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GSA Schedule Introduction

 

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Trade Agreement Act (TAA) Designated Countries

What is the TAA?

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 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 products have to been made into the final product here in the U.S., or in one of any number of "approved" countries, known as designated countries.

Is the TAA Applicable to GSA Contracts?

Yes.  Federal contractors holding a GSA contract are subject to the Trade Agreement Act, commonly referred to as the TAA.  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 who 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 15,000 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:

Afghanistan

Angola

Antilles

Aruba

Aruba

Austria         Australia

Bahamas

Bahrain

Bangladesh

Barbados

Belgium

Belize

Benin

Bhutan

British

Bulgaria

Burkina Faso,

Burundi

Cambodia

Canada

Canada

Central African Republic

Chad

Chile

Comoros

Costa Rica

Cyprus

Colombia

   

Czech Republic

Congo, Democratic Republic of

Denmark

Djibouti

Dominica

Dominican Republic

East Timor

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

Kinmen and Matsu

Kiribati

Korea (Republic of) a.k.a. South Korea

Laos

Latvia

Lesotho

Liberia

Liechtenstein

Lithuania

Luxembourg

Madagascar

Malawi

Maldives

Mali

Malta

Mauritania,

Mexico

Montserrat

Morocco

Mozambique

Nepal

Netherlands

Netherlands

Nicaragua

Niger

Norway

Penghu,

Poland,

Portugal

Romania

Rwanda

Salvador

Samoa

Sao Tome and Principe

Senegal

Sierra Leone,

Singapore

Singapore

Slovak Republic

Slovenia

Solomon Islands

Somalia

Spain

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

Sweden

Switzerland

Taiwan

Tanzania

Togo

Trinidad and Tobago

Tuvalu

Uganda

United Kingdom

Vanuatu

Virgin Islands

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

(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).

(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, 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, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, Tanzania, 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 use.

“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 transformed.

“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.”