II 

Calendar No. 499 

109TH CONGRESS 

2D SESSION S. 3569 

To implement the United States-Oman Free Trade Agreement. 

IN THE SENATE OF THE UNITED STATES 

JUNE 26, 2006 

Mr. GRASSLEY (for himself and Mr. BAUCUS) (by request) introduced the following bill; which was read twice and referred to the Committee on Finance pursuant to section 2103(b) of Public Law 107–210 

JUNE 28, 2006 

Reported by Mr. GRASSLEY, without amendment 

A BILL 

To implement the United States-Oman Free Trade 

Agreement. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘United States-Oman Free Trade Agreement Implemen6 tation Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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. Arbitration of claims. 

Sec. 107. 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. Reliquidation of entries. 

Sec. 206. 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. 


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1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to approve and implement the Free Trade 

4 Agreement between the United States and Oman en5 tered into under the authority of section 2103(b) of 

6 the Bipartisan Trade Promotion Authority Act of 

7 2002 (19 U.S.C. 3803(b)); 

8 (2) to strengthen and develop economic rela9 tions between the United States and Oman for their 

10 mutual benefit; 

11 (3) to establish free trade between the 2 nations 

12 through the reduction and elimination of barriers to 

13 trade in goods and services and to investment; and 

14 (4) to lay the foundation for further coopera15 tion to expand and enhance the benefits of such 

16 Agreement. 

17 SEC. 3. DEFINITIONS. 

18 In this Act: 

19 (1) AGREEMENT.—The term ‘‘Agreement’’ 

20 means the United States-Oman Free Trade Agree21 ment approved by Congress under section 101(a)(1). 

22 (2) HTS.—The term ‘‘HTS’’ means the Har23 monized Tariff Schedule of the United States. 

24 (3) TEXTILE OR APPAREL GOOD.—The term 

25 ‘‘textile or apparel good’’ means a good listed in the 

26 Annex to the Agreement on Textiles and Clothing 


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1 referred to in section 101(d)(4) of the Uruguay 

2 Round Agreements Act (19 U.S.C. 3511(d)(4)). 

3 TITLE I—APPROVAL OF, AND 

4 GENERAL PROVISIONS RE5 LATING TO, THE AGREEMENT 

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

7 AGREEMENT. 

8 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

9 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

10 the Bipartisan Trade Promotion Authority Act of 2002 

11 (19 U.S.C. 3805) and section 151 of the Trade Act of 

12 1974 (19 U.S.C. 2191), Congress approves— 

13 (1) the United States-Oman Free Trade Agree14 ment entered into on January 19, 2006, with Oman 

15 and submitted to Congress on June 26, 2006; and 

16 (2) the statement of administrative action pro17 posed to implement the Agreement that was sub18 mitted to Congress on June 26, 2006. 

19 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

20 AGREEMENT.—At such time as the President determines 

21 that Oman has taken measures necessary to bring it into 

22 compliance with those provisions of the Agreement that 

23 are to take effect on the date on which the Agreement 

24 enters into force, the President is authorized to exchange 

25 notes with the Government of Oman providing for the 


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1 entry into force, on or after January 1, 2007, of the 

2 Agreement with respect to the United States. 

3 SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 

4 STATES AND STATE LAW. 

5 (a) RELATIONSHIP OF AGREEMENT TO UNITED

6 STATES LAW.— 

7 (1) UNITED STATES LAW TO PREVAIL IN CON8 FLICT.—No provision of the Agreement, nor the ap9 plication of any such provision to any person or cir10 cumstance, which is inconsistent with any law of the 

11 United States shall have effect. 

12 (2) CONSTRUCTION.—Nothing in this Act shall 

13 be construed— 

14 (A) to amend or modify any law of the 

15 United States, or 

16 (B) to limit any authority conferred under 

17 any law of the United States, 

18 unless specifically provided for in this Act. 

19 (b) RELATIONSHIP OF AGREEMENT TO STATE

20 LAW.— 

21 (1) LEGAL CHALLENGE.—No State law, or the 

22 application thereof, may be declared invalid as to 

23 any person or circumstance on the ground that the 

24 provision or application is inconsistent with the 

25 Agreement, except in an action brought by the 


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1 United States for the purpose of declaring such law 

2 or application invalid. 

3 (2) DEFINITION OF STATE LAW.—For purposes 

4 of this subsection, the term ‘‘State law’’ includes— 

5 (A) any law of a political subdivision of a 

6 State; and 

7 (B) any State law regulating or taxing the 

8 business of insurance. 

9 (c) EFFECT OF AGREEMENT WITH RESPECT TO PRI10 VATE REMEDIES.—No person other than the United 

11 States— 

12 (1) shall have any cause of action or defense 

13 under the Agreement or by virtue of congressional 

14 approval thereof; or 

15 (2) may challenge, in any action brought under 

16 any provision of law, any action or inaction by any 

17 department, agency, or other instrumentality of the 

18 United States, any State, or any political subdivision 

19 of a State, on the ground that such action or inac20 tion is inconsistent with the Agreement. 

21 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 

22 ENTRY INTO FORCE AND INITIAL REGULA23 TIONS. 

24 (a) IMPLEMENTING ACTIONS.— 


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1 (1) PROCLAMATION AUTHORITY.—After the 

2 date of the enactment of this Act— 

3 (A) the President may proclaim such ac4 tions, and 

5 (B) other appropriate officers of the 

6 United States Government may issue such reg7 ulations, 

8 as may be necessary to ensure that any provision of 

9 this Act, or amendment made by this Act, that takes 

10 effect on the date on which the Agreement enters 

11 into force is appropriately implemented on such 

12 date, but no such proclamation or regulation may 

13 have an effective date earlier than the date on which 

14 the Agreement enters into force. 

15 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED

16 ACTIONS.—Any action proclaimed by the President 

17 under the authority of this Act that is not subject 

18 to the consultation and layover provisions under sec19 tion 104 may not take effect before the 15th day 

20 after the date on which the text of the proclamation 

21 is published in the Federal Register. 

22 (3) WAIVER OF 15-DAY RESTRICTION.—The 15- 

23 day restriction in paragraph (2) on the taking effect 

24 of proclaimed actions is waived to the extent that 

25 the application of such restriction would prevent the 


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1 taking effect on the date on which the Agreement 

2 enters into force of any action proclaimed under this 

3 section. 

4 (b) INITIAL REGULATIONS.—Initial regulations nec5 essary or appropriate to carry out the actions required by 

6 or authorized under this Act or proposed in the statement 

7 of administrative action submitted under section 

8 101(a)(2) to implement the Agreement shall, to the max9 imum extent feasible, be issued within 1 year after the 

10 date on which the Agreement enters into force. In the case 

11 of any implementing action that takes effect on a date 

12 after the date on which the Agreement enters into force, 

13 initial regulations to carry out that action shall, to the 

14 maximum extent feasible, be issued within 1 year after 

15 such effective date. 

16 SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 

17 AND EFFECTIVE DATE OF, PROCLAIMED AC18 TIONS. 

19 If a provision of this Act provides that the implemen20 tation of an action by the President by proclamation is 

21 subject to the consultation and layover requirements of 

22 this section, such action may be proclaimed only if— 

23 (1) the President has obtained advice regarding 

24 the proposed action from— 


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1 (A) the appropriate advisory committees 

2 established under section 135 of the Trade Act 

3 of 1974 (19 U.S.C. 2155); and 

4 (B) the United States International Trade 

5 Commission; 

6 (2) the President has submitted to the Com7 mittee on Finance of the Senate and the Committee 

8 on Ways and Means of the House of Representatives 

9 a report that sets forth— 

10 (A) the action proposed to be proclaimed 

11 and the reasons therefor; and 

12 (B) the advice obtained under paragraph 

13 (1); 

14 (3) a period of 60 calendar days, beginning on 

15 the first day on which the requirements set forth in 

16 paragraphs (1) and (2) have been met has expired; 

17 and 

18 (4) the President has consulted with the Com19 mittees referred to in paragraph (2) regarding the 

20 proposed action during the period referred to in 

21 paragraph (3). 

22 SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO23 CEEDINGS. 

24 (a) ESTABLISHMENT OR DESIGNATION OF OFFICE.— 

25 The President is authorized to establish or designate withVerDate Aug 31 2005 22:51 Jun 28, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3569.RS S3569

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1 in the Department of Commerce an office that shall be 

2 responsible for providing administrative assistance to pan3 els established under chapter 20 of the Agreement. The 

4 office may not be considered to be an agency for purposes 

5 of section 552 of title 5, United States Code. 

6 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated for each fiscal year after 

8 fiscal year 2006 to the Department of Commerce such 

9 sums as may be necessary for the establishment and oper10 ations of the office established or designated under sub11 section (a) and for the payment of the United States share 

12 of the expenses of panels established under chapter 20 of 

13 the Agreement. 

14 SEC. 106. ARBITRATION OF CLAIMS. 

15 The United States is authorized to resolve any claim 

16 against the United States covered by article 

17 10.15.1(a)(i)(C) or article 10.15.1(b)(i)(C) of the Agree18 ment, pursuant to the Investor-State Dispute Settlement 

19 procedures set forth in section B of chapter 10 of the 

20 Agreement. 

21 SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 

22 (a) EFFECTIVE DATES.—Except as provided in sub23 section (b), the provisions of this Act and the amendments 

24 made by this Act take effect on the date on which the 

25 Agreement enters into force. 


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1 (b) EXCEPTIONS.—Sections 1 through 3 and this 

2 title take effect on the date of the enactment of this Act. 

3 (c) TERMINATION OF THE AGREEMENT.—On the 

4 date on which the Agreement terminates, the provisions 

5 of this Act (other than this subsection) and the amend6 ments made by this Act shall cease to be effective. 

7 TITLE II—CUSTOMS PROVISIONS 

8 SEC. 201. TARIFF MODIFICATIONS. 

9 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

10 AGREEMENT.— 

11 (1) PROCLAMATION AUTHORITY.—The Presi12 dent may proclaim— 

13 (A) such modifications or continuation of 

14 any duty, 

15 (B) such continuation of duty-free or ex16 cise treatment, or 

17 (C) such additional duties, 

18 as the President determines to be necessary or ap19 propriate to carry out or apply articles 2.3, 2.5, 2.6, 

20 3.2.8, and 3.2.9, and Annex 2–B of the Agreement. 

21 (2) EFFECT ON OMANI GSP STATUS.—Notwith22 standing section 502(a)(1) of the Trade Act of 1974 

23 (19 U.S.C. 2462(a)(1)), the President shall, on the 

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1 veloping country for purposes of title V of the Trade 

2 Act of 1974 (19 U.S.C. 2461 et seq.). 

3 (b) OTHER TARIFF MODIFICATIONS.—Subject to the 

4 consultation and layover provisions of section 104, the 

5 President may proclaim— 

6 (1) such modifications or continuation of any 

7 duty, 

8 (2) such modifications as the United States 

9 may agree to with Oman regarding the staging of 

10 any duty treatment set forth in Annex 2–B of the 

11 Agreement, 

12 (3) such continuation of duty-free or excise 

13 treatment, or 

14 (4) such additional duties, 

15 as the President determines to be necessary or appropriate 

16 to maintain the general level of reciprocal and mutually 

17 advantageous concessions with respect to Oman provided 

18 for by the Agreement. 

19 (c) CONVERSION TO AD VALOREM RATES.—For pur20 poses of subsections (a) and (b), with respect to any good 

21 for which the base rate in the Tariff Schedule of the 

22 United States to Annex 2–B of the Agreement is a specific 

23 or compound rate of duty, the President may substitute 

24 for the base rate an ad valorem rate that the President 

25 determines to be equivalent to the base rate. 


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1 SEC. 202. RULES OF ORIGIN. 

2 (a) APPLICATION AND INTERPRETATION.—In this 

3 section: 

4 (1) TARIFF CLASSIFICATION.—The basis for 

5 any tariff classification is the HTS. 

6 (2) REFERENCE TO HTS.—Whenever in this 

7 section there is a reference to a heading or sub8 heading, such reference shall be a reference to a 

9 heading or subheading of the HTS. 

10 (b) ORIGINATING GOODS.— 

11 (1) IN GENERAL.—For purposes of this Act 

12 and for purposes of implementing the preferential 

13 tariff treatment provided for under the Agreement, 

14 a good is an originating good if— 

15 (A) the good is imported directly— 

16 (i) from the territory of Oman into 

17 the territory of the United States; or 

18 (ii) from the territory of the United 

19 States into the territory of Oman; and 

20 (B)(i) the good is a good wholly the 

21 growth, product, or manufacture of Oman or 

22 the United States, or both; 

23 (ii) the good (other than a good to which 

24 clause (iii) applies) is a new or different article 

25 of commerce that has been grown, produced, or 

26 manufactured in Oman or the United States, or 


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1 both, and meets the requirements of paragraph 

2 (2); or 

3 (iii)(I) the good is a good covered by 

4 Annex 3–A or 4–A of the Agreement; 

5 (II)(aa) each of the nonoriginating mate6 rials used in the production of the good under7 goes an applicable change in tariff classification 

8 specified in such Annex as a result of produc9 tion occurring entirely in the territory of Oman 

10 or the United States, or both; or 

11 (bb) the good otherwise satisfies the re12 quirements specified in such Annex; and 

13 (III) the good satisfies all other applicable 

14 requirements of this section. 

15 (2) REQUIREMENTS.—A good described in 

16 paragraph (1)(B)(ii) is an originating good only if 

17 the sum of— 

18 (A) the value of each material produced in 

19 the territory of Oman or the United States, or 

20 both, and 

21 (B) the direct costs of processing oper22 ations performed in the territory of Oman or 

23 the United States, or both, 


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1 is not less than 35 percent of the appraised value of 

2 the good at the time the good is entered into the ter3 ritory of the United States. 

4 (c) CUMULATION.— 

5 (1) ORIGINATING GOOD OR MATERIAL INCOR6 PORATED INTO GOODS OF OTHER COUNTRY.—An 

7 originating good, or a material produced in the terri8 tory of Oman or the United States, or both, that is 

9 incorporated into a good in the territory of the other 

10 country shall be considered to originate in the terri11 tory of the other country. 

12 (2) MULTIPLE PRODUCERS.—A good that is 

13 grown, produced, or manufactured in the territory of 

14 Oman or the United States, or both, by 1 or more 

15 producers, is an originating good if the good satis16 fies the requirements of subsection (b) and all other 

17 applicable requirements of this section. 

18 (d) VALUE OF MATERIALS.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the value of a material produced in the 

21 territory of Oman or the United States, or both, in22 cludes the following: 

23 (A) The price actually paid or payable for 

24 the material by the producer of the good. 


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1 (B) The freight, insurance, packing, and 

2 all other costs incurred in transporting the ma3 terial to the producer’s plant, if such costs are 

4 not included in the price referred to in subpara5 graph (A). 

6 (C) The cost of waste or spoilage resulting 

7 from the use of the material in the growth, pro8 duction, or manufacture of the good, less the 

9 value of recoverable scrap. 

10 (D) Taxes or customs duties imposed on 

11 the material by Oman or the United States, or 

12 both, if the taxes or customs duties are not re13 mitted upon exportation from the territory of 

14 Oman or the United States, as the case may be. 

15 (2) EXCEPTION.—If the relationship between 

16 the producer of a good and the seller of a material 

17 influenced the price actually paid or payable for the 

18 material, or if there is no price actually paid or pay19 able by the producer for the material, the value of 

20 the material produced in the territory of Oman or 

21 the United States, or both, includes the following: 

22 (A) All expenses incurred in the growth, 

23 production, or manufacture of the material, in24 cluding general expenses. 

25 (B) A reasonable amount for profit. 


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1 (C) Freight, insurance, packing, and all 

2 other costs incurred in transporting the mate3 rial to the producer’s plant. 

4 (e) PACKAGING AND PACKING MATERIALS AND CON5 TAINERS FOR RETAIL SALE AND FOR SHIPMENT.—Pack6 aging and packing materials and containers for retail sale 

7 and shipment shall be disregarded in determining whether 

8 a good qualifies as an originating good, except to the ex9 tent that the value of such packaging and packing mate10 rials and containers has been included in meeting the re11 quirements set forth in subsection (b)(2). 

12 (f) INDIRECT MATERIALS.—Indirect materials shall 

13 be disregarded in determining whether a good qualifies as 

14 an originating good, except that the cost of such indirect 

15 materials may be included in meeting the requirements set 

16 forth in subsection (b)(2). 

17 (g) TRANSIT AND TRANSSHIPMENT.—A good shall 

18 not be considered to meet the requirement of subsection 

19 (b)(1)(A) if, after exportation from the territory of Oman 

20 or the United States, the good undergoes production, man21 ufacturing, or any other operation outside the territory of 

22 Oman or the United States, other than unloading, reload23 ing, or any other operation necessary to preserve the good 

24 in good condition or to transport the good to the territory 

25 of Oman or the United States. 


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1 (h) TEXTILE AND APPAREL GOODS.— 

2 (1) DE MINIMIS AMOUNTS OF NONORIGINATING

3 MATERIALS.— 

4 (A) IN GENERAL.—Except as provided in 

5 subparagraph (B), a textile or apparel good 

6 that is not an originating good because certain 

7 fibers or yarns used in the production of the 

8 component of the good that determines the tar9 iff classification of the good do not undergo an 

10 applicable change in tariff classification set out 

11 in Annex 3–A of the Agreement shall be consid12 ered to be an originating good if the total 

13 weight of all such fibers or yarns in that com14 ponent is not more than 7 percent of the total 

15 weight of that component. 

16 (B) CERTAIN TEXTILE OR APPAREL

17 GOODS.—A textile or apparel good containing 

18 elastomeric yarns in the component of the good 

19 that determines the tariff classification of the 

20 good shall be considered to be an originating 

21 good only if such yarns are wholly formed in 

22 the territory of Oman or the United States. 

23 (C) YARN, FABRIC, OR GROUP OF FI24 BERS.—For purposes of this paragraph, in the 

25 case of a textile or apparel good that is a yarn, 


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1 fabric, or group of fibers, the term ‘‘component 

2 of the good that determines the tariff classifica3 tion of the good’’ means all of the fibers in the 

4 yarn, fabric, or group of fibers. 

5 (2) GOODS PUT UP IN SETS FOR RETAIL

6 SALE.—Notwithstanding the rules set forth in Annex 

7 3–A of the Agreement, textile or apparel goods clas8 sifiable as goods put up in sets for retail sale as pro9 vided for in General Rule of Interpretation 3 of the 

10 HTS shall not be considered to be originating goods 

11 unless each of the goods in the set is an originating 

12 good or the total value of the nonoriginating goods 

13 in the set does not exceed 10 percent of the value 

14 of the set determined for purposes of assessing cus15 toms duties. 

16 (i) DEFINITIONS.—In this section: 

17 (1) DIRECT COSTS OF PROCESSING OPER18 ATIONS.— 

19 (A) IN GENERAL.—The term ‘‘direct costs 

20 of processing operations’’, with respect to a 

21 good, includes, to the extent they are includable 

22 in the appraised value of the good when im23 ported into Oman or the United States, as the 

24 case may be, the following: 


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1 (i) All actual labor costs involved in 

2 the growth, production, or manufacture of 

3 the good, including fringe benefits, on-the4 job training, and the cost of engineering, 

5 supervisory, quality control, and similar 

6 personnel. 

7 (ii) Tools, dies, molds, and other indi8 rect materials, and depreciation on ma9 chinery and equipment that are allocable 

10 to the good. 

11 (iii) Research, development, design, 

12 engineering, and blueprint costs, to the ex13 tent that they are allocable to the good. 

14 (iv) Costs of inspecting and testing 

15 the good. 

16 (v) Costs of packaging the good for 

17 export to the territory of the other country. 

18 (B) EXCEPTIONS.—The term ‘‘direct costs 

19 of processing operations’’ does not include costs 

20 that are not directly attributable to a good or 

21 are not costs of growth, production, or manu22 facture of the good, such as— 

23 (i) profit; and 

24 (ii) general expenses of doing business 

25 that are either not allocable to the good or 


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1 are not related to the growth, production, 

2 or manufacture of the good, such as ad3 ministrative salaries, casualty and liability 

4 insurance, advertising, and sales staff sala5 ries, commissions, or expenses. 

6 (2) GOOD.—The term ‘‘good’’ means any mer7 chandise, product, article, or material. 

8 (3) GOOD WHOLLY THE GROWTH, PRODUCT, OR

9 MANUFACTURE OF OMAN OR THE UNITED STATES, 

10 OR BOTH.—The term ‘‘good wholly the growth, 

11 product, or manufacture of Oman or the United 

12 States, or both’’ means— 

13 (A) a mineral good extracted in the terri14 tory of Oman or the United States, or both; 

15 (B) a vegetable good, as such a good is 

16 provided for in the HTS, harvested in the terri17 tory of Oman or the United States, or both; 

18 (C) a live animal born and raised in the 

19 territory of Oman or the United States, or 

20 both; 

21 (D) a good obtained from live animals 

22 raised in the territory of Oman or the United 

23 States, or both; 


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1 (E) a good obtained from hunting, trap2 ping, or fishing in the territory of Oman or the 

3 United States, or both; 

4 (F) a good (fish, shellfish, and other ma5 rine life) taken from the sea by vessels reg6 istered or recorded with Oman or the United 

7 States and flying the flag of that country; 

8 (G) a good produced from goods referred 

9 to in subparagraph (F) on board factory ships 

10 registered or recorded with Oman or the United 

11 States and flying the flag of that country; 

12 (H) a good taken by Oman or the United 

13 States or a person of Oman or the United 

14 States from the seabed or beneath the seabed 

15 outside territorial waters, if Oman or the 

16 United States, as the case may be, has rights 

17 to exploit such seabed; 

18 (I) a good taken from outer space, if such 

19 good is obtained by Oman or the United States 

20 or a person of Oman or the United States and 

21 not processed in the territory of a country other 

22 than Oman or the United States; 

23 (J) waste and scrap derived from— 


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1 (i) production or manufacture in the 

2 territory of Oman or the United States, or 

3 both; or 

4 (ii) used goods collected in the terri5 tory of Oman or the United States, or 

6 both, if such goods are fit only for the re7 covery of raw materials; 

8 (K) a recovered good derived in the terri9 tory of Oman or the United States from used 

10 goods and utilized in the territory of that coun11 try in the production of remanufactured goods; 

12 and 

13 (L) a good produced in the territory of 

14 Oman or the United States, or both, exclu15 sively— 

16 (i) from goods referred to in subpara17 graphs (A) through (J), or 

18 (ii) from the derivatives of goods re19 ferred to in clause (i), 

20 at any stage of production. 

21 (4) INDIRECT MATERIAL.—The term ‘‘indirect 

22 material’’ means a good used in the growth, produc23 tion, manufacture, testing, or inspection of a good 

24 but not physically incorporated into the good, or a 

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1 eration of equipment associated with the growth, 

2 production, or manufacture of a good, including— 

3 (A) fuel and energy; 

4 (B) tools, dies, and molds; 

5 (C) spare parts and materials used in the 

6 maintenance of equipment and buildings; 

7 (D) lubricants, greases, compounding ma8 terials, and other materials used in the growth, 

9 production, or manufacture of a good or used 

10 to operate equipment and buildings; 

11 (E) gloves, glasses, footwear, clothing, 

12 safety equipment, and supplies; 

13 (F) equipment, devices, and supplies used 

14 for testing or inspecting the good; 

15 (G) catalysts and solvents; and 

16 (H) any other goods that are not incor17 porated into the good but the use of which in 

18 the growth, production, or manufacture of the 

19 good can reasonably be demonstrated to be a 

20 part of that growth, production, or manufac21 ture. 

22 (5) MATERIAL.—The term ‘‘material’’ means a 

23 good, including a part or ingredient, that is used in 

24 the growth, production, or manufacture of another 

25 good that is a new or different article of commerce 


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1 that has been grown, produced, or manufactured in 

2 Oman or the United States, or both. 

3 (6) MATERIAL PRODUCED IN THE TERRITORY

4 OF OMAN OR THE UNITED STATES, OR BOTH.—The 

5 term ‘‘material produced in the territory of Oman or 

6 the United States, or both’’ means a good that is ei7 ther wholly the growth, product, or manufacture of 

8 Oman or the United States, or both, or a new or dif9 ferent article of commerce that has been grown, pro10 duced, or manufactured in the territory of Oman or 

11 the United States, or both. 

12 (7) NEW OR DIFFERENT ARTICLE OF COM13 MERCE.— 

14 (A) IN GENERAL.—The term ‘‘new or dif15 ferent article of commerce’’ means, except as 

16 provided in subparagraph (B), a good that— 

17 (i) has been substantially transformed 

18 from a good or material that is not wholly 

19 the growth, product, or manufacture of 

20 Oman or the United States, or both; and 

21 (ii) has a new name, character, or use 

22 distinct from the good or material from 

23 which it was transformed. 

24 (B) EXCEPTION.—A good shall not be con25 sidered a new or different article of commerce 


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1 by virtue of having undergone simple combining 

2 or packaging operations, or mere dilution with 

3 water or another substance that does not mate4 rially alter the characteristics of the good. 

5 (8) RECOVERED GOODS.—The term ‘‘recovered 

6 goods’’ means materials in the form of individual 

7 parts that result from— 

8 (A) the disassembly of used goods into in9 dividual parts; and 

10 (B) the cleaning, inspecting, testing, or 

11 other processing of those parts as necessary for 

12 improvement to sound working condition. 

13 (9) REMANUFACTURED GOOD.—The term ‘‘re14 manufactured good’’ means an industrial good that 

15 is assembled in the territory of Oman or the United 

16 States and that— 

17 (A) is entirely or partially comprised of re18 covered goods; 

19 (B) has a similar life expectancy to a like 

20 good that is new; and 

21 (C) enjoys a factory warranty similar to 

22 that of a like good that is new. 

23 (10) SIMPLE COMBINING OR PACKAGING OPER24 ATIONS.—The term ‘‘simple combining or packaging 

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1 teries to devices, fitting together a small number of 

2 components by bolting, gluing, or soldering, and re3 packing or packaging components together. 

4 (11) SUBSTANTIALLY TRANSFORMED.—The 

5 term ‘‘substantially transformed’’ means, with re6 spect to a good or material, changed as the result 

7 of a manufacturing or processing operation so 

8 that— 

9 (A)(i) the good or material is converted 

10 from a good that has multiple uses into a good 

11 or material that has limited uses; 

12 (ii) the physical properties of the good or 

13 material are changed to a significant extent; or 

14 (iii) the operation undergone by the good 

15 or material is complex by reason of the number 

16 of different processes and materials involved 

17 and the time and level of skill required to per18 form those processes; and 

19 (B) the good or material loses its separate 

20 identity in the manufacturing or processing op21 eration. 

22 (j) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

23 (1) IN GENERAL.—The President is authorized 

24 to proclaim, as part of the HTS— 


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1 (A) the provisions set forth in Annex 3–A 

2 and Annex 4–A of the Agreement; and 

3 (B) any additional subordinate category 

4 that is necessary to carry out this title, con5 sistent with the Agreement. 

6 (2) MODIFICATIONS.— 

7 (A) IN GENERAL.—Subject to the consulta8 tion and layover provisions of section 104, the 

9 President may proclaim modifications to the 

10 provisions proclaimed under the authority of 

11 paragraph (1)(A), other than provisions of 

12 chapters 50 through 63 of the HTS (as in13 cluded in Annex 3–A of the Agreement). 

14 (B) ADDITIONAL PROCLAMATIONS.—Not15 withstanding subparagraph (A), and subject to 

16 the consultation and layover provisions of sec17 tion 104, the President may proclaim— 

18 (i) modifications to the provisions pro19 claimed under the authority of paragraph 

20 (1)(A) as are necessary to implement an 

21 agreement with Oman pursuant to article 

22 3.2.5 of the Agreement; and 

23 (ii) before the end of the 1-year period 

24 beginning on the date of the enactment of 

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1 graphical, clerical, or other nonsubstantive 

2 technical error regarding the provisions of 

3 chapters 50 through 63 of the HTS (as in4 cluded in Annex 3–A of the Agreement). 

5 SEC. 203. CUSTOMS USER FEES. 

6 Section 13031(b) of the Consolidated Omnibus Budg7 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

8 amended by adding after paragraph (16) the following: 

9 ‘‘(17) No fee may be charged under subsection (a) 

10 (9) or (10) with respect to goods that qualify as origi11 nating goods under section 202 of the United States12 Oman Free Trade Agreement Implementation Act. Any 

13 service for which an exemption from such fee is provided 

14 by reason of this paragraph may not be funded with 

15 money contained in the Customs User Fee Account.’’. 

16 SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

17 AND APPAREL GOODS. 

18 (a) ACTION DURING VERIFICATION.— 

19 (1) IN GENERAL.—If the Secretary of the 

20 Treasury requests the Government of Oman to con21 duct a verification pursuant to article 3.3 of the 

22 Agreement for purposes of making a determination 

23 under paragraph (2), the President may direct the 

24 Secretary to take appropriate action described in 


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1 subsection (b) while the verification is being con2 ducted. 

3 (2) DETERMINATION.—A determination under 

4 this paragraph is a determination— 

5 (A) that an exporter or producer in Oman 

6 is complying with applicable customs laws, reg7 ulations, procedures, requirements, or practices 

8 affecting trade in textile or apparel goods; or 

9 (B) that a claim that a textile or apparel 

10 good exported or produced by such exporter or 

11 producer— 

12 (i) qualifies as an originating good 

13 under section 202, or 

14 (ii) is a good of Oman, 

15 is accurate. 

16 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

17 action under subsection (a)(1) includes— 

18 (1) suspension of liquidation of the entry of any 

19 textile or apparel good exported or produced by the 

20 person that is the subject of a verification referred 

21 to in subsection (a)(1) regarding compliance de22 scribed in subsection (a)(2)(A), in a case in which 

23 the request for verification was based on a reason24 able suspicion of unlawful activity related to such 

25 good; and 


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1 (2) suspension of liquidation of the entry of a 

2 textile or apparel good for which a claim has been 

3 made that is the subject of a verification referred to 

4 in subsection (a)(1) regarding a claim described in 

5 subsection (a)(2)(B). 

6 (c) ACTION WHEN INFORMATION IS INSUFFI7 CIENT.—If the Secretary of the Treasury determines that 

8 the information obtained within 12 months after making 

9 a request for a verification under subsection (a)(1) is in10 sufficient to make a determination under subsection 

11 (a)(2), the President may direct the Secretary to take ap12 propriate action described in subsection (d) until such 

13 time as the Secretary receives information sufficient to 

14 make a determination under subsection (a)(2) or until 

15 such earlier date as the President may direct. 

16 (d) APPROPRIATE ACTION DESCRIBED.—Appro17 priate action referred to in subsection (c) includes— 

18 (1) publication of the name and address of the 

19 person that is the subject of the verification; 

20 (2) denial of preferential tariff treatment under 

21 the Agreement to— 

22 (A) any textile or apparel good exported or 

23 produced by the person that is the subject of a 

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1 garding compliance described in subsection 

2 (a)(2)(A); or 

3 (B) a textile or apparel good for which a 

4 claim has been made that is the subject of a 

5 verification referred to in subsection (a)(1) re6 garding a claim described in subsection 

7 (a)(2)(B); and 

8 (3) denial of entry into the United States of— 

9 (A) any textile or apparel good exported or 

10 produced by the person that is the subject of a 

11 verification referred to in subsection (a)(1) re12 garding compliance described in subsection 

13 (a)(2)(A); or 

14 (B) a textile or apparel good for which a 

15 claim has been made that is the subject of a 

16 verification referred to in subsection (a)(1) re17 garding a claim described in subsection 

18 (a)(2)(B). 

19 SEC. 205. RELIQUIDATION OF ENTRIES. 

20 Subsection (d) of section 520 of the Tariff Act of 

21 1930 (19 U.S.C. 1520(d)) is amended— 

22 (1) in the matter preceding paragraph (1)— 

23 (A) by striking ‘‘or’’; and 

24 (B) by striking ‘‘for which’’ and inserting 

25 ‘‘, or section 202 of the United States-Oman 


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1 Free Trade Agreement Implementation Act for 

2 which’’; and 

3 (2) in paragraph (3), by inserting ‘‘and infor4 mation’’ after ‘‘documentation’’. 

5 SEC. 206. REGULATIONS. 

6 The Secretary of the Treasury shall prescribe such 

7 regulations as may be necessary to carry out— 

8 (1) subsections (a) through (i) of section 202; 

9 (2) the amendment made by section 203; and 

10 (3) proclamations issued under section 202(j). 

11 TITLE III—RELIEF FROM 

12 IMPORTS 

13 SEC. 301. DEFINITIONS. 

14 In this title: 

15 (1) OMANI ARTICLE.—The term ‘‘Omani arti16 cle’’ means an article that— 

17 (A) qualifies as an originating good under 

18 section 202(b); or 

19 (B) receives preferential tariff treatment 

20 under paragraphs 8 through 11 of article 3.2 of 

21 the Agreement. 

22 (2) OMANI TEXTILE OR APPAREL ARTICLE.— 

23 The term ‘‘Omani textile or apparel article’’ means 

24 an article that— 


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1 (A) is listed in the Annex to the Agree2 ment on Textiles and Clothing referred to in 

3 section 101(d)(4) of the Uruguay Round Agree4 ments Act (19 U.S.C. 3511(d)(4)); and 

5 (B) is an Omani article. 

6 (3) COMMISSION.—The term ‘‘Commission’’ 

7 means the United States International Trade Com8 mission. 

9 Subtitle A—Relief From Imports 

10 Benefiting From the Agreement 

11 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

12 (a) FILING OF PETITION.—A petition requesting ac13 tion under this subtitle for the purpose of adjusting to 

14 the obligations of the United States under the Agreement 

15 may be filed with the Commission by an entity, including 

16 a trade association, firm, certified or recognized union, or 

17 group of workers, that is representative of an industry. 

18 The Commission shall transmit a copy of any petition filed 

19 under this subsection to the United States Trade Rep20 resentative. 

21 (b) INVESTIGATION AND DETERMINATION.—Upon 

22 the filing of a petition under subsection (a), the Commis23 sion, unless subsection (d) applies, shall promptly initiate 

24 an investigation to determine whether, as a result of the 

25 reduction or elimination of a duty provided for under the 


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1 Agreement, an Omani article is being imported into the 

2 United States in such increased quantities, in absolute 

3 terms or relative to domestic production, and under such 

4 conditions that imports of the Omani article constitute a 

5 substantial cause of serious injury or threat thereof to the 

6 domestic industry producing an article that is like, or di7 rectly competitive with, the imported article. 

8 (c) APPLICABLE PROVISIONS.—The following provi9 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

10 2252) apply with respect to any investigation initiated 

11 under subsection (b): 

12 (1) Paragraphs (1)(B) and (3) of subsection 

13 (b). 

14 (2) Subsection (c). 

15 (3) Subsection (i). 

16 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

17 investigation may be initiated under this section with re18 spect to any Omani article if, after the date on which the 

19 Agreement enters into force with respect to the United 

20 States, import relief has been provided with respect to that 

21 Omani article under this subtitle. 

22 SEC. 312. COMMISSION ACTION ON PETITION. 

23 (a) DETERMINATION.—Not later than 120 days after 

24 the date on which an investigation is initiated under secVerDate Aug 31 2005 22:51 Jun 28, 2006 Jkt 049200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S3569.RS S3569

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1 tion 311(b) with respect to a petition, the Commission 

2 shall make the determination required under that section. 

3 (b) APPLICABLE PROVISIONS.—For purposes of this 

4 subtitle, the provisions of paragraphs (1), (2), and (3) of 

5 section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

6 1330(d) (1), (2), and (3)) shall be applied with respect 

7 to determinations and findings made under this section 

8 as if such determinations and findings were made under 

9 section 202 of the Trade Act of 1974 (19 U.S.C. 2252). 

10 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

11 DETERMINATION AFFIRMATIVE.— 

12 (1) IN GENERAL.—If the determination made 

13 by the Commission under subsection (a) with respect 

14 to imports of an article is affirmative, or if the 

15 President may consider a determination of the Com16 mission to be an affirmative determination as pro17 vided for under paragraph (1) of section 330(d) of 

18 the Tariff Act of 1930 (19 U.S.C. 1330(d)), the 

19 Commission shall find, and recommend to the Presi20 dent in the report required under subsection (d), the 

21 amount of import relief that is necessary to remedy 

22 or prevent the injury found by the Commission in 

23 the determination and to facilitate the efforts of the 

24 domestic industry to make a positive adjustment to 

25 import competition. 


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1 (2) LIMITATION ON RELIEF.—The import relief 

2 recommended by the Commission under this sub3 section shall be limited to that described in section 

4 313(c). 

5 (3) VOTING; SEPARATE VIEWS.—Only those 

6 members of the Commission who voted in the af7 firmative under subsection (a) are eligible to vote on 

8 the proposed action to remedy or prevent the injury 

9 found by the Commission. Members of the Commis10 sion who did not vote in the affirmative may submit, 

11 in the report required under subsection (d), separate 

12 views regarding what action, if any, should be taken 

13 to remedy or prevent the injury. 

14 (d) REPORT TO PRESIDENT.—Not later than the 

15 date that is 30 days after the date on which a determina16 tion is made under subsection (a) with respect to an inves17 tigation, the Commission shall submit to the President a 

18 report that includes— 

19 (1) the determination made under subsection 

20 (a) and an explanation of the basis for the deter21 mination; 

22 (2) if the determination under subsection (a) is 

23 affirmative, any findings and recommendations for 

24 import relief made under subsection (c) and an ex25 planation of the basis for each recommendation; and 


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1 (3) any dissenting or separate views by mem2 bers of the Commission regarding the determination 

3 and recommendation referred to in paragraphs (1) 

4 and (2). 

5 (e) PUBLIC NOTICE.—Upon submitting a report to 

6 the President under subsection (d), the Commission shall 

7 promptly make public such report (with the exception of 

8 information which the Commission determines to be con9 fidential) and shall cause a summary thereof to be pub10 lished in the Federal Register. 

11 SEC. 313. PROVISION OF RELIEF. 

12 (a) IN GENERAL.—Not later than the date that is 

13 30 days after the date on which the President receives the 

14 report of the Commission in which the Commission’s de15 termination under section 312(a) is affirmative, or which 

16 contains a determination under section 312(a) that the 

17 President considers to be affirmative under paragraph (1) 

18 of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 

19 1330(d)(1)), the President, subject to subsection (b), shall 

20 provide relief from imports of the article that is the subject 

21 of such determination to the extent that the President de22 termines necessary to remedy or prevent the injury found 

23 by the Commission and to facilitate the efforts of the do24 mestic industry to make a positive adjustment to import 

25 competition. 


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1 (b) EXCEPTION.—The President is not required to 

2 provide import relief under this section if the President 

3 determines that the provision of the import relief will not 

4 provide greater economic and social benefits than costs. 

5 (c) NATURE OF RELIEF.— 

6 (1) IN GENERAL.—The import relief that the 

7 President is authorized to provide under this section 

8 with respect to imports of an article is as follows: 

9 (A) The suspension of any further reduc10 tion provided for under Annex 2–B of the 

11 Agreement in the duty imposed on such article. 

12 (B) An increase in the rate of duty im13 posed on such article to a level that does not 

14 exceed the lesser of— 

15 (i) the column 1 general rate of duty 

16 imposed under the HTS on like articles at 

17 the time the import relief is provided; or 

18 (ii) the column 1 general rate of duty 

19 imposed under the HTS on like articles on 

20 the day before the date on which the 

21 Agreement enters into force. 

22 (2) PROGRESSIVE LIBERALIZATION.—If the pe23 riod for which import relief is provided under this 

24 section is greater than 1 year, the President shall 

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1 lief at regular intervals during the period in which 

2 the relief is in effect. 

3 (d) PERIOD OF RELIEF.— 

4 (1) IN GENERAL.—Subject to paragraph (2), 

5 any import relief that the President provides under 

6 this section may not, in the aggregate, be in effect 

7 for more than 3 years. 

8 (2) EXTENSION.— 

9 (A) IN GENERAL.—If the initial period for 

10 any import relief provided under this section is 

11 less than 3 years, the President, after receiving 

12 a determination from the Commission under 

13 subparagraph (B) that is affirmative, or which 

14 the President considers to be affirmative under 

15 paragraph (1) of section 330(d) of the Tariff 

16 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex17 tend the effective period of any import relief 

18 provided under this section, subject to the limi19 tation under paragraph (1), if the President de20 termines that— 

21 (i) the import relief continues to be 

22 necessary to remedy or prevent serious in23 jury and to facilitate adjustment by the do24 mestic industry to import competition; and 


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1 (ii) there is evidence that the industry 

2 is making a positive adjustment to import 

3 competition. 

4 (B) ACTION BY COMMISSION.— 

5 (i) INVESTIGATION.—Upon a petition 

6 on behalf of the industry concerned that is 

7 filed with the Commission not earlier than 

8 the date which is 9 months, and not later 

9 than the date which is 6 months, before 

10 the date any action taken under subsection 

11 (a) is to terminate, the Commission shall 

12 conduct an investigation to determine 

13 whether action under this section continues 

14 to be necessary to remedy or prevent seri15 ous injury and to facilitate adjustment by 

16 the domestic industry to import competi17 tion and whether there is evidence that the 

18 industry is making a positive adjustment 

19 to import competition. 

20 (ii) NOTICE AND HEARING.—The 

21 Commission shall publish notice of the 

22 commencement of any proceeding under 

23 this subparagraph in the Federal Register 

24 and shall, within a reasonable time there25 after, hold a public hearing at which the 


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1 Commission shall afford interested parties 

2 and consumers an opportunity to be 

3 present, to present evidence, and to re4 spond to the presentations of other parties 

5 and consumers, and otherwise to be heard. 

6 (iii) REPORT.—The Commission shall 

7 transmit to the President a report on its 

8 investigation and determination under this 

9 subparagraph not later than 60 days be10 fore the action under subsection (a) is to 

11 terminate, unless the President specifies a 

12 different date. 

13 (e) RATE AFTER TERMINATION OF IMPORT RE14 LIEF.—When import relief under this section is termi15 nated with respect to an article, the rate of duty on that 

16 article shall be the rate that would have been in effect, 

17 but for the provision of such relief, on the date on which 

18 the relief terminates. 

19 (f) ARTICLES EXEMPT FROM RELIEF.—No import 

20 relief may be provided under this section on any article 

21 that has been subject to import relief under this subtitle 

22 after the date on which the Agreement enters into force. 

23 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

24 (a) GENERAL RULE.—Subject to subsection (b), no 

25 import relief may be provided under this subtitle after the 


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1 date that is 10 years after the date on which the Agree2 ment enters into force. 

3 (b) PRESIDENTIAL DETERMINATION.—Import relief 

4 may be provided under this subtitle in the case of an 

5 Omani article after the date on which such relief would, 

6 but for this subsection, terminate under subsection (a), 

7 if the President determines that Oman has consented to 

8 such relief. 

9 SEC. 315. COMPENSATION AUTHORITY. 

10 For purposes of section 123 of the Trade Act of 1974 

11 (19 U.S.C. 2133), any import relief provided by the Presi12 dent under section 313 shall be treated as action taken 

13 under chapter 1 of title II of such Act (19 U.S.C. 2251 

14 et seq.). 

15 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

16 Section 202(a)(8) of the Trade Act of 1974 (19 

17 U.S.C. 2252(a)(8)) is amended in the first sentence— 

18 (1) by striking ‘‘and’’; and 

19 (2) by inserting before the period at the end ‘‘, 

20 and title III of the United States-Oman Free Trade 

21 Agreement Implementation Act’’. 


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1 Subtitle B—Textile and Apparel 

2 Safeguard Measures 

3 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

4 (a) IN GENERAL.—A request under this subtitle for 

5 the purpose of adjusting to the obligations of the United 

6 States under the Agreement may be filed with the Presi7 dent by an interested party. Upon the filing of a request, 

8 the President shall review the request to determine, from 

9 information presented in the request, whether to com10 mence consideration of the request. 

11 (b) PUBLICATION OF REQUEST.—If the President de12 termines that the request under subsection (a) provides 

13 the information necessary for the request to be considered, 

14 the President shall cause to be published in the Federal 

15 Register a notice of commencement of consideration of the 

16 request, and notice seeking public comments regarding the 

17 request. The notice shall include a summary of the request 

18 and the dates by which comments and rebuttals must be 

19 received. 

20 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

21 (a) DETERMINATION.— 

22 (1) IN GENERAL.—If a positive determination is 

23 made under section 321(b), the President shall de24 termine whether, as a result of the reduction or 

25 elimination of a duty under the Agreement, an 


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1 Omani textile or apparel article is being imported 

2 into the United States in such increased quantities, 

3 in absolute terms or relative to the domestic market 

4 for that article, and under such conditions as to 

5 cause serious damage, or actual threat thereof, to a 

6 domestic industry producing an article that is like, 

7 or directly competitive with, the imported article. 

8 (2) SERIOUS DAMAGE.—In making a deter9 mination under paragraph (1), the President— 

10 (A) shall examine the effect of increased 

11 imports on the domestic industry, as reflected 

12 in changes in such relevant economic factors as 

13 output, productivity, utilization of capacity, in14 ventories, market share, exports, wages, em15 ployment, domestic prices, profits, and invest16 ment, none of which is necessarily decisive; and 

17 (B) shall not consider changes in tech18 nology or consumer preference as factors sup19 porting a determination of serious damage or 

20 actual threat thereof. 

21 (b) PROVISION OF RELIEF.— 

22 (1) IN GENERAL.—If a determination under 

23 subsection (a) is affirmative, the President may pro24 vide relief from imports of the article that is the 

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1 graph (2), to the extent that the President deter2 mines necessary to remedy or prevent the serious 

3 damage and to facilitate adjustment by the domestic 

4 industry to import competition. 

5 (2) NATURE OF RELIEF.—The relief that the 

6 President is authorized to provide under this sub7 section with respect to imports of an article is an in8 crease in the rate of duty imposed on the article to 

9 a level that does not exceed the lesser of— 

10 (A) the column 1 general rate of duty im11 posed under the HTS on like articles at the 

12 time the import relief is provided; or 

13 (B) the column 1 general rate of duty im14 posed under the HTS on like articles on the 

15 day before the date on which the Agreement en16 ters into force. 

17 SEC. 323. PERIOD OF RELIEF. 

18 (a) IN GENERAL.—Subject to subsection (b), any im19 port relief that the President provides under subsection 

20 (b) of section 322 may not, in the aggregate, be in effect 

21 for more than 3 years. 

22 (b) EXTENSION.—If the initial period for any import 

23 relief provided under section 322 is less than 3 years, the 

24 President may extend the effective period of any import 

25 relief provided under that section, subject to the limitation 


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1 set forth in subsection (a), if the President determines 

2 that— 

3 (1) the import relief continues to be necessary 

4 to remedy or prevent serious damage and to facili5 tate adjustment by the domestic industry to import 

6 competition; and 

7 (2) there is evidence that the industry is mak8 ing a positive adjustment to import competition. 

9 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

10 The President may not provide import relief under 

11 this subtitle with respect to any article if— 

12 (1) the article has been subject to import relief 

13 under this subtitle after the date on which the 

14 Agreement enters into force; or 

15 (2) the article is subject to import relief under 

16 chapter 1 of title II of the Trade Act of 1974 (19 

17 U.S.C. 2251 et seq.). 

18 SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF. 

19 When import relief under this subtitle is terminated 

20 with respect to an article, the rate of duty on that article 

21 shall be the rate that would have been in effect, but for 

22 the provision of such relief, on the date on which the relief 

23 terminates. 


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48 

•S 3569 RS

1 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

2 No import relief may be provided under this subtitle 

3 with respect to any article after the date that is 10 years 

4 after the date on which duties on the article are eliminated 

5 pursuant to the Agreement. 

6 SEC. 327. COMPENSATION AUTHORITY. 

7 For purposes of section 123 of the Trade Act of 1974 

8 (19 U.S.C. 2133), any import relief provided by the Presi9 dent under this subtitle shall be treated as action taken 

10 under chapter 1 of title II of such Act. 

11 SEC. 328. CONFIDENTIAL BUSINESS INFORMATION. 

12 The President may not release information that is 

13 submitted in a proceeding under this subtitle and that the 

14 President considers to be confidential business informa15 tion unless the party submitting the confidential business 

16 information had notice, at the time of submission, that 

17 such information would be released, or such party subse18 quently consents to the release of the information. To the 

19 extent a party submits confidential business information 

20 to the President in a proceeding under this subtitle, the 

21 party shall also submit a nonconfidential version of the 

22 information, in which the confidential business informa23 tion is summarized or, if necessary, deleted. 


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49 

•S 3569 RS

1 TITLE IV—PROCUREMENT 

2 SEC. 401. ELIGIBLE PRODUCTS. 

3 Section 308(4)(A) of the Trade Agreements Act of 

4 1979 (19 U.S.C. 2518(4)(A)) is amended— 

5 (1) by striking ‘‘or’’ at the end of clause (iv); 

6 (2) by striking the period at the end of clause 

7 (v) and inserting ‘‘; or’’; and 

8 (3) by adding at the end the following new 

9 clause: 

10 ‘‘(vi) a party to the United States11 Oman Free Trade Agreement, a product or 

12 service of that country or instrumentality 

13 which is covered under that Agreement for 

14 procurement by the United States.’’. 


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Calendar No. 499 

109TH CONGRESS 

2D SESSION S. 3569 

A BILL 

To implement the United States-Oman Free Trade 

Agreement. 

JUNE 28, 2006 

Reported without amendment 


sroberts on PROD1PC70 with BILLS