June 11, 1997
In reply refer to
DFARS Case: 97-D023
DAR Tracking Number:97-00004
D L 97-013
MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING), SAF/AQC
ASSISTANT DEPUTY ASSISTANT SECRETARY OF THE ARMY (PROCUREMENT) IDIRECTOR OF CONTRACTING
DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY
SUBJECT: Designated Countries Under the Trade Agreements Act
We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) (Attachment 1) and issued a class deviation to the Federal Acquisition Regulation (FAR) to add Hong Kong as a designated country under the Trade Agreements Act of 1979, as directed by the United States Trade Representative (USTR). Further, for the Army Corps of Engineers, the class deviation deletes Singapore as a designated country under the Trade Agreements Act of 1979, as directed by the USTR
Effective immediately, all military departments and defense agencies shall add Hong Kong to the list under the definition of "Designated country" at FAR 25.401. Also effective immediately, the Army Corps of Engineers shall delete Singapore from this list.
Except for the Army Corps of Engineers, military departments and all defense agencies shall use the revised 52.225-15, Buy American Act--Construction Materials under Trade Agreements Act and North American Free Trade Agreement, clause at Attachment 2. The Army Corps of Engineers shall use the revised 52.225-15 clause at Attachment 3. The revised clauses add the appropriate definition of "Designated countries".
The final DFARS rule (Attachment 1) will be included in a future Defense Acquisition Circular. Except for the Army Corps of Engineers, the class deviation will remain in effect until the FAR is revised. For the Army Corps of Engineers, the class deviation will remain in effect for 2 years, until June 30, 1999, or until the USTR removes the restriction on the designation of Singapore, whichever event occurs first.
Eleanor R Spector
Director, Defense Procurement
Dfars Case 97-D023
PART 252 -- SOLICITATION PROVISIONS AND CLAUSES
1. The clause date is changed to Jul, 1997
2. Hong Kong is added to (a)(4), to read:
"Designated country" means:
The following deviation is authorized for FAR 52.225-15
52.225-15 Buy American Act - Construction Materials under Trade Agreements Act and North American Free Trade Agreement.
As prescribed in 25.207(d), insert the following clause:
BUY AMERICAN ACT - CONSTRUCTION MATERIALS UNDER TRADE
AGREEMENTS ACT AND NORTH AMERICAN FREE TRADE AGREEMENT (MAY1997)
(a) Definitions. As used in this clause--
"Components" means those articles, materials, and supplies incorporated directly into construction materials.
"Construction material" means an article, material, or supply brought to the construction site for incorporation into the building or work. Construction material also includes an item brought to the site pre-assembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, which are discrete systems incorporated into a public building or work and which are produced as a complete system, shall be evaluated as a single and distinct construction material regardless of when or how the individual parts or components of such systems are delivered to the construction site.
["Designated country" means:
"Designated country construction material" means a construction material that (a) is wholly the growth, product, or manufacture of a designated country[ ], or (b) in the case of a construction material which consists in whole or in part of materials from another country or instrumentality, has been substantially transformed in a designated country into a new and different construction material distinct from the materials from which it was transformed.
(Attachment 3 is the same as above, except thet Singapore is deleted)