Changes in the Insular Possessions Watch, Watch Movement and Jewelry Programs 2006, 16712-16716 [07-1578]

Download as PDF 16712 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations under Paragraph 11g of the Department of Transportation (DOT) Regulatory Policies and Procedures. It is not a significant rule within the meaning of the Executive Order and DOT’s policies and procedures. No regulatory analysis or evaluation accompanies the rule. The FAA certifies that this rule will not have a substantial impact on a substantial number of small entities as defined in the Regulatory Flexibility Act of 1980, as amended. It also will have no impact on international trade and creates no unfunded mandate for any entity. Availability of This Final Rule You can get an electronic copy using the Internet by: (1) Searching the Department of Transportation’s electronic Docket Management System (DMS) web page (http://dms.dot.gov/search); (2) Visiting the FAA’s Regulations and Policies web page at http:// www.faa.gov/regulations_policies; or (3) Accessing the Government Printing Office’s web page at http:// www.gpoaccess.gov/fr/index.html. You can also get a copy by sending a request to the Federal Aviation Administration, Office of Rulemaking, ARM–1, 800 Independence Avenue, SW., Washington, DC 20591, or by calling (202) 267–9680. Make sure to identify the docket number, notice number, or amendment number of this rulemaking. Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996, requires the FAA to comply with small entity requests for information or advice about compliance with statutes and regulations within its jurisdiction. Therefore, any small entity that has a question regarding this document may contact their local FAA official. Internet users can find additional information on SBREFA in the FAA’s Web page at http://www.faa.gov/regulations_ policies/rulemaking/sbre_act/. List of Subjects in 14 CFR Part 91 Air traffic control, Aircraft, Airmen, Airports, Aviation safety, Freight, Somalia. The Amendment For the reasons set forth above, the Federal Aviation Administration amends 14 CFR part 91 as follows: rwilkins on PROD1PC63 with RULES I PART 91—GENERAL OPERATING AND FLIGHT RULES 1. The authority citation for part 91 continues to read as follows: I VerDate Aug<31>2005 16:26 Apr 04, 2007 Jkt 211001 Authority: 49 U.S.C. 106(g), 1155, 40103, 40113, 40120, 44101, 44111, 44701, 44709, 44711, 44712, 44715, 44716, 44717, 44722, 46306, 46315, 46316, 46504, 46506–46507, 47122, 47508, 47528–47531; Articles 12 and 29 of the Convention on International Civil Aviation (61 Stat. 1180). 2. In part 91, Special Federal Aviation Regulation (SFAR) No. 107 is added to read as follows: I Special Federal Aviation Regulation No. 107—Prohibition Against Certain Flights Within the Territory and Airspace of Somalia 1. Applicability. This rule applies to the following persons: (a) All U.S. air carriers or commercial operators; (b) All persons exercising the privileges of an airman certificate issued by the FAA except such persons operating U.S.-registered aircraft for a foreign air carrier; and (c) All operators of aircraft registered in the United States except where the operator of such aircraft is a foreign air carrier. 2. Flight prohibition. Except as provided below, or in paragraphs 3 and 4 of this SFAR, no person described in paragraph 1 may conduct flight operations within the territory and airspace of Somalia below flight level (FL) 200. (a) Overflights of Somalia may be conducted above FL 200 subject to the approval of, and in accordance with the conditions established by, the appropriate authorities of Somalia. (b) Flights departing from countries adjacent to Somalia whose climb performance will not permit operation above FL 200 prior to entering Somali airspace may operate at altitudes below FL 200 within Somalia to the extent necessary to permit a climb above FL 200, subject to the approval of, and in accordance with the conditions established by, the appropriate authorities of Somalia. 3. Permitted operations. This SFAR does not prohibit persons described in section 1 from conducting flight operations within the territory and airspace below FL 200 of Somalia when such operations are authorized either by another agency of the United States Government with the approval of the FAA or by an exemption issued by the Administrator. 4. Emergency situations. In an emergency that requires immediate decision and action for the safety of the flight, the pilot in command of an aircraft may deviate from this SFAR to the extent required by that emergency. Except for U.S. air carriers and commercial operators that are subject to PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 the requirements of Title 14 CFR parts 119, 121, or 135, each person who deviates from this rule must, within 10 days of the deviation, excluding Saturdays, Sundays, and Federal holidays, submit to the nearest FAA Flight Standards District Office a complete report of the operations of the aircraft involved in the deviation, including a description of the deviation and the reasons for it. 5. Expiration. This Special Federal Aviation Regulation will remain in effect until further notice. Issued in Washington, DC on March 30, 2007. Robert A. Sturgell, Deputy Administrator. [FR Doc. 07–1709 Filed 4–3–07; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF COMMERCE International Trade Administration DEPARTMENT OF THE INTERIOR 15 CFR Part 303 [Docket No. 0612243019–7062–02] RIN: 0625–AA72 Changes in the Insular Possessions Watch, Watch Movement and Jewelry Programs 2006 Import Administration, International Trade Administration, Department of Commerce; Office of Insular Affairs, Department of the Interior. ACTION: Final rule. AGENCIES: 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 certain regulations by updating the maximum total value of watch components per watch that are eligible for duty-free entry into the United States under the insular program, further clarifying the definition of creditable and noncreditable wages and fringe benefits, providing more details about the calculation of mid-year and annual duty-refund and verification process, and making minor editorial changes. DATES: This rule is effective May 7, 2007. E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations Faye Robinson, (202) 482–3526, same address as above. 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 (72 FR 3083, January 24, 2007) and is not repeated here. rwilkins on PROD1PC63 with RULES FOR FURTHER INFORMATION CONTACT: Amendments We amend § 303.14(b)(3) by 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. The rule amends §§ 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 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, pursuant to Public Law 108–429. The rule further amends § 303.1(c) by removing the erroneous reference to ‘‘Headnote 6’’ and adding ‘‘additional U.S. note 5 to chapter 91 of the HTSUS’’ in its place. We also amend § 303.2(a)(8) to correct a minor typographical error by adding the closing parenthesis at the end of the sentence and amend § 303.2(a)(10) by changing ‘‘watch components’’ to ‘‘watch movements’’ to more accurately define the kind of component. Further, we amend §§ 303.2(a)(13), 303.2(a)(13)(ii), 303.2(a)(13)(ii)(A), 303.2(a)(13)(ii)(B), 303.2(a)(14), 303.2(a)(14)(ii), 303.2(a)(14)(ii)(A), 303.2(a)(14)(ii)(B), 303.16(a)(9), 303.16(a)(9)(ii), 303.16(a)(9)(ii)(A), 303.16(a)(9)(ii)(B), 303.16(a)(10), 303.16(a)(10)(ii), 303.16(a)(10)(ii)(A) and 303.16(a)(10)(ii)(B) to further clarify which wages, health insurance, life insurance and pension benefits are creditable in the Departments’ calculation of the duty-refund benefits and which are not. The rule also amends §§ 303.16(a)(9)(i)(C) and (a)(10)(i)(D) by 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 VerDate Aug<31>2005 16:26 Apr 04, 2007 Jkt 211001 demonstrate that they have met all the qualifications of the regulations and have records sufficient for the Departments’ 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. Further the rule amends §§ 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 rule also modifies the criteria for the calculation of the annual dutyrefund to include health insurance, life insurance and pension benefits, pursuant to Public Law 108–429 and modifies the criteria for the calculation of the mid-year duty refund. We amend the heading to § 303.5(b) to reflect that only verified data is used in the calculation of the duty-exemptions and duty-refunds. Also, we amend §§ 303.5(b)(5) and 303.17(b)(6) to clarify that the payroll information that should be available for use in the verification includes time cards for each employee. The rule amends §§ 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 Departments will not consider further data after the verification for the particular year has been completed. The rule amends §§ 303.13(b) and 303.21(b) by changing ‘‘post office address’’ to ‘‘address’’ because some producers might not have post office addresses and express mail carriers often will not deliver to a post office address. Finally, the rule amends §§ 303.2(b)(5) and 303.16(b)(3) by adding ‘‘duty paid’’ so it will be clearer that the refund of duties is specifically on items that entered into the Customs territory of the United States ‘‘duty paid’’. ITA received three comments in response to the proposed rule and request for comments. The commenters supported the provisions that were proposed and suggested no changes. As a result we are adopting the proposed regulations without change. 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 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 16713 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 does not contain revised collection of information requirements subject to review and approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995. Collection activities are currently approved by the Office of Management and Budget under control numbers 0625–0040 and 0625–0134. Not withstanding 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. For reasons set forth above, the Departments amend 15 CFR Part 303 as follows: I PART 303—WATCHES, WATCH MOVEMENTS AND JEWELRY PROGRAMS 1. The authority citation for 15 CFR Part 303 continues 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. Section 303.1 is amended as follows: I A. Remove ‘‘on watches and watch movements and parts (except discrete watch cases) imported into the customs territory of the United States.’’ from the first sentence of paragraph (c) and add ‘‘on any article imported into 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.’’ in its place. I B. Remove ‘‘Headnote 6’’ from the last sentence in paragraph (c) and add ‘‘additional U.S. note 5 to chapter 91 of I E:\FR\FM\05APR1.SGM 05APR1 16714 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations the Harmonized Tariff Schedule of the United States, HTSUS’’ in its place. I 3. Section 303.2 is amended as follows: I A. Remove ‘‘American Samoa) and the Northern Mariana Islands.’’ from the only sentence in paragraph (a)(8) and add ‘‘American Samoa and the Northern Mariana Islands).’’ in its place. I B. Remove ‘‘watch components’’ from the only sentence in paragraph (a)(10) and add ‘‘watch movements’’ in its place. I C. Amend paragraph (a)(13) introductory text by removing ‘‘wages’’ and adding ‘‘wages and associated’’ in its place. I D. Add one new sentence at the end of paragraph (a)(13)(ii) introductory text as set forth below. I E. Add one new sentence at the end of paragraph (a)(13)(ii)(A) as set forth below. I F. Add one new sentence at the end of paragraph (a)(13)(ii)(B) as set forth below. I G. Revise paragraph (a)(14) introductory text as set forth below. I H. Add one new sentence at the end of paragraph (a)(14)(ii) introductory text as set forth below. I I. Add one new sentence at the end of paragraph (a)(14)(ii)(A) as set forth below. I J. Add one new sentence at the beginning of paragraph (a)(14)(ii)(B) as set forth below. I K. Remove ‘‘United States during’’ from the second sentence of paragraph (b)(5) and add ‘‘United States duty paid during’’ in its place. rwilkins on PROD1PC63 with RULES § 303.2 Definitions and forms. (a) * * * (13) * * * (ii) * * * Only during the time employees are earning creditable wages are they entitled to health and life insurance duty refund benefits under the program. (A) * * * Only during the time employees are earning creditable wages are they entitled to health and life insurance duty refund benefits under the program. (B) * * * Only during the time employees are earning creditable wages are they entitled to pension duty refund benefits under the program. * * * * * (14) Non-creditable wages and associated non-creditable fringe benefits ineligible for the duty refund benefit include, but are not limited to, the following: * * * * * (ii) * * * Any health and life insurance costs during the time an VerDate Aug<31>2005 16:26 Apr 04, 2007 Jkt 211001 employee is not earning creditable wages. (A) * * * Any health and life insurance costs during the time an employee is not earning creditable wages. (B) Any pension benefits that were not based on associated creditable wages. * * * * * * * * I 4. Section 303.5 is amended as follows: I A. Revise the section heading to read as set forth below. I B. Remove ‘‘allocation shall’’ from the first sentence of paragraph (b) introductory text and add ‘‘allocation or duty-refund certificate shall’’ in its place. I C. Remove ‘‘payroll, production records’’ from paragraph (b)(5) and add ‘‘payroll, including time cards, production records’’ in its place. I D. Remove the last sentence of paragraph (c) and add two sentences in its place as set forth below. § 303.5 Application for annual allocations of duty-exemptions and duty-refunds. * * * * * (c) * * * It is the responsibility of each program producer to make the appropriate data available to the Departments’ officials for the calendar year for which the annual verification is being performed and no further data, from the calendar year for which the audit is being completed, will be considered for benefits at any time after the audit has been completed. In the event of discrepancies between the application and substantiating data before the audit is complete, the Secretaries shall determine which data will be used in the calculation of the duty refund and allocations. * * * * * § 303.12 [Amended] 5. Section 303.12 is amended as follows: I A. Remove ‘‘creditable wages paid during’’ from the second sentence in paragraph (a)(1) and add ‘‘creditable wages, determined from the wages as reported on the employer’s first two quarterly federal tax returns (941–SS), paid during’’ in its place. I B. Remove ‘‘duty refund will remain the same.’’ from the fifth sentence in paragraph (a)(1) and add ‘‘duty refund will be based on verified creditable wages, duty-free shipments into the customs territory of the United States, creditable health insurance, life insurance and pension benefits and the duty differential, if watch tariffs have been reduced during the calendar year.’’ in its place. I PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 § 303.13 [Amended] 6. Section 303.13 is amended by removing ‘‘post office address’’ from the first sentence of paragraph (b) introductory text and adding ‘‘address’’ in its place. I 7. Section 303.14 is amended as follows: I A. Revise the section heading to read as set forth below. I B. In paragraph (b)(3), remove ‘‘35’’ and add ‘‘300’’ in its place; and remove ‘‘800’’ and add ‘‘3,000’’ in its place. I C. Revise paragraph (c) to read as follows. I § 303.14 Allocation factors, duty refund calculations and miscellaneous provisions. * * * * * (c) Calculation of the value of the mid-year production incentive certificates. (1) The value of each producer’s certificate shall equal the producer’s average creditable wage per unit shipped during the first six months of the calendar year multiplied by the sum of: (i) The number of units shipped up to 300,000 units times a factor of 90%; plus (ii) Incremental units shipped up to 450,000 units times a factor of 85%; plus (iii) Incremental units shipped up to 600,000 units times a factor of 80%; plus (iv) Incremental units shipped up to 750,000 units times a factor of 75%. (2) Calculation of the value of the annual production incentive certificates. The value of each producer’s certificate shall equal the producer’s average creditable benefit per unit based on creditable wages, health insurance, life insurance and pension benefits plus any duty differential, if applicable, averaged from the amount of duty free units shipped during the calendar year multiplied by the sum of the following to obtain the total verified amount of the annual duty-refund per company. This amount would then be adjusted by deducting the amount of the mid-year duty-refund already issued. (i) The number of units shipped up to 300,000 units times a factor of 90%; plus (ii) Incremental units shipped up to 450,000 units times a factor of 85%; plus (iii) Incremental units shipped up to 600,000 units times a factor of 80%; plus (iv) Incremental units shipped up to 750,000 units times a factor of 75%. (3) The Departments may make adjustments for these data in the manner set forth in § 303.5(c). * * * * * E:\FR\FM\05APR1.SGM 05APR1 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations § 303.15 [Amended] 8. Section 303.15 is amended by removing ‘‘on watches and watch movements and parts (except discrete watch cases) imported into the customs territory of the United States.’’ from the first sentence of paragraph (b) and adding ‘‘on any article imported into 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.’’ in its place. I 9. Section 303.16 is amended as follows: I A. Amend paragraph (a)(9) introductory text by removing ‘‘wages and creditable fringe benefits’’ and adding ‘‘wages and associated creditable fringe benefits and creditable duty differentials’’ in its place. I B. Remove ‘‘two producers’’ from the first sentence of paragraph (a)(9)(i)(C) and add ‘‘two program producers’’ in its place. I C. Add one new sentence at the end of paragraph (a)(9)(ii) introductory text as set forth below. I D. Add one new sentence at the end of paragraph (a)(9)(ii)(A) as set forth below. I E. Add one new sentence at the end of paragraph (a)(9)(ii)(B) as set forth below. I F. Revise paragraph (a)(10) introductory text as set forth below. I G. Add one new sentence at the end of paragraph (a)(10)(ii) introductory text as set forth below. I H. Add one new sentence at the end of paragraph (a)(10)(ii)(A) as set forth below. I I. Add one new sentence at the beginning of paragraph (a)(10)(ii)(B) as set forth below. I J. Remove ‘‘working on the premises of the company office and’’ from the first sentence of paragraph (a)(10)(i)(D) and add ‘‘working on the premises of the company office; wages paid to employees working with a non-program producer to create a single piece of HTSUS heading 7113 jewelry whether or not it entered the United States free of duty; and’’ in its place. I K. Remove ‘‘United States during’’ from the second sentence of paragraph (b)(3) and add ‘‘United States duty paid during’’ in its place. I rwilkins on PROD1PC63 with RULES § 303.16 Definitions and forms. (a) * * * (9) * * * (ii) * * * Only during the time employees are earning creditable wages are they entitled to health and life insurance duty refund benefits under the program. VerDate Aug<31>2005 16:26 Apr 04, 2007 Jkt 211001 (A) * * * Only during the time employees are earning creditable wages are they entitled to health and life insurance duty refund benefits under the program. (B) * * * Only during the time employees are earning creditable wages are they entitled to pension duty refund benefits under the program. * * * * * (10) Non-creditable wages and associated non-creditable fringe benefits ineligible for the duty refund benefit include, but are not limited to, the following: * * * * * (ii) * * * Any health and life insurance costs during the time an employee is not earning creditable wages. (A) * * * Any health and life insurance costs during the time an employee is not earning creditable wages. (B) Any pension benefits that were not based on associated creditable wages. * * * * * * * * I 10. Section 303.17 is amended as follows: I A. Revise the section heading to read as set forth below. I B. Remove ‘‘payroll, production records’’ from paragraph (b)(6) and add ‘‘payroll, including time cards, production records’’ in its place. I D. Remove the last sentence of paragraph (c) and add two sentences in its place as set forth below. § 303.17 Application for annual dutyrefunds. * * * * * (c) * * * It is the responsibility of each program producer to make the appropriate data available to the Departments’ officials for the calendar year for which the annual verification is being performed and no further data, from the calendar year for which the audit is being completed, will be considered for benefits at any time after the audit has been completed. In the event of discrepancies between the application and substantiating data before the audit is complete, the Secretaries shall determine which data will be used in the calculation of the duty refund and allocations. * * * * * § 303.19 [Amended] 11. Section 303.19 is amended as follows: I A. Remove ‘‘creditable wages paid during’’ from the second sentence in paragraph (a)(1) and add ‘‘creditable wages, determined from the wages as I PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 16715 reported on the employer’s first two quarterly federal tax returns (941–SS), paid during’’ in its place. I B. Remove ‘‘duty refund will remain the same.’’ from the fifth sentence in paragraph (a)(1) and add ‘‘duty refund will be based on verified creditable wages, duty-free shipments into the customs territory of the United States, creditable health insurance, life insurance and pension benefits and the duty differential, if watch tariffs have been reduced during the calendar year.’’ in its place I 12. Section 303.20 is amended as follows: I A. Revise the section heading to read as set forth below. I B. Revise paragraph (b) to read as follows. § 303.20 Duty refund calculations and miscellaneous provisions. * * * * * (b) Calculation of the value of the mid-year production incentive certificates. (1) The value of each producer’s certificate shall equal the producer’s average creditable wage per unit shipped during the first six months of the calendar year multiplied by the sum of: (i) The number of units shipped up to 300,000 units times a factor of 90%; plus (ii) Incremental units shipped up to 450,000 units times a factor of 85%; plus (iii) Incremental units shipped up to 600,000 units times a factor of 80%; plus (iv) Incremental units shipped up to 750,000 units times a factor of 75%. (2) Calculation of the value of the annual production incentive certificates. The value of each producer’s certificate shall equal the producer’s average creditable benefit per unit based on creditable wages, health insurance, life insurance and pension benefits plus any duty differential, if applicable, averaged from the amount of duty free units shipped during the calendar year multiplied by the sum of the following to obtain the total verified amount of the annual duty-refund per company. This amount would then be adjusted by deducting the amount of the mid-year duty-refund already issued. (i) The number of units shipped up to 300,000 units times a factor of 90%; plus (ii) Incremental units shipped up to 450,000 units times a factor of 85%; plus (iii) Incremental units shipped up to 600,000 units times a factor of 80%; plus E:\FR\FM\05APR1.SGM 05APR1 16716 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations (iv) Incremental units shipped up to 750,000 units times a factor of 75%. (3) The Departments may make adjustments for these data in the manner set forth in § 303.17(c). * * * * * ACTION: Final rule: notice of correction. Dated: March 26, 2007. David Spooner, Assistant Secretary for Import Administration, Department of Commerce. Dated: March 22, 2007. Edgar Johnson, Acting Director for Insular Affairs, Department of the Interior. [FR Doc. 07–1578 Filed 4–4–07; 8:45 am] SUMMARY: On December 16, 2005, the Commission issued a Final Rule amending the accounting and financial reporting requirements for public utilities. The Commission is issuing a notice correcting certain plant-related line references in one of its schedules for FERC Form No. 1 and correcting the quarterly and annual designations for three other schedules that were all included in Appendix B of the order. DATES: Effective March 30, 2007. FOR FURTHER INFORMATION CONTACT: John Okrak (Technical Information), Division of Financial Regulation, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–8280. SUPPLEMENTARY INFORMATION: BILLING CODE 3510–DS–P and 4310–93–P Notice of Correction § 303.21 [Amended] 13. Section 303.21 is amended by removing ‘‘post office address’’ from the first sentence of paragraph (b) and adding ‘‘address’’ in its place. I DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 101 [Docket No. RM04–12–000] Accounting and Financial Reporting for Public Utilities Including RTOs; Correction March 30, 2007. Federal Energy Regulatory Commission, DOE. rwilkins on PROD1PC63 with RULES AGENCY: VerDate Aug<31>2005 16:26 Apr 04, 2007 Jkt 211001 included in Appendix B to the order. Additionally, pages 231, 331, and 400a were inadvertently designated as annual reporting schedules in Appendix B, instead of their proper designation as both quarterly and annual reporting schedules. This notice of correction corrects page 206 of the FERC Form No. 1 to include those general plant-related line references inadvertently omitted from the revised schedule.2 Additionally, pages 231, 331, and 400a are revised to properly designate them as both quarterly and annual reporting schedules. The corrected pages 206, 231, 331 and 400a are attached to this notice of correction as Appendix A. Philis J. Posey, Deputy Secretary. BILLING CODE 6717–01–P On December 16, 2005, the Commission issued Order No. 668,1 amending the accounting and financial reporting requirements for public utilities. Certain general plant-related line references included on page 206 of the FERC Form No. 1 that were not revised by Order No. 668 were inadvertently deleted from the revised Electric Plant In Service schedule 1 Accounting and Financial Reporting for Public Utilities Including RTOs, Order No. 668, FERC Stats. & Regs. ¶ 31,199 (2005) 113 FERC ¶ 61,276, reh’g denied, Order No. 668–A, FERC Stats. & Regs. ¶ 31,215 (2006), reh’g denied, 115 FERC ¶ 61,080 (2006), 70 FR 77627 (December 30, 2005). PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 2 Lines inadvertently omitted were line 95, (398) Miscellaneous Equipment; line 96, Subtotal (Enter Total of lines 86 thru 95); line 97, (399) Other Tangible Property; line 98, (399.1) Asset Retirement Costs for General Plant and line 99, Total General Plant (Enter Total of lines 96, 97 and 98). E:\FR\FM\05APR1.SGM 05APR1

Agencies

[Federal Register Volume 72, Number 65 (Thursday, April 5, 2007)]
[Rules and Regulations]
[Pages 16712-16716]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-1578]


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DEPARTMENT OF COMMERCE

International Trade Administration

DEPARTMENT OF THE INTERIOR

15 CFR Part 303

[Docket No. 0612243019-7062-02]
RIN: 0625-AA72


Changes in the Insular Possessions Watch, Watch Movement and 
Jewelry Programs 2006

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 certain regulations by updating the maximum total value of watch 
components per watch that are eligible for duty-free entry into the 
United States under the insular program, further clarifying the 
definition of creditable and non-creditable wages and fringe benefits, 
providing more details about the calculation of mid-year and annual 
duty-refund and verification process, and making minor editorial 
changes.

DATES: This rule is effective May 7, 2007.

[[Page 16713]]


FOR FURTHER INFORMATION CONTACT: Faye Robinson, (202) 482-3526, same 
address as above.

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 (72 FR 3083, 
January 24, 2007) and is not repeated here.

Amendments

    We amend Sec.  303.14(b)(3) by 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.
    The rule amends Sec. Sec.  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 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, pursuant to Public Law 108-429. The rule further 
amends Sec.  303.1(c) by removing the erroneous reference to ``Headnote 
6'' and adding ``additional U.S. note 5 to chapter 91 of the HTSUS'' in 
its place.
    We also amend Sec.  303.2(a)(8) to correct a minor typographical 
error by adding the closing parenthesis at the end of the sentence and 
amend Sec.  303.2(a)(10) by changing ``watch components'' to ``watch 
movements'' to more accurately define the kind of component.
    Further, we amend Sec. Sec.  303.2(a)(13), 303.2(a)(13)(ii), 
303.2(a)(13)(ii)(A), 303.2(a)(13)(ii)(B), 303.2(a)(14), 
303.2(a)(14)(ii), 303.2(a)(14)(ii)(A), 303.2(a)(14)(ii)(B), 
303.16(a)(9), 303.16(a)(9)(ii), 303.16(a)(9)(ii)(A), 
303.16(a)(9)(ii)(B), 303.16(a)(10), 303.16(a)(10)(ii), 
303.16(a)(10)(ii)(A) and 303.16(a)(10)(ii)(B) to further clarify which 
wages, health insurance, life insurance and pension benefits are 
creditable in the Departments' calculation of the duty-refund benefits 
and which are not.
    The rule also amends Sec. Sec.  303.16(a)(9)(i)(C) and 
(a)(10)(i)(D) by 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 Departments' 
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.
    Further the rule amends Sec. Sec.  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 
rule also modifies the criteria for the calculation of the annual duty-
refund to include health insurance, life insurance and pension 
benefits, pursuant to Public Law 108-429 and modifies the criteria for 
the calculation of the mid-year duty refund.
    We amend the heading to Sec.  303.5(b) to reflect that only 
verified data is used in the calculation of the duty-exemptions and 
duty-refunds. Also, we amend Sec. Sec.  303.5(b)(5) and 303.17(b)(6) to 
clarify that the payroll information that should be available for use 
in the verification includes time cards for each employee. The rule 
amends Sec. Sec.  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 
Departments will not consider further data after the verification for 
the particular year has been completed.
    The rule amends Sec. Sec.  303.13(b) and 303.21(b) by changing 
``post office address'' to ``address'' because some producers might not 
have post office addresses and express mail carriers often will not 
deliver to a post office address.
    Finally, the rule amends Sec. Sec.  303.2(b)(5) and 303.16(b)(3) by 
adding ``duty paid'' so it will be clearer that the refund of duties is 
specifically on items that entered into the Customs territory of the 
United States ``duty paid''.
    ITA received three comments in response to the proposed rule and 
request for comments. The commenters supported the provisions that were 
proposed and suggested no changes. As a result we are adopting the 
proposed regulations without change.

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 does not contain revised 
collection of information requirements subject to review and approval 
by the Office of Management and Budget (OMB) under the Paperwork 
Reduction Act of 1995. Collection activities are currently approved by 
the Office of Management and Budget under control numbers 0625-0040 and 
0625-0134.
    Not withstanding 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 PROGRAMS

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; Pub. L. 108-429, 
118 Stat. 2582.


Sec.  303.1  [Amended]

0
2. Section 303.1 is amended as follows:
0
A. Remove ``on watches and watch movements and parts (except discrete 
watch cases) imported into the customs territory of the United 
States.'' from the first sentence of paragraph (c) and add ``on any 
article imported into 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.'' in its place.
0
B. Remove ``Headnote 6'' from the last sentence in paragraph (c) and 
add ``additional U.S. note 5 to chapter 91 of

[[Page 16714]]

the Harmonized Tariff Schedule of the United States, HTSUS'' in its 
place.

0
3. Section 303.2 is amended as follows:
0
A. Remove ``American Samoa) and the Northern Mariana Islands.'' from 
the only sentence in paragraph (a)(8) and add ``American Samoa and the 
Northern Mariana Islands).'' in its place.
0
B. Remove ``watch components'' from the only sentence in paragraph 
(a)(10) and add ``watch movements'' in its place.
0
C. Amend paragraph (a)(13) introductory text by removing ``wages'' and 
adding ``wages and associated'' in its place.
0
D. Add one new sentence at the end of paragraph (a)(13)(ii) 
introductory text as set forth below.
0
E. Add one new sentence at the end of paragraph (a)(13)(ii)(A) as set 
forth below.
0
F. Add one new sentence at the end of paragraph (a)(13)(ii)(B) as set 
forth below.
0
G. Revise paragraph (a)(14) introductory text as set forth below.
0
H. Add one new sentence at the end of paragraph (a)(14)(ii) 
introductory text as set forth below.
0
I. Add one new sentence at the end of paragraph (a)(14)(ii)(A) as set 
forth below.
0
J. Add one new sentence at the beginning of paragraph (a)(14)(ii)(B) as 
set forth below.
0
K. Remove ``United States during'' from the second sentence of 
paragraph (b)(5) and add ``United States duty paid during'' in its 
place.


Sec.  303.2  Definitions and forms.

    (a) * * *
    (13) * * *
    (ii) * * * Only during the time employees are earning creditable 
wages are they entitled to health and life insurance duty refund 
benefits under the program.
    (A) * * * Only during the time employees are earning creditable 
wages are they entitled to health and life insurance duty refund 
benefits under the program.
    (B) * * * Only during the time employees are earning creditable 
wages are they entitled to pension duty refund benefits under the 
program.
* * * * *
    (14) Non-creditable wages and associated non-creditable fringe 
benefits ineligible for the duty refund benefit include, but are not 
limited to, the following:
* * * * *
    (ii) * * * Any health and life insurance costs during the time an 
employee is not earning creditable wages.
    (A) * * * Any health and life insurance costs during the time an 
employee is not earning creditable wages.
    (B) Any pension benefits that were not based on associated 
creditable wages. * * *
* * * * *

0
4. Section 303.5 is amended as follows:
0
A. Revise the section heading to read as set forth below.
0
B. Remove ``allocation shall'' from the first sentence of paragraph (b) 
introductory text and add ``allocation or duty-refund certificate 
shall'' in its place.
0
C. Remove ``payroll, production records'' from paragraph (b)(5) and add 
``payroll, including time cards, production records'' in its place.
0
D. Remove the last sentence of paragraph (c) and add two sentences in 
its place as set forth below.


Sec.  303.5  Application for annual allocations of duty-exemptions and 
duty-refunds.

* * * * *
    (c) * * * It is the responsibility of each program producer to make 
the appropriate data available to the Departments' officials for the 
calendar year for which the annual verification is being performed and 
no further data, from the calendar year for which the audit is being 
completed, will be considered for benefits at any time after the audit 
has been completed. In the event of discrepancies between the 
application and substantiating data before the audit is complete, the 
Secretaries shall determine which data will be used in the calculation 
of the duty refund and allocations.
* * * * *


Sec.  303.12  [Amended]

0
5. Section 303.12 is amended as follows:
0
A. Remove ``creditable wages paid during'' from the second sentence in 
paragraph (a)(1) and add ``creditable wages, determined from the wages 
as reported on the employer's first two quarterly federal tax returns 
(941-SS), paid during'' in its place.
0
B. Remove ``duty refund will remain the same.'' from the fifth sentence 
in paragraph (a)(1) and add ``duty refund will be based on verified 
creditable wages, duty-free shipments into the customs territory of the 
United States, creditable health insurance, life insurance and pension 
benefits and the duty differential, if watch tariffs have been reduced 
during the calendar year.'' in its place.


Sec.  303.13  [Amended]

0
6. Section 303.13 is amended by removing ``post office address'' from 
the first sentence of paragraph (b) introductory text and adding 
``address'' in its place.

0
7. Section 303.14 is amended as follows:
0
A. Revise the section heading to read as set forth below.
0
B. In paragraph (b)(3), remove ``35'' and add ``300'' in its place; and 
remove ``800'' and add ``3,000'' in its place.
0
C. Revise paragraph (c) to read as follows.


Sec.  303.14  Allocation factors, duty refund calculations and 
miscellaneous provisions.

* * * * *
    (c) Calculation of the value of the mid-year production incentive 
certificates. (1) The value of each producer's certificate shall equal 
the producer's average creditable wage per unit shipped during the 
first six months of the calendar year multiplied by the sum of:
    (i) The number of units shipped up to 300,000 units times a factor 
of 90%; plus
    (ii) Incremental units shipped up to 450,000 units times a factor 
of 85%; plus
    (iii) Incremental units shipped up to 600,000 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 750,000 units times a factor 
of 75%.
    (2) Calculation of the value of the annual production incentive 
certificates. The value of each producer's certificate shall equal the 
producer's average creditable benefit per unit based on creditable 
wages, health insurance, life insurance and pension benefits plus any 
duty differential, if applicable, averaged from the amount of duty free 
units shipped during the calendar year multiplied by the sum of the 
following to obtain the total verified amount of the annual duty-refund 
per company. This amount would then be adjusted by deducting the amount 
of the mid-year duty-refund already issued.
    (i) The number of units shipped up to 300,000 units times a factor 
of 90%; plus
    (ii) Incremental units shipped up to 450,000 units times a factor 
of 85%; plus
    (iii) Incremental units shipped up to 600,000 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 750,000 units times a factor 
of 75%.
    (3) The Departments may make adjustments for these data in the 
manner set forth in Sec.  303.5(c).
* * * * *

[[Page 16715]]

Sec.  303.15  [Amended]

0
8. Section 303.15 is amended by removing ``on watches and watch 
movements and parts (except discrete watch cases) imported into the 
customs territory of the United States.'' from the first sentence of 
paragraph (b) and adding ``on any article imported into 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.'' in its place.

0
9. Section 303.16 is amended as follows:
0
A. Amend paragraph (a)(9) introductory text by removing ``wages and 
creditable fringe benefits'' and adding ``wages and associated 
creditable fringe benefits and creditable duty differentials'' in its 
place.
0
B. Remove ``two producers'' from the first sentence of paragraph 
(a)(9)(i)(C) and add ``two program producers'' in its place.
0
C. Add one new sentence at the end of paragraph (a)(9)(ii) introductory 
text as set forth below.
0
D. Add one new sentence at the end of paragraph (a)(9)(ii)(A) as set 
forth below.
0
E. Add one new sentence at the end of paragraph (a)(9)(ii)(B) as set 
forth below.
0
F. Revise paragraph (a)(10) introductory text as set forth below.
0
G. Add one new sentence at the end of paragraph (a)(10)(ii) 
introductory text as set forth below.
0
H. Add one new sentence at the end of paragraph (a)(10)(ii)(A) as set 
forth below.
0
I. Add one new sentence at the beginning of paragraph (a)(10)(ii)(B) as 
set forth below.
0
J. Remove ``working on the premises of the company office and'' from 
the first sentence of paragraph (a)(10)(i)(D) and add ``working on the 
premises of the company office; wages paid to employees working with a 
non-program producer to create a single piece of HTSUS heading 7113 
jewelry whether or not it entered the United States free of duty; and'' 
in its place.
0
K. Remove ``United States during'' from the second sentence of 
paragraph (b)(3) and add ``United States duty paid during'' in its 
place.


Sec.  303.16  Definitions and forms.

    (a) * * *
    (9) * * *
    (ii) * * * Only during the time employees are earning creditable 
wages are they entitled to health and life insurance duty refund 
benefits under the program.
    (A) * * * Only during the time employees are earning creditable 
wages are they entitled to health and life insurance duty refund 
benefits under the program.
    (B) * * * Only during the time employees are earning creditable 
wages are they entitled to pension duty refund benefits under the 
program.
* * * * *
    (10) Non-creditable wages and associated non-creditable fringe 
benefits ineligible for the duty refund benefit include, but are not 
limited to, the following:
* * * * *
    (ii) * * * Any health and life insurance costs during the time an 
employee is not earning creditable wages.
    (A) * * * Any health and life insurance costs during the time an 
employee is not earning creditable wages.
    (B) Any pension benefits that were not based on associated 
creditable wages. * * *
* * * * *

0
10. Section 303.17 is amended as follows:
0
A. Revise the section heading to read as set forth below.
0
B. Remove ``payroll, production records'' from paragraph (b)(6) and add 
``payroll, including time cards, production records'' in its place.
0
D. Remove the last sentence of paragraph (c) and add two sentences in 
its place as set forth below.


Sec.  303.17  Application for annual duty-refunds.

* * * * *
    (c) * * * It is the responsibility of each program producer to make 
the appropriate data available to the Departments' officials for the 
calendar year for which the annual verification is being performed and 
no further data, from the calendar year for which the audit is being 
completed, will be considered for benefits at any time after the audit 
has been completed. In the event of discrepancies between the 
application and substantiating data before the audit is complete, the 
Secretaries shall determine which data will be used in the calculation 
of the duty refund and allocations.
* * * * *


Sec.  303.19  [Amended]

0
11. Section 303.19 is amended as follows:
0
A. Remove ``creditable wages paid during'' from the second sentence in 
paragraph (a)(1) and add ``creditable wages, determined from the wages 
as reported on the employer's first two quarterly federal tax returns 
(941-SS), paid during'' in its place.
0
B. Remove ``duty refund will remain the same.'' from the fifth sentence 
in paragraph (a)(1) and add ``duty refund will be based on verified 
creditable wages, duty-free shipments into the customs territory of the 
United States, creditable health insurance, life insurance and pension 
benefits and the duty differential, if watch tariffs have been reduced 
during the calendar year.'' in its place

0
12. Section 303.20 is amended as follows:
0
A. Revise the section heading to read as set forth below.
0
B. Revise paragraph (b) to read as follows.


Sec.  303.20  Duty refund calculations and miscellaneous provisions.

* * * * *
    (b) Calculation of the value of the mid-year production incentive 
certificates. (1) The value of each producer's certificate shall equal 
the producer's average creditable wage per unit shipped during the 
first six months of the calendar year multiplied by the sum of:
    (i) The number of units shipped up to 300,000 units times a factor 
of 90%; plus
    (ii) Incremental units shipped up to 450,000 units times a factor 
of 85%; plus
    (iii) Incremental units shipped up to 600,000 units times a factor 
of 80%; plus
    (iv) Incremental units shipped up to 750,000 units times a factor 
of 75%.
    (2) Calculation of the value of the annual production incentive 
certificates. The value of each producer's certificate shall equal the 
producer's average creditable benefit per unit based on creditable 
wages, health insurance, life insurance and pension benefits plus any 
duty differential, if applicable, averaged from the amount of duty free 
units shipped during the calendar year multiplied by the sum of the 
following to obtain the total verified amount of the annual duty-refund 
per company. This amount would then be adjusted by deducting the amount 
of the mid-year duty-refund already issued.
    (i) The number of units shipped up to 300,000 units times a factor 
of 90%; plus
    (ii) Incremental units shipped up to 450,000 units times a factor 
of 85%; plus
    (iii) Incremental units shipped up to 600,000 units times a factor 
of 80%; plus

[[Page 16716]]

    (iv) Incremental units shipped up to 750,000 units times a factor 
of 75%.
    (3) The Departments may make adjustments for these data in the 
manner set forth in Sec.  303.17(c).
* * * * *


Sec.  303.21  [Amended]

0
13. Section 303.21 is amended by removing ``post office address'' from 
the first sentence of paragraph (b) and adding ``address'' in its 
place.

    Dated: March 26, 2007.
David Spooner,
Assistant Secretary for Import Administration, Department of Commerce.
    Dated: March 22, 2007.
Edgar Johnson,
Acting Director for Insular Affairs, Department of the Interior.
[FR Doc. 07-1578 Filed 4-4-07; 8:45 am]
BILLING CODE 3510-DS-P and 4310-93-P