96 STAT. 2330 19 USC 1202 note. and PUBLIC LAW 97-446—JAN. 12, 1983 (3) by amending the superior heading for items 346.15 through 346.24 to read as follows: Fabric of velveteen construction, are cut: SEC. 106. REDUCTION OF DUTY ON CERTAIN FOURDRINIER WIRE. (a) IN GENERAL.-Subpart B of part 3 of schedule 6 is amended by striking out item 642.30 and inserting in lieu thereof the following: (b) APPLICATION WITH OTHER PROVISIONS.— (1) The rate of duty in column numbered 1 for items 642.31 and 642.34 (as added by subsection (a)) shall be subject to any staged rate reductions for item 642.30 which were proclaimed by the President before the 15th day after the date of the enactment of this Act. (2) Whenever the rate of duty specified in column numbered 1 for such item 642.31 or 642.34 is reduced to the same level as the corresponding rate of duty specified in the column entitled "LDDC" for such item, or to a lower level, the rate of duty in such "LDDC" column shall be deleted. SEC. 107. REDUCTION OF DUTY ON CERTAIN CERAMIC INSULATORS. (a) IN GENERAL.-Subpart D of part 2 of schedule 5 is amended by inserting immediately after item 535.12 the following new item: (b) REPEAL.-Item 909.20 of the Appendix is repealed. 60% ad val. (c) PHASE-DOWN OF TEMPORARY RATE.-Effective with respect to articles entered after December 31, 1983, item 535.13 (as added by subsection (a)) is amended by striking out “3.6% ad val." and inserting in lieu thereof "3.5% ad val.". SEC. 108. PERMANENT DUTY-FREE TREATMENT OF YANKEE DRYER (a) IN GENERAL.-Subpart D of part 4 of schedule 6 is amended by inserting immediately after item 668.04 the following new item: (b) REPEAL.-Item 912.06 of the Appendix is repealed. SEC. 109. CERTAIN AIRCRAFT COMPONENTS AND MATERIALS. In the case of any aircraft which (1) was previously exported from the United States, (2) was composed, at the time of such exportation in part of components and materials which are products of the United States and which were installed (A) while such aircraft was within the United States, and PUBLIC LAW 97-446-JAN. 12, 1983 (B) after such aircraft was operational, (3) is returned to the United States after being so exported without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, and (4) was entered for consumption before 1970, 96 STAT. 2331 the rate of duty provided for in item 694.40 on the date of such entry shall, notwithstanding any other provision of law, be assessed upon the full value of such aircraft less the value of such components and materials; and such entry shall, notwithstanding the provisions of section 514 of the Tariff Act of 1930 or any other provision of law, be 19 USC 1514. reliquidated on the basis of such assessment. For the purposes of this section, the value of any such component or material is the cost of such component or material at the time of installation in the aircraft plus the cost of such installation. SEC. 110. WATCHES. note. (a) PRODUCTS OF INSULAR POSSESSIONS DEFINED.—Paragraph (a)(i) 19 USC 1202 of headnote 3 of the General Headnotes and Rules of Interpretation is amended by striking out "(or more than 70 percent of the total value with respect to watches and watch movements)". (b) RATE OF DUTY ON WATCHES.-Headnote 6 of schedule 7, part 2, subpart E is amended (1) by striking out "paragraph (b)" in paragraph (a) and inserting in lieu thereof "paragraphs (b) through (h)"; and (2) by striking out "an insular possession of the United States outside the customs territory of the United States" in paragraph (a), and inserting in lieu thereof "the Virgin Islands, Guam, and American Samoa (hereinafter referred to as the 'insular possessions')"; and (3) by striking our paragraphs (b) through (d) and inserting in lieu thereof the following new paragraphs: "(b) Watches and watch movements produced or manufactured in a United States insular possession which contain any foreign component may be admitted free of duty without regard to the value of the foreign materials such watches contain if they conform with the provisions of this headnote, but the total quantity of such articles entered free of duty shall not exceed the amounts established by or pursuant to paragraph (c) of this headnote. “(c) Notwithstanding the provisions of paragraph (b) of this headnote, the provisions of this headnote and the benefits thereunder shall not apply to any article containing any material which is the product of any country with respect to which column 2 rates of duty apply. “(d)(i) In calendar year 1983 the total quantity of such articles which may be entered free of duty shall not exceed 4,800,000 units. "(ii) In subsequent calendar years, the Secretary of Commerce and Limitations. the Secretary of the Interior (hereinafter referred to as the "Secretaries"), acting jointly, shall establish a limit on the quantity which may be entered free of duty during the calendar year, and shall consider whether such limit is in the best interest of the insular possessions and not inconsistent with domestic or international trade policy considerations. The quantity the Secretaries establish in any calendar year under this paragraph shall not "(I) exceed 10,000,000 units, or one-ninth of apparent domestic consumption (as determined by the International Trade Com 96 STAT. 2332 Publication in Federal Territorial shares. Allocations. PUBLIC LAW 97-446-JAN. 12, 1983 mission pursuant to paragraph (d) of this headnote), whichever is greater; "(II) be decreased by more than 10 percent of the quantity established for the immediately preceding calendar year; and "(III) be increased to more than 7,000,000 units, or by more than 20 percent of the quantity established for the immediately preceding calendar year, whichever is greater. "(e) on or before April 1 of each calendar year (beginning with the first year in which watch imports from the United States insular possessions exceed 9,000,000 units), the International Trade Commission shall determine the apparent United States consumption of watches and watch movements (including solid state timepieces) during the preceding calendar year, shall report such determination to the Secretaries, and shall publish such determination in the Federal Register. "(f)(i) In calendar year 1983, not more than 3,000,000 units of the total quantity of articles described in paragraph (d) which may be entered free of duty shall be the product of the Virgin Islands, not more than 1,200,000 units shall be the product of Guam, and not more than 600,000 units shall be the product of American Samoa. "(ii) For calendar year 1984 and thereafter, the Secretaries may establish new territorial shares of the total amount which may be entered free of duty, taking into account the capacity of each territory to produce and ship its assigned amounts. A territory's share in any year shall not be reduced "(I) by more than 200,000 units in calendar year 1984 or 1985, and "(II) by more than 500,000 units in calendar year 1986 or thereafter, except that no territorial share shall be established at less than 500,000 units. "(g) The Secretaries, acting jointly, shall allocate the calendar year duty exemptions provided by paragraphs (b), (d), and (f) of this headnote on a fair and equitable basis among producers located in the insular possessions, and shall issue appropriate licenses therefor. Allocations made by the Secretaries shall be final. In making the allocations, the Secretaries shall consider the potential impact of territorial production on domestic production of like articles and shall establish allocation criteria (including minimum assembly requirements) that will reasonably maximize the net amount of direct economic benefits to the insular possessions. "(h)(i) In the case of each calendar year beginning after December 31, 1982, and before January 1, 1995, the Secretaries, acting jointly, shall "I) verify the wages paid by each producer to permanent residents of the insular possessions during the preceding calendar year, and "(II) issue to each producer (not later than March 1 of such 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 "(I) 90 percent of the producer's creditable wages on the assembly during the preceding calendar year of the first 300,000 units, plus "(II) the applicable graduated declining percentage (determined each year by the Secretaries) of the producer's creditable PUBLIC LAW 97-446—JAN. 12, 1983 wages on the assembly during the preceding calendar year of units in excess of 300,000 but not in excess of 750,000. 96 STAT. 2333 "(iii) The aggregate amount of all certificates which are issued Certificates. during any calendar year shall not exceed an amount which bears the same ratio to $5,000,000 as "(I) the gross national product of the United States (as determined by the Secretary of Commerce) for the preceding calendar year, bears to "(II) the gross national product of the United States (as so determined) for 1982. "(iv) (I) Subject to the provision of clause (II), if the amount of the certificates issued under subparagraph (i) would exceed the limit under subparagraph (iii), the applicable amount of each producer's certificate shall be reduced proportionately by the amount of such excess. "(II) The applicable amount of any producer's certificate shall not be reduced below the amount determined under subparagraph (ii)(I), except that if the application of this clause would result in the aggregate amount of the certificates exceeding the limit under subparagraph (iii), the applicable amount of each producer's certificate shall again be reduced proportionately by the amount of the excess determined after application of this clause. "(v) Any certificate issued under subparagraph (i) shall entitle the Refund. certificate holder to secure the refund of duties equal to the face value of the certificate on watches, watch movements (including solid state timepieces) and, with the exception of discrete cases, parts therefor 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. "(vi) Any certificate issued under subparagraph (i), or any portion thereof, shall be negotiable. certificate. "(vii) Any certificate issued under subparagraph (i) shall expire 1 Expiration of year from the date of issuance and may be applied against duties on imports of watches and watch movements the entry of which were made within 2 years prior to the date of issuance of the certificate. "(viii) For purposes of determining the applicable amount of any producer's certificate to be issued during calendar year 1983, the greater of— "(I) the producer's creditable wages for calendar year 1982, or "(II) 60 percent of the producer's creditable wages for calendar year 1981, shall be considered the creditable wages for calendar year 1982. "(i) The Secretaries are authorized to issue such regulations, not Regulations. inconsistent with the provisions of this headnote, as they determine necessary to carry out their respective duties under this headnote. Such regulations shall include minimum assembly requirements. Any duty-free entry determined not to have been made in accordance with applicable regulations shall be subject to the applicable civil remedies and criminal sanctions, and, in addition, the Secretaries may cancel or restrict the license or certificate of any manufacturer found in willful violation of the regulations.". SEC. 111. PIPE ORGAN PARTS. Items 726.60 and 726.62 are amended to read as follows: 19 USC 1202 note. 96 STAT. 2334 19 USC 1202 note. PUBLIC LAW 97–446—JAN. 12, 1983 SEC. 112. ELIMINATION OF DUTY ON TOY TEA SETS. Subpart E of part 5 of schedule 7 is amended by inserting immediately after item 737.70 the following new item: 44 737.73 Toy tea sets of ceramic ware made Free SEC. 113. CLASSIFICATION OF DOLLS AND TOY FIGURES. 70% ad val. (a) IN GENERAL.-Subpart E of part 5 of schedule 7 is amended(1) by adding at the end of the headnotes thereto the following new headnotes: "3. For the purposes of the superior heading to items 737.47 and 737.49 and of item 737.51, 'toy figures of inanimate objects' are only imaginary creatures that either "(i) do not possess features of human or other earthly creatures; "(ii) possess both earthly and non-earthly features but are predominantly non-earthly in nature; or "(iii) possess features which are a hybrid of features of more then one animate object. This definition does not cover toy figures of objects which are readily recognizable as vegetables, minerals, robots, or machines, whether or not such figures possess humanoid or earthly features. "4. Items 737.23, 737.28, 737.30, and 737.47 do not include any doll or toy that either “(i) will maintain the three dimensional shape of its torso if the stuffing or filler is removed, or "(ii) is constructed such that the 'filler' material consists of one piece (such as one piece of foam rubber) or more than one piece that achieves the same effect as one piece. "5. For the purposes of items 737.26 and 737.51, 'skins' are the outer coverings or shells of those dolls or toy figures which, if imported stuffed or filled, would be classified in items 737.23, 737.28, 737.30, and 737.47, but do not contain stuffing or filling in the torso when imported. "6. For the purposes of item 737.47, the term 'filled' includes toy figures which are not completely filled or are filled with materials such as plastic beads or crushed nutshells but which otherwise possess the characteristics of toy figures classifiable as 'stuffed'."; (2) by redesignating items 737.45 and 737.50 as 737.42 and 737.43, respectively; and 44 737.47 (3) by adding in numerical sequence the following new items: (1) The rates of duty in column numbered 1 for items 737.47, 737.49, and 737.51 (as added by subsection (a)(3)) shall be subject to any staged rate reductions for item 737.95 which are proclaimed by the President before the 15th day after the date of the enactment of this Act. |