Trade Agreements Act China

Before entering the case, a little background on the Trade Agreements Act (TAA). If the TAA applies to a U.S. government contract, the contractor can supply a product from a foreign country if that country has a free trade agreement with the United States. In other words, the U.S. government will not discriminate 20/10 on the products of its free trade partners when it buys supplies in certain circumstances (for example. B the contract is above the TAA application threshold). In this regard, the Tribunal found that domestic end products are classified as products that can be purchased under the AD clause under the BAA and that products „made in the United States” may be purchased regardless of the source of the underlying components and components, even if they are not significantly converted to the United States or a privileged alien. Under the TAA, „substantial processing” is the test for determining the country of origin of a product and its eligibility for waiving the BAA preference for domestic products. Accordingly, the decision removes the anomaly of preferring domestic products to non-eligible foreign products when other trade agreement clauses are used and prohibits the purchase of the same products in contracts above the TA threshold. Under long-standing purchasing rules, buybacks of products other than domestic finished products by the U.S. government are subject to discriminatory preferences or prohibitions, based on the value of the dollar of purchase and the interaction of two separate statutes: the BAA and the TAA. According to the BAA, as implemented in the Federal Acquisition Regulation (FAR), a „national final product” is defined as „[a] n produced in the United States if -i) it exceeds 50% of the cost of its components operated, manufactured or manufactured in the United States.

or (ii) [d] the final product is a [standard commercial product (COTS).” 25,003. The TAA authorizes the Office of the US Trade Representative to waive the BAA`s preference for domestic final products for products derived from trade agreements, so that authorized foreign products can be treated in the same way as domestic end products. In order to encourage the signing of trade agreements with the United States, the TAA also prohibits the purchase by the U.S. government of products from a foreign country for which the TAA does not waive BAA preferences, unless a qualified product is available.

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