[Federal Register Volume 61, Number 141 (Monday, July 22, 1996)]
[Rules and Regulations]
[Pages 37841-37842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18431]
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DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
[DFARS Case 96-D312]
Defense Federal Acquisition Regulation Supplement; Petroleum
Products From Caribbean Basin Countries
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for comment.
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SUMMARY: The Director of Defense Procurement has issued an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to fully implement Section 8094 of the Fiscal Year 1994 Defense
Appropriations Act (Public Law 103-139). Section 8094 requires that the
Department of Defense consider all qualified bids from any eligible
country under the Caribbean Basin Economic Recovery Act as if they were
offers from designated countries under the Trade Agreements Act.
DATES: Effective date: July 22, 1996.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before September 20, 1996, to
be considered in the formulation of the final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-
3062. Telefax number (703) 602-0350. Please cite DFARS Case 96-D312 in
all correspondence related to this issue.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule implements Section 8094 of the Fiscal Year 1994
Defense Appropriations Act (Pub. L. 103-139). This requirement was
originally implemented at DFARS 225.401, 225.403(m)(4), and 225.403-70
under DFARS Case 93-D312. The final rule was published in the Federal
Register on May 5, 1994 (59 FR 23169). The implementation at DFARS
225.403(m)(4) was limited to contracts awarded during fiscal year 1994.
Because Section 8094 of Pub. L. 103-139 does not contain time limits,
this rule removes the time limit at 225.403(m)(4). In addition, this
rule amends DFARS 225.403-70 and 252.225-7007 to clarify that the
definition of Caribbean Basin country end products includes petroleum
and any end product derived from petroleum.
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
petroleum and products derived from petroleum are already subject to
the Trade Agreements Act. The consideration of Caribbean Basin country
offers of petroleum and products derived from petroleum is not expected
to significantly affect the petroleum market in this country.
Furthermore, the Trade Agreements Act and the Caribbean Basin Economic
Recovery Act apply only to acquisitions exceeding $190,000 in value. An
initial Regulatory Flexibility Analysis has therefore not been
performed. Comments are invited from small businesses and other
interested parties. Comments from small entities concerning the
affected DFARS subparts will be considered in accordance with Section
610 of the Act. Such comments must be submitted separately and cite
DFARS Case 96-D312 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply. This interim rule does
not impose any new information collection requirements which require
the approval of 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 that compelling reasons exist to promulgate this interim
rule prior to affording the public an opportunity to comment. This
action is necessary to fully implement Section 8094 of the Fiscal Year
1994 Defense Appropriations Act (Pub. L. 103-139). Comments received in
response to the publication of this interim rule will be considered in
formulating the final rule.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Michele P. Peterson,
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 48 CFR Chapter 1.
PART 225--FOREIGN ACQUISITION
2. Section 225.403 is amended by removing paragraph (m)(4) and by
adding in its place paragraph (g)(4) to read as follows:
225.403 Exceptions.
* * * * *
(g) (4) In accordance with Section 8094 of the Fiscal Year 1994
Defense Appropriations Act (Public Law 103-139), the exception for
petroleum and any product derived from petroleum does not apply.
3. Section 225.403-70 is amended by revising the introductory text
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. The definition of Caribbean Basin country end products in
FAR 25.401 excludes those end products which are not eligible for duty-
free treatment
[[Page 37842]]
under 19 U.S.C. 2703(b). However, 225.401 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 which are eligible for designated and NAFTA
countries, but are not presently eligible for Caribbean Basin
countries.
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 252.225-7007 is amended by revising the clause date to
read ``(JUL 1996)''; by revising the introductory text of paragraph
(a)(1)(ii); by adding the word ``and'' at the end of paragraph
(a)(1)(ii)(C); by revising paragraph (a)(1)(ii)(D); and by removing
paragraph (a)(1)(ii)(E). The revised text reads as follows:
252.225-7007 Trade Agreements.
* * * * *
(a)* * *
(1)* * *
(ii) Excludes products, other than petroleum and any product
derived from petroleum, that are not granted duty-free treatment under
the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)). These
exclusions presently consist of--
* * * * *
(D) Watches and watch parts (including cases, bracelets, and
straps) of whatever type, including, but not limited to, mechanical,
quartz digital, or quartz analog, if such watches or watch parts
contain any material which is the product of any country to which
Harmonized Tariff Schedule column 2 rates of duty apply.
* * * * *
[FR Doc. 96-18431 Filed 7-19-96; 8:45 am]
BILLING CODE 5000-04-M
