[United States Statutes at Large, Volume 119, 109th Congress, 1st Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

119 STAT. 3581

Public Law 109-169
109th Congress

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.

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119 STAT. 3582

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.--

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119 STAT. 3583

(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

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119 STAT. 3584

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.

[[Page 3585]]
119 STAT. 3585

(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--

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119 STAT. 3586

(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.

[[Page 3587]]
119 STAT. 3587

(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

[[Page 3588]]
119 STAT. 3588

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;

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119 STAT. 3589

(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;

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119 STAT. 3590

(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,

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119 STAT. 3591

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.''.

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119 STAT. 3592

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--

[[Page 3593]]
119 STAT. 3593

(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

[[Page 3594]]
119 STAT. 3594

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--

[[Page 3595]]
119 STAT. 3595

(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.--

[[Page 3596]]
119 STAT. 3596

(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.

[[Page 3597]]
119 STAT. 3597

(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

[[Page 3598]]
119 STAT. 3598

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.

[[Page 3599]]
119 STAT. 3599

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

[[Page 3600]]
119 STAT. 3600

is covered under the free trade agreement for
procurement by the United States.''.

Approved January 11, 2006.

LEGISLATIVE HISTORY--H.R. 4340 (S. 2027):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-318 (Comm. on Ways and Means).
SENATE REPORTS: No. 109-199 accompanying S. 2027 (Comm. on Finance).
CONGRESSIONAL RECORD, Vol. 151 (2005):
Dec. 7, considered and passed House.
Dec. 13, considered and passed Senate.