March 6, 2003 – A bill to give merchants rebates for duty paid on watches and jewelry manufactured in foreign countries, shipped to the United States, and then shipped to the territory passed the U.S. House of Representatives on Wednesday.
Brian Modeste, an aide to Delegate Donna M. Christensen, said that if the merchants then were to ship the goods to a place outside the U.S. Customs Zone, such as Mexico, they would get the rebate. Since the U.S. Virgin Islands also lies outside that customs zone, this bill corrects an anomaly in the law.
He said that the bill also expands a current law that gives mainland-based watch and jewelry manufacturers credit on their federal income tax for wages paid employees who work in their Virgin Islands manufacturing facilities.
One effect of the measure will be "to attract new businesses to the territory," Modeste said.
Christensen said that the legislation will keep the territory's watch and jewelry industries competitive with their foreign competitors who don't have to comply with U.S. minimum wage requirements and other labor and environmental laws.
Heralding the House approval of the bill as "great news" for the V.I. economy, Christensen said she has been in contact with one company that has indicated interest in setting up operations on St. Croix but is "awaiting passage of this legislation."
A similar bill is before the U.S. Senate. If both houses approve the measure, it will go to President Bush for his signature.
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