The TAA was passed by the 96th U.S. Congress in 1979 and is a law that approves and implements several trade agreements previously enacted and negotiated between the United States and other countries under the Trade Act of 1974. The TAA is enabling legislation (i.e., grants new or previously prohibited powers to a natural or legal person – in this case, the federal government – that implements numerous multilateral (three or more) and bilateral (two countries) international trade agreements and other initiatives. The Trade Agreements Act was enacted to regulate trade agreements between the United States and abroad. One of the main features of the law is that it limits U.S. government procurement to products made in the U.S. or made in certain countries. These products are then called “TAA compliant”. Trade Agreements Act (19 U.S.C. & 2501-2581) of 1979 was enacted to promote fair and open international trade, but more importantly, it implemented the requirement that the U.S. government only purchase finished products manufactured or labeled in the United States.
In particular, this means that GSA can only purchase products manufactured in the United States and/or TAA compliant under a MAS program. This requirement has again confused many MAS contract holders as to its true meaning. However, the TAA does not restrict foreign trade outside of federal procurement. This means that you can freely sell non-TAA compliant products in the commercial market. A good or service is TAA compliant if it is manufactured or substantially processed in the United States or manufactured in a country designated by the TAA. A TAA-designated country is a country with which the United States has a trade agreement and considers it a reliable or acceptable source of supply. The Trade Agreements Act (TAA) was created to promote fair international trade with certain countries. Companies that work with foreign-made products or services need to know which companies are restricted to ensure compliance with the TAA and GSA.
The U.S. government was required to purchase only U.S.-made products and services or finished products from TAA countries. If proof of compliance with the TAA were requested, an organization would most likely have to conduct an analysis of its operations and collect data on the supply of products or components to meet the requirements of the TAA manufactured in the United States and manufactured in a country designated by the TAA, or the materially modified requirements. From 2021, China will no longer be compliant with the TAA and Japan will be. While it`s easy to understand what the TAA COMPLIANCE ACT is, it`s another thing to understand how it applies to your business and why it should be important to stay TAA compliant while you`re under a GSA schedule agreement. There are four groups of officially recognized countries that will be considered TAA compliant from 2021. The Federal Procurement Regulations (FAR) list these groups and the countries that make them up. Overall, an essential transformation is a subjective determination. It can become cloudy and is treated on a case-by-case basis. The provision requires a thorough analysis and collection of facts of the manufacture and procurement of products on behalf of a contractor if the contractor is responsible for verifying compliance with the TAA.
Hauck also recommends compliance with the Trade Agreements Act (TAA) for federal contractors. The best way to determine if a product is TAA compliant is to ask the manufacturer. Since compliance with the TAA is essential to maintaining any Schedule GSA contract you may have, you should always ensure that your products comply with the requirements of the Trade Agreements Act throughout the term of the contract. Here`s a quick checklist to follow to make sure your products are TAA relevant: TAA is an acronym for the United States Trade Agreements Act (TAA) of 1979. Compliance with the TAA is achieved by manufacturing its products entirely in the United States or in a country designated by the TAA, or by meeting the substantially modified requirement. TaA compliant countries are the designated countries and the United States. For the full list of TAA compliant countries, see FAR, Part 25. Therefore, countries that do not comply with the TAA are countries outside this list.
B for example China, Russia and North Korea. Now you know what the TAA (Trade Agreement Act) is and why it`s important to be TAA compliant. As a professional, you may want to focus solely on your business without having to delve deeper into TAA-related issues. In this case, hiring a professional sourcing consulting firm can be very helpful in passing TAA certification and keeping your inventory TAA compliant for every GSA calendar contract you have. Here`s what you NEED to know: The TAA allows government-affiliated program management offices to limit their purchases of goods and services to products manufactured or fully processed in the United States or a country designated by the TAA. Your email address will not be published. .