Proposed Limit on Duty-Free Insular Watches in Calendar Year 1998

DEPARTMENT OF COMMERCE

International Trade Administration

15 CFR Part 303

DEPARTMENT OF THE INTERIOR

Office of Insular Affairs

[Docket No. 971021249-7249-01]

RIN 0625-AA50

Proposed Limit on Duty-Free Insular Watches in Calendar Year 1998

AGENCIES: Import Administration, International Trade Administration,

Department of Commerce; Office of Insular Affairs, Department of the

Interior.

ACTION: Proposed rule and request for comments.

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SUMMARY: This action invites public comment on a proposal to amend the

ITA regulations, which govern duty-exemption allocations and duty-

refund entitlements for watch producers in the United States' insular

possessions (the Virgin Islands, Guam and American Samoa) and the

Northern Mariana Islands. The proposed amendments would establish the

total quantity and respective territorial shares of insular watches and

watch movements which would be allowed to enter the United States free

of duty during calendar year 1998 and make a minor adjustment to the

verification of shipments.

DATES: Comments must be received on or before December 5, 1997.

ADDRESSES: Address written comments to Faye Robinson, Program Manager,

Statutory Import Programs Staff, Room 4211, U.S. Department of

Commerce, Washington, D.C. 20230.

FOR FURTHER INFORMATION CONTACT:

Faye Robinson, (202) 482-3526, same address as above.

SUPPLEMENTARY INFORMATION: The insular possessions watch industry

provision in Section 110 of Public Law 97-446 (96 Stat. 2331) (1983) as

amended by Section 602 of Public Law 103-465 (108 Stat. 4991) (1994)

additional U.S. Note 5 to chapter 91 of the HTS 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 Northern Mariana Islands. Regulations on the

establishment of these quantities and shares are contained in

Secs. 303.3 and 303.4 of title 15, Code of Federal Regulations (15 CFR

303.3 and 303.4). The Departments propose to establish for calendar

year 1998 a total quantity and respective territorial shares as shown

in the following table:

Virgin Islands............................................. 2,600,000

Guam....................................................... 500,000

American Samoa............................................. 500,000

Northern Mariana Islands................................... 500,000

Compared to the total quantity established for 1997 (61 FR 55883;

October 30, 1996), this amount would be a decrease of 500,000 units.

The proposed Virgin Islands territorial share would be reduced by

500,000 and the shares for Guam, American Samoa and the Northern

Mariana Islands would not change. The amount we proposed for the Virgin

Islands is more than sufficient for the anticipated needs of all the

existing producers.

The proposed rule would also modify Sec. 303.6(a). Currently, the

Departments are able to verify shipments through the U.S. Customs

Service. However, due to informal entry procedures on some shipments or

other problems, Commerce is occasionally unable to verify an entry. We

propose allowing producers to

[[Page 59830]]

provide other means of verification satisfactory to the Secretaries in

these situations.

The proposed rule does not contain policies with Federalism

implications sufficient to warrant preparation of a Federalism

assessment under Executive Order 12612.

Regulatory Flexibility Act. In accordance with the Regulatory

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

for Legislation and Regulation has certified to the Chief Counsel,

Small Business Administration, that the proposed rule will not have a

significant economic impact on a substantial number of small entities.

This is because the rulemaking is primarily to make technical changes.

Paperwork Reduction Act. This rulemaking involves information

collection activities subject to the Paperwork Reduction Act of 1980,

44 U.S.C. 3501 et seq. which is currently approved by the Office of

Management and Budget under control number 0625-0134. The amendments

would have no effect on the information burden on the public.

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.

It has been determined that the proposed 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, we propose to amend 15 CFR Part 303 as

follows:

PART 303--[AMENDED]

Sec. 303.6 [Amended]

1. Section 303.6(a) is amended by adding to the second to last

sentence ``, or verified by other means satisfactory to the

Secretaries,'' after the words U.S. Customs Service.

Sec. 303.14 [Amended]

2. Section 303.14(e) is amended by removing ``3,100,000'' and

adding ``2,600,000'' in its place.

Robert S. LaRussa,

Assistant Secretary for Import Administration.

Allen Stayman,

Director, Office of Insular Affairs.

[FR Doc. 97-29198 Filed 11-4-97; 8:45 am]

BILLING CODE 3510-DS-M and 4310-93-M