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107TH CONGRESS
2D SESSION
H. R. 4179
To amend the Harmonized Tariff Schedule of the United States with respect
to the production incentive certificate program for watch and jewelry
producers in possessions of the United States, including the Virgin Is-
lands, Guam, and American Samoa.
IN THE HOUSE OF REPRESENTATIVES
APRIL 11, 2002
Mrs. CHRISTENSEN (for herself, Mrs. JOHNSON of Connecticut, and Mr.
MCNULTY) introduced the following bill; which was referred to the Com-
mittee 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 possessions
of the United States, including the 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.—Additional U.S.
Note 5(h) to chapter 91 of the Harmonized Tariff Sched-
ule of the United States is amended—
(1) by amending subparagraphs (i) and (ii) to
read as follows:
‘‘(i) In the case of each of calendar years 2002 through
2015, the Secretaries jointly, shall—
‘‘(A) verify—
‘‘(1) the wages paid in the preceding calendar
year by each producer (including the value
of usual and customary fringe benefits)—
‘‘(I) to permanent residents of the insular
possessions; and
‘‘(II) to workers providing training in the
insular possessions in the production
or manufacture of watch movements
and watches or engaging in such other
activities in the insular possessions re-
lating to such production or manufac-
ture as are approved by the Secre-
taries; and
‘‘(2) the total quantity and value of watches
produced in the insular possessions by that
producer and imported into the customs
territory of the United States; and
‘‘(B) issue to each producer (not later than 60 days
after the end of the preceding calendar year) a
certificate 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 usual and customary
fringe benefits) on the assembly during the pre-
ceding calendar year of the first 300,000 units;
plus
‘‘(B) the applicable graduated declining percentage
(determined each year by the Secretaries) of the
producer’s creditable wages (including the value
of any usual and customary fringe benefits) on
the assembly during the preceding calendar
year of units in excess of 300,000 but not in ex-
cess of 750,000; 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 calendar year if the watches had been
subject to duty at the rates set forth in column
1 under this chapter that were in effect on Jan-
uary 1, 2001, and the duties that would have
been due on the watches if the watches had
been subject to duty at the rates set forth in
any other duties that the Secretary determines are
appropriate.’’.
(b) JEWELRY.—Additional U.S. Note 3 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, any arti-
cle of jewelry provided for in heading 7113 that is
assembled in the Virgin Islands, Guam, or American
Samoa by a jewelry manufacturer or jewelry assem-
bler that commenced jewelry manufacturing or jew-
elry assembly operations in the Virgin Islands, Guam,
or American Samoa after August 9, 2001, shall be
treated as a product of the Virgin Islands, Guam, or
American Samoa for purposes of this note and Gen-
eral Note 3(a)(iv) of this Schedule if such article is
entered no later than 18 months after such jewelry
manufacturer or jewelry assembler commenced jew-
elry manufacturing or jewelry assembly operations in
the Virgin Islands, Guam, or American Samoa.’’.
SEC. 2. EFFECTIVE DATE.
The amendments made by this Act shall apply with
respect to goods imported into the customs territory of
the United States on or after January 1, 2002.
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