FAR 52.225-5 lists all «designated countries» for TAA purposes. Among the countries that have signed the WTO ACCORD, have a free trade agreement with the United States, or have been identified as «least developed countries» or «Caribbean basin countries.» If it is an acquisition of the Ministry of Defence, the list of designated countries is even longer, as it also includes those that have been identified as «qualifying countries». The Trade Agreements Act (19 U.S.C 2501-2515), including the World Trade Organization Agreement on Public Procurement and various free trade agreements. b. 52.225-4, Buy American-Free Trade Agreements -Israeli Trade Act. This provision requires a separate list of eligible foreign products under a trade agreement and a list of all other foreign end products. The Trade Agreements Act (TAA) was passed in 1979 to approve and implement various trade agreements negotiated between the United States and other countries to promote fair and open international trade. TAA-compliant products can be assembled from parts purchased in these partner countries to meet GSA`s purchasing requirements. As a general rule, the TAA applies in three circumstances: (1) Purchases are valued at more than USD 182,000 for products/services or more than USD 7,008,000 for construction; 2) includes, upon purchase, the products or building materials listed in the trade agreement in question; and (3) None of the other exceptions in trade agreements apply (for example.
B contracting is intended for small businesses or is made as a single purchase). 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. Sub-chapters VIII and X of Chapter 98 of the Harmonized U.S. Tariff Nomenclature (19 U.S.C 1202). Buy American status (41 U.S.C Chapter 83 and Executive Order 10582).
a. 52.225-2, U.S. Purchase Certificate. This provision requires the supplier to determine, in its proposal, deliveries that do not meet the definition of the national final product. Generally speaking, the AAA applies to U.S. government acquisitions above a certain dollar threshold, typically $193,000 for the purchase of supplies or services, although some individual free trade agreements (. B, for example, Canada, Mexico, Chile and Australia) have lower thresholds. The TAA provides that the U.S. government can only purchase end-of-country products manufactured or designated by the United States. The list of designated countries is available at FAR 25.003.
The TAA does not use the 50% cost test of components such as the BAA. Instead, the TAA uses another original test called the «essential transformation test.» Determining whether a substantial transformation has been made for taa purposes is not based primarily on the value or percentage of the U.S. salary (or designated country) (components), but on whether the product has been given a different character or other use because of the process it has undergone in the United States (or in a given country). Similar conditions apply to airport projects that receive funding from the Federal Aviation Administration, as approved by the Airport and Airways Facilities Improvement Act. Such projects require that all steel and industrial products have a U.S. content of 60% and that final assembly take place in the United States. Look for THE BAA and TAA Quick View symbols to determine which criteria each product meets.