that Oman 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 Oman providing for the 
entry into force, on or after January 1, 2007, of the 
Agreement with respect to the United States. 
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED 
STATES AND STATE LAW. 
(a) RELATIONSHIP
OF AGREEMENT
TO UNITED 
STATES LAW.—
(1) UNITED STATES LAW TO PREVAIL IN CON-
FLICT.—No provision of the Agreement, nor the ap-
plication of any such provision to any person or cir-
cumstance, which is inconsistent with any law of the 
United States shall have effect. 
(2) CONSTRUCTION.—Nothing in this Act shall 
be construed—
(A) to amend or modify any law of the 
United States, or 
(B) to limit any authority conferred under 
any law of the United States, 
unless specifically provided for in this Act. 
(b) RELATIONSHIP
OF
AGREEMENT
TO
STATE 
LAW.—
(1) LEGAL CHALLENGE.—No State law, or the 
application thereof, may be declared invalid as to 
any person or circumstance on the ground that the 
provision or application is inconsistent with the 
Agreement, except in an action brought by the 
United States for the purpose of declaring such law 
or application invalid. 
(2) DEFINITION OF STATE LAW.—For purposes 
of this subsection, the term ‘‘State law’’ includes—
(A) any law of a political subdivision of a 
State; and 
(B) any State law regulating or taxing the 
business of insurance. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE REMEDIES.—No person other than the United 
States—
(1) shall have any cause of action or defense 
under the Agreement or by virtue of congressional 
approval thereof; or 
(2) may challenge, in any action brought under 
any provision of law, any action or inaction by any 
department, agency, or other instrumentality of the 
United States, any State, or any political subdivision 
of a State, on the ground that such action or inac-
tion is inconsistent with the Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 
ENTRY INTO FORCE AND INITIAL REGULA-
TIONS. 
(a) IMPLEMENTING ACTIONS.—
(1) PROCLAMATION
AUTHORITY.—After the 
date of the enactment of this Act—
(A) the President may proclaim such ac-
tions, and 
(B) other appropriate officers of the 
United States Government may issue such reg-
ulations, 
as may be necessary to ensure that any provision of 
this Act, or amendment made by this Act, that takes 
effect on the date on which the Agreement enters 
into force is appropriately implemented on such 
date, but no such proclamation or regulation may 
have an effective date earlier than the date on which 
the Agreement enters into force. 
(2) EFFECTIVE DATE OF CERTAIN PROCLAIMED 
ACTIONS.—Any action proclaimed by the President 
under the authority of this Act that is not subject 
to the consultation and layover provisions under sec-
tion 104 may not take effect before the 15th day 
after the date on which the text of the proclamation 
is published in the Federal Register.
(3) WAIVER OF 15-DAY RESTRICTION.—The 15-
day restriction in paragraph (2) on the taking effect 
of proclaimed actions is waived to the extent that 
the application of such restriction would prevent the 
taking effect on the date on which the Agreement 
enters into force of any action proclaimed under this 
section. 
(b) INITIAL REGULATIONS.—Initial regulations nec-
essary or appropriate to carry out the actions required by 
or authorized under this Act or proposed in the statement 
of 
administrative 
action 
submitted 
under 
section 
101(a)(2) to implement the Agreement shall, to the max-
imum extent feasible, be issued within 1 year after the 
date on which the Agreement enters into force. In the case 
of any implementing action that takes effect on a date 
after the date on which the Agreement enters into force, 
initial regulations to carry out that action shall, to the 
maximum extent feasible, be issued within 1 year after 
such effective date. 
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, 
AND EFFECTIVE DATE OF, PROCLAIMED AC-
TIONS. 
If a provision of this Act provides that the implemen-
tation of an action by the President by proclamation is
subject to the consultation and layover requirements of 
this section, such action may be proclaimed only if—
(1) the President has obtained advice regarding 
the proposed action from—
(A) the appropriate advisory committees 
established under section 135 of the Trade Act 
of 1974 (19 U.S.C. 2155); and 
(B) the United States International Trade 
Commission; 
(2) the President has submitted to the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives 
a report that sets forth—
(A) the action proposed to be proclaimed 
and the reasons therefor; and 
(B) the advice obtained under paragraph 
(1); 
(3) a period of 60 calendar days, beginning on 
the first day on which the requirements set forth in 
paragraphs (1) and (2) have been met has expired; 
and 
(4) the President has consulted with the Com-
mittees referred to in paragraph (2) regarding the 
proposed action during the period referred to in 
paragraph (3).
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PRO-
CEEDINGS. 
(a) ESTABLISHMENT OR DESIGNATION OF OFFICE.—
The President is authorized to establish or designate with-
in the Department of Commerce an office that shall be 
responsible for providing administrative assistance to pan-
els established under chapter 20 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 2006 to the Department of Commerce such 
sums as may be necessary for the establishment and oper-
ations of the office established or designated under sub-
section (a) and for the payment of the United States share 
of the expenses of panels established under chapter 20 of 
the Agreement. 
SEC. 106. ARBITRATION OF CLAIMS. 
The United States is authorized to resolve any claim 
against 
the 
United 
States 
covered 
by 
article 
10.15.1(a)(i)(C) or article 10.15.1(b)(i)(C) of the Agree-
ment, pursuant to the Investor-State Dispute Settlement 
procedures set forth in section B of chapter 10 of the 
Agreement.
SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION. 
(a) EFFECTIVE DATES.—Except as provided in sub-
section (b), the provisions of this Act and the amendments 
made by this Act take effect on the date on which the 
Agreement enters into force. 
(b) EXCEPTIONS.—Sections 1 through 3 and this 
title take effect on the date of the enactment of this Act. 
(c) TERMINATION
OF
THE AGREEMENT.—On the 
date on which the Agreement terminates, the provisions 
of this Act (other than this subsection) and the amend-
ments 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 Presi-
dent may proclaim—
(A) such modifications or continuation of 
any duty, 
(B) such continuation of duty-free or ex-
cise treatment, or 
(C) such additional duties, 
as the President determines to be necessary or ap-
propriate 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 OMANI GSP STATUS.—Notwith-
standing section 502(a)(1) of the Trade Act of 1974 
(19 U.S.C. 2462(a)(1)), the President shall, on the 
date on which the Agreement enters into force, ter-
minate the designation of Oman as a beneficiary de-
veloping 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 Oman 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 Oman provided 
for by the Agreement. 
(c) CONVERSION TO AD VALOREM RATES.—For pur-
poses of subsections (a) and (b), with respect to any good
for which the base rate in the Tariff Schedule of the 
United States to Annex 2–B of the Agreement is a specific 
or compound rate of duty, the President may substitute 
for the base rate an ad valorem rate that the President 
determines to be equivalent to the base rate. 
SEC. 202. RULES OF ORIGIN. 
(a) APPLICATION
AND INTERPRETATION.—In this 
section: 
(1) TARIFF
CLASSIFICATION.—The basis for 
any tariff classification is the HTS. 
(2) REFERENCE
TO
HTS.—Whenever in this 
section there is a reference to a heading or sub-
heading, such reference shall be a reference to a 
heading or subheading of the HTS. 
(b) ORIGINATING GOODS.—
(1) IN
GENERAL.—For purposes of this Act 
and for purposes of implementing the preferential 
tariff treatment provided for under the Agreement, 
a good is an originating good if—
(A) the good is imported directly—
(i) from the territory of Oman into 
the territory of the United States; or 
(ii) from the territory of the United 
States into the territory of Oman; and
(B)(i) the good is a good wholly the 
growth, product, or manufacture of Oman 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 Oman 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 mate-
rials used in the production of the good under-
goes an applicable change in tariff classification 
specified in such Annex as a result of produc-
tion occurring entirely in the territory of Oman 
or the United States, or both; or 
(bb) the good otherwise satisfies the re-
quirements 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—