The second of these statutes is the TAA. The TAA should encourage foreign countries to enter into reciprocal trade agreements on public procurement. These agreements prohibit foreign products from discriminating against U.S.-made products and prohibit the United States from discriminating against foreign products. Under the statute, countries that have such agreements and do not discriminate against U.S. educational products may, on non-discriminatory terms, be competing with the U.S. government. At the same time, products from countries that do not have such trade agreements are excluded from public procurement. Countries that have concluded such agreements are designated as parties to the World Trade Organization (WTO) agreement. … The Trade Agreements Act of 1979 (TAA), Pub.L. 96-39, 93 Stat. 144, adopted on July 26, 1979, codified on July 19. C ch.
13 (19 U.S.C. It outlined the modalities for the implementation of the Tokyo round of the General Agreement on Tariffs and Trade. Final product from the United States: an item that is extracted, produced or produced in the United States or that, in the United States, is essentially transformed into a new and other commercial article, with a name, character or use different from that of the article or article from which it was processed. 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. Thus, the BAA takes into account both the components, materials and deliveries of a final product (unless it is a COTS item) and the manufacturing location of the final product and has an integrated exception that is applied by a price premium analysis. A foreign-made product containing foreign components must pass the “essential transformation” test described in the Federal Acquisition Regulation (FAR) 25.001 (c) (2) to be considered compliant. This test determines whether the country in which the product has undergone a “substantial transformation” is on the list of countries that comply with the AAT.
PwC`s Global Economic Crime and Fraud Survey examines the fraud environment and provides insights and approaches to help your business. The first of these statutes, the Buy American Act of 1933 (“BAA”), provides, in a relevant part, that the Trade Agreements Act (TAA) is a federal law applicable to all Federal Supply Schedule (FSS) contracts; it prohibits federal authorities from purchasing products made in certain countries. The rules that determine whether the BAA or AAA apply to a given procurement are quite confusing and the analysis required to determine AFA compliance is very different from the AAT compliance analysis, and both are not particularly intuitive. The BAA was designed to deter foreign products from competing with U.S. products on an equal footing.