Trade Agreements Act Far 52.225 5

December 18th, 2020

Trade Agreements Act Far 52.225 5

b) supply of finished products. The contract agent found that the WTO ACCORD and free trade AGREEMENTs apply to this acquisition. Unless otherwise stated, these trade agreements apply to all items in the calendar. Under this contract, the supplier only supplies finished products manufactured or designated in the United States, unless its offer indicates the delivery of other finished products in the “commercial contract certificate” provision. Before entering the case, a little background on the Trade Agreements Act (TAA). If the TAA applies to a U.S. government contract, the contractor can supply a product from a foreign country if that country has a free trade agreement with the United States. In other words, the U.S. government will not discriminate 20/10 on the products of its free trade partners when it buys supplies in certain circumstances (for example. B the contract is above the TAA application threshold).

But not all countries have a free trade agreement with the United States, including, most importantly, countries like China and India. Therefore, if a business supplier offers the U.S. government a commodity manufactured in India, for example, that property would not be in compliance with the TAA and the contractor would not be able to supply it to public procurement. The TAA prohibits the government from purchasing finished products from certain non-designated countries (for example. B China, India), but allows the president to waive national procurement requirements, including the BAA, so that the government can purchase products from other “designated countries.” Designated countries are those that have trade agreements with the United States that require their products to be treated in the same way as domestic U.S. products. The thresholds for the application of the TAA vary according to trade agreements. The most widespread trade agreement is the World Trade Organization`s Agreement on Public Procurement (WTO GPA). The current thresholds for the WTO GPA are $182,000 for goods and services contracts and $7,008,000 for work contracts. The list below was extracted from the Federal Acquisition Regulation (FAR) and was last updated in November 2016 with the inclusion of Moldova and Ukraine and is up to date from June 2020.

To access this FAR clause directly, please click here: Federal Acquisition Regulation (FAR) 52.225-5, Trade Agreements. The TAA waives the Buy American Act to allow the government to purchase products made in certain countries with which the United States has friendly trade relations. THE FAR clauses transposing the TAA (FAR 52.225-5 and 52.225-6) apply to calls and contracts valued at or above USD 182,000. Under these clauses, a contractor may offer “end-of-country products manufactured or designed in the United States” regardless of buy-american restrictions. A final product “u.S.-made” is defined in FAR 52.225-5 as “an item extracted, manufactured or manufactured in the United States or that is essentially processed in the United States into a new and other commercial item, with a name, character or use different from that of the article or article that transformed it.” The government appealed against the COFC`s decision to the Federal Circuit, which was confirmed. The Federal Circuit found that it had an error based on CBP`s determination, but that it had to reconcile its own determination of the country of origin of the product with the requirements of the AAT.

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