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CHAPTER 91
CLOCKS AND WATCHES AND PARTS THEREOF
XVIII
91-1
Notes
1. This chapter does not cover:(a) Clock or watch glasses or weights (classified according to their constituent material);
(b) Watch chains (heading 7113 or 7117, as the case may be);
(c) Parts of general use defined in note 2 to section XV, of base metal (section XV), or similar goods of plastics (chapter 39) or of precious metal or metal clad with precious metal (generally heading 7115); clock or watch springs are, however, to be classified as clock or watch parts (heading 9114);
(d) Bearing balls (heading 7326 or 8482, as the case may be);
(e) Articles of heading 8412 constructed to work without an escapement;
(f) Ball bearings (heading 8482); or
(g) Articles of chapter 85, not yet assembled together or with other components into watch or clock movements or into articles suitable for use solely or principally as parts of such movements (chapter 85).
2. Heading 9101 covers only watches with case wholly of precious metal or of metal clad with precious metal, or of the same materials combined with natural or cultured pearls, or precious or semiprecious stones (natural, synthetic or reconstructed) of headings 7101 to 7104. Watches with case of base metal inlaid with precious metal fall in heading 9102.
3. For the purposes of this chapter, the expression "watch movements" means devices regulated by a balance wheel and hairspring, quartz crystal or any other system capable of determining intervals of time, with a display or a system to which a mechanical display can be incorporated. Such watch movements shall not exceed 12 mm in thickness and 50 mm in width, length or diameter.
4. Except as provided in note 1, movements and other parts suitable for use both in clocks or watches and in other articles (for example, precision instruments) are to be classified in this chapter.
Additional U.S. Notes
1. For the purposes of this chapter:(a) The term "watches" embraces timepieces (including timepieces having special features, such as chronographs, calendar watches and watches designed for use in skin diving) of a kind for wearing or carrying on the person whether or not the movement contained therein conforms to the definition of "watch movements" in note 3, above. Timepieces incorporating a stand, however simple, are not classifiable as watches.
(b) The term "cases" embraces inner and outer cases, containers and housings for movements, together with parts or pieces, such as, but not limited to, rings, feet, posts, bases and outer frames, and any auxiliary or incidental features, which (with appropriate movements) serve to complete the watches, clocks, time switches and other apparatus provided for in this chapter.
(c) The term "jewels" includes substitutes for jewels.
(d) The term "clock movements" means devices regulated by a balance wheel and hairspring, quartz crystal or any other system capable of determining intervals of time, with a display or a system to which a mechanical display can be incorporated. Such clock movements shall either exceed 12 mm in thickness or 50 mm in width, length or diameter, or both.
(e) The term "complete watch or clock movements, unassembled or partly assembled (movement sets)" refers to sets which consist of all parts necessary to assemble a watch or clock movement, except that for movements having mechanical displays the set may or may not include the dial and hands.
(f) The term "incomplete watch or clock movements, assembled" refers to:(I) Mechanical movements which are mounted but lack certain parts other than the dial, hands or winding spindle (e.g., the
escapement or the barrel bridge);
(ii) Battery powered movements with mechanical displays which are mounted but lack certain parts other than the dial, hands, setting spindle or battery (e.g., the motor); or
(iii) Other movements intended to operate with opto-electronic displays which are mounted but lack certain parts other than the battery (e.g., the display).
(g) The term "rough watch or clock movements" refers to sets of unassembled parts for the assembly of watch or clock movements of a kind constructed to work with an escapement. These sets do not include escapement, balance wheel and hairspring or other regulating device, mainspring, dial or hands; they therefore consist mainly of the base plate (and any additional plates), bridges, train, motion work, winding and setting mechanism and any additional mechanisms such as automatic winding device, calendar mechanisms, chronograph, alarm, etc. These sets may be entered with or without a barrel. Each element, intended for use as it is, may itself consist of one simple piece or of several parts fitted inseparably together, but such elements may not themselves be assembled to each other.
2. Watch straps, watch bands and watch bracelets entered with wrist watches and of a kind normally sold therewith, whether or not attached, are classified with the watch in heading 9101 or 9102. Otherwise, watch straps, watch bands and watch bracelets shall be classified in heading 9113.
3. Batteries entered with battery powered watches or clocks, or with the complete, assembled movements thereof, and intended for usetherewith, are classifiable under the provision for the watch, clock or movement. Similarly, batteries entered with a complete watch or clock movement, unassembled or partly assembled (movement set) or with an incomplete watch or clock movement, assembled, and intended for use therewith, are classifiable under the provision for such movement. Batteries are otherwise classifiable in heading 8506 or 8507, whether or not suitable for use with watches or clocks.
4. Special Marking Requirements: With the following exceptions, any movement or case provided for in this chapter, whether imported separately or attached to an article provided for in this chapter, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, stamping (including by means of indelible ink), or mold-marking (either indented or raised), as specified below. Movements with opto-electronic display only and cases designed for use therewith, whether entered as separate articles or as components of assembled watches or clocks, are excepted from the marking requirements set forth in this note. The special marking requirements are as follows:(a) Watch movements shall be marked on one or more of the bridges or top plates to show: (i) the name of the country of manufacture;
(ii) the name of the manufacturer or purchaser; and
(iii) in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings.
(b) Clock movements shall be marked on the most visible part of the front or back plate to show: (i) the name of the country of manufacture;
(ii) the name of the manufacturer or purchaser; and
(iii) the number of jewels, if any.
(c) Watch cases shall be marked on the inside or outside of the back to show:(i) the name of the country of manufacture; and
(ii) the name of the manufacturer or purchaser.
(d) Clock cases provided for in this chapter shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture.
5. Products of Insular Possessions (a) Except as provided in paragraphs (b) through (ij) of this note, any article provided for in this chapter which is the product of the Virgin Islands, Guam and American Samoa (hereinafter referred to as the "insular possessions") and which contains any foreign component shall be subject to duty:(i) At the rates set forth in column 1, if the countries of origin of more than 50 percent in value of the foreign components are countries to products of which column 1 rates apply; and
(ii) At the rates set forth in column 2, if the countries of origin of 50 percent or more in value of the foreign components are countries to products of which column 2 rates apply.
(b) Watch movements and watches (including watch straps, watch bands, and watch bracelets assembled onto watches) that are 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 note, but the total quantity of such articles entered free of duty shall not exceed the amounts established by or pursuant to paragraph (d) of this note.
(c) Notwithstanding the provisions of paragraph (b) of this note, the provisions of this note 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 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--(A) exceed 10,000,000 units or one-ninth of apparent domestic consumption (as determined by the International Trade Commission pursuant to paragraph (e) of this note), whichever is greater;
(B) be decreased by more than 10 percent of the quantity established for the immediately preceding calendar year; and
(C) 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 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:(A) by more than 200,000 units in calendar year 1984 or 1985; and
(B) 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 note on a fair and equitable basis among producers located in the insular possessions, and shall issue appropriate licenses thereof. 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 of calendar years 2003 through 2015, the Secretaries jointly, shall?(A) verify—(1) 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
(2) 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 customs territory of the United States; and
(B) issue to each producer (not later than 60 days after the end of the preceding calendar 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—(A) 90 percent of the producer's creditable wages (including the value of usual and customary health insurance, life insurance, and pension benefits) on the assembly during the preceding calendar year of the first 300,000 units; plus
(B) the applicable graduated declining percentage (determined each year by the Secretaries) of the producer's creditable wages (including the value of usual and customary health insurance, life insurance, and pension benefits) on the assembly during the preceding calendar year of units in excess of 300,000 but not in excess of 750,000; plus
(C) the difference between the duties that would have been due on each producer's watches and watch movements (excluding digital watches and excluding units in excess of the 750,000 limitation of this subparagraph) imported into the customs territory of the United States free of duty during the preceding calendar year if the watches and watch movements had been subject to duty at the rates set forth in column 1 under this chapter that were in effect on January 1, 2001, and the duties that would have been due on the watches and watch movements if the watches and watch movements had been subject to duty at the rates set forth in column 1 under this chapter that were in effect for such preceding calendar year.
(iii) The aggregate amount of all certificates which are issued during any calendar year shall not exceed an amount which bears the same ratio to $5,000,000 as:(A) the gross national product of the United States (as determined by the Secretary of Commerce) for the preceding calendar year, bears to:
(B) the gross national product of the United States (as so determined) for 1982.
(iv) (A) Subject to the provision of clause (B), 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.
(B) The applicable amount of any producer's certificate shall not be reduced below the amount determined under subparagraph (ii)(A), 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 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 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.
(vii) Any certificate issued under subparagraph (I) shall expire 1 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:(A) the producer's creditable wages for calendar year 1982; or
(B) 60 percent of the producer's creditable wages for calendar year 1981 shall be considered the creditable wages for calendar year 1982.
(ij) The Secretaries are authorized to issue such regulations, not inconsistent with the provisions of this note, as they determine necessary to carry out their respective duties under this note. 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.
Statistical Notes
1. The calculation of duties on various watches, clocks, watch movements and clock movements requires that these articles be constructively separated into their component parts and each component separately valued. The individual components shall be separately reported under the statistical suffixes show below. In each instance the sum of the values of the individual components shall be equal to the total value of the article. In those instances where the components of an article are to be separately reported under the following reporting scheme, the entry should include all the individually named components even if not included in the shipment. In such instance the entered quantity and value would be zero. For example, entry of a battery powered watch, imported without a battery, classifiable under subheading 9101.11.40 would include a line for the statistical reporting number for the battery (9101.11.4040) with the quantity and value shown as zero. To determine the proper statistical reporting number(s) for the subheadings enumerated below, the importer shall combine the applicable 8-digit subheading number with the applicable statistical suffix found below. (a) The statistical suffixes for subheadings 9101.11.40, 9101.11.80, 9101.19.40, 9101.19.80, 9102.11.10, 9102.11.25, 9102.11.30, 9102.11.45, 9102.11.50, 9102.11.65, 9102.11.70, 9102.11.95, 9102.19.20, 9102.19.40, 9102.19.60 and 9102.19.80 shall be:Stat. Suffix Article Description Unit of Quantity
10 Movement No.
20 Case No.
30 Strap, band or bracelet No.
40 Battery No.
(b) The statistical suffixes for subheadings 9102.91.20, 9104.00.05, 9104.00.10, 9104.00.25, 9104.00.30 and 9104.00.45 shall be:Stat. Suffix Article Description Unit of Quantity
10 Movement and case No. of movements
20 Battery No.
(c) The statistical suffixes for subheadings 9101.21.50, 9101.29.90, 9101.99.20, 9101.99.40, 9101.99.60, 9101.99.80, 9102.29.04, 9102.99.20, 9102.99.40, 9102.99.60, 9102.99.80, 9104.00.60, 9105.29.10, 9105.29.20, 9105.99.20 and 9105.99.30 shall be:Stat. Suffix Article Description Unit of Quantity
10 Movement No.
20 Case No.
(d) The statistical suffixes for subheadings 9101.21.80, 9101.29.10, 9101.29.20, 9101.29.30, 9101.29.40, 9101.29.50, 9102.21.10, 9102.21.25, 9102.21.30, 9102.21.50, 9102.21.70, 9102.21.90, 9102.29.10, 9102.29.15, 9102.29.20, 9102.29.25, 9102.29.30, 9102.29.35, 9102.29.40, 9102.29.45, 9102.29.50, 9102.29.55 and 9102.29.60 shall be:Stat. Suffix Article Description Unit of Quantity
10 Movement No.
20 Case No.
30 Strap, band or bracelet No.
(e) The statistical suffixes for subheadings 9101.91.40, 9101.91.80, 9102.91.40, 9102.91.80 and 9104.00.50 shall be:Stat. Suffix Article Description Unit of Quantity
10 Movement No.
20 Case No.
30 Battery No.
(f) The statistical suffixes for subheading 9103.10.20 shall be:
Stat. Suffix Article Description Unit of Quantity
Travel clocks:
10 Movement and case. No. of movements
20 Battery No.
Other clocks:
30 Movement and case. No. of movements
40 Battery No.
(g) The statistical suffixes for subheadings 9103.10.40 and 9103.10.80 shall be:
Stat. Suffix Article Description Unit of Quantity
Travel clocks:
10 Movement No.
20 Case No.
30 Battery No.
Other clocks:
40 Movement No.
50 Case No.
60 Battery No.
(h) The statistical suffixes for subheadings 9103.90.00, 9105.19.10 and 9105.19.20 shall be:
Stat. Suffix Article Description Unit of Quantity
Travel clocks:
10 Movement No.
20 Case No.
Other clocks:
30 Movement No.
40 Case No.
(ij) The statistical suffixes for subheading 9105.11.40 shall be:
Stat. Suffix Article Description Unit of Quantity
10 Clocks capable of operating only on AC power No.
Other:
Travel clocks:
20 Movement and case No. of movements
30 Battery No.
Other clocks:
40 Movement and case No. of movements
50 Battery No.
(k) The statistical suffixes for subheading 9105.11.80 shall be:
Stat. Suffix Article Description Unit of Quantity
Clocks capable of operating only on AC power:
05 Movement No.
15 Case No.
Other:
Travel clocks:
20 Movement No.
30 Case No.
40 Battery No.
Other clocks:
50 Movement No.
60 Case No.
70 Battery No.
(l) The statistical suffixes for subheading 9105.19.30 shall be:
Stat. Suffix Article Description Unit of Quantity
Travel clocks:
10 Movement No.
Dutiable Jwls.
20 Case No.
Other clocks:
30 Movement No.
Dutiable Jwls.
40 Case No.
(m) The statistical suffixes for subheadings 9105.21.40 and 9105.91.40 shall be:
Stat. Suffix Article Description Unit of Quantity
10 Clocks capable of operating only on AC power No.
Other clocks:
20 Movement and case No. of movements
30 Battery No.
(n) The statistical suffixes for subheadings 9105.21.80 and 9105.91.80 shall be:
Stat. Suffix Article Description Unit of Quantity
Clocks capable of operating only on AC power
10 Movement No.
20 Case No.
Other clocks:
30 Movement No.
40 Case No.
50 Battery No.
(o) The statistical suffixes for subheading 9106.90.55 shall be:
Stat. Suffix Article Description Unit of Quantity
10 Apparatus No.
20 Battery No.
(p) The statistical suffixes for subheadings 9105.29.30 and 9105.99.40 shall be:
Stat. Suffix Article Description Unit of Quantity
10 Movement No.
Dutiable Jwls.
20 Case No.
(q) The statistical suffixes for subheadings 9108.11.40, 9108.11.80, 9108.12.00, 9108.19.40 and 9108.19.80 shall be:
Stat. Suffix Article Description Unit of Quantity
10 Movement No.
20 Battery No.
(r) The statistical suffixes for subheadings 9109.10.10, 9109.10.20, 9109.10.30, 9109.10.40, 9109.10.50, 9109.10.60, 9109.10.70 and 9109.10.80 shall be:
Stat. Suffix Article Description Unit of Quantity
10 Clocks movements capable of operating only on AC power No.
Other clock movements:
20 Movement No.
30 Battery No.

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Stat. Suffix	Article Description	Unit of Quantity
10	Movement	No.
20	Case	No.
30	Strap, band or bracelet	No.
40	Battery	No.