[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR25.001]



[Page 480-481]

 

            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



[[Page 481]]



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]