However, the TAA does not limit foreign trade outside the scope of federal contracts. This means that you can freely sell non-TAA-compliant products on the commercial market. The Trade Agreements Act (19 U.S.C. – 2501-2581) of 1979 was passed to promote fair and open international trade, but more importantly, it implemented the requirement that the U.S. government only buy finished manufactured products or certain finished products. This means, in particular, that, under a MAS program, GSA can only purchase products that are compliant in the United States and/or compliant with the TAA. This requirement has always baffled many MAS contract holders as to their actual meaning. The Trade Agreements Act was passed to regulate trade agreements between the United States and abroad. One of the main features of the act is that it limits purchases by the U.S. government to products or products manufactured in the United States and manufactured in certain countries.
Such products are then called « TAA compliant. » GSA calendar contracts are governed by the Trade Agreements Act (TAA), i.e. all products listed in the GSA calendar contract must be manufactured or « essentially processed » in the United States or in a country designated by the AAA. Designated countries consist: The following list was extracted from the Federal Acquisition Regulation (FAR) and was last updated in November 2016 with the registration of Moldova and Ukraine, and is up to date from June 2020. To access this FAR clause directly, please click here: Federal Acquisition Regulation (FAR) 52.225-5, Trade Agreements. TAA compliance simply means that the « finished products » you sell as GSA product manufacturers or resellers through your GSA calendar cannot be manufactured in certain countries, including, but not only: You now know what the TAA (Trade Agreement Act) is and why TAA is important in accordance with the TAA. As a professional, you may want to focus exclusively on your business without having to deal with AAT issues. In this case, hiring a professional procurement consulting firm when handing over the TAA certification and complying with your TAA BESTA compliant with every GSA calendar contract you have can be very helpful. AA TA COMPLIANCE is only required for federal contracts. Public bodies cannot purchase TAA products for contracts above the $180,000 threshold (value may change). In practice, any value of the GSA calendar exceeds the threshold, so you could say that the TAA applies to all calendars.
For example, if you take aluminum from one country, PET (polyethylene terephthalate) from another country, and you make aluminum foil and cover it with a PET coating, the resulting aluminum cover is « significantly transformed. » On the other hand, if you take concentrated fruit juice and dilute it with water, the resulting product is not « substantially processed » because it has not given rise to a fundamentally new character, name or use. The idea behind this term is that the product must undergo some significant modifications (manufacturing, assembly, processing, etc.) that lead to distinctive characteristics, a name or use of the new product. A « substantially processed » product is therefore considered to originate from the country in which these transformations were carried out. This article explains what the Trade Agreements Act is, what it means a product is TAA compliant, and why TAA compliance is important for any company that wishes to cooperate with the government through GSA schedules.