252.225-7021 Trade Agreements.

Basic. As prescribed in 225.1101 (6) and (6)(i), use the following clause:

TRADE AGREEMENTS—BASIC (FEB 2024)

(a) Definitions.As used in this clause—

“Caribbean Basin country end product”—

(1) Means an article that—

(i) Is wholly the growth, product, or manufacture of a Caribbean Basin country; 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 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. 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; and

(2) Excludes products, other than petroleum and any product derived from petroleum, that are not

granted duty-free treatment under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)).

These exclusions presently consist of—

(i) Textiles, apparel articles, footwear, handbags, luggage, flat goods, work gloves, leather wearing

apparel, and handloomed, handmade, or folklore articles that are not granted duty-free status in the

Harmonized Tariff Schedule of the United States (HTSUS);

(ii) Tuna, prepared or preserved in any manner in airtight containers; and

(iii) 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 HTSUS column 2 rates of duty

(HTSUS General Note 3(b)) apply.

“Commercially available off-the-shelf (COTS) item”—

(1) Means any item of supply (including construction material) that is—

(i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in

section 2.101 of the Federal Acquisition Regulation);

(ii) Sold in substantial quantities in the commercial marketplace; and

(iii) Offered to the Government, under a contract or subcontract at any tier, without modification, in

the same form in which it is sold in the commercial marketplace; and

(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and

petroleum products.
“Component” means an article, material, or supply incorporated directly into an end product.

“Designated country” means—

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia,

Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, 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, Moldova,

Montenegro, Netherlands, New Zealand 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)), Ukraine,

or the United Kingdom);

(2) A Free Trade Agreement country (Australia, Bahrain,Chile, Colombia, Costa Rica, Dominican

Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua,

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, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos,

Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda,

Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan,

Tanzania, Timor-Leste, 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, a Free Trade Agreement

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 this 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 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 Free Trade Agreement 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 its supply, provided that the value of those incidental services does not exceed

the value of the product 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.

“Nondesignated country end product” means any end product that is not a U.S.-made end product or

a designated country end product.

“Qualifying country” means a country with a reciprocal defense procurement memorandum of

understanding or international agreement with the United States in which both countries agree to

remove barriers to purchases of supplies produced in the other country or services performed by

sources of the other country, and the memorandum or agreement complies, where applicable, with

the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.

2457. Accordingly, the following are qualifying countries:

Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Egypt

Estonia

Finland

France

Germany

Greece

Israel

Italy

Japan

Latvia

Lithuania

Luxembourg

Netherlands
Norway

Poland

Portugal

Slovenia

Spain

Sweden

Switzerland

Turkey

United Kingdom of Great Britain and Northern Ireland.

“Qualifying country end product” means—

(1) An unmanufactured end product mined or produced in a qualifying country; or

(2) An end product manufactured in a qualifying country if—

(i) The cost of the following types of components exceeds 60 percent of the cost of all its

components, except that the percentage will be 65 percent for items delivered in calendar years

2024 through 2028 and 75 percent for items delivered starting in calendar year 2029, unless an

alternate percentage is established for a contract:

(A) Components mined, produced, or manufactured in a qualifying country.

(B) Components mined, produced, or manufactured in the United States.

(C) Components of foreign origin of a class or kind for which the Government has determined that

sufficient and reasonably available commercial quantities of a satisfactory quality are not mined,

produced, or manufactured in the United States; or

(ii) The end product is a COTS item.

“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that—

(1) Is mined, produced, or manufactured in the United States; or

(2) 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.

(b) Unless otherwise specified, this clause applies to all items in the Schedule.

(c) The Contractor shall deliver under this contract only U.S.-made, qualifying country, or

designated country end products unless—

(1) In its offer, the Contractor specified delivery of other nondesignated country end products in the

Trade Agreements Certificate provision of the solicitation; and

(2)(i) Offers of U.S.-made, qualifying country, or designated country end products from responsive,

responsible offerors are either not received or are insufficient to fill the Government’s requirements;

or

(ii) A national interest waiver has been granted.

(d) The contract price does not include duty for end products or components for which the

Contractor will claim duty-free entry.

(e) The HTSUS is available at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following

sections of the HTSUS provide information regarding duty-free status of articles specified in the

definition of “Caribbean Basic country end product” within paragraph (a) of this clause:

(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.

(End of clause)

Alternate I. Reserved.

Alternate II. As prescribed in 225.1101 (6) and (6)(ii), use the following clause, which adds “South

Caucasus/Central and South Asian (SC/CASA) state” and “South Caucasus/Central and South Asian

(SC/CASA) state end product” to paragraph (a); (ii) uses a different paragraph (c) than the basic

clause; (iii) adds a new paragraph (d); and (iv) includes paragraphs (e) and (f) which are the same

paragraphs (d) and (e) of the basic clause:

TRADE AGREEMENTS—ALTERNATE II (FEB 2024)

(a) Definitions.As used in this clause—

“Caribbean Basin country end product”—
(1) Means an article that—

(i) Is wholly the growth, product, or manufacture of a Caribbean Basin country; 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 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. 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; and

(2) Excludes products, other than petroleum and any product derived from petroleum, that are not

granted duty-free treatment under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)).

These exclusions presently consist of—

(i) Textiles, apparel articles, footwear, handbags, luggage, flat goods, work gloves, leather wearing

apparel, and handloomed, handmade, or folklore articles that are not granted duty-free status in the

Harmonized Tariff Schedule of the United States (HTSUS);

(ii) Tuna, prepared or preserved in any manner in airtight containers; and

(iii) 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 HTSUS column 2 rates of duty

(HTSUS General Note 3(b)) apply.

“Commercially available off-the-shelf (COTS) item”—

(1) Means any item of supply (including construction material) that is—

(i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in

section 2.101 of the Federal Acquisition Regulation);

(ii) Sold in substantial quantities in the commercial marketplace; and

(iii) Offered to the Government, under a contract or subcontract at any tier, without modification, in

the same form in which it is sold in the commercial marketplace; and

(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and

petroleum products.

“Component” means an article, material, or supply incorporated directly into an end product.

“Designated country” means—

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia,

Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, 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, Moldova,

Montenegro, Netherlands, New Zealand, North Macedonia, 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)), Ukraine, or the United Kingdom);

(2) A Free Trade Agreement country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican

Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua,

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, a Free Trade Agreement

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 this 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 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 Free Trade Agreement 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 its supply, provided that the value of those incidental services does not exceed

the value of the product 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.

“Nondesignated country end product” means any end product that is not a U.S.-made end product or

a designated country end product.

“Qualifying country” means a country with a reciprocal defense procurement memorandum of
understanding or international agreement with the United States in which both countries agree to

remove barriers to purchases of supplies produced in the other country or services performed by

sources of the other country, and the memorandum or agreement complies, where applicable, with

the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.

2457. Accordingly, the following are qualifying countries:

Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Egypt

Estonia

Finland

France

Germany

Greece

Israel

Italy

Japan

Latvia

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Slovenia

Spain

Sweden
Switzerland

Turkey

United Kingdom of Great Britain and Northern Ireland.

“Qualifying country end product” means—

(1) An unmanufactured end product mined or produced in a qualifying country; or

(2) An end product manufactured in a qualifying country if—

(i) The cost of the following types of components exceeds 60 percent of the cost of all its

components, except that the percentage will be 65 percent for items delivered in calendar years

2024 through 2028 and 75 percent for items delivered starting in calendar year 2029, unless an

alternate percentage is established for a contract:

(A) Components mined, produced, or manufactured in a qualifying country.

(B) Components mined, produced, or manufactured in the United States.

(C) Components of foreign origin of a class or kind for which the Government has determined that

sufficient and reasonably available commercial quantities of a satisfactory quality are not mined,

produced, or manufactured in the United States; or

(ii) The end product is a COTS item.

“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—

(1) Is wholly the growth, product, or manufacture of an SC/CASA state; 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 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.

“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that—

(1) Is mined, produced, or manufactured in the United States; or

(2) 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.

(b) Unless otherwise specified, this clause applies to all items in the Schedule.

(c) The Contractor shall deliver under this contract only U.S.-made, qualifying country, SC/CASA

state, or designated country end products unless—

(1) In its offer, the Contractor specified delivery of other nondesignated country end products in the

Trade Agreements Certificate provision of the solicitation; and

(2)(i) Offers of U.S.-made, qualifying country, SC/CASA state, or designated country end products

from responsive, responsible offerors are either not received or are insufficient to fill the

Government’s requirements; or

(ii) A national interest waiver has been granted.

(d) If the Contractor is from an SC/CASA state, the Contractor shall inform its government of its

participation in this acquisition and that it generally will not have such opportunity in the future

unless its government provides reciprocal procurement opportunities to U.S. products and services

and suppliers of such products and services.

(e) The contract price does not include duty for end products or components for which the

Contractor will claim duty-free entry.

(f) The HTSUS is available at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following

sections of the HTSUS provide information regarding duty-free status of articles specified in the

definition of “Caribbean Basin country end product” within paragraph (a) of this clause:

(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.

(End of clause)

Alternate III. As prescribed in 225.1101(6) and (6)(iii), use the following clause, which includes, in

the definition of “qualifying country end product” at paragraph (2)(i), the domestic content threshold

that will apply to the entire contract period of performance.
TRADE AGREEMENTS—ALTERNATE III (FEB 2024)

(a) Definitions. As used in this clause—

“Caribbean Basin country end product”—

(1) Means an article that—

(i) Is wholly the growth, product, or manufacture of a Caribbean Basin country; 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 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. 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; and

(2) Excludes products, other than petroleum and any product derived from petroleum, that are not

granted duty-free treatment under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)).

These exclusions presently consist of—

(i) Textiles, apparel articles, footwear, handbags, luggage, flat goods, work gloves, leather wearing

apparel, and handloomed, handmade, or folklore articles that are not granted duty-free status in the

Harmonized Tariff Schedule of the United States (HTSUS);

(ii) Tuna, prepared or preserved in any manner in airtight containers; and

(iii) 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 HTSUS column 2 rates of duty

(HTSUS General Note 3(b)) apply.

“Commercially available off-the-shelf (COTS) item”—

(1) Means any item of supply (including construction material) that is—

(i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in

section 2.101 of the Federal Acquisition Regulation);

(ii) Sold in substantial quantities in the commercial marketplace; and

(iii) Offered to the Government, under a contract or subcontract at any tier, without modification, in

the same form in which it is sold in the commercial marketplace; and

(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and

petroleum products.

“Component” means an article, material, or supply incorporated directly into an end product.

“Designated country” means—

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia,

Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, 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, Moldova,

Montenegro, Netherlands, New Zealand, North Macedonia, 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)), Ukraine, or the United Kingdom);

(2) A Free Trade Agreement country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican

Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua,

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, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos,

Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda,

Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan,

Tanzania, Timor-Leste, 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, a Free Trade Agreement

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 this 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 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 Free Trade Agreement 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 its supply, provided that the value of those incidental services does not exceed

the value of the product 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.
“Nondesignated country end product” means any end product that is not a U.S.-made end product or

a designated country end product.

“Qualifying country” means a country with a reciprocal defense procurement memorandum of

understanding or international agreement with the United States in which both countries agree to

remove barriers to purchases of supplies produced in the other country or services performed by

sources of the other country, and the memorandum or agreement complies, where applicable, with

the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.

2457. Accordingly, the following are qualifying countries:

Australia

Austria

Belgium

Canada

Czech Republic

Denmark

Egypt

Estonia

Finland

France

Germany

Greece

Israel

Italy

Japan

Latvia

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Slovenia
Spain

Sweden

Switzerland

Turkey

United Kingdom of Great Britain and Northern Ireland

“Qualifying country end product” means—

(1) An unmanufactured end product mined or produced in a qualifying country; or

(2) An end product manufactured in a qualifying country if—

(i) The cost of the following types of components exceeds, for the entire period of performance for a

contract awarded in: calendar year 2023, 60 percent of the cost of all its components; calendar years

2024 through 2028, 65 percent of the cost of all its components; or calendar year 2029 or later, 75

percent of the cost of all its components:

(A) Components mined, produced, or manufactured in a qualifying country.

(B) Components mined, produced, or manufactured in the United States.

(C) Components of foreign origin of a class or kind for which the Government has determined that

sufficient and reasonably available commercial quantities of a satisfactory quality are not mined,

produced, or manufactured in the United States; or

(ii) The end product is a COTS item.

“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that—

(1) Is mined, produced, or manufactured in the United States; or

(2) 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.

(b) Unless otherwise specified, this clause applies to all items in the Schedule.
(c) The Contractor shall deliver under this contract only U.S.-made, qualifying country, or

designated country end products unless—

(1) In its offer, the Contractor specified delivery of other nondesignated country end products in the

Trade Agreements Certificate provision of the solicitation; and

(2)(i) Offers of U.S.-made, qualifying country, or designated country end products from responsive,

responsible offerors are either not received or are insufficient to fill the Government's requirements;

or

(ii) A national interest waiver has been granted.

(d) The contract price does not include duty for end products or components for which the

Contractor will claim duty-free entry.

(e) The HTSUS is available at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following

sections of the HTSUS provide information regarding duty-free status of articles specified in the

definition of “Caribbean Basin country end product” within paragraph (a) of this clause:

(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.

(End of clause)

Alternate IV. As prescribed in 225.1101(6) and (6)(iv), use the following clause, which (i) includes, in

the definition of “qualifying country end product” at paragraph (2)(i), the domestic content threshold

that will apply to the entire contract period of performance; (ii) adds “South Caucasus/Central and

South Asian (SC/CASA) state” and “South Caucasus/Central and South Asian (SC/CASA) state end

product” to paragraph (a); (iii) uses a different paragraph (c) than the basic clause; (iv) adds a new

paragraph (d); and (v) includes paragraphs (e) and (f) which are the same paragraphs (d) and (e) of

the basic clause:

TRADE AGREEMENTS—ALTERNATE IV (FEB 2024)

(a) Definitions. As used in this clause—

“Caribbean Basin country end product”—

(1) Means an article that—

(i) Is wholly the growth, product, or manufacture of a Caribbean Basin country; 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 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. 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; and

(2) Excludes products, other than petroleum and any product derived from petroleum, that are not

granted duty-free treatment under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)).

These exclusions presently consist of—

(i) Textiles, apparel articles, footwear, handbags, luggage, flat goods, work gloves, leather wearing

apparel, and handloomed, handmade, or folklore articles that are not granted duty-free status in the

Harmonized Tariff Schedule of the United States (HTSUS);

(ii) Tuna, prepared or preserved in any manner in airtight containers; and

(iii) 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 HTSUS column 2 rates of duty

(HTSUS General Note 3(b)) apply.

“Commercially available off-the-shelf (COTS) item”—

(1) Means any item of supply (including construction material) that is—

(i) A commercial product (as defined in paragraph (1) of the definition of commercial product in

section 2.101 of the Federal Acquisition Regulation);

(ii) Sold in substantial quantities in the commercial marketplace; and

(iii) Offered to the Government, under a contract or subcontract at any tier, without modification, in

the same form in which it is sold in the commercial marketplace; and

(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and

petroleum products.

“Component” means an article, material, or supply incorporated directly into an end product.

“Designated country” means—

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia,

Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, 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, Moldova,

Montenegro, Netherlands, New Zealand, North Macedonia, 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)), Ukraine, or the United Kingdom);

(2) A Free Trade Agreement country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican

Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua,

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, a Free Trade Agreement

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 this 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 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 Free Trade Agreement 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 its supply, provided that the value of those incidental services does not exceed

the value of the product 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 its supply, provided that the value of those incidental services does not exceed

the value of the product itself.

“Nondesignated country end product” means any end product that is not a U.S.-made end product or

a designated country end product.

“Qualifying country” means a country with a reciprocal defense procurement memorandum of

understanding or international agreement with the United States in which both countries agree to

remove barriers to purchases of supplies produced in the other country or services performed by

sources of the other country, and the memorandum or agreement complies, where applicable, with

the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.

2457. Accordingly, the following are qualifying countries:

Australia
Austria

Belgium

Canada

Czech Republic

Denmark

Egypt

Estonia

Finland

France

Germany

Greece

Israel

Italy

Japan

Latvia

Lithuania

Luxembourg

Netherlands

Norway

Poland

Portugal

Slovenia

Spain

Sweden

Switzerland

Turkey

United Kingdom of Great Britain and Northern Ireland.

“Qualifying country end product” means—
(1) An unmanufactured end product mined or produced in a qualifying country; or

(2) An end product manufactured in a qualifying country if—

(i) The cost of the following types of components exceeds, for the entire period of performance for a

contract awarded in: calendar year 2023, 60 percent of the cost of all its components; calendar years

2024 through 2028, 65 percent of the cost of all its components; or calendar year 2029 or later, 75

percent of the cost of all its components:

(A) Components mined, produced, or manufactured in a qualifying country.

(B) Components mined, produced, or manufactured in the United States.

(C) Components of foreign origin of a class or kind for which the Government has determined that

sufficient and reasonably available commercial quantities of a satisfactory quality are not mined,

produced, or manufactured in the United States; or

(ii) The end product is a COTS item.

“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—

(1) Is wholly the growth, product, or manufacture of an SC/CASA state; 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 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.

“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that—

(1) Is mined, produced, or manufactured in the United States; or

(2) 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 its supply, provided that the value of those incidental services does not exceed
the value of the product itself.

(b) Unless otherwise specified, this clause applies to all items in the Schedule.

(c) The Contractor shall deliver under this contract only U.S.-made, qualifying country, SC/CASA

state, or designated country end products unless—

(1) In its offer, the Contractor specified delivery of other nondesignated country end products in the

Trade Agreements Certificate provision of the solicitation; and

(2)(i) Offers of U.S.-made, qualifying country, SC/CASA state, or designated country end products

from responsive, responsible offerors are either not received or are insufficient to fill the

Government's requirements; or

(ii) A national interest waiver has been granted.

(d) If the Contractor is from an SC/CASA state, the Contractor shall inform its government of its

participation in this acquisition and that it generally will not have such opportunity in the future

unless its government provides reciprocal procurement opportunities to U.S. products and services

and suppliers of such products and services.

(e) The contract price does not include duty for end products or components for which the

Contractor will claim duty-free entry.

(f) The HTSUS is available at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following

sections of the HTSUS provide information regarding duty-free status of articles specified in the

definition of “Caribbean Basin country end product” within paragraph (a) of this clause:

(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.

(End of clause)

Parent topic: 252.225 RESERVED