[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: 15CFR303.3]

[Page 22-23]
 
                  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 A--Watches and Watch Movements
 
Sec. 303.3  Determination of the total annual duty-exemption.

    (a) Procedure for determination. If, after considering the 
productive capacity of the territorial watch industry and the economic 
interests of the territories, the Secretaries determine that the amount 
of the total annual duty-exemption, or the territorial shares of the 
total amount, should be changed, they shall publish in the Federal 
Register a proposed limit on the quantity of watch units which may enter 
duty-free into the customs territory of the

[[Page 23]]

United States and proposed territorial shares thereof and, after 
considering comments, establish the limit and shares by Federal Register 
notice. If the Secretaries take no action under this section, they shall 
make the allocations in accordance with the limit and shares last 
established by this procedure.
    (b) Standards for determination. (1) Notwithstanding paragraph 
(b)(2) of this section, the limit established for any year may be 
7,000,000 units if the limit established for the preceding year was a 
smaller amount.
    (2) Subject to paragraph (c) of this section, the total annual duty-
exemption shall not be decreased by more than 10% of the quantity 
established for the preceding calendar year, or increased, if the 
resultant total is larger than 7,000,000, by more than 20% of the 
quantity established for the calendar year immediately preceding.
    (3) The Secretaries shall determine the limit after considering the 
interests of the territories; the domestic or international trade policy 
objectives of the United States; the need to maintain the competitive 
nature of the territorial industry; the total contribution of the 
industry to the economic well-being of the territories; and the 
territorial industry's utilization of the total duty-exemption 
established in the preceding year.
    (c) Determinations based on consumption. (1) The Secretaries shall 
notify the International Trade Commission whenever they have reason to 
believe duty-free watch imports from the territories will exceed 
9,000,000 units, or whenever they make a preliminary determination that 
the total annual duty-exemption should exceed 10,000,000 units.
    (2) In addition to the limitations in paragraph (b) of this section, 
the Secretaries shall not establish a limit exceeding one-ninth of 
apparent domestic consumption if such consumption, as determined by 
International Trade Commission, exceeds 90 million units.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 7170, Feb. 21, 1985; 50 
FR 43568, Oct. 28, 1985; 53 FR 52994, Dec. 30, 1988]