[Federal Register Volume 59, Number 6 (Monday, January 10, 1994)]
[Rules and Regulations]
[Pages 1288-1292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-447]
[[Page Unknown]]
[Federal Register: January 10, 1994]
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DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
Defense Federal Acquisition Regulation Supplement; North American
Free Trade Agreement Implementation Act
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for public comments.
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SUMMARY: The Director of Defense Procurement is issuing an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to integrate Buy American Act and Balance of Payments Program waivers
necessitated by the North American Free Trade Agreement Implementation
Act with similar existing Department of Defense waivers for countries
with memoranda of understanding or other international agreements.
DATES: Effective Date: January 1, 1994. This rule applies to
solicitations issued on or after January 1, 1994.
Comment Date: Comments on the interim DFARS rule should be
submitted in writing to the address shown below on or before February
9, 1994, to be considered in the formulation of a final rule. Please
cite DFARS Case 93-D310 in all correspondence related to this issue.
ADDRESSES: Interested parties should submit written comments to The
Defense Acquisition Regulations Council, ATTN: Mrs. Alyce Sullivan,
OUSD (A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC
20301-3062. Telefax number (703) 697-9845.
FOR FURTHER INFORMATION CONTACT: Mrs. Alyce Sullivan, (703) 697-7266.
SUPPLEMENTARY INFORMATION:
A. Background
Chapter Ten of the North American Free Trade Agreement (NAFTA)
Implementation Act of 1993 requires the United States, Canada, and
Mexico to eliminate ``buy national'' restrictions on non-defense
related purchases by the federal governments. NAFTA is being
implemented in the Federal Acquisition Regulation but also requires
revision of the DFARS to integrate Buy American Act and Balance of
Payments Program waivers necessitated by NAFTA with similar existing
Department of Defense waivers for countries with memoranda of
understanding or other international agreements.
B. Regulatory Flexibility Act
The interim rule may 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 rule
waives the Buy American Act for certain Mexican and Canadian products.
An Initial Regulatory Flexibility Analysis (IRFA) has been prepared and
will be provided to the Chief Counsel for Advocacy for the Small
Business Administration. Comments are invited. Comments from small
entities concerning the affected DFARS subpart will be considered in
accordance with 5 U.S.C. 610. Such comments must be submitted
separately and cite DFARS Case 93-610 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act applies because the provisions at
252.225-7006, Buy American Act-Trade Agreements-Balance of Payments
Program Certificate, and 252.225-7035, Buy American Act-North American
Free Trade Agreement Implementation Act-Balance of Payments Program
Certificate, require offerors to list the line item number and country
of origin for any end product other than a domestic end product.
Accordingly, a request for clearance of a new information collection
requirement concerning the North American Free Trade Agreement Act is
being submitted to the Office of Management and Budget under 44 U.S.C.
3501, et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense to issue this rule as an interim rule. Urgent and compelling
reasons exist to promulgate this rule before affording the public an
opportunity to comment. This action is necessary because the North
American Free Trade Agreement Implementation Act, signed into law on
December 8, 1993, becomes effective on January 1, 1994. However,
pursuant to Public Law 98-577 and Federal Acquisition Regulation 1.501,
public comments received in response to this interim rule will be
considered in formulating the final rule.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Claudia L. Naugle,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR parts 225 and 252 are amended as follows:
1. The authority citation for 48 CFR parts 225 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and FAR subpart 1.3.
PART 225--FOREIGN ACQUISITION
2. Section 225.000-70 is amended by revising paragraph (m) to read
as follows:
225.000-70 Definitions.
As used in this part--
* * * * *
(m) U.S. made end product is defined in the clause at 252.225-7007,
Trade Agreements.
3. Section 225.000-71 is amended by revising paragraphs (a)(2) and
(c)(1) to read as follows:
225.000-71 General guidelines.
* * * * *
(a) Statutory or policy restrictions.
* * * * *
(2) Where an exception to or waiver of a restriction would result
in award of a foreign end product, apply the policies and procedures of
the Buy American Act or the Balance of Payments Program, and, if
applicable, the trade agreements.
* * * * *
(c) Trade agreements. (1) Determine whether the product is covered
by the Trade Agreements Act or the North American Free Trade Agreement
Implementation Act (see subpart 225.4).
* * * * *
4. Section 225.105 (3) and (5)(ii)(A) are revised to read as
follows:
225.105 Evaluating offers.
* * * * *
(3) Treat offers of eligible products under acquisitions subject to
the Trade Agreements Act or NAFTA as if they were qualifying country
offers. (See Example 4 of Table 25-1, Evaluation.)
* * * * *
(5) * * *
(ii) * * *
(A) ``U.S. made end product'' under trade agreements;
* * * * *
5. Section 225.109(a) is revised to read as follows:
225.109 Solicitation provisions and contract clauses.
(a) Use the provision at 252.225-7000, Buy American Act--Balance of
Payments Program Certificate, instead of the provisions at FAR 52.225-
1, Buy American Certificate, and FAR 52.225-6, Balance of Payments
Program Certificate. Use the provision in any solicitation which
includes the clause at 252.225-7001, Buy American Act and Balance of
Payments Program, unless the solicitation includes either the clause at
252.225-7007, Trade Agreements Act, or the clause at 252.225-7036,
North American Free Trade Agreements Implementation Act.
* * * * *
6. Section 225.401 is revised to read as follows:
225.401 Definitions.
Eligible product means, instead of the definition at FAR 25.401, a
designated, NAFTA, or Caribbean Basin country end product in the
categories listed in 225.403.70.
7. Section 225.402 is amended by revising paragraphs (c) (i) and
(ii) to read as follows:
225.402 Policy.
* * * * *
(c)(i) Except as provided in paragraph (c)(ii) 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) 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)(ii) (A), (B), and (C) 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.
* * * * *
8. Section 225.403-70 is amended by revising the introductory
paragraph and by removing Federal Supply Group (FSG) 52, and the
Category/Description of Measuring tools, to read as follows:
225.403-70 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. As noted in FAR 25.401, Caribbean Basin country end products
are limited to those end products which are eligible for duty-free
treatment under 19 U.S.C. 2703(b). The list of products has been
annotated to indicate those products which, due to this limitation, are
eligible for designated and NAFTA countries, but are not presently
eligible for Caribbean Basin countries.
* * * * *
225.407 [Amended]
9. Section 225.407 is redesignated as 225.408; paragraphs (a)(1)
and (a)(2)(A) of newly designated section 225.408 are amended by
removing the word ``Act'' wherever it appears after ``Trade
Agreements''; and new paragraphs (a) (3) and (4) are added, to read as
follows:
225.408 Solicitation provision and contract clause.
(a) * * *
(3) Use the provision at 252.225-7035, Buy American Act--North
American Free Trade Agreement Implementation Act--Balance of Payments
Program Certificate, instead of the provision at FAR 52.225-20, Buy
American Act--North American Free Trade Agreement Implementation Act--
Balance of Payments Program Certificate, in all solicitations that
include the clause at 252.225-7036, North American Free Trade Agreement
Implementation Act.
(4) (A) Use the clause at 252.225-7036, North American Free Trade
Agreement Implementation Act, instead of the clause at FAR 52.225-21,
Buy American Act--North American Free Trade Agreement Implementation
Act--Balance of Payments Program. The clause need not be used where
purchase from foreign sources is restricted (see 225.403(d)(1)(B)). The
clause may be used where the contracting officer anticipates a waiver
of the restriction.
(B) Use the clause in all solicitations and contracts for the items
listed at 225.403-70, when the estimated value is $50,000 or more and
the Trade Agreements Act does not apply. Include the clause in
solicitations for multiple line items if any line item is subject to
NAFTA.
(C) Application of the procedures in 225.402(a) and the acquisition
of noneligible and eligible products under the same solicitation may
result in the application of the North American Free Trade Agreement
Implementation Act to only some of the items solicited. In such case,
indicate in the schedule those items covered by the Act.
10. Section 225.602(3)(ii) is revised to read as follows:
Subpart 225.6--Customs and Duties
225.602 Policy.
* * * * *
(3) * * *
(ii) Eligible products (end products but not components) on defense
contracts subject to the Trade Agreements Act or NAFTA; and
* * * * *
11. Section 225.603 is amended to add new paragraph (1)(ii)(C), and
to revise paragraph (1)(iii)(C)(3) to read as follows:
225.603 Procedures.
* * * * *
(1) * * *
(ii) * * *
(C) 252.225-7037, Duty-Free Entry--NAFTA Country End Products and
Supplies; or
* * * * *
(iii) * * *
(C) * * *
(3) Such acquisition abroad is authorized by the terms of the
contract, the subcontract, or by the contracting officer. In any case,
follow the procedures required by the clauses in FAR 52.225-10, Duty-
Free Entry, and 252.225-7009, Duty-Free Entry--Qualifying Country End
Products and Supples, and 252.225-7037, Duty-Free Entry--NAFTA Country
End Products and Supplies, to the extent practicable.
* * * * *
12. Section 225.605-70 is amended by redesignating paragraph (c) as
paragraph (d), and adding new paragraph (c) to read as follows:
225.605-70 Additional solicitation provisions and contract clauses.
* * * * *
(c) Use the clause at 252.225-7037, Duty-Free Entry--NAFTA Country
End Products and Supplies, in all solicitations and contracts for
supplies and services when the clause at FAR 52.225-10, Duty-Free
Entry, is not used and NAFTA applies (see 225.403-70).
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
13. Section 252.225-7001 is amended by revising the clause heading
and paragraph (c) to read as follows:
252.225-7001 Buy American Act and Balance of Payments Program.
As prescribed in 225.109(d), use the following clause:
Buy American Act and Balance of Payments Program (January 1994)
* * * * *
(c) The Contractor agrees that it will deliver only domestic end
products unless, in its offer, it specified delivery of other end
products in the Buy American Act and Balance of Payments Certificate
or the Buy American Act--Trade Agreements--Balance of Payments
Program Certificate. An offer certifying that a qualifying country
end product will be supplied requires the Contractor to deliver a
qualifying country end product or a domestic end product.
* * * * *
(End of clause)
14. Section 252.225-7006 is amended by revising the section
heading, the clause title, and paragraph (a); paragraph (b) is revised;
paragraph (c)(2)(v) is redesignated as paragraph (vi) and reprinted for
the convenience of the reader; and a new paragraph (c)(2)(v) is added,
to read as follows:
252.225-7006 Buy American Act--Trade Agreements--Balance of Payments
Program Certificate.
As prescribed in 225.408(a)(1), use the following provision:
Buy American Act--Trade Agreements--Balance of Payments Program
Certificate (Jan. 1994)
(a) Definitions.
Caribbean Basin country end product, designated country end
product, domestic end product, NAFTA country end product,
nondesignated country end product, qualifying country end product,
and U.S. made end product have the meanings given in the Trade
Agreements or Buy American Act and Balance of Payments Program
clauses of this solicitation.
(b) Evaluation.
Offers will be evaluated by giving preference to U.S. made end
products, qualifying country end products, designated country end
products, NAFTA country end products, and Caribbean Basin country
end products over other end products.
(c) Certifications. * * *
(v) The Offeror certifies that the following supplies qualify as
NAFTA country end products: (insert line item number) (insert
country of origin).
(vi) The Offeror certifies that the following supplies are other
nondesignated country end products. (insert line item number)
(insert country of origin). (End of provision)
15. Section 252.225-7007 is amended by revising the section heading
and clause title; to revise the introductory language; to redesignate
current paragraphs (a)(5), (6), and (7) as (a)(7), (8), and (9)
respectively and add new paragraphs (a)(5) and (6); to revise newly
designated paragraph (a)(9)(ii); and to revise paragraphs (b), (c), and
(d), to read as follows:
252.225-7007 Trade Agreements.
As prescribed in 225.408(a)(2), use the following clause:
Trade Agreements (Jan. 1994)
(a) * * *
(5) NAFTA country end product means an article that--
(i) Is wholly the growth, product, or manufacture of the NAFTA
country; or
(ii) Has, in the case of an article which consists in whole or
in part of materials from another country or instrumentality, been
substantially transformed in a NAFTA 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 so
transformed. The term includes services (except transportation
services) incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
It does not include service contracts as such.
(6) North American Free Trade Agreement (NAFTA) country means
Canada or Mexico.
* * * * *
(9) * * *
* * * * *
(ii) In the case of an article which consists in whole or in
part of materials from another country or instrumentality, has been
substantially transformed in the United States into a new and
distinct article of commerce with a name, character, or use distinct
from that of the article or articles from which it was so
transformed.
(b) This clause implements the Trade Agreements Act of 1979 (19
U.S.C. 2501 et seq.), the North American Free Trade Agreement
Implementation Act of 1993, and the Caribbean Basin Initiative by
providing a preference for U.S. made end products and designated
country end products over nondesignated country end products, except
nondesignated country end products which are qualifying country end
products, NAFTA country end products, or Caribbean Basin end
products.
(c) The Contractor agrees to deliver under this contract only
U.S. made end products unless, in its offer, it specified delivery
of qualifying country, NAFTA country, or nondesignated country end
products in the Buy American Act--Trade Agreements--Balance of
Payments Program Certificate provision.
(1) Offerors may not supply a nondesignated country end product
unless it is a qualifying country end product, NAFTA country end
product, or Caribbean Basin country end product, or a national
interest waiver has been granted under section 302 of the Trade
Agreements Act of 1979 (see FAR 25.402(c)).
(2) An offer certifying that a qualifying country end product, a
designated country end product, a NAFTA country end product, or a
Caribbean Basin country end product will be supplied, requires the
Contractor to supply a qualifying country end product, a designated
country end product, a NAFTA country end product, or a Caribbean
Basin country end product, whichever is certified, or, at the
Contractor's option, a U.S. made end product.
(d) The offered price of end products listed and certified under
paragraphs (c)(2)(i) and (vi) of the Buy American Act--Trade
Agreements--Balance of Payments Program Certificate provision of the
solicitation must include all applicable duty. The offered price of
qualifying country end products, designated country end products,
NAFTA country end products, and Caribbean Basin country end products
for line items subject to the Trade Agreements Act or the North
American Free Trade Agreement Implementation Act, should not include
customer fees or duty. (End of clause)
16. Section 252.225-7010 is amended by revising the introductory
text to read as follows:
252.225-7010 Duty Free Entry--Additional Provisions.
As prescribed in 225.605-70(d), use the following clause:
* * * * *
17. A new section 252.225-7035 is added to read as follows:
252.225-7035 Buy American Act--North American Free Trade Agreement
Implementation Act--Balance of Payments Program Certificate.
As prescribed in 225.408(a)(3), use the following provision:
Buy American Act--North American Free Trade Agreement Implementation
Act--Balance of Payments Program Certificate (Jan. 1994)
(a) Definitions.
Domestic end product, qualifying country end product, and U.S.
made end product have the meanings given in the North American Free
Trade Agreement Implementation Act or Buy American Act and Balance
of Payments Program clauses of this solicitation.
(b) Evaluation.
Offers will be evaluated by giving preference to U.S. made end
products, qualifying country end products, or NAFTA country end
products over other end products.
(c) Certifications.
(1) The Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product (as
defined in the Buy American Act and Balance of Payments Program
clause of this solicitation); and
(ii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror must identify and certify all end products that
are not domestic end products.
(i) The Offeror certifies that the following supplies qualify as
``U.S. made end products'' but do not meet the definition of
``domestic end product'': (insert line item number).
(ii) The Offeror certifies that the following supplies are
qualifying country end products: (insert line item number) (insert
country of origin).
(iii) The Offeror certifies that the following supplies qualify
as NAFTA country end products: (insert line item number (insert
country of origin).
(iv) The Offeror certifies that the following supplies are other
non-NAFTA country end products: (insert line item number) (insert
country of origin). (End of provision)
18. A new section 252.225-7036 is added to read as follows:
252.225-7036 North American Free Trade Agreement Implementation Act.
As prescribed in 225.408(a)(4), use the following clause:
North American Free Trade Agreement Implementation Act (Jan. 1994)
(a) Definitions.
(1) Components, domestic end product, end product, nonqualifying
country, qualifying country, and qualifying country end product have
the meanings given in the Buy American Act and Balance of Payments
Program clause of this contract.
(2) North American Free Trade Agreement (NAFTA) country means
Canada or Mexico.
(3) NAFTA country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a NAFTA
country; or
(ii) Has, in the case of an article which consists in whole or
in part of materials from another country or instrumentality, been
substantially transformed in a NAFTA 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 so
transformed. The term includes services (except transportation
services) incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
It does not include service contracts as such.
(4) Non-NAFTA country end product means any end product which is
not a U.S. made end product or a NAFTA country end product.
(5) United States means the United States, its designated
possessions, Puerto Rico, and any other place subject to its
jurisdiction, but does not include leased bases or trust
territories.
(6) U.S. made end product means an article which is--
(i) Wholly the growth, product or manufacture of the United
States, or
(ii) In the case of an article which consists in whole or in
part of materials from another country or instrumentality, has been
substantially transformed in the United States into a new and
distinct article of commerce with a name, character, or use distinct
from that of the article or articles from which it was so
transformed.
(b) This clause implements the North American Free Trade
Agreement Implementation Act of 1993 by providing a preference for
U.S. made end products and NAFTA country end products over non-NAFTA
country end products, except non-NAFTA country end products which
are qualifying country end products.
(c) The Contractor agrees to deliver under this contract only
U.S. made end products unless, in its offer, it specified delivery
of qualifying country, NAFTA country, or non-NAFTA country end
products in the Buy American Act--North American Free Trade
Agreement Implementation Act--Balance of Payments Program
Certificate provision. An offer certifying that a qualifying country
end product or a NAFTA country end product will be supplied requires
the Contractor to supply a qualifying country end product or a NAFTA
country end product, whichever is certified, or, at the Contractor's
option, a U.S. made end produce.
(d) The offered price of end products listed and certified under
paragraphs (c)(2)(i) and (iv) of the Buy American Act--North
American Free Trade Agreement Implementation Act-Balance of Payments
Program Certificate provision of the solicitation must include all
applicable duty. The offered price of qualifying country end
products or NAFTA country end products for line items subject to the
North American Free Trade Agreement Implementation Act, should not
include custom fees or duty. (End of clause)
19. A new section 252.225-7037 is added to read as follows:
252.225-7037 Duty-Free Entry--NAFTA Country End Products and Supplies.
As prescribed in 225.605-70(c), use the following clause:
Duty-Free Entry--NAFTA Country End Products and Supplies (Jan. 1994)
(a) Definitions.
NAFTA country and NAFTA country end products have the meaning
given in the North American Free Trade Agreement Implementation Act
clause of this contract.
(b) The requirements of this clause apply to this contract and
subcontracts, including purchase orders, that involve supplies to be
accorded duty-free entry whether--
(1) Placed directly with a foreign concern as a prime contract;
or
(2) As a subcontract or purchase order under a contract placed
with a domestic concern.
(c) Except as otherwise approved by the Contracting Officer, no
amount is or will be included in the contract price for duty for
NAFTA country end products.
(d) The Contractor warrants that--
(1) All NAFTA country supplies, for which duty-free entry is to
be claimed, are intended to be delivered to the Government; and
(2) The Contractor will pay duty to the extent that such
supplies, or any portion thereof (if not scrap or salvage) are
diverted to nongovernmental use, other than as a result of a
competitive sale made, directed, or authorized by the Contracting
Officer.
(e) The Government agrees to execute duty-free entry
certificates and to afford such assistance as appropriate to obtain
the duty-free entry of NAFTA country supplies for which the shipping
documents bear the notation specified in paragraph (f) of this
clause, except as the Contractor may otherwise agree.
(f) All shipping documents submitted to Customs, covering
foreign end products or supplies for which duty-free entry
certificates are to be issued under this clause, shall--
(1) Consign the shipments to the appropriate--
(i) Military department in care of the Contractor, including the
Contractor's delivery address; or
(ii) Military installation; and
(2) Include the following information--
(i) Prime contract number, and delivery order if applicable;
(ii) Number of the subcontract/purchase order for foreign
supplies if applicable;
(iii) Identification of carrier;
(iv) The notation: United States Government, Department of
Defense Duty-Free Entry to be claimed pursuant to Section XXII,
Chapter 98, Subchapter VIII, Item 9808.00.30 of the Harmonized
Tariff Schedule of the United States. Upon arrival of shipment at
the appropriate port of entry, District Director of Customs, please
release shipment under 19 CFR part 142, and notify Commander,
Defense Contract Management Area Operations (DCMAO) New York, ATTN:
Customs Division, International Logistics Office, 201 Varick Street,
New York, NY 10014, for execution of Customs Forms 7501, 7501A, or
7506 and any required duty-free entry certificates. (Note: This
notation shall be used only for direct shipments to a U.S. military
installation. In cases where the shipment will be consigned to other
than a military installation, e.g., a domestic contractor's plan,
the shipping document notation shall be altered to insert the name
and address of the contractor, agent or broker who will notify
Commander, DCMAO, NY, for execution of the duty-free certificate.)
(v) Gross weight in pounds (if freight is based on space
tonnage, state cubic feet in addition to gross shipping weight);
(vi) Estimated value in U.S. dollars; and
(vii) Activity Address Number of the contract administration
office actually administering the prime contract, e.g., for DCMAO
Dayton, DLA8DP.
(g) Prepartion of customs forms.
(1) Except for shipments consigned to a military installation,
the contractor shall prepare, or authorize an agent to prepare, any
customs forms required for the entry of foreign supplies in
connection with DoD contracts into the United States, its
possessions, or Puerto Rico, Submit the completed customs forms to
the District Director of Customs with a copy to DCMAO NY for
execution of any required duty-free entry certificates. Shipments
consigned directly to a military installation will be released in
accordance with 10.101 and 10.102 of the U.S. Customs regulations.
(2) For shipments containing both supplies which are to be
accorded duty-free entry and supplies which are not, the Contractor
shall identify on the customs forms those items that are eligible
for duty-free entry.
(h) The Contractor agrees--
(1) To prepare (if this contract is placed directly with a
foreign supplier), or to instruct the foreign supplier to prepare, a
sufficient number of copies of the bill of lading (or other shipping
document) so that at least two of the copies accompanying the
shipment will be available for use by the District Director of
Customs at the port of entry:
(2) To consign the shipment as specified in paragraph (f) of
this clause; and
(3) To mark the exterior of all packages as follows:
(i) ``United States Government, Department of Defense;'' and
(ii) The activity address number of the contract administration
office actually administering the prime contract.
(i) The Contractor agrees to notify the Contracting Officer
administering the prime contract in writing of any purchase under
the contract of NAFTA country supplies to be accorded duty-free
entry that are to be imported into the United States for delivery to
the Government or for incorporation in end items to be delivered to
the Government. The notice shall be furnished to the contract
administration office immediately upon award to the qualifying
country supplier. The notice shall contain--
(1) Prime contractor's name, address, and CAGE code;
(2) Prime contract number, and delivery order number if
applicable;
(3) Total dollar value of the prime contract or delivery order;
(4) Expiration date of the prime contract or delivery order;
(5) Foreign supplier's name and address;
(6) Number of the subcontract/purchase order for NAFTA supplies;
(7) Total dollar value of the subcontract for NAFTA supplies;
(8) Expiration date of the subcontract for NAFTA supplies;
(9) List of items purchased; and
(10) Certification by the purchaser of NAFTA supplies as
follows: I certify that all supplies for which duty-free entry is to
be claimed are intended to be delivered to the Government or
incorporated in the end items to be delivered under this contract,
and that duty shall be paid by the Contractor to the extent that
such supplies, or any portion (if not scrap or salvage) are diverted
to nongovernmental use other than as a result of a competitive sale
made, directed or authorized by the Contracting Officer; and
(11) The scheduled delivery date(s).
(j) This clause does not apply to purchases of NAFTA country
supplies in connection with this contract if--
(1) The NAFTA country supplies are identical in nature to
supplies purchased by the Contractor or any subcontractor in
connection with its commercial business; and
(2) It is not economical or feasible to account for such
supplies so as to ensure that the amount of the supplies for which
duty-free entry is claimed does not exceed the amount purchased in
connection with this contract.
(k) The Contractor agrees to insert the substance of this
clause, including this paragraph (k) in all subcontracts for
supplies. Each subcontract shall require the subcontractor to
identify this contract by including its contract number on any
shipping documents submitted to Customs covering supplies for which
duty-free entry is to be claimed pursuant to this clause. The
Contractor also agrees that the name and address of the Contracting
Officer administering the prime contract (name and address of the
contract administration office cognizant of the prime contract), and
its activity address number (Appendix G of the Defense FAR
Supplement), and the information required by paragraphs (i) (1),
(2), and (3) of this clause will be included in applicable
subcontracts. (End of clause)
[FR Doc. 94-447 Filed 1-7-94; 8:45 am]
BILLING CODE 3810-01-M
