A bill to amend the tariff schedules of the United States with respect to the dutiable status of watches and watch movements from insular possessions of the United States.

Amends the Tariff Schedules of the United States to change the dutiable status of watches and watch movements imported from insular possessions of the United States. Defines the insular possessions as the Virgin Islands, Guam, and American Samoa.

Authorizes duty-free importation of watches and watch movements built in the insular possessions without regard to the value of the foreign materials they contain if they meet specified conditions. Imposes a quota on the number of such watches and watch movements that may be imported duty-free during calendar year 1983. Directs the Secretaries of Commerce and of the Interior to establish quotas for subsequent calendar years. Sets forth guidelines for determining such quotas. Allocates the number of duty-free imports of watches, and watch movements among three possesions for calendar year 1983. Authorizes the Secretaries to establish new territorial shares for subsequent calendar years. Directs the Secretaries to allocate the duty exemptions among producers located in the insular possessions.

Directs the Secretaries to verify the wages paid by producers to permanent residents of the insular possessions in the preceding calendar year. Directs the Secretaries to issue a certificate for a portion of such amount to each producer for each year through calendar year 1994. Sets forth a formula for determining the value of a producer's certificate. States that such certificates entitle the certificate holder to a refund of duties equal to the face value of the certificate on imported watches, watch movements, and parts. Limits the amount of such refunds that may be retained by the Customs Service for reimbursement of administrative costs.

Makes such certificates negotiable. Requires such certificates to expire one year after issuance. Permits the certificates to be applied against duties on articles imported within two years before their issuance.