[Federal Register Volume 60, Number 250 (Friday, December 29, 1995)]
[Rules and Regulations]
[Pages 67514-67518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31466]
[[Page 67513]]
_______________________________________________________________________
Part VII
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 25 and 52
Federal Acquisition Regulation; Uruguay Round; Final Rule
Federal Register / Vol. 60, No. 250 / Friday, December 29, 1995 /
Rules and Regulations
[[Page 67514]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 90-36; FAR Case 95-304]
RIN 9000-AG80
Federal Acquisition Regulation; Uruguay Round
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on an interim rule to amend
the Federal Acquisition Regulation (FAR) to implement the renegotiated
General Agreement on Tariffs and Trade (GATT) Government Procurement
Agreement (1996 Code) (Uruguay Round) which becomes effective January
1, 1996. This regulatory action was not subject to Office of Management
and Budget review under Executive Order 12866, dated September 30,
1993.
DATES: Effective: January 1, 1996. Applicability: This regulation
applies to solicitations issued on or after January 1, 1996. Comments
Due: Comments on the interim rule should be submitted to the FAR
Secretariat at the address shown below on or before February 27, 1996
to be considered in the formulation of a final rule.
ADDRESSES: FAR Secretariat, Room 4037, GS Building, Washington, DC
20405.
FOR FURTHER INFORMATION CONTACT:
Mr. Peter O'Such at (202) 501-1759 in reference to this FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-36,
FAR case 95-304.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends the FAR to implement the renegotiated
General Agreement on Tariffs and Trade (GATT) Government Procurement
Agreement (1996 Code) (Uruguay Round) which becomes effective January
1, 1996. This agreement is implemented in statute by the Uruguay Round
Agreement Act, Public Law 103-465, which amends the Trade Agreements
Act of 1979 (19 U.S.C. 2501-2582).
B. Regulatory Flexibility Act
This interim rule is not expected to 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
does not impose any new requirements on contractors, large or small.
The interim rule primarily changes the list of designated foreign
countries and extends applicability of the Trade Agreements Act to all
agencies for supply and construction contracts over certain dollar
thresholds. However, those contracts which are now subject to the Trade
Agreements Act were already subject to the Memorandum of Understanding
Between the United States of America and the European Community on
Government Procurement. This change should have minimal impact on U.S.
firms. The interim rule will not diminish existing preferences for
small businesses, because purchases under small and small disadvantaged
business preference programs are exempted from the Trade Agreements
Act. An Initial Regulatory Flexibility Analysis has, therefore, not
been performed. Comments from small entities concerning the affected
subpart will be considered in accordance with Section 610 of the Act.
Such comments must be submitted separately and cite FAC 90-36, FAR case
95-304, in correspondence.
C. Paperwork Reduction Act
This interim rule does not impose any new reporting or
recordkeeping requirements which require Office of Management and
Budget (OMB) approval under 44 U.S.C. 3501, et seq. Contractors, which
previously were required to respond to the now deleted provision at
52.225-16, Buy American Act--Supplies under European Community
Agreement Certificate, will now be required to respond to the
comparable provision at 52.225-8, Buy American Act--Trade Agreements--
Balance of Payments Program Certificate (OMB Control No. 9000-0046).
D. Determination to Issue an Interim Rule
A determination has been made under authority of the Secretary of
Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
in order to implement the renegotiated General Agreement on Tariffs and
Trade (GATT) Government Procurement Agreement (1996 Code) (Uruguay
Round) which becomes effective January 1, 1996. This agreement is
implemented in statute by the Uruguay Round Agreement Act, Public Law
103-465, which amends the Trade Agreements Act of 1979 (19 U.S.C. 2501-
2582). However, pursuant to Public Law 98-577 and FAR 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 25 and 52
Government procurement.
Dated: December 22, 1995.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.
Federal Acquisition Circular
Number 90-36
Federal Acquisition Circular (FAC) 90-36 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator for the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 90-36 is effective
January 1, 1996. This regulation applies to solicitations issued on or
after January 1, 1996.
Dated: December 21, 1995.
Eleanor R. Spector,
Director, Defense Procurement.
Dated: December 22, 1995.
Ida M. Ustad,
Associate Administrator, Office of Acquisition Policy, GSA.
Dated: December 20, 1995.
Deidre Lee,
Associate Administrator for Procurement, NASA.
Therefore, 48 CFR Parts 25 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 25 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 25--FOREIGN ACQUISITION
25.101 [Amended]
2. At 25.101 in the definition of ``Instrumentality'' the phrase
``European Economic Community'' is revised to read ``European Union''.
[[Page 67515]]
3. Section 25.104 is amended by revising paragraph (a) to read as
follows:
25.104 Acquiring civil aircraft and related articles.
(a) The U.S. Trade Representative, on February 19, 1980 (45 FR
12349, February 25, 1980), waived applying the Buy American Act to the
acquisition of civil aircraft and related articles of countries or
instrumentalities that are parties to the Agreement on Civil Aircraft.
The representative acted under the authority of section 303 of the
Trade Agreements Act of 1979 (19 U.S.C. 2513). Countries and
Instrumentalities that are parties to the agreement (as of January 1,
1996) are Canada, the European Union (Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden and the United Kingdom), Japan,
Norway, Romania, and Switzerland. The Office of the U.S. Trade
Representative, Washington, DC 20506, can provide information on
changes to the list of parties to the agreement made since January 1,
1996.
* * * * *
4. Section 25.109 is amended by revising paragraph (d), removing
paragraphs (e) and (f), redesignating paragraph (g) as (e) and revising
the introductory text and newly designated paragraph (e)(2); and
amending newly designated paragraph (e)(1) by removing the word ``or''.
The revised text reads as follows:
25.109 Solicitation provisions and contract clauses.
* * * * *
(d) Except as provided in paragraph (e) of this section, the
contracting officer shall insert the clause at 52.225-3, Buy American
Act--Supplies, in solicitations and contracts for the acquisition of
supplies, or for services involving the furnishing of supplies, for use
within the United States.
(e) Do not use the clause prescribed in paragraph (d) of this
section when--
* * * * *
(2) The acquisition is made under a trade agreement (see subpart
25.4); or
* * * * *
25.202 [Amended]
5. At 25.202(c) the reference to ``25.402(a) (3) and (4)'' is
revised to read ``25.402(a) (1) and (3).
6. At 25.205 paragraph (b) is revised to read as follows:
25.205 Solicitation provision and contract clause.
* * * * *
(b)(1) For construction solicitations and contracts with an
estimated acquisition value of $7,311,000 or more, insert the basic
clause at 52.225-15, Buy American Act--Construction Materials under
Trade Agreements Act and North American Free Trade Agreement.
(2) For construction solicitations and contracts with an estimated
value from $6,500,000 to $7,311,000, insert the clause with its
Alternate I.
7. Section 25.400 is revised to read as follows:
25.400 Scope of subpart.
(a) This subpart provides policies and procedures for acquisitions
subject to the Agreement on Government Procurement, as approved by
Congress in the Trade Agreements Act of 1979 (19 U.S.C. 2501-2582), and
as amended by the Uruguay Round Agreements Act (Pub. L. 103-465), and
other trade agreements including--
(1) Acquisitions from countries designated under the Caribbean
Basin Economic Recovery Act (19 U.S.C. 2701, et seq.);
(2) Acquisitions involving offers of Israeli end products under the
U.S.-Israel Free Trade Area Agreement, as approved by Congress in the
United States-Israel Free Trade Area Implementation Act of 1985 (19
U.S.C. 2112 note);
(3) Acquisitions involving offers of Canadian or Mexican end
products under the North American Free Trade Agreement (NAFTA), as
approved by Congress in the NAFTA Implementation Act (Pub. L. 103-182,
107 Stat. 2057); and
(4) The Agreement on Civil Aircraft (19 U.S.C. 2513).
(b) For application of the trade agreements which are unique to
individual agencies (Department of Defense, National Aeronautics and
Space Administration, Department of Energy (Power Marketing
Administration), Department of the Interior (Bureau of Reclamation) and
Department of Transportation (Federal Aviation Administration), see
agency regulations.
8. Section 25.401 is amended by revising the definitions for
``Canadian end product,'' ``Caribbean Basin country end product''
introductory text and paragraphs (a) and (b), ``Designated country,''
``Designated country end product,'' and ``Mexican end product,'';
definitions for ``European Community (EC) construction material,'' ``EC
country,'' and ``EC end product,'' are removed; and a definition for
``Designated country construction material,'' is added to read as
follows:
25.401 Definitions.
* * * * *
Canadian end product, as used in this subpart, means an article
that (a) is wholly the growth, product, or manufacture of Canada, or
(b) 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 Canada 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 transformed. The term refers to a
product offered for purchase under a supply contract, but for purposes
of calculating the value of the end product includes services (except
transportation services) incidental to its supply; provided, that the
value of those incidental services does not exceed that of the product
itself.
* * * * *
Caribbean Basin country end product, as used in this subpart, means
an article that (a) is wholly the growth, product, or manufacture of
the Caribbean Basin country, or (b) in the case of an article which
consists in whole or in part of materials from another country or
instrumentality, has been substantially transformed 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 refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the end product
includes services (except transportation services) incidental to its
supply; provided, that the value of those incidental services does not
exceed that of the product itself. The term excludes products that are
excluded from duty-free treatment for Caribbean countries under 19
U.S.C. 2703(b), which presently are--
* * * * *
Designated country, as used in this subpart, means a country or
instrumentality designated under the Trade Agreements Act of 1979 and
listed below:
Aruba Japan
Austria Lesotho
Bangladesh Liechtenstein
Belgium Luxembourg
Benin Malawi
Bhutan Maldives
Botswana Mali
Burkina Faso Nepal
Burundi Netherlands
Canada Niger
Cape Verde Norway
Central African Republic Portugal
Chad Republic of Korea
Comoros Rwanda
[[Page 67516]]
Denmark Somalia
Finland Spain
France Sudan
Gambia Sweden
Germany Switzerland
Greece Tanzania U.R.
Guinea Uganda
Haiti United Kingdom
Ireland Western Samoa
Israel Yemen
Italy
Designated country construction material, as used in this subpart,
means construction material that (a) is wholly the growth, product, or
manufacture of a designated country, or (b) in the case of a
construction material which consists in whole or in part of materials
from another country or instrumentality, has been substantially
transformed in a designated country into a new and different
construction material distinct from the materials from which it was
transformed.
Designated country end product, as used in this subpart, means an
article that (a) is wholly the growth, product, or manufacture of the
designated country, or (b) in the case of an article which consists in
whole or in part of materials from another country or instrumentality,
has been substantially transformed 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 refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes services
(except transportation services) incidental to its supply; provided,
that the value of those incidental services does not exceed that of the
product itself.
* * * * *
Mexican end product, as used in this subpart, means an article that
(a) is wholly the growth, product, or manufacture of Mexico, or (b) 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 Mexico 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 transformed. The term refers to a product offered for
purchase under a supply contract, but for purposes of calculating the
value of the end product includes services (except transportation
services) incidental to its supply; provided, that the value of those
incidental services does not exceed that of the product itself.
9. At 25.402 paragraphs (a) (1) through (3) and (c) are revised,
(a)(4) is removed, and (a) (5) and (6) are redesignated as (a) (4) and
(5). The revised text reads as follows:
25.402 Policy.
(a)(1) Executive Order 12260 requires the U.S. Trade Representative
to set the dollar threshold for application of the Trade Agreements
Act. The current threshold is $190,000 for supply and services
contracts and $7,311,000 for construction contracts. The thresholds
will be published in the Federal Register and will be distributed
through agency procedures on an expedited basis. When the value of the
proposed acquisition of an eligible product is estimated to be at or
over the dollar threshold, agencies shall evaluate offers for an
eligible product without regard to the restrictions of the Buy American
Act (see subpart 25.1) or the Balance of Payments Program (see subpart
25.3). When the value of the proposed construction contract is
estimated to be at or over the dollar threshold, agencies shall
evaluate offers of designated country construction materials without
regard to the restrictions of the Buy American Act (see subpart 25.2)
or the Balance of Payments Program (see subpart 25.3). When the value
of the proposed acquisition is estimated to be below the Trade
Agreements Act threshold, the restrictions of the Buy American Act or
the Balance of Payments Program shall be applied to foreign offers,
except as noted in paragraphs (a)(2) and (a)(3) of this section (see
25.105).
(2) As required by Article 15 of the U.S.-Israel Free Trade Area
Agreement, agencies other than the Department of Defense, Department of
Energy, Department of Transportation, the Bureau of Reclamation of the
Department of the Interior, the Federal Housing Finance Board, and the
Office of Thrift Supervision shall evaluate offers of Israeli end
products at or above $50,000 in amount without regard to the
restrictions of the Buy American Act (see subpart 25.1) or the Balance
of Payments Program (see subpart 25.3).
(3) As required by the North American Free Trade Agreement (NAFTA)
Implementation Act (Pub. L. 103-182, 107 Stat. 2057), agencies shall
evaluate offers of the following NAFTA country end products without
regard to the restrictions of the Buy American Act (see subpart 25.1)
or the Balance of Payments Program (see subpart 25.3):
(i) NAFTA country construction materials under construction
contracts with an estimated acquisition value of $6,500,000 or more.
(ii) Canadian end products under supply contracts with an estimated
value above $25,000 and Mexican end products under supply contracts
with an estimated value of $50,000 or more.
* * * * *
(c)(1) There shall be no acquisition of foreign end products
subject to the Trade Agreements Act unless the foreign end products are
eligible products, except as provided in paragraphs (c)(2) and (c)(3)
of this section.
(2) The prohibition in paragraph (c)(1) of this section does not
apply if offers of domestic end products or of eligible products are
either not received or are insufficient to fulfill the requirements.
(3) A waiver may be granted under section 302(b)(2) of the Trade
Agreements Act (19 U.S.C. 2512(b)(2)).
* * * * *
10. Section 25.403 is revised to read as follows:
25.403 Exceptions.
This subpart does not apply to--
(a) Acquisitions below the dollar thresholds in 25.402(a) (1)
through (3), respectively;
(b) Purchases under small or small disadvantaged business
preference programs;
(c)(1) Purchases of arms, ammunition or war materials, or purchases
indispensable for national security or for national defense purposes,
by the Department of Defense, as provided in departmental regulations;
(2) Purchases indispensable for national security or for national
defense purposes, subject to policies established by the U.S. Trade
Representative.
(d) Research and development contracts;
(e) Purchases of items for resale;
(f) Purchases under subpart 8.6, Acquisition from Federal Prison
Industries, Inc., and subpart 8.7, Acquisition from Nonprofit Agencies
Employing People Who Are Blind or Severely Disabled; or
(g) Purchases of products that are excluded from duty-free
treatment for Caribbean countries under 19 U.S.C. 2703 (b); which
presently are--
(1) Textiles and apparel articles that are subject to textile
agreements;
(2) Footwear, handbags, luggage, flat goods, work gloves, and
leather wearing apparel not designated as eligible articles for this
purpose of the Generalized System of Preferences under Title V of the
Trade Act of 1974;
(3) Tuna, prepared or preserved in any manner in airtight
containers;
(4) Petroleum, or any product derived from petroleum; and
(5) Watches and watch parts (including cases, bracelets and
straps),
[[Page 67517]]
of whatever type including, but not limited to, mechanical, quartz
digital or quartz analog, if such watches or watch parts contain any
material that is the product of any country to which the Tariff
Schedule of the United States (TSUS) column two rates of duty apply.
25.406 and 25.407 [Removed]
11. Sections 25.406 and 25.407 are removed and reserved.
12. Section 25.408 is amended by revising the section heading and
paragraphs (a)(2) and (4) to read as follows:
25.408 Solicitation provisions and contract clauses.
(a) * * *
(2) The clause at 52.225-9, Buy American Act--Trade Agreements--
Balance of Payments Program, in solicitations and contracts for
supplies where the contracting officer has determined that the
acquisition is subject to the Trade Agreements Act;
* * * * *
(4) The clause at 52.225-21, Buy American Act--North American Free
Trade Agreement (NAFTA) Implementation Act--Balance of Payments
Program, in solicitations and contracts for supplies where the
contracting officer has determined that the acquisition is not subject
to the Trade Agreements Act but is subject to NAFTA.
* * * * *
13. 25.1000 is amended by adding a new sentence at the end to read
as follows:
25.1000 Scope of subpart.
* * * For thresholds which are unique to individual agencies (e.g.,
Power Marketing Administration of the Department of Energy), see agency
regulations.
14. 25.1001 is revised to read as follows:
25.1001 Definitions.
As used in this subpart--
Sanctioned European Union (EU) construction means construction to
be performed in a sanctioned member state of the EU and the contract is
awarded by a contracting activity located in the United States or its
territories.
Sanctioned EU end product means an article that (a) is wholly the
growth product or manufacture of a sanctioned member state of the EU or
(b) in the case of an article which consists in whole or in part of
materials from another country or instrumentality, has been
substantially transformed into a new and different article of commerce
with a name, character, or use distinct from that from which it was so
transformed in a sanctioned member state of the EU. The term refers to
a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes services
(except transportation services) incidental to its supply; provided,
that the value of these incidental services does not exceed that of the
product itself.
Sanctioned EU services means services to be performed in a
sanctioned member state of the EU when the contract is awarded by a
contracting activity located in the United States or its territories.
Sanctioned member state of the EU means Austria, Belgium, Denmark,
Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Sweden,
and the United Kingdom.
15. 25.1002 is amended by revising paragraphs (a)(1), (2), and (3)
introductory text, removing (a)(3)(i), and redesignating (a)(3)(ii) as
(a)(3)(i) and revising it, and redesignating (a)(3)(iii) as (a)(3)(ii);
paragraph (c)(1) introductory text is amended by replacing ``EC'' with
``EU.'' The revised text reads as follows:
25.1002 Trade sanctions.
(a) * * *
(1) Sanctioned EU end products with an estimated acquisition value
less than $190,000.
(2) Sanctioned EU construction with an estimated acquisition value
less than $7,311,000.
(3) Sanctioned EU services as follows:
(i) Service contracts with an estimated acquisition value less than
$190,000.
* * * * *
16. 25.1003 is revised to read as follows:
25.1003 Contract clauses.
Except as provided in 25.1002(b) and (c)--
(a) Insert the clause at 52.225-18, European Union Sanctions for
End Products, in solicitations and contracts for supplies with an
estimated acquisition value less than $190,000.
(b) Insert the clause at 52.225-19, European Union Sanction for
Services, in solicitations and contracts for--
(1) Services with an estimated acquisition value less than
$190,000; and
(2) All services listed in FAR 25.1002(a)(3)(ii).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.212-5 [Amended]
17. 52.212-5 is amended by revising the date of the clause to read
``(JAN 1996)''; removing and reserving paragraph (b)(12); and in
(b)(13) and (b)(14) by removing the phrase ``Community Sanctions'' and
inserting ``Union Sanctions'' in its place.
18. 52.225-2 is amended by revising the introductory text, the
clause date, and paragraph (b) to read as follows:
52.225-2 Waiver of Buy American Act for Civil Aircraft and Related
Articles.
As prescribed in 25.109(c), insert the following provision:
Waiver of Buy American Act for Civil Aircraft and Related Articles (Jan
1996)
* * * * *
(b) The U.S. Trade Representative has waived applying the Buy
American Act to the acquisition of civil aircraft and related
articles (as defined in paragraph (a) of this clause) of countries
or instrumentaties that are parties to the Agreement on Trade in
Civil Aircraft. As of January 1, 1996, those countries and
instrumentalities include Canada, the European Union (Austria,
Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United
Kingdom), Japan, Norway, Romania, and Switzerland.
* * * * *
19. 52.225-9 is amended as follows:
a. by revising the clause date;
b. in the definition of ``Caribbean Basin country end product,''
which follows paragraph (a), the second sentence is revised, the third
sentence is removed, and the fourth sentence is amended to hyphenate
the word ``duty-free'';
c. in the definition of ``Designated country end product,'' the
second sentence is revised, and the third sentence is removed;
d. the definition ``Eligible product'' is added in alphabetical
order;
e. in the definition of ``NAFTA country end product,'' the second
sentence is revised, and the third sentence is removed; and
f. in paragraph (b) the fifth sentence is revised.
The revised text reads as follows:
52.225-9 Buy American Act--Trade Agreements--Balance of Payments
Program.
* * * * *
Buy American Act--Trade Agreements--Balance of Payments Program (Jan
1996)
(a) * * *
* * * * *
Caribbean Basin country end product, * * * The term refers to a
product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its
[[Page 67518]]
supply; provided, that the value of those incidental services does not
exceed that of the product itself. * * *
* * * * *
Designated country end product, * * * The term refers to a
product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply;
provided, that the value of those incidental services does not
exceed that of the product itself.
* * * * *
Eligible product, as used in this clause, means a designated,
North American Free Trade Agreement (NAFTA), or Caribbean Basin
country end product.
* * * * *
NAFTA country end product, * * * The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply; provided, that
the value of those incidental services does not exceed that of the
product itself.
(b) * * * Contractors may not supply a foreign end product for
the line items subject to the Trade Agreements Act unless--
(1) The foreign end product is an eligible product (see FAR
25.401);
(2) The Contracting Officer determines that offers of domestic
end products or of eligible products are either not received or are
insufficient to fulfill the Government's requirements; or
(3) A waiver is granted under section 302 of the Trade
Agreements Act of 1979 (see FAR 25.402(c)).
* * * * *
20. Section 52.225-15 is amended:
a. by revising the section and clause headings;
b. revising ``25.205(b)'' in the introductory text to read
``25.205(b)(1)'';
c. revising the clause date;
d. adding the definition ``Designated country construction
material'' in alphabetical order;
e. removing the definitions ``European Community construction
material'' and ``EC country'';
f. revising paragraph (b);
g. Amending paragraph (c) by replacing ``EC'' with ``designated
country'' and revising ``materialmen'' to read ``material men''; and
h. adding Alternate I.
The revised and added text reads as follows:
52.225-15 Buy American Act--Construction Materials under Trade
Agreements Act and North American Free Trade Agreement.
* * * * *
Buy American Act--Construction Materials under Trade Agreements Act and
North American Free Trade (Jan. 1996)
(a) * * *
Designated country construction material means a construction
material that (a) is wholly the growth, product, or manufacture of a
designated country (as defined at FAR 25.401), or (b) in the case of
a construction material which consists in whole or in part of
materials from another country or instrumentality, has been
substantially transformed in a designated country into a new and
different construction material distinct from the materials from
which it was transformed.
* * * * *
(b) The Buy American Act (41 U.S.C. 10) provides that the
Government give preference to domestic material. In addition, the
Trade Agreements Act and the North American Free Trade Agreement
(NAFTA) provide that designated country and NAFTA construction
materials are exempted from application of the Buy American Act.
Alternate I (Jan 1996). As prescribed in 25.205(b)(2),
substitute the following paragraphs (b) and (c) in place of
paragraphs (b) and (c) of the basic clause:
(b) The Buy American Act (41 U.S.C. 10) provides that the
Government give preference to domestic material. In addition, the
North American Free Trade Agreement (NAFTA) provides that NAFTA
construction materials are exempted from application of the Buy
American Act.
(c) The Contractor agrees that only domestic construction
materials or NAFTA country construction materials will be used by
the Contractor, subcontractors, material men and suppliers in the
performance of this contract, except for other foreign construction
materials, if any, listed in this contract.
52.225-16 and 52.225-17 [Removed]
21. 52.225-16 and 52.225-17 are removed and reserved.
22. 52.225-18 is amended:
a. by revising the section and clause headings;
b. by revising the clause date;
c. in paragraph (a), in the definition ``Sanctioned European
Community (EC) end product'' by revising ``European Community'' to read
``European Union'', revising ``EC'' to read ``EU'' (3 times), revising
the second sentence, and removing the third sentence;
d. in the definition ``Sanctioned member state of the EC'' ``EC''
is revised to read ``EU'';
e. in paragraph (b) by revising ``EC'' to read ``EU''. The revised
text reads as follows:
52.225-18 European Union Sanction for End Products.
* * * * *
European Union Sanction for End Products (Jan 1996)
* * * * *
(a) * * *
* * * * *
Sanctioned European Union (EU) end product * * * The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply;
provided, that the value of these incidental services does not
exceed that of the product itself.
* * * * *
23. Section 52.225-19 is amended by revising the section and clause
headings, revising the clause date, in paragraph (a) by removing
``Community (EC)'' and inserting in its place ``Union (EU)'', and
revising the term ``EC'' to read ``EU'' in paragraph (b). The revised
headings and date appear below.
52.225-19 European Union Sanction for Services.
* * * * *
European Union Sanction for Services (Jan 1996)
* * * * *
24. 52.225-21 is amended by revising the clause date; in paragraph
(a), in the definition ``NAFTA country end product,'' by revising the
second sentence and removing the third sentence; and by removing
paragraph (d) and redesignating paragraph ``(e)'' as ``(d)''. The
revised text reads as follows:
52.225-21 Buy American Act--North American Free Trade Agreement
Implementation Act--Balance of Payments Program.
* * * * *
Buy American Act--North American Free Trade Agreement Implementation
Act--Balance of Payments Program (Jan 1996)
(a) Definitions. * * *
* * * * *
NAFTA country end product * * * The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply; provided, that
the value of those incidental services does not exceed that of the
product itself.
* * * * *
[FR Doc. 95-31466 Filed 12-28-95; 8:45 am]
BILLING CODE 6820-EP-M
