Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 67645 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in subtitle VII, 

part A, subpart III, section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We have determined that this AD will 

not have federalism implications under 

Executive Order 13132. This AD will 

not have a substantial direct effect on 

the States, on the relationship between 

the National Government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

(3) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

See the ADDRESSES section for a location 

to examine the regulatory evaluation. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety. 

Adoption of the Amendment 

■ Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The Federal Aviation 

Administration (FAA) amends § 39.13 

by adding the following new 

airworthiness directive (AD): 

2005–23–07 Boeing: Amendment 39–14365. 

Docket No. FAA–2005–21975; 

Directorate Identifier 2005–NM–122–AD. 

Effective Date 

(a) This AD becomes effective December 

13, 2005. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to all Boeing Model 

727, 727C, 727–100, 727–100C, 727–200, and 

727–200F series airplanes; certificated in any 

category. 

Unsafe Condition 

(d) This AD results from fuel system 

reviews conducted by the manufacturer. We 

are issuing this AD to prohibit the resetting 

of a tripped circuit breaker for a fuel pump, 

which could allow an electrical fault to 

override the protective features of the circuit 

breaker, and could result in sparks inside the 

fuel tank, ignition of fuel vapors, and 

consequent fire or explosion. 

Compliance 

(e) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Revise the Airplane Flight Manual (AFM) 

(f) Within 30 days after the effective date 

of this AD, revise the Limitations section of 

the Boeing 727 AFM to include the following 

statement. This may be done by inserting a 

copy of this AD into the AFM. 

‘‘Do not reset a tripped fuel pump circuit 

breaker.’’

Note 1: When a statement identical to that 

in paragraph (f) of this AD has been included 

in the general revisions of the AFM, the 

general revisions may be inserted into the 

AFM, and the copy of this AD may be 

removed from the AFM. 

Alternative Methods of Compliance 

(AMOCs) 

(g)(1) The Manager, Seattle Aircraft 

Certification Office, FAA, has the authority to 

approve AMOCs for this AD, if requested in 

accordance with the procedures found in 14 

CFR 39.19. 

(2) Before using any AMOC approved in 

accordance with 14 CFR 39.19 on any 

airplane to which the AMOC applies, notify 

the appropriate principal inspector in the 

FAA Flight Standards Certificate Holding 

District Office. 

Material Incorporated by Reference 

(h) None. 

Issued in Renton, Washington, on October 

26, 2005. 

Kalene C. Yanamura, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 05–22214 Filed 11–7–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

DEPARTMENT OF THE INTERIOR 

Office of Insular Affairs 

15 CFR Part 303 

[Docket No. 050613157–5219–02] 

RIN 0625–AA68 

Changes in the Insular Possessions 

Watch, Watch Movement and Jewelry 

Programs 

AGENCIES: Import Administration, 

International Trade Administration, 

Department of Commerce; Office of 

Insular Affairs, Department of the 

Interior. 

ACTION: Final rule. 

SUMMARY: The Departments of 

Commerce and the Interior (the 

Departments) amend their regulations 

governing watch duty-exemption 

allocations and the watch and jewelry 

duty-refund benefits for producers in 

the United States insular possessions 

(the U.S. Virgin Islands, Guam, 

American Samoa and the 

Commonwealth of the Northern Mariana 

Islands). The rule amends the 

regulations by making technical changes 

required by passage of the 

Miscellaneous Trade and Technical 

Corrections Act of 2004; extending the 

duty refund benefits to include the 

value of usual and customary health 

insurance, life insurance and pension 

benefits; raising the ceiling on the 

amount of jewelry that qualifies for the 

duty refund benefit; allowing new 

insular jewelry producers to assemble 

jewelry and have such jewelry treated as 

an article of the insular possessions for 

up to 18 months after the jewelry 

company commences assembly 

operations; allowing duty refund 

certificate holders to secure a duty 

refund on any articles that are imported 

into the customs territory of the United 

States by the certificate holder duty 

paid; providing a more comprehensive 

definition of ‘‘unit;’’ adjusting the 

amount of watch repairs that are eligible 

for the duty refund; providing 

compensation to insular watch 

producers if tariffs on watches and 

watch movements are reduced; and 

clarifying which wages are eligible for 

purposes of determining the duty refund 

and identifying which records are 

needed for the audit. 

DATES: This rule is effective December 8, 

2005. 

67646 Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 

FOR FURTHER INFORMATION CONTACT: Faye 

Robinson, (202) 482–3526. 

SUPPLEMENTARY INFORMATION: The 

Departments of Commerce and the 

Interior (the Departments) issue this rule 

to amend their regulations governing 

watch duty-exemption allocations and 

the watch and jewelry duty-refund 

benefits for producers in the United 

States insular possessions (the U.S. 

Virgin Islands, Guam, American Samoa 

and the Commonwealth of the Northern 

Mariana Islands). The background 

information and purpose of this rule is 

found in the preamble to the proposed 

rule (70 FR 38828, July 6, 2005) and is 

not repeated here. 

Amendments 

Section 1562 of Public Law 108–429 

(2004) amends Public Law 97–446, 

Public Law 103–465 and Public Law 

106–36. The rule makes the necessary 

technical changes to reflect the new 

authority for the insular watch and 

jewelry programs. Changes are made to 

Authority, 15 CFR Sections 303.1(a), 

303.2(a)(1), 303.12 (c)(2), 303.15(a), and 

303.16(a)(1). 

Pursuant to Public Law 108–429, the 

definition of ‘‘creditable wages’’ is 

changed by amending 15 CFR 

303.2(a)(13) and 15 CFR 303.16(a)(9) to 

include the value of usual and 

customary health insurance, life 

insurance and pension benefits. The 

rule also changes the definition of 

creditable wages to include the 

difference between the duty rates for 

watches and watch movements that 

were in effect on January 1, 2001 and 

any new lower duty rates that takes 

place in the future. This provision in 

Public Law 108–429 is only applicable 

if there were duty reductions on 

watches and watch movements. We 

further reapportion the percentage of 

watch and watch movement repair 

wages that are creditable towards the 

duty-refund. The rule raises the 

percentage of repairs that are eligible for 

benefits in response to a request we 

received which pointed out that repair 

work is very labor intensive and more 

time consuming than regular watch 

assembly. 

In an effort to further clarify which 

wages are eligible for the duty refund, 

we added a new Section 303.2(a)(14); 

redesignated the current Sections 

303.2(a)(14) through (a)(16) as Sections 

303.2(a)(15) through (a)(17), 

respectively; added a new Section 

303.16(a)(10); and redesignated current 

Sections 303.16(a)(10) and 303.16(a)(11) 

as Sections 303.16(a)(11) and 

§ 303.16(a)(12), respectively, to further 

clarify which wages are not creditable. 

We also, as requested by a producer, 

clarified the term ‘‘year’’ in current 

Sections 303.2(a)(16) and 303.16(a)(11) 

to clear up any possible confusion. 

We also amended §§ 303.2(b)(4), 

303.2(b)(5), 303.12(c)(1), 303.16(b)(2), 

303.16(b)(3), and 303.19(c)(1). Pursuant 

to Public Law 108–429, we are changing 

the regulations to allow the refund of 

duties on any articles that are imported 

into the customs territory of the United 

States duty paid by the certificate holder 

unless the articles contain a material to 

which column 2 rates of duty apply. 

Further, the rule amends Sections 

303.20(b)(ii),(b)(iii) and (b)(iv) by raising 

the ceiling on the number of duty-free 

units of jewelry entering the United 

States each year that qualify for duty 

refund benefits under the program. 

Pursuant to Public Law 108–429, the 

rule changes the maximum number of 

units a year to qualify for the duty 

refund benefit from 750,000 units to 

10,000,000 units as long as the limit on 

available program funds is not exceeded 

and all the units are entered free of duty 

in accordance with the regulations. 

Another change, pursuant to Public 

Law 108–429, amends Section 

303.20(a)(2) to allow new program 

jewelry producers up to an18 month 

exemption from meeting the substantial 

transformation requirements and the 

other provisions normally required for 

duty-free entry into the United States. 

Starting on the day the new producer 

commences jewelry manufacturing or 

jewelry assembly, the jewelry producer 

has up to 18 months for any article of 

jewelry provided for in heading 7113, 

HTSUS, that is assembled in an insular 

possession, to be treated as a product of 

the insular possession. 

The rule also amends Section 

303.16(a)(7) by expanding the definition 

of a ‘‘unit’’ of jewelry so that the term 

unit more accurately represents the way 

some heading 7113, HTSUS, jewelry is 

sold in the industry. 

The rule further amends Sections 

303.5(b)(5) and 303.17(b)(4) to clarify 

that all records pertaining to shipment 

documents and proof of residency, as 

required, must be maintained and made 

available for the verification of data. The 

provision also adds new Sections 

303.5(b)(8) and 303.17(b)(9) which 

require the collection and maintenance 

of information pertaining to health 

insurance, life insurance and pension 

benefits for each employee in order that 

the benefit information can be verified 

and the duty refunds, based on the 

verified data, be issued in accordance 

with Public Law 108–429. Further, in 

accordance with Public Law 108–429, 

the rule adds a new Section 303.5(b)(9) 

in the event that the HTSUS tariffs on 

watches and watch movements are 

reduced. 

ITA received two comments in 

response to the proposed rule and 

request for comments. Both commenters 

supported all the provisions that were 

proposed and as a result we are 

adopting the proposed regulations in 

this final rule. 

Administrative Law Requirements 

Regulatory Flexibility Act. In 

accordance with the Regulatory 

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

Chief Counsel for Regulation at the 

Department of Commerce has certified 

to the Chief Counsel for Advocacy, 

Small Business Administration, that this 

rule would not have a significant 

economic impact on a substantial 

number of small entities. The factual 

basis for this certification was published 

in the proposed rule and is not repeated 

here. No comments were received 

regarding the economic impact of this 

rule on small entities. As a result, a final 

regulatory flexibility analysis is not 

required and has not been prepared. 

Paperwork Reduction Act. This 

rulemaking contains revised collection 

of information requirements that have 

been approved by the Office of 

Management and Budget (OMB) under 

control number 0625–0040. Send 

comments regarding the burden 

estimate or any other aspect of the 

collection of information to U.S. 

Department of Commerce, ITA 

Information Officer, Washington, DC 

20230 and the Office of Information and 

Regulations Officer, Office of 

Management and Budget, Washington, 

DC 20503 (Attn: OMB Desk Officer), or 

e-mail David_Rostker@omb.eop.gov. 

Notwithstanding any other provision 

of the law, no person is required to 

respond to, nor shall any person be 

subject to a penalty for failure to comply 

with the collection of information 

unless it displays a currently valid OMB 

Control Number. 

E.O. 12866. It has been determined 

that this rulemaking is not significant 

for purposes of Executive Order 12866. 

List of Subjects in 15 CFR Part 303 

Administrative practice and 

procedure, American Samoa, Customs 

duties and inspection, Guam, Imports, 

Marketing quotas, Northern Mariana 

Islands, Reporting and record keeping 

requirements, Virgin Islands, Watches 

and jewelry. 

■ For reasons set forth above, the 

Departments amend 15 CFR part 303 as 

follows: 

Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 67647 

PART 303—WATCHES, WATCH 

MOVEMENTS AND JEWELRY 

PROGRAMS 

■ 1. The authority citation for 15 CFR 

part 303 is revised to read as follows: 

Authority: Pub. L. 97–446, 96 Stat. 2331 

(19 U.S.C. 1202, note); Pub. L. 103–465, 108 

Stat. 4991; Pub. L. 94–241, 90 Stat. 263 (48 

U.S.C. 1681, note); Pub. L. 106–36, 113 Stat. 

167; Pub. L. 108–429, 118 Stat. 2582. 

§ 303.1 [Amended] 

■ 2. The first sentence of § 303.1(a) is 

amended by removing ‘‘and amended by 

Public Law 103–465, enacted 8 

December 1994.’’ and adding ‘‘amended 

by Public Law 103–465, enacted 8 

December 1994 and amended by Public 

Law 108–429 enacted 3 December 

2004.’’ in its place. 

■ 3. Section 303.2 is amended as 

follows: 

■ A. Section 303.2(a)(1) is amended by 

removing ‘‘.’’ at the end of the sentence 

and adding ‘‘, Public Law 108–429, 

enacted on 3 December 2004, 118 Stat. 

2582.’’ in its place. 

■ B. Section 303.2(a)(13) is revised as 

set forth below. 

■ C. In Section 303.2, paragraphs (a)(14) 

through (a)(16) are redesignated as 

paragraphs (a)(15) through (a)(17), and a 

new paragraph (a)(14) is added as set 

forth below. 

■ D. Newly designated paragraph (a)(17) 

is amended by removing ‘‘(i.e., be 

physically present for at least 183 days 

per year)’’ and adding ‘‘(i.e., be 

physically present for at least 183 days 

within a continuous 365 day period)’’ in 

its place. 

■ E. The heading and the first sentences 

of paragraph (b)(4) are revised as set 

forth below. 

■ F. Paragraph (b)(5) heading is revised 

as set forth below. 

§ 303.2 Definitions and forms. 

(a) * * * 

(13) Creditable wages, creditable 

fringe benefits and creditable duty 

differentials eligible for the duty refund 

benefit include, but are not limited to, 

the following: 

(i) Wages up to an amount equal to 65 

percent of the contribution and benefit 

base for Social Security, as defined in 

the Social Security Act for the year in 

which wages were earned, paid to 

permanent residents of the insular 

possessions employed in a firm’s 91/5 

watch and watch movement program. 

(A) Wages paid for the repair of 

watches up to an amount equal to 85 

percent of the firm’s total creditable 

wages. 

(B) Wages paid to watch and watch 

movement assembly workers involved 

in the complete assembly of watches 

and watch movements which have 

entered the United States duty-free and 

have complied with the laws and 

regulations governing the program. 

(C) Wages paid to watch and watch 

movement assembly workers involved 

in the complete assembly of watches, 

excluding the movement, only in 

situations where the desired movement 

can not be purchased unassembled and 

the producer has documentation 

establishing this. 

(D) Wages paid to those persons 

engaged in the day-to-day assembly 

operations on the premises of the 

company office, wages paid to 

administrative employees working on 

the premises of the company office, 

wages paid to security employees and 

wages paid to servicing and 

maintenance employees if these services 

are integral to the assembly and 

manufacturing operations and the 

employees are working on the premises 

of the company office. 

(E) Wages paid to persons engaged in 

both creditable and non-creditable 

assembly and repair operations may be 

credited proportionally provided the 

firm maintains production, shipping 

and payroll records adequate for the 

Departments’ verification of the 

creditable portion. 

(F) Wages paid to new permanent 

residents who have met the 

requirements of permanent residency in 

accordance with the Departments’

regulations, along with meeting all other 

creditable wage requirements of the 

regulations, which must be documented 

and verified to the satisfaction of the 

Secretaries. 

(ii) The combined creditable amount 

of individual health and life insurance 

per year, for each full-time permanent 

resident employee who works on the 

premises of the company office and 

whose wages qualify as creditable, may 

not exceed 100 percent of the ‘‘weighted 

average’’ yearly federal employee health 

insurance, which is calculated from the 

individual health plans weighted by the 

number of individual contracts in each 

plan. The yearly amount is calculated 

by the Office of Personnel Management 

and includes the ‘‘weighted average’’ of 

all individual health insurance costs for 

federal employees throughout the 

United States. The maximum life 

insurance allowed within this combined 

amount is $50,000 for each employee. 

(A) The combined creditable amount 

of family health and life insurance per 

year, for each full-time permanent 

resident employee who works on the 

premises of the company office and 

whose wages qualify as creditable, may 

not exceed 120 percent of the ‘‘weighted 

average’’ yearly federal employee health 

insurance, which is calculated from the 

family health plans weighted by the 

number of family contracts in each plan. 

The yearly amount is calculated by the 

Office of Personnel Management and 

includes the ‘‘weighted average’’ of all 

family health insurance costs for federal 

employees throughout the United 

States. The maximum life insurance 

allowed within this combined amount is 

$50,000 for each employee. 

(B) The creditable pension benefit, for 

each full-time permanent resident 

employee who works on the premises of 

the company office and whose wages 

qualify as creditable, is up to 3 percent 

of the employee’s wages unless the 

employee’s wages exceed the maximum 

annual creditable wage allowed under 

the program (see paragraph (a)(13)(i) of 

this section). An employee earning more 

than the maximum creditable wage 

allowed under the program will be 

eligible for only 3 percent of the 

maximum creditable wage. 

(iii) If tariffs on watches and watch 

movements are reduced, then 

companies would be required to provide 

the annual aggregate data by individual 

HTSUS watch tariff numbers for the 

following components contained 

therein: the quantity and value of watch 

cases, the quantity of movements, the 

quantity and value of each type of strap, 

bracelet or band, and the quantity and 

value of batteries shipped free of duty 

into the United States. If discrete watch 

movements are shipped free of duty into 

the United States, then the annual 

aggregate quantity by individual HTSUS 

movement tariff numbers would also be 

required along with the value of each 

battery if it is contained within. These 

data would be used to calculate the 

annual duty rate before each HTSUS 

tariff reduction, and the annual duty 

rate after the HTSUS tariff reduction. 

The amount of the difference would be 

creditable toward the duty refund. The 

tariff information would only be 

collected and used in the calculation of 

the annual duty-refund certificate and 

would not be used in the calculation of 

the mid-year duty-refund. 

(14) Non-creditable wages and noncreditable fringe benefits. Wages 

ineligible for the duty refund benefit 

wages include, but are not limited to, 

the following: 

(i) Wages over 65 percent of the 

contribution and benefit base for Social 

Security, as defined in the Social 

Security Act for the year in which wages 

were earned, paid to permanent 

residents of the territories employed in 

a firm’s 91/5 watch and watch 

movement program. 

67648 Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 

(A) Wages paid for the repair of 

watches in an amount over 85 percent 

of the firm’s total creditable wages. 

(B) Wages paid for the assembly of 

watches and watch movements which 

are shipped outside the customs 

territory of the United States; wages 

paid for the assembly of watches and 

watch movements that do not meet the 

regulatory assembly requirements; or 

wages paid for the assembly of watches 

or watch movements that contain 

HTSUS column 2 components. 

(C) Wages paid for the complete 

assembly of watches, excluding the 

movement, when the desired movement 

can be purchased unassembled, if the 

producer does not have adequate 

documentation, demonstrating to the 

satisfaction of the Secretaries, that the 

movement could not be purchased 

unassembled whether or not it is 

entering the United States. 

(D) Wages paid to persons not 

engaged in the day-to-day assembly 

operations on the premises of the 

company office; wages paid to any 

outside consultants; wages paid to 

outside the office personnel, including 

but not limited to, lawyers, gardeners, 

construction workers, and accountants; 

wages paid to employees not working 

on the premises of the company office; 

and wages paid to employees who do 

not qualify as permanent residents in 

accordance with the Departments’

regulations. 

(E) Wages paid to persons engaged in 

both creditable and non-creditable 

assembly and repair operations if the 

producer does not maintain production, 

shipping and payroll records adequate 

for the Departments’ verification of the 

creditable portion. 

(ii) Any costs, for the year in which 

the wages were paid, of the combined 

creditable amount of individual health 

and life insurance for employees over 

100 percent of the ‘‘weighted average’’

yearly individual health insurance costs 

for all federal employees. The cost of 

any life insurance over the $50,000 limit 

for each employee. 

(A) Any costs, for the year in which 

the wages were paid, of the combined 

creditable amount of family health and 

life insurance for employees over 120 

percent of the ‘‘weighted average’’

yearly family health insurance costs for 

all federal employee. The cost of any life 

insurance over the $50,000 limit for 

each employee. 

(B) The cost of any pension benefit 

per employee over 3 percent of the 

employee’s creditable wages unless the 

employee’s wages exceed the maximum 

annual creditable annual maximum 

creditable wage allowed under the 

program (see paragraph (a)(13)(i) of this 

section). Employees earning over the 

maximum creditable wage allowed 

under the program would have a 

creditable annual pension benefit of up 

to 3 percent of the maximum creditable 

wage and wages over 3 percent of the 

maximum creditable wage would not be 

creditable. 

* * * * * 

(b) * * * 

(4) ITA–360P ‘‘Certificate of 

Entitlement to Secure the Refund of 

Duties on Articles that Entered the 

Customs Territory of The United State 

Duty Paid.’’ This document authorizes 

an insular watch producer to request the 

refund of duties on imports of articles 

that entered the customs territory of the 

United States duty paid, up to the 

specified value of the certificate. * * * 

(5) ITA–361P ‘‘Request for Refund of 

Duties on Articles that Entered the 

Customs Territory of the United States 

Duty Paid.’’ * * * 

* * * * * 

■ 4. Section 303.5(b)(5) is revised to 

read as set forth below and 

paragraph(b)(8) and (b)(9) are added to 

read as set forth below. 

§ 303.5 Application for annual allocation of 

duty-exemptions. 

* * * * * 

(b) * * * 

(5) Customs, bank, payroll, 

production records, and all shipping 

records including the importer of record 

number and proof of residency, as 

requested; 

* * * * * 

(8) All records pertaining to health 

insurance, life insurance and pension 

benefits for each employee; and 

(9) If HTSUS tariffs on watches and 

watch movements are reduced, records 

of the annual aggregate data by 

individual HTSUS watch tariff numbers 

for the following components contained 

therein would be required: the quantity 

and value of watch cases; the quantity 

of movements; the quantity and value of 

each type of strap, bracelet or band; and 

the quantity and value of batteries 

shipped free of duty into the United 

States. In addition, if applicable, records 

of the annual aggregate quantity of 

discrete watch movements shipped free 

of duty into the United States by HTSUS 

tariff number. 

* * * * * 

■ 5. Section 303.12(c)(1) and (c)(2) are 

revised to read as follows: 

§ 303.12 Issuance and use of production 

incentive certificates. 

* * * * * 

(c) The use and transfer of certificate 

of entitlements. (1) Insular producers 

issued a certificate may request a refund 

by executing Form ITA–361P (see 

§ 303.2(b)(5) and the instructions on the 

form). After authentication by the 

Department of Commerce, Form ITA–

361P may be used to obtain duty 

refunds on articles that entered the 

customs territory of the United States 

duty paid except for any article 

containing a material which is the 

product of a country to which column 

2 rates of duty apply. Articles for which 

duty refunds are claimed must have 

entered the customs territory of the 

United States during the two-year 

period prior to the issue date of the 

certificate or during the one-year period 

the certificate remains valid. Copies of 

the appropriate Customs entries must be 

provided with the refund request in 

order to establish a basis for issuing the 

claimed amounts. Certification 

regarding drawback claims and 

liquidated refunds relating to the 

presented entries is required from the 

claimant on the form. 

(2) Regulations issued by the Bureau 

of Customs and Border Protection, U.S. 

Department of Homeland Security, 

govern the refund of duties under Public 

Law 97–446, as amended by Public Law 

103–465 and Public Law 108–429. If the 

Departments receive information from 

the Bureau of Customs and Border 

Protection that a producer has made 

unauthorized use of any official form, 

they shall cancel the affected certificate. 

* * * * * 

§ 303.15 [Amended] 

■ 6. Section 303.15(a) is amended by 

removing ‘‘.’’ at the end of the sentence 

and adding ‘‘, and Public Law 108–429, 

enacted on 3 December 2004.’’ in its 

place. 

■ 7. Section 303.16 is amended as 

follows: 

■ A. Paragraph (a)(1) is amended by 

removing ‘‘.’’ at the end of the last 

sentence and adding ‘‘, and Public Law 

108–429, enacted on 3 December 2004.’’

in its place. 

■ B. Paragraph (a)(7) is revised to read 

as set forth below. 

■ C. Paragraph (a)(9) is revised to read 

as set forth below. 

■ D. Paragraphs (a)(10) and (a)(11) are 

redesignated as paragraphs (a)(11) and 

(12) and a new paragraph (a)(10) is 

added as set forth below. 

■ E. Newly designated paragraph (a)(12) 

is amended by removing ‘‘(i.e., be 

physically present for at least 183 days 

per year)’’ and adding ‘‘(i.e., be 

physically present for at least 183 days 

within a continuous 365 day period 

year)’’ in its place. 

■ F. Paragraph (b)(2) is revised to read 

as set forth below. 

Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 67649 

■ G. The heading of paragraph (b)(3) is 

revised to read as set forth below. 

§ 303.16 Definitions and forms. 

(a) * * * 

(7) Unit of Jewelry means a single 

article (e.g., ring, bracelet, necklace), 

pair (e.g, cufflinks), gram for links 

which are sold in grams and stocked in 

grams, and other subassemblies and 

components in the customary unit of 

measure they are stocked and sold 

within the industry. 

* * * * * 

(9) Creditable wages and creditable 

fringe benefits eligible for the duty 

refund benefit include, but are not 

limited to, the following: 

(i) Wages up to an amount equal to 65 

percent of the contribution and benefit 

base for Social Security, as defined in 

the Social Security Act for the year in 

which wages were earned, paid to 

permanent residents of the insular 

possessions employed in a firm’s 

manufacture of HTSUS heading 7113 

articles of jewelry which are a product 

of the insular possessions and have met 

the Bureau of Customs and Border 

Protection’s criteria for duty-free entry 

into the United States, plus any wages 

paid for the repair of non-insular 

HTSUS heading 7113 jewelry up to an 

amount equal to 50 percent of the firm’s 

total creditable wages. 

(A) Wages paid to persons engaged in 

the day-to-day assembly operations at 

the company office, wages paid to 

administrative employees working on 

the premises of the company office, 

wages paid to security operations 

employees and wages paid to servicing 

and maintenance employees if these 

services are integral to the assembly and 

manufacturing operations and the 

employees are working on the premises 

of the company office. 

(B) Wages paid to permanent 

residents who are employees of a new 

company involved in the jewelry 

assembly and jewelry manufacturing of 

HTSUS heading 7113 jewelry for up to 

18 months after such jewelry company 

commences jewelry manufacturing or 

jewelry assembly operations in the 

insular possessions. 

(C) Wages paid when a maximum of 

two producers work on a single piece of 

HTSUS heading 7113 jewelry which 

entered the United States free of duty 

under the program. Wages paid by the 

two producers will be credited 

proportionally provided both producers 

demonstrate to the satisfaction of the 

Secretaries that they worked on the 

same piece of jewelry, the jewelry 

received duty-free treatment into the 

customs territory of the United States, 

and the producers maintained 

production and payroll records 

sufficient for the Departments’

verification of the creditable wage 

portion (see § 303.17(b)). 

(D) Wages paid to persons engaged in 

both creditable and non-creditable 

assembly and repair operations may be 

credited proportionally provided the 

firm maintains production, shipping 

and payroll records adequate for the 

Departments’ verification of the 

creditable portion. 

(E) Wages paid to new permanent 

residents who have met the 

requirements of permanent residency in 

accordance with the Departments’

regulations along with meeting all other 

creditable wage requirements of the 

regulations, which must be documented 

and verified to the satisfaction of the 

Secretaries. 

(ii) The combined creditable amount 

of individual health and life insurance 

per year, for each full-time permanent 

resident employee who works on the 

premises of the company office and 

whose wages qualify as creditable, may 

not exceed 100 percent of the ‘‘weighted 

average’’ yearly federal employee health 

insurance, which is calculated from the 

individual health plans weighted by the 

number of individual contracts in each 

plan. The yearly amount is calculated 

by the Office of Personnel Management 

and includes the ‘‘weighted average’’ of 

all individual health insurance costs for 

federal employees throughout the 

United States. The maximum life 

insurance allowed within this combined 

amount is $50,000 for each employee. 

(A) The combined creditable amount 

of family health and life insurance per 

year, for each full-time permanent 

resident employee who works on the 

premises of the company office and 

whose wages qualify as creditable, may 

not exceed 120 percent of the ‘‘weighted 

average’’ yearly federal employee health 

insurance, which is calculated from the 

family health plans weighted by the 

number of family contracts in each plan. 

The yearly amount is calculated by the 

Office of Personnel Management and 

includes the ‘‘weighted average’’ of all 

family health insurance costs for federal 

employees throughout the United 

States. The maximum life insurance 

allowed within this combined amount is 

$50,000 dollars for each employee. 

(B) The creditable pension benefit, for 

each full-time permanent resident 

employee who works on the premises of 

the company office and whose wages 

qualify as creditable, is up to 3 percent 

of the employee’s wages unless the 

employee’s wages exceed the maximum 

annual creditable wage allowed under 

the program (see paragraph (a)(9)(i) of 

this section). An employee earning more 

than the maximum creditable wage 

allowed under the program will be 

eligible for only 3 percent of the 

maximum creditable wage. 

(10) Non-creditable wages and noncreditable fringe benefits. Wages 

ineligible for the duty refund benefit 

include, but are not limited to, the 

following: 

(i) Wages over 65 percent of the 

contribution and benefit base for Social 

Security, as defined in the Social 

Security Act for the year in which wages 

were earned, paid to permanent 

residents of the territories employed in 

a firm’s 91/5 heading 7113, HTSUS, 

jewelry program. 

(A) Wages paid for the repair of 

jewelry in an amount over 50 percent of 

the firm’s total creditable wages. 

(B) Wages paid to employees who are 

involved in assembling HTSUS heading 

7113 jewelry beyond 18 months after 

such jewelry company commences 

jewelry manufacturing or jewelry 

assembly operations in the insular 

possessions if the jewelry does not meet 

the Bureau of Customs and Border 

Protection’s substantial transformation 

requirements and other criteria for dutyfree enter into the United States. 

(C) Wages paid for the assembly and 

manufacturing of jewelry which is 

shipped to places outside the customs 

territory of the United States; wages 

paid for the assembly and 

manufacturing of jewelry that does not 

meet the regulatory assembly 

requirements; or wages paid for the 

assembly and manufacture of jewelry 

that contain HTSUS column 2 

components. 

(D) Wages paid to those persons not 

engaged in the day-to-day assembly 

operations on the premises of the 

company office, wages paid to any 

outside consultants, wages paid to 

outside the office personnel, including 

but not limited to, lawyers, gardeners, 

construction workers and accountants; 

wages paid to employees not working 

on the premises of the company office 

and wages paid to employees who do 

not qualify as permanent residents in 

accordance with the Departments’

regulations. 

(E) Wages paid to persons engaged in 

both creditable and non-creditable 

assembly and repair operations if the 

producer does not maintain production, 

shipping and payroll records adequate 

for the Departments’ verification of the 

creditable portion. 

(ii) Any costs, for the year in which 

the wages were paid, of the combined 

creditable amount of individual health 

and life insurance for employees over 

100 percent of the ‘‘weighted average’’

yearly individual health insurance costs 

67650 Federal Register / Vol. 70, No. 215 / Tuesday, November 8, 2005 / Rules and Regulations 

for all federal employees. The cost of 

any life insurance over the $50,000 limit 

for each employee. 

(A) Any costs, for the year in which 

the wages were paid, of the combined 

creditable amount of family health and 

life insurance for employees over 120 

percent of the ‘‘weighted average’’

yearly family health insurance costs for 

all federal employee. The cost of any life 

insurance over the $50,000 limit for 

each employee. 

(B) The cost of any pension benefit 

per employee over 3 percent of the 

employee’s creditable wages unless the 

employee’s wages exceed the maximum 

annual creditable annual maximum 

creditable wage allowed under the 

program (see paragraph (a)(9)(i) of this 

section). Employees earning over the 

maximum creditable wage allowed 

under the program would have a 

creditable annual pension benefit of up 

to 3 percent of the maximum creditable 

wage and wages over 3 percent of the 

maximum creditable wage would not be 

creditable. 

* * * * * 

(b) * * * 

(2) ITA–360P ‘‘Certificate of 

Entitlement to Secure the Refund of 

Duties on Articles that Entered the 

Customs Territory of The United State 

Duty Paid.’’ This document authorizes 

an insular jewelry producer to request 

the refund of duties on imports of 

articles that entered the customs 

territory of the United States duty paid, 

with certain exceptions, up to the 

specified value of the certificate. 

Certificates may be used to obtain duty 

refunds only when presented with a 

properly executed Form ITA–361P. 

(3) ITA–361P ‘‘Request for Refund of 

Duties on Articles that Entered the 

Customs Territory of the United States 

Duty Paid.’’ * * * 

* * * * * 

■ 8. Section 303.17 is amended by 

revising paragraph (b)(6); by 

redesignating paragraphs (b)(7) and 

(b)(8) as paragraphs (b)(8) and (b)(9); 

and by adding a new paragraph (b)(7) to 

read as follows: 

§ 303.17 Annual jewelry application. 

* * * * * 

(b) * * * 

(6) Customs, bank, payroll, 

production records, and all shipping 

records including the importer of record 

number and proof of residency, as 

requested; 

(7) All records pertaining to health 

insurance, life insurance and pension 

benefits for each employee; 

* * * * * 

■ 9. Section 303.19(c)(1) is revised to 

read as follows: 

§ 303.19 Issuance and use of production 

incentive certificates. 

* * * * * 

(C) The use and transfer of certificate 

entitlements. (1) Insular producers 

issued a certificate may request a refund 

by executing Form ITA–361P (see 

§ 303.16(b)(3)) and the instruction on 

the form). After authentication by the 

Department of Commerce, Form ITA–

361P may be used to obtain duty 

refunds on article that entered the 

customs territory of the United States 

duty paid. Duties on an article which is 

the product of a country with respect to 

column 2 rates of duty apply may not 

be refunded Articles for which duty 

refunds are claimed must have entered 

the customs territory of the United 

States during the two-year period prior 

to the issue date of the certificate or 

during the one-year period the 

certificate remains valid. Copies of the 

appropriate Customs entries must be 

provided with the refund request in 

order to establish a basis for issuing the 

claimed amounts. Certification 

regarding drawback claims and 

liquidated refunds relating to the 

presented entries is required from the 

claimant on the form. 

* * * * * 

■ 10. In § 303.20: 

■ A. Paragraph (a)(2) is revised; 

■ B. Paragraph (b)(1)(ii) is amended by 

removing ‘‘450,000’’ and adding 

‘‘3,533,334’’ in its place; 

■ C. Paragraph (b)(1)(iii) is amended by 

removing ‘‘600,000’’ and adding 

‘‘6,766,667’’ in its place; and 

■ D. Paragraph 303.20(b)(1)(iv) is 

amended by removing ‘‘750,000’’ and 

adding ‘‘10,000,000’’ in its place. 

§ 303.20 Duty refund. 

* * * * * 

(a) * * * 

(2) Eighteen month exemption. Any 

article of jewelry provided for in HTSUS 

heading 7113, assembled in the insular 

possessions by a new entrant jewelry 

manufacturer shall be treated as a 

product of the insular possessions if 

such article is entered into the customs 

territory of the United States no later 

than 18 months after such producer 

commences jewelry manufacturing or 

jewelry assembly operations in the 

insular possessions. 

* * * * * 

Joseph A. Spetrini, 

Acting Assistant Secretary for Import 

Administration, Department of Commerce. 

Nikolao I. Pula, 

Director for Insular Affairs, Department of 

the Interior. 

[FR Doc. 05–22244 Filed 11–7–05; 8:45 am] 

BILLING CODE 3510–DS–P; 4310–93–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Chapter I 

[Docket No. 2005N–0419] 

Change of Name; Technical 

Amendment 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Final rule; technical 

amendment. 

SUMMARY: The Food and Drug 

Administration (FDA) is amending its 

regulations to reflect a change in the 

name for AOAC INTERNATIONAL. 

This action is editorial in nature and is 

intended to improve the accuracy of the 

agency’s regulations. 

DATES: This rule is effective November 

8, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Joyce Strong, Office of Policy and 

Planning (HF–27), Food and Drug 

Administration, 5600 Fishers Lane, 

Rockville, MD 20857, 301–827–7010. 

SUPPLEMENTARY INFORMATION: This 

document amends FDA’s regulations to 

reflect the name change of AOAC 

INTERNATIONAL by removing the 

outdated name wherever it appears and 

by adding the new name in its place in 

21 CFR parts 2, 10, 101, 102, 106, 114, 

130, 131, 133, 135, 136, 137, 139, 145, 

146, 150, 155, 156, 160, 161, 163, 164, 

166, 168, 169, 172, 173, 176, 177, 178, 

184, 189, 211, 226, 520, and 573. 

Publication of this document 

constitutes final action on these changes 

under the Administrative Procedure Act 

(5 U.S.C. 553). Notice and public 

procedure are unnecessary because FDA 

is merely correcting nonsubstantive 

errors. 

■ Therefore, under the Federal Food, 

Drug, and Cosmetic Act and under 

authority delegated to the Commissioner 

of Food and Drugs, 21 CFR chapter I is 

amended as follows: