[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR303.20]

[Page 35]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
 CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 303--WATCHES, WATCH MOVEMENTS AND JEWELRY PROGRAM--Table of Contents
 
                           Subpart B--Jewelry
 
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heading 7113, HTSUS, entered or withdrawn from warehouse for consumption 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).