Watch component duty-free amount may be raised for U.S. possessions

Watch component duty-free amount may be raised for U.S. possessions    The U.S. Commerce and Interior Departments have proposed to amend their regulations governing watch duty-exemption allocations and the watch and jewelry duty-refund benefits for producers in the American possessions of the U.S. Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Mariana Islands.
   The departments want to increase the maximum total value of components per watch that are eligible for duty-free entry into the United States from $500 to $800.
   Manufacturers in the so-called “insular watch program” requested the increase because of substantial increases in gold prices and the weakened U.S. dollar against the euro. Also an adjustment in the maximum value has not been made by the U.S. government since 1998.
   “Raising the value levels of watch components that may be used in the assembly of duty-free watches will help producers maintain the level of diversity in the kinds of watches they assemble, thereby affording them an opportunity to maintain or hopefully increase shipments and raise territorial employment,” the Commerce and Interior departments said.
   The departments will accept comments regarding the proposed rulemaking through July 30. For more information, contact Faye Robinson at (202) 482-3526.