[Federal Register Volume 62, Number 173 (Monday, September 8, 1997)]
[Rules and Regulations]
[Pages 47153-47154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23658]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Parts 212, 225, 244, and 252

[DFARS Case 96-D333]


Defense Federal Acquisition Regulation Supplement; Application of 
Berry Amendment

AGENCY: Department of Defense (DOD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Director of Defense Procurement has adopted as final, with 
changes, the interim rule that was published at 62 FR 5779 on February 
7, 1997. The rule amends the Defense Federal Acquisition Regulation 
Supplement (DFARS) to implement Section 8109 of the National Defense 
Appropriations Act for Fiscal Year 1997. Section 8109 provides that, in 
applying the Berry Amendment, the term ``synthetic fabric and coated 
synthetic fabric'' shall be deemed to include all textile fibers and 
yarns that are for use in such fabrics; and that the domestic source 
restrictions of the Berry Amendment shall apply to contracts and 
subcontracts for the procurement of commercial items.

EFFECTIVE DATE: September 8, 1997.

FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062. Telephone (703) 602-0131; telefax (703) 602-
0350. Please cite DFARS Case 96-D333.

SUPPLEMENTARY INFORMATION:

A. Background

    An interim rule with request for comments was published at 62 FR 
5779 on February 7, 1997. The rule amended DFARS Parts 212, 225, 244, 
and 252 to extend the application of the Berry Amendment domestic 
source restrictions (10 U.S.C. 2241 note) to textile fibers and yarns 
that are for use in synthetic fabric and coated synthetic fabric; and 
to require flow down of the Berry Amendment restrictions to 
subcontracts for the procurement of commercial items. The interim rule 
provided an exception to the Berry Amendment restrictions for purchases 
of fibers and yarns that are for use in synthetic fabric or coated 
synthetic fabric, if such fabric is to be used as a component of an end 
item not classified in Federal Supply Group 83 or 84. This

[[Page 47154]]

final rule revises the exception for fibers and yarns to apply to those 
that are for use in synthetic fabric or coated synthetic fabric, if 
such fabric is to be used as a component of an end item that is not a 
textile product; and provides examples of textile products, which 
include, but are not limited to, products in Federal Supply Groups 83 
and 84.
    Five respondents submitted comments on the interim rule. All 
comments were considered in developing the final rule.

B. Regulatory Flexibility Act

    A final regulatory flexibility analysis has been performed. The 
analysis is summarized as follows: The legal basis for this rule is the 
Berry Amendment (10 U.S.C. 2241 note). There were no public comments in 
response to the initial regulatory flexibility analysis. However, 
various comments on the interim rule suggested other ways to identify 
the textile products to which the domestic source restrictions on 
textile fibers apply. As a result, the final rule uses additional 
examples to clarify what products are ``textile products.'' This rule 
is expected to have a positive impact on small entities that provide 
domestic textile products or specialty metals restricted by the Berry 
Amendment, because it reduces foreign competition for those items. The 
rule imposes no new reporting, recordkeeping, or compliance 
requirements for offerors or contractors. There are no practical 
alternatives that will meet the requirements of the Berry Amendment.
    A copy of the analysis may be obtained by contacting the Defense 
Acquisition Regulations Council, Attn: Ms. Amy Williams, 
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telephone (703) 602-0131; telefax (703) 602-0350.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because this final rule 
does not impose any reporting or recordkeeping requirements that 
require Office of Management and Budget approval under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Parts 212, 225, 244, and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

Interim Rule Adopted as Final With Changes

    Accordingly, the interim rule amending 48 CFR parts 212, 225, 244, 
and 252, which was published at 62 FR 5779 on February 7, 1997, is 
adopted as final with the following changes:
    1. The authority citation for 48 CFR parts 212, 225, 244, and 252 
continues to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 225--FOREIGN ACQUISITION

    2. Section 225.7002-1 is amended by revising paragraph (a)(9) to 
read as follows:


225.7002-1  Restrictions.

    (a) * * *
    (9) Any item of individual equipment (Federal Supply Class 8465) 
manufactured from or containing any of the listed fibers, yarns, 
fabrics, or materials.
* * * * *
    3. Section 225.7002-2 is amended by revising paragraph (j) to read 
as follows:


225.7002-2  Exceptions.

* * * * *
    (j) Purchases of fibers and yarns that are for use in synthetic 
fabric or coated synthetic fabric (but not the purchase of the 
synthetic or coated synthetic fabric itself), if such fabric is to be 
used as a component of an end item that is not a textile product. 
Examples of textile products, made in whole or in part of fabric, 
include--
    (1) Draperies, floor coverings, furnishings, and bedding (Federal 
Supply Group 72, Household and Commercial Furnishings and Appliances);
    (2) Items made in whole or in part of fabric in Federal Supply 
Group 83, Textile/leather/furs/apparel/findings/tents/flags, or Federal 
Supply Group 84, Clothing, Individual Equipment and Insignia;
    (3) Upholstered seats (whether for household, office, or other 
use); and
    (4) Parachutes (Federal Supply Class 1670).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.225-7012 is amended by revising the clause date and 
paragraphs (a)(10) and (b)(4) to read as follows:


252.225-7012  Preference for certain domestic commodities.

* * * * *

Preference for Certain Domestic Commodities (Sept. 1997)

    (a) * * *
    (10) Any item of individual equipment (Federal Supply Class 
8465) manufactured from or containing such fibers, yarns, fabrics, 
or materials.
    (b) * * *
    (4) To purchase of fibers and yarns that are for use in 
synthetic fabric or coated synthetic fabric (but not the purchase of 
the synthetic or coated synthetic fabric itself), if such fabric is 
to be used as a component of an end item that is not a textile 
product. Examples of textile products, made in whole or in part of 
fabric, include--
    (i) Draperies, floor coverings, furnishings, and bedding 
(Federal Supply Group 72, Household and Commercial Furnishings and 
Appliances);
    (ii) Items made in whole or in part of fabric in Federal Supply 
Group 83, Textile/leather/furs/apparel/findings/tents/flags, or 
Federal Supply Group 84, Clothing, Individual Equipment and 
Insignia;
    (iii) Upholstered seats (whether for household, office, or other 
use); and
    (iv) Parachutes (Federal Supply Class 1670).

(End of clause)

[FR Doc. 97-23658 Filed 9-5-97; 8:45 am]
BILLING CODE 5000-04-M