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I 106TH CONGRESS 2D SESSION H. R. 5127 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 SEPTEMBER 7, 2000 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- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. AMENDMENTS TO UNITED STATES INSULAR 3 POSSESSION PROGRAM. 4 (a) PRODUCTION CERTIFICATES.—The additional 5 U.S. Note 5(h) to chapter 91 of the Harmonized Tariff 6 Schedule of the United States is amended— 7 2 •HR 5127 IH (1) by amending subparagraphs (i) and (ii) to 1 read as follows: 2 ‘‘(i) In the case of each calendar quarter beginning after 3 January 1, 2001, and before January 1, 2015, the 4 Secretaries jointly, shall: 5 ‘‘(A) verify for the preceding calendar quarter both 6 the wages paid by each producer to permanent 7 residents of the insular possessions (including 8 the value of any fringe benefits) and the total 9 quantity and value of watches produced in the 10 insular possessions and imported into the cus- 11 toms territory of the United States; and 12 ‘‘(B) issue to each producer (not later than 30 days 13 after the end of the calendar quarter) a certifi- 14 cate for the applicable amount. 15 ‘‘(ii) For purposes of subparagraph (i), except as provided 16 in subparagraphs (iii) and (iv), the term ‘applicable 17 amount’ means an amount equal to the sum of: 18 ‘‘(A) 90 percent of the producer’s creditable wages 19 (including the value of any fringe benefits) on 20 watch assembly during the preceding calendar 21 quarter (but only the first 300,000 units per 22 calendar year); plus 23 ‘‘(B) the applicable graduated declining percentage 24 (determined each year by the Secretaries) of the 25 3 •HR 5127 IH producer’s creditable wages (including the value 1 of any fringe benefits) on the assembly during 2 the preceding calendar quarter for units in ex- 3 cess of 300,000 that calendar year, but not in 4 excess of 750,000 that calendar year; plus 5 ‘‘(C) the difference between the duties that would 6 have been due on the producer’s watches (ex- 7 cluding digital watches) imported into the cus- 8 toms territory of the United States during the 9 preceding quarter if they had been imported 10 from a country eligible for normal trade rela- 11 tions subject to duty at the rates set forth in 12 column 1 under this chapter that were in effect 13 on January 1, 2000, and the duties that would 14 have been due on those watches if they had 15 been imported from the same country under the 16 tariffs in effect for the preceding calendar quar- 17 ter.’’; and 18 (2) by amending subparagraph (v) to read as 19 follows: 20 ‘‘(v)(A) Any certificate issued under subparagraph (i) 21 shall entitle the certificate holder to secure the refund 22 of duties equal to the face value of the certificate on 23 watches, watch movements and, with the exception of 24 discrete cases, parts therefor imported into the cus- 25 4 •HR 5127 IH toms territory of the United States by the certificate 1 holder. Such refunds shall be made under regulations 2 issued by the Treasury Department. Not more than 3 5 percent of such refunds may be retained as a reim- 4 bursement to the Customs Service for the administra- 5 tive costs of making the refunds. If the Secretary of 6 the Treasury determines that there is an insufficient 7 level of duties from watch and watch-related tariffs, 8 the Secretary may authorize refunds of duties col- 9 lected on jewelry under chapter 71 or any other du- 10 ties that the Secretary determines are appropriate. 11 ‘‘(B) At the election of the certificate holder and upon 12 making the certification described in this clause, the 13 Secretary of the Treasury shall pay to the holder the 14 face value of the certificate, less the value of (1) any 15 duty refund claimed by the holder under the certifi- 16 cate, plus (2) a discount of not more than 2 percent 17 of the face value of the certificate, as determined by 18 the Secretary of the Treasury. A certificate holder 19 shall not be eligible for direct payment under this 20 clause unless the certificate holder certifies to the 21 Secretaries that the funds received will be reinvested 22 or utilized to support and continue employment in the 23 Virgin Islands. 24 5 •HR 5127 IH ‘‘(C) The Secretary of the Treasury is authorized to make 1 the payments provided for in clause (B) from duties 2 collected on watches, watch movements and, with the 3 exception of discrete cases, parts therefor. If such du- 4 ties are insufficient, the Secretary of the Treasury is 5 authorized to make those payments from duties col- 6 lected on jewelry under chapter 71 or any other du- 7 ties that the Secretary determines are appropriate.’’. 8 (b) JEWELRY.—Additional U.S. Note to chapter 71 9 of the Harmonized Tariff Schedule of the United States 10 is amended— 11 (1) by redesignating paragraphs (b), (c), (d), 12 and (e) as paragraphs (c), (d), (e), and (f), respec- 13 tively; 14 (2) by inserting after paragraph (a) the fol- 15 lowing new paragraph: 16 ‘‘(b) The 750,000 unit limitation in additional U.S. Note 17 5(h)(ii)(B) to chapter 91 shall not apply to articles 18 of jewelry subject to this note.’’; and 19 (3) by striking paragraph (f), as so redesig- 20 nated, and inserting the following: 21 ‘‘(f) Notwithstanding any other provision of law, prior to 22 February 9, 2003, any article of jewelry provided for 23 in heading 7113 that is assembled in the Virgin Is- 24 lands, Guam, or American Samoa shall be treated as 25 6 •HR 5127 IH a product of the Virgin Islands, Guam, or American 1 Samoa for purposes of this note and General Note 2 3(a)(iv) of this Schedule.’’. 3 SEC. 2. EFFECTIVE DATE. 4 The amendments made by this Act shall take effect 5 on April 1, 2001, with respect to goods imported into the 6 customs territory of the United States on or after January 7 1, 2001. 8 Æ