Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations 30359 

(ii) The offeror certifies that the 

following supplies are Free Trade 

Agreement country end products other 

than Bahrainian end products, Korean 

end products, Moroccan end products, 

or Peruvian end products: 

(Line Item Number) 

(Country of Origin) 

■ 9. Section 252.225–7036 is amended 

by— 

■ a. Removing the clause date ‘‘(OCT 

2011)’’ and adding ‘‘(MAY 2012)’’ in its 

place; 

■ b. In paragraph (a) in the definition of 

‘‘Free Trade Agreement country’’, 

removing ‘‘Guatemala, Honduras, 

Mexico,’’ and adding ‘‘Guatemala, 

Honduras, Korea (Republic of), Mexico’’ 

in its place; 

■ c. Revising paragraph (c); and 

■ d. Adding Alternates IV and V. 

The additions and revisions read as 

follows: 

252.225–7036 Buy American Act—Free 

Trade Agreements—Balance of Payments 

Program. 

* * * * * 

(c) The Contractor shall deliver under 

this contract only domestic end 

products unless, in its offer, it specified 

delivery of qualifying country end 

products, Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, or 

Peruvian end products, or other foreign 

end products in the Buy American 

Act—Free Trade Agreements—Balance 

of Payments Program Certificate 

provision of the solicitation. If the 

Contractor certified in its offer that it 

will deliver a qualifying country end 

product or a Free Trade Agreement 

country end product other than a 

Bahrainian end product, a Moroccan 

end product, or a Peruvian end product, 

the Contractor shall deliver a qualifying 

country end product, a Free Trade 

Agreement country end product other 

than a Bahrainian end product, a 

Moroccan end product, or a Peruvian 

end product, or, at the Contractor’s 

option, a domestic end product. 

* * * * * 

ALTERNATE IV (MAY 2012) 

As prescribed in 225.1101(11)(i)(C), add 

the following definition to paragraph (a) and 

substitute the following paragraph (c) for 

paragraph (c) of the basic clause: 

(a) Korean end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Korea; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Korea (Republic of) 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 its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, Free Trade Agreement 

country end products other than Bahrainian 

end products, Korean end products, 

Moroccan end products, or Peruvian end 

products, or other foreign end products in the 

Buy American Act—Free Trade 

Agreements—Balance of Payments Program 

Certificate provision of the solicitation. If the 

Contractor certified in its offer that it will 

deliver a qualifying country end product or 

a Free Trade Agreement country end product 

other than a Bahrainian end product, a 

Korean end product, a Moroccan end 

product, or a Peruvian end product, the 

Contractor shall deliver a qualifying country 

end product, a Free Trade Agreement country 

end product other than a Bahrainian end 

product, a Korean end product, a Moroccan 

end product, or a Peruvian end product, or, 

at the Contractor’s option, a domestic end 

product. 

ALTERNATE V (MAY 2012) 

As prescribed in 225.1101(11)(i)(C), add 

the following new definitions to paragraph 

(a) and substitute the following paragraph (c) 

for paragraph (c) of the basic clause: 

(a) Korean end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Korea; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Korea (Republic of) 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 its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state 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 its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Free Trade Agreement country end 

products other than Bahrainian end products, 

Korean end products, Moroccan end 

products, or Peruvian end products, or other 

foreign end products in the Buy American 

Act—Free Trade Agreements—Balance of 

Payments Program Certificate provision of 

the solicitation. If the Contractor certified in 

its offer that it will deliver a qualifying 

country end product, SC/CASA state end 

products, or a Free Trade Agreement country 

end product other than a Bahrainian end 

product, a Korean end product, a Moroccan 

end product, or a Peruvian end product, the 

Contractor shall deliver a qualifying country 

end product, an SC/CASA state end product, 

a Free Trade Agreement country end product 

other than a Bahrainian end product, a 

Korean end product, a Moroccan end 

product, or a Peruvian end product or, at the 

Contractor’s option, a domestic end product. 

252.225–7045 [Amended] 

■ 10. Section 252.225–7045 is amended 

by— 

■ a. Removing the clause date ‘‘(JAN 

2012)’’ and adding ‘‘(MAY 2012)’’ in its 

place; and 

■ b. In paragraph (a) in the definition of 

‘‘Designated country’’, amending 

paragraph (2) by removing ‘‘Guatemala, 

Honduras, Mexico’’ and adding 

‘‘Guatemala, Honduras, Korea (Republic 

of), Mexico’’ in its place. 

[FR Doc. 2012–11558 Filed 5–21–12; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

RIN 0750–AH72 

Defense Federal Acquisition 

Regulation Supplement: New Free 

Trade Agreement With Colombia 

(DFARS Case 2012–D032) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Interim rule. 

SUMMARY: DoD is issuing an interim rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement the United 

States—Colombia Trade Promotion 


srobinson on DSK4SPTVN1PROD with RULES2
30360 Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations 

Agreement. This Trade Promotion 

Agreement is a free trade agreement that 

provides for mutually nondiscriminatory treatment of eligible 

products and services from Columbia. 

DATES: Effective date: May 22, 2012. 

Comment Date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before July 23, 2012, to be considered 

in the formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2012–D032, 

using any of the following methods: 

Æ Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D032’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2012– 

D032.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2012– 

D032’’ on your attached document. 

Æ Email: dfars@osd.mil. Include 

DFARS Case 2012–D032 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Amy 

Williams, OUSD (AT&L) DPAP/DARS, 

Room 3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Telephone 571–372–6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This interim rule amends DFARS part 

252 to implement the United States— 

Colombia Trade Promotion Agreement 

Implementation Act (Pub. L. 112–42) 

(19 U.S.C. 3805 note). 

This Trade Promotion Agreement is 

designated in the Federal Acquisition 

Regulation (FAR) as the Colombia Free 

Trade Agreement (FTA). The FTA 

provides for— 

• Waiver of the applicability of the 

Buy American statute (41 U.S.C. chapter 

83) for some foreign supplies and 

construction materials from Colombia; 

and 

• Applicability of specified 

procurement procedures designed to 

ensure fairness in the acquisition of 

supplies and services (see FAR 25.408). 

II. Discussion and Analysis 

This interim rule adds Colombia to 

the definition of ‘‘Free Trade Agreement 

country’’ in multiple locations in the 

DFARS. The Colombia FTA covers 

acquisition of supplies and services 

equal to or exceeding $77,494. The 

threshold for the Columbia FTA is 

$7,777,000 for construction. 

Because the Colombia FTA 

construction threshold of $7,777,000 is 

the same as the World Trade 

Organization Government Procurement 

Agreement threshold, no new clause 

alternates are required for the Balance of 

Payments Program—Construction 

Material under the Trade Agreements 

clause (DFARS 252.225–7045). 

There are also conforming changes to 

the clause at DFARS 252.212–7001, 

Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders Applicable to Defense 

Acquisitions of Commercial Items. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

IV. Regulatory Flexibility Act 

DoD does not expect this rule to have 

a significant economic impact on a 

substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq. 

Although the rule now opens up 

Government procurement to the goods 

and services of Colombia at or above the 

threshold of $77,494, DoD does not 

anticipate any significant economic 

impact on U.S. small businesses. The 

Department of Defense only applies the 

trade agreements to the non-defense 

items listed at DFARS 225.401–70, and 

acquisitions that are set aside or provide 

other forms of preference for small 

businesses are exempt. FAR 19.502–2 

states that acquisitions that do not 

exceed $150,000 (with some exceptions) 

are automatically reserved exclusively 

for small business concerns. Therefore, 

DoD has not performed an Initial 

Regulatory Flexibility Analysis. DoD 

invites comments from small business 

concerns and other interested parties on 

the expected impact of this rule on 

small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by the rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2012–D032), in 

correspondence. 

V. Paperwork Reduction Act 

This rule affects the certification and 

information collection requirements in 

the provisions at DFARS 252.225–7020 

and 252.225–7035, currently approved 

under OMB Control Number 0704–0229, 

titled Defense Federal Acquisition 

Regulation Supplement part 225, 

Foreign Acquisition, and related 

clauses, in accordance with the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). The impact, however, is 

negligible, because it is just a question 

of under which category offered goods 

from Colombia would be listed. 

VI. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of Defense 

that urgent and compelling reasons exist 

to promulgate this interim rule without 

prior opportunity for public comment. 

This action is necessary because the 

Free Trade Agreement with Colombia 

entered into force on May 15, 2012. This 

Trade Promotion Agreement is a 

reciprocal agreement approved by 

Congress and the President of the 

United States. It is important for the 

United States Government to honor its 

new trade obligations to Colombia, as 

Colombia in turn honors its new trade 

obligations to the United States. 

However, pursuant to 41 U.S.C. 1707 

and FAR 1.501–3(b), DoD will consider 

public comments received in response 

to this interim rule in the formation of 

the final rule. 


srobinson on DSK4SPTVN1PROD with RULES2
Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations 30361 

List of Subjects in 48 CFR Part 252 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 252 is 

amended as follows: 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 1. The authority citation for 48 CFR 

part 252 continues to read as follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

252.225–7017 [Amended] 

■ 2. Section 252.225–7017 is amended 

by— 

■ a. In paragraph (a), in the definition of 

‘‘Designated country,’’ paragraph (ii), by 

removing ‘‘Australia, Bahrain, Canada, 

Chile, Costa Rica’’ and adding 

‘‘Australia, Bahrain, Canada, Chile, 

Columbia, Costa Rica’’ in its place; and 

■ b. In paragraph (a) in the definition of 

‘‘Free Trade Agreement country’’ 

removing ‘‘Australia, Bahrain, Canada, 

Chile, Costa Rica’’ and adding 

‘‘Australia, Bahrain, Canada, Chile, 

Columbia, Costa Rica’’ in its place. 

252.225–7021 [Amended] 

■ 3. Section 252.225–7021 is amended 

in paragraph (a), in the definition of 

‘‘Designated country,’’ paragraph (ii), by 

removing ‘‘Australia, Bahrain, Canada, 

Chile, Costa Rica’’ and adding 

‘‘Australia, Bahrain, Canada, Chile, 

Columbia, Costa Rica’’ in its place. 

252.225–7045 [Amended] 

■ 4. Section 252.225–7045 is amended 

in paragraph (a), in the definition of 

‘‘Designated country,’’ paragraph (2), by 

removing ‘‘Australia, Bahrain, Canada, 

Chile, Costa Rica’’ and adding 

‘‘Australia, Bahrain, Canada, Chile, 

Columbia, Costa Rica’’ in its place. 

[FR Doc. 2012–11559 Filed 5–21–12; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisitions Regulations 

System 

48 CFR Parts 225 and 252 

RIN 0750–AH70 

Defense Federal Acquisition 

Regulation Supplement; Defense Trade 

Cooperation Treaty With the United 

Kingdom (DFARS 2012–D034) 

AGENCY: Defense Acquisition 

Regulations System; Department of 

Defense (DoD). 

ACTION: Interim rule. 

SUMMARY: DoD is issuing an interim rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement requirements of 

the Treaty Between the Government of 

the United States of America and the 

Government of the United Kingdom of 

Great Britain and Northern Ireland 

Concerning Defense Trade Cooperation 

(the Treaty) and the Security 

Cooperation Act of 2010 regarding 

export control regulations between the 

United States and the United Kingdom. 

The Treaty and statute establish an 

Approved Community that includes 

members of the U.S. Government and 

the government of the United Kingdom. 

DATES: Effective Date: May 22, 2012. 

Comment date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before July 23, 2012, to be considered 

in the formation of the final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2012–D034, 

using any of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D034’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2012– 

D034.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2012– 

D034’’ on your attached document. 

• Email: dfars@osd.mil. Include 

DFARS Case 2012–D034 in the subject 

line of the message. 

• Fax: 571–372–6094. 

• Mail: Defense Acquisition 

Regulations System, Attn: (Insert case 

manager’s name), OUSD (AT&L) DPAP/ 

DARS, Room 3B855, 3060 Defense 

Pentagon, Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov, 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP/DARS, Room 3B855, 3060 

Defense Pentagon, Washington, DC 

20301–3060. Telephone 571–372–6106; 

facsimile 571–372–6101. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This rule streamlines the export 

control regulations between the United 

States and the United Kingdom under 

specified circumstances. 

The U.S. Government controls exports 

of defense articles, technical data, and 

defense services. The governing law is 

the Arms Export Control Act (AECA) (22 

U.S.C. 2778 et seq.) and implementing 

regulations in the International Traffic 

in Arms Regulations (ITAR) (22 CFR 

120–130). 

Under the ITAR, the Department of 

State manages an export licensing 

system in which numerous government 

approvals are often necessary for 

companies to hold discussions about 

potential projects, pursue joint 

activities, ship hardware, or transfer 

know-how to one another, and even 

sometimes to transfer engineers and 

other company employees from one 

country to another. This process can be 

challenging and time consuming for 

U.S. exporters and for foreign firms in 

their supply chains. 

The U.S. concluded the Treaty with 

the United Kingdom to enable their 

militaries, security authorities, and their 

approved industries to exchange 

defense articles, technical information, 

and defense services more freely. The 

Treaty establishes exemptions for 

certain exports and transfers that meet 

the Treaty requirements. Other exports 

and transfers remain governed by AECA 

and the ITAR. 

The Treaty and implementing 

arrangements with the United Kingdom 

may be accessed at http:// 

www.state.gov/t/pm/rls/othr/misc/ 

92770.htm. 

The implementing legislation is in 

Title I of Pub. L. 111–266, the Security 

Cooperation Act of 2010. 

The Senate conditions upon 

ratification are at http:// 

www.govtrack.us/congress/ 

billtext.xpd?bill=s111-3847. 


srobinson on DSK4SPTVN1PROD with RULES2