DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
July 22,1996

 
ACQUISITION AND
 TECHNOLOGY

DP(DAR)

                                                                  In reply refer to
                                                                  DFARS Case: 96-D312
                                                                  D. L. 96-015



MEMORANDUM FOR  DIRECTORS OF DEFENSE AGENCIES
                    DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                      ASN(RD&A)/ABM
                    DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                      (CONTRACTING), SAF/AQC
                    DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                    DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS
                      AGENCY



SUBJECT:        Petroleum Products from Caribbean Basin Countries



      We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to 
fully implement Section 8094 of the Fiscal Year 1994 Defense Appropriations Act 
(Pub. L. 103-139).  Section 8094 requires the Department of Defense to consider all 
qualified bids from any eligible countries under the Caribbean Basin Economic Recovery 
Act as if they were offers from designated countries under the Trade Agreements Act.

      This interim DFARS rule is effective immediately and will be published in a 
future Defense Acquisition Circular.
 






                                                    /s/

                                             Eleanor R. Spector
                                             Director, Defense Procurement

Attachment

cc: DSMC, Ft. Belvoir


DFARS Case 96-D312
Interim Rule

PART 225 - FOREIGN ACQUISITION

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SUBPART 225.4 - TRADE AGREEMENTS

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225.403 Exceptions.

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([g])(4) In accordance with Section 8094 of the Fiscal Year 1994 Defense Appropriations Act (Pub. L. 103-139), the exception for petroleum and any product derived from petroleum does not apply.

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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 under 19 U.S.C. 2703(b). [However, 225.401 expands the definition of Caribbean Basin country end products in 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.

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PART 252 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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252.225-7007 Trade Agreements.

As presecribed in 225.408(a)(2), use the following clause:

Trade Agreement ([JUL 1996])

(a)Definitions.

(1) "Caribbean Basin country end product" --

(i) Means an article that --

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(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 -

(A) Textiles and apparel articles that are subject to textile agreements;

(B) Footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel not designated as eligible articles for the purpose of the Generalized System of Preferences under Title V of the Trade Act of 1974;

(C) Tuna, prepared or preserved in any manner in airtight contrainers; [and]

(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 contian any material which is the product of any country to which [Harmonized Tariff Schedule] column 2 rates of duty apply.

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