DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
January 17, 1997

 
ACQUISITION AND
 TECHNOLOGY

DP(DAR)

                                                          In reply refer to
                                                          DFARS Case: 96-D030
                                                          D. L. 97-005



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:    Metalworking Machinery - Trade Agreements


      We have amended the Defense Federal Acquisition Regulation
Supplement (DFARS) Subpart 225.403-70, to reflect expiration on
October 1, 1996, of the restriction on machine tools in 10 U.S.C.
2534.  Departmental Letter 96-331 deleted implementation of the
machine tool restriction at DFARS 225.7004 and associated clauses
252.225-7017 and 252.225-7040.  This final rule makes all
metalworking machinery products in Federal Supply Group 34
subject to trade agreements acts, by removing the exception for
those machine tools which were previously restricted by 10 U.S.C.
2534.


     The attached final DFARS rule is effective immediately and
will be included in a future Defense Acquisition Circular.











                                                    /s/

                                             Eleanor R. Spector
                                             Director, Defense Procurement

DFARS CASE 96-D030
Metalworking Machinery - Trade Agreements
Final Rule

PART 225 - FOREIGN ACQUISITION

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SUBPART 225.4 - Trade Agreements

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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 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.

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