[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: 15CFR303.9]

[Page 27-28]
 
                  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.  303.9  Restrictions on the transfer of duty-exemptions.

    (a) The sale or transfer of a duty-exemption from one firm to 
another shall not be permitted.
    (b) The sale or transfer of a business together with its duty-
exemption shall be permitted with prior written notification to the 
Departments. Such notification shall be accompanied by certifications 
and representations, as appropriate, that:
    (1) If the transferee is a subsidiary of or in any way affiliated 
with any other company engaged in the production of watch movements 
components being offered for sale to any territorial producer, the 
related company or companies will continue to offer such watch and watch 
movement components on equal terms and conditions to all willing buyers 
and shall not engage in any practice, in regard to the sale of 
components, that competitively disadvantages the non-affiliated 
territorial producers vis-a-vis the territorial subsidiary;
    (2) The sale or transfer price for the business together with its 
duty-exemption does not include the capitalization of the duty-exemption 
per se;
    (3) The transferee is neither directly or indirectly affiliated with 
any other territorial duty-exemption holder in any territory;
    (4) The transferee will not modify the watch assembly operations of 
the duty-exemption firm in a manner that will significantly diminish its 
economic contributions to the territory.
    (c) At the request of the Departments, the transferee shall permit 
representatives of the Departments to inspect whatever records are 
necessary to establish to their satisfaction that the certifications and 
representations

[[Page 28]]

contained in paragraph (b) of this section have been or are being met.
    (d) Any transferee who is either unwilling or unable to make the 
certifications and representations specified in paragraph (b) of this 
section shall secure the Departments' approval in advance of the sale or 
transfer of the business together with its duty-exemption. The request 
for approval shall specify which of the certifications specified in 
paragraph (b) of this section the firm is unable or unwilling to make, 
and give reasons why such fact should not constitute a basis for the 
Departments' disapproval of the sale or transfer.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985]