I
107TH CONGRESS
1ST SESSION
H. R. 575
To amend the Harmonized Tariff Schedule of the United States with respect
to the production incentive certificate program for watch and jewelry
producers in the United States Virgin Islands, Guam, and American
Samoa.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 13, 2001
Mrs. CHRISTENSEN introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Harmonized Tariff Schedule of the United
States with respect to the production incentive certificate
program for watch and jewelry producers in the United
States Virgin Islands, Guam, and American Samoa.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AMENDMENTS TO UNITED STATES INSULAR
POSSESSION PROGRAM.
(a) PRODUCTION
CERTIFICATES.—The additional
U.S. Note 5(h) to chapter 91 of the Harmonized Tariff
Schedule of the United States is amended—
(1) by amending subparagraphs (i) and (ii) to
read as follows:
‘‘(i) In the case of each calendar quarter beginning after
January 1, 2002, and before January 1, 2016, the
Secretaries jointly, shall:
‘‘(A) verify for the preceding calendar quarter both
the wages paid by each producer to permanent
residents of the insular possessions (including
the value of any fringe benefits) and the total
quantity and value of watches produced in the
insular possessions and imported into the cus-
toms territory of the United States; and
‘‘(B) issue to each producer (not later than 30 days
after the end of the calendar quarter) a certifi-
cate for the applicable amount.
‘‘(ii) For purposes of subparagraph (i), except as provided
in subparagraphs (iii) and (iv), the term ‘applicable
amount’ means an amount equal to the sum of:
‘‘(A) 90 percent of the producer’s creditable wages
(including the value of any fringe benefits) on
watch assembly during the preceding calendar
quarter (but only the first 300,000 units per
calendar year); plus
‘‘(B) the applicable graduated declining percentage
(determined each year by the Secretaries) of the
producer’s creditable wages (including the value
of any fringe benefits) on the assembly during
the preceding calendar quarter for units in ex-
cess of 300,000 that calendar year, but not in
excess of 750,000 that calendar year; plus
‘‘(C) the difference between the duties that would
have been due on the producer’s watches (ex-
cluding digital watches) imported into the cus-
toms territory of the United States during the
preceding quarter if they had been imported
from a country eligible for normal trade rela-
tions subject to duty at the rates set forth in
column 1 under this chapter that were in effect
on January 1, 2001, and the duties that would
have been due on those watches if they had
been imported from the same country under the
tariffs in effect for the preceding calendar quar-
ter.’’; and
(2) by amending subparagraph (v) to read as
follows:
‘‘(v)(A) Any certificate issued under subparagraph (i)
shall entitle the certificate holder to secure the refund
of duties equal to the face value of the certificate on
watches, watch movements and, with the exception of
discrete cases, parts therefor imported into the cus-
toms territory of the United States by the certificate
holder. Such refunds shall be made under regulations
issued by the Treasury Department. Not more than
5 percent of such refunds may be retained as a reim-
bursement to the Customs Service for the administra-
tive costs of making the refunds. If the Secretary of
the Treasury determines that there is an insufficient
level of duties from watch and watch-related tariffs,
the Secretary may authorize refunds of duties col-
lected on jewelry under chapter 71 or any other du-
ties that the Secretary determines are appropriate.
‘‘(B) At the election of the certificate holder and upon
making the certification described in this clause, the
Secretary of the Treasury shall pay to the holder the
face value of the certificate, less the value of (1) any
duty refund claimed by the holder under the certifi-
cate, plus (2) a discount of not more than 2 percent
of the face value of the certificate, as determined by
the Secretary of the Treasury. A certificate holder
shall not be eligible for direct payment under this
clause unless the certificate holder certifies to the
Secretaries that the funds received will be reinvested
or utilized to support and continue employment in the
Virgin Islands.
‘‘(C) The Secretary of the Treasury is authorized to make
the payments provided for in clause (B) from duties
collected on watches, watch movements and, with the
exception of discrete cases, parts therefor. If such du-
ties are insufficient, the Secretary of the Treasury is
authorized to make those payments from duties col-
lected on jewelry under chapter 71 or any other du-
ties that the Secretary determines are appropriate.’’.
(b) JEWELRY.—Additional U.S. Note to chapter 71
of the Harmonized Tariff Schedule of the United States
is amended—
(1) by redesignating paragraphs (b), (c), (d),
and (e) as paragraphs (c), (d), (e), and (f), respec-
tively;
(2) by inserting after paragraph (a) the fol-
lowing new paragraph:
‘‘(b) The 750,000 unit limitation in additional U.S. Note
5(h)(ii)(B) to chapter 91 shall not apply to articles
of jewelry subject to this note.’’; and
(3) by striking paragraph (f), as so redesig-
nated, and inserting the following:
‘‘(f) Notwithstanding any other provision of law, prior to
February 9, 2004, any article of jewelry provided for
in heading 7113 that is assembled in the Virgin Is-
lands, Guam, or American Samoa shall be treated as
a product of the Virgin Islands, Guam, or American
Samoa for purposes of this note and General Note
3(a)(iv) of this Schedule.’’.
SEC. 2. EFFECTIVE DATE.
The amendments made by this Act shall take effect
on April 1, 2002, with respect to goods imported into the
customs territory of the United States on or after January
1, 2002.
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