Far Clause 52.225-5 Trade Agreements

Before we get into the case, a bit of background on the Trade Agreements Act (TAA). In general, where the TAA applies to a U.S. government contract, the contractor may supply a product from another country if that country has a free trade agreement with the United States. In other words, the US administration is not going to discriminate against the products of its free trade partners when it buys supplies in certain circumstances (e.g. B the contract is above the threshold for application of the TAA). As prescribed in point 25.1101(c)(1), insert the following clause: the Court also found that the FAR did not censor Acretis` entecavir tablets. Under far`s TAA clause, FAR 52.225-5, a contractor may only supply “final products manufactured or designated in the United States.” And “finished product made in the United States” is defined as “an item that is extracted, produced or manufactured in the United States or that is extensively processed in the United States.” The Court found that the origin of the components was not relevant to the intended manufacture of a product. As Acretis manufactured the tablets in New Jersey, the product was a “finished product made in the United States” in compliance with the TAA. According to the court, “[a] product does not need to be entirely manufactured in the United States or substantially converted to be a finished product made in the United States.” Instead, “such products can be… “products” in the United States from components manufactured abroad. (b) supply of finished products.

The Treaty Representative noted that the WTO GPA and free trade agreements apply to this acquisition. Unless otherwise specified, these trade agreements apply to all elements of the Annex. Under this Contract, Contractor shall only supply finished products manufactured or designated in the United States, unless the Contractor has indicated in its offer the supply of other finished products in the Trade Agreements Certificate provision. So what is the most important discovery? If the TAA applies to your contract, you can supply a finished product made in the United States if it is only manufactured in the United States, even if the components are manufactured abroad. The product does not need to be entirely manufactured in the United States and it does not need to be significantly processed in the United States. In other words, according to the TAA clause of the FAR and for the purposes of a finished product manufactured in the United States, manufacturing does not require substantial transformation. The following list was extracted from the Federal Acquisition Regulation (FAR) and was last updated in November 2016 with the addition of Moldova and Ukraine and is current as of June 2020. To access this FAR clause directly, click here: Federal Acquisition Regulation (FAR) 52.225-5, Trade Agreements. But not all countries have a free trade agreement with the United States, including, very importantly, countries like China and India. Therefore, if a contractor offers the U.S.

government a good manufactured in India, for example, that good would not comply with the TAA and the contractor would not be able to deliver that good for public procurement. . (A) For this reason, the following items are not finished products of the Caribbean Basin: (2) In the case of an article composed in whole or in part of materials from another country, it has been processed, in a free trade agreement, essentially into a new and other article, the name, character or use of which is different from that of the object(s): of which it has been transformed. The term refers to a product offered for sale under a delivery contract, but, for the purpose of calculating the value of the final product, it includes the services responsible for the item (with the exception of transport services), provided that the value of such ancillary services does not exceed the value of the item itself. . . .

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