225.003 Definitions.

As used in this part—

“600 series of the Commerce Control List” means the series of 5-character export control

classification numbers (ECCNs) of the Commerce Control List of the Export Administration

Regulations in 15 CFR part 774, supplement No. 1., that have a “6” as the third character. The 600

series constitutes the munitions and munitions-related ECCNs within the larger Commerce Control

List. (See definition of “600 series” in 15 CFR 772.)

“Caribbean Basin country end product" includes petroleum or any product derived from petroleum.

“Communist Chinese military company” means any entity, regardless of geographic location, that

is—

(1) A part of the commercial or defense industrial base of the People’s Republic of China (including a

subsidiary or affiliate of such entity); or

(2) Owned or controlled by, or affiliated with, an element of the Government or armed forces of the

People’s Republic of China.

“Defense equipment” means any equipment, item of supply, component, or end product purchased

by DoD.

“Domestic concern” means—

(1) A concern incorporated in the United States (including a subsidiary that is incorporated in the

United States, even if the parent corporation is a foreign concern); or

(2) An unincorporated concern having its principal place of business in the United States.

“Domestic end product” means—

(1) For an end product that does not consist wholly or predominantly of iron or steel or a

combination of both—

(i) An unmanufactured end product mined or produced in the United States; or

(ii) An end product manufactured in the United States if—

(A) The cost of its qualifying country components and its components that are mined, produced, or

manufactured in the United States 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 in accordance with FAR 25.101(d); or award is made before January 1,

2030, for a foreign end product that exceeds 55 percent domestic content (see 225.103(b)(ii)). The

cost of components includes transportation costs to the place of incorporation into the end product

and U.S. duty (whether or not a duty-free entry certificate is issued). Components of unknown origin

are treated as foreign. Scrap generated, collected, and prepared for processing in the United States

is considered domestic. A component is considered to have been mined, produced, or manufactured

in the United States (regardless of its source in fact) if the end product in which it is incorporated is
manufactured in the United States and the component is of a class or kind for which the Government

has determined that—

(1) Sufficient and reasonably available commercial quantities of a satisfactory quality are not mined,

produced, or manufactured in the United States; or

(2) It is inconsistent with the public interest to apply the restrictions of the Buy American statute; or

(B) The end product is a commercially available off-the-shelf (COTS) item; or

(2) For an end product that consists wholly or predominantly of iron or steel or a combination of

both, an end product manufactured in the United States, if the cost of iron and steel not produced in

the United States or a qualifying country constitutes less than 5 percent of the cost of all the

components used in the end product (produced in the United States or a qualifying country means

that all manufacturing processes of the iron or steel must take place in the United States or a

qualifying country, except metallurgical processes involving refinement of steel additives). The cost

of iron and steel not produced in the United States or a qualifying country includes but is not limited

to the cost of iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or

forgings, not produced in the United States or a qualifying country, utilized in the manufacture of

the end product and a good faith estimate of the cost of all iron or steel components not produced in

the United States or a qualifying country, excluding COTS fasteners. Iron or steel components of

unknown origin are treated as foreign. If the end product contains multiple components, the cost of

all the materials used in such end product is calculated in accordance with the explanation of cost of

components in paragraph (1)(ii)(A) of this definition.

“Eligible product” means, instead of the definition in FAR 25.003—

(1) A foreign end product that—

(i) Is in a category listed in 225.401-70 ; and

(ii) Is not subject to discriminatory treatment, due to the applicability of a trade agreement to a

particular acquisition;

(2) A foreign construction material that is not subject to discriminatory treatment, due to the

applicability of a trade agreement to a particular acquisition; or

(3) A foreign service that is not subject to discriminatory treatment, due to the applicability of a

trade agreement to a particular acquisition.

“Foreign concern” means any concern other than a domestic concern.

“Free Trade Agreement country” does not include Oman.

“Nonqualifying country” means a country other than the United States or a qualifying country.

“Nonqualifying country component” means a component mined, produced, or manufactured in a

nonqualifying country.

“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 component” means a component mined, produced, or manufactured in a

qualifying country.

“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. Components of unknown origin are treated as

foreign; or

(ii) The end product is a COTS item.

“Qualifying country offer” means an offer of a qualifying country end product, including the price of

transportation to destination.

“Source,” when restricted by words such as foreign, domestic, or qualifying country, means the

actual manufacturer or producer of the end product or component.

“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 construction material” means

construction material that—

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

(2) In the case of a construction material 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

construction material distinct from the material from which it was transformed.

“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 Munitions List” means the munitions list of the International Traffic in Arms

Regulation in 22 CFR part 121.

Parent topic: Part 225 - FOREIGN ACQUISITION