99-30971. Extend Production Incentive Benefits to Jewelry Manufacturers in the U.S. Insular Possessions  

  • [Federal Register Volume 64, Number 230 (Wednesday, December 1, 1999)]
    [Rules and Regulations]
    [Pages 67148-67152]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-30971]
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    DEPARTMENT OF COMMERCE
    
    International Trade Administration
    
    DEPARTMENT OF THE INTERIOR
    
    Office of Insular Affairs
    
    15 CFR Part 303
    
    [Docket No. 990813222-9309-02]
    RIN 0625-AA55
    
    
    Extend Production Incentive Benefits to Jewelry Manufacturers in 
    the U.S. Insular Possessions
    
    AGENCIES: Import Administration, International Trade Administration, 
    Department of Commerce; Office of Insular Affairs, Department of the 
    Interior.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This action amends the Departments' regulations governing 
    duty-exemption allocations and duty-refund benefits for watch producers 
    in the United States insular possessions (the U.S. Virgin Islands, 
    Guam, American Samoa and the Commonwealth of the Northern Mariana 
    Islands) due to the enactment of Pub. L. 106-36. This law amends 
    additional U.S. notes to chapter 71 of the Harmonized Tariff Schedule 
    of the United States (``HTSUS'') to provide a duty-refund benefit for 
    any article of jewelry within heading 7113 which is the product of the 
    Virgin Islands, Guam, American Samoa or the Northern Mariana Islands in 
    accordance with the new provisions of the note in chapter 71 and 
    additional U.S. note 5 to chapter 91. The rule amends the regulations 
    by changing Title 15 CFR part 303 to include jewelry, creating a 
    Subpart A for the current 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.
    
    EFFECTIVE DATE: December 1, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Faye Robinson, (202) 482-3526.
    
    SUPPLEMENTARY INFORMATION: We published proposed regulatory revisions 
    on August 27, 1999 (64 FR 46872) and invited comments. Referring to the 
    requirement in the proposed section 303.16(a)(5) that a new jewelry 
    firm be ``completely separate from and not associated with, by way of 
    ownership or control'' with other jewelry program participants in a 
    territory, one commenter suggested that we replace ``ownership or 
    control'' with ``ownership and control''. The commenter hoped to be 
    free to have, as
    
    [[Page 67149]]
    
    a new jewelry firm, a non-controlling association with another firm in 
    the territory.
        The Departments agree that the language ``completely separate from 
    and not associated with, by way of ownership or control'' may be too 
    restrictive and might have the effect of discouraging widespread 
    participation in the expanded benefits enacted by Congress. A mere 
    association, whether by way of overlapping ownership or of family 
    relationships, may not necessarily disqualify otherwise qualified new 
    firm applicants.
        The change suggested by the applicant, however, would not remove 
    this perceived difficulty because both terms in the phrase ``ownership 
    and control'' are modified by the unexceptionable ``completely separate 
    from.'' Nevertheless, in order to evaluate the unique circumstances of 
    each applicant, we have revised the proposed language to include new 
    terminology borrowed from existing fair trade law regulations. The 
    final language will enable the Secretaries to make case-by-case 
    determinations and ensure that the purpose of the restrictions, to 
    prevent circumvention of the statutory 750,000 unit benefit ceiling and 
    the declining duty-refund benefits received after the first 300,000 
    units, is observed in all instances.
        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 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 this limited quantity which may be entered from the 
    Virgin Islands, Guam, American Samoa and the Commonwealth of the 
    Northern Mariana Islands (``CNMI''). After the Departments have 
    verified the data submitted on the annual application (Form ITA-334P), 
    the producers' duty-exemption allocations are calculated from the 
    territorial share in accordance with Section 303.14 of the regulations 
    (15 CFR 303.14) and each producer is issued a duty-exemption license. 
    The law further requires the Secretaries to issue duty-refund 
    certificates to each territorial watch and watch movement producer 
    based on the company's duty-free shipments and creditable wages paid 
    during the previous calendar year.
        Pub. L. 106-36 authorizes the issuance of a duty-refund certificate 
    to each territorial jewelry producer for any article of jewelry 
    provided for in heading 7113 of the HTSUS which is the product of any 
    such territory based on creditable wages paid and duty-free units 
    shipped into the United States during the previous calendar year. 
    Although the law specifically mentions the U.S. Virgin Islands, Guam 
    and American Samoa, the issuance of the duty-refund certificate would 
    also apply to the CNMI due to the Covenant to Establish a Commonwealth 
    of the Northern Mariana Islands in Political Union with the United 
    States of America (Pub. L. 94-241), which states that goods from the 
    CNMI are entitled to the same tariff treatment as imports from Guam. 
    (See also 19 CFR 7.2(a)). The law provides that during the first two 
    years, beginning August 9, 1999 (45 days after the date of enactment), 
    jewelry that is assembled in the territories shall be treated as a 
    product of such territories. Thereafter, in order to be considered a 
    product of such territories, the jewelry must meet the U.S. Customs 
    Service substantial transformation requirements (the jewelry must 
    become a new and different article of commerce as a result of 
    production or manufacture performed in the territory). To receive duty-
    free treatment, the jewelry must also satisfy the requirements of 
    General Note 3(a)(iv) of the HTSUS and applicable Customs Regulations 
    (19 CFR 7.3).
        The law specifies, in addition, that watch producer benefits shall 
    not to be diminished as a consequence of extending duty-refund benefits 
    to jewelry manufacturers. In the event that the aggregate amount of the 
    calculated duty refunds for both watches and jewelry exceeds the total 
    amount available under Pub. L. 97-446, as amended by Pub. L. 103-465, 
    the watch producers shall receive their calculated amounts; the jewelry 
    producers would then receive amounts proportionately reduced from the 
    remainder.
        Under the Administrative Procedure Act, 5 U.S.C. 553(d)(1), the 
    effective date of this rule need not be delayed for 30 days because 
    this rule relieves a restriction by making insular jewelry producers 
    eligible to receive a duty-refund benefit similar to the duty-refund 
    benefit insular watch producers receive.
    
    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 rule will not have a significant economic 
    impact on a substantial number of small entities. This rulemaking will 
    not affect the five watch companies currently participating in the 
    insular possessions watch program because Pub. L. 106-36 does not allow 
    watch producers' benefits to be reduced as a consequence of extending 
    benefits to jewelry manufacturers. We expect up to five jewelry 
    companies to set up production facilities in the insular possessions in 
    response to the extension to them of existing incentives by Pub. L. 
    106-36. However, as with watch producers, the duty refund benefit per 
    company does not apply to shipments exceeding 750,000 units of jewelry 
    into the United States per year. The last Census of Manufacturers 
    statistics (1992) indicate that there are 2,180 precious jewelry 
    manufacturers located in the U.S. employing 32,300 employees. Because 
    the insular jewelry industry would represent such a small percentage of 
    the existing U.S. industry and because there is a limit on the benefit 
    extended to insular jewelry producers, the regulations will not have a 
    significant adverse impact on any small business entities. We expect a 
    positive impact in the form of new jobs in the small U.S. insular 
    economies. No comments were received on this certification.
    
    Paperwork Reduction Act
    
        This rulemaking involves 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 which have been 
    approved under OMB control number 0625-0040 and 0625-0134. The 
    extension of the insular watch program to include the jewelry benefit 
    will require the use of three of the current forms, modified to 
    accommodate jewelry. The public reporting burden for these collection-
    of-information requirements includes the time for reviewing 
    instructions, searching existing data sources, gathering and 
    maintaining the data needed, and completing and reviewing the 
    collection of information. Form ITA-334P, the annual application, would 
    be completed once a year by each jewelry producer and requires one 
    burden hour. Form ITA-360P, the certificate of refund, would also be 
    used once a year and is completed by the Department of Commerce and 
    imposes no burden hours. Form ITA-361P, the request for refund of 
    duties, would normally be used once or twice a year per jewelry 
    producer and takes about 10 minutes to complete.
    
    [[Page 67150]]
    
        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 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 recordkeeping 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 PROGRAM
    
        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. 127,167.
    
        2. Revise the heading for part 303 to read as set forth above.
        3. Designate Sec. 303.1 through 303.14 as subpart A and add a 
    subpart heading as set forth below.
    
    Subpart A--Watches and Watch Movements
    
        4. Add subpart B to read as follows:
    
    Subpart B--Jewelry
    
    Sec.
    303.15  Purpose.
    303.16  Definitions and forms.
    303.17  Annual jewelry application.
    303.18  Sale and transfer of business.
    303.19  Issuance and use of production incentive certificates.
    303.20  Duty refund.
    303.21  Appeals.
    
    Subpart B--Jewelry
    
    
    Sec. 303.15  Purpose.
    
        (a) This subpart implements the responsibilities of the Secretaries 
    of Commerce and the Interior (``the Secretaries'') under Pub. L. 106-
    36, enacted 25 June 1999 which substantially amended Pub. L. 97-446, 
    enacted 12 January 1983, amended by Pub. L. 89-805, enacted 10 November 
    1966, amended by Pub. L. 94-88, enacted 8 August 1975, amended by Pub. 
    L. 94-241, enacted 24 March 1976, and amended by Pub. L. 103-465, 
    enacted 8 December 1994.
        (b) The amended law provides for the issuance of certificates to 
    insular jewelry producers who have met the requirements of the laws and 
    regulations, entitling the holder (or any transferee) to obtain refunds 
    of duties on watches and watch movements and parts (except discrete 
    watch cases) imported into the customs territory of the United States. 
    The amounts of these certificates may not exceed specified percentages 
    of the producers' verified creditable wages in the insular possessions 
    (90% of wages paid for the production of the first 300,000 duty-free 
    units and declining percentages, established by the Secretaries, of 
    wages paid for incremental production up to 750,000 units by each 
    producer) nor an aggregate annual amount for all certificates exceeding 
    $5,000,000 adjusted for growth by the ratio of the previous year's 
    gross national product to the gross national product in 1982. However, 
    the law specifies that watch producer benefits are not to be diminished 
    as a consequence of extending the duty refund to jewelry manufacturers. 
    In the event that the amount of the calculated duty refunds for watches 
    and jewelry exceeds the total aggregate annual amount that is 
    available, the watch producers shall receive their calculated amounts 
    and the jewelry producers would receive amounts proportionately reduced 
    from the remainder. Refund requests are governed by regulations issued 
    by the Department of the Treasury (see 19 CFR 7.4).
        (c) Section 2401(a) of Pub. L. 106-36 and additional U.S. note 5 to 
    chapter 91 of the HTSUS authorize the Secretaries to issue regulations 
    necessary to carry out their duties. The Secretaries may cancel or 
    restrict the certificate of any insular manufacturer found violating 
    the regulations.
    
    
    Sec. 303.16  Definitions and forms.
    
        (a) Definitions. For purposes of the subpart, unless the context 
    indicates otherwise:
        (1) Act means Pub. L. 97-446, enacted 12 January 1983 (19 U.S.C. 
    1202), 96 Stat. 2329, as amended by Pub. L. 103-465, enacted on 8 
    December 1994, 108 Stat. 4991 and, as amended by Pub. L. 106-36, 
    enacted on 25 June 1999.
        (2) Secretaries means the Secretary of Commerce and the Secretary 
    of the Interior or their delegates, acting jointly.
        (3) Director means the Director of the Statutory Import Programs 
    Staff, International Trade Administration, U.S. Department of Commerce.
        (4) Sale or transfer of a business means the sale or transfer of 
    control, whether temporary or permanent, over a firm which is eligible 
    for a jewelry program duty-refund to any other firm, corporation, 
    partnership, person or other legal entity by any means whatsoever, 
    including, but not limited to, merger and transfer of stock, assets or 
    voting trusts.
        (5) New firm means a jewelry company which has requested in writing 
    to the Secretaries permission to participate in the program. In 
    addition to any other information required by the Secretaries, new firm 
    requests shall include a representation that the company agrees to 
    abide by the laws and regulations of the program, an outline of the 
    company's anticipated economic contribution to the territory (including 
    the number of employees) and a statement as to whether the company is 
    affiliated by ownership or control with any other watch or jewelry 
    company in the insular possessions. The Secretaries will then review 
    the request and make a decision based on the information provided and 
    the economic contribution to the territory. A new jewelry firm may not 
    be affiliated through ownership or control with any other jewelry duty-
    refund 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 
    jewelry duty-refund recipient may own or control more than one watch 
    duty-refund recipient.
        (6) Jewelry producer means a company, located in one of the insular 
    territories (see paragraph (a)(8) of this section), that produces 
    jewelry provided for in heading 7113, HTSUS, which meets all the U.S. 
    Customs Service requirements for duty-free entry set forth in General 
    Note 3(a)(iv), HTSUS, and 19 CFR 7.3, and has maintained its 
    eligibility for duty refund benefits by complying with these 
    regulations.
        (7) Unit of jewelry means a single article, pair (example: 
    earrings, cufflinks), subassembly or component which is contained in 
    HTSUS heading 7113.
        (8) Territories, territorial and insular possessions refers to the 
    insular possessions of the United States (i.e., the U.S. Virgin 
    Islands, Guam,
    
    [[Page 67151]]
    
    American Samoa and the Northern Mariana Islands).
        (9) Creditable wages means all wages--up to the amount per person 
    of $38,650--paid to permanent residents of the territories employed in 
    the firm's manufacture of HTSUS heading 7113 articles of jewelry which 
    are a product of the insular possessions and have met the U.S. Customs 
    Service'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. 
    Excluded, however, are wages paid for special services rendered to the 
    firm by accountants, lawyers, or other professional personnel plus any 
    wages paid for the assembly of dutiable jewelry or the repair of 
    dutiable jewelry to the extent that such wages exceed the percentage 
    set forth above. Wages paid to persons engaged in production of jewelry 
    that has entered the U.S. both duty-free and duty-paid may be credited 
    proportionately provided the firm maintains production and payroll 
    records adequate for the Departments' verification of the creditable 
    wages portion (see Sec. 303.17(b)).
        (10) Dutiable jewelry includes jewelry which does not meet the 
    requirements for duty-free entry under General Note 3(a)(iv), HTSUS, 
    and 19 CFR 7.3, contains any material which is the product of any 
    country with respect to which Column 2 rates of duty apply or is 
    ineligible for duty-free treatment pursuant to other laws or 
    regulations.
        (b) Forms.
        (1) ITA--334P ``Annual Application for License to Enter Watches and 
    Watch Movements into the Customs Territory of the United States.'' The 
    Director shall issue instructions for jewelry manufacturers on the 
    completion of the relevant portions of the form. The form must be 
    completed annually by all jewelry producers desiring to receive a duty 
    refund.
        (2) ITA--360P ``Certificate of Entitlement to Secure the Refund of 
    Duties on Watches and Watch Movements.'' This document authorizes a 
    territorial jewelry producer to request the refund of duties on imports 
    of watches, watch movements and parts therefor, with certain 
    exceptions, up to a specified value. 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 Watches and Watch 
    Movements.'' This form must be completed to obtain the refund of duties 
    authorized by the Director through Form ITA-360P. After authentication 
    by the Department of Commerce, it may be used for the refund of duties 
    on items which were entered into the customs territory of the United 
    States during a specified time period. Copies of the appropriate 
    Customs entries must be provided with this form to establish a basis 
    for issuing the claimed amounts. The forms may also be used to transfer 
    all or part of the producer's entitlement to another party (see Sec. 
    303.19(c)).
    
    (The information collection requirements in paragraph (b)(1) were 
    approved by the Office of Management and Budget under control number 
    0625-0040. The information collection requirements in paragraphs (b) 
    (2) and (3) were approved under control number 0625-0134.)
    
    
    Sec. 303. 17  Annual jewelry application.
    
        (a) Form ITA-334P shall be furnished to producers by January 1 and 
    must be completed and returned to the Director no later than January 31 
    of each calendar year.
        (b) All data supplied are subject to verification by the 
    Secretaries and no duty refund shall be made to producers until the 
    Secretaries are satisfied that the data are accurate. To verify the 
    data, representatives of the Secretaries shall have access to relevant 
    company records including, but not limited to:
        (1) Work sheets used to answer all questions on the application 
    form, as specified by the instructions;
        (2) Original records from which such data are derived;
        (3) Records pertaining to ownership and control of the company;
        (4) Records pertaining to all duty-free and dutiable shipments of 
    HTSUS 7113 jewelry, including Customs entry documents;
        (5) Records pertaining to corporate income taxes, gross receipts 
    taxes and excise taxes paid by each producer in the territories;
        (6) Customs, bank, payroll, and production records;
        (7) Records on purchases of components and sales of jewelry, 
    including proof of payment; and
        (8) Any other records in the possession of the parent or affiliated 
    companies outside the territory pertaining to any aspect of the 
    producer's jewelry operations.
        (c) Data verification shall be performed in the territories, unless 
    other arrangements satisfactory to the Departments are made in advance, 
    by the Secretaries' representatives by the end of February of each 
    calendar year. In the event a company cannot substantiate the data in 
    its application, the Secretaries shall determine which data will be 
    used.
        (d) Records subject to the requirements of paragraph (b) of this 
    section, shall be retained for a period of two years following their 
    creation.
    
    
    Sec. 303.18  Sale or transfer of business.
    
        (a) The sale or transfer of a business together with its duty 
    refund entitlement shall be permitted with prior written notification 
    to the Departments. Such notification shall be accompanied by 
    certifications and representations, as appropriate, that:
        (1) The transferee is neither directly nor indirectly affiliated 
    with any other territorial duty refund jewelry recipient in any 
    territory;
        (2) The transferee will not modify the jewelry operations in a 
    manner that will significantly diminish its economic contributions to 
    the territory.
        (b) At the request of the Departments, the transferee shall permit 
    representatives of the Departments to inspect whatever records are 
    necessary to establish to their satisfaction that the certifications 
    and representations contained in paragraph (a) of this section have 
    been or are being met.
        (c) Any transferee who is either unwilling or unable to make the 
    certifications and representations specified in paragraph (a) of this 
    section shall secure the Departments' approval in advance of the sale 
    or transfer of the business. The request for approval shall specify 
    which of the certifications specified in paragraph (a) of this section 
    the firm is unable or unwilling to make, and give reasons why such fact 
    should not constitute a basis for the Departments' disapproval of the 
    sale or transfer.
    
    
    Sec. 303.19  Issuance and use of production incentive certificates.
    
        (a) Issuance of certificates. (1) Certificates of Entitlement, Form 
    ITA-360, shall be issued before March 1 of each year.
        (2) Certificates shall not be issued to more than one jewelry 
    company in the territories owned or controlled by the same corporate 
    entity.
        (b) Security and handling of certificates. (1) Certificate holders 
    are responsible for the security of the certificates. The certificates 
    shall be kept at the territorial address of the producer or at another 
    location having the advance approval of the Departments.
        (2) All refund requests made pursuant to the certificates shall be 
    entered on the reverse side of the certificate.
        (3) Certificates shall be returned by registered, certified or 
    express carrier mail to the Department of Commerce when:
        (i) A refund is requested which exhausts the entitlement on the 
    face of the certificate,
    
    [[Page 67152]]
    
        (ii) The certificate expires, or
        (iii) The Departments request their return with good cause.
        (4) Certificate entitlements may be transferred according to the 
    procedures described in paragraph (c) of this section.
        (c) The use and transfer of certificate entitlements. (1) Insular 
    producers issued a certificate may request a refund by executing a Form 
    ITA-361P (see Sec. 303.16(b)(3)) and the instructions on the form). 
    After authentication by the Department of Commerce, Form ITA-361P may 
    be used to obtain duty refunds on watch movements, watches, and parts 
    therefor. Duties on watch cases not containing a movement and on 
    articles containing any material which is the product of a country with 
    respect to which 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.
        (2) Regulations issued by the U.S. Customs Service, U.S. Department 
    of the Treasury, govern the refund of duties under 19 CFR 7.4. If the 
    Departments receive information from the Customs Service that a 
    producer has made unauthorized use of any official form, they may 
    cancel the affected certificate.
        (3) The territorial producer may transfer a portion of all of its 
    certificate entitlement to another party by entering in block C of Form 
    ITA-361P the name and address of the party.
        (4) After a Form ITA-361P transferring a certificate entitlement to 
    a party other than the certificate holder has been authenticated by the 
    Department of Commerce, the form may be exchanged for any consideration 
    satisfactory to the two parties. In all cases, authenticated forms 
    shall be transmitted to the certificate holder or its authorized 
    custodian for disposition (see paragraph (b) of this section).
        (5) All disputes concerning the use of an authenticated Form ITA-
    361P shall be referred to the Departments for resolution. Any party 
    named on an authenticated Form ITA-361P shall be considered an 
    ``interested party'' within the meaning of Sec. 303.21 of this part.
    
    
    Sec. 303.20  Duty refund.
    
        (a) Territorial jewelry producers are entitled to duty refund 
    certificates only for jewelry that they produce which is provided for 
    in heading 7113, HTSUS, is a product of a territory and otherwise meets 
    the requirements for duty-free entry under General Note 3 (a)(iv), 
    HTSUS, and 19 CFR 7.3.
        (1) An article of jewelry is considered to be a product of a 
    territory if:
        (i) The article is wholly the growth or product of the territory; 
    or
        (ii) The article became a new and different article of commerce as 
    a result of production or manufacture performed in the territories.
        (2) Two-year exception. Any article of jewelry provided for in 
    heading 7113, HTSUS, entered or withdrawn from warehouse for 
    consumption during the two-year period beginning August 9, 1999, that 
    is assembled in a territory shall be considered a product of the 
    insular possessions. At the expiration of the two-year period, only 
    jewelry which satisfies either of the criteria set forth in paragraph 
    (a)(1) of this section shall be considered a product of an insular 
    possession.
        (b) Calculation of the value of production incentive certificates. 
    (1) The value of each producer's certificate shall equal the producer's 
    average creditable wages per unit shipped free of duty into the United 
    States 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 times a factor of 
    80%; plus
        (iv) Incremental shipments up to 750,000 units times a factor of 
    75%.
        (2) The Departments may make adjustments for these data in the 
    manner set forth in Sec. 303.17(c).
    
    
    Sec. 303.21  Appeals.
    
        (a) Any official decision or action relating to the issuance or use 
    of production incentive certificates may be appealed to the Secretaries 
    by any interested party. Such appeals must be received within 30 days 
    of the date on which the decision was made or the action taken in 
    accordance with the procedures set forth in paragraph (b) of this 
    section. Interested parties may petition for the issuance of a rule, or 
    amendment or repeal of a rule issued by the Secretaries. Interested 
    parties may also petition for relief from the application of any rule 
    on the basis of hardship or extraordinary circumstances resulting in 
    the inability of the petitioner to comply with the rule.
        (b) Petitions shall bear the name and post office address of the 
    petitioner and the name and address of the principal attorney or 
    authorized representative (if any) for the party concerned. They shall 
    be addressed to the Secretaries and filed in one original and two 
    copies with the U.S. Department of Commerce, Import Administration, 
    International Trade Administration, Washington, DC 20230, Attention: 
    Statutory Import Programs Staff. Petitions shall contain the following:
        (1) A reference to the decision, action or rule which is the 
    subject of the petition;
        (2) A short statement of the interest of the petitioner;
        (3) A statement of the facts as seen by the petitioner;
        (4) The petitioner's argument as to the points of law, policy or 
    fact. In cases where policy error is contended, the alleged error 
    together with the policy the submitting party advocates as the correct 
    one should be described in full;
        (5) A conclusion specifying the action that the petitioner believes 
    the Secretaries should take.
        (c) The Secretaries may at their discretion schedule a hearing and 
    invite the participation of other interested parties.
        (d) The Secretaries shall communicate their decision, which shall 
    be final, to the petitioner by registered, certified or express mail.
    Joseph A. Spetrini,
    Acting Assistant Secretary for Import Administration, Department of 
    Commerce.
    Ferdinand Aranza,
    Director, Office of Insular Affairs, Department of the Interior.
    [FR Doc. 99-30971 Filed 11-30-99; 8:45 am]
    BILLING CODE 3510-DS-P 4310-93-P
    
    
    

Document Information

Effective Date:
12/1/1999
Published:
12/01/1999
Department:
Interior Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-30971
Dates:
December 1, 1999.
Pages:
67148-67152 (5 pages)
Docket Numbers:
Docket No. 990813222-9309-02
RINs:
0625-AA55: External Production Incentives Benefits to Jewelry Manufacturers in the U.S. Insular Possessions
RIN Links:
https://www.federalregister.gov/regulations/0625-AA55/external-production-incentives-benefits-to-jewelry-manufacturers-in-the-u-s-insular-possessions
PDF File:
99-30971.pdf
CFR: (9)
15 CFR 303.19(c))
15 CFR 303
15 CFR 303.15
15 CFR 303.16
15 CFR 303.17
More ...