A List of TAA Designated Countries

A List of TAA Designated Countries

What is TAA Compliance?

(Updated: June 2019 )

How do you know if you are TAA Compliant? TAA refers to the Trade Agreement Act. Under 19 USC 2501 Trade Agreements Act government agencies may only purchase US-made or designated country end products or US or designated country services.

Are Your Products on GSA Schedule TAA Compliant?

Because the estimated value of a GSA schedule exceeds $191,000, all GSA product sales must be Trade Agreement Act (TAA) compliant, as per FAR 52.225-5. In order to be TAA compliant, Customs and Border Protection (CBP) considers either that 50 percent of the cost of manufacture or location where product is “substantially transformed” is from/within a TAA Designated Country.

If you offer services through your GSA Schedule, the TAA may also apply to you; but that is not always the case. The issue of how the TAA applies to services is a complex one.

How to Determine if products were “Substantially Transformed?”

If a product is completely manufactured in the United States or in a TAA designated country, you are TAA compliant. Software country of origin is determined in the country where the software was compiled.

Sometimes a product requires assembly in several countries or has components from various countries; the TAA compliance becomes murkier and a determination of where the product is substantially transformed is required. If a product is manufactured in various countries, the final product must be “substantially transformed” in a designated country. Substantial transformation would be transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original article. (refer to FAR 25.001(c))

Responsibility falls wholly on the government contractor, to determine if a product has been substantially transformed. More information on International Trade: Rules of Origin available here: http://www.fas.org/sgp/crs/row/RL34524.pdf.

Who Makes the Determination of TAA Compliance?

The U.S. Customs and Border Protection states that “the responsibility for making a determination of substantial transformation rests solely with the contractor. The contractor can go to The Office of Regulations and Rulings within U.S. Customs and Border Protection, which is the Federal agency responsible for making substantial transformation determinations or giving their opinions.”

How to Keep Your GSA Schedule TAA Compliant?

First you must have a system in place that periodically verifies that the products being offered under your GSA schedule are TAA compliant. Furthermore, if you are not a manufacturer, we recommend that you verify countries of origin quarterly or, at minimum, with catalog updates from your suppliers to verify that products are still being manufactured or “substantially transformed” in a TAA designated country.

If your manufacturing source changes during the term of your contract and items are now manufactured in a non-designated country, your products will consequently be out of compliance. You must immediately take action to remove the non-TAA compliant items from your GSA Schedule. A GSA consultant from the Coley team can assist with getting this processed.

TAA Designated Countries are regularly updated and can be accessed from here:  FAR-Clause-52.225-5. Also, as noted on our table below, if a product is manufactured in China, Indonesia, Malaysia, or Sri Lanka, you may be permitted to sell them, but only to the VA with a required waiver. Territories belonging to the United States, are TAA compliant therefore, American Samoa, Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands are compliant countries.

Current List of TAA Compliant Countries Include:

 

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Afghanistan Denmark Latvia Sao Tome and Principe
Angola Djibouti Lesotho Senegal
Antigua and Barbuda Dominica Liberia Sierra Leone
Armenia Dominican Republic Liechtenstein Singapore
Aruba El Salvador Lithuania Sint Eustatius
Australia Equatorial Guinea Luxembourg Sint Maarten
Austria Eritrea Madagascar Slovak Republic
Bahamas Estonia Malawi Slovenia
Bahrain Ethiopia Mali Soloman Islands
Bangladesh Finland Malta Somalia
Barbados France Mauritania South Sudan
Belgium Gambia Mexico Spain
Belize Germany Moldova* Saint Kitts and Nevis
Benin Greece Montenegro Saint Lucia
Bhutan Grenada Montserrat Saint Vincent and the Grenadines
Bonaire Grenadines Morocco Sweden
British Virgin Islands Guatemala Mozambique Switzerland
Bulgaria Guinea Nepal Taiwan
Burkina Faso Guinea Bissau Netherlands Tanzania U.R.
Burundi Guyana New Zealand Timor- Leste (East Timor)
Cambodia Haiti Nicaragua Togo
Canada Honduras Niger Trinidad & Tobago
Central African Republic Hong Kong Norway Tuvalu
Chad Hungary Oman Uganda
Chile Iceland Panama Ukraine*
Colombia Ireland Peru United Kingdom
Comoros Israel Poland **United States of America
Democratic Republic of the Congo Italy Portugal Vanuatu
Costa Rica Jamaica Romania Yemen
Croatia Japan Rwanda Zambia
Curacao Kiribati Saba
Cyprus Korea, Republic of (South)
Czech Republic Laos

**Includes all US Territories: Puerto Rico, US. Virgin Islands, Guam, American Samoa and Northern Mariana Islands.

 

Non-TAA Compliant Countries List Below:

*FAR 52.225-5 (Reviewed: June 2019); Federal Acquisition Regulation , Trade Agreements.

 

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Albania Georgia Marshall Islands Seychelles
Algeria Ghana Mauritius Sri Lanka
Argentina India Micronesia Sudan
Azerbaijan Indonesia Monaco South Africa
Belarus Iran Mongolia Suriname
Bolivia Iraq Myanmar Swaziland
Bosnia and Herzegovina Jordan Namibia Syria
Botswana Kazakhstan Nauru Tajikistan
Brazil Kenya Nigeria Thailand
Brunei Darussalam Korea, North Pakistan Tonga
Cameroon Kosovo Palau Tunisia
Cape Verde Kuwait Papua New Guinea Turkey
China Kyrgyzstan Paraguay Turkmenistan
Cote d’Ivoire Lebanon Philippines United Arab Emirates
Cuba Libya Qatar Uruguay
Ecuador Macao Republic of Congo Uzbekistan
Egypt Macedonia Russia Venezuela
Fiji Malaysia Saudi Arabia Vietnam
Gabon Maldives Serbia Zimbabwe

 

VA only – Waiver Required

The VA is in charge of the healthcare related Federal Supply Schedules (FSS.)There may be some instances where certain healthcare related products needed to save lives are only manufactured in non-TAA compliance countries including China. You must obtain a TAA Waiver from a Contracting Officer before you can add any non-TAA compliant products to your Schedule. The letter must state that the product is necessary and that they are providing a waiver of the TAA for a particular contract or task order.

The VA is currently processing Non-Availability Waiver Determinations under the VA’s 65 I B Pharmaceutical and Drugs Schedule program.  Furthermore, these waiver requests can only be processed for products falling under the scope of Special Item Number 42-2A Single source drug, innovator multiple source drug, and any biological product identified under Section 600.3 of Title 21, CFR.

 

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China Indonesia Malaysia
Sri Lanka Thailand

Sources:
World Trade Organization
GSA Vendor Support
VA – Office of Acquisition and Logistics  
FAR 25. 4 Acquisition.gov  
FAR 25.225-5 Acquisition.gov
Harmonized Tariff Schedule of the United States

 

*FAR Case 2016-009; New Designated Countries Effective as of October 31, 2016 for Moldova and Ukraine

52.225-5 Trade Agreements.

As prescribed in 25.1101(c)(1), insert the following clause:

Trade Agreements (Feb 2016)

(a) Definitions. As used in this clause—

“Caribbean Basin country end product”—

(1) Means an article that—

(i)    (A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or

(B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and

(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).

(A) For this reason, the following articles are not Caribbean Basin country end products:

(1) Tuna, prepared or preserved in any manner in airtight containers;

(2) Petroleum, or any product derived from petroleum;

(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam); and

(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles;

(B) Access to the HTSUS to determine duty-free status of articles of these types is available at http://www.usitc.gov/tata/hts/. In particular, see the following:

(1) General Note 3(c), Products Eligible for Special Tariff treatment.

(2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States-Caribbean Basin Trade Partnership Act of 2000.

(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).

(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and

(2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

“Designated country” means any of the following countries:

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)”), or United Kingdom);

(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);

(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or

(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).

“Designated country end product” means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product.

“End product” means those articles, materials, and supplies to be acquired under the contract for public use.

“Free Trade Agreement country end product” means an article that—

(1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in an FTA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

“Least developed country end product” means an article that—

(1) Is wholly the growth, product, or manufacture of a least developed country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed.

“WTO GPA country end product” means an article that—

(1) Is wholly the growth, product, or manufacture of a WTO GPA country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a WTO GPA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services, (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

(b) Delivery of end products. The Contracting Officer has determined that the WTO GPA and FTAs apply to this acquisition. Unless otherwise specified, these trade agreements apply to all items in the Schedule. The Contractor shall deliver under this contract only U.S.-made or designated country end products except to the extent that, in its offer, it specified delivery of other end products in the provision entitled “Trade Agreements Certificate.”

(End of clause)

Register For the New FAS Sales Reporting System

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GSA’s Sales Reporting System Open to All

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We’re pleased to announce that FAS SRP is now available for registrations.  If you are an active 72a user, this new sales reporting platform is now open for registrations.

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Prepare For the New FAS Sales Reporting System

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72A to be Terminated This Year

(May 20, 2019 Update:  Register For the New FAS Sales Reporting System)

As many GSA Schedule contractors are aware by now, GSA will be retiring the 72a Sales Reporting System and will require current users to make a switch to the new FAS Sales Reporting Portal (SRP).  72a is currently being described by GSA as a “legacy” system and will be terminated later this year.

You may have received correspondence from GSA earlier this year about the upcoming transition, however it did not specify the most important questions: when exactly will the transfer occur, how will this be done, and who will have access?

As of yesterday, many contractors are reporting about very specific instruction received regarding the
transition.  All questions have been answered and many concerns have been alleviated.

If you are currently using 72a as the platform to report sales, it is likely this April will be the last time you will be use this legacy system.  For this reporting quarter continue using your standard process: gather your sales by Special Item Numbers awarded against your contract and report via 72a as you normally would.  If you have generated any IFF (Industrial Funding Fee), continue to process payment via 72a as well.  Finally, say farewell to 72a as this would be the last time your going to be using this system.

Mark your calendars!  Sometime in May of this year, you will be able to set up your new FAS SRP
account.  Authorized Negotiators, Contract Administrators, and the listed IFF Representative on your contract will all be able to register.  Be advised that
this system will have implemented GSA’s improved security enhancements
and will not require the use of digital certificates,
however will still be used when submitting modifications and offers to GSA.

After the FAS SRP has been properly set up, your next sales report and IFF remittance will be completed within the FAS SRP for the APR-JUN 2019 quarter.  Sometime after, your historical records will also be migrated from legacy to SRP.

Don’t wait until the next SRP update from GSA!  There are actions that you can do now to help ensure a successful transition to the new sales portal.  We strongly suggest that you review your contracts’ listed points of contact and ensure that all contacts have valid contact information.  If something needs to be adjusted, or new points of contact need to be added, contact your Contracting Officer and submit your modifications now!

As always, we will strive to keep you up to date with the latest updates from GSA.  Please contact us if there’s anything that we can do to help via email or call us directly at 210-402-6766.

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