[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR303.4]

[Page 23-24]
 
                  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.  303.4  Determination of territorial distribution.

    (a) Procedure for determination. The Secretaries shall determine the 
territorial shares concurrently with their determination of the total 
annual duty exemption, and in the same manner (see Sec.  303.3, above).
    (b) Standards for determination--(1) Limitations. A territorial 
share may not be reduced by more than 500,000 units in any calendar 
year. No territorial share shall be less than 500,000 units.
    (2) Criteria for setting precise quantities. The Secretaries shall 
determine the precise quantities after considering, inter alia, the 
territorial capacity to produce and ship watch units. The Secretaries 
shall further bear in mind the aggregate benefits to the territories, 
such as creditable wages paid, creditable wages per unit exported, and 
corporate income tax payments.
    (3) Limitations on reduction of share. The Secretaries shall not 
reduce a territory's share if its producers use 85%

[[Page 24]]

or more of the quantity distributed to that territory in the immediately 
preceding year, except in the case of a major increase or decrease in 
the number of producers in a territory or if they believe that a 
territorial industry will decrease production by more than 15% from the 
total of the preceding year.
    (4) Standby redistribution authority. The Secretaries may 
redistribute territorial shares if such action is warranted by 
circumstances unforeseen at the time of the initial distributions, such 
as that a territory will use less than 80% of its total by the end of a 
calendar year, or if a redistribution is necessary to maintain the 
competitive nature of the territorial industries.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 7170, Feb. 21, 1985]