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SUBPART 225.4--TRADE AGREEMENTS

(Revised December 30, 2015)

 

 



 225.401 Exceptions.
 225.401-70 End products subject to trade agreements.
 225.401-71 Products or services in support of operations in Afghanistan.
 225.402 General.
 225.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.
 225.408 Procedures.


225.401  Exceptions.

 

 

      (a)(2)(A)  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 (OUSD(AT&L)DPAP).  Approval by OUSD(AT&L)DPAP is not required if—

 

                    (1)  Purchase from foreign sources is restricted by statute (see Subpart 225.70);

 

                    (2)  Another exception in FAR 25.401 applies to the acquisition; or

 

                    (3)  Competition from foreign sources is restricted under subpart 225.71.

 

              (B)  Public interest exceptions for certain countries when acquiring products or services in support of operations in Afghanistan are in 225.7704-1.

 

 

225.401-70  End products subject to trade agreements.

Acquisitions of end products in the following product service groups (PSGs) are covered by trade agreements if the value of the acquisition is at or above the applicable trade agreement threshold and no exception applies. If an end product is not in one of the listed groups, the trade agreements 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). Therefore certain watches, watch parts, and luggage from certain Caribbean Basin countries are not eligible products.  However, 225.003 expands the definition of Caribbean Basin country end products to include petroleum and any product derived from petroleum, in accordance with Section 8094 of Pub. L. 103-139. 

 

PSG

Category/Description

 

 

22

Railway equipment

23

Motor vehicles, trailers, and cycles (except 2305, 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, air conditioning, and air circulating equipment

42

Fire fighting, rescue, and safety equipment; and environmental protection equipment and materials

43

Pumps and compressors

44

Furnace, steam plant, and drying equipment (except 4470)

45

Plumbing, heating, and waste disposal equipment

46

Water purification and sewage treatment equipment

47

Pipe, tubing, hose, and fittings

48

Valves

49

Maintenance and repair shop equipment (except 4920-4927, 4931-4935, 4960, 4970)

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, signal and security detection 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

Automatic data processing equipment (including firmware), software, supplies and support equipment

71

Furniture

72

Household and commercial furnishings and appliances

73

Food preparation and serving equipment

74

Office machines, text processing systems and visible record 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)

83

Pins, needles, and sewing kits (only part of 8315) and flagstaffs, flagpoles, and flagstaff trucks (only part of 8345)

84

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

85

Toiletries

87

Agricultural supplies

88

Live animals

89

Tobacco products (only 8975)

91

Fuels, lubricants, oils, and waxes

93

Nonmetallic fabricated materials

94

Nonmetallic crude materials

96

Ores, minerals, and their primary products

99

Miscellaneous

 

 

225.401-71  Products or services in support of operations in Afghanistan.

When acquiring products or services, other than small arms, in support of operations in Afghanistan if using a procedure specified in 225.7703-1(a) (2) or (3), the procedures of subpart 25.4 are not applicable.

 

225.402  General.

To estimate the value of the acquisition, use the total estimated value of end products covered by trade agreements (see 225.401-70 ).

 

225.403  World Trade Organization Government Procurement Agreement and Free Trade Agreements.

 

      (c)  For acquisitions of supplies covered by the World Trade Organization Government Procurement Agreement, acquire only U.S.-made, qualifying country, or designated country end products unless—

 

              (i)  The contracting officer determines that offers of U.S.-made, qualifying country, or designated country end products from responsive, responsible offerors are either¾

 

                    (A)  Not received; or

 

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

 

              (ii)  A national interest waiver under 19 U.S.C. 2512(b)(2) is granted on a case-by-case basis.  Except as delegated in paragraphs (c)(i)(A) and (B) of this section, submit any request for a national interest waiver to the Director of Defense Procurement and Acquisition Policy and Acquisition Policy in accordance with department or agency procedures.  Include supporting rationale with the request.

 

                    (A)  The head of the contracting activity may approve a national interest waiver for a purchase by an overseas purchasing activity, if the waiver is supported by a written statement from the requiring activity that the products being acquired are critical for the support of U.S. forces stationed abroad.

 

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

 

              (iii)  The acquisition is in support of operations in Afghanistan (see 225.7704-1).

 

225.408  Procedures.

 

      (a)(4)  The requirements of FAR 25.408(a)(4), on submission of offers in U.S. dollars, do not apply to overseas acquisitions or to Defense Energy Support Center post, camp, or station overseas requirements.

 


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