OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON DC 20301-3000

June 11, 1997

DP (DAR)

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,

ASN(RD&A) /ABM

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

Attachments

Dfars Case 97-D023

PART 252 -- SOLICITATION PROVISIONS AND CLAUSES

252.225-7007

1. The clause date is changed to Jul, 1997

2. Hong Kong is added to (a)(4), to read:

"Designated country" means:

Aruba

Austria

Bangladesh

Belgium

Benin

Bhutan

Botswana

Burkina Faso

Burundi

Canada

Cape Verde

Central African Republic

Chad

Comoros

Denmark

Djibouti

Equatorial Guinea

Finland

France

Gambia

Germany

Greece

Guinea

Guinea-Bissau

Haiti

[Hong Kong]

Ireland

Israd

Italy

Japan

Kiribati

Lesotho

Liechtenstein

Luxembourg

Malawi

Maldives

Mali

Mozambique

Nepal

Netherlands

Niger]

_________________________

Norway

Portugal

Republic of Korea

Rwanda

Sao Tome and Principe

Sierra Leone

Singapore

Somalia

Spain

Sweden

Switzerland

Tanzania U.R.

Togo

Thvalu

Uganda

United Kingdom

Vanuatu

Western Samoa

Yemen

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)

[DEVIATION]

(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:

Aruba

Austria

Bangladesh

Belgium

Benin

Bhutan

Botswana

Burkina Faso

Burundi

Canada

Cape Verde

Central African Republic

Chad

Comoros

Denmark

Djibouti

Equatorial Guinea

Finland

France

Gambia

Germany

Greece

Guinea

Guinea-Bissau

Haiti

Hong Kong

Ireland

Israd

Italy

Japan

Kiribati

Lesotho

Liechtenstein

Luxembourg

Malawi

Maldives

Mali

Mozambique

Nepal

Netherlands

Niger]

Norway

Portugal

Republic of Korea

Rwanda

Sao Tome and Principe

Sierra Leone

Singapore

Somalia

Spain

Sweden

Switzerland

Tanzania U.R.

Togo

Thvalu

Uganda

United Kingdom

Vanuatu

Western Samoa

Yemen

"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)