CERTAIN CLOCKS, CASES, AND MOVEMENTS.

SEC. 102. CERTAIN CLOCKS, CASES, AND MOVEMENTS.Section 4003 (exemptions from tax on jewelry and related items) is amended by adding at the end thereof the following new subsections: “(c) Clocks Subject to Manufacturers Tax.—The tax imposed by section 4001 shall not apply to a clock or watch, or to a case or movement for a clock or watch, if a tax in respect of such clock, watch, case, or movement was imposed under chapter 32 by reason of its sale (1) as a part or accessory, or (2) on or in connection with or with the sale of any article; “(d) Certain Parts of Control or Regulatory Devices.—The tax imposed by section 4001 shall not apply to a clock or watch, or to a case or movement for a clock or watch, if such clock, watch, case, or movement is (1) a part of a control or regulatory device which is an article (or part thereof) not taxable under chapter 32, or (2) sold as a repair or replacement part for such a device.”