Details of the Senate-Passed Miscellaneous Trade and Technical Corrections Act

Senator's "Hold" is Preventing House-Senate Conference

As the House and Senate have passed different versions of H.R. 1047, the next step would normally be a House-Senate conference to resolve the differences between the two versions of the bill.

However, Congressional sources state that a Senator has placed a "hold" on the Senate's version of H.R. 1047 which prevents a House-Senate conference from being convened.

Congressional sources note that if this "hold" can be lifted, the Senate is expected to request a conference with the House to resolve the differences in their two versions of H.R. 1047. If resolved in this manner, each body would then pass the conference version of H.R. 1047, which would then be sent to the President for enactment.

This is Part XII of a multi-part series of summaries on the Senate-passed version of H.R. 1047 (H.R. 1047) and covers a study and report on Customs user fees, the extension of San Antonio Airport's designation for processing certain private aircraft, and amendments to the U.S. insular possessions program for watches and jewelry. See future issues for additional summaries on H.R. 1047.

Study and Report on Customs User Fees

H.R. 1047 would amend section 336 of the Trade Act of 2002 (Public Law (P.L.) 107-210), which provides for a study and report on Customs user fees, in order to:

provide a 60-day extension of the report's due date;

state that the report covers the extent to which the amount of each customs user fee imposed under 19 USC 58c(a) approximates the cost of services provided by U.S. Customs and Border Protection (CBP) relating to the fee so imposed (rather than the extent to which each Customs user fee is commensurate with the level of services provided by CBP, as it now states); and

provide a more complete description of the government bodies to whom the report may be disclosed (e.g., committees or members of Congress and CBP, but not the public).

Subscribers should note that even with a 60-day extension, the report would be due by approximately February 5, 2003 (i.e. 180 days from the enactment of P.L. 107-210).

Designation of San Antonio International Airport for Processing Certain Private Aircraft Extended

H.R. 1047 would extend for an additional two years (for a total of four years from the November 9, 2000 date of enactment of the Tariff Suspension and Trade Act of 2000 (P.L. 106-476)), the designation of San Antonio International Airport as an airport at which certain private aircraft may land for processing by CBP.

Amendments to the U.S. Insular Possession Program for Watches/Jewelry

H.R. 1047 would amend HTS Chapter 91, Additional U.S. Note (AUSN) 5(h)(i) in order to revise the insular possession watch provisions to require the Secretary of Commerce and the Secretary of the Interior, jointly, for each of calendar years 2002 through 2015, to:

verify (a) the wages paid by each producer to permanent residents of the insular possessions during the preceding calendar year (including the value of usual and customary health insurance, life insurance, and pension benefits) and (b) the total quantity and value of watches and watch movements produced in the insular possessions by that producer and imported free of duty into the U.S. customs territory; and

issue to each producer (not later than 60 days after the end of the preceding calendar year) a certificate for the applicable amount.

H.R. 1047 would also amend HTS Chapter 91, AUSN 5(h)(ii) in order to revise the definition of "applicable amount." (See text of H.R. 1047 for revised definition.)

H.R. 1047 would also amend AUSN 5(h)(v) so that it states that (a) any certificate issued under AUSN 5(h)(i) would entitle the certificate holder to secure a refund of duties equal to the face value of the certificate on any articles that are imported into the customs territory of the U.S. by the certificate holder; (b) such refunds shall be made under regulations issued by the Treasury Department; and (c) not more than 5% of such refunds may be retained as a reimbursement to CBP for the administrative costs of making the refunds.

Also, H.R. 1047 would amend HTS Chapter 71, AUSN 3 to add a new paragraph (b) regarding the insular possession program for jewelry to establish, notwithstanding HTS Chapter 91 AUSN 5(h)(ii)(B), a 10,000,000-unit limit for jewelry articles subject to AUSN 3.

In addition, H.R. 1047 would also amend the requirements under redesignated AUSN 3(f) to state that:

"Notwithstanding any other provision of law, any article of jewelry provided for in heading 7113 that is assembled in the Virgin Islands, Guam, or American Samoa by a jewelry manufacturer or jewelry assembler that commenced jewelry manufacturing or jewelry assembly operations in the Virgin Islands, Guam, or American Samoa after August 9, 2001, shall be treated as a product of the Virgin Islands, Guam, or American Samoa for purposes of this note and General Note 3(a)(iv) of this Schedule if such article is entered no later than 18 months after such jewelry manufacturer or jewelry assembler commenced jewelry manufacturing or jewelry assembly operations in the Virgin Islands, Guam, or American Samoa."

(See ITT's Online Archives or 03/11/04, 03/12/04, 03/18/04, 03/19/04, 03/24/04, 04/01/04, 04/02/04, 04/05/04, 04/06/04, 04/16/04, and 04/20/04 news, 04031105, 04031215, 04031820, 04031910, 04032415, 04040115, 04040205, 04040520, 04040620, 04041625, and 04042020, for Parts I-XI of this series of summaries on the Senate-passed version of H.R. 1047.)

Senate-passed version of H.R. 1047 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h1047eas.txt.pdf.