AMENDMENTS TO UNITED STATES INSULAR POSSESSION PROGRAM.

SEC. 1562. AMENDMENTS TO UNITED STATES INSULAR POSSESSION PROGRAM.(a) Production Certificates.—Additional U.S. Note 5(h) to chapter 91 is amended—(1) by amending subparagraphs (i) and (ii) to read as follows:“(i) In the case of each of calendar years 2003 through 2015, the Secretaries jointly, shall—“(A) verify—“(1) the wages paid by each producer to permanent residents of the insular possessions during the preceding calendar year (including the value of usual and customary health insurance, life insurance, and pension benefits); and“(2) the total quantity and value of watches and watch movements produced in the insular possessions by that producer and imported free of duty 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 usual and customary health insurance, life insurance, and pension benefits) on the assembly during the preceding 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 usual and customary health insurance, life insurance, and pension benefits) on the assembly during 118 STAT. 2583 the preceding calendar year of units in excess of 300,000 but not in excess of 750,000; plus“(C) the difference between the duties that would have been due on each producer’s watches and watch movements (excluding digital watches and excluding units in excess of the 750,000 limitation of this subparagraph) imported into the customs territory of the United States free of duty during the preceding calendar year if the watches and watch movements had been subject to duty at the rates set forth in column 1 under this chapter that were in effect on January 1, 2001, and the duties that would have been due on the watches and watch movements if the watches and watch movements had been subject to duty at the rates set forth in column 1 under this chapter that were in effect for such preceding calendar year.”; and(2) by amending subparagraph (v) to read as follows:“(v) Any certificate issued under subparagraph (i) shall entitle the certificate holder to secure a refund of duties equal to the face value of the certificate on any articles that are imported into the customs territory of the United States by the certificate holder. Such refunds shall be made under regulations issued by the Treasury Department. Not more than 5 percent of such refunds may be retained as a reimbursement to the Customs Service for the administrative costs of making the refunds.”. (b) Jewelry.—Additional U.S. Note 3 to chapter 71 is amended—(1) by redesignating paragraphs (b), (c), (d), and (e) as paragraphs (c), (d), (e), and (f), respectively;(2) by inserting after paragraph (a) the following new paragraph:“(b) Notwithstanding additional U.S. Note 5(h)(ii)(B) to chapter 91, articles of jewelry subject to this note shall be subject to a limitation of 10,000,000 units.”; and(3) by striking paragraph (f), as so redesignated, and inserting the following:“(f) Notwithstanding any other provision of law, any article of jewelry provided for in heading 7113 that is assembled in the Virgin Islands, Guam, or American Samoa by a jewelry manufacturer or jewelry assembler that commenced jewelry manufacturing or jewelry 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 General 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 jewelry manufacturing or jewelry assembly operations in the Virgin Islands, Guam, or American Samoa.”.(c) Effective Date.—The amendments made by this section shall apply with respect to goods imported into the customs territory of the United States on or after January 1, 2003.