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Trade Agreement Act Countries (TAA) Designated Countries

What is the Trade Agreement Act?

All products and services that are offered on GSA or VA's MAS contracts must be compliant with the Trade Agreements Act (TAA) (19 U.S.C. 2501, et seq.)  This is referred to as being TAA compliant.  Only products and services that have been substantially transformed in a designated country (see list of TAA Designated countries below) are allowed on a GSA contract.

Sounds bureaucratic, doesn't it?  To translate, it simply means that only  products that were made into the final product here in the U.S., or in one of any number of "approved" countries, known as designated countries, can be listed on a GSA contract.

Is the TAA Applicable to GSA Contracts?

Yes, all GSA MAS contracts must be TAA compliant.  Federal contractors holding a GSA contract are subject to the Trade Agreement Act.  The GSA schedules program allows the listing of products made or substantially transformed in the U.S., or certain other designated countries.

Countries listed below are considered designated countries because they fall under one of the following TAA agreements:

  • Free Trade Agreement Countries
  • World Trade Organization (WTO) Government Procurement Agreement Countries
  • Caribbean Basin Countries
  • Least Developed Countries

Does TAA apply to Service Companies?

Yes, the TAA does apply to firms providing services, however the GAO decided that the companies legal location determines TAA compliance, not the location the service comes from (e.g., the location of the people providing the service).  

IS TAA Compliance Enforced?

Many firms tell us that they have looked at GSA Advantage and see many competitors listing products made in non-TAA countries.  GSA attempts to proactively enforce these rules, however with over 20,000 contracts and millions of products, it is a difficult problem.

How does GSA Enforce TAA Compliance?

We often hear, "My Competitor is not TAA Compliant."  

Frankly, GSA relies heavily on industry support to report non-TAA complaint products.  If a CO receives a complaint then they investigate with their vendor and have the products removed.  So if you see someone listing non TAA compliant products, then look up the GSA CO's name for that contractor on GSA eLibrary and email the CO.  They will keep your name confidential.

TAA Compliant Countries

The folloiwng is a list of TAA Designated countries.  Products from these countries are considered TAA compliant and allowed on GSA contracts (updated September, 2014):

Afghanistan

Angola

Antigua and Barbuda

Armenia

Aruba

Aruba,

Australia

Austria

Bahamas

Bahrain

Bangladesh

Barbados

Belgium

Belize,

Benin

Bhutan

Bonaire

British Virgin Islands

Bulgaria

Burkina Faso,

Burundi

Cambodia

Canada

Canada

Central African Republic

Chad

Chile

Colombia

Comoros

Costa Rica,

Croatia

Curacao

Cyprus

Czech Republic

Democratic Republic of Congo,

Denmark

Djibouti

Dominica

Dominican Republic

El Salvador

Equatorial Guinea

Eritrea

Estonia,

Ethiopia

Finland

France

Gambia

Germany

Greece

Grenada

Guatemala

Guinea

Guinea-Bissau

Guyana

Haiti

Haiti

Honduras

Hong Kong

Hungary

Iceland

Ireland

Israel

Italy

Jamaica,

Japan,

Kiribati,

Korea (Republic of)

Laos

Latvia

Lesotho

Liberia

Liechtenstein

Lithuania

Luxembourg

Madagascar

Malawi

Mali

Malta

Mauritania

Mexico

Montserrat

Morocco,

Mozambique

Nepal

Netherlands

Nicaragua

Niger,

Norway

Oman

or Singapore,

Panama

Peru

Poland

Portugal

Romania

Rwanda

Saba

Saint Eustatius,

Saint Maarten

Samoa

Sao Tome and Principe

Senegal

Sierra Leone

Singapore

Slovak Republic

Slovenia

Solomon Islands

Somalia

South Sudan

Spain

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Sweden

Switzerland,

Taiwan

Tanzania

Timor-Leste

Togo

Trinidad and Tobago

Tuvalu

Uganda

United Kingdom,

Vanuatu

Yemen

Zambia

 

IMPORTANT: Check TAA Countires Regulation for latest listing of designated countries.

Remember, this TAA requirement is one of the key requirements for GSA Schedule contractors.  

 

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Text of TAA Regulation

52.225-5 TRADE AGREEMENTS (NOV 2013)

(a) Definitions. As used in this clause —

“Caribbean Basin country end product”—

(1) Means an article that —

(i) (A) Is wholly the growth, product, or manufacture of a Caribbean Basin country;

or

(B) In the case of an article that consists in whole or in part of materials from

another country, has been substantially transformed in a Caribbean Basin country

into a new and different article of commerce with a name, character, or use

distinct from that of the article or articles from which it was transformed; and

(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).

REGULATIONS INCORPORATED BY REFERENCE

Page: 64 of 97

(A) For this reason, the following articles are not Caribbean Basin country end

products:

(1) Tuna, prepared or preserved in any manner in airtight containers;

(2) Petroleum, or any product derived from petroleum;

(3) Watches and watch parts (including cases, bracelets, and straps) of

whatever type including, but not limited to, mechanical, quartz digital, or

quartz analog, if such watches or watch parts contain any material that is

the product of any country to which the Harmonized Tariff Schedule of

the United States (HTSUS) column 2 rates of duty apply (i.e.,

Afghanistan, Cuba, Laos, North Korea, and Vietnam); and

(4) Certain of the following: textiles and apparel articles; footwear,

handbags, luggage, flat goods, work gloves, and leather wearing apparel;

or handloomed, handmade, and folklore articles;

(B) Access to the HTSUS to determine duty-free status of articles of these types is

available at http://www.usitc.gov/tata/hts/. In particular, see the following:

(1) General Note 3(c), Products Eligible for Special Tariff treatment.

(2) General Note 17, Products of Countries Designated as Beneficiary

Countries under the United States-Caribbean Basin Trade Partnership Act of 2000.

(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and

Returned, Advanced or Improved Abroad, U.S. Note 7(b).

(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special

Tariff Benefits under the United States-Caribbean Basin Trade

Partnership Act; and

(2) Refers to a product offered for purchase under a supply contract, but for purposes of

calculating the value of the acquisition, includes services (except transportation services)

incidental to the article, provided that the value of those incidental services does not exceed that

of the article itself.

“Designated country” means any of the following countries:

(1) A World Trade Organization Government Procurement Agreement country (Armenia, Aruba,

Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia,

Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan,

Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway,

Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,

Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan,

Penghu, Kinmen and Matsu (Chinese Taipei))”, or United Kingdom);

(2) A Free Trade Agreement country (Australia, Bahrain, Canada, Chile, Colombia, Costa Rica,

Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,

Nicaragua, Oman, Panama, Peru, or Singapore);

(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso,

Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo,

Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati,

Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger,

Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia,

REGULATIONS INCORPORATED BY REFERENCE

Page: 65 of 97

South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or

(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize,

Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica,

Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius,

Sint Maarten, or Trinidad and Tobago).

“Designated country end product” means a WTO GPA country end product, an FTA country end

product, a least developed country end product, or a Caribbean Basin country end product.

“End product” means those articles, materials, and supplies to be acquired under the contract for public

“Free Trade Agreement country end product” means an article that —

(1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has

been substantially transformed in an FTA country into a new and different article of commerce

with a name, character, or use distinct from that of the article or articles from which it was

transformed. The term refers to a product offered for purchase under a supply contract, but for

purposes of calculating the value of the end product includes services (except transportation

services) incidental to the article, provided that the value of those incidental services does not

exceed that of the article itself.

“Least developed country end product” means an article that —

(1) Is wholly the growth, product, or manufacture of a least developed country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has

been substantially transformed in a least developed country into a new and different article of

commerce with a name, character, or use distinct from that of the article or articles from which it

was transformed. The term refers to a product offered for purchase under a supply contract, but

for purposes of calculating the value of the end product, includes services (except transportation

services) incidental to the article, provided that the value of those incidental services does not

exceed that of the article itself.

“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that is mined, produced, or manufactured in the United

States or that is substantially transformed in the United States into a new and different article of

commerce with a name, character, or use distinct from that of the article or articles from which it was

“WTO GPA country end product” means an article that —

(1) Is wholly the growth, product, or manufacture of a WTO GPA country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has

been substantially transformed in a WTO GPA country into a new and different article of

commerce with a name, character, or use distinct from that of the article or articles from which it

was transformed. The term refers to a product offered for purchase under a supply contract, but

for purposes of calculating the value of the end product includes services, (except transportation

services) incidental to the article, provided that the value of those incidental services does not

exceed that of the article itself.

(b) Delivery of end products. The Contracting Officer has determined that the WTO GPA and FTAs

apply to this acquisition. Unless otherwise specified, these trade agreements apply to all items in the

Schedule. The Contractor shall deliver under this contract only U.S.-made or designated country end

products except to the extent that, in its offer, it specified delivery of other end products in the provision

entitled “Trade Agreements Certificate.”

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