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<?xml version="1.0" encoding="UTF-8"?>
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<!DOCTYPE dita
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ditaarch:DITAArchVersion="1.2"
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class="- topic/topic concept/concept ">
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<title class="- topic/title ">
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<ph props="autonumber" class="- topic/ph ">252.225-7001</ph> Buy American and Balance of Payments Program.</title>
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<conbody class="- topic/body concept/conbody ">
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<p id="MznLaK" class="- topic/p ">
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<i class="+ topic/ph hi-d/i ">Basic</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
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base="DFARS-225.1101"
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outputclass="fm:ParaNumOnly"
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class="- topic/xref ">225.1101</xref> (2)(i) and (2)(ii),
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<!DOCTYPE dita PUBLIC "-//OASIS//DTD DITA Composite//EN" "ditabase.dtd">
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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/" ditaarch:DITAArchVersion="1.2" domains="(topic task) (topic concept) (topic concept glossentry) (topic concept glossgroup) (topic reference) (topic troubleshooting++task) (topic task) (topic abbrev-d) a(props deliveryTarget) (topic equation-d) (topic hazard-d) (topic hi-d) (topic indexing-d) (topic markup-d) (topic mathml-d) (topic pr-d) (topic relmgmt-d) (topic sw-d) (topic svg-d) (topic ui-d) (topic ut-d) (topic markup-d xml-d) (topic task strictTaskbody-c) ">
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<concept id="DFARS_252.225-7001" ditaarch:DITAArchVersion="1.2" class="- topic/topic concept/concept ">
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<title class="- topic/title "><ph props="autonumber" class="- topic/ph ">252.225-7001</ph> Buy American and Balance of Payments Program.</title>
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<conbody class="- topic/body concept/conbody ">
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<p id="MznLaK" class="- topic/p "><i class="+ topic/ph hi-d/i ">Basic</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101" base="DFARS-225.1101" outputclass="fm:ParaNumOnly" class="- topic/xref ">225.1101</xref> (2)(i) and (2)(ii),
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use the following clause:</p>
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<p id="ybEDIU" outputclass="Ctr_SmCaps" class="- topic/p ">BUY
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AMERICAN AND BALANCE OF PAYMENTS PROGRAM—BASIC (JAN 2023)</p>
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<ol>
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<p id="VtfmmL" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(a)</ph><i class="+ topic/ph hi-d/i ">Definitions.</i>As
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used in this clause—</p>
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<p id="GsIeeE" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
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<ol>
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<p id="tUHpUJ" outputclass="List2" class="- topic/p ">
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(1) Means any item of supply (including construction material) that is—</p>
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<p id="AKuBlz" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> A commercial product (as defined in paragraph (1) of the definition of “commercial product” in section 2.101 of the Federal Acquisition Regulation);</p>
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<p id="kkBdfw" outputclass="List3" class="- topic/p ">
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(ii) Sold in substantial quantities in the commercial marketplace; and</p>
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<p id="UILxdx" outputclass="List3" class="- topic/p ">
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(iii) Offered to the Government, under a contract or subcontract at any tier,
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without modification, in the same form in which it is sold in the commercial
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marketplace; and</p>
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<p id="poihxX" outputclass="List2" class="- topic/p ">
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(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as
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agricultural products and petroleum products.</p>
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<p id="hEdKFl" class="- topic/p ">“Component” means an article, material, or supply
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incorporated directly into an end product.</p>
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<p id="Hkjmzq" class="- topic/p ">“Domestic end product” means—</p>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> For an end product that does not
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consist wholly or predominantly of iron or steel or a combination of both—</p>
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<p id="RKWwjq" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> An unmanufactured end product mined or produced in the United States;
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or</p>
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<p id="PuHAlL" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> An end product manufactured
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in the United States if—</p>
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<p id="aGnoRl" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(A)</ph> The cost of its qualifying
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country components and its components that are mined, produced, or manufactured in the
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United States exceeds 55 percent of the cost of all
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its components. The cost of components includes transportation costs to the place of
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@@ -53,17 +71,36 @@ in the United States if—</p>
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produced, or manufactured in the United States (regardless of its source in fact) if the
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end product in which it is incorporated is manufactured in the United States and the
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component is of a class or kind for which the Government has determined that—</p>
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<p id="gjAMbv" outputclass="List6" class="- topic/p "><i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
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reasonably available commercial quantities of a satisfactory quality
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are not mined, produced, or manufactured in the United States; or</p>
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<p id="VmWSvy" outputclass="List6" class="- topic/p "><i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
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with the public interest to apply the restrictions of the Buy American
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statute; or</p>
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<p id="pevFYT" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(B)</ph> The end product is a
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COTS item.</p>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> For an end product that consists
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wholly or predominantly of iron or steel or a combination of both, an end product
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manufactured in the United States, if the cost of iron and steel not produced in the
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United States or a qualifying country constitutes less than 5 percent of the cost of all
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contains multiple components, the cost of all the materials used in such end product is
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calculated in accordance with the explanation of cost of components in paragraph
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(1)(ii)(A) of this definition.</p>
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<p id="ZrWMtP" class="- topic/p ">“End product” means those articles, materials,
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and supplies to be acquired under this contract for public use.</p>
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<p id="lBadMe" class="- topic/p ">“Foreign end product” means an end product other
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than a domestic end product.</p>
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<p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
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means that the cost of the iron and steel content exceeds 50 percent of the total cost
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of all its components. The cost of iron and steel is the cost of the iron or steel mill
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products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings
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utilized in the manufacture of the product and a good faith estimate of the cost of iron
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or steel components excluding COTS fasteners.</p>
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<p id="AxdYAO" class="- topic/p ">“Qualifying country” means a country with a reciprocal
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defense procurement memorandum of understanding or international agreement
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with the United States in which both countries agree to remove barriers
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to purchases of supplies produced in the other country or services
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@@ -98,116 +135,144 @@ performed by sources of the other country, and the memorandum or
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agreement complies, where applicable, with the requirements of section
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36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
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2457. Accordingly, the following are qualifying countries:</p>
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<p id="EeWfhZ" class="- topic/p ">Australia</p>
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<p id="NewjLg" class="- topic/p ">Austria</p>
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<p id="EHrkFU" class="- topic/p ">Belgium</p>
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<p id="QvRgHY" class="- topic/p ">Canada</p>
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<p id="FIiXpt" class="- topic/p ">Czech Republic</p>
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<p id="jXGCuz" class="- topic/p ">Denmark</p>
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<p id="AljBKc" class="- topic/p ">Egypt</p>
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<p id="enCZef" class="- topic/p ">Estonia</p>
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<p id="iQMuIa" class="- topic/p ">Finland</p>
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<p id="OqWgLO" class="- topic/p ">France</p>
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<p id="igLWfG" class="- topic/p ">Germany</p>
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<p id="lmmyhh" class="- topic/p ">Greece</p>
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<p id="ZFUdAc" class="- topic/p ">Israel</p>
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<p id="CIelfi" class="- topic/p ">Italy</p>
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<p id="ExgFov" class="- topic/p ">Japan</p>
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<p id="GVLIEq" class="- topic/p ">Latvia</p>
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<p id="6keq156g" class="- topic/p ">
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Lithuania
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</p>
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<p id="vHxCVx" class="- topic/p ">Luxembourg</p>
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<p id="LsABpn" class="- topic/p ">Netherlands</p>
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<p id="clDRqs" class="- topic/p ">Norway</p>
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<p id="QeCURe" class="- topic/p ">Poland</p>
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<p id="dtBNKI" class="- topic/p ">Portugal</p>
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<p id="XzxbHf" class="- topic/p ">Slovenia</p>
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<p id="RAYyWb" class="- topic/p ">Spain</p>
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<p id="qdJzwO" class="- topic/p ">Sweden</p>
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<p id="pZHdPi" class="- topic/p ">Switzerland</p>
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<p id="JyQkVx" class="- topic/p ">Turkey</p>
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<p id="QZKlmy" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
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<p id="EpJqLL" class="- topic/p ">“Qualifying country component” means a component
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mined, produced, or manufactured in a qualifying country.</p>
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<p id="TggfJc" class="- topic/p ">“Qualifying country end product” means—</p>
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<p id="OqpMKd" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> An unmanufactured end product
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mined or produced in a qualifying country; or</p>
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<p id="kAVpUq" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> An end product manufactured in a
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qualifying country if —</p>
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<p id="MzvGNN" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> The cost of the following types
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of components exceeds 50 percent of the cost of all its components:</p>
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<p id="onFtfj" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(A)</ph> Components mined, produced, or
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manufactured in a qualifying country.</p>
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<p id="NygyIy" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(B)</ph> Components mined, produced, or
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manufactured in the United States.</p>
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<p id="wbSVxf" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(C)</ph> Components of foreign origin of a
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class or kind for which the Government has determined that sufficient and reasonably
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available commercial quantities of a satisfactory quality are not mined, produced, or
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manufactured in the United States. Components of unknown
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origin are treated as foreign; or</p>
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<p id="aQxSfo" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> The end product is a COTS
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item.</p>
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<p id="juTfrp" class="- topic/p ">“United States” means the 50 States, the District
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of Columbia, and outlying areas.</p>
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<p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
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iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
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<p id="BNxbgo" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(b)</ph> This clause implements
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41 U.S.C chapter 83, Buy American. In accordance with 41 U.S.C.
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1907, the component test of the Buy American statute is waived for
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an end product that is a COTS item (see section 12.505(a)(1) of
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the Federal Acquisition Regulation). Unless otherwise specified,
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this clause applies to all line items in the contract.</p>
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<p id="bRmsgb" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(c)</ph> The Contractor shall
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deliver only domestic end products unless, in its offer, it specified
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delivery of other end products in the Buy American—Balance of Payments
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Program Certificate provision of the solicitation. If the Contractor
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certified in its offer that it will deliver a qualifying country
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end product, the Contractor shall deliver a qualifying country end
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product or, at the Contractor
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product or, at the Contractor's option, a domestic end product.</p>
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<p id="BfdFiZ" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(d)</ph> The contract price does
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not include duty for end products or components for which the Contractor
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will claim duty-free entry.</p>
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outputclass="fm:ParaNumOnly"
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class="- topic/xref ">225.1101</xref> (2)(i)
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</ol>
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<p id="aLKAxk" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
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<section outputclass="Alternate" class="- topic/section ">
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<p id="XfMreY" class="- topic/p "><i class="+ topic/ph hi-d/i ">Alternate
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I</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101" base="DFARS-225.1101" outputclass="fm:ParaNumOnly" class="- topic/xref ">225.1101</xref> (2)(i)
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and (2)(iii), use the following clause, which adds “South Caucasus/Central
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and South Asian (SC/CASA) state” and “South Caucasus/Central and
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South Asian (SC/CASA) state end product” to paragraph (a), and uses
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different paragraphs (b) and (c) than the basic clause:</p>
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<p id="ecSEdr" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN AND BALANCE OF
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PAYMENTS PROGRAM—ALTERNATE I (JAN 2023)</p>
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<p id="GqkIdK" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As
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used in this clause—</p>
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<p id="Mzkusa" class="- topic/p ">“Commercially available
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off-the-shelf (COTS) item”—</p>
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<p id="YYJfSs" outputclass="List2" class="- topic/p ">
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(1) Means any item of supply (including construction material) that is—</p>
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<p id="tNnwRQ" outputclass="List3" class="- topic/p "> (i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in section 2.101 of the Federal Acquisition Regulation);</p>
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<p id="YZZQxF" outputclass="List3" class="- topic/p ">
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(ii) Sold in substantial quantities in the commercial marketplace; and</p>
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<p id="MnXxAH" outputclass="List3" class="- topic/p ">
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(iii) Offered to the Government, under a contract or subcontract at any
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tier, without modification, in the same form in which it is sold in the commercial
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marketplace; and</p>
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<p id="EVXsBB" outputclass="List2" class="- topic/p ">(2) Does not include bulk cargo,
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as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum
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products.</p>
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<p id="yUEYGq" class="- topic/p ">“Component” means an
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article, material, or supply incorporated directly into an end product.</p>
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<p id="qIiTeK" class="- topic/p ">“Domestic end product” means—</p>
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<p outputclass="List2" class="- topic/p ">(1) For an end product that does not
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consist wholly or predominantly of iron or steel or a combination of both—]</p>
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<p id="wHiwBP" outputclass="List3" class="- topic/p ">(i) An unmanufactured end product that
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has been mined or produced in the United States; or</p>
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<p id="ObXDqU" outputclass="List3" class="- topic/p ">(ii) An end product manufactured in the
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United States if—</p>
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<p id="NAXvvb" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
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country components and its components that are mined, produced, or manufactured in
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the United States exceeds 55 percent of the cost
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of all its components. The cost of components includes transportation costs to the
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@@ -219,17 +284,15 @@ United States if—</p>
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source in fact) if the end product in which it is incorporated is manufactured in the
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United States and the component is of a class or kind for which the Government has
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determined that—</p>
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<i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
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<p id="EGirCU" outputclass="List6" class="- topic/p "><i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
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reasonably available commercial quantities of a satisfactory quality
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are not mined, produced, or manufactured in the United States; or</p>
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<i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
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<p id="AWUxbT" outputclass="List6" class="- topic/p "><i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
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with the public interest to apply the restrictions of the Buy American
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statute; or</p>
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<p id="ZwgwVB" outputclass="List4" class="- topic/p ">(B) The end
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product is a COTS item.</p>
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<p outputclass="List2" class="- topic/p ">(2) For an end product that consists
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wholly or predominantly of iron or steel or a combination of both, an end product
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manufactured in the United States, if the cost of iron and steel not produced in the
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United States or a qualifying country constitutes less than 5 percent of the cost of
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@@ -246,18 +309,18 @@ product is a COTS item.</p>
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origin are treated as foreign. If the end product contains multiple components, the
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cost of all the materials used in such end product is calculated in accordance with
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the explanation of cost of components in paragraph (1)(ii)(A) of this definition.</p>
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<p id="FEvbBU" class="- topic/p ">“End product” means
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those articles, materials, and supplies to be acquired under this
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contract for public use.</p>
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<p id="IGZCfd" class="- topic/p ">“Foreign end product”
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means an end product other than a domestic end product.</p>
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<p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
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means that the cost of the iron and steel content exceeds 50 percent of the total
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cost of all its components. The cost of iron and steel is the cost of the iron or
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steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or
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forgings utilized in the manufacture of the product and a good faith estimate of the
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cost of iron or steel components excluding COTS fasteners.</p>
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<p id="wvLTqi" class="- topic/p ">“Qualifying country” means a country with a reciprocal
|
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defense procurement memorandum of understanding or international agreement
|
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with the United States in which both countries agree to remove barriers
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to purchases of supplies produced in the other country or services
|
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@@ -265,65 +328,65 @@ performed by sources of the other country, and the memorandum or
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agreement complies, where applicable, with the requirements of section
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36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
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2457. Accordingly, the following are qualifying countries:</p>
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<p id="QUXnVh" class="- topic/p ">Australia</p>
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<p id="kaXrWM" class="- topic/p ">Austria</p>
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<p id="bJUfPz" class="- topic/p ">Belgium</p>
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<p id="Bikqir" class="- topic/p ">Canada</p>
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<p id="ShgGSr" class="- topic/p ">Czech
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Republic</p>
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<p id="ielqTt" class="- topic/p ">Denmark</p>
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<p id="MIPXAi" class="- topic/p ">Egypt</p>
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<p id="ZRUuSt" class="- topic/p ">Estonia</p>
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+
<p id="njDHOH" class="- topic/p ">Finland</p>
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<p id="uJGFGt" class="- topic/p ">France</p>
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<p id="MgJkZh" class="- topic/p ">Germany</p>
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<p id="SoCDXc" class="- topic/p ">Greece</p>
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<p id="hsuhPz" class="- topic/p ">Israel</p>
|
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<p id="CQGFXx" class="- topic/p ">Italy</p>
|
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+
<p id="gYUCTR" class="- topic/p ">Japan</p>
|
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+
<p id="OoOkgk" class="- topic/p ">Latvia</p>
|
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+
<p id="du4schf" class="- topic/p ">
|
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Lithuania
|
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</p>
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-
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+
<p id="vwvEWd" class="- topic/p ">Luxembourg</p>
|
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+
<p id="OcUajx" class="- topic/p ">Netherlands</p>
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+
<p id="gELuld" class="- topic/p ">Norway</p>
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+
<p id="PquBXR" class="- topic/p ">Poland</p>
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<p id="qdHNTZ" class="- topic/p ">Portugal</p>
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+
<p id="mbhUlY" class="- topic/p ">Slovenia</p>
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+
<p id="BHaCty" class="- topic/p ">Spain</p>
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<p id="QIAftT" class="- topic/p ">Sweden</p>
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+
<p id="yGvyGU" class="- topic/p ">Switzerland</p>
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+
<p id="giLAnc" class="- topic/p ">Turkey</p>
|
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<p id="qmdnFS" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
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<p id="eaxtDV" class="- topic/p ">“Qualifying country component” means a component
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mined, produced, or manufactured in a qualifying country.</p>
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-
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-
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<p id="FStiRL" class="- topic/p ">“Qualifying country end product” means—</p>
|
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<p id="Gnyynn" outputclass="List2" class="- topic/p ">(1) An unmanufactured end product
|
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mined or produced in a qualifying country; or</p>
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-
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+
<p id="alSkqL" outputclass="List2" class="- topic/p ">(2) An end product manufactured in
|
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a qualifying country if —</p>
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|
-
|
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+
<p id="JbFldQ" outputclass="List3" class="- topic/p ">(i) The cost of the following
|
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types of components exceeds 50 percent of the cost of all its components:</p>
|
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|
-
|
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+
<p id="AxtCEb" outputclass="List4" class="- topic/p ">(A) Components mined, produced, or
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|
manufactured in a qualifying country.</p>
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<p id="YRwazK" outputclass="List4" class="- topic/p ">(B) Components mined, produced, or
|
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|
manufactured in the United States.</p>
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-
|
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+
<p id="rqCeYP" outputclass="List4" class="- topic/p ">(C) Components of foreign origin
|
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|
of a class or kind for which the Government has determined that sufficient and
|
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reasonably available commercial quantities of a satisfactory quality are not mined,
|
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|
produced, or manufactured in the United States. Components of unknown origin are treated as foreign; or</p>
|
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-
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<p id="xXxfnO" outputclass="List3" class="- topic/p ">(ii) The end product is a COTS
|
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|
item.</p>
|
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-
|
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<p id="WOxmFZ" class="- topic/p ">“South Caucasus/Central and
|
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|
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
|
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|
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
|
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|
-
|
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|
+
<p id="EShJbI" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
|
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state end product” means an article that—</p>
|
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|
-
|
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|
+
<p id="QTrclR" outputclass="List2" class="- topic/p ">
|
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(1) Is wholly the growth, product, or manufacture of an SC/CASA state;
|
|
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|
or</p>
|
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-
|
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|
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<p id="wpDiSA" outputclass="List2" class="- topic/p ">
|
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(2) In the case of an article that consists in whole or in part of materials
|
|
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|
from another country, has been substantially transformed in an SC/CASA state into a
|
|
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|
new and different article of commerce with a name, character, or use distinct from
|
|
@@ -332,26 +395,26 @@ state end product” means an article that—</p>
|
|
|
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|
the value of the end product includes services (except transportation services)
|
|
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|
incidental to its supply, provided that the value of those incidental services does
|
|
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|
not exceed the value of the product itself.</p>
|
|
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|
-
|
|
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|
+
<p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
|
|
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|
iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
|
|
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|
-
|
|
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|
+
<p id="BQEWkF" class="- topic/p ">“United States”
|
|
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|
means the 50 States, the District of Columbia, and outlying areas.</p>
|
|
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|
-
|
|
402
|
+
<p id="QVCiLA" outputclass="List1" class="- topic/p ">(b) This clause implements
|
|
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|
the Balance of Payments Program. Unless otherwise specified, this
|
|
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404
|
clause applies to all line items in the contract.</p>
|
|
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|
-
|
|
405
|
+
<p id="KyWHpj" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver only
|
|
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|
domestic end products unless, in its offer, it specified delivery
|
|
344
407
|
of other end products in the Buy American Balance of Payments Program
|
|
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|
Certificate provision of the solicitation. If the Contractor certified
|
|
346
409
|
in its offer that it will deliver a qualifying country end product
|
|
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|
or an SC/CASA state end product, the Contractor shall deliver a
|
|
348
411
|
qualifying country end product, an SC/CASA state end product, or,
|
|
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|
-
at the Contractor
|
|
350
|
-
|
|
412
|
+
at the Contractor's option, a domestic end product.</p>
|
|
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|
+
<p id="DmcmOL" outputclass="List1" class="- topic/p ">(d) The contract price does not include
|
|
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|
duty for end products or components for which the Contractor will
|
|
352
415
|
claim duty-free entry.</p>
|
|
353
|
-
|
|
354
|
-
|
|
355
|
-
|
|
356
|
-
|
|
416
|
+
<p id="KGemeg" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
|
|
417
|
+
</section>
|
|
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|
+
</conbody>
|
|
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|
+
</concept>
|
|
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|
</dita>
|