[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4340 Enrolled Bill (ENR)]


        H.R.4340

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


 
      To implement the United States-Bahrain Free Trade Agreement.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Bahrain Free Trade Agreement Implementation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

 TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and 
          initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date 
          of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Effective dates; effect of termination.

                      TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Rules of origin.
Sec. 203. Customs user fees.
Sec. 204. Enforcement relating to trade in textile and apparel goods.
Sec. 205. Regulations.

                     TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.

      Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.

           Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.

                          TITLE IV--PROCUREMENT

Sec. 401. Eligible products.

SEC. 2. PURPOSES.

    The purposes of this Act are--
        (1) to approve and implement the Free Trade Agreement between 
    the United States and Bahrain entered into under the authority of 
    section 2103(b) of the Bipartisan Trade Promotion Authority Act of 
    2002 (19 U.S.C. 3803(b));
        (2) to strengthen and develop economic relations between the 
    United States and Bahrain for their mutual benefit;
        (3) to establish free trade between the 2 nations through the 
    reduction and elimination of barriers to trade in goods and 
    services; and
        (4) to lay the foundation for further cooperation to expand and 
    enhance the benefits of such Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
        (1) Agreement.--The term ``Agreement'' means the United States-
    Bahrain Free Trade Agreement approved by Congress under section 
    101(a)(1).
        (2) HTS.--The term ``HTS'' means the Harmonized Tariff Schedule 
    of the United States.
        (3) Textile or apparel good.--The term ``textile or apparel 
    good'' means a good listed in the Annex to the Agreement on 
    Textiles and Clothing referred to in section 101(d)(4) of the 
    Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

    (a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority 
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974 
(19 U.S.C. 2191), Congress approves--
        (1) the United States-Bahrain Free Trade Agreement entered into 
    on September 14, 2004, with Bahrain and submitted to Congress on 
    November 16, 2005; and
        (2) the statement of administrative action proposed to 
    implement the Agreement that was submitted to Congress on November 
    16, 2005.
    (b) Conditions for Entry Into Force of the Agreement.--At such time 
as the President determines that Bahrain has taken measures necessary 
to bring it into compliance with those provisions of the Agreement that 
are to take effect on the date on which the Agreement enters into 
force, the President is authorized to exchange notes with the 
Government of Bahrain providing for the entry into force, on or after 
January 1, 2006, of the Agreement with respect to the United States.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

    (a) Relationship of Agreement to United States Law.--
        (1) United states law to prevail in conflict.--No provision of 
    the Agreement, nor the application of any such provision to any 
    person or circumstance, which is inconsistent with any law of the 
    United States shall have effect.
        (2) Construction.--Nothing in this Act shall be construed--
            (A) to amend or modify any law of the United States; or
            (B) to limit any authority conferred under any law of the 
        United States,
    unless specifically provided for in this Act.
    (b) Relationship of Agreement to State Law.--
        (1) Legal challenge.--No State law, or the application thereof, 
    may be declared invalid as to any person or circumstance on the 
    ground that the provision or application is inconsistent with the 
    Agreement, except in an action brought by the United States for the 
    purpose of declaring such law or application invalid.
        (2) Definition of state law.--For purposes of this subsection, 
    the term ``State law'' includes--
            (A) any law of a political subdivision of a State; and
            (B) any State law regulating or taxing the business of 
        insurance.
    (c) Effect of Agreement With Respect to Private Remedies.--No 
person other than the United States--
        (1) shall have any cause of action or defense under the 
    Agreement or by virtue of congressional approval thereof; or
        (2) may challenge, in any action brought under any provision of 
    law, any action or inaction by any department, agency, or other 
    instrumentality of the United States, any State, or any political 
    subdivision of a State, on the ground that such action or inaction 
    is inconsistent with the Agreement.

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND 
              INITIAL REGULATIONS.

    (a) Implementing Actions.--
        (1) Proclamation authority.--After the date of the enactment of 
    this Act--
            (A) the President may proclaim such actions, and
            (B) other appropriate officers of the United States 
        Government may issue such regulations,
    as may be necessary to ensure that any provision of this Act, or 
    amendment made by this Act, that takes effect on the date on which 
    the Agreement enters into force is appropriately implemented on 
    such date, but no such proclamation or regulation may have an 
    effective date earlier than the date on which the Agreement enters 
    into force.
        (2) Effective date of certain proclaimed actions.--Any action 
    proclaimed by the President under the authority of this Act that is 
    not subject to the consultation and layover provisions under 
    section 104 may not take effect before the 15th day after the date 
    on which the text of the proclamation is published in the Federal 
    Register.
        (3) Waiver of 15-day restriction.--The 15-day restriction in 
    paragraph (2) on the taking effect of proclaimed actions is waived 
    to the extent that the application of such restriction would 
    prevent the taking effect on the date on which the Agreement enters 
    into force of any action proclaimed under this section.
    (b) Initial Regulations.--Initial regulations necessary or 
appropriate to carry out the actions required by or authorized under 
this Act or proposed in the statement of administrative action 
submitted under section 101(a)(2) to implement the Agreement shall, to 
the maximum extent feasible, be issued within 1 year after the date on 
which the Agreement enters into force. In the case of any implementing 
action that takes effect on a date after the date on which the 
Agreement enters into force, initial regulations to carry out that 
action shall, to the maximum extent feasible, be issued within 1 year 
after such effective date.

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE 
              OF, PROCLAIMED ACTIONS.

    If a provision of this Act provides that the implementation of an 
action by the President by proclamation is subject to the consultation 
and layover requirements of this section, such action may be proclaimed 
only if--
        (1) the President has obtained advice regarding the proposed 
    action from--
            (A) the appropriate advisory committees established under 
        section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
            (B) the United States International Trade Commission;
        (2) the President has submitted to the Committee on Finance of 
    the Senate and the Committee on Ways and Means of the House of 
    Representatives a report that sets forth--
            (A) the action proposed to be proclaimed and the reasons 
        therefor; and
            (B) the advice obtained under paragraph (1);
        (3) a period of 60 calendar days, beginning on the first day on 
    which the requirements set forth in paragraphs (1) and (2) have 
    been met has expired; and
        (4) the President has consulted with the Committees referred to 
    in paragraph (2) regarding the proposed action during the period 
    referred to in paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

    (a) Establishment or Designation of Office.--The President is 
authorized to establish or designate within the Department of Commerce 
an office that shall be responsible for providing administrative 
assistance to panels established under chapter 19 of the Agreement. The 
office may not be considered to be an agency for purposes of section 
552 of title 5, United States Code.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year after fiscal year 2005 to the 
Department of Commerce such sums as may be necessary for the 
establishment and operations of the office established or designated 
under subsection (a) and for the payment of the United States share of 
the expenses of panels established under chapter 19 of the Agreement.

SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION.

    (a) Effective Dates.--Except as provided in subsection (b), the 
provisions of this Act and the amendments made by this Act take effect 
on the date on which the Agreement enters into force.
    (b) Exceptions.--Sections 1 through 3 and this title take effect on 
the date of the enactment of this Act.
    (c) Termination of the Agreement.--On the date on which the 
Agreement terminates, the provisions of this Act (other than this 
subsection) and the amendments made by this Act shall cease to be 
effective.

                      TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

    (a) Tariff Modifications Provided for in the Agreement.--
        (1) Proclamation authority.--The President may proclaim--
            (A) such modifications or continuation of any duty,
            (B) such continuation of duty-free or excise treatment, or
            (C) such additional duties,
    as the President determines to be necessary or appropriate to carry 
    out or apply articles 2.3, 2.5, 2.6, 3.2.8, and 3.2.9, and Annex 2-
    B of the Agreement.
        (2) Effect on bahraini gsp status.--Notwithstanding section 
    502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the 
    President shall, on the date on which the Agreement enters into 
    force, terminate the designation of Bahrain as a beneficiary 
    developing country for purposes of title V of the Trade Act of 1974 
    (19 U.S.C. 2461 et seq.).
    (b) Other Tariff Modifications.--Subject to the consultation and 
layover provisions of section 104, the President may proclaim--
        (1) such modifications or continuation of any duty,
        (2) such modifications as the United States may agree to with 
    Bahrain regarding the staging of any duty treatment set forth in 
    Annex 2-B of the Agreement,
        (3) such continuation of duty-free or excise treatment, or
        (4) such additional duties,
as the President determines to be necessary or appropriate to maintain 
the general level of reciprocal and mutually advantageous concessions 
with respect to Bahrain provided for by the Agreement.
    (c) Conversion to Ad Valorem Rates.--For purposes of subsections 
(a) and (b), with respect to any good for which the base rate in the 
Tariff Schedule of the United States to Annex 2-B of the Agreement is a 
specific or compound rate of duty, the President may substitute for the 
base rate an ad valorem rate that the President determines to be 
equivalent to the base rate.

SEC. 202. RULES OF ORIGIN.

    (a) Application and Interpretation.--In this section:
        (1) Tariff classification.--The basis for any tariff 
    classification is the HTS.
        (2) Reference to hts.--Whenever in this section there is a 
    reference to a heading or subheading, such reference shall be a 
    reference to a heading or subheading of the HTS.
    (b) Originating Goods.--
        (1) In general.--For purposes of this Act and for purposes of 
    implementing the preferential tariff treatment provided for under 
    the Agreement, a good is an originating good if--
            (A) the good is imported directly--
                (i) from the territory of Bahrain into the territory of 
            the United States; or
                (ii) from the territory of the United States into the 
            territory of Bahrain; and
            (B)(i) the good is a good wholly the growth, product, or 
        manufacture of Bahrain or the United States, or both;
            (ii) the good (other than a good to which clause (iii) 
        applies) is a new or different article of commerce that has 
        been grown, produced, or manufactured in Bahrain or the United 
        States, or both, and meets the requirements of paragraph (2); 
        or
            (iii)(I) the good is a good covered by Annex 3-A or 4-A of 
        the Agreement;
            (II)(aa) each of the nonoriginating materials used in the 
        production of the good undergoes an applicable change in tariff 
        classification specified in such Annex as a result of 
        production occurring entirely in the territory of Bahrain or 
        the United States, or both; or
            (bb) the good otherwise satisfies the requirements 
        specified in such Annex; and
            (III) the good satisfies all other applicable requirements 
        of this section.
        (2) Requirements.--A good described in paragraph (1)(B)(ii) is 
    an originating good only if the sum of--
            (A) the value of each material produced in the territory of 
        Bahrain or the United States, or both, and
            (B) the direct costs of processing operations performed in 
        the territory of Bahrain or the United States, or both,
    is not less than 35 percent of the appraised value of the good at 
    the time the good is entered into the territory of the United 
    States.
    (c) Cumulation.--
        (1) Originating good or material incorporated into goods of 
    other country.--An originating good, or a material produced in the 
    territory of Bahrain or the United States, or both, that is 
    incorporated into a good in the territory of the other country 
    shall be considered to originate in the territory of the other 
    country.
        (2) Multiple producers.--A good that is grown, produced, or 
    manufactured in the territory of Bahrain or the United States, or 
    both, by 1 or more producers, is an originating good if the good 
    satisfies the requirements of subsection (b) and all other 
    applicable requirements of this section.
    (d) Value of Materials.--
        (1) In general.--Except as provided in paragraph (2), the value 
    of a material produced in the territory of Bahrain or the United 
    States, or both, includes the following:
            (A) The price actually paid or payable for the material by 
        the producer of the good.
            (B) The freight, insurance, packing, and all other costs 
        incurred in transporting the material to the producer's plant, 
        if such costs are not included in the price referred to in 
        subparagraph (A).
            (C) The cost of waste or spoilage resulting from the use of 
        the material in the growth, production, or manufacture of the 
        good, less the value of recoverable scrap.
            (D) Taxes or customs duties imposed on the material by 
        Bahrain or the United States, or both, if the taxes or customs 
        duties are not remitted upon exportation from the territory of 
        Bahrain or the United States, as the case may be.
        (2) Exception.--If the relationship between the producer of a 
    good and the seller of a material influenced the price actually 
    paid or payable for the material, or if there is no price actually 
    paid or payable by the producer for the material, the value of the 
    material produced in the territory of Bahrain or the United States, 
    or both, includes the following:
            (A) All expenses incurred in the growth, production, or 
        manufacture of the material, including general expenses.
            (B) A reasonable amount for profit.
            (C) Freight, insurance, packing, and all other costs 
        incurred in transporting the material to the producer's plant.
    (e) Packaging and Packing Materials and Containers for Retail Sale 
and for Shipment.--Packaging and packing materials and containers for 
retail sale and shipment shall be disregarded in determining whether a 
good qualifies as an originating good, except to the extent that the 
value of such packaging and packing materials and containers has been 
included in meeting the requirements set forth in subsection (b)(2).
    (f) Indirect Materials.--Indirect materials shall be disregarded in 
determining whether a good qualifies as an originating good, except 
that the cost of such indirect materials may be included in meeting the 
requirements set forth in subsection (b)(2).
    (g) Transit and Transshipment.--A good shall not be considered to 
meet the requirement of subsection (b)(1)(A) if, after exportation from 
the territory of Bahrain or the United States, the good undergoes 
production, manufacturing, or any other operation outside the territory 
of Bahrain or the United States, other than unloading, reloading, or 
any other operation necessary to preserve the good in good condition or 
to transport the good to the territory of Bahrain or the United States.
    (h) Textile and Apparel Goods.--
        (1) De minimis amounts of nonoriginating materials.--
            (A) In general.--Except as provided in subparagraph (B), a 
        textile or apparel good that is not an originating good because 
        certain fibers or yarns used in the production of the component 
        of the good that determines the tariff classification of the 
        good do not undergo an applicable change in tariff 
        classification set out in Annex 3-A of the Agreement shall be 
        considered to be an originating good if the total weight of all 
        such fibers or yarns in that component is not more than 7 
        percent of the total weight of that component.
            (B) Certain textile or apparel goods.--A textile or apparel 
        good containing elastomeric yarns in the component of the good 
        that determines the tariff classification of the good shall be 
        considered to be an originating good only if such yarns are 
        wholly formed in the territory of Bahrain or the United States.
            (C) Yarn, fabric, or group of fibers.--For purposes of this 
        paragraph, in the case of a textile or apparel good that is a 
        yarn, fabric, or group of fibers, the term ``component of the 
        good that determines the tariff classification of the good'' 
        means all of the fibers in the yarn, fabric, or group of 
        fibers.
        (2) Goods put up in sets for retail sale.--Notwithstanding the 
    rules set forth in Annex 3-A of the Agreement, textile or apparel 
    goods classifiable as goods put up in sets for retail sale as 
    provided for in General Rule of Interpretation 3 of the HTS shall 
    not be considered to be originating goods unless each of the goods 
    in the set is an originating good or the total value of the 
    nonoriginating goods in the set does not exceed 10 percent of the 
    value of the set determined for purposes of assessing customs 
    duties.
    (i) Definitions.--In this section:
        (1) Direct costs of processing operations.--
            (A) In general.--The term ``direct costs of processing 
        operations'', with respect to a good, includes, to the extent 
        they are includable in the appraised value of the good when 
        imported into Bahrain or the United States, as the case may be, 
        the following:
                (i) All actual labor costs involved in the growth, 
            production, or manufacture of the good, including fringe 
            benefits, on-the-job training, and the cost of engineering, 
            supervisory, quality control, and similar personnel.
                (ii) Tools, dies, molds, and other indirect materials, 
            and depreciation on machinery and equipment that are 
            allocable to the good.
                (iii) Research, development, design, engineering, and 
            blueprint costs, to the extent that they are allocable to 
            the good.
                (iv) Costs of inspecting and testing the good.
                (v) Costs of packaging the good for export to the 
            territory of the other country.
            (B) Exceptions.--The term ``direct costs of processing 
        operations'' does not include costs that are not directly 
        attributable to a good or are not costs of growth, production, 
        or manufacture of the good, such as--
                (i) profit; and
                (ii) general expenses of doing business that are either 
            not allocable to the good or are not related to the growth, 
            production, or manufacture of the good, such as 
            administrative salaries, casualty and liability insurance, 
            advertising, and sales staff salaries, commissions, or 
            expenses.
        (2) Good.--The term ``good'' means any merchandise, product, 
    article, or material.
        (3) Good wholly the growth, product, or manufacture of bahrain 
    or the united states, or both.--The term ``good wholly the growth, 
    product, or manufacture of Bahrain or the United States, or both'' 
    means--
            (A) a mineral good extracted in the territory of Bahrain or 
        the United States, or both;
            (B) a vegetable good, as such a good is provided for in the 
        HTS, harvested in the territory of Bahrain or the United 
        States, or both;
            (C) a live animal born and raised in the territory of 
        Bahrain or the United States, or both;
            (D) a good obtained from live animals raised in the 
        territory of Bahrain or the United States, or both;
            (E) a good obtained from hunting, trapping, or fishing in 
        the territory of Bahrain or the United States, or both;
            (F) a good (fish, shellfish, and other marine life) taken 
        from the sea by vessels registered or recorded with Bahrain or 
        the United States and flying the flag of that country;
            (G) a good produced from goods referred to in subparagraph 
        (F) on board factory ships registered or recorded with Bahrain 
        or the United States and flying the flag of that country;
            (H) a good taken by Bahrain or the United States or a 
        person of Bahrain or the United States from the seabed or 
        beneath the seabed outside territorial waters, if Bahrain or 
        the United States, as the case may be, has rights to exploit 
        such seabed;
            (I) a good taken from outer space, if such good is obtained 
        by Bahrain or the United States or a person of Bahrain or the 
        United States and not processed in the territory of a country 
        other than Bahrain or the United States;
            (J) waste and scrap derived from--
                (i) production or manufacture in the territory of 
            Bahrain or the United States, or both; or
                (ii) used goods collected in the territory of Bahrain 
            or the United States, or both, if such goods are fit only 
            for the recovery of raw materials;
            (K) a recovered good derived in the territory of Bahrain or 
        the United States from used goods and utilized in the territory 
        of that country in the production of remanufactured goods; and
            (L) a good produced in the territory of Bahrain or the 
        United States, or both, exclusively--
                (i) from goods referred to in subparagraphs (A) through 
            (J), or
                (ii) from the derivatives of goods referred to in 
            clause (i),
        at any stage of production.
        (4) Indirect material.--The term ``indirect material'' means a 
    good used in the growth, production, manufacture, testing, or 
    inspection of a good but not physically incorporated into the good, 
    or a good used in the maintenance of buildings or the operation of 
    equipment associated with the growth, production, or manufacture of 
    a good, including--
            (A) fuel and energy;
            (B) tools, dies, and molds;
            (C) spare parts and materials used in the maintenance of 
        equipment and buildings;
            (D) lubricants, greases, compounding materials, and other 
        materials used in the growth, production, or manufacture of a 
        good or used to operate equipment and buildings;
            (E) gloves, glasses, footwear, clothing, safety equipment, 
        and supplies;
            (F) equipment, devices, and supplies used for testing or 
        inspecting the good;
            (G) catalysts and solvents; and
            (H) any other goods that are not incorporated into the good 
        but the use of which in the growth, production, or manufacture 
        of the good can reasonably be demonstrated to be a part of that 
        growth, production, or manufacture.
        (5) Material.--The term ``material'' means a good, including a 
    part or ingredient, that is used in the growth, production, or 
    manufacture of another good that is a new or different article of 
    commerce that has been grown, produced, or manufactured in Bahrain 
    or the United States, or both.
        (6) Material produced in the territory of bahrain or the united 
    states, or both.--The term ``material produced in the territory of 
    Bahrain or the United States, or both'' means a good that is either 
    wholly the growth, product, or manufacture of Bahrain or the United 
    States, or both, or a new or different article of commerce that has 
    been grown, produced, or manufactured in the territory of Bahrain 
    or the United States, or both.
        (7) New or different article of commerce.--
            (A) In general.--The term ``new or different article of 
        commerce'' means, except as provided in subparagraph (B), a 
        good that--
                (i) has been substantially transformed from a good or 
            material that is not wholly the growth, product, or 
            manufacture of Bahrain or the United States, or both; and
                (ii) has a new name, character, or use distinct from 
            the good or material from which it was transformed.
            (B) Exception.--A good shall not be considered a new or 
        different article of commerce by virtue of having undergone 
        simple combining or packaging operations, or mere dilution with 
        water or another substance that does not materially alter the 
        characteristics of the good.
        (8) Recovered goods.--The term ``recovered goods'' means 
    materials in the form of individual parts that result from--
            (A) the complete disassembly of used goods into individual 
        parts; and
            (B) the cleaning, inspecting, testing, or other processing 
        of those parts that is necessary for improvement to sound 
        working condition.
        (9) Remanufactured good.--The term ``remanufactured good'' 
    means an industrial good that is assembled in the territory of 
    Bahrain or the United States and that--
            (A) is entirely or partially comprised of recovered goods;
            (B) has a similar life expectancy to, and meets similar 
        performance standards as, a like good that is new; and
            (C) enjoys a factory warranty similar to that of a like 
        good that is new.
        (10) Simple combining or packaging operations.--The term 
    ``simple combining or packaging operations'' means operations such 
    as adding batteries to devices, fitting together a small number of 
    components by bolting, gluing, or soldering, and repacking or 
    packaging components together.
        (11) Substantially transformed.--The term ``substantially 
    transformed'' means, with respect to a good or material, changed as 
    the result of a manufacturing or processing operation so that--
            (A)(i) the good or material is converted from a good that 
        has multiple uses into a good or material that has limited 
        uses;
            (ii) the physical properties of the good or material are 
        changed to a significant extent; or
            (iii) the operation undergone by the good or material is 
        complex by reason of the number of different processes and 
        materials involved and the time and level of skill required to 
        perform those processes; and
            (B) the good or material loses its separate identity in the 
        manufacturing or processing operation.
    (j) Presidential Proclamation Authority.--
        (1) In general.--The President is authorized to proclaim, as 
    part of the HTS--
            (A) the provisions set forth in Annex 3-A and Annex 4-A of 
        the Agreement; and
            (B) any additional subordinate category that is necessary 
        to carry out this title, consistent with the Agreement.
        (2) Modifications.--
            (A) In general.--Subject to the consultation and layover 
        provisions of section 104, the President may proclaim 
        modifications to the provisions proclaimed under the authority 
        of paragraph (1)(A), other than provisions of chapters 50 
        through 63 of the HTS (as included in Annex 3-A of the 
        Agreement).
            (B) Additional proclamations.--Notwithstanding subparagraph 
        (A), and subject to the consultation and layover provisions of 
        section 104, the President may proclaim--
                (i) modifications to the provisions proclaimed under 
            the authority of paragraph (1)(A) as are necessary to 
            implement an agreement with Bahrain pursuant to article 
            3.2.5 of the Agreement; and
                (ii) before the end of the 1-year period beginning on 
            the date of the enactment of this Act, modifications to 
            correct any typographical, clerical, or other 
            nonsubstantive technical error regarding the provisions of 
            chapters 50 through 63 of the HTS (as included in Annex 3-A 
            of the Agreement).

SEC. 203. CUSTOMS USER FEES.

    Section 13031(b) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (19 U.S.C. 58c(b)) is amended--
        (1) in each of paragraphs (13) and (15), by moving the text 2 
    ems to the left; and
        (2) by adding after paragraph (15) the following:
    ``(16) No fee may be charged under subsection (a) (9) or (10) with 
respect to goods that qualify as originating goods under section 202 of 
the United States-Bahrain Free Trade Agreement Implementation Act. Any 
service for which an exemption from such fee is provided by reason of 
this paragraph may not be funded with money contained in the Customs 
User Fee Account.''.

SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE AND APPAREL GOODS.

    (a) Action During Verification.--
        (1) In general.--If the Secretary of the Treasury requests the 
    Government of Bahrain to conduct a verification pursuant to article 
    3.3 of the Agreement for purposes of making a determination under 
    paragraph (2), the President may direct the Secretary to take 
    appropriate action described in subsection (b) while the 
    verification is being conducted.
        (2) Determination.--A determination under this paragraph is a 
    determination--
            (A) that an exporter or producer in Bahrain is complying 
        with applicable customs laws, regulations, procedures, 
        requirements, or practices affecting trade in textile or 
        apparel goods; or
            (B) that a claim that a textile or apparel good exported or 
        produced by such exporter or producer--
                (i) qualifies as an originating good under section 202; 
            or
                (ii) is a good of Bahrain, is accurate.
    (b) Appropriate Action Described.--Appropriate action under 
subsection (a)(1) includes--
        (1) suspension of liquidation of the entry of any textile or 
    apparel good exported or produced by the person that is the subject 
    of a verification referred to in subsection (a)(1) regarding 
    compliance described in subsection (a)(2)(A), in a case in which 
    the request for verification was based on a reasonable suspicion of 
    unlawful activity related to such good; and
        (2) suspension of liquidation of the entry of a textile or 
    apparel good for which a claim has been made that is the subject of 
    a verification referred to in subsection (a)(1) regarding a claim 
    described in subsection (a)(2)(B).
    (c) Action When Information Is Insufficient.--If the Secretary of 
the Treasury determines that the information obtained within 12 months 
after making a request for a verification under subsection (a)(1) is 
insufficient to make a determination under subsection (a)(2), the 
President may direct the Secretary to take appropriate action described 
in subsection (d) until such time as the Secretary receives information 
sufficient to make a determination under subsection (a)(2) or until 
such earlier date as the President may direct.
    (d) Appropriate Action Described.--Appropriate action referred to 
in subsection (c) includes--
        (1) publication of the name and address of the person that is 
    the subject of the verification;
        (2) denial of preferential tariff treatment under the Agreement 
    to--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification referred to in 
        subsection (a)(1) regarding compliance described in subsection 
        (a)(2)(A); or
            (B) a textile or apparel good for which a claim has been 
        made that is the subject of a verification referred to in 
        subsection (a)(1) regarding a claim described in subsection 
        (a)(2)(B); and
        (3) denial of entry into the United States of--
            (A) any textile or apparel good exported or produced by the 
        person that is the subject of a verification referred to in 
        subsection (a)(1) regarding compliance described in subsection 
        (a)(2)(A); or
            (B) a textile or apparel good for which a claim has been 
        made that is the subject of a verification referred to in 
        subsection (a)(1) regarding a claim described in subsection 
        (a)(2)(B).

SEC. 205. REGULATIONS.

        The Secretary of the Treasury shall prescribe such regulations 
    as may be necessary to carry out--
        (1) subsections (a) through (i) of section 202;
        (2) the amendment made by section 203(2); and
        (3) proclamations issued under section 202(j).

                     TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

    In this title:
        (1) Bahraini article.--The term ``Bahraini article'' means an 
    article that--
            (A) qualifies as an originating good under section 202(b); 
        or
            (B) receives preferential tariff treatment under paragraphs 
        8 through 11 of article 3.2 of the Agreement.
        (2) Bahraini textile or apparel article.--The term ``Bahraini 
    textile or apparel article'' means an article that--
            (A) is listed in the Annex to the Agreement on Textiles and 
        Clothing referred to in section 101(d)(4) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(4)); and
            (B) is a Bahraini article.
        (3) Commission.--The term ``Commission'' means the United 
    States International Trade Commission.

     Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

    (a) Filing of Petition.--A petition requesting action under this 
subtitle for the purpose of adjusting to the obligations of the United 
States under the Agreement may be filed with the Commission by an 
entity, including a trade association, firm, certified or recognized 
union, or group of workers, that is representative of an industry. The 
Commission shall transmit a copy of any petition filed under this 
subsection to the United States Trade Representative.
    (b) Investigation and Determination.--Upon the filing of a petition 
under subsection (a), the Commission, unless subsection (d) applies, 
shall promptly initiate an investigation to determine whether, as a 
result of the reduction or elimination of a duty provided for under the 
Agreement, a Bahraini article is being imported into the United States 
in such increased quantities, in absolute terms or relative to domestic 
production, and under such conditions that imports of the Bahraini 
article constitute a substantial cause of serious injury or threat 
thereof to the domestic industry producing an article that is like, or 
directly competitive with, the imported article.
    (c) Applicable Provisions.--The following provisions of section 202 
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any 
investigation initiated under subsection (b):
        (1) Paragraphs (1)(B) and (3) of subsection (b).
        (2) Subsection (c).
        (3) Subsection (i).
    (d) Articles Exempt From Investigation.--No investigation may be 
initiated under this section with respect to any Bahraini article if, 
after the date on which the Agreement enters into force with respect to 
the United States, import relief has been provided with respect to that 
Bahraini article under this subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

    (a) Determination.--Not later than 120 days after the date on which 
an investigation is initiated under section 311(b) with respect to a 
petition, the Commission shall make the determination required under 
that section.
    (b) Applicable Provisions.--For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under this 
section as if such determinations and findings were made under section 
202 of the Trade Act of 1974 (19 U.S.C. 2252).
    (c) Additional Finding and Recommendation if Determination 
Affirmative.--
        (1) In general.--If the determination made by the Commission 
    under subsection (a) with respect to imports of an article is 
    affirmative, or if the President may consider a determination of 
    the Commission to be an affirmative determination as provided for 
    under paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 
    U.S.C. 1330(d)(1)), the Commission shall find, and recommend to the 
    President in the report required under subsection (d), the amount 
    of import relief that is necessary to remedy or prevent the injury 
    found by the Commission in the determination and to facilitate the 
    efforts of the domestic industry to make a positive adjustment to 
    import competition.
        (2) Limitation on relief.--The import relief recommended by the 
    Commission under this subsection shall be limited to that described 
    in section 313(c).
        (3) Voting; separate views.--Only those members of the 
    Commission who voted in the affirmative under subsection (a) are 
    eligible to vote on the proposed action to remedy or prevent the 
    injury found by the Commission. Members of the Commission who did 
    not vote in the affirmative may submit, in the report required 
    under subsection (d), separate views regarding what action, if any, 
    should be taken to remedy or prevent the injury.
    (d) Report to President.--Not later than the date that is 30 days 
after the date on which a determination is made under subsection (a) 
with respect to an investigation, the Commission shall submit to the 
President a report that includes--
        (1) the determination made under subsection (a) and an 
    explanation of the basis for the determination;
        (2) if the determination under subsection (a) is affirmative, 
    any findings and recommendations for import relief made under 
    subsection (c) and an explanation of the basis for each 
    recommendation; and
        (3) any dissenting or separate views by members of the 
    Commission regarding the determination and recommendation referred 
    to in paragraphs (1) and (2).
    (e) Public Notice.--Upon submitting a report to the President under 
subsection (d), the Commission shall promptly make public such report 
(with the exception of information which the Commission determines to 
be confidential) and shall cause a summary thereof to be published in 
the Federal Register.

SEC. 313. PROVISION OF RELIEF.

    (a) In General.--Not later than the date that is 30 days after the 
date on which the President receives the report of the Commission in 
which the Commission's determination under section 312(a) is 
affirmative, or which contains a determination under section 312(a) 
that the President considers to be affirmative under paragraph (1) of 
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 
President, subject to subsection (b), shall provide relief from imports 
of the article that is the subject of such determination to the extent 
that the President determines necessary to remedy or prevent the injury 
found by the Commission and to facilitate the efforts of the domestic 
industry to make a positive adjustment to import competition.
    (b) Exception.--The President is not required to provide import 
relief under this section if the President determines that the 
provision of the import relief will not provide greater economic and 
social benefits than costs.
    (c) Nature of Relief.--
        (1) In general.--The import relief that the President is 
    authorized to provide under this section with respect to imports of 
    an article is as follows:
            (A) The suspension of any further reduction provided for 
        under Annex 2-B of the Agreement in the duty imposed on such 
        article.
            (B) An increase in the rate of duty imposed on such article 
        to a level that does not exceed the lesser of--
                (i) the column 1 general rate of duty imposed under the 
            HTS on like articles at the time the import relief is 
            provided; or
                (ii) the column 1 general rate of duty imposed under 
            the HTS on like articles on the day before the date on 
            which the Agreement enters into force.
        (2) Progressive liberalization.--If the period for which import 
    relief is provided under this section is greater than 1 year, the 
    President shall provide for the progressive liberalization of such 
    relief at regular intervals during the period in which the relief 
    is in effect.
    (d) Period of Relief.--
        (1) In general.--Subject to paragraph (2), any import relief 
    that the President provides under this section may not, in the 
    aggregate, be in effect for more than 3 years.
        (2) Extension.--
            (A) In general.--If the initial period for any import 
        relief provided under this section is less than 3 years, the 
        President, after receiving a determination from the Commission 
        under subparagraph (B) that is affirmative, or which the 
        President considers to be affirmative under paragraph (1) of 
        section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
        1330(d)(1)), may extend the effective period of any import 
        relief provided under this section, subject to the limitation 
        under paragraph (1), if the President determines that--
                (i) the import relief continues to be necessary to 
            remedy or prevent serious injury and to facilitate 
            adjustment by the domestic industry to import competition; 
            and
                (ii) there is evidence that the industry is making a 
            positive adjustment to import competition.
            (B) Action by commission.--
                (i) Investigation.--Upon a petition on behalf of the 
            industry concerned that is filed with the Commission not 
            earlier than the date which is 9 months, and not later than 
            the date which is 6 months, before the date any action 
            taken under subsection (a) is to terminate, the Commission 
            shall conduct an investigation to determine whether action 
            under this section continues to be necessary to remedy or 
            prevent serious injury and to facilitate adjustment by the 
            domestic industry to import competition and whether there 
            is evidence that the industry is making a positive 
            adjustment to import competition.
                (ii) Notice and hearing.--The Commission shall publish 
            notice of the commencement of any proceeding under this 
            subparagraph in the Federal Register and shall, within a 
            reasonable time thereafter, hold a public hearing at which 
            the Commission shall afford interested parties and 
            consumers an opportunity to be present, to present 
            evidence, and to respond to the presentations of other 
            parties and consumers, and otherwise to be heard.
                (iii) Report.--The Commission shall transmit to the 
            President a report on its investigation and determination 
            under this subparagraph not later than 60 days before the 
            action under subsection (a) is to terminate, unless the 
            President specifies a different date.
    (e) Rate After Termination of Import Relief.--When import relief 
under this section is terminated with respect to an article, the rate 
of duty on that article shall be the rate that would have been in 
effect, but for the provision of such relief, on the date on which the 
relief terminates.
    (f) Articles Exempt From Relief.--No import relief may be provided 
under this section on any article that has been subject to import 
relief under this subtitle after the date on which the Agreement enters 
into force.

SEC. 314. TERMINATION OF RELIEF AUTHORITY.

    (a) General Rule.--Subject to subsection (b), no import relief may 
be provided under this subtitle after the date that is 10 years after 
the date on which the Agreement enters into force.
    (b) Presidential Determination.--Import relief may be provided 
under this subtitle in the case of a Bahraini article after the date on 
which such relief would, but for this subsection, terminate under 
subsection (a), if the President determines that Bahrain has consented 
to such relief.

SEC. 315. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under section 313 
shall be treated as action taken under chapter 1 of title II of such 
Act (19 U.S.C. 2251 et seq.).

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

    Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence--
        (1) by striking ``and''; and
        (2) by inserting before the period at the end ``, and title III 
    of the United States-Bahrain Free Trade Agreement Implementation 
    Act''.

           Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

    (a) In General.--A request under this subtitle for the purpose of 
adjusting to the obligations of the United States under the Agreement 
may be filed with the President by an interested party. Upon the filing 
of a request, the President shall review the request to determine, from 
information presented in the request, whether to commence consideration 
of the request.
    (b) Publication of Request.--If the President determines that the 
request under subsection (a) provides the information necessary for the 
request to be considered, the President shall cause to be published in 
the Federal Register a notice of commencement of consideration of the 
request, and notice seeking public comments regarding the request. The 
notice shall include a summary of the request and the dates by which 
comments and rebuttals must be received.

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

    (a) Determination.--
        (1) In general.--If a positive determination is made under 
    section 321(b), the President shall determine whether, as a result 
    of the reduction or elimination of a duty under the Agreement, a 
    Bahraini textile or apparel article is being imported into the 
    United States in such increased quantities, in absolute terms or 
    relative to the domestic market for that article, and under such 
    conditions as to cause serious damage, or actual threat thereof, to 
    a domestic industry producing an article that is like, or directly 
    competitive with, the imported article.
        (2) Serious damage.--In making a determination under paragraph 
    (1), the President--
            (A) shall examine the effect of increased imports on the 
        domestic industry, as reflected in changes in such relevant 
        economic factors as output, productivity, utilization of 
        capacity, inventories, market share, exports, wages, 
        employment, domestic prices, profits, and investment, none of 
        which is necessarily decisive; and
            (B) shall not consider changes in technology or consumer 
        preference as factors supporting a determination of serious 
        damage or actual threat thereof.
    (b) Provision of Relief.--
        (1) In general.--If a determination under subsection (a) is 
    affirmative, the President may provide relief from imports of the 
    article that is the subject of such determination, as described in 
    paragraph (2), to the extent that the President determines 
    necessary to remedy or prevent the serious damage and to facilitate 
    adjustment by the domestic industry to import competition.
        (2) Nature of relief.--The relief that the President is 
    authorized to provide under this subsection with respect to imports 
    of an article is an increase in the rate of duty imposed on the 
    article to a level that does not exceed the lesser of--
            (A) the column 1 general rate of duty imposed under the HTS 
        on like articles at the time the import relief is provided; or
            (B) the column 1 general rate of duty imposed under the HTS 
        on like articles on the day before the date on which the 
        Agreement enters into force.

SEC. 323. PERIOD OF RELIEF.

    (a) In General.--Subject to subsection (b), any import relief that 
the President provides under subsection (b) of section 322 may not, in 
the aggregate, be in effect for more than 3 years.
    (b) Extension.--If the initial period for any import relief 
provided under section 322 is less than 3 years, the President may 
extend the effective period of any import relief provided under that 
section, subject to the limitation set forth in subsection (a), if the 
President determines that--
        (1) the import relief continues to be necessary to remedy or 
    prevent serious damage and to facilitate adjustment by the domestic 
    industry to import competition; and
        (2) there is evidence that the industry is making a positive 
    adjustment to import competition.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

    The President may not provide import relief under this subtitle 
with respect to any article if--
        (1) the article has been subject to import relief under this 
    subtitle after the date on which the Agreement enters into force; 
    or
        (2) the article is subject to import relief under chapter 1 of 
    title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

    When import relief under this subtitle is terminated with respect 
to an article, the rate of duty on that article shall be the rate that 
would have been in effect, but for the provision of such relief, on the 
date on which the relief terminates.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

    No import relief may be provided under this subtitle with respect 
to any article after the date that is 10 years after the date on which 
duties on the article are eliminated pursuant to the Agreement.

SEC. 327. COMPENSATION AUTHORITY.

    For purposes of section 123 of the Trade Act of 1974 (19 U.S.C. 
2133), any import relief provided by the President under this subtitle 
shall be treated as action taken under chapter 1 of title II of such 
Act.

SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.

    The President may not release information that is submitted in a 
proceeding under this subtitle and that the President considers to be 
confidential business information unless the party submitting the 
confidential business information had notice, at the time of 
submission, that such information would be released, or such party 
subsequently consents to the release of the information. To the extent 
a party submits confidential business information to the President in a 
proceeding under this subtitle, the party shall also submit a 
nonconfidential version of the information, in which the confidential 
business information is summarized or, if necessary, deleted.

                         TITLE IV--PROCUREMENT

SEC. 401. ELIGIBLE PRODUCTS.

    Section 308(4)(A) of the Trade Agreements Act of 1979 (19 U.S.C. 
2518(4)(A)) is amended--
        (1) by striking ``or'' at the end of clause (iii);
        (2) by striking the period at the end of clause (iv) and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
                ``(v) a party to a free trade agreement that entered 
            into force with respect to the United States after December 
            31, 2005, and before July 2, 2006, a product or service of 
            that country or instrumentality which is covered under the 
            free trade agreement for procurement by the United 
            States.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.