II 

109TH CONGRESS 

1ST SESSION S. 2027 

To implement the United States-Bahrain Free Trade Agreement. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 16, 2005 

Mr. GRASSLEY (for himself and Mr. BAUCUS) (by request) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To implement the United States-Bahrain 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-Bahrain Free Trade Agreement Imple6 mentation Act’’. 

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

8 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 
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Sec. 101. Approval and entry into force of the Agreement. 

Sec. 102. Relationship of the agreement to United States and State law. 

Sec. 103. Implementing actions in anticipation of entry into force and initial 

regulations. 

Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed actions. 

Sec. 105. Administration of dispute settlement proceedings. 

Sec. 106. Effective dates; effect of termination. 

TITLE II—CUSTOMS PROVISIONS 

Sec. 201. Tariff modifications. 

Sec. 202. Rules of origin. 

Sec. 203. Customs user fees. 

Sec. 204. Enforcement relating to trade in textile and apparel goods. 

Sec. 205. Regulations. 

TITLE III—RELIEF FROM IMPORTS 

Sec. 301. Definitions. 

Subtitle A—Relief From Imports Benefiting From the Agreement 

Sec. 311. Commencing of action for relief. 

Sec. 312. Commission action on petition. 

Sec. 313. Provision of relief. 

Sec. 314. Termination of relief authority. 

Sec. 315. Compensation authority. 

Sec. 316. Confidential business information. 

Subtitle B—Textile and Apparel Safeguard Measures 

Sec. 321. Commencement of action for relief. 

Sec. 322. Determination and provision of relief. 

Sec. 323. Period of relief. 

Sec. 324. Articles exempt from relief. 

Sec. 325. Rate after termination of import relief. 

Sec. 326. Termination of relief authority. 

Sec. 327. Compensation authority. 

Sec. 328. Confidential business information. 

TITLE IV—PROCUREMENT 

Sec. 401. Eligible products. 

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 Bahrain 

5 entered into under the authority of section 2103(b) 
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1 of the Bipartisan Trade Promotion Authority Act of 

2 2002 (19 U.S.C. 3803(b)); 

3 (2) to strengthen and develop economic rela4 tions between the United States and Bahrain for 

5 their mutual benefit; 

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

7 through the reduction and elimination of barriers to 

8 trade in goods and services; and 

9 (4) to lay the foundation for further coopera10 tion to expand and enhance the benefits of such 

11 Agreement. 

12 SEC. 3. DEFINITIONS. 

13 In this Act: 

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

15 means the United States-Bahrain Free Trade Agree16 ment approved by Congress under section 101(a)(1). 

17 (2) HTS.—The term ‘‘HTS’’ means the Har18 monized Tariff Schedule of the United States. 

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

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

21 Annex to the Agreement on Textiles and Clothing 

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

23 Round Agreements Act (19 U.S.C. 3511(d)(4)). 
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1 TITLE I—APPROVAL OF, AND 

2 GENERAL PROVISIONS RE3 LATING TO, THE AGREEMENT 

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

5 AGREEMENT. 

6 (a) APPROVAL OF AGREEMENT AND STATEMENT OF

7 ADMINISTRATIVE ACTION.—Pursuant to section 2105 of 

8 the Bipartisan Trade Promotion Authority Act of 2002 

9 (19 U.S.C. 3805) and section 151 of the Trade Act of 

10 1974 (19 U.S.C. 2191), Congress approves— 

11 (1) the United States-Bahrain Free Trade 

12 Agreement entered into on September 14, 2004, 

13 with Bahrain and submitted to Congress on Novem14 ber 16, 2005; and 

15 (2) the statement of administrative action pro16 posed to implement the Agreement that was sub17 mitted to Congress on November 16, 2005. 

18 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE

19 AGREEMENT.—At such time as the President determines 

20 that Bahrain has taken measures necessary to bring it 

21 into compliance with those provisions of the Agreement 

22 that are to take effect on the date on which the Agreement 

23 enters into force, the President is authorized to exchange 

24 notes with the Government of Bahrain providing for the 
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1 entry into force, on or after January 1, 2006, 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 with-
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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 19 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 2005 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 19 of 

13 the Agreement. 

14 SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION. 

15 (a) EFFECTIVE DATES.—Except as provided in sub16 section (b), the provisions of this Act and the amendments 

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

18 Agreement enters into force. 

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

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

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

22 date on which the Agreement terminates, the provisions 

23 of this Act (other than this subsection) and the amend24 ments made by this Act shall cease to be effective. 
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1 TITLE II—CUSTOMS PROVISIONS 

2 SEC. 201. TARIFF MODIFICATIONS. 

3 (a) TARIFF MODIFICATIONS PROVIDED FOR IN THE

4 AGREEMENT.— 

5 (1) PROCLAMATION AUTHORITY.—The Presi6 dent may proclaim— 

7 (A) such modifications or continuation of 

8 any duty, 

9 (B) such continuation of duty-free or ex10 cise treatment, or 

11 (C) such additional duties, 

12 as the President determines to be necessary or ap13 propriate to carry out or apply articles 2.3, 2.5, 2.6, 

14 3.2.8, and 3.2.9, and Annex 2–B of the Agreement. 

15 (2) EFFECT ON BAHRAINI GSP STATUS.—Not16 withstanding section 502(a)(1) of the Trade Act of 

17 1974 (19 U.S.C. 2462(a)(1)), the President shall, on 

18 the date on which the Agreement enters into force, 

19 terminate the designation of Bahrain as a bene20 ficiary developing country for purposes of title V of 

21 the Trade Act of 1974 (19 U.S.C. 2461 et seq.). 

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

23 consultation and layover provisions of section 104, the 

24 President may proclaim— 
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1 (1) such modifications or continuation of any 

2 duty, 

3 (2) such modifications as the United States 

4 may agree to with Bahrain regarding the staging of 

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

6 Agreement, 

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

8 treatment, or 

9 (4) such additional duties, 

10 as the President determines to be necessary or appropriate 

11 to maintain the general level of reciprocal and mutually 

12 advantageous concessions with respect to Bahrain pro13 vided for by the Agreement. 

14 (c) CONVERSION TO AD VALOREM RATES.—For pur15 poses of subsections (a) and (b), with respect to any good 

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

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

18 or compound rate of duty, the President may substitute 

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

20 determines to be equivalent to the base rate. 

21 SEC. 202. RULES OF ORIGIN. 

22 (a) APPLICATION AND INTERPRETATION.—In this 

23 section: 

24 (1) TARIFF CLASSIFICATION.—The basis for 

25 any tariff classification is the HTS. 
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1 (2) REFERENCE TO HTS.—Whenever in this 

2 section there is a reference to a heading or sub3 heading, such reference shall be a reference to a 

4 heading or subheading of the HTS. 

5 (b) ORIGINATING GOODS.— 

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

7 and for purposes of implementing the preferential 

8 tariff treatment provided for under the Agreement, 

9 a good is an originating good if— 

10 (A) the good is imported directly— 

11 (i) from the territory of Bahrain into 

12 the territory of the United States; or 

13 (ii) from the territory of the United 

14 States into the territory of Bahrain; and 

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

16 growth, product, or manufacture of Bahrain or 

17 the United States, or both; 

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

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

20 of commerce that has been grown, produced, or 

21 manufactured in Bahrain or the United States, 

22 or both, and meets the requirements of para23 graph (2); or 

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

25 Annex 3–A or 4–A of the Agreement; 
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1 (II)(aa) each of the nonoriginating mate2 rials used in the production of the good under3 goes an applicable change in tariff classification 

4 specified in such Annex as a result of produc5 tion occurring entirely in the territory of Bah6 rain or the United States, or both; or 

7 (bb) the good otherwise satisfies the re8 quirements specified in such Annex; and 

9 (III) the good satisfies all other applicable 

10 requirements of this section. 

11 (2) REQUIREMENTS.—A good described in 

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

13 the sum of— 

14 (A) the value of each material produced in 

15 the territory of Bahrain or the United States, 

16 or both, and 

17 (B) the direct costs of processing oper18 ations performed in the territory of Bahrain or 

19 the United States, or both, 

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

21 the good at the time the good is entered into the ter22 ritory of the United States. 

23 (c) CUMULATION.— 

24 (1) ORIGINATING GOOD OR MATERIAL INCOR25 PORATED INTO GOODS OF OTHER COUNTRY.—An 
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1 originating good, or a material produced in the terri2 tory of Bahrain or the United States, or both, that 

3 is incorporated into a good in the territory of the 

4 other country shall be considered to originate in the 

5 territory of the other country. 

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

7 grown, produced, or manufactured in the territory of 

8 Bahrain or the United States, or both, by 1 or more 

9 producers, is an originating good if the good satis10 fies the requirements of subsection (b) and all other 

11 applicable requirements of this section. 

12 (d) VALUE OF MATERIALS.— 

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the value of a material produced in the 

15 territory of Bahrain or the United States, or both, 

16 includes the following: 

17 (A) The price actually paid or payable for 

18 the material by the producer of the good. 

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

20 all other costs incurred in transporting the ma21 terial to the producer’s plant, if such costs are 

22 not included in the price referred to in subpara23 graph (A). 

24 (C) The cost of waste or spoilage resulting 

25 from the use of the material in the growth, pro-
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1 duction, or manufacture of the good, less the 

2 value of recoverable scrap. 

3 (D) Taxes or customs duties imposed on 

4 the material by Bahrain or the United States, 

5 or both, if the taxes or customs duties are not 

6 remitted upon exportation from the territory of 

7 Bahrain or the United States, as the case may 

8 be. 

9 (2) EXCEPTION.—If the relationship between 

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

11 influenced the price actually paid or payable for the 

12 material, or if there is no price actually paid or pay13 able by the producer for the material, the value of 

14 the material produced in the territory of Bahrain or 

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

16 (A) All expenses incurred in the growth, 

17 production, or manufacture of the material, in18 cluding general expenses. 

19 (B) A reasonable amount for profit. 

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

21 other costs incurred in transporting the mate22 rial to the producer’s plant. 

23 (e) PACKAGING AND PACKING MATERIALS AND CON24 TAINERS FOR RETAIL SALE AND FOR SHIPMENT.—Pack25 aging and packing materials and containers for retail sale 
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1 and shipment shall be disregarded in determining whether 

2 a good qualifies as an originating good, except to the ex3 tent that the value of such packaging and packing mate4 rials and containers has been included in meeting the re5 quirements set forth in subsection (b)(2). 

6 (f) INDIRECT MATERIALS.—Indirect materials shall 

7 be disregarded in determining whether a good qualifies as 

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

9 materials may be included in meeting the requirements set 

10 forth in subsection (b)(2). 

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

12 not be considered to meet the requirement of subsection 

13 (b)(1)(A) if, after exportation from the territory of Bah14 rain or the United States, the good undergoes production, 

15 manufacturing, or any other operation outside the terri16 tory of Bahrain or the United States, other than unload17 ing, reloading, or any other operation necessary to pre18 serve the good in good condition or to transport the good 

19 to the territory of Bahrain or the United States. 

20 (h) TEXTILE AND APPAREL GOODS.— 

21 (1) DE MINIMIS AMOUNTS OF NONORIGINATING

22 MATERIALS.— 

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

24 subparagraph (B), a textile or apparel good 

25 that is not an originating good because certain 
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1 fibers or yarns used in the production of the 

2 component of the good that determines the tar3 iff classification of the good do not undergo an 

4 applicable change in tariff classification set out 

5 in Annex 3–A of the Agreement shall be consid6 ered to be an originating good if the total 

7 weight of all such fibers or yarns in that com8 ponent is not more than 7 percent of the total 

9 weight of that component. 

10 (B) CERTAIN TEXTILE OR APPAREL

11 GOODS.—A textile or apparel good containing 

12 elastomeric yarns in the component of the good 

13 that determines the tariff classification of the 

14 good shall be considered to be an originating 

15 good only if such yarns are wholly formed in 

16 the territory of Bahrain or the United States. 

17 (C) YARN, FABRIC, OR GROUP OF FI18 BERS.—For purposes of this paragraph, in the 

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

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

21 of the good that determines the tariff classifica22 tion of the good’’ means all of the fibers in the 

23 yarn, fabric, or group of fibers. 

24 (2) GOODS PUT UP IN SETS FOR RETAIL

25 SALE.—Notwithstanding the rules set forth in Annex 
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1 3–A of the Agreement, textile or apparel goods clas2 sifiable as goods put up in sets for retail sale as pro3 vided for in General Rule of Interpretation 3 of the 

4 HTS shall not be considered to be originating goods 

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

6 good or the total value of the nonoriginating goods 

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

8 of the set determined for purposes of assessing cus9 toms duties. 

10 (i) DEFINITIONS.—In this section: 

11 (1) DIRECT COSTS OF PROCESSING OPER12 ATIONS.— 

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

14 of processing operations’’, with respect to a 

15 good, includes, to the extent they are includable 

16 in the appraised value of the good when im17 ported into Bahrain or the United States, as 

18 the case may be, the following: 

19 (i) All actual labor costs involved in 

20 the growth, production, or manufacture of 

21 the good, including fringe benefits, on-the22 job training, and the cost of engineering, 

23 supervisory, quality control, and similar 

24 personnel. 
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1 (ii) Tools, dies, molds, and other indi2 rect materials, and depreciation on ma3 chinery and equipment that are allocable 

4 to the good. 

5 (iii) Research, development, design, 

6 engineering, and blueprint costs, to the ex7 tent that they are allocable to the good. 

8 (iv) Costs of inspecting and testing 

9 the good. 

10 (v) Costs of packaging the good for 

11 export to the territory of the other country. 

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

13 of processing operations’’ does not include costs 

14 that are not directly attributable to a good or 

15 are not costs of growth, production, or manu16 facture of the good, such as— 

17 (i) profit; and 

18 (ii) general expenses of doing business 

19 that are either not allocable to the good or 

20 are not related to the growth, production, 

21 or manufacture of the good, such as ad22 ministrative salaries, casualty and liability 

23 insurance, advertising, and sales staff sala24 ries, commissions, or expenses. 
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1 (2) GOOD.—The term ‘‘good’’ means any mer2 chandise, product, article, or material. 

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

4 MANUFACTURE OF BAHRAIN OR THE UNITED

5 STATES, OR BOTH.—The term ‘‘good wholly the 

6 growth, product, or manufacture of Bahrain or the 

7 United States, or both’’ means— 

8 (A) a mineral good extracted in the terri9 tory of Bahrain or the United States, or both; 

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

11 provided for in the HTS, harvested in the terri12 tory of Bahrain or the United States, or both; 

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

14 territory of Bahrain or the United States, or 

15 both; 

16 (D) a good obtained from live animals 

17 raised in the territory of Bahrain or the United 

18 States, or both; 

19 (E) a good obtained from hunting, trap20 ping, or fishing in the territory of Bahrain or 

21 the United States, or both; 

22 (F) a good (fish, shellfish, and other ma23 rine life) taken from the sea by vessels reg24 istered or recorded with Bahrain or the United 

25 States and flying the flag of that country; 
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1 (G) a good produced from goods referred 

2 to in subparagraph (F) on board factory ships 

3 registered or recorded with Bahrain or the 

4 United States and flying the flag of that coun5 try; 

6 (H) a good taken by Bahrain or the 

7 United States or a person of Bahrain or the 

8 United States from the seabed or beneath the 

9 seabed outside territorial waters, if Bahrain or 

10 the United States, as the case may be, has 

11 rights to exploit such seabed; 

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

13 good is obtained by Bahrain or the United 

14 States or a person of Bahrain or the United 

15 States and not processed in the territory of a 

16 country other than Bahrain or the United 

17 States; 

18 (J) waste and scrap derived from— 

19 (i) production or manufacture in the 

20 territory of Bahrain or the United States, 

21 or both; or 

22 (ii) used goods collected in the terri23 tory of Bahrain or the United States, or 

24 both, if such goods are fit only for the re25 covery of raw materials; 
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1 (K) a recovered good derived in the terri2 tory of Bahrain or the United States from used 

3 goods and utilized in the territory of that coun4 try in the production of remanufactured goods; 

5 and 

6 (L) a good produced in the territory of 

7 Bahrain or the United States, or both, exclu8 sively— 

9 (i) from goods referred to in subpara10 graphs (A) through (J), or 

11 (ii) from the derivatives of goods re12 ferred to in clause (i), 

13 at any stage of production. 

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

15 material’’ means a good used in the growth, produc16 tion, manufacture, testing, or inspection of a good 

17 but not physically incorporated into the good, or a 

18 good used in the maintenance of buildings or the op19 eration of equipment associated with the growth, 

20 production, or manufacture of a good, including— 

21 (A) fuel and energy; 

22 (B) tools, dies, and molds; 

23 (C) spare parts and materials used in the 

24 maintenance of equipment and buildings; 
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1 (D) lubricants, greases, compounding ma2 terials, and other materials used in the growth, 

3 production, or manufacture of a good or used 

4 to operate equipment and buildings; 

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

6 safety equipment, and supplies; 

7 (F) equipment, devices, and supplies used 

8 for testing or inspecting the good; 

9 (G) catalysts and solvents; and 

10 (H) any other goods that are not incor11 porated into the good but the use of which in 

12 the growth, production, or manufacture of the 

13 good can reasonably be demonstrated to be a 

14 part of that growth, production, or manufac15 ture. 

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

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

18 the growth, production, or manufacture of another 

19 good that is a new or different article of commerce 

20 that has been grown, produced, or manufactured in 

21 Bahrain or the United States, or both. 

22 (6) MATERIAL PRODUCED IN THE TERRITORY

23 OF BAHRAIN OR THE UNITED STATES, OR BOTH.— 

24 The term ‘‘material produced in the territory of 

25 Bahrain or the United States, or both’’ means a 
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1 good that is either wholly the growth, product, or 

2 manufacture of Bahrain or the United States, or 

3 both, or a new or different article of commerce that 

4 has been grown, produced, or manufactured in the 

5 territory of Bahrain or the United States, or both. 

6 (7) NEW OR DIFFERENT ARTICLE OF COM7 MERCE.— 

8 (A) IN GENERAL.—The term ‘‘new or dif9 ferent article of commerce’’ means, except as 

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

11 (i) has been substantially transformed 

12 from a good or material that is not wholly 

13 the growth, product, or manufacture of 

14 Bahrain or the United States, or both; and 

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

16 distinct from the good or material from 

17 which it was transformed. 

18 (B) EXCEPTION.—A good shall not be con19 sidered a new or different article of commerce 

20 by virtue of having undergone simple combining 

21 or packaging operations, or mere dilution with 

22 water or another substance that does not mate23 rially alter the characteristics of the good. 
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1 (8) RECOVERED GOODS.—The term ‘‘recovered 

2 goods’’ means materials in the form of individual 

3 parts that result from— 

4 (A) the complete disassembly of used goods 

5 into individual parts; and 

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

7 other processing of those parts that is necessary 

8 for improvement to sound working condition. 

9 (9) REMANUFACTURED GOOD.—The term ‘‘re10 manufactured good’’ means an industrial good that 

11 is assembled in the territory of Bahrain or the 

12 United States and that— 

13 (A) is entirely or partially comprised of re14 covered goods; 

15 (B) has a similar life expectancy to, and 

16 meets similar performance standards as, a like 

17 good that is new; and 

18 (C) enjoys a factory warranty similar to 

19 that of a like good that is new. 

20 (10) SIMPLE COMBINING OR PACKAGING OPER21 ATIONS.—The term ‘‘simple combining or packaging 

22 operations’’ means operations such as adding bat23 teries to devices, fitting together a small number of 

24 components by bolting, gluing, or soldering, and re25 packing or packaging components together. 
27 

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1 (11) SUBSTANTIALLY TRANSFORMED.—The 

2 term ‘‘substantially transformed’’ means, with re3 spect to a good or material, changed as the result 

4 of a manufacturing or processing operation so 

5 that— 

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

7 from a good that has multiple uses into a good 

8 or material that has limited uses; 

9 (ii) the physical properties of the good or 

10 material are changed to a significant extent; or 

11 (iii) the operation undergone by the good 

12 or material is complex by reason of the number 

13 of different processes and materials involved 

14 and the time and level of skill required to per15 form those processes; and 

16 (B) the good or material loses its separate 

17 identity in the manufacturing or processing op18 eration. 

19 (j) PRESIDENTIAL PROCLAMATION AUTHORITY.— 

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

21 to proclaim, as part of the HTS— 

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

23 and Annex 4–A of the Agreement; and 
28 

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1 (B) any additional subordinate category 

2 that is necessary to carry out this title, con3 sistent with the Agreement. 

4 (2) MODIFICATIONS.— 

5 (A) IN GENERAL.—Subject to the consulta6 tion and layover provisions of section 104, the 

7 President may proclaim modifications to the 

8 provisions proclaimed under the authority of 

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

10 chapters 50 through 63 of the HTS (as in11 cluded in Annex 3–A of the Agreement). 

12 (B) ADDITIONAL PROCLAMATIONS.—Not13 withstanding subparagraph (A), and subject to 

14 the consultation and layover provisions of sec15 tion 104, the President may proclaim— 

16 (i) modifications to the provisions pro17 claimed under the authority of paragraph 

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

19 agreement with Bahrain pursuant to arti20 cle 3.2.5 of the Agreement; and 

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

22 beginning on the date of the enactment of 

23 this Act, modifications to correct any typo24 graphical, clerical, or other nonsubstantive 

25 technical error regarding the provisions of 
29 

•S 2027 IS 

1 chapters 50 through 63 of the HTS (as in2 cluded in Annex 3–A of the Agreement). 

3 SEC. 203. CUSTOMS USER FEES. 

4 Section 13031(b) of the Consolidated Omnibus Budg5 et Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is 

6 amended— 

7 (1) in each of paragraphs (13) and (15), by 

8 moving the text 2 ems to the left; and 

9 (2) by adding after paragraph (15) the fol10 lowing: 

11 ‘‘(16) No fee may be charged under subsection (a) 

12 (9) or (10) with respect to goods that qualify as origi13 nating goods under section 202 of the United States-Bah14 rain Free Trade Agreement Implementation Act. Any 

15 service for which an exemption from such fee is provided 

16 by reason of this paragraph may not be funded with 

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

18 SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE 

19 AND APPAREL GOODS. 

20 (a) ACTION DURING VERIFICATION.— 

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

22 Treasury requests the Government of Bahrain to 

23 conduct a verification pursuant to article 3.3 of the 

24 Agreement for purposes of making a determination 

25 under paragraph (2), the President may direct the 
30 

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1 Secretary to take appropriate action described in 

2 subsection (b) while the verification is being con3 ducted. 

4 (2) DETERMINATION.—A determination under 

5 this paragraph is a determination— 

6 (A) that an exporter or producer in Bah7 rain is complying with applicable customs laws, 

8 regulations, procedures, requirements, or prac9 tices affecting trade in textile or apparel goods; 

10 or 

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

12 good exported or produced by such exporter or 

13 producer— 

14 (i) qualifies as an originating good 

15 under section 202; or 

16 (ii) is a good of Bahrain, is accurate. 

17 (b) APPROPRIATE ACTION DESCRIBED.—Appropriate 

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

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

20 textile or apparel good exported or produced by the 

21 person that is the subject of a verification referred 

22 to in subsection (a)(1) regarding compliance de23 scribed in subsection (a)(2)(A), in a case in which 

24 the request for verification was based on a reason-
31 

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1 able suspicion of unlawful activity related to such 

2 good; and 

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

4 textile or apparel good for which a claim has been 

5 made that is the subject of a verification referred to 

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

7 subsection (a)(2)(B). 

8 (c) ACTION WHEN INFORMATION IS INSUFFI9 CIENT.—If the Secretary of the Treasury determines that 

10 the information obtained within 12 months after making 

11 a request for a verification under subsection (a)(1) is in12 sufficient to make a determination under subsection 

13 (a)(2), the President may direct the Secretary to take ap14 propriate action described in subsection (d) until such 

15 time as the Secretary receives information sufficient to 

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

17 such earlier date as the President may direct. 

18 (d) APPROPRIATE ACTION DESCRIBED.—Appro19 priate action referred to in subsection (c) includes— 

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

21 person that is the subject of the verification; 

22 (2) denial of preferential tariff treatment under 

23 the Agreement to— 

24 (A) any textile or apparel good exported or 

25 produced by the person that is the subject of a 
32 

•S 2027 IS 

1 verification referred to in subsection (a)(1) re2 garding compliance described in subsection 

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

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

5 claim has been made that is the subject of a 

6 verification referred to in subsection (a)(1) re7 garding a claim described in subsection 

8 (a)(2)(B); and 

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

10 (A) any textile or apparel good exported or 

11 produced by the person that is the subject of a 

12 verification referred to in subsection (a)(1) re13 garding compliance described in subsection 

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

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

16 claim has been made that is the subject of a 

17 verification referred to in subsection (a)(1) re18 garding a claim described in subsection 

19 (a)(2)(B). 

20 SEC. 205. REGULATIONS. 

21 The Secretary of the Treasury shall prescribe such 

22 regulations as may be necessary to carry out— 

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

24 (2) the amendment made by section 203(2); 

25 and 
33 

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

2 TITLE III—RELIEF FROM 

3 IMPORTS 

4 SEC. 301. DEFINITIONS. 

5 In this title: 

6 (1) BAHRAINI ARTICLE.—The term ‘‘Bahraini 

7 article’’ means an article that— 

8 (A) qualifies as an originating good under 

9 section 202(b); or 

10 (B) receives preferential tariff treatment 

11 under paragraphs 8 through 11 of article 3.2 of 

12 the Agreement. 

13 (2) BAHRAINI TEXTILE OR APPAREL ARTI14 CLE.—The term ‘‘Bahraini textile or apparel article’’ 

15 means an article that— 

16 (A) is listed in the Annex to the Agree17 ment on Textiles and Clothing referred to in 

18 section 101(d)(4) of the Uruguay Round Agree19 ments Act (19 U.S.C. 3511(d)(4)); and 

20 (B) is a Bahraini article. 

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

22 means the United States International Trade Com23 mission. 
34 

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1 Subtitle A—Relief From Imports 

2 Benefiting From the Agreement 

3 SEC. 311. COMMENCING OF ACTION FOR RELIEF. 

4 (a) FILING OF PETITION.—A petition requesting ac5 tion under this subtitle for the purpose of adjusting to 

6 the obligations of the United States under the Agreement 

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

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

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

10 The Commission shall transmit a copy of any petition filed 

11 under this subsection to the United States Trade Rep12 resentative. 

13 (b) INVESTIGATION AND DETERMINATION.—Upon 

14 the filing of a petition under subsection (a), the Commis15 sion, unless subsection (d) applies, shall promptly initiate 

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

17 reduction or elimination of a duty provided for under the 

18 Agreement, a Bahraini article is being imported into the 

19 United States in such increased quantities, in absolute 

20 terms or relative to domestic production, and under such 

21 conditions that imports of the Bahraini article constitute 

22 a substantial cause of serious injury or threat thereof to 

23 the domestic industry producing an article that is like, or 

24 directly competitive with, the imported article. 
35 

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1 (c) APPLICABLE PROVISIONS.—The following provi2 sions of section 202 of the Trade Act of 1974 (19 U.S.C. 

3 2252) apply with respect to any investigation initiated 

4 under subsection (b): 

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

6 (b). 

7 (2) Subsection (c). 

8 (3) Subsection (i). 

9 (d) ARTICLES EXEMPT FROM INVESTIGATION.—No 

10 investigation may be initiated under this section with re11 spect to any Bahraini article if, after the date on which 

12 the Agreement enters into force with respect to the United 

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

14 Bahraini article under this subtitle. 

15 SEC. 312. COMMISSION ACTION ON PETITION. 

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

17 the date on which an investigation is initiated under sec18 tion 311(b) with respect to a petition, the Commission 

19 shall make the determination required under that section. 

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

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

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

23 1330(d) (1), (2), and (3)) shall be applied with respect 

24 to determinations and findings made under this section 
36 

•S 2027 IS 

1 as if such determinations and findings were made under 

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

3 (c) ADDITIONAL FINDING AND RECOMMENDATION IF

4 DETERMINATION AFFIRMATIVE.— 

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

6 by the Commission under subsection (a) with respect 

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

8 President may consider a determination of the Com9 mission to be an affirmative determination as pro10 vided for under paragraph (1) of section 330(d) of 

11 the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the 

12 Commission shall find, and recommend to the Presi13 dent in the report required under subsection (d), the 

14 amount of import relief that is necessary to remedy 

15 or prevent the injury found by the Commission in 

16 the determination and to facilitate the efforts of the 

17 domestic industry to make a positive adjustment to 

18 import competition. 

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

20 recommended by the Commission under this sub21 section shall be limited to that described in section 

22 313(c). 

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

24 members of the Commission who voted in the af25 firmative under subsection (a) are eligible to vote on 
37 

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1 the proposed action to remedy or prevent the injury 

2 found by the Commission. Members of the Commis3 sion who did not vote in the affirmative may submit, 

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

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

6 to remedy or prevent the injury. 

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

8 date that is 30 days after the date on which a determina9 tion is made under subsection (a) with respect to an inves10 tigation, the Commission shall submit to the President a 

11 report that includes— 

12 (1) the determination made under subsection 

13 (a) and an explanation of the basis for the deter14 mination; 

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

16 affirmative, any findings and recommendations for 

17 import relief made under subsection (c) and an ex18 planation of the basis for each recommendation; and 

19 (3) any dissenting or separate views by mem20 bers of the Commission regarding the determination 

21 and recommendation referred to in paragraphs (1) 

22 and (2). 

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

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

25 promptly make public such report (with the exception of 
38 

•S 2027 IS 

1 information which the Commission determines to be con2 fidential) and shall cause a summary thereof to be pub3 lished in the Federal Register. 

4 SEC. 313. PROVISION OF RELIEF. 

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

6 30 days after the date on which the President receives the 

7 report of the Commission in which the Commission’s de8 termination under section 312(a) is affirmative, or which 

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

10 President considers to be affirmative under paragraph (1) 

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

12 1330(d)(1)), the President, subject to subsection (b), shall 

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

14 of such determination to the extent that the President de15 termines necessary to remedy or prevent the injury found 

16 by the Commission and to facilitate the efforts of the do17 mestic industry to make a positive adjustment to import 

18 competition. 

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

20 provide import relief under this section if the President 

21 determines that the provision of the import relief will not 

22 provide greater economic and social benefits than costs. 

23 (c) NATURE OF RELIEF.— 
39 

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

2 President is authorized to provide under this section 

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

4 (A) The suspension of any further reduc5 tion provided for under Annex 2–B of the 

6 Agreement in the duty imposed on such article. 

7 (B) An increase in the rate of duty im8 posed on such article to a level that does not 

9 exceed the lesser of— 

10 (i) the column 1 general rate of duty 

11 imposed under the HTS on like articles at 

12 the time the import relief is provided; or 

13 (ii) the column 1 general rate of duty 

14 imposed under the HTS on like articles on 

15 the day before the date on which the 

16 Agreement enters into force. 

17 (2) PROGRESSIVE LIBERALIZATION.—If the pe18 riod for which import relief is provided under this 

19 section is greater than 1 year, the President shall 

20 provide for the progressive liberalization of such re21 lief at regular intervals during the period in which 

22 the relief is in effect. 

23 (d) PERIOD OF RELIEF.— 

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

25 any import relief that the President provides under 
40 

•S 2027 IS 

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

2 for more than 3 years. 

3 (2) EXTENSION.— 

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

5 any import relief provided under this section is 

6 less than 3 years, the President, after receiving 

7 a determination from the Commission under 

8 subparagraph (B) that is affirmative, or which 

9 the President considers to be affirmative under 

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

11 Act of 1930 (19 U.S.C. 1330(d)(1)), may ex12 tend the effective period of any import relief 

13 provided under this section, subject to the limi14 tation under paragraph (1), if the President de15 termines that— 

16 (i) the import relief continues to be 

17 necessary to remedy or prevent serious in18 jury and to facilitate adjustment by the do19 mestic industry to import competition; and 

20 (ii) there is evidence that the industry 

21 is making a positive adjustment to import 

22 competition. 

23 (B) ACTION BY COMMISSION.— 

24 (i) INVESTIGATION.—Upon a petition 

25 on behalf of the industry concerned that is 
41 

•S 2027 IS 

1 filed with the Commission not earlier than 

2 the date which is 9 months, and not later 

3 than the date which is 6 months, before 

4 the date any action taken under subsection 

5 (a) is to terminate, the Commission shall 

6 conduct an investigation to determine 

7 whether action under this section continues 

8 to be necessary to remedy or prevent seri9 ous injury and to facilitate adjustment by 

10 the domestic industry to import competi11 tion and whether there is evidence that the 

12 industry is making a positive adjustment 

13 to import competition. 

14 (ii) NOTICE AND HEARING.—The 

15 Commission shall publish notice of the 

16 commencement of any proceeding under 

17 this subparagraph in the Federal Register 

18 and shall, within a reasonable time there19 after, hold a public hearing at which the 

20 Commission shall afford interested parties 

21 and consumers an opportunity to be 

22 present, to present evidence, and to re23 spond to the presentations of other parties 

24 and consumers, and otherwise to be heard. 
42 

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1 (iii) REPORT.—The Commission shall 

2 transmit to the President a report on its 

3 investigation and determination under this 

4 subparagraph not later than 60 days be5 fore the action under subsection (a) is to 

6 terminate, unless the President specifies a 

7 different date. 

8 (e) RATE AFTER TERMINATION OF IMPORT RE9 LIEF.—When import relief under this section is termi10 nated with respect to an article, the rate of duty on that 

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

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

13 the relief terminates. 

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

15 relief may be provided under this section on any article 

16 that has been subject to import relief under this subtitle 

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

18 SEC. 314. TERMINATION OF RELIEF AUTHORITY. 

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

20 import relief may be provided under this subtitle after the 

21 date that is 10 years after the date on which the Agree22 ment enters into force. 

23 (b) PRESIDENTIAL DETERMINATION.—Import relief 

24 may be provided under this subtitle in the case of a Bah25 raini article after the date on which such relief would, but 
43 

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1 for this subsection, terminate under subsection (a), if the 

2 President determines that Bahrain has consented to such 

3 relief. 

4 SEC. 315. COMPENSATION AUTHORITY. 

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

6 (19 U.S.C. 2133), any import relief provided by the Presi7 dent under section 313 shall be treated as action taken 

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

9 et seq.). 

10 SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 

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

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

13 (1) by striking ‘‘and’’; and 

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

15 and title III of the United States-Bahrain Free 

16 Trade Agreement Implementation Act’’. 

17 Subtitle B—Textile and Apparel 

18 Safeguard Measures 

19 SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 

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

21 the purpose of adjusting to the obligations of the United 

22 States under the Agreement may be filed with the Presi23 dent by an interested party. Upon the filing of a request, 

24 the President shall review the request to determine, from 
44 

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1 information presented in the request, whether to com2 mence consideration of the request. 

3 (b) PUBLICATION OF REQUEST.—If the President de4 termines that the request under subsection (a) provides 

5 the information necessary for the request to be considered, 

6 the President shall cause to be published in the Federal 

7 Register a notice of commencement of consideration of the 

8 request, and notice seeking public comments regarding the 

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

10 and the dates by which comments and rebuttals must be 

11 received. 

12 SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 

13 (a) DETERMINATION.— 

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

15 made under section 321(b), the President shall de16 termine whether, as a result of the reduction or 

17 elimination of a duty under the Agreement, a Bah18 raini textile or apparel article is being imported into 

19 the United States in such increased quantities, in 

20 absolute terms or relative to the domestic market for 

21 that article, and under such conditions as to cause 

22 serious damage, or actual threat thereof, to a domes23 tic industry producing an article that is like, or di24 rectly competitive with, the imported article. 
45 

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1 (2) SERIOUS DAMAGE.—In making a deter2 mination under paragraph (1), the President— 

3 (A) shall examine the effect of increased 

4 imports on the domestic industry, as reflected 

5 in changes in such relevant economic factors as 

6 output, productivity, utilization of capacity, in7 ventories, market share, exports, wages, em8 ployment, domestic prices, profits, and invest9 ment, none of which is necessarily decisive; and 

10 (B) shall not consider changes in tech11 nology or consumer preference as factors sup12 porting a determination of serious damage or 

13 actual threat thereof. 

14 (b) PROVISION OF RELIEF.— 

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

16 subsection (a) is affirmative, the President may pro17 vide relief from imports of the article that is the 

18 subject of such determination, as described in para19 graph (2), to the extent that the President deter20 mines necessary to remedy or prevent the serious 

21 damage and to facilitate adjustment by the domestic 

22 industry to import competition. 

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

24 President is authorized to provide under this sub25 section with respect to imports of an article is an in-
46 

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1 crease in the rate of duty imposed on the article to 

2 a level that does not exceed the lesser of— 

3 (A) the column 1 general rate of duty im4 posed under the HTS on like articles at the 

5 time the import relief is provided; or 

6 (B) the column 1 general rate of duty im7 posed under the HTS on like articles on the 

8 day before the date on which the Agreement en9 ters into force. 

10 SEC. 323. PERIOD OF RELIEF. 

11 (a) IN GENERAL.—Subject to subsection (b), any im12 port relief that the President provides under subsection 

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

14 for more than 3 years. 

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

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

17 President may extend the effective period of any import 

18 relief provided under that section, subject to the limitation 

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

20 that— 

21 (1) the import relief continues to be necessary 

22 to remedy or prevent serious damage and to facili23 tate adjustment by the domestic industry to import 

24 competition; and 
47 

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1 (2) there is evidence that the industry is mak2 ing a positive adjustment to import competition. 

3 SEC. 324. ARTICLES EXEMPT FROM RELIEF. 

4 The President may not provide import relief under 

5 this subtitle with respect to any article if— 

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

7 under this subtitle after the date on which the 

8 Agreement enters into force; or 

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

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

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

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

13 When import relief under this subtitle is terminated 

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

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

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

17 terminates. 

18 SEC. 326. TERMINATION OF RELIEF AUTHORITY. 

19 No import relief may be provided under this subtitle 

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

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

22 pursuant to the Agreement. 

23 SEC. 327. COMPENSATION AUTHORITY. 

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

25 (19 U.S.C. 2133), any import relief provided by the Presi-
48 

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1 dent under this subtitle shall be treated as action taken 

2 under chapter 1 of title II of such Act. 

3 SEC. 328. CONFIDENTIAL BUSINESS INFORMATION. 

4 The President may not release information that is 

5 submitted in a proceeding under this subtitle and that the 

6 President considers to be confidential business informa7 tion unless the party submitting the confidential business 

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

9 such information would be released, or such party subse10 quently consents to the release of the information. To the 

11 extent a party submits confidential business information 

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

13 party shall also submit a nonconfidential version of the 

14 information, in which the confidential business informa15 tion is summarized or, if necessary, deleted. 

16 TITLE IV—PROCUREMENT 

17 SEC. 401. ELIGIBLE PRODUCTS. 

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

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

20 (1) by striking ‘‘or’’ at the end of clause (iii); 

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

22 (iv) and inserting ‘‘; or’’; and 

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

24 clause: 
49 

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1 ‘‘(v) a party to a free trade agreement 

2 that entered into force with respect to the 

3 United States after December 31, 2005, 

4 and before July 2, 2006, a product or serv5 ice of that country or instrumentality 

6 which is covered under the free trade 

7 agreement for procurement by the United 

8 States.’’. 

Æ