agency’s regulations.
DATES: This rule is effective November
8, 2005.
FOR FURTHER INFORMATION CONTACT:
Joyce Strong, Office of Policy and
Planning (HF–27), Food and Drug
Administration, 5600 Fishers Lane,
Rockville, MD 20857, 301–827–7010.
SUPPLEMENTARY INFORMATION: This
document amends FDA’s regulations to
reflect the name change of AOAC
INTERNATIONAL by removing the
outdated name wherever it appears and
by adding the new name in its place in
21 CFR parts 2, 10, 101, 102, 106, 114,
130, 131, 133, 135, 136, 137, 139, 145,
146, 150, 155, 156, 160, 161, 163, 164,
166, 168, 169, 172, 173, 176, 177, 178,
184, 189, 211, 226, 520, and 573.
Publication of this document
constitutes final action on these changes
under the Administrative Procedure Act
(5 U.S.C. 553). Notice and public
procedure are unnecessary because FDA
is merely correcting nonsubstantive
errors.
I Therefore, under the Federal Food,
Drug, and Cosmetic Act and under
authority delegated to the Commissioner
of Food and Drugs, 21 CFR chapter I is
amended as follows:
E:\FR\FM\08NOR1.SGM
08NOR1
]]>Agencies
[Federal Register Volume 70, Number 215 (Tuesday, November 8, 2005)]
[Rules and Regulations]
[Pages 67645-67650]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22244]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
DEPARTMENT OF THE INTERIOR
Office of Insular Affairs
15 CFR Part 303
[Docket No. 050613157-5219-02]
RIN 0625-AA68
Changes in the Insular Possessions Watch, Watch Movement and
Jewelry Programs
AGENCIES: Import Administration, International Trade Administration,
Department of Commerce; Office of Insular Affairs, Department of the
Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
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 the regulations by making technical changes required by passage
of the Miscellaneous Trade and Technical Corrections Act of 2004;
extending the duty refund benefits to include the value of usual and
customary health insurance, life insurance and pension benefits;
raising the ceiling on the amount of jewelry that qualifies for the
duty refund benefit; allowing new insular jewelry producers to assemble
jewelry and have such jewelry treated as an article of the insular
possessions for up to 18 months after the jewelry company commences
assembly operations; allowing duty refund certificate holders to secure
a duty refund on any articles that are imported into the customs
territory of the United States by the certificate holder duty paid;
providing a more comprehensive definition of ``unit;'' adjusting the
amount of watch repairs that are eligible for the duty refund;
providing compensation to insular watch producers if tariffs on watches
and watch movements are reduced; and clarifying which wages are
eligible for purposes of determining the duty refund and identifying
which records are needed for the audit.
DATES: This rule is effective December 8, 2005.
[[Page 67646]]
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 (70 FR 38828,
July 6, 2005) and is not repeated here.
Amendments
Section 1562 of Public Law 108-429 (2004) amends Public Law 97-446,
Public Law 103-465 and Public Law 106-36. The rule makes the necessary
technical changes to reflect the new authority for the insular watch
and jewelry programs. Changes are made to Authority, 15 CFR Sections
303.1(a), 303.2(a)(1), 303.12 (c)(2), 303.15(a), and 303.16(a)(1).
Pursuant to Public Law 108-429, the definition of ``creditable
wages'' is changed by amending 15 CFR 303.2(a)(13) and 15 CFR
303.16(a)(9) to include the value of usual and customary health
insurance, life insurance and pension benefits. The rule also changes
the definition of creditable wages to include the difference between
the duty rates for watches and watch movements that were in effect on
January 1, 2001 and any new lower duty rates that takes place in the
future. This provision in Public Law 108-429 is only applicable if
there were duty reductions on watches and watch movements. We further
reapportion the percentage of watch and watch movement repair wages
that are creditable towards the duty-refund. The rule raises the
percentage of repairs that are eligible for benefits in response to a
request we received which pointed out that repair work is very labor
intensive and more time consuming than regular watch assembly.
In an effort to further clarify which wages are eligible for the
duty refund, we added a new Section 303.2(a)(14); redesignated the
current Sections 303.2(a)(14) through (a)(16) as Sections 303.2(a)(15)
through (a)(17), respectively; added a new Section 303.16(a)(10); and
redesignated current Sections 303.16(a)(10) and 303.16(a)(11) as
Sections 303.16(a)(11) and Sec. 303.16(a)(12), respectively, to
further clarify which wages are not creditable. We also, as requested
by a producer, clarified the term ``year'' in current Sections
303.2(a)(16) and 303.16(a)(11) to clear up any possible confusion.
We also amended Sec. Sec. 303.2(b)(4), 303.2(b)(5), 303.12(c)(1),
303.16(b)(2), 303.16(b)(3), and 303.19(c)(1). Pursuant to Public Law
108-429, we are changing the regulations to allow the refund of duties
on any articles that are imported into the customs territory of the
United States duty paid by the certificate holder unless the articles
contain a material to which column 2 rates of duty apply.
Further, the rule amends Sections 303.20(b)(ii),(b)(iii) and
(b)(iv) by raising the ceiling on the number of duty-free units of
jewelry entering the United States each year that qualify for duty
refund benefits under the program. Pursuant to Public Law 108-429, the
rule changes the maximum number of units a year to qualify for the duty
refund benefit from 750,000 units to 10,000,000 units as long as the
limit on available program funds is not exceeded and all the units are
entered free of duty in accordance with the regulations.
Another change, pursuant to Public Law 108-429, amends Section
303.20(a)(2) to allow new program jewelry producers up to an18 month
exemption from meeting the substantial transformation requirements and
the other provisions normally required for duty-free entry into the
United States. Starting on the day the new producer commences jewelry
manufacturing or jewelry assembly, the jewelry producer has up to 18
months for any article of jewelry provided for in heading 7113, HTSUS,
that is assembled in an insular possession, to be treated as a product
of the insular possession.
The rule also amends Section 303.16(a)(7) by expanding the
definition of a ``unit'' of jewelry so that the term unit more
accurately represents the way some heading 7113, HTSUS, jewelry is sold
in the industry.
The rule further amends Sections 303.5(b)(5) and 303.17(b)(4) to
clarify that all records pertaining to shipment documents and proof of
residency, as required, must be maintained and made available for the
verification of data. The provision also adds new Sections 303.5(b)(8)
and 303.17(b)(9) which require the collection and maintenance of
information pertaining to health insurance, life insurance and pension
benefits for each employee in order that the benefit information can be
verified and the duty refunds, based on the verified data, be issued in
accordance with Public Law 108-429. Further, in accordance with Public
Law 108-429, the rule adds a new Section 303.5(b)(9) in the event that
the HTSUS tariffs on watches and watch movements are reduced.
ITA received two comments in response to the proposed rule and
request for comments. Both commenters supported all the provisions that
were proposed and as a result we are adopting the proposed regulations
in this final rule.
Administrative Law Requirements
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 this 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 is not required and has
not been prepared.
Paperwork Reduction Act. This rulemaking contains revised
collection of information requirements that have been approved by the
Office of Management and Budget (OMB) under control number 0625-0040.
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 (Attn: OMB Desk Officer), or e-mail David--
Rostker@omb.eop.gov.
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 the collection of information unless it
displays a currently valid OMB Control Number.
E.O. 12866. It has been determined that this 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:
[[Page 67647]]
PART 303--WATCHES, WATCH MOVEMENTS AND JEWELRY PROGRAMS
0
1. The authority citation for 15 CFR part 303 is revised 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; Pub. L. 108-429,
118 Stat. 2582.
Sec. 303.1 [Amended]
0
2. The first sentence of Sec. 303.1(a) is amended by removing ``and
amended by Public Law 103-465, enacted 8 December 1994.'' and adding
``amended by Public Law 103-465, enacted 8 December 1994 and amended by
Public Law 108-429 enacted 3 December 2004.'' in its place.
0
3. Section 303.2 is amended as follows:
0
A. Section 303.2(a)(1) is amended by removing ``.'' at the end of the
sentence and adding ``, Public Law 108-429, enacted on 3 December 2004,
118 Stat. 2582.'' in its place.
0
B. Section 303.2(a)(13) is revised as set forth below.
0
C. In Section 303.2, paragraphs (a)(14) through (a)(16) are
redesignated as paragraphs (a)(15) through (a)(17), and a new paragraph
(a)(14) is added as set forth below.
0
D. Newly designated paragraph (a)(17) is amended by removing ``(i.e.,
be physically present for at least 183 days per year)'' and adding
``(i.e., be physically present for at least 183 days within a
continuous 365 day period)'' in its place.
0
E. The heading and the first sentences of paragraph (b)(4) are revised
as set forth below.
0
F. Paragraph (b)(5) heading is revised as set forth below.
Sec. 303.2 Definitions and forms.
(a) * * *
(13) Creditable wages, creditable fringe benefits and creditable
duty differentials eligible for the duty refund benefit include, but
are not limited to, the following:
(i) Wages up to an amount equal to 65 percent of the contribution
and benefit base for Social Security, as defined in the Social Security
Act for the year in which wages were earned, paid to permanent
residents of the insular possessions employed in a firm's 91/5 watch
and watch movement program.
(A) Wages paid for the repair of watches up to an amount equal to
85 percent of the firm's total creditable wages.
(B) Wages paid to watch and watch movement assembly workers
involved in the complete assembly of watches and watch movements which
have entered the United States duty-free and have complied with the
laws and regulations governing the program.
(C) Wages paid to watch and watch movement assembly workers
involved in the complete assembly of watches, excluding the movement,
only in situations where the desired movement can not be purchased
unassembled and the producer has documentation establishing this.
(D) Wages paid to those persons engaged in the day-to-day assembly
operations on the premises of the company office, wages paid to
administrative employees working on the premises of the company office,
wages paid to security employees and wages paid to servicing and
maintenance employees if these services are integral to the assembly
and manufacturing operations and the employees are working on the
premises of the company office.
(E) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations may be credited
proportionally provided the firm maintains production, shipping and
payroll records adequate for the Departments' verification of the
creditable portion.
(F) Wages paid to new permanent residents who have met the
requirements of permanent residency in accordance with the Departments'
regulations, along with meeting all other creditable wage requirements
of the regulations, which must be documented and verified to the
satisfaction of the Secretaries.
(ii) The combined creditable amount of individual health and life
insurance per year, for each full-time permanent resident employee who
works on the premises of the company office and whose wages qualify as
creditable, may not exceed 100 percent of the ``weighted average''
yearly federal employee health insurance, which is calculated from the
individual health plans weighted by the number of individual contracts
in each plan. The yearly amount is calculated by the Office of
Personnel Management and includes the ``weighted average'' of all
individual health insurance costs for federal employees throughout the
United States. The maximum life insurance allowed within this combined
amount is $50,000 for each employee.
(A) The combined creditable amount of family health and life
insurance per year, for each full-time permanent resident employee who
works on the premises of the company office and whose wages qualify as
creditable, may not exceed 120 percent of the ``weighted average''
yearly federal employee health insurance, which is calculated from the
family health plans weighted by the number of family contracts in each
plan. The yearly amount is calculated by the Office of Personnel
Management and includes the ``weighted average'' of all family health
insurance costs for federal employees throughout the United States. The
maximum life insurance allowed within this combined amount is $50,000
for each employee.
(B) The creditable pension benefit, for each full-time permanent
resident employee who works on the premises of the company office and
whose wages qualify as creditable, is up to 3 percent of the employee's
wages unless the employee's wages exceed the maximum annual creditable
wage allowed under the program (see paragraph (a)(13)(i) of this
section). An employee earning more than the maximum creditable wage
allowed under the program will be eligible for only 3 percent of the
maximum creditable wage.
(iii) If tariffs on watches and watch movements are reduced, then
companies would be required to provide the annual aggregate data by
individual HTSUS watch tariff numbers for the following components
contained therein: the quantity and value of watch cases, the quantity
of movements, the quantity and value of each type of strap, bracelet or
band, and the quantity and value of batteries shipped free of duty into
the United States. If discrete watch movements are shipped free of duty
into the United States, then the annual aggregate quantity by
individual HTSUS movement tariff numbers would also be required along
with the value of each battery if it is contained within. These data
would be used to calculate the annual duty rate before each HTSUS
tariff reduction, and the annual duty rate after the HTSUS tariff
reduction. The amount of the difference would be creditable toward the
duty refund. The tariff information would only be collected and used in
the calculation of the annual duty-refund certificate and would not be
used in the calculation of the mid-year duty-refund.
(14) Non-creditable wages and non-creditable fringe benefits. Wages
ineligible for the duty refund benefit wages include, but are not
limited to, the following:
(i) Wages over 65 percent of the contribution and benefit base for
Social Security, as defined in the Social Security Act for the year in
which wages were earned, paid to permanent residents of the territories
employed in a firm's 91/5 watch and watch movement program.
[[Page 67648]]
(A) Wages paid for the repair of watches in an amount over 85
percent of the firm's total creditable wages.
(B) Wages paid for the assembly of watches and watch movements
which are shipped outside the customs territory of the United States;
wages paid for the assembly of watches and watch movements that do not
meet the regulatory assembly requirements; or wages paid for the
assembly of watches or watch movements that contain HTSUS column 2
components.
(C) Wages paid for the complete assembly of watches, excluding the
movement, when the desired movement can be purchased unassembled, if
the producer does not have adequate documentation, demonstrating to the
satisfaction of the Secretaries, that the movement could not be
purchased unassembled whether or not it is entering the United States.
(D) Wages paid to persons not engaged in the day-to-day assembly
operations on the premises of the company office; wages paid to any
outside consultants; wages paid to outside the office personnel,
including but not limited to, lawyers, gardeners, construction workers,
and accountants; wages paid to employees not working on the premises of
the company office; and wages paid to employees who do not qualify as
permanent residents in accordance with the Departments' regulations.
(E) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations if the producer does not
maintain production, shipping and payroll records adequate for the
Departments' verification of the creditable portion.
(ii) Any costs, for the year in which the wages were paid, of the
combined creditable amount of individual health and life insurance for
employees over 100 percent of the ``weighted average'' yearly
individual health insurance costs for all federal employees. The cost
of any life insurance over the $50,000 limit for each employee.
(A) Any costs, for the year in which the wages were paid, of the
combined creditable amount of family health and life insurance for
employees over 120 percent of the ``weighted average'' yearly family
health insurance costs for all federal employee. The cost of any life
insurance over the $50,000 limit for each employee.
(B) The cost of any pension benefit per employee over 3 percent of
the employee's creditable wages unless the employee's wages exceed the
maximum annual creditable annual maximum creditable wage allowed under
the program (see paragraph (a)(13)(i) of this section). Employees
earning over the maximum creditable wage allowed under the program
would have a creditable annual pension benefit of up to 3 percent of
the maximum creditable wage and wages over 3 percent of the maximum
creditable wage would not be creditable.
* * * * *
(b) * * *
(4) ITA-360P ``Certificate of Entitlement to Secure the Refund of
Duties on Articles that Entered the Customs Territory of The United
State Duty Paid.'' This document authorizes an insular watch producer
to request the refund of duties on imports of articles that entered the
customs territory of the United States duty paid, up to the specified
value of the certificate. * * *
(5) ITA-361P ``Request for Refund of Duties on Articles that
Entered the Customs Territory of the United States Duty Paid.'' * * *
* * * * *
0
4. Section 303.5(b)(5) is revised to read as set forth below and
paragraph(b)(8) and (b)(9) are added to read as set forth below.
Sec. 303.5 Application for annual allocation of duty-exemptions.
* * * * *
(b) * * *
(5) Customs, bank, payroll, production records, and all shipping
records including the importer of record number and proof of residency,
as requested;
* * * * *
(8) All records pertaining to health insurance, life insurance and
pension benefits for each employee; and
(9) If HTSUS tariffs on watches and watch movements are reduced,
records of the annual aggregate data by individual HTSUS watch tariff
numbers for the following components contained therein would be
required: the quantity and value of watch cases; the quantity of
movements; the quantity and value of each type of strap, bracelet or
band; and the quantity and value of batteries shipped free of duty into
the United States. In addition, if applicable, records of the annual
aggregate quantity of discrete watch movements shipped free of duty
into the United States by HTSUS tariff number.
* * * * *
0
5. Section 303.12(c)(1) and (c)(2) are revised to read as follows:
Sec. 303.12 Issuance and use of production incentive certificates.
* * * * *
(c) The use and transfer of certificate of entitlements. (1)
Insular producers issued a certificate may request a refund by
executing Form ITA-361P (see Sec. 303.2(b)(5) and the instructions on
the form). After authentication by the Department of Commerce, Form
ITA-361P may be used to obtain duty refunds on articles that entered
the customs territory of the United States duty paid except for any
article containing a material which is the product of a country to
which column 2 rates of duty apply. Articles for which duty refunds are
claimed must have entered the customs territory of the United States
during the two-year period prior to the issue date of the certificate
or during the one-year period the certificate remains valid. Copies of
the appropriate Customs entries must be provided with the refund
request in order to establish a basis for issuing the claimed amounts.
Certification regarding drawback claims and liquidated refunds relating
to the presented entries is required from the claimant on the form.
(2) Regulations issued by the Bureau of Customs and Border
Protection, U.S. Department of Homeland Security, govern the refund of
duties under Public Law 97-446, as amended by Public Law 103-465 and
Public Law 108-429. If the Departments receive information from the
Bureau of Customs and Border Protection that a producer has made
unauthorized use of any official form, they shall cancel the affected
certificate.
* * * * *
Sec. 303.15 [Amended]
0
6. Section 303.15(a) is amended by removing ``.'' at the end of the
sentence and adding ``, and Public Law 108-429, enacted on 3 December
2004.'' in its place.
0
7. Section 303.16 is amended as follows:
0
A. Paragraph (a)(1) is amended by removing ``.'' at the end of the last
sentence and adding ``, and Public Law 108-429, enacted on 3 December
2004.'' in its place.
0
B. Paragraph (a)(7) is revised to read as set forth below.
0
C. Paragraph (a)(9) is revised to read as set forth below.
0
D. Paragraphs (a)(10) and (a)(11) are redesignated as paragraphs
(a)(11) and (12) and a new paragraph (a)(10) is added as set forth
below.
0
E. Newly designated paragraph (a)(12) is amended by removing ``(i.e.,
be physically present for at least 183 days per year)'' and adding
``(i.e., be physically present for at least 183 days within a
continuous 365 day period year)'' in its place.
0
F. Paragraph (b)(2) is revised to read as set forth below.
[[Page 67649]]
0
G. The heading of paragraph (b)(3) is revised to read as set forth
below.
Sec. 303.16 Definitions and forms.
(a) * * *
(7) Unit of Jewelry means a single article (e.g., ring, bracelet,
necklace), pair (e.g, cufflinks), gram for links which are sold in
grams and stocked in grams, and other subassemblies and components in
the customary unit of measure they are stocked and sold within the
industry.
* * * * *
(9) Creditable wages and creditable fringe benefits eligible for
the duty refund benefit include, but are not limited to, the following:
(i) Wages up to an amount equal to 65 percent of the contribution
and benefit base for Social Security, as defined in the Social Security
Act for the year in which wages were earned, paid to permanent
residents of the insular possessions employed in a firm's manufacture
of HTSUS heading 7113 articles of jewelry which are a product of the
insular possessions and have met the Bureau of Customs and Border
Protection's criteria for duty-free entry into the United States, plus
any wages paid for the repair of non-insular HTSUS heading 7113 jewelry
up to an amount equal to 50 percent of the firm's total creditable
wages.
(A) Wages paid to persons engaged in the day-to-day assembly
operations at the company office, wages paid to administrative
employees working on the premises of the company office, wages paid to
security operations employees and wages paid to servicing and
maintenance employees if these services are integral to the assembly
and manufacturing operations and the employees are working on the
premises of the company office.
(B) Wages paid to permanent residents who are employees of a new
company involved in the jewelry assembly and jewelry manufacturing of
HTSUS heading 7113 jewelry for up to 18 months after such jewelry
company commences jewelry manufacturing or jewelry assembly operations
in the insular possessions.
(C) Wages paid when a maximum of two producers work on a single
piece of HTSUS heading 7113 jewelry which entered the United States
free of duty under the program. Wages paid by the two producers will be
credited proportionally provided both producers demonstrate to the
satisfaction of the Secretaries that they worked on the same piece of
jewelry, the jewelry received duty-free treatment into the customs
territory of the United States, and the producers maintained production
and payroll records sufficient for the Departments' verification of the
creditable wage portion (see Sec. 303.17(b)).
(D) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations may be credited
proportionally provided the firm maintains production, shipping and
payroll records adequate for the Departments' verification of the
creditable portion.
(E) Wages paid to new permanent residents who have met the
requirements of permanent residency in accordance with the Departments'
regulations along with meeting all other creditable wage requirements
of the regulations, which must be documented and verified to the
satisfaction of the Secretaries.
(ii) The combined creditable amount of individual health and life
insurance per year, for each full-time permanent resident employee who
works on the premises of the company office and whose wages qualify as
creditable, may not exceed 100 percent of the ``weighted average''
yearly federal employee health insurance, which is calculated from the
individual health plans weighted by the number of individual contracts
in each plan. The yearly amount is calculated by the Office of
Personnel Management and includes the ``weighted average'' of all
individual health insurance costs for federal employees throughout the
United States. The maximum life insurance allowed within this combined
amount is $50,000 for each employee.
(A) The combined creditable amount of family health and life
insurance per year, for each full-time permanent resident employee who
works on the premises of the company office and whose wages qualify as
creditable, may not exceed 120 percent of the ``weighted average''
yearly federal employee health insurance, which is calculated from the
family health plans weighted by the number of family contracts in each
plan. The yearly amount is calculated by the Office of Personnel
Management and includes the ``weighted average'' of all family health
insurance costs for federal employees throughout the United States. The
maximum life insurance allowed within this combined amount is $50,000
dollars for each employee.
(B) The creditable pension benefit, for each full-time permanent
resident employee who works on the premises of the company office and
whose wages qualify as creditable, is up to 3 percent of the employee's
wages unless the employee's wages exceed the maximum annual creditable
wage allowed under the program (see paragraph (a)(9)(i) of this
section). An employee earning more than the maximum creditable wage
allowed under the program will be eligible for only 3 percent of the
maximum creditable wage.
(10) Non-creditable wages and non-creditable fringe benefits. Wages
ineligible for the duty refund benefit include, but are not limited to,
the following:
(i) Wages over 65 percent of the contribution and benefit base for
Social Security, as defined in the Social Security Act for the year in
which wages were earned, paid to permanent residents of the territories
employed in a firm's 91/5 heading 7113, HTSUS, jewelry program.
(A) Wages paid for the repair of jewelry in an amount over 50
percent of the firm's total creditable wages.
(B) Wages paid to employees who are involved in assembling HTSUS
heading 7113 jewelry beyond 18 months after such jewelry company
commences jewelry manufacturing or jewelry assembly operations in the
insular possessions if the jewelry does not meet the Bureau of Customs
and Border Protection's substantial transformation requirements and
other criteria for duty-free enter into the United States.
(C) Wages paid for the assembly and manufacturing of jewelry which
is shipped to places outside the customs territory of the United
States; wages paid for the assembly and manufacturing of jewelry that
does not meet the regulatory assembly requirements; or wages paid for
the assembly and manufacture of jewelry that contain HTSUS column 2
components.
(D) Wages paid to those persons not engaged in the day-to-day
assembly operations on the premises of the company office, wages paid
to any outside consultants, wages paid to outside the office personnel,
including but not limited to, lawyers, gardeners, construction workers
and accountants; wages paid to employees not working on the premises of
the company office and wages paid to employees who do not qualify as
permanent residents in accordance with the Departments' regulations.
(E) Wages paid to persons engaged in both creditable and non-
creditable assembly and repair operations if the producer does not
maintain production, shipping and payroll records adequate for the
Departments' verification of the creditable portion.
(ii) Any costs, for the year in which the wages were paid, of the
combined creditable amount of individual health and life insurance for
employees over 100 percent of the ``weighted average'' yearly
individual health insurance costs
[[Page 67650]]
for all federal employees. The cost of any life insurance over the
$50,000 limit for each employee.
(A) Any costs, for the year in which the wages were paid, of the
combined creditable amount of family health and life insurance for
employees over 120 percent of the ``weighted average'' yearly family
health insurance costs for all federal employee. The cost of any life
insurance over the $50,000 limit for each employee.
(B) The cost of any pension benefit per employee over 3 percent of
the employee's creditable wages unless the employee's wages exceed the
maximum annual creditable annual maximum creditable wage allowed under
the program (see paragraph (a)(9)(i) of this section). Employees
earning over the maximum creditable wage allowed under the program
would have a creditable annual pension benefit of up to 3 percent of
the maximum creditable wage and wages over 3 percent of the maximum
creditable wage would not be creditable.
* * * * *
(b) * * *
(2) ITA-360P ``Certificate of Entitlement to Secure the Refund of
Duties on Articles that Entered the Customs Territory of The United
State Duty Paid.'' This document authorizes an insular jewelry producer
to request the refund of duties on imports of articles that entered the
customs territory of the United States duty paid, with certain
exceptions, up to the specified value of the certificate. Certificates
may be used to obtain duty refunds only when presented with a properly
executed Form ITA-361P.
(3) ITA-361P ``Request for Refund of Duties on Articles that
Entered the Customs Territory of the United States Duty Paid.'' * * *
* * * * *
0
8. Section 303.17 is amended by revising paragraph (b)(6); by
redesignating paragraphs (b)(7) and (b)(8) as paragraphs (b)(8) and
(b)(9); and by adding a new paragraph (b)(7) to read as follows:
Sec. 303.17 Annual jewelry application.
* * * * *
(b) * * *
(6) Customs, bank, payroll, production records, and all shipping
records including the importer of record number and proof of residency,
as requested;
(7) All records pertaining to health insurance, life insurance and
pension benefits for each employee;
* * * * *
0
9. Section 303.19(c)(1) is revised to read as follows:
Sec. 303.19 Issuance and use of production incentive certificates.
* * * * *
(C) The use and transfer of certificate entitlements. (1) Insular
producers issued a certificate may request a refund by executing Form
ITA-361P (see Sec. 303.16(b)(3)) and the instruction on the form).
After authentication by the Department of Commerce, Form ITA-361P may
be used to obtain duty refunds on article that entered the customs
territory of the United States duty paid. Duties on an article which is
the product of a country with respect to column 2 rates of duty apply
may not be refunded Articles for which duty refunds are claimed must
have entered the customs territory of the United States during the two-
year period prior to the issue date of the certificate or during the
one-year period the certificate remains valid. Copies of the
appropriate Customs entries must be provided with the refund request in
order to establish a basis for issuing the claimed amounts.
Certification regarding drawback claims and liquidated refunds relating
to the presented entries is required from the claimant on the form.
* * * * *
0
10. In Sec. 303.20:
0
A. Paragraph (a)(2) is revised;
0
B. Paragraph (b)(1)(ii) is amended by removing ``450,000'' and adding
``3,533,334'' in its place;
0
C. Paragraph (b)(1)(iii) is amended by removing ``600,000'' and adding
``6,766,667'' in its place; and
0
D. Paragraph 303.20(b)(1)(iv) is amended by removing ``750,000'' and
adding ``10,000,000'' in its place.
Sec. 303.20 Duty refund.
* * * * *
(a) * * *
(2) Eighteen month exemption. Any article of jewelry provided for
in HTSUS heading 7113, assembled in the insular possessions by a new
entrant jewelry manufacturer shall be treated as a product of the
insular possessions if such article is entered into the customs
territory of the United States no later than 18 months after such
producer commences jewelry manufacturing or jewelry assembly operations
in the insular possessions.
* * * * *
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration, Department of
Commerce.
Nikolao I. Pula,
Director for Insular Affairs, Department of the Interior.
[FR Doc. 05-22244 Filed 11-7-05; 8:45 am]
BILLING CODE 3510-DS-P; 4310-93-P
