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HR 5684109th CongressSigned into LawHouse

United States-Oman Free Trade Agreement Implementation Act

Policy Area: Foreign Trade and International Finance
View on Congress.gov
Origin Chamber
House
Last Updated
Dec 5, 2025
Latest Action Date
Sep 26, 2006

Latest Action

Became Public Law No: 109-283.

Official Summary

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.) United States-Oman Free Trade Agreement Implementation Act - Title I: Approval of, and General Provisions Relating to, the Agreement - (Sec. 101) Approves the United States-Oman Free Trade Agreement (Agreement) entered into on January 19, 2006, with the government of Oman, and the statement of administrative action proposed to implement the Agreement, both submitted to Congress on June 26, 2006. Authorizes the entry into force of the Agreement on or after January 1, 2007, if the President determines that the government of Oman has complied with certain provisions of the Agreement. (Sec. 102) Declares as void any provision of the Agreement which is inconsistent with U.S. law. Prohibits the invalidation of any state law, or the application thereof, on the ground of inconsistency with the Agreement, except as determined in a legal proceeding brought by the United States. (Sec. 103) Authorizes the President to proclaim actions and issue regulations to implement the Agreement on or after the date such Agreement enters into force. Requires the issuance of initial regulations for the statement of administrative action to implement the Agreement within one year after the Agreement enters into force. (Sec. 104) Grants the President proclamation authority under the Agreement subject to specified consultation requirements with the appropriate advisory committees established under the Trade Act of 1974 and the U.S. International Trade Commission (ITC). Requires the President to submit a report to the House Ways and Means Committee and the Senate Finance Committee on any action proposed to be proclaimed. Requires the expiration of a 60-day period before any action proposed to be proclaimed takes effect (layover). (Sec. 105) Authorizes the President to establish or designate within the Department of Commerce an office to provide administrative assistance to dispute settlement panels established under the Agreement. Authorizes appropriations. (Sec. 106) Authorizes the United States to resolve any claim against it covered by the Agreement, pursuant to the Investor-State Dispute Settlement procedures set forth in the Agreement. Title II: Customs Provisions - (Sec. 201) Authorizes the President to: (1) proclaim tariff modifications necessary or appropriate to carry out the Agreement; (2) proclaim tariff modifications, subject to consultation and layover, necessary or appropriate to maintain concessions granted to Oman by the Agreement; and (3) substitute an ad valorem rate for goods under the Agreement for which the base rate is a specific or compound rate of duty, for purposes of carrying out tariff modifications. Requires the President to terminate the designation of Oman as a beneficiary developing country for purposes of the Generalized System of Preferences program under the Trade Act of 1974 on the date the Agreement enters into force. (Sec. 202) Prescribes rules of origin with respect to the reduction and elimination of duties imposed by the United States and Oman on goods imported directly from Oman or the United States into the other country's territory. Specifies content requirements allowing certain textile and apparel goods to be considered originating goods. Authorizes the President to proclaim, as part of the Harmonized Tariff Schedule (HTS) of the United States, certain provisions in the Agreement (including modifications) and any additional subordinate category that is necessary to carry out this title, consistent with the Agreement. (Sec. 203) Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to prohibit the charging of a fee for certain customs services for goods imported from, and originating in, Oman. Prohibits any service exempted from such fees from being funded with money from the Customs User Fee Account. (Sec. 204) Authorizes the President to direct the Secretary of the Treasury, pending the verification process under the Agreement to confirm the authenticity and claims of origin of Omani textiles and apparel goods, to take certain actions, including: (1) suspension of liquidation of the entry of any Omani textile or apparel good linked to unlawful activity; (2) publication of the name and address of any person subject to verification; (3) denial of preferential tariff treatment for such textiles or goods; and (4) denial of entry into the United States of such textiles or goods. (Sec. 205) Amends the Tariff Act of 1930 to permit the refund of excess duties (including any merchandise processing fees) for Omani goods qualifying under the rules of origin of the Agreement. (Sec. 206) Requires the Secretary of the Treasury to prescribe regulations to carry out provisions of this title relating to rules of origin, customs user fees, and presidential proclamation authority under the HTS. Title III: Relief From Imports - Subtitle A: Relief From Imports Benefiting From the Agreement - (Sec. 311) Authorizes an entity (including a trade association, firm, certified or recognized union, or group of workers) to petition the ITC for an adjustment to U.S. obligations (import relief) under the Agreement. Requires the ITC, upon the filing of a petition, to: (1) transmit a copy of the petition to the U.S. Trade Representative; (2) investigate whether an Omani article is being imported into the United States in such increased quantities that it constitutes a substantial cause of serious injury or threat to a domestic industry producing a similar article; (3) make a determination on a petition within 120 days after the start of an investigation; (4) report to the President on its determination with a recommendation on the amount of import relief necessary to remedy or prevent an injury to a domestic industry and to help the affected domestic industry to make a positive adjustment to import competition; and (5) make its report public and publish a summary in the Federal Register. (Sec. 313) Requires the President, not later than 30 days after receiving an ITC report affirming serious injury to a domestic industry, to provide import relief as recommended by the ITC. Exempts the President from providing import relief if the President determines that the cost of providing such relief outweighs its economic and social benefits. Sets forth the types of import relief which the President may grant, including suspension of any further reduction in the duty imposed on an imported article and an increase in the duty on such article. Limits the aggregate period during which import relief may be granted to three years. (Sec. 314) Prohibits any import relief under this title 10 years after the Agreement enters into force, unless the President determines that the government of Oman has consented to such relief. (Sec. 315) Authorizes the President to compensate Oman for reductions or eliminations of duties under the Agreement. (Sec. 316) Amends the Trade Act of 1974 to apply to ITC investigations conducted under this Act the procedural requirements of the Tariff Act of 1930 concerning release of confidential business information. Subtitle B: Textile and Apparel Safeguard Measures - (Sec. 321) Authorizes any interested party to petition the President to adjust U.S. obligations under the Agreement to reflect serious damage or actual threat to a domestic industry from the reduction or elimination of a duty on an Omani textile or apparel article (Omani article) which is in competition with articles produced by a domestic industry (safeguard relief). (Sec. 322) Authorizes the President, if an affirmative serious damage determination is made, to provide safeguard relief to remedy or prevent the damage and to facilitate adjustment by the domestic industry to import competition, including to increase the rate of duty imposed on the article. (Sec. 323) Limits the aggregate period during which safeguard relief may be granted to three years. (Sec. 324) Authorizes the President to exempt certain articles from safeguard relief. (Sec. 326) Terminates the authority to provide safeguard relief 10 years after the date on which certain duties are eliminated under the Agreement. (Sec. 327) Authorizes the President to compensate Oman if safeguard relief is ordered under this title. (Sec. 328) Restricts the authority of the President to release confidential business information provided in a safeguard review proceeding. Title IV: Procurement - (Sec. 401) Amends the Trade Agreements Act of 1979 to make products or services of any foreign country or instrumentality that is a party to the Agreement eligible for U.S. government procurement.

GovScope Watchdog™

AI Government Intelligence™
Executive Summary

The United States-Oman Free Trade Agreement Implementation Act approves and implements the trade agreement between the U.S. and Oman signed in 2006. It authorizes the President to enforce tariff modifications, customs provisions, and dispute settlement mechanisms consistent with the agreement. The Act includes provisions for import relief and safeguard measures to protect domestic industries from serious injury caused by increased imports from Oman. It also extends procurement eligibility to Omani products and services under U.S. government contracts. The Act sets rules for tariff adjustments, customs fees, and origin verification, and establishes procedures for dispute resolution and administrative support related to the agreement.

Bottom Line

This law implements the U.S.-Oman Free Trade Agreement, facilitating trade liberalization while including mechanisms to protect domestic industries and ensure compliance with the agreement's terms.

Policy Risk Level
🟡 Medium
Neutral Risk Assessment
Key Points
  • Approves the U.S.-Oman Free Trade Agreement and authorizes its entry into force contingent on Oman's compliance.
  • Grants the President authority to modify tariffs, enforce customs provisions, and manage dispute settlements under the agreement.
  • Establishes procedures for import relief and safeguard measures to address serious injury to U.S. industries from increased imports.
  • Requires termination of Oman's designation as a beneficiary developing country under the Generalized System of Preferences upon agreement entry into force.
  • Extends eligibility for U.S. government procurement to products and services from Oman.
Who Benefits?

['U.S. exporters and importers engaged in trade with Oman', 'Omani exporters and businesses participating in trade with the U.S.', 'Domestic U.S. industries potentially affected by imports from Oman', 'U.S. government agencies involved in trade regulation, customs enforcement, and procurement', 'Trade associations, unions, and workers eligible to petition for import relief']

Potential Concerns

['Implementation complexity related to verifying origin of goods and enforcing customs provisions', 'Costs associated with establishing administrative offices and managing dispute settlement panels', 'Presidential authority to proclaim tariff modifications and provide import relief may require careful oversight', 'Potential trade-offs in balancing trade liberalization with protection of domestic industries', 'Limitations on import relief and safeguard measures, including time restrictions and conditions for relief']

Political Context

The bill was enacted as Public Law No: 109-283 following its introduction in the House during the 109th Congress. It reflects the U.S. government's policy to expand free trade agreements with partner countries, in this case Oman, to promote trade liberalization while including mechanisms to protect domestic industries and ensure compliance with trade commitments. The Act aligns with existing trade laws such as the Trade Act of 1974 and the Tariff Act of 1930, incorporating consultation and reporting requirements to Congress.

Hidden Impact Review

High concern review — 3 hidden impact flags detected

GovScope reviewed 3 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.

High Concern
Detected Flags
Indirect Effects

["Termination of Oman's beneficiary developing country status under the Generalized System of Preferences may affect trade preferences with other countries.", 'Extension of procurement eligibility to Omani products and services could increase competition in U.S. government contracting.', 'Dispute settlement mechanisms and administrative offices may increase federal administrative workload and require resource allocation.', 'Import relief and safeguard provisions may influence domestic industry adjustments and labor market conditions in affected sectors.']

GovScope Watchdog Notes

The Act includes multiple provisions requiring consultation with advisory committees and reporting to congressional committees, which supports transparency and oversight. The broad presidential authority to modify tariffs and implement regulations is subject to layover periods and reporting requirements, providing some checks on executive action. However, the establishment of administrative offices and dispute settlement panels involves appropriations and administrative oversight considerations. The time limits on import relief and safeguard measures are clearly defined, which helps limit indefinite trade restrictions. No full text of the bill was provided, limiting detailed analysis of specific enforcement language.

Passage Likelihood: HighConfidence: 95%Model: gpt-4.1-mini

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