[Federal Register Volume 65, Number 109 (Tuesday, June 6, 2000)]
[Rules and Regulations]
[Pages 36027-36028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13823]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 97-18; FAR Case 1999-008; Item VII]
RIN 9000-AI54


Federal Acquisition Regulation; Restrictions on Acquisitions from 
Yugoslavia and Afghanistan

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to implement two 
Executive orders, as modified by Office of Foreign Assets Control 
(OFAC) General Licenses Numbers 2 and 4. These Executive orders 
prohibit the importation into the United States of any goods or 
services from Serbia (excluding the territory of Kosovo) or the 
territory of Afghanistan controlled by the Taliban.

DATES: Effective Date: July 6, 2000.
    Applicability Date: The FAR, as amended by this rule, is applicable 
to solicitations issued on or after July 6, 2000.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAC 97-18, FAR case 1999-008.

SUPPLEMENTARY INFORMATION:   

A. Background

    This final rule amends FAR Subpart 25.7, section 25.1103, and the 
clauses at FAR 52.212-5, Contract Terms and Conditions Required to 
Implement Statutes or Executive Orders--Commercial Items, FAR 52.213-4, 
Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items), and FAR 52.225-13, Restrictions on Foreign Purchases, to 
implement Executive Order 13121 of April 30, 1999, Blocking Property 
and Prohibiting Transactions With the Taliban; and Executive Order 
13129 of July 4, 1999, Blocking Property of the Governments of the 
Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of 
Serbia, and the Republic of Montenegro, and Prohibiting Trade 
Transactions Involving the Federal Republic of Yugoslavia (Serbia and 
Montenegro) in Response to the Situation in Kosovo. These Executive 
orders, as modified by OFAC General Licenses Numbers 2 and 4, prohibit 
the importation into the United States of any goods or services from 
Serbia (excluding the territory of Kosovo) or the territory of 
Afghanistan controlled by the Taliban. As a matter of policy, the 
Government does not generally acquire, even for overseas use, supplies 
or services that cannot be imported lawfully into the United States.
    DoD, GSA, and NASA published a proposed rule in the Federal 
Register on December 1, 1999 (64 FR 67446). Four respondents submitted 
comments. The Councils considered all comments in the formulation of 
this final rule. This final rule differs from the proposed rule as 
follows:
    <bullet> Limits the restriction to Serbia (excluding the territory 
of Kosovo), rather than Serbia and Montenegro, based on OFAC General 
Licenses Numbers 2 and 4. General License No. 2 was issued by OFAC on 
May 5, 1999, and relates to trade transactions with Montenegro. General 
License No. 4 was issued by OFAC on August 17, 1999, and relates to 
trade transactions involving the territory of Kosovo.
    <bullet> Adds an exception at FAR 25.701(a)(2) permitting the 
contracting officer, in unusual circumstances, to acquire for use 
outside the United States supplies and services restricted in 
25.701(a)(1).
    This rule was not subject to Office of Management and Budget review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the

[[Page 36028]]

meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because it only applies to acquisition of items from Serbia or 
Afghanistan.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 25 and 52

    Government procurement.

    Dated: May 26, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set 
forth below:
    1. The authority citation for 48 CFR parts 25 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 25--FOREIGN ACQUISITION

    2. Amend section 25.701 by revising paragraph (a) to read as 
follows:


25.701  Restrictions.

    (a)(1) The Government generally does not acquire supplies or 
services that cannot be imported lawfully into the United States. 
Therefore, except as provided in paragraph (a)(2) of this section, even 
for overseas use, agencies and their contractors and subcontractors 
must not acquire any supplies or services originating from sources 
within, or that were located in or transported from or through
    (i) Cuba (31 CFR part 515);
    (ii) Iran (31 CFR part 560);
    (iii) Iraq (31 CFR part 575);
    (iv) Libya (31 CFR part 550);
    (v) North Korea (31 CFR part 500);
    (vi) Sudan (31 CFR part 538);
    (vii) Territory of Afghanistan controlled by the Taliban (Executive 
Order 13129 of July 4, 1999, Blocking Property and Prohibiting 
Transactions With the Taliban); or
    (viii) Serbia, excluding the territory of Kosovo (Executive Order 
13121 of April 30, 1999, Blocking Property of the Governments of the 
Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of 
Serbia, and the Republic of Montenegro, and Prohibiting Trade 
Transactions Involving the Federal Republic of Yugoslavia (Serbia and 
Montenegro) in Response to the Situation in Kosovo).
    (2)(i) Unless agency procedures require a higher level of approval, 
the contracting officer may, in unusual circumstances, acquire for use 
outside the United States supplies and services restricted in paragraph 
(a)(1) of this section. Examples of unusual circumstances are an 
emergency or when the supplies or services are not otherwise available 
and a substitute is not acceptable.
    (ii) The contracting officer must provide documentation in the 
contract file whenever this exception is used.
* * * * *

    3. Revise section 25.702 to read as follows:


25.702  Source of further information.

    Refer questions concerning the restrictions in 25.701 to the 
Department of the Treasury, Office of Foreign Assets Control, 
Washington, D.C. 20220 (Telephone (202) 622-2520).

    4. Amend section 25.1103 by revising paragraph (a) to read as 
follows:


25.1103   Other provisions and clauses.

    (a) Restrictions on certain foreign purchases. Insert the clause at 
52.225-13, Restrictions on Certain Foreign Purchases, in solicitations 
and contracts with a value exceeding $2,500, unless an exception 
applies (see 25.701(a)(2)).

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Amend section 52.212-5 by--
    a. Revising the date of the clause and paragraph (a);
    b. In the first sentence of the introductory text of paragraphs 
(b), (c), and (d), by removing ``agrees to'' and adding ``shall'' in 
their place; and
    c. Removing paragraph (b)(21) and redesignating paragraphs (b)(19) 
and (b)(20) as (b)(20) and (b)(21), respectively; and adding a new 
paragraph (b)(19) to read as follows:


52.212-5  Contract Terms and Conditions Required to Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders--Commercial Items (July 2000)

    (a) The Contractor shall comply with the following FAR clauses, 
which are incorporated in this contract by reference, to implement 
provisions of law or executive orders applicable to acquisitions of 
commercial items:
    (1) 52.222-3, Convict Labor (E.O. 11755).
    (2) 52.233-3, Protest after Award (31 U.S.C. 3553).
    (b) * * *
    __ ; (19) 52.225-13, Restriction on Certain Foreign Purchases 
(E.O. 12722, 12724, 13059, 13067, 13121, and 13129).
* * * * *
6. Amend section 52.213-4 by revising the date of the clause and 
paragraph (a)(1)(ii) to read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (July 2000)

    (a) * * *
    (1) * * *
* * * * *
    (ii) 52.225-13, Restrictions on Certain Foreign Purchases (July 
2000) (E.O.'s 12722, 12724, 13059, 13067, 13121, and 13129).
* * * * *
    7. Amend section 52.225-13 by revising the date of the clause and 
the last sentence of paragraph (a) to read as follows:


52.225-13  Restrictions on Certain Foreign Purchases.

* * * * *

Restrictions on Certain Foreign Purchases (July 2000)

    (a) * * * Those countries are Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, the territory of Afghanistan controlled by the 
Taliban, and Serbia (excluding the territory of Kosovo).
* * * * *

[FR Doc. 00-13823 Filed 6-1-00; 4:01 pm]
BILLING CODE 6820-EP-P