[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Rules and Regulations]               
[Page 65752]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 65752]]



Defense Acquisition Regulations System

48 CFR Parts 225 and 252

RIN 0750-AF29

Defense Federal Acquisition Regulation Supplement; Trade 
Agreements Thresholds and Morocco Free Trade Agreement (DFARS Case 

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD has adopted as final, with changes, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to update policy relating to trade agreements. The rule incorporates 
increased dollar thresholds for application of the World Trade 
Organization Government Procurement Agreement and the Free Trade 
Agreements, implements a new Free Trade Agreement with Morocco, and 
amends the list of end products subject to trade agreements.

DATES: Effective Date: November 9, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328; 
facsimile (703) 602-0350. Please cite DFARS Case 2005-D017.


A. Background

    DoD published an interim rule at 71 FR 9269 on February 23, 2006, 
to reflect increased dollar thresholds for application of the trade 
agreements, as determined by the United States Trade Representative; to 
implement a new Free Trade Agreement with Morocco; and to update the 
list of end products subject to trade agreements. DoD received no 
comments on the interim rule and has adopted the interim rule as a 
final rule, with an additional change at 252.225-7021 to reflect that 
the definition of ``designated country end products'' includes 
Caribbean Basin and Free Trade Agreement country end products.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the dollar threshold changes are designed to keep pace with 
inflation and thus maintain the status quo. Although the rule opens up 
DoD procurement to the products of Morocco, DoD does not believe there 
will be a significant economic impact on U.S. small businesses. DoD 
applies the trade agreements to only those non-defense items listed at 
DFARS 225.401-70, and procurements that are set aside for small 
businesses are exempt from application of the trade agreements.

C. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in the provisions at DFARS 252.225-7020 and 252.225-7035, 
currently approved under Office of Management and Budget Control Number 
0704-0229 for use through May 31, 2007. However, there is no impact on 
the estimated burden hours. The dollar threshold changes are in line 
with inflation and maintain the status quo. Reporting of products from 
Morocco as Free Trade Agreement end products rather than other foreign 
end products has no impact on paperwork burden.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

Accordingly, the interim rule amending 48 CFR parts 225 and 252, which 
was published at 71 FR 9269 on February 23, 2006, is adopted as a final 
rule with the following changes:
1. The authority citation for 48 CFR parts 225 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.


252.212-7001  [Amended]

2. Section 252.212-7001 is amended as follows:
a. By revising the clause date to read ``(NOV 2006)''; and
b. In paragraph (b)(9), by removing ``(OCT 2006)'' and adding in its 
place ``(NOV 2006)''.
3. Section 252.225-7021 is amended by revising the clause date and 
paragraph (c)(2)(i) to read as follows:

252.225-7021  Trade Agreements.

* * * * *

Trade Agreements (Nov 2006)

* * * * *
    (c) * * *
    (2)(i) Offers of U.S.-made, qualifying country, or designated 
country end products from responsive, responsible offerors are 
either not received or are insufficient to fill the Government's 
requirements; or
* * * * *
[FR Doc. E6-19032 Filed 11-8-06; 8:45 am]