[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5684 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5684
To implement the United States-Oman Free Trade Agreement.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 26, 2006
Mr. Boehner (for himself and Mr. Moran of Virginia) (both by request)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To implement the United States-Oman 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-Oman
Free Trade Agreement Implementation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.
TITLE II--CUSTOMS PROVISIONS
Sec. 201. Tariff modifications.
Sec. 202. Rules of origin.
Sec. 203. Customs user fees.
Sec. 204. Enforcement relating to trade in textile and apparel goods.
Sec. 205. Reliquidation of entries.
Sec. 206. Regulations.
TITLE III--RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A--Relief From Imports Benefiting From the Agreement
Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.
Subtitle B--Textile and Apparel Safeguard Measures
Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.
TITLE IV--PROCUREMENT
Sec. 401. Eligible products.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement
between the United States and Oman entered into under the
authority of section 2103(b) of the Bipartisan Trade Promotion
Authority Act of 2002 (19 U.S.C. 3803(b));
(2) to strengthen and develop economic relations between
the United States and Oman 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 to investment; 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-Oman Free Trade Agreement approved by Congress under
section 101(a)(1).
(2) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(3) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.
(a) Approval of Agreement and Statement of Administrative Action.--
Pursuant to section 2105 of the Bipartisan Trade Promotion Authority
Act of 2002 (19 U.S.C. 3805) and section 151 of the Trade Act of 1974
(19 U.S.C. 2191), Congress approves--
(1) the United States-Oman Free Trade Agreement entered
into on January 19, 2006, with Oman and submitted to Congress
on June 26, 2006; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to Congress on June
26, 2006.
(b) Conditions for Entry Into Force of the Agreement.--At such time
as the President determines 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 conflict.--No provision
of the Agreement, nor the application of any such provision to
any person or circumstance, which is inconsistent with any law
of the United States shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United
States, or
(B) to limit any authority conferred under any law
of the United States,
unless specifically provided for in this Act.
(b) Relationship of Agreement to State Law.--
(1) Legal challenge.--No State law, or the application
thereof, may be declared invalid as to any person or
circumstance on the ground that the provision or application is
inconsistent with the Agreement, except in an action brought by
the United States for the purpose of declaring such law or
application invalid.
(2) Definition of state law.--For purposes of this
subsection, the term ``State law'' includes--
(A) any law of a political subdivision of a State;
and
(B) any State law regulating or taxing the business
of insurance.
(c) Effect of Agreement With Respect to Private Remedies.--No
person other than the United States--
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any
provision of law, any action or inaction by any department,
agency, or other instrumentality of the United States, any
State, or any political subdivision of a State, on the ground
that such action or inaction is inconsistent with the
Agreement.
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO FORCE AND
INITIAL REGULATIONS.
(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the
enactment of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,
as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the date on
which the Agreement enters into force is appropriately
implemented on such date, but no such proclamation or
regulation may have an effective date earlier than the date on
which the Agreement enters into force.
(2) Effective date of certain proclaimed actions.--Any
action proclaimed by the President under the authority of this
Act that is not subject to the consultation and layover
provisions under section 104 may not take effect before the
15th day after the date on which the text of the proclamation
is published in the Federal Register.
(3) Waiver of 15-day restriction.--The 15-day restriction
in paragraph (2) on the taking effect of proclaimed actions is
waived to the extent that the application of such restriction
would prevent the taking effect on the date on which the
Agreement enters into force of any action proclaimed under this
section.
(b) Initial Regulations.--Initial regulations necessary or
appropriate to carry out the actions required by or authorized under
this Act or proposed in the statement of administrative action
submitted under section 101(a)(2) to implement the Agreement shall, to
the maximum extent feasible, be issued within 1 year after the date on
which the Agreement enters into force. In the case of any implementing
action that takes effect on a date after the date on which the
Agreement enters into force, initial regulations to carry out that
action shall, to the maximum extent feasible, be issued within 1 year
after such effective date.
SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND EFFECTIVE DATE
OF, PROCLAIMED ACTIONS.
If a provision of this Act provides that the implementation of an
action by the President by proclamation is subject to the consultation
and layover requirements of this section, such action may be proclaimed
only if--
(1) the President has obtained advice regarding the
proposed action from--
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974 (19 U.S.C.
2155); and
(B) the United States International Trade
Commission;
(2) the President has submitted to the Committee on Finance
of the Senate and the Committee on Ways and Means of the House
of Representatives a report that sets forth--
(A) the action proposed to be proclaimed and the
reasons therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first
day on which the requirements set forth in paragraphs (1) and
(2) have been met has expired; and
(4) the President has consulted with the Committees
referred to in paragraph (2) regarding the proposed action
during the period referred to in paragraph (3).
SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.
(a) Establishment or Designation of Office.--The President is
authorized to establish or designate within the Department of Commerce
an office that shall be responsible for providing administrative
assistance to panels established under chapter 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 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 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 Agreement, 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 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.
(b) Exceptions.--Sections 1 through 3 and this title take effect on
the date of the enactment of this Act.
(c) Termination of the Agreement.--On the date on which the
Agreement terminates, the provisions of this Act (other than this
subsection) and the amendments made by this Act shall cease to be
effective.
TITLE II--CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) Tariff Modifications Provided for in the Agreement.--
(1) Proclamation authority.--The President may proclaim--
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise
treatment, or
(C) such additional duties,
as the President determines to be necessary or appropriate to
carry out or apply articles 2.3, 2.5, 2.6, 3.2.8, and 3.2.9,
and Annex 2-B of the Agreement.
(2) Effect on omani gsp status.--Notwithstanding section
502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)), the
President shall, on the date on which the Agreement enters into
force, terminate the designation of Oman 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 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 purposes of subsections
(a) and (b), with respect to any good for which the base rate in the
Tariff Schedule of the United States to Annex 2-B of the Agreement is a
specific or compound rate of duty, the President may substitute for the
base rate an ad valorem rate that the President determines to be
equivalent to the base rate.
SEC. 202. RULES OF ORIGIN.
(a) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a heading or subheading, such reference shall be a
reference to a heading or subheading of the HTS.
(b) Originating Goods.--
(1) In general.--For purposes of this Act and for purposes
of implementing the preferential tariff treatment provided for
under the Agreement, a good is an originating good if--
(A) the good is imported directly--
(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 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 Oman 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 Oman or the United States, or both, and
(B) the direct costs of processing operations
performed in the territory of Oman 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 Oman or the United States, or both, that is
incorporated into a good in the territory of the other country
shall be considered to originate in the territory of the other
country.
(2) Multiple producers.--A good that is grown, produced, or
manufactured in the territory of Oman 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 Oman or the
United States, or both, includes the following:
(A) The price actually paid or payable for the
material by the producer of the good.
(B) The freight, insurance, packing, and all other
costs incurred in transporting the material to the
producer's plant, if such costs are not included in the
price referred to in subparagraph (A).
(C) The cost of waste or spoilage resulting from
the use of the material in the growth, production, or
manufacture of the good, less the value of recoverable
scrap.
(D) Taxes or customs duties imposed on the material
by Oman or the United States, or both, if the taxes or
customs duties are not remitted upon exportation from
the territory of Oman 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 Oman or the United States, or both, includes the following:
(A) All expenses incurred in the growth,
production, or manufacture of the material, including
general expenses.
(B) A reasonable amount for profit.
(C) Freight, insurance, packing, and all other
costs incurred in transporting the material to the
producer's plant.
(e) Packaging and Packing Materials and Containers for Retail Sale
and for Shipment.--Packaging and packing materials and containers for
retail sale and shipment shall be disregarded in determining whether a
good qualifies as an originating good, except to the extent that the
value of such packaging and packing materials and containers has been
included in meeting the requirements set forth in subsection (b)(2).
(f) Indirect Materials.--Indirect materials shall be disregarded in
determining whether a good qualifies as an originating good, except
that the cost of such indirect materials may be included in meeting the
requirements set forth in subsection (b)(2).
(g) Transit and Transshipment.--A good shall not be considered to
meet the requirement of subsection (b)(1)(A) if, after exportation from
the territory of Oman or the United States, the good undergoes
production, manufacturing, or any other operation outside the territory
of Oman 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 Oman or the United States.
(h) Textile and Apparel Goods.--
(1) De minimis amounts of nonoriginating materials.--
(A) In general.--Except as provided in subparagraph
(B), a textile or apparel good that is not an
originating good because certain fibers or yarns used
in the production of the component of the good that
determines the tariff classification of the good do not
undergo an applicable change in tariff classification
set out in Annex 3-A of the Agreement shall be
considered to be an originating good if the total
weight of all such fibers or yarns in that component is
not more than 7 percent of the total weight of that
component.
(B) Certain textile or apparel goods.--A textile or
apparel good containing elastomeric yarns in the
component of the good that determines the tariff
classification of the good shall be considered to be an
originating good only if such yarns are wholly formed
in the territory of Oman 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 that is a yarn, fabric, or group of fibers, the
term ``component of the good that determines the tariff
classification of the good'' means all of the fibers in
the yarn, fabric, or group of fibers.
(2) Goods put up in sets for retail sale.--Notwithstanding
the rules set forth in Annex 3-A of the Agreement, textile or
apparel goods classifiable as goods put up in sets for retail
sale as provided for in General Rule of Interpretation 3 of the
HTS shall not be considered to be originating goods unless each
of the goods in the set is an originating good or the total
value of the nonoriginating goods in the set does not exceed 10
percent of the value of the set determined for purposes of
assessing customs duties.
(i) Definitions.--In this section:
(1) Direct costs of processing operations.--
(A) In general.--The term ``direct costs of
processing operations'', with respect to a good,
includes, to the extent they are includable in the
appraised value of the good when imported into Oman or
the United States, as the case may be, the following:
(i) All actual labor costs involved in the
growth, production, or manufacture of the good,
including fringe benefits, on-the-job training,
and the cost of engineering, supervisory,
quality control, and similar personnel.
(ii) Tools, dies, molds, and other indirect
materials, and depreciation on machinery and
equipment that are allocable to the good.
(iii) Research, development, design,
engineering, and blueprint costs, to the extent
that they are allocable to the good.
(iv) Costs of inspecting and testing the
good.
(v) Costs of packaging the good for export
to the territory of the other country.
(B) Exceptions.--The term ``direct costs of
processing operations'' does not include costs that are
not directly attributable to a good or are not costs of
growth, production, or manufacture of the good, such
as--
(i) profit; and
(ii) general expenses of doing business
that are either not allocable to the good or
are not related to the growth, production, or
manufacture of the good, such as administrative
salaries, casualty and liability insurance,
advertising, and sales staff salaries,
commissions, or expenses.
(2) Good.--The term ``good'' means any merchandise,
product, article, or material.
(3) Good wholly the growth, product, or manufacture of oman
or the united states, or both.--The term ``good wholly the
growth, product, or manufacture of Oman or the United States,
or both'' means--
(A) a mineral good extracted in the territory of
Oman 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 Oman or
the United States, or both;
(C) a live animal born and raised in the territory
of Oman or the United States, or both;
(D) a good obtained from live animals raised in the
territory of Oman or the United States, or both;
(E) a good obtained from hunting, trapping, or
fishing in the territory of Oman 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 Oman or the United States and flying the flag of
that country;
(G) a good produced from goods referred to in
subparagraph (F) on board factory ships registered or
recorded with Oman or the United States and flying the
flag of that country;
(H) a good taken by Oman or the United States or a
person of Oman or the United States from the seabed or
beneath the seabed outside territorial waters, if Oman
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 Oman or the United States or a person of
Oman or the United States and not processed in the
territory of a country other than Oman or the United
States;
(J) waste and scrap derived from--
(i) production or manufacture in the
territory of Oman or the United States, or
both; or
(ii) used goods collected in the territory
of Oman 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
Oman or the United States from used goods and utilized
in the territory of that country in the production of
remanufactured goods; and
(L) a good produced in the territory of Oman or the
United States, or both, exclusively--
(i) from goods referred to in subparagraphs
(A) through (J), or
(ii) from the derivatives of goods referred
to in clause (i),
at any stage of production.
(4) Indirect material.--The term ``indirect material''
means a good used in the growth, production, manufacture,
testing, or inspection of a good but not physically
incorporated into the good, or a good used in the maintenance
of buildings or the operation of equipment associated with the
growth, production, or manufacture of a good, including--
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the
maintenance of equipment and buildings;
(D) lubricants, greases, compounding materials, and
other materials used in the growth, production, or
manufacture of a good or used to operate equipment and
buildings;
(E) gloves, glasses, footwear, clothing, safety
equipment, and supplies;
(F) equipment, devices, and supplies used for
testing or inspecting the good;
(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 Oman or the United States, or both.
(6) Material produced in the territory of oman or the
united states, or both.--The term ``material produced in the
territory of Oman or the United States, or both'' means a good
that is either wholly the growth, product, or manufacture of
Oman 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 Oman 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 Oman or the
United States, or both; and
(ii) has a new name, character, or use
distinct from the good or material from which
it was transformed.
(B) Exception.--A good shall not be considered a
new or different article of commerce by virtue of
having undergone simple combining or packaging
operations, or mere dilution with water or another
substance that does not materially alter the
characteristics of the good.
(8) Recovered goods.--The term ``recovered goods'' means
materials in the form of individual parts that result from--
(A) the disassembly of used goods into individual
parts; and
(B) the cleaning, inspecting, testing, or other
processing of those parts as necessary for improvement
to sound working condition.
(9) Remanufactured good.--The term ``remanufactured good''
means an industrial good that is assembled in the territory of
Oman or the United States and that--
(A) is entirely or partially comprised of recovered
goods;
(B) has a similar life expectancy to a like good
that is new; and
(C) enjoys a factory warranty similar to that of a
like good that is new.
(10) Simple combining or packaging operations.--The term
``simple combining or packaging operations'' means operations
such as adding batteries to devices, fitting together a small
number of components by bolting, gluing, or soldering, and
repacking or packaging components together.
(11) Substantially transformed.--The term ``substantially
transformed'' means, with respect to a good or material,
changed as the result of a manufacturing or processing
operation so that--
(A)(i) the good or material is converted from a
good that has multiple uses into a good or material
that has limited uses;
(ii) the physical properties of the good or
material are changed to a significant extent; or
(iii) the operation undergone by the good or
material is complex by reason of the number of
different processes and materials involved and the time
and level of skill required to perform those processes;
and
(B) the good or material loses its separate
identity in the manufacturing or processing operation.
(j) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim,
as part of the HTS--
(A) the provisions set forth in Annex 3-A and Annex
4-A of the Agreement; and
(B) any additional subordinate category that is
necessary to carry out this title, consistent with the
Agreement.
(2) Modifications.--
(A) In general.--Subject to the consultation and
layover provisions of section 104, the President may
proclaim modifications to the provisions proclaimed
under the authority of paragraph (1)(A), other than
provisions of chapters 50 through 63 of the HTS (as
included in Annex 3-A of the Agreement).
(B) Additional proclamations.--Notwithstanding
subparagraph (A), and subject to the consultation and
layover provisions of section 104, the President may
proclaim--
(i) modifications to the provisions
proclaimed under the authority of paragraph
(1)(A) as are necessary to implement an
agreement with Oman pursuant to article 3.2.5
of the Agreement; and
(ii) before the end of the 1-year period
beginning on the date of the enactment of this
Act, modifications to correct any
typographical, clerical, or other
nonsubstantive technical error regarding the
provisions of chapters 50 through 63 of the HTS
(as included in Annex 3-A of the Agreement).
SEC. 203. CUSTOMS USER FEES.
Section 13031(b) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(b)) is amended by adding after paragraph
(16) the following:
``(17) 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-Oman 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.''.
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 Oman to conduct a verification pursuant to
article 3.3 of the Agreement for purposes of making a
determination under paragraph (2), the President may direct the
Secretary to take appropriate action described in subsection
(b) while the verification is being conducted.
(2) Determination.--A determination under this paragraph is
a determination--
(A) that an exporter or producer in Oman is
complying with applicable customs laws, regulations,
procedures, requirements, or practices affecting trade
in textile or apparel goods; or
(B) that a claim that a textile or apparel good
exported or produced by such exporter or producer--
(i) qualifies as an originating good under
section 202, or
(ii) is a good of Oman,
is accurate.
(b) Appropriate Action Described.--Appropriate action under
subsection (a)(1) includes--
(1) suspension of liquidation of the entry of any textile
or apparel good exported or produced by the person that is the
subject of a verification referred to in subsection (a)(1)
regarding compliance described in subsection (a)(2)(A), in a
case in which the request for verification was based on a
reasonable suspicion of unlawful activity related to such good;
and
(2) suspension of liquidation of the entry of a textile or
apparel good for which a claim has been made that is the
subject of a verification referred to in subsection (a)(1)
regarding a claim described in subsection (a)(2)(B).
(c) Action When Information Is Insufficient.--If the Secretary of
the Treasury determines that the information obtained within 12 months
after making a request for a verification under subsection (a)(1) is
insufficient to make a determination under subsection (a)(2), the
President may direct the Secretary to take appropriate action described
in subsection (d) until such time as the Secretary receives information
sufficient to make a determination under subsection (a)(2) or until
such earlier date as the President may direct.
(d) Appropriate Action Described.--Appropriate action referred to
in subsection (c) includes--
(1) publication of the name and address of the person that
is the subject of the verification;
(2) denial of preferential tariff treatment under the
Agreement to--
(A) any textile or apparel good exported or
produced by the person that is the subject of a
verification referred to in subsection (a)(1) regarding
compliance described in subsection (a)(2)(A); or
(B) a textile or apparel good for which a claim has
been made that is the subject of a verification
referred to in subsection (a)(1) regarding a claim
described in subsection (a)(2)(B); and
(3) denial of entry into the United States of--
(A) any textile or apparel good exported or
produced by the person that is the subject of a
verification referred to in subsection (a)(1) regarding
compliance described in subsection (a)(2)(A); or
(B) a textile or apparel good for which a claim has
been made that is the subject of a verification
referred to in subsection (a)(1) regarding a claim
described in subsection (a)(2)(B).
SEC. 205. RELIQUIDATION OF ENTRIES.
Subsection (d) of section 520 of the Tariff Act of 1930 (19 U.S.C.
1520(d)) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``or''; and
(B) by striking ``for which'' and inserting ``, or
section 202 of the United States-Oman Free Trade
Agreement Implementation Act for which''; and
(2) in paragraph (3), by inserting ``and information''
after ``documentation''.
SEC. 206. REGULATIONS.
The Secretary of the Treasury shall prescribe such regulations as
may be necessary to carry out--
(1) subsections (a) through (i) of section 202;
(2) the amendment made by section 203; and
(3) proclamations issued under section 202(j).
TITLE III--RELIEF FROM IMPORTS
SEC. 301. DEFINITIONS.
In this title:
(1) Omani article.--The term ``Omani article'' means an
article that--
(A) qualifies as an originating good under section
202(b); or
(B) receives preferential tariff treatment under
paragraphs 8 through 11 of article 3.2 of the
Agreement.
(2) Omani textile or apparel article.--The term ``Omani
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 an Omani article.
(3) Commission.--The term ``Commission'' means the United
States International Trade Commission.
Subtitle A--Relief From Imports Benefiting From the Agreement
SEC. 311. COMMENCING OF ACTION FOR RELIEF.
(a) Filing of Petition.--A petition requesting action under this
subtitle for the purpose of adjusting to the obligations of the United
States under the Agreement may be filed with the Commission by an
entity, including a trade association, firm, certified or recognized
union, or group of workers, that is representative of an industry. The
Commission shall transmit a copy of any petition filed under this
subsection to the United States Trade Representative.
(b) Investigation and Determination.--Upon the filing of a petition
under subsection (a), the Commission, unless subsection (d) applies,
shall promptly initiate an investigation to determine whether, as a
result of the reduction or elimination of a duty provided for under the
Agreement, an Omani article is being imported into the United States in
such increased quantities, in absolute terms or relative to domestic
production, and under such conditions that imports of the Omani article
constitute a substantial cause of serious injury or threat thereof to
the domestic industry producing an article that is like, or directly
competitive with, the imported article.
(c) Applicable Provisions.--The following provisions of section 202
of the Trade Act of 1974 (19 U.S.C. 2252) apply with respect to any
investigation initiated under subsection (b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (i).
(d) Articles Exempt From Investigation.--No investigation may be
initiated under this section with respect to any Omani 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
Omani article under this subtitle.
SEC. 312. COMMISSION ACTION ON PETITION.
(a) Determination.--Not later than 120 days after the date on which
an investigation is initiated under section 311(b) with respect to a
petition, the Commission shall make the determination required under
that section.
(b) Applicable Provisions.--For purposes of this subtitle, the
provisions of paragraphs (1), (2), and (3) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2), and (3)) shall be
applied with respect to determinations and findings made under this
section as if such determinations and findings were made under section
202 of the Trade Act of 1974 (19 U.S.C. 2252).
(c) Additional Finding and Recommendation if Determination
Affirmative.--
(1) In general.--If the determination made by the
Commission under subsection (a) with respect to imports of an
article is affirmative, or if the President may consider a
determination of the Commission to be an affirmative
determination as provided for under paragraph (1) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)), 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--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is
affirmative, any findings and recommendations for import relief
made under subsection (c) and an explanation of the basis for
each recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation
referred to in paragraphs (1) and (2).
(e) Public Notice.--Upon submitting a report to the President under
subsection (d), the Commission shall promptly make public such report
(with the exception of information which the Commission determines to
be confidential) and shall cause a summary thereof to be published in
the Federal Register.
SEC. 313. PROVISION OF RELIEF.
(a) In General.--Not later than the date that is 30 days after the
date on which the President receives the report of the Commission in
which the Commission's determination under section 312(a) is
affirmative, or which contains a determination under section 312(a)
that the President considers to be affirmative under paragraph (1) of
section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the
President, subject to subsection (b), shall provide relief from imports
of the article that is the subject of such determination to the extent
that the President determines necessary to remedy or prevent the injury
found by the Commission and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition.
(b) Exception.--The President is not required to provide import
relief under this section if the President determines that the
provision of the import relief will not provide greater economic and
social benefits than costs.
(c) Nature of Relief.--
(1) In general.--The import relief that the President is
authorized to provide under this section with respect to
imports of an article is as follows:
(A) The suspension of any further reduction
provided for under Annex 2-B of the Agreement in the
duty imposed on such article.
(B) An increase in the rate of duty imposed on such
article to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty
imposed under the HTS on like articles at the
time the import relief is provided; or
(ii) the column 1 general rate of duty
imposed under the HTS on like articles on the
day before the date on which the Agreement
enters into force.
(2) Progressive liberalization.--If the period for which
import relief is provided under this section is greater than 1
year, the President shall provide for the progressive
liberalization of such relief at regular intervals during the
period in which the relief is in effect.
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any import
relief that the President provides under this section may not,
in the aggregate, be in effect for more than 3 years.
(2) Extension.--
(A) In general.--If the initial period for any
import relief provided under this section is less than
3 years, the President, after receiving a determination
from the Commission under subparagraph (B) that is
affirmative, or which the President considers to be
affirmative under paragraph (1) of section 330(d) of
the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), may
extend the effective period of any import relief
provided under this section, subject to the limitation
under paragraph (1), if the President determines that--
(i) the import relief continues to be
necessary to remedy or prevent serious injury
and to facilitate adjustment by the domestic
industry to import competition; and
(ii) there is evidence that the industry is
making a positive adjustment to import
competition.
(B) Action by commission.--
(i) Investigation.--Upon a petition on
behalf of the industry concerned that is filed
with the Commission not earlier than the date
which is 9 months, and not later than the date
which is 6 months, before the date any action
taken under subsection (a) is to terminate, the
Commission shall conduct an investigation to
determine whether action under this section
continues to be necessary to remedy or prevent
serious injury and to facilitate adjustment by
the domestic industry to import competition and
whether there is evidence that the industry is
making a positive adjustment to import
competition.
(ii) Notice and hearing.--The Commission
shall publish notice of the commencement of any
proceeding under this subparagraph in the
Federal Register and shall, within a reasonable
time thereafter, hold a public hearing at which
the Commission shall afford interested parties
and consumers an opportunity to be present, to
present evidence, and to respond to the
presentations of other parties and consumers,
and otherwise to be heard.
(iii) Report.--The Commission shall
transmit to the President a report on its
investigation and determination under this
subparagraph not later than 60 days before the
action under subsection (a) is to terminate,
unless the President specifies a different
date.
(e) Rate After Termination of Import Relief.--When import relief
under this section is terminated with respect to an article, the rate
of duty on that article shall be the rate that would have been in
effect, but for the provision of such relief, on the date on which the
relief terminates.
(f) Articles Exempt From Relief.--No import relief may be provided
under this section on any article that has been subject to import
relief under this subtitle after the date on which the Agreement enters
into force.
SEC. 314. TERMINATION OF RELIEF AUTHORITY.
(a) General Rule.--Subject to subsection (b), no import relief may
be provided under this subtitle after the date that is 10 years after
the date on which the Agreement enters into force.
(b) Presidential Determination.--Import relief may be provided
under this subtitle in the case of an Omani article after the date on
which such relief would, but for this subsection, terminate under
subsection (a), if the President determines that Oman 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-Oman 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, an Omani textile or apparel article is being
imported into the United States in such increased quantities,
in absolute terms or relative to the domestic market for that
article, and under such conditions as to cause serious damage,
or actual threat thereof, to a domestic industry producing an
article that is like, or directly competitive with, the
imported article.
(2) Serious damage.--In making a determination under
paragraph (1), the President--
(A) shall examine the effect of increased imports
on the domestic industry, as reflected in changes in
such relevant economic factors as output, productivity,
utilization of capacity, inventories, market share,
exports, wages, employment, domestic prices, profits,
and investment, none of which is necessarily decisive;
and
(B) shall not consider changes in technology or
consumer preference as factors supporting a
determination of serious damage or actual threat
thereof.
(b) Provision of Relief.--
(1) In general.--If a determination under subsection (a) is
affirmative, the President may provide relief from imports of
the article that is the subject of such determination, as
described in paragraph (2), to the extent that the President
determines necessary to remedy or prevent the serious damage
and to facilitate adjustment by the domestic industry to import
competition.
(2) Nature of relief.--The relief that the President is
authorized to provide under this subsection with respect to
imports of an article is an increase in the rate of duty
imposed on the article to a level that does not exceed the
lesser of--
(A) the column 1 general rate of duty imposed under
the HTS on like articles at the time the import relief
is provided; or
(B) the column 1 general rate of duty imposed under
the HTS on like articles on the day before the date on
which the Agreement enters into force.
SEC. 323. PERIOD OF RELIEF.
(a) In General.--Subject to subsection (b), any import relief that
the President provides under subsection (b) of section 322 may not, in
the aggregate, be in effect for more than 3 years.
(b) Extension.--If the initial period for any import relief
provided under section 322 is less than 3 years, the President may
extend the effective period of any import relief provided under that
section, subject to the limitation set forth in subsection (a), if the
President determines that--
(1) the import relief continues to be necessary to remedy
or prevent serious damage and to facilitate adjustment by the
domestic industry to import competition; and
(2) there is evidence that the industry is making a
positive adjustment to import competition.
SEC. 324. ARTICLES EXEMPT FROM RELIEF.
The President may not provide import relief under this subtitle
with respect to any article if--
(1) the article has been subject to import relief under
this subtitle after the date on which the Agreement enters into
force; or
(2) the article is subject to import relief under chapter 1
of title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.).
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
When import relief under this subtitle is terminated with respect
to an article, the rate of duty on that article shall be the rate that
would have been in effect, but for the provision of such relief, on the
date on which the relief terminates.
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 (iv);
(2) by striking the period at the end of clause (v) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(vi) a party to the United States-Oman
Free Trade Agreement, a product or service of
that country or instrumentality which is
covered under that Agreement for procurement by
the United States.''.
<all>