[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR25.001]

[Page 464]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 25_FOREIGN ACQUISITION--Table of Contents
 
Sec.  25.001  General.

    (a) The Buy American Act--
    (1) Restricts the purchase of supplies, that are not domestic end 
products, for use within the United States. A foreign end product may be 
purchased if the contracting officer determines that the price of the 
lowest domestic offer is unreasonable or if another exception applies 
(see Subpart 25.1); and
    (2) Requires, with some exceptions, the use of only domestic 
construction materials in contracts for construction in the United 
States (see Subpart 25.2).
    (b) The restrictions in the Buy American Act are not applicable in 
acquisitions subject to certain trade agreements (see Subpart 25.4). In 
these acquisitions, end products and construction materials from certain 
countries receive nondiscriminatory treatment in evaluation with 
domestic offers. Generally, the dollar value of the acquisition 
determines which of the trade agreements applies. Exceptions to the 
applicability of the trade agreements are described in Subpart 25.4.
    (c) The test to determine the country of origin for an end product 
under the trade agreements is different from the test to determine the 
country of origin for an end product under the Buy American Act (see the 
various country ``end product'' definitions in 25.003). The Buy American 
Act uses a two-part test to define a ``domestic end product'' 
(manufacture in the United States and a formula based on cost of 
domestic components). Under the trade agreements, the test to determine 
country of origin is ``substantial transformation'' (i.e., transforming 
an article into a new and different article of commerce, with a name, 
character, or use distinct from the original article).
    (d) On April 22, 1992, the President made a determination under 
section 305 of the Trade Agreements Act to impose sanctions against some 
European Union countries for discriminating against U.S. products and 
services (see Subpart 25.6).

[64 FR 72419, Dec. 27, 1999, as amended at 67 FR 21535, Apr. 30, 2002]