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-D319
                                                          D. L. 97-006



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:    Authority to Waive Foreign Purchase Restrictions



     We have amended the Defense Federal Acquisition Regulation
Supplement (DFARS) Subpart 225.70, to implement Section 810 of
the National Defense Authorization Act of Fiscal Year 1997 (Pub.
L. 104-201).  Section 810 adds new authority to waive the
restrictions on foreign purchases at 10 U.S.C. 2534.


     The attached interim 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-D319
Authority to Waive Foreign Purchase Restrictions
Interim Rule

PART 225--FOREIGN ACQUISITION

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SUBPART 225.70 - AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER
STATUTORY RESTRICTIONS ON FOREIGN [ACQUISITION]

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225.7005 Waiver of certain restrictions.
Where provided for elsewhere in this subpart, the restrictions on certain foreign purchases under 10 U.S.C. 2534 may be waived as follows:

(a) The head of the contracting activity may waive the restriction on a case-by-case basis upon execution of a determination and findings that any of the following applies:

(b) The restriction is waived when it would cause unreasonable costs. The cost of the item of U.S. or Canadian origin is unreasonable if it exceeds 150 percent of the offered price, inclusive of duty, or items which are not of U.S. or Canadian origin.

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225.7019 Restrictions on ball and roller bearings.

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225.7019-3 Waiver.

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(a)(1)(iv) Application of the restriction would impede cooperative programs entered into between DoD and a foreign country [or would impede the reciprocal procurement of defense items under a memorandum of understanding providing for reciprocal procurement of defense items under 225.872], and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country;

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