Federal Register / Vol. 65, No. 4 / Thursday, January 6, 2000 / Proposed Rules 731

DEPARTMENT OF COMMERCE

International Trade Administration

DEPARTMENT OF THE INTERIOR

Office of Insular Affairs

15 CFR Part 303

[Docket No. 991228350–9350–01]

RIN 0625–AA55

Proposed Changes in Watch, Watch

Movement and Jewelry Program for

the U.S. Insular Possessions

AGENCIES: Import Administration,

International Trade Administration,

Department of Commerce; Office of

Insular Affairs, Department of the

Interior.

ACTION: Notice of proposed rulemaking

and request for comments.

SUMMARY: The Departments invite

public comment on a proposal to amend

the regulations governing dutyexemption allocations for watch

producers and duty-refund benefits for

watch and jewelry producers in the

United States insular possessions (the

U.S. Virgin Islands, Guam, American

Samoa and the Commonwealth of the

Northern Mariana Islands (‘‘CNMI’’).

The proposal would amend Subpart A

of Title 15 CFR Part 303 by establishing

the total quantity and respective

territorial shares of insular watches and

watch movements which would be

allowed to enter the United States free

of duty during calendar year 2000 and

by clarifying the definition of a new

firm for watches. The proposal would

also amend Subparts A and B of 15 CFR

303 by establishing a permanent

formula for the creditable wage ceiling.

DATES: Written comments must be

received on or before February 7, 2000.

ADDRESSES: Address written comments

to Faye Robinson, Program Manager,

Statutory Import Programs Staff, Room

4211, U.S. Department of Commerce,

Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT: Faye

Robinson, (202) 482–3526, same address

as above.

SUPPLEMENTARY INFORMATION: The

insular possessions watch industry

provision in Sec. 110 of Pub. L. No. 97–

446 (96 Stat. 2331) (1983), as amended

by Sec. 602 of Pub. L. No. 103–465 (108

Stat. 4991) (1994); additional U.S. Note

5 to chapter 91 of the Harmonized Tariff

Schedule of the United States

(‘‘HTSUS’’), as amended by Pub. L. 94–

241 (90 Stat 263) (1976) requires the

Secretary of Commerce and the

Secretary of the Interior, acting jointly,

to establish a limit on the quantity of

watches and watch movements which

may be entered free of duty during each

calendar year. The law also requires the

Secretaries to establish the shares of

watches and watch movements which

may be entered from the Virgin Islands,

Guam, American Samoa and the CNMI.

Regulations on the establishment of

these quantities and shares are

contained in Sec. 303.3 and 303.4 of

Title 15, Code of Federal Regulations

(15 CFR 303.3 and 303.4). The

Departments propose amending Sec.

303.14(e) to establish for calendar year

2000 a total quantity of 3,366,000 units

and respective territorial shares as

shown in the following table:

Virgin Islands ..................................... 1,866,000

Guam ................................................... 500,000

American Samoa ................................ 500,000

CNMI ................................................... 500,000

Compared to the total quantity

established for 1999 (63 FR 49666;

September 17, 1998), this amount would

be a decrease of 374,000 units. The

proposed Virgin Islands territorial share

would be reduced by 374,000 units and

the shares for Guam, American Samoa

and the CNMI would not change. The

amount we propose for the Virgin

Islands is more than sufficient for the

anticipated needs of all the existing

producers.

The enactment of Pub. L. 106–36

amended additional U.S. notes to

chapter 71 of the Harmonized Tariff

Schedule of the United States to provide

a duty-refund benefit for any article of

jewelry within heading 7113 which is a

product of the Virgin Islands, Guam,

American Samoa or the CNMI in

accordance with the new provisions of

the note in chapter 71 and additional

U.S. note 5 to chapter 91. The

Departments published a final rule on

December 1, 1999 (64 FR 67149) which

amended the regulations by changing

Title 15 CFR Part 303 to include jewelry

and creating a Subpart A for the insular

watch and watch movement regulations

and a Subpart B for the new regulations

pertaining to jewelry duty-refund

benefits authorized by Pub. L. 106–36.

When we requested comments on the

proposed jewelry regulations, we

received a comment regarding the

requirement that a new firm be

‘‘completely separate from and not

associated with, by way of ownership or

control’’ with other jewelry program

participants in the territory. In the final

jewelry rule, we revised the language

using new terminology borrowed from

existing fair trade law to clarify the

language. To ensure consistency and

clarity, we propose amending Sec.

303.2(a)(5) to include the new

terminology in Subpart A as well.

We also propose establishing a

permanent formula for the creditable

wage ceiling for watches and jewelry by

amending Sec. 303.2(a)(13), Sec.

303.14(a)(1)(i) and Sec. 303.16(a)(9),

respectively. The creditable wage

ceiling is used in the calculation of the

value of the production incentive

certificate (duty refund). We propose

establishing an annual wage ceiling up

to an amount equal to 65% of the

contribution and benefit base for Social

Security as defined in Sec. 230(c) of the

Social Security Act, as amended (42

U.S.C. 430). Until 1976, the

Departments credited wages up to the

contribution and benefit base for Social

Security. In that year, the Departments

adopted an independent ceiling lower

than the contribution and benefit base

in order to increase the incentive for the

employment and training of territorial

residents in skilled jobs. (see 40 FR

54274 (1975)) Since 1983, the

Departments have revised the ceiling

upwards several times to keep pace with

inflation. We now believe that

establishing a new ceiling in the form of

a fixed percentage of the contribution

and benefit base for Social Security

would serve the public interest. It

would assist producers in better

planning expenditures and calculating

potential profits and benefits. This

change would also eliminate the need

for periodic rulemaking to adjust the

ceiling, provide an annual incremental

increase consistent with the

Departments’ past policy objectives, id.,

and create transparency in the

calculation of the ceiling.

Regulatory Flexibility Act

In accordance with the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., the

Chief Counsel for Regulation at the

Department of Commerce has certified

to the Chief Counsel for Advocacy,

Small Business Administration, that the

proposed rule, if promulgated as final,

will not have a significant economic

impact on a substantial number of small

entities. There are currently five watch

companies, all of which are located in

the Virgin Islands. Although a reduction

of the 2000 Virgin Islands territorial

share of duty-exemption is being

proposed, the reduced amount would

still represent more than twice the

amount of duty-exemption used in

1998. The statute does not permit a

lower amount in the year 2000.

Similarly, clarifying new entrant

affiliation language and updating the

creditable wage ceiling with a

permanent annual mechanism will not

impose any cost or have any other

732 Federal Register / Vol. 65, No. 4 / Thursday, January 6, 2000 / Proposed Rules

adverse economic effect on the

producers.

Paperwork Reduction Act

This proposed rulemaking involves

no new 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 and the amendments will not

increase the information burden on the

public.

Notwithstanding any other provision

of the law, no person is required to

respond to, nor shall any person be

subject to a penalty for failure to comply

with a collection of information unless

it displays a currently valid OMB

Control Number.

E.O. 12866.

It has been determined that the

proposed 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 propose to amend 15 CFR

Part 303 as follows:

PART 303—WATCHES, WATCH

MOVEMENTS AND JEWELRY

PROGRAM

1. The authority citation for 15 CFR

Part 303 reads 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.

127, 167.

2. Section 303.2(a)(5) is revised to

read as follows:

§ 303.2 Definitions and forms.

(a) Definitions. Unless the context

indicates otherwise:

* * * * *

(5) New firm is a watch firm which

may not be affiliated through ownership

or control with any other watch dutyrefund recipient. In assessing whether

persons or parties are affiliated, the

Secretaries will consider the following

factors, among others: stock ownership;

corporate or family groupings; franchise

or joint venture agreements; debt

financing; and close supplier

relationships. The Secretaries may not

find that control exists on the basis of

these factors unless the relationship has

the potential to affect decisions

concerning production, pricing, or cost.

Also, no watch duty-refund recipient

may own or control more than one

jewelry duty-refund recipient. A new

entrant is a new watch firm which has

received an allocation.

* * * * *

3. The first sentence of § 303.2(a)(13)

is amended by removing ‘‘up to the

amount per person shown in

§ 303.14(a)(1)(i)’’ and adding ‘‘up to an

amount equal to 65% of the

contribution and benefit base for Social

Security as defined in the Social

Security Act for the year in which the

wages were earned’’ in its place.

§ 303.14 [Amended]

4. Section 303.14(a)(1)(i) is amended

by removing ‘‘, up to a maximum of

$38,650 per person,’’ and adding ‘‘, up

to an amount equal to 65% of the

contribution and benefit base for Social

Security as defined in the Social

Security Act for the year in which the

wages were earned,’’ in its place.

5. Section 303.14(e) is amended by

removing ‘‘2,240,000’’ and adding

‘‘1,866,000’’ in its place.

§ 303.16 [Amended]

6. The first sentence of § 303.16(a)(9)

is amended by removing ‘‘up to the

amount per person of $38,650’’ and

adding ‘‘up to an amount equal to 65%

of the contribution and benefit base for

Social Security as defined in the Social

Security Act for the year in which the

wages were earned’’ in its place.

Richard W. Moreland,

Acting Assistant Secretary for Import

Administration, Department of Commerce.

Sandra King,

Acting Director, Office of Insular Affairs,

Department of the Interior.

[FR Doc. 00–287 Filed 1–5–00; 8:45 am]

BILLING CODE 3510–DS–P; 4310–93–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[CA–172–0205A; FRL–6519–2]

Approval and Promulgation of

Implementation Plans; California State

Implementation Plan Revision South

Coast Air Quality Management District;

Extension of Comment Period

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule; extension of the

comment period.

SUMMARY: EPA is extending the

comment period for a proposed rule

published December 17, 1999 (64 FR

70652). On December 17, 1999, EPA

proposed a disapproval of revisions to

the California State Implementation

Plan concerning federal recognition of

variances in the South Coast Air Quality

Management District. In response to

requests from the South Coast Air

Quality Management District, the San

Diego Air Pollution Control District, and

the Regulatory Flexibility Group, EPA is

extending the comment period for 14

days.

DATES: The comment period is extended

until January 17, 2000.

ADDRESSES: Comments should be

submitted to: Ginger Vagenas, Permits

Office (AIR–3), Air Division, U.S.

Environmental Protection Agency,

Region IX, 75 Hawthorne Street, San

Francisco, CA 94105–3901.

FOR FURTHER INFORMATION CONTACT:

Ginger Vagenas at (415) 744–1252.

Dated: December 21, 1999.

Felicia Marcus,

Regional Administrator, Region IX.

[FR Doc. 00–272 Filed 1–5–00; 8:45 am]

BILLING CODE 6560–50–P

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Part 1244

[STB Ex Parte No. 385 (Sub–No. 4)]

Modification of the Carload Waybill

Sample and Public Use File

Regulations

AGENCY: Surface Transportation Board,

Transportation.

ACTION: Notice of proposed rulemaking.

SUMMARY: Modifications to the existing

regulations are proposed that would

require all railroads to identify contract

movements in the annual carload

waybill sample. A 30-year limit on the

confidentiality of the ‘‘Waybill Sample’’

is also proposed.

DATES: Comments are due February 21,

2000.

ADDRESSES: Send comments (an original

and 10 copies) referring to STB Ex Parte

No. 385 (Sub-No. 4) to: Surface

Transportation Board, Office of the

Secretary, Case Control Branch, 1925 K

Street, NW, Washington, D.C. 20423–

0001.

FOR FURTHER INFORMATION CONTACT: Paul

A. Aguiar, (202) 565–1527 or H. Jeff