H. R. 4340
One Hundred Ninth Congress
of the
United States of America 
AT THE FIRST SESSION 
Begun and held at the City of Washington on Tuesday, 
the fourth day of January, two thousand and five 
An Act 
To implement the United States-Bahrain Free Trade Agreement.
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘United States-
Bahrain Free Trade Agreement Implementation Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE 
AGREEMENT 
Sec. 101. Approval and entry into force of the Agreement. 
Sec. 102. Relationship of the agreement to United States and State law. 
Sec. 103. Implementing actions in anticipation of entry into force and initial regula-
tions. 
Sec. 104. Consultation and layover provisions for, and effective date of, proclaimed 
actions. 
Sec. 105. Administration of dispute settlement proceedings. 
Sec. 106. Effective dates; effect of termination. 
TITLE II—CUSTOMS PROVISIONS 
Sec. 201. Tariff modifications. 
Sec. 202. Rules of origin. 
Sec. 203. Customs user fees. 
Sec. 204. Enforcement relating to trade in textile and apparel goods. 
Sec. 205. Regulations. 
TITLE III—RELIEF FROM IMPORTS 
Sec. 301. Definitions. 
Subtitle A—Relief From Imports Benefiting From the Agreement 
Sec. 311. Commencing of action for relief. 
Sec. 312. Commission action on petition. 
Sec. 313. Provision of relief. 
Sec. 314. Termination of relief authority. 
Sec. 315. Compensation authority. 
Sec. 316. Confidential business information. 
Subtitle B—Textile and Apparel Safeguard Measures 
Sec. 321. Commencement of action for relief. 
Sec. 322. Determination and provision of relief. 
Sec. 323. Period of relief. 
Sec. 324. Articles exempt from relief. 
Sec. 325. Rate after termination of import relief. 
Sec. 326. Termination of relief authority. 
Sec. 327. Compensation authority. 
Sec. 328. Confidential business information.
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TITLE IV—PROCUREMENT 
Sec. 401. Eligible products.
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to approve and implement the Free Trade Agreement 
between the United States and Bahrain entered into under 
the authority of section 2103(b) of the Bipartisan Trade Pro-
motion Authority Act of 2002 (19 U.S.C. 3803(b)); 
(2) to strengthen and develop economic relations between 
the United States and Bahrain for their mutual benefit; 
(3) to establish free trade between the 2 nations through 
the reduction and elimination of barriers to trade in goods 
and services; and 
(4) to lay the foundation for further cooperation to expand 
and enhance the benefits of such Agreement. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) AGREEMENT.—The term ‘‘Agreement’’ means the United 
States-Bahrain Free Trade Agreement approved by Congress 
under section 101(a)(1). 
(2) HTS.—The term ‘‘HTS’’ means the Harmonized Tariff 
Schedule of the United States. 
(3) TEXTILE
OR
APPAREL
GOOD.—The term ‘‘textile or 
apparel good’’ means a good listed in the Annex to the Agree-
ment on Textiles and Clothing referred to in section 101(d)(4) 
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)). 
TITLE I—APPROVAL OF, AND GENERAL 
PROVISIONS 
RELATING 
TO, 
THE 
AGREEMENT 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT. 
(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRA-
TIVE ACTION.—Pursuant to section 2105 of the Bipartisan Trade 
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section 
151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves— 
(1) the United States-Bahrain Free Trade Agreement 
entered into on September 14, 2004, with Bahrain and sub-
mitted to Congress on November 16, 2005; and 
(2) the statement of administrative action proposed to 
implement the Agreement that was submitted to Congress on 
November 16, 2005. 
(b) CONDITIONS FOR ENTRY INTO FORCE OF THE AGREEMENT.—
At such time as the President determines that Bahrain has taken 
measures necessary to bring it into compliance with those provisions 
of the Agreement that are to take effect on the date on which 
the Agreement enters into force, the President is authorized to 
exchange notes with the Government of Bahrain providing for the 
entry into force, on or after January 1, 2006, of the Agreement 
with respect to the United States. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES 
AND STATE LAW. 
(a) RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW.—
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(1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provi-
sion of the Agreement, nor the application of any such provision 
to any person or circumstance, which is inconsistent with any 
law of the United States shall have effect. 
(2) CONSTRUCTION.—Nothing in this Act shall be con-
strued— 
(A) to amend or modify any law of the United States; 
or 
(B) to limit any authority conferred under any law 
of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP OF AGREEMENT TO STATE LAW.— 
(1) LEGAL CHALLENGE.—No State law, or the application 
thereof, may be declared invalid as to any person or cir-
cumstance on the ground that the provision or application 
is inconsistent with the Agreement, except in an action brought 
by the United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes of this sub-
section, the term ‘‘State law’’ includes— 
(A) any law of a political subdivision of a State; and 
(B) any State law regulating or taxing the business 
of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-
EDIES.—No person other than the United States— 
(1) shall have any cause of action or defense under the 
Agreement or by virtue of congressional approval thereof; or 
(2) may challenge, in any action brought under any provi-
sion of law, any action or inaction by any department, agency, 
or other instrumentality of the United States, any State, or 
any political subdivision of a State, on the ground that such 
action or inaction is inconsistent with the Agreement. 
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
FORCE AND INITIAL REGULATIONS. 
(a) IMPLEMENTING ACTIONS.— 
(1) PROCLAMATION AUTHORITY.—After the date of the enact-
ment of this Act— 
(A) the President may proclaim such actions, and 
(B) other appropriate officers of the United States 
Government may issue such regulations, 
as may be necessary to ensure that any provision of this Act, 
or amendment made by this Act, that takes effect on the 
date on which the Agreement enters into force is appropriately 
implemented on such date, but no such proclamation or regula-
tion may have an effective date earlier than the date on which 
the Agreement enters into force. 
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—
Any action proclaimed by the President under the authority 
of this Act that is not subject to the consultation and layover 
provisions under section 104 may not take effect before the 
15th day after the date on which the text of the proclamation 
is published in the Federal Register. 
(3) WAIVER OF 15-DAY RESTRICTION.—The 15-day restriction 
in paragraph (2) on the taking effect of proclaimed actions 
is waived to the extent that the application of such restriction 
would prevent the taking effect on the date on which the
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Agreement enters into force of any action proclaimed under 
this section. 
(b) INITIAL
REGULATIONS.—Initial regulations necessary or 
appropriate to carry out the actions required by or authorized 
under this Act or proposed in the statement of administrative 
action submitted under section 101(a)(2) to implement the Agree-
ment shall, to the maximum extent feasible, be issued within 1 
year after the date on which the Agreement enters into force. 
In the case of any implementing action that takes effect on a 
date after the date on which the Agreement enters into force, 
initial regulations to carry out that action shall, to the maximum 
extent feasible, be issued within 1 year after such effective date. 
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFEC-
TIVE DATE OF, PROCLAIMED ACTIONS. 
If a provision of this Act provides that the implementation 
of an action by the President by proclamation is subject to the 
consultation and layover requirements of this section, such action 
may be proclaimed only if— 
(1) the President has obtained advice regarding the pro-
posed action from— 
(A) the appropriate advisory committees established 
under section 135 of the Trade Act of 1974 (19 U.S.C. 
2155); and 
(B) the United States International Trade Commission; 
(2) the President has submitted to the Committee on 
Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report that sets forth— 
(A) the action proposed to be proclaimed and the rea-
sons therefor; and 
(B) the advice obtained under paragraph (1); 
(3) a period of 60 calendar days, beginning on the first 
day on which the requirements set forth in paragraphs (1) 
and (2) have been met has expired; and 
(4) the President has consulted with the Committees 
referred to in paragraph (2) regarding the proposed action 
during the period referred to in paragraph (3). 
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS. 
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—The President 
is authorized to establish or designate within the Department of 
Commerce an office that shall be responsible for providing adminis-
trative assistance to panels established under chapter 19 of the 
Agreement. The office may not be considered to be an agency 
for purposes of section 552 of title 5, United States Code. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for each fiscal year after fiscal year 2005 to 
the Department of Commerce such sums as may be necessary 
for the establishment and operations of the office established or 
designated under subsection (a) and for the payment of the United 
States share of the expenses of panels established under chapter 
19 of the Agreement. 
SEC. 106. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in subsection (b), 
the provisions of this Act and the amendments made by this Act 
take effect on the date on which the Agreement enters into force.
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(b) EXCEPTIONS.—Sections 1 through 3 and this title take effect 
on the date of the enactment of this Act. 
(c) TERMINATION OF THE AGREEMENT.—On the date on which 
the Agreement terminates, the provisions of this Act (other than 
this subsection) and the amendments made by this Act shall cease 
to be effective. 
TITLE II—CUSTOMS PROVISIONS 
SEC. 201. TARIFF MODIFICATIONS. 
(a) TARIFF MODIFICATIONS PROVIDED FOR IN THE AGREEMENT.— 
(1) PROCLAMATION
AUTHORITY.—The President may pro-
claim— 
(A) such modifications or continuation of any duty, 
(B) such continuation of duty-free or excise treatment, 
or 
(C) such additional duties, 
as the President determines to be necessary or appropriate 
to carry out or apply articles 2.3, 2.5, 2.6, 3.2.8, and 3.2.9, 
and Annex 2–B of the Agreement. 
(2) EFFECT ON BAHRAINI GSP STATUS.—Notwithstanding sec-
tion 502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), 
the President shall, on the date on which the Agreement enters 
into force, terminate the designation of Bahrain as a beneficiary 
developing country for purposes of title V of the Trade Act 
of 1974 (19 U.S.C. 2461 et seq.). 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation 
and layover provisions of section 104, the President may proclaim— 
(1) such modifications or continuation of any duty, 
(2) such modifications as the United States may agree 
to with Bahrain regarding the staging of any duty treatment 
set forth in Annex 2–B of the Agreement, 
(3) such continuation of duty-free or excise treatment, or 
(4) such additional duties, 
as the President determines to be necessary or appropriate to 
maintain the general level of reciprocal and mutually advantageous 
concessions with respect to Bahrain provided for by the Agreement. 
(c) CONVERSION TO AD VALOREM RATES.—For purposes of sub-
sections (a) and (b), with respect to any good for which the base 
rate in the Tariff Schedule of the United States to Annex 2–
B of the Agreement is a specific or compound rate of duty, the 
President may substitute for the base rate an ad valorem rate 
that the President determines to be equivalent to the base rate. 
SEC. 202. RULES OF ORIGIN. 
(a) APPLICATION AND INTERPRETATION.—In this section: 
(1) TARIFF CLASSIFICATION.—The basis for any tariff classi-
fication is the HTS. 
(2) REFERENCE TO HTS.—Whenever in this section there 
is a reference to a heading or subheading, such reference shall 
be a reference to a heading or subheading of the HTS. 
(b) ORIGINATING GOODS.— 
(1) IN GENERAL.—For purposes of this Act and for purposes 
of implementing the preferential tariff treatment provided for 
under the Agreement, a good is an originating good if— 
(A) the good is imported directly—
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(i) from the territory of Bahrain into the territory 
of the United States; or 
(ii) from the territory of the United States into 
the territory of Bahrain; and 
(B)(i) the good is a good wholly the growth, product, 
or manufacture of Bahrain or the United States, or both; 
(ii) the good (other than a good to which clause (iii) 
applies) is a new or different article of commerce that 
has been grown, produced, or manufactured in Bahrain 
or the United States, or both, and meets the requirements 
of paragraph (2); or 
(iii)(I) the good is a good covered by Annex 3–A or 
4–A of the Agreement; 
(II)(aa) each of the nonoriginating materials used in 
the production of the good undergoes an applicable change 
in tariff classification specified in such Annex as a result 
of production occurring entirely in the territory of Bahrain 
or the United States, or both; or 
(bb) the good otherwise satisfies the requirements 
specified in such Annex; and 
(III) the good satisfies all other applicable requirements 
of this section. 
(2) REQUIREMENTS.—A good described in paragraph 
(1)(B)(ii) is an originating good only if the sum of— 
(A) the value of each material produced in the territory 
of Bahrain or the United States, or both, and 
(B) the direct costs of processing operations performed 
in the territory of Bahrain or the United States, or both, 
is not less than 35 percent of the appraised value of the good 
at the time the good is entered into the territory of the United 
States. 
(c) CUMULATION.— 
(1) ORIGINATING GOOD OR MATERIAL INCORPORATED INTO 
GOODS OF OTHER COUNTRY.—An originating good, or a material 
produced in the territory of Bahrain or the United States, 
or both, that is incorporated into a good in the territory of 
the other country shall be considered to originate in the terri-
tory of the other country. 
(2) MULTIPLE PRODUCERS.—A good that is grown, produced, 
or manufactured in the territory of Bahrain or the United 
States, or both, by 1 or more producers, is an originating 
good if the good satisfies the requirements of subsection (b) 
and all other applicable requirements of this section. 
(d) VALUE OF MATERIALS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
value of a material produced in the territory of Bahrain or 
the United States, or both, includes the following: 
(A) The price actually paid or payable for the material 
by the producer of the good. 
(B) The freight, insurance, packing, and all other costs 
incurred in transporting the material to the producer’s 
plant, if such costs are not included in the price referred 
to in subparagraph (A). 
(C) The cost of waste or spoilage resulting from the 
use of the material in the growth, production, or manufac-
ture of the good, less the value of recoverable scrap.
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(D) Taxes or customs duties imposed on the material 
by Bahrain or the United States, or both, if the taxes 
or customs duties are not remitted upon exportation from 
the territory of Bahrain or the United States, as the case 
may be. 
(2) EXCEPTION.—If the relationship between the producer 
of a good and the seller of a material influenced the price 
actually paid or payable for the material, or if there is no 
price actually paid or payable by the producer for the material, 
the value of the material produced in the territory of Bahrain 
or the United States, or both, includes the following: 
(A) All expenses incurred in the growth, production, 
or manufacture of the material, including general expenses. 
(B) A reasonable amount for profit. 
(C) Freight, insurance, packing, and all other costs 
incurred in transporting the material to the producer’s 
plant. 
(e) PACKAGING AND PACKING MATERIALS AND CONTAINERS FOR 
RETAIL SALE AND FOR SHIPMENT.—Packaging and packing materials 
and containers for retail sale and shipment shall be disregarded 
in determining whether a good qualifies as an originating good, 
except to the extent that the value of such packaging and packing 
materials and containers has been included in meeting the require-
ments set forth in subsection (b)(2). 
(f) INDIRECT
MATERIALS.—Indirect materials shall be dis-
regarded in determining whether a good qualifies as an originating 
good, except that the cost of such indirect materials may be included 
in meeting the requirements set forth in subsection (b)(2). 
(g) TRANSIT AND TRANSSHIPMENT.—A good shall not be consid-
ered to meet the requirement of subsection (b)(1)(A) if, after expor-
tation from the territory of Bahrain or the United States, the 
good undergoes production, manufacturing, or any other operation 
outside the territory of Bahrain or the United States, other than 
unloading, reloading, or any other operation necessary to preserve 
the good in good condition or to transport the good to the territory 
of Bahrain or the United States. 
(h) TEXTILE AND APPAREL GOODS.— 
(1) DE MINIMIS AMOUNTS OF NONORIGINATING MATERIALS.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), a textile or apparel good that is not an originating 
good because certain fibers or yarns used in the production 
of the component of the good that determines the tariff 
classification of the good do not undergo an applicable 
change in tariff classification set out in Annex 3–A of 
the Agreement shall be considered to be an originating 
good if the total weight of all such fibers or yarns in 
that component is not more than 7 percent of the total 
weight of that component. 
(B) CERTAIN TEXTILE OR APPAREL GOODS.—A textile 
or apparel good containing elastomeric yarns in the compo-
nent of the good that determines the tariff classification 
of the good shall be considered to be an originating good 
only if such yarns are wholly formed in the territory of 
Bahrain or the United States. 
(C) YARN, FABRIC, OR GROUP OF FIBERS.—For purposes 
of this paragraph, in the case of a textile or apparel good
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that is a yarn, fabric, or group of fibers, the term ‘‘compo-
nent of the good that determines the tariff classification 
of the good’’ means all of the fibers in the yarn, fabric, 
or group of fibers. 
(2) GOODS PUT UP IN SETS FOR RETAIL SALE.—Notwith-
standing the rules set forth in Annex 3–A of the Agreement, 
textile or apparel goods classifiable as goods put up in sets 
for retail sale as provided for in General Rule of Interpretation 
3 of the HTS shall not be considered to be originating goods 
unless each of the goods in the set is an originating good 
or the total value of the nonoriginating goods in the set does 
not exceed 10 percent of the value of the set determined for 
purposes of assessing customs duties. 
(i) DEFINITIONS.—In this section: 
(1) DIRECT COSTS OF PROCESSING OPERATIONS.— 
(A) IN GENERAL.—The term ‘‘direct costs of processing 
operations’’, with respect to a good, includes, to the extent 
they are includable in the appraised value of the good 
when imported into Bahrain or the United States, as the 
case may be, the following: 
(i) All actual labor costs involved in the growth, 
production, or manufacture of the good, including 
fringe benefits, on-the-job training, and the cost of 
engineering, supervisory, quality control, and similar 
personnel. 
(ii) Tools, dies, molds, and other indirect materials, 
and depreciation on machinery and equipment that 
are allocable to the good. 
(iii) Research, development, design, engineering, 
and blueprint costs, to the extent that they are allo-
cable to the good. 
(iv) Costs of inspecting and testing the good. 
(v) Costs of packaging the good for export to the 
territory of the other country. 
(B) EXCEPTIONS.—The term ‘‘direct costs of processing 
operations’’ does not include costs that are not directly 
attributable to a good or are not costs of growth, production, 
or manufacture of the good, such as— 
(i) profit; and 
(ii) general expenses of doing business that are 
either not allocable to the good or are not related 
to the growth, production, or manufacture of the good, 
such as administrative salaries, casualty and liability 
insurance, 
advertising, 
and 
sales 
staff 
salaries, 
commissions, or expenses. 
(2) GOOD.—The term ‘‘good’’ means any merchandise, 
product, article, or material. 
(3) GOOD WHOLLY THE GROWTH, PRODUCT, OR MANUFACTURE 
OF BAHRAIN OR THE UNITED STATES, OR BOTH.—The term ‘‘good 
wholly the growth, product, or manufacture of Bahrain or the 
United States, or both’’ means— 
(A) a mineral good extracted in the territory of Bahrain 
or the United States, or both; 
(B) a vegetable good, as such a good is provided for 
in the HTS, harvested in the territory of Bahrain or the 
United States, or both;
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(C) a live animal born and raised in the territory 
of Bahrain or the United States, or both; 
(D) a good obtained from live animals raised in the 
territory of Bahrain or the United States, or both; 
(E) a good obtained from hunting, trapping, or fishing 
in the territory of Bahrain or the United States, or both; 
(F) a good (fish, shellfish, and other marine life) taken 
from the sea by vessels registered or recorded with Bahrain 
or the United States and flying the flag of that country; 
(G) a good produced from goods referred to in subpara-
graph (F) on board factory ships registered or recorded 
with Bahrain or the United States and flying the flag 
of that country; 
(H) a good taken by Bahrain or the United States 
or a person of Bahrain or the United States from the 
seabed or beneath the seabed outside territorial waters, 
if Bahrain or the United States, as the case may be, has 
rights to exploit such seabed; 
(I) a good taken from outer space, if such good is 
obtained by Bahrain or the United States or a person 
of Bahrain or the United States and not processed in the 
territory of a country other than Bahrain or the United 
States; 
(J) waste and scrap derived from— 
(i) production or manufacture in the territory of 
Bahrain or the United States, or both; or 
(ii) used goods collected in the territory of Bahrain 
or the United States, or both, if such goods are fit 
only for the recovery of raw materials; 
(K) a recovered good derived in the territory of Bahrain 
or the United States from used goods and utilized in the 
territory of that country in the production of remanufac-
tured goods; and 
(L) a good produced in the territory of Bahrain or 
the United States, or both, exclusively— 
(i) from goods referred to in subparagraphs (A) 
through (J), or 
(ii) from the derivatives of goods referred to in 
clause (i), 
at any stage of production. 
(4) INDIRECT
MATERIAL.—The term ‘‘indirect material’’ 
means a good used in the growth, production, manufacture, 
testing, or inspection of a good but not physically incorporated 
into the good, or a good used in the maintenance of buildings 
or the operation of equipment associated with the growth, 
production, or manufacture of a good, including— 
(A) fuel and energy; 
(B) tools, dies, and molds; 
(C) spare parts and materials used in the maintenance 
of equipment and buildings; 
(D) lubricants, greases, compounding materials, and 
other materials used in the growth, production, or manufac-
ture of a good or used to operate equipment and buildings; 
(E) gloves, glasses, footwear, clothing, safety equip-
ment, and supplies; 
(F) equipment, devices, and supplies used for testing 
or inspecting the good;
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(G) catalysts and solvents; and 
(H) any other goods that are not incorporated into 
the good but the use of which in the growth, production, 
or manufacture of the good can reasonably be demonstrated 
to be a part of that growth, production, or manufacture. 
(5) MATERIAL.—The term ‘‘material’’ means a good, 
including a part or ingredient, that is used in the growth, 
production, or manufacture of another good that is a new or 
different article of commerce that has been grown, produced, 
or manufactured in Bahrain or the United States, or both. 
(6) MATERIAL
PRODUCED
IN
THE
TERRITORY
OF
BAHRAIN 
OR THE UNITED STATES, OR BOTH.—The term ‘‘material produced 
in the territory of Bahrain or the United States, or both’’ 
means a good that is either wholly the growth, product, or 
manufacture of Bahrain or the United States, or both, or a 
new or different article of commerce that has been grown, 
produced, or manufactured in the territory of Bahrain or the 
United States, or both. 
(7) NEW OR DIFFERENT ARTICLE OF COMMERCE.— 
(A) IN GENERAL.—The term ‘‘new or different article 
of commerce’’ means, except as provided in subparagraph 
(B), a good that— 
(i) has been substantially transformed from a good 
or material that is not wholly the growth, product, 
or manufacture of Bahrain or the United States, or 
both; and 
(ii) has a new name, character, or use distinct 
from the good or material from which it was trans-
formed. 
(B) EXCEPTION.—A good shall not be considered a new 
or different article of commerce by virtue of having under-
gone simple combining or packaging operations, or mere 
dilution with water or another substance that does not 
materially alter the characteristics of the good. 
(8) RECOVERED GOODS.—The term ‘‘recovered goods’’ means 
materials in the form of individual parts that result from— 
(A) the complete disassembly of used goods into indi-
vidual parts; and 
(B) the cleaning, inspecting, testing, or other processing 
of those parts that is necessary for improvement to sound 
working condition. 
(9) REMANUFACTURED GOOD.—The term ‘‘remanufactured 
good’’ means an industrial good that is assembled in the terri-
tory of Bahrain or the United States and that— 
(A) is entirely or partially comprised of recovered goods; 
(B) has a similar life expectancy to, and meets similar 
performance standards as, a like good that is new; and 
(C) enjoys a factory warranty similar to that of a 
like good that is new. 
(10) SIMPLE COMBINING OR PACKAGING OPERATIONS.—The 
term ‘‘simple combining or packaging operations’’ means oper-
ations such as adding batteries to devices, fitting together a 
small number of components by bolting, gluing, or soldering, 
and repacking or packaging components together. 
(11) SUBSTANTIALLY
TRANSFORMED.—The term ‘‘substan-
tially transformed’’ means, with respect to a good or material,
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changed as the result of a manufacturing or processing oper-
ation so that— 
(A)(i) the good or material is converted from a good 
that has multiple uses into a good or material that has 
limited uses; 
(ii) the physical properties of the good or material 
are changed to a significant extent; or 
(iii) the operation undergone by the good or material 
is complex by reason of the number of different processes 
and materials involved and the time and level of skill 
required to perform those processes; and 
(B) the good or material loses its separate identity 
in the manufacturing or processing operation. 
(j) PRESIDENTIAL PROCLAMATION AUTHORITY.— 
(1) IN GENERAL.—The President is authorized to proclaim, 
as part of the HTS— 
(A) the provisions set forth in Annex 3–A and Annex 
4–A of the Agreement; and 
(B) any additional subordinate category that is nec-
essary to carry out this title, consistent with the Agree-
ment. 
(2) MODIFICATIONS.— 
(A) IN GENERAL.—Subject to the consultation and lay-
over provisions of section 104, the President may proclaim 
modifications to the provisions proclaimed under the 
authority of paragraph (1)(A), other than provisions of chap-
ters 50 through 63 of the HTS (as included in Annex 
3–A of the Agreement). 
(B) 
ADDITIONAL
PROCLAMATIONS.—Notwithstanding 
subparagraph (A), and subject to the consultation and lay-
over provisions of section 104, the President may pro-
claim— 
(i) modifications to the provisions proclaimed under 
the authority of paragraph (1)(A) as are necessary 
to implement an agreement with Bahrain pursuant 
to article 3.2.5 of the Agreement; and 
(ii) before the end of the 1-year period beginning 
on the date of the enactment of this Act, modifications 
to correct any typographical, clerical, or other nonsub-
stantive technical error regarding the provisions of 
chapters 50 through 63 of the HTS (as included in 
Annex 3–A of the Agreement). 
SEC. 203. CUSTOMS USER FEES. 
Section 13031(b) of the Consolidated Omnibus Budget Reconcili-
ation Act of 1985 (19 U.S.C. 58c(b)) is amended—
(1) in each of paragraphs (13) and (15), by moving the 
text 2 ems to the left; and 
(2) by adding after paragraph (15) the following: 
‘‘(16) No fee may be charged under subsection (a) (9) or (10) 
with respect to goods that qualify as originating goods under section 
202 
of 
the 
United 
States-Bahrain 
Free 
Trade 
Agreement 
Implementation Act. Any service for which an exemption from 
such fee is provided by reason of this paragraph may not be funded 
with money contained in the Customs User Fee Account.’’.
H. R. 4340—12
SEC. 204. ENFORCEMENT RELATING TO TRADE IN TEXTILE AND 
APPAREL GOODS. 
(a) ACTION DURING VERIFICATION.— 
(1) IN GENERAL.—If the Secretary of the Treasury requests 
the Government of Bahrain to conduct a verification pursuant 
to article 3.3 of the Agreement for purposes of making a deter-
mination under paragraph (2), the President may direct the 
Secretary to take appropriate action described in subsection 
(b) while the verification is being conducted. 
(2) DETERMINATION.—A determination under this para-
graph is a determination— 
(A) that an exporter or producer in Bahrain is com-
plying with applicable customs laws, regulations, proce-
dures, requirements, or practices affecting trade in textile 
or apparel goods; or 
(B) that a claim that a textile or apparel good exported 
or produced by such exporter or producer— 
(i) qualifies as an originating good under section 
202; or 
(ii) is a good of Bahrain, is accurate. 
(b) APPROPRIATE ACTION DESCRIBED.—Appropriate action under 
subsection (a)(1) includes— 
(1) suspension of liquidation of the entry of any textile 
or apparel good exported or produced by the person that is 
the subject of a verification referred to in subsection (a)(1) 
regarding compliance described in subsection (a)(2)(A), in a 
case in which the request for verification was based on a 
reasonable suspicion of unlawful activity related to such good; 
and 
(2) suspension of liquidation of the entry of a textile or 
apparel good for which a claim has been made that is the 
subject of a verification referred to in subsection (a)(1) regarding 
a claim described in subsection (a)(2)(B). 
(c) ACTION WHEN INFORMATION IS INSUFFICIENT.—If the Sec-
retary of the Treasury determines that the information obtained 
within 12 months after making a request for a verification under 
subsection (a)(1) is insufficient to make a determination under 
subsection (a)(2), the President may direct the Secretary to take 
appropriate action described in subsection (d) until such time as 
the Secretary receives information sufficient to make a determina-
tion under subsection (a)(2) or until such earlier date as the Presi-
dent may direct. 
(d) APPROPRIATE
ACTION
DESCRIBED.—Appropriate action 
referred to in subsection (c) includes— 
(1) publication of the name and address of the person 
that is the subject of the verification; 
(2) denial of preferential tariff treatment under the Agree-
ment to— 
(A) any textile or apparel good exported or produced 
by the person that is the subject of a verification referred 
to in subsection (a)(1) regarding compliance described in 
subsection (a)(2)(A); or 
(B) a textile or apparel good for which a claim has 
been made that is the subject of a verification referred 
to in subsection (a)(1) regarding a claim described in sub-
section (a)(2)(B); and 
(3) denial of entry into the United States of—
H. R. 4340—13
(A) any textile or apparel good exported or produced 
by the person that is the subject of a verification referred 
to in subsection (a)(1) regarding compliance described in 
subsection (a)(2)(A); or 
(B) a textile or apparel good for which a claim has 
been made that is the subject of a verification referred 
to in subsection (a)(1) regarding a claim described in sub-
section (a)(2)(B). 
SEC. 205. REGULATIONS. 
The Secretary of the Treasury shall prescribe such regula-
tions as may be necessary to carry out— 
(1) subsections (a) through (i) of section 202; 
(2) the amendment made by section 203(2); and 
(3) proclamations issued under section 202(j). 
TITLE III—RELIEF FROM IMPORTS 
SEC. 301. DEFINITIONS. 
In this title: 
(1) BAHRAINI ARTICLE.—The term ‘‘Bahraini article’’ means 
an article that—
(A) qualifies as an originating good under section 
202(b); or 
(B) receives preferential tariff treatment under para-
graphs 8 through 11 of article 3.2 of the Agreement. 
(2) BAHRAINI
TEXTILE
OR
APPAREL
ARTICLE.—The term 
‘‘Bahraini textile or apparel article’’ means an article that— 
(A) is listed in the Annex to the Agreement on Textiles 
and Clothing referred to in section 101(d)(4) of the Uruguay 
Round Agreements Act (19 U.S.C. 3511(d)(4)); and 
(B) is a Bahraini article. 
(3) COMMISSION.—The term ‘‘Commission’’ means the 
United States International Trade Commission. 
Subtitle A—Relief From Imports Benefiting 
From the Agreement 
SEC. 311. COMMENCING OF ACTION FOR RELIEF. 
(a) FILING OF PETITION.—A petition requesting action under 
this subtitle for the purpose of adjusting to the obligations of 
the United States under the Agreement may be filed with the 
Commission by an entity, including a trade association, firm, cer-
tified or recognized union, or group of workers, that is representa-
tive of an industry. The Commission shall transmit a copy of any 
petition filed under this subsection to the United States Trade 
Representative. 
(b) INVESTIGATION
AND DETERMINATION.—Upon the filing of 
a petition under subsection (a), the Commission, unless subsection 
(d) applies, shall promptly initiate an investigation to determine 
whether, as a result of the reduction or elimination of a duty 
provided for under the Agreement, a Bahraini article is being 
imported into the United States in such increased quantities, in 
absolute terms or relative to domestic production, and under such
H. R. 4340—14
conditions that imports of the Bahraini article constitute a substan-
tial cause of serious injury or threat thereof to the domestic industry 
producing an article that is like, or directly competitive with, the 
imported article. 
(c) APPLICABLE PROVISIONS.—The following provisions of section 
202 of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect 
to any investigation initiated under subsection (b): 
(1) Paragraphs (1)(B) and (3) of subsection (b). 
(2) Subsection (c). 
(3) Subsection (i). 
(d) ARTICLES EXEMPT FROM INVESTIGATION.—No investigation 
may be initiated under this section with respect to any Bahraini 
article if, after the date on which the Agreement enters into force 
with respect to the United States, import relief has been provided 
with respect to that Bahraini article under this subtitle. 
SEC. 312. COMMISSION ACTION ON PETITION. 
(a) DETERMINATION.—Not later than 120 days after the date 
on which an investigation is initiated under section 311(b) with 
respect to a petition, the Commission shall make the determination 
required under that section. 
(b) APPLICABLE PROVISIONS.—For purposes of this subtitle, the 
provisions of paragraphs (1), (2), and (3) of section 330(d) of the 
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be 
applied with respect to determinations and findings made under 
this section as if such determinations and findings were made 
under section 202 of the Trade Act of 1974 (19 U.S.C. 2252). 
(c) ADDITIONAL FINDING AND RECOMMENDATION IF DETERMINA-
TION AFFIRMATIVE.—
(1) IN
GENERAL.—If the determination made by the 
Commission under subsection (a) with respect to imports of 
an article is affirmative, or if the President may consider a 
determination of the Commission to be an affirmative deter-
mination as provided for under paragraph (1) of section 330(d) 
of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the Commission 
shall find, and recommend to the President in the report 
required under subsection (d), the amount of import relief that 
is necessary to remedy or prevent the injury found by the 
Commission in the determination and to facilitate the efforts 
of the domestic industry to make a positive adjustment to 
import competition. 
(2) LIMITATION ON RELIEF.—The import relief recommended 
by the Commission under this subsection shall be limited to 
that described in section 313(c). 
(3) VOTING; SEPARATE VIEWS.—Only those members of the 
Commission who voted in the affirmative under subsection 
(a) are eligible to vote on the proposed action to remedy or 
prevent the injury found by the Commission. Members of the 
Commission who did not vote in the affirmative may submit, 
in the report required under subsection (d), separate views 
regarding what action, if any, should be taken to remedy or 
prevent the injury. 
(d) REPORT TO PRESIDENT.—Not later than the date that is 
30 days after the date on which a determination is made under 
subsection (a) with respect to an investigation, the Commission 
shall submit to the President a report that includes—
H. R. 4340—15
(1) the determination made under subsection (a) and an 
explanation of the basis for the determination; 
(2) if the determination under subsection (a) is affirmative, 
any findings and recommendations for import relief made under 
subsection (c) and an explanation of the basis for each rec-
ommendation; and 
(3) any dissenting or separate views by members of the 
Commission regarding the determination and recommendation 
referred to in paragraphs (1) and (2). 
(e) PUBLIC NOTICE.—Upon submitting a report to the President 
under subsection (d), the Commission shall promptly make public 
such report (with the exception of information which the Commis-
sion determines to be confidential) and shall cause a summary 
thereof to be published in the Federal Register. 
SEC. 313. PROVISION OF RELIEF. 
(a) IN GENERAL.—Not later than the date that is 30 days 
after the date on which the President receives the report of the 
Commission in which the Commission’s determination under section 
312(a) is affirmative, or which contains a determination under 
section 312(a) that the President considers to be affirmative under 
paragraph (1) of section 330(d) of the Tariff Act of 1930 (19 U.S.C. 
1330(d)(1)), the President, subject to subsection (b), shall provide 
relief from imports of the article that is the subject of such deter-
mination to the extent that the President determines necessary 
to remedy or prevent the injury found by the Commission and 
to facilitate the efforts of the domestic industry to make a positive 
adjustment to import competition. 
(b) EXCEPTION.—The President is not required to provide import 
relief under this section if the President determines that the provi-
sion of the import relief will not provide greater economic and 
social benefits than costs. 
(c) NATURE OF RELIEF.— 
(1) IN GENERAL.—The import relief that the President is 
authorized to provide under this section with respect to imports 
of an article is as follows: 
(A) The suspension of any further reduction provided 
for under Annex 2–B of the Agreement in the duty imposed 
on such article. 
(B) An increase in the rate of duty imposed on such 
article to a level that does not exceed the lesser of— 
(i) the column 1 general rate of duty imposed under 
the HTS on like articles at the time the import relief 
is provided; or 
(ii) the column 1 general rate of duty imposed 
under the HTS on like articles on the day before the 
date on which the Agreement enters into force. 
(2) PROGRESSIVE LIBERALIZATION.—If the period for which 
import relief is provided under this section is greater than 
1 year, the President shall provide for the progressive liberaliza-
tion of such relief at regular intervals during the period in 
which the relief is in effect. 
(d) PERIOD OF RELIEF.—
(1) IN GENERAL.—Subject to paragraph (2), any import relief 
that the President provides under this section may not, in 
the aggregate, be in effect for more than 3 years. 
(2) EXTENSION.—
H. R. 4340—16
(A) IN GENERAL.—If the initial period for any import 
relief provided under this section is less than 3 years, 
the President, after receiving a determination from the 
Commission under subparagraph (B) that is affirmative, 
or which the President considers to be affirmative under 
paragraph (1) of section 330(d) of the Tariff Act of 1930 
(19 U.S.C. 1330(d)(1)), may extend the effective period of 
any import relief provided under this section, subject to 
the limitation under paragraph (1), if the President deter-
mines that— 
(i) the import relief continues to be necessary to 
remedy or prevent serious injury and to facilitate 
adjustment by the domestic industry to import competi-
tion; and 
(ii) there is evidence that the industry is making 
a positive adjustment to import competition. 
(B) ACTION BY COMMISSION.— 
(i) INVESTIGATION.—Upon a petition on behalf of 
the industry concerned that is filed with the Commis-
sion not earlier than the date which is 9 months, 
and not later than the date which is 6 months, before 
the date any action taken under subsection (a) is to 
terminate, the Commission shall conduct an investiga-
tion to determine whether action under this section 
continues to be necessary to remedy or prevent serious 
injury and to facilitate adjustment by the domestic 
industry to import competition and whether there is 
evidence that the industry is making a positive adjust-
ment to import competition. 
(ii) NOTICE AND HEARING.—The Commission shall 
publish notice of the commencement of any proceeding 
under this subparagraph in the Federal Register and 
shall, within a reasonable time thereafter, hold a public 
hearing at which the Commission shall afford 
interested parties and consumers an opportunity to 
be present, to present evidence, and to respond to 
the presentations of other parties and consumers, and 
otherwise to be heard. 
(iii) REPORT.—The Commission shall transmit to 
the President a report on its investigation and deter-
mination under this subparagraph not later than 60 
days before the action under subsection (a) is to termi-
nate, unless the President specifies a different date. 
(e) RATE AFTER TERMINATION OF IMPORT RELIEF.—When import 
relief under this section is terminated with respect to an article, 
the rate of duty on that article shall be the rate that would have 
been in effect, but for the provision of such relief, on the date 
on which the relief terminates. 
(f) ARTICLES EXEMPT FROM RELIEF.—No import relief may be 
provided under this section on any article that has been subject 
to import relief under this subtitle after the date on which the 
Agreement enters into force. 
SEC. 314. TERMINATION OF RELIEF AUTHORITY. 
(a) GENERAL RULE.—Subject to subsection (b), no import relief 
may be provided under this subtitle after the date that is 10 
years after the date on which the Agreement enters into force.
H. R. 4340—17
(b) PRESIDENTIAL DETERMINATION.—Import relief may be pro-
vided under this subtitle in the case of a Bahraini article after 
the date on which such relief would, but for this subsection, termi-
nate under subsection (a), if the President determines that Bahrain 
has consented to such relief. 
SEC. 315. COMPENSATION AUTHORITY. 
For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
section 313 shall be treated as action taken under chapter 1 of 
title II of such Act (19 U.S.C. 2251 et seq.). 
SEC. 316. CONFIDENTIAL BUSINESS INFORMATION. 
Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C. 2252(a)(8)) 
is amended in the first sentence— 
(1) by striking ‘‘and’’; and 
(2) by inserting before the period at the end ‘‘, and title 
III of the United States-Bahrain Free Trade Agreement 
Implementation Act’’. 
Subtitle B—Textile and Apparel Safeguard 
Measures 
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF. 
(a) IN GENERAL.—A request under this subtitle for the purpose 
of adjusting to the obligations of the United States under the 
Agreement may be filed with the President by an interested party. 
Upon the filing of a request, the President shall review the request 
to determine, from information presented in the request, whether 
to commence consideration of the request. 
(b) PUBLICATION OF REQUEST.—If the President determines that 
the request under subsection (a) provides the information necessary 
for the request to be considered, the President shall cause to be 
published in the Federal Register a notice of commencement of 
consideration of the request, and notice seeking public comments 
regarding the request. The notice shall include a summary of the 
request and the dates by which comments and rebuttals must 
be received. 
SEC. 322. DETERMINATION AND PROVISION OF RELIEF. 
(a) DETERMINATION.— 
(1) IN GENERAL.—If a positive determination is made under 
section 321(b), the President shall determine whether, as a 
result of the reduction or elimination of a duty under the 
Agreement, a Bahraini textile or apparel article is being 
imported into the United States in such increased quantities, 
in absolute terms or relative to the domestic market for that 
article, and under such conditions as to cause serious damage, 
or actual threat thereof, to a domestic industry producing an 
article that is like, or directly competitive with, the imported 
article. 
(2) SERIOUS DAMAGE.—In making a determination under 
paragraph (1), the President— 
(A) shall examine the effect of increased imports on 
the domestic industry, as reflected in changes in such rel-
evant economic factors as output, productivity, utilization
H. R. 4340—18
of capacity, inventories, market share, exports, wages, 
employment, domestic prices, profits, and investment, none 
of which is necessarily decisive; and 
(B) shall not consider changes in technology or con-
sumer preference as factors supporting a determination 
of serious damage or actual threat thereof. 
(b) PROVISION OF RELIEF.— 
(1) IN GENERAL.—If a determination under subsection (a) 
is affirmative, the President may provide relief from imports 
of the article that is the subject of such determination, as 
described in paragraph (2), to the extent that the President 
determines necessary to remedy or prevent the serious damage 
and to facilitate adjustment by the domestic industry to import 
competition. 
(2) NATURE OF RELIEF.—The relief that the President is 
authorized to provide under this subsection with respect to 
imports of an article is an increase in the rate of duty imposed 
on the article to a level that does not exceed the lesser of— 
(A) the column 1 general rate of duty imposed under 
the HTS on like articles at the time the import relief 
is provided; or 
(B) the column 1 general rate of duty imposed under 
the HTS on like articles on the day before the date on 
which the Agreement enters into force. 
SEC. 323. PERIOD OF RELIEF. 
(a) IN GENERAL.—Subject to subsection (b), any import relief 
that the President provides under subsection (b) of section 322 
may not, in the aggregate, be in effect for more than 3 years. 
(b) EXTENSION.—If the initial period for any import relief pro-
vided under section 322 is less than 3 years, the President may 
extend the effective period of any import relief provided under 
that section, subject to the limitation set forth in subsection (a), 
if the President determines that— 
(1) the import relief continues to be necessary to remedy 
or prevent serious damage and to facilitate adjustment by the 
domestic industry to import competition; and 
(2) there is evidence that the industry is making a positive 
adjustment to import competition. 
SEC. 324. ARTICLES EXEMPT FROM RELIEF. 
The President may not provide import relief under this subtitle 
with respect to any article if— 
(1) the article has been subject to import relief under 
this subtitle after the date on which the Agreement enters 
into force; or 
(2) the article is subject to import relief under chapter 
1 of title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
seq.). 
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF. 
When import relief under this subtitle is terminated with 
respect to an article, the rate of duty on that article shall be 
the rate that would have been in effect, but for the provision 
of such relief, on the date on which the relief terminates.
H. R. 4340—19
SEC. 326. TERMINATION OF RELIEF AUTHORITY. 
No import relief may be provided under this subtitle with 
respect to any article after the date that is 10 years after the 
date on which duties on the article are eliminated pursuant to 
the Agreement. 
SEC. 327. COMPENSATION AUTHORITY. 
For purposes of section 123 of the Trade Act of 1974 (19 
U.S.C. 2133), any import relief provided by the President under 
this subtitle shall be treated as action taken under chapter 1 
of title II of such Act. 
SEC. 328. CONFIDENTIAL BUSINESS INFORMATION. 
The President may not release information that is submitted 
in a proceeding under this subtitle and that the President considers 
to be confidential business information unless the party submitting 
the confidential business information had notice, at the time of 
submission, that such information would be released, or such party 
subsequently consents to the release of the information. To the 
extent a party submits confidential business information to the 
President in a proceeding under this subtitle, the party shall also 
submit a nonconfidential version of the information, in which the 
confidential business information is summarized or, if necessary, 
deleted. 
TITLE IV—PROCUREMENT 
SEC. 401. ELIGIBLE PRODUCTS. 
Section 308(4)(A) of the Trade Agreements Act of 1979 (19 
U.S.C. 2518(4)(A)) is amended— 
(1) by striking ‘‘or’’ at the end of clause (iii); 
(2) by striking the period at the end of clause (iv) and 
inserting ‘‘; or’’; and 
(3) by adding at the end the following new clause: 
‘‘(v) a party to a free trade agreement that entered 
into force with respect to the United States after 
December 31, 2005, and before July 2, 2006, a product 
or service of that country or instrumentality which
H. R. 4340—20
is covered under the free trade agreement for procure-
ment by the United States.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.