Trade Sanction Avoidance Act of 2006 - Amends the American Jobs Creation Act of 2004 to repeal provisions allowing: (1) a phase in of the repeal of the tax exclusion for extraterritorial income in 2005 and 2006; and (2) an exemption from such repeal for binding contracts in effect on September 17, 2003.
Amends the FSC Repeal and Extraterritorial Income Exclusion Act of 2000 to repeal the exemption for certain existing foreign sales corporations from the repeal of tax rules relating to such corporations.