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: 

PART 91—GENERAL OPERATING AND 

FLIGHT RULES 

■ 1. The authority citation for part 91 

continues to read as follows: 

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: 

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 

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 

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 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. 


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Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations 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 § 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 

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 

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: 

PART 303—WATCHES, WATCH 

MOVEMENTS AND JEWELRY 

PROGRAMS 

■ 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. 

§ 303.1 [Amended] 

■ 2. Section 303.1 is amended as 

follows: 

■ 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. 

■ B. Remove ‘‘Headnote 6’’ from the last 

sentence in paragraph (c) and add 

‘‘additional U.S. note 5 to chapter 91 of 


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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. 

■ 3. Section 303.2 is amended as 

follows: 

■ 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. 

■ B. Remove ‘‘watch components’’ from 

the only sentence in paragraph (a)(10) 

and add ‘‘watch movements’’ in its 

place. 

■ C. Amend paragraph (a)(13) 

introductory text by removing ‘‘wages’’

and adding ‘‘wages and associated’’ in 

its place. 

■ D. Add one new sentence at the end 

of paragraph (a)(13)(ii) introductory text 

as set forth below. 

■ E. Add one new sentence at the end 

of paragraph (a)(13)(ii)(A) as set forth 

below. 

■ F. Add one new sentence at the end 

of paragraph (a)(13)(ii)(B) as set forth 

below. 

■ G. Revise paragraph (a)(14) 

introductory text as set forth below. 

■ H. Add one new sentence at the end 

of paragraph (a)(14)(ii) introductory text 

as set forth below. 

■ I. Add one new sentence at the end of 

paragraph (a)(14)(ii)(A) as set forth 

below. 

■ J. Add one new sentence at the 

beginning of paragraph (a)(14)(ii)(B) as 

set forth below. 

■ K. Remove ‘‘United States during’’

from the second sentence of paragraph 

(b)(5) and add ‘‘United States duty paid 

during’’ in its place. 

§ 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. * * * 

* * * * * 

■ 4. Section 303.5 is amended as 

follows: 

■ A. Revise the section heading to read 

as set forth below. 

■ B. Remove ‘‘allocation shall’’ from the 

first sentence of paragraph (b) 

introductory text and add ‘‘allocation or 

duty-refund certificate shall’’ in its 

place. 

■ C. Remove ‘‘payroll, production 

records’’ from paragraph (b)(5) and add 

‘‘payroll, including time cards, 

production records’’ in its place. 

■ 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: 

■ 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. 

■ 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. 

§ 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. 

■ 7. Section 303.14 is amended as 

follows: 

■ A. Revise the section heading to read 

as set forth below. 

■ B. In paragraph (b)(3), remove ‘‘35’’

and add ‘‘300’’ in its place; and remove 

‘‘800’’ and add ‘‘3,000’’ in its place. 

■ C. Revise paragraph (c) to read as 

follows. 

§ 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). 

* * * * * 


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Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations 16715 

§ 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. 

■ 9. Section 303.16 is amended as 

follows: 

■ 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. 

■ B. Remove ‘‘two producers’’ from the 

first sentence of paragraph (a)(9)(i)(C) 

and add ‘‘two program producers’’ in its 

place. 

■ C. Add one new sentence at the end 

of paragraph (a)(9)(ii) introductory text 

as set forth below. 

■ D. Add one new sentence at the end 

of paragraph (a)(9)(ii)(A) as set forth 

below. 

■ E. Add one new sentence at the end 

of paragraph (a)(9)(ii)(B) as set forth 

below. 

■ F. Revise paragraph (a)(10) 

introductory text as set forth below. 

■ G. Add one new sentence at the end 

of paragraph (a)(10)(ii) introductory text 

as set forth below. 

■ H. Add one new sentence at the end 

of paragraph (a)(10)(ii)(A) as set forth 

below. 

■ I. Add one new sentence at the 

beginning of paragraph (a)(10)(ii)(B) as 

set forth below. 

■ 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. 

■ K. Remove ‘‘United States during’’

from the second sentence of paragraph 

(b)(3) and add ‘‘United States duty paid 

during’’ in its place. 

§ 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. * * * 

* * * * * 

■ 10. Section 303.17 is amended as 

follows: 

■ A. Revise the section heading to read 

as set forth below. 

■ B. Remove ‘‘payroll, production 

records’’ from paragraph (b)(6) and add 

‘‘payroll, including time cards, 

production records’’ in its place. 

■ 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: 

■ 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. 

■ 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 

■ 12. Section 303.20 is amended as 

follows: 

■ A. Revise the section heading to read 

as set forth below. 

■ 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 


rwilkins on PROD1PC63 with RULES
16716 Federal Register / Vol. 72, No. 65 / Thursday, April 5, 2007 / Rules and Regulations 

1Accounting 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). 

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). 

(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). 

* * * * * 

§ 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. 

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 

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. 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Final rule: notice of correction. 

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: 

Notice of Correction 

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 

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 


rwilkins on PROD1PC63 with RULES