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April 10, 2007
New commerce rules bode well for St. Croix watch industry The U.S. Department of Commerce has issued new rules to boost the competitiveness of the Virgin Islands watch industry based on St. Croix. The new rules, which are scheduled to go into effect in May, substantially increases the value of watches and watch movements manufactured in the territory which are entitled to duty-free entry into the U.S. market. Under current regulations, duty-free benefits are limited to watches valued under $800 and to watch movements costing no more than $35. The new rules increase the value limits for V.I. watches to $3,000 and for watch movements to $300. Because of soaring prices of gold and other materials used in the manufacture of watches, local manufacturers in the last year started bumping against the old limits, thus threatening their duty-free status. Governor John P. deJongh, Jr. who submitted comments in support of the increased value limits last February, welcomed the Commerce Department decision. "This action will help to stabilize and increase employment in the important watch manufacturing industry on St. Croix," deJongh said. "In particular, it will allow local producers to capitalize on recent market trends and manufacture higher-end mechanical watches which require more sophisticated and labor intensive manufacturing operations." St. Croix is currently home to seven watch and jewelry manufacturing companies which employ approximately 200 workers. |
