The Trade Agreement Act (TAA) gives the President the authority to waive the Buy American Act and other discriminatory provisions for certain countries that have trade agreements with the U.S. For list of designated countries, consult FAR 25.400 If the TAA applies:
The Buy American Act is waived, and The procurement of products from non-designated entities is prohibited.
The TAA applies to acquisitions at or above purchase thresholds that range from a low of $25,000 for products and services originating from Canada to a high of $194,000 for products and/or services originating from a World Trade Organization member country.
The TAA always applies to GSA Schedule contracts and to most Indefinite Delivery, Indefinite Quanity (IDIQ) type contracts.
An article is determined to be a product of a designated country only if:
1. It is wholly a product of that country (i.e., all components of that product are assembled in a designated country)
2. The product has been substantially transformed in a designated country Substantially transformed occurs when an article emerges from processing as a new and different article of commerce that possesses a new name, character, or use.
Companies can contact a Customs and Border Protection Trade Program point of Contact for assistance with making country of origin determinations at https://www.cbp.gov/trade/programs-administration/contacts.
Most rulings on country of origin determinations are based on federal court decisions. Past court cases that could be helpful in making a determination can be found at Customs Rulings Online Search System (CROSS). http://rulings.cbp.gov
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