Includes in the reimbursement to producers of watches in the insular possessions, the difference between the amount that would have been due on a producer's non-digital watches during the preceding year under duty rates existing on January 1, 2001, and the amount due under the actual duty rates of that preceding calendar year.
Authorizes the Secretary of the Treasury to: (1) make PIC payments from duties on jewelry or other products as needed (presently PIC payments are funded by watch duties); and (2) directly reimburse all producers. Eliminates the 750,000 unit per producer limit for jewelry products of the insular possessions, while retaining the overall unit and dollar value limits for the PIC program.
Revises certain requirements for duty-free treatment of articles of jewelry as products of the insular possessions. Requires treatment as such a product if the article of jewelry is: (1) assembled in an insular possession by a jewelry manufacturer or jewelry assembler that commenced manufacturing or assembly in such territory after August 9, 2001; and (2) entered into the United States within 18 months after the manufacturer or assembler commenced operations.