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SUBPART 225.4--TRADE AGREEMENTS

(Revised April 13, 2000)

 

 



 225.401 Exceptions.
 225.401-70 Products subject to trade agreement acts.
 225.402 General.
 225.403 Trade Agreements Act.
 225.408 Procedures.


225.401  Exceptions.

 

      (b)(i)  If a department or agency considers an individual acquisition of a product to be indispensable for national security or national defense purposes and appropriate for exclusion from the provisions of FAR Subpart 25.4, it may submit a request with supporting rationale to the Director of Defense Procurement and Acquisition Policy (USD(AT&L)DP).

 

              (ii)  The following national security/national defense exceptions do not require approval by USD(AT&L)DP:

 

                    (A)  Where purchase from foreign sources is restricted by the DoD annual appropriations or authorization acts (see Subpart 225.70) or by the establishment of required sources of supplies and services under FAR Part 8.

 

                    (B)  Where competition from foreign sources is restricted under the authority of FAR 6.302-3(a)(2)(i).  Provide USD(AT&L)DP a copy of the justification for restricting competition (see FAR 6.303-1(d)).

 

                    (C)  Where competition from foreign sources is restricted under Subpart 225.71.

 

225.401-70  Products subject to trade agreement acts.

Foreign end products subject to the Trade Agreements Act and NAFTA are those in the following Federal supply groups (FSG).  If a product is not in one of the listed groups, the Trade Agreements Act and NAFTA do not apply.  The definition of Caribbean Basin country end products in FAR 25.003 excludes those end products that are not eligible for duty-free treatment under 19 U.S.C. 2703(b).  However, 225.003 expands the definition of Caribbean Basin country end products to include petroleum and any product derived from petroleum.  The list of products has been annotated to indicate those products that are eligible for designated and NAFTA countries, but are not presently eligible for Caribbean Basin countries.

 

FSG

Category/Description

 

 

22

Railway equipment

23

Motor vehicles, trailers, and cycles (except 2350 and buses under 2310)

24

Tractors

25

Vehicular equipment components

26

Tires and tubes

29

Engine accessories

30

Mechanical power transmission equipment

32

Woodworking machinery and equipment

34

Metalworking machinery

35

Service and trade equipment

36

Special industry machinery (except 3690)

37

Agricultural machinery and equipment

38

Construction, mining, excavating, and highway maintenance equipment

39

Materials handling equipment

40

Rope, cable, chain and fittings

41

Refrigeration and air conditioning equipment

42

Fire fighting, rescue and safety equipment

43

Pumps and compressors

44

Furnace, steam plant and drying equipment (except 4470)

45

Plumbing, heating, and sanitation equipment

46

Water purification and sewage treatment equipment

47

Piping, tubing, hose, and fitting

48

Valves

49

Maintenance and repair shop equipment (except 4920-4927, 4931-4935, 4960)

53

Hardware and abrasives

54

Prefabricated structures and scaffolding

55

Lumber, millwork, plywood, and veneer

56

Construction and building materials

61

Electric wire, and power and distribution equipment

62

Lighting fixtures and lamps

63

Alarm and signal systems

65

Medical, dental, and veterinary equipment and supplies

66

Instruments and laboratory equipment (except aircraft clocks under 6645) - See FAR 25.003 exclusion of certain watches and watch parts for certain Caribbean Basin countries

67

Photographic equipment

68

Chemicals and chemical products

69

Training aids and devices

70

General purpose ADPE, software, supplies, and support equipment

71

Furniture

72

Household and commercial furnishings and appliances

73

Food preparation and serving equipment

74

Office machines, visible record equipment and ADP equipment

75

Office supplies and devices

76

Books, maps, and other publications

77

Musical instruments, phonographs, and home type radios

78

Recreational and athletic equipment

79

Cleaning equipment and supplies

80

Brushes, paints, sealers, and adhesives

81

Containers, packaging and packing supplies (except 8140)

84

Luggage (only 8460) - See FAR 25.003 for exclusion of luggage for Caribbean Basin countries

85

Toiletries

87

Agricultural supplies

88

Live animals

91

Fuels, oils, and waxes

93

Nonmetallic fabricated materials

94

Nonmetallic crude materials

96

Ores, minerals, and their primary products

99

Miscellaneous

 


 

225.402  General.

 

      (1)  To estimate the value of the acquisition, use the total estimated value of end products subject to trade agreement acts (see 225.401-70).

 

      (2)  See Subpart 225.5 for evaluation of eligible products and U.S. made end products, except when acquiring information technology end products in Federal Supply Group 70 or 74 that are subject to the Trade Agreements Act.

 

225.403  Trade Agreements Act.

      (c)(i)  Except as provided in paragraphs (c)(ii) and (iii) of this section, do not purchase nondesignated country end products subject to the Trade Agreements Act unless they are NAFTA, Caribbean Basin, or qualifying country end products (see 225.872-1).

 

              (ii)  The prohibition in paragraph (c)(i) of this section does not apply when the contracting officer determines that offers of U.S. made, qualifying country, or eligible products from responsive, responsible offerors are either¾

 

                    (A)  Not received; or

 

                    (B)  Insufficient to fill the Government's requirements.  In these cases, accept all responsive, responsible offers of U.S. made, qualifying country, and eligible products before accepting any other offers.

 

              (iii)  National interest waivers under section 302(b)(2) of the Trade Agreements Act are approved on a case-by-case basis.  Except as delegated in paragraphs (c)(iii)(A) and (B) of this section, a request for a national interest waiver shall include supporting rationale and be submitted under department/agency procedures to the Director of Defense Procurement.

 

                    (A)  The head of the contracting activity may approve a national interest waiver for a purchase by an overseas purchasing activity of products critical to the support of U.S. forces stationed abroad.  The waiver must be supported by a written statement from the requiring activity stating that the requirement is critical for the support of U.S. forces stationed abroad.

 

                    (B)  The Commander, Defense Energy Support Center, may approve national interest waivers for purchases of fuel for use by U.S. forces overseas.

 

225.408  Procedures.

 

      (a)(4)  The requirements of FAR 25.408(a)(4) do not apply to offshore acquisitions or to Defense Energy Support Center post, camp, or station overseas requirements.

 


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