30356 Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 225 and 252 

RIN 0750–AH69 

Defense Federal Acquisition 

Regulation Supplement: United StatesKorea Free Trade Agreement (DFARS 

Case 2012–D025) 

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-Korea Free Trade Agreement. The 

Republic of Korea is already party to the 

World Trade Organization Government 

Procurement Agreement. 

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–D025, 

using any of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D025’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2012– 

D025.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

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

D025’’ on your attached document. 

• Email: dfars@osd.mil. Include 

DFARS Case 2012–D025 in the subject 

line of the message. 

• Fax: 571–372–6094. 

• 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 

225 and the corresponding provisions 

and clauses in DFARS part 252 to 

implement the United States-Korea Free 

Trade Agreement (see the United StatesKorea Free Trade Agreement 

Implementation Act (Pub. L. 112–41) 

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

The Republic of Korea is already party 

to the World Trade Organization 

Government Procurement Agreement 

(WTO GPA). This Free Trade Agreement 

(FTA) now covers acquisition of 

supplies and services between $100,000 

and the current WTO GPA threshold of 

$202,000, lowering the threshold for— 

• Waiver of the applicability of the 

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

83) for some foreign supplies and 

construction materials from the 

Republic of Korea; and 

• Applicability of specified 

procurement procedures designed to 

ensure fairness in the acquisition of 

supplies and services (see FAR 25.408). 

These obligations include, among 

others, that an agency shall not impose 

the condition that, in order for an 

offeror to be allowed to submit an offer 

or be awarded a contract, the offeror has 

been previously awarded one or more 

contracts by an agency of the United 

States Government or that the offeror 

has prior work experience in the United 

States (see FAR 15.305(a)(2)(iv)). 

II. Discussion and Analysis 

This interim rule adds the Republic of 

Korea to the definition of ‘‘Free Trade 

Agreement country’’ in multiple 

locations in the DFARS. The Republic of 

Korea was already listed as a designated 

country because it is party to the WTO 

GPA. The excluded services for Korea 

FTA are the same as for the WTO GPA. 

By implementation of this Korea FTA, 

eligible goods and services from Korea 

are now covered when valued at or 

above $100,000, rather than at or above 

the WTO GPA threshold of $202,000. 

The threshold for the Korea FTA for 

construction is the same as the 

threshold for the WTO GPA for 

construction. 

The Korea FTA $100,000 threshold 

for supplies and services is higher than 

the threshold for supplies and services 

for most of the FTAs ($77,494), but not 

as high as the Bahrain, Morocco, and 

Peru FTA threshold for supplies and 

services ($202,000). Therefore, new 

alternates are required for the provision 

and clause for acquisition of 

photovoltaic devices (DFARS 252.225– 

7017 and 252.225–7018) and the Buy 

American Act—Free Trade 

Agreements—Balance of Payments 

Program provision and clause (DFARS 

252.225–7035 and 252.225–7036) to 

cover acquisitions that are valued at 

$77,494 or more but less than $100,000. 

In that dollar range, all FTAs are 

applicable, except for the Bahrain, 

Korea, Morocco, and Peru FTAs. 

Because the Korea FTA construction 

threshold of $7,777,000 is the same as 

the WTO GPA threshold, no new clause 

alternates are required for the Balance of 

Payments Program—Construction 

Material under Trade Agreements clause 

(DFARS 252.225–7045). 

There are also conforming changes to 

the clause prescriptions at DFARS 

225.1101, Alternate A, Annual 

Representations and Certifications, and 

DFARS 252.212–7001, Contract Terms 

and Conditions required to Implement 

Statutes or Executive Orders Applicable 

to Defense Acquisitions of Commercial 

Items. 

A minor correction was made to 

paragraph (c) of DFARS 252.225–7036, 

Buy American Act—Free Trade 

Agreements—Balance of Payments 

Program to add Peruvian end products 

to the list of end products not covered 

by the clause. The definition of 

‘‘Peruvian end products’’ had been 

added to paragraph (a), but was not then 

added in paragraph (c). This makes 

paragraph (c) consistent with the trade 

agreement thresholds specified in FAR 

25.402(b), as already implemented in 

paragraph (c) of Alternate II to DFARS 

252.225–7036, as well as in the basic 

provision at DFARS 252.225–7035 and 

its Alternate II. 

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 a significant 

regulatory action and, therefore, was 

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. 


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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. 

Korea is already a designated country 

under the WTO GPA. Although the rule 

now opens up Government procurement 

to the goods and services of Korea at or 

above the threshold of $100,000, 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 (except as described in 

paragraph (1) of the definition of 

‘‘simplified acquisition threshold’’ at 

FAR 2.101) are automatically reserved 

exclusively for small business concerns, 

unless the contracting officer 

determines that there is not a reasonable 

expectation of obtaining offers from two 

or more responsible small business 

concerns. 

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–D025), 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 the Republic of Korea would be 

listed. The rule also affects DFARS 

252.225–7018, which is a variant of the 

Buy American-trade agreements 

certifications already approved, which 

was issued as an interim rule under 

DFARS Case 2011–D046 (76 FR 78858, 

December 20, 2011). 

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 

FTA with the Republic of Korea, for 

which the President signed the 

implementing legislation into law on 

October 21, 2011 (Pub. L. 112–041), 

entered into force on March 15, 2012. 

This 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 the Republic of 

Korea, as the Republic of Korea 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. 

List of Subjects in 48 CFR Parts 225 and 

252 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 225 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 225 and 252 continues to read as 

follows: 

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

chapter 1. 

PART 225—FOREIGN ACQUISITION 

225.1101 [Amended] 

■ 2. Section 225.1101 is amended by: 

■ a. Adding paragraphs (10)(v) and (vi); 

■ b. In paragraph (11)(i)(A), removing 

‘‘$77,494’’ and adding ‘‘$100,000’’ in its 

place; and 

■ c. Adding paragraph 11(i)(C). 

The additions read as follows: 

225.1101 Acquisition of supplies. 

* * * * * 

(10) * * * 

(v) Use the provision with its 

Alternate IV when the clause at 

252.225–7036 is used with its Alternate 

IV. 

(vi) Use the provision with its 

Alternate V when the clause at 252.225– 

7036 is used with its Alternate V. 

(11)(i) * * * 

(C) Use the clause with its Alternate 

IV when the estimated value equals or 

exceeds $77,494 but is less than 

$100,000, except if the acquisition is of 

end products in support of operations in 

Afghanistan, use with its Alternate V. 

* * * * * 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 3. Section 252.204–7007 is amended 

by removing the clause date ‘‘(MAR 

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

place and revising paragraph (d)(2)(vi) 

to read as follows: 

252.204–7007 Alternate A, Annual 

Representations and Certifications. 

* * * * * 

(d) * * * 

(2) * * * 

___ (vi) 252.225–7035, Buy American 

Act—Free Trade Agreements—Balance 

of Payments Program Certificate. 

___ Use with Alternate I. 

___ Use with Alternate II. 

___ Use with Alternate III. 

___ Use with Alternate IV. 

___ Use with Alternate V. 

* * * * * 

■ 4. Section 252.212–7001 is amended 

by removing the clause date ‘‘(APR 

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

place, revising paragraphs (b)(12) and 

(b)(13)(i), and revising paragraph (b)(16) 

to read as follows: 

252.212–7001 Contract Terms and 

Conditions Required to Implement Statutes 

or Executive Orders Applicable to Defense 

Acquisitions of Commercial Items. 

* * * * * 

(b) * * * 

(12) ___ 252.225–7017, Photovoltaic 

Devices (MAY 2012) (Section 846 of 

Pub. L. 111–383). 

(13)(i) ___ 252.225–7021, Trade 

Agreements (MAY 2012) (19 U.S.C. 

2501–2518 and 19 U.S.C. 3301 note). 

* * * * * 

(16)(i) ___ 252.225–7036, Buy 

American Act—Free Trade 

Agreements—Balance of Payments 

Program (MAY 2012) (41 U.S.C. chapter 

83 and 19 U.S.C. 3301 note). 

(ii) ___ Alternate I (OCT 2011) of 

252.225–7036. 

(iii) ___ Alternate II (OCT 2011) of 

252.225–7036. 

(iv) ___ Alternate III (OCT 2011) of 

252.225–7036. 

(v) ___ Alternate IV (MAY 2012) of 

252.225–7036. 

(vi) ___ Alternate V (MAY 2012) of 

252.225–7036. 

* * * * * 

■ 5. Section 252.225–7017 is amended 

by— 

■ a. Removing the clause date ‘‘(MAR 

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

place; 


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

‘‘Designated country’’, revising 

paragraph (ii); 

■ c. In paragraph (a), revising the 

definition of ‘‘Free Trade Agreement 

country’’ and adding, in alphabetical 

order, the definition of ‘‘Korean 

photovoltaic device’’; 

■ d. Redesignating paragraphs (c)(3) and 

(c)(4) as paragraphs (c)(4) and (c)(5), and 

adding newly designated paragraph 

(c)(3); and 

■ e. In newly designated paragraph 

(c)(4), removing ‘‘$77,494’’ and adding 

‘‘$100,000’’ in its place. 

The additions and revisions read as 

follows: 

252.225–7017 Photovoltaic Devices. 

* * * * * 

(a) * * * 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, 

Costa Rica, Dominican Republic, El 

Salvador, Guatemala, Honduras, Korea 

(Republic of), Mexico, Morocco, 

Nicaragua, Peru, or Singapore); 

* * * * * 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Costa 

Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic 

of), Mexico, Morocco, Nicaragua, Peru, 

or Singapore. 

* * * * * 

Korean photovoltaic device means an 

article that— 

(i) Is wholly manufactured in 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. 

* * * * * 

(c) * * * 

(3) $77,494 or more but less than 

$100,000, then the Contractor shall 

utilize under this contract only 

domestic photovoltaic devices, 

qualifying country photovoltaic devices, 

or Free Trade Agreement country 

photovoltaic devices (other than 

Bahrainian, Korean, Moroccan, or 

Peruvian photovoltaic devices), unless, 

in its offer, it specified utilization of 

other foreign photovoltaic devices in 

paragraph (c)(4)(ii) of the Photovoltaic 

Devices—Certificate provision of the 

solicitation. If the Contractor certified in 

its offer that it will utilize a qualifying 

country photovoltaic device or a Free 

Trade Agreement country photovoltaic 

device (other than a Bahrainian, Korean, 

Moroccan, or Peruvian photovoltaic 

device), the Contractor shall utilize a 

qualifying country photovoltaic device; 

a Free Trade Agreement country 

photovoltaic device (other than a 

Bahrainian, Korean, Moroccan, or 

Peruvian photovoltaic device), or, at the 

Contractor’s option, a domestic 

photovoltaic device; 

* * * * * 

■ 6. Section 252.225–7018 is amended 

by— 

■ a. Removing the clause date ‘‘(MAR 

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

place; 

■ b. In paragraph (a), removing ‘‘Free 

Trade Agreement photovoltaic device, 

least developed country photovoltaic 

device,’’ and adding ‘‘Free Trade 

Agreement photovoltaic device, Korean 

photovoltaic device, least developed 

country photovoltaic device’’ in its 

place; 

■ c. Redesignating paragraphs (c)(4) and 

(c)(5) as paragraphs (c)(5) and (c)(6), and 

adding newly designated paragraph 

(c)(4); and 

■ d. In newly designated paragraph 

(c)(5), removing ‘‘$77,494’’ and adding 

‘‘$100,000’’ in its place. 

The additions and revisions read as 

follows: 

252.225–7018 Photovoltaic Devices— 

Certificate. 

* * * * * 

(c) * * * 

(4) If $77,494 or more but less than 

$100,000— 

__ (i) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

domestic photovoltaic device; a 

qualifying country (except Australian or 

Canadian) photovoltaic device; a Free 

Trade Agreement country photovoltaic 

device (other than a Bahrainian, Korean, 

Moroccan, or Peruvian photovoltaic 

device) [Offeror to specify country of 

origin ______]; or 

__ (ii) The offered foreign 

photovoltaic devices (other than those 

from countries listed in paragraph 

(c)(4)(i) of this provision) are the 

product of ______. [Offeror to specify 

country of origin, if known, and provide 

documentation that the cost of a 

domestic photovoltaic device. would be 

unreasonable in comparison to the cost 

of the proposed foreign photovoltaic 

device.] 

* * * * * 

252.225–7021 [Amended] 

■ 7. Section 252.225–7021 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’’, paragraph (ii), 

removing ‘‘Guatemala, Honduras, 

Mexico’’ and adding ‘‘Guatemala, 

Honduras, Korea (Republic of), Mexico’’ 

in its place. 

■ 8. Section 252.225–7035 is amended 

by adding Alternates IV and V to read 

as follows: 

252.225–7035 Buy American Act—Free 

Trade Agreements—Balance of Payments 

Program Certificate. 

* * * * * 

ALTERNATE IV (MAY 2012) As 

prescribed in 225.1101(10)(v), add a 

definition of ‘‘Korean end product’’ in 

paragraph (a) of the basic provision; 

substitute the phrase ‘‘Free Trade 

Agreement country end products other 

than Bahrainian end products, Korean 

end products, Moroccan end products, 

or Peruvian end products’’ for the 

phrase ‘‘Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, or 

Peruvian end products’’ in paragraphs 

(b)(2) and (c)(2)(ii) of the basic 

provision. 

ALTERNATE V (MAY 2012) As 

prescribed in 225.1101(10)(vi), 

substitute the following paragraphs (a), 

(b)(2), (c)(2)(i), and (c)(2)(ii) for 

paragraphs (a), (b)(2), (c)(2)(i), and 

(c)(2)(ii) of the basic clause: 

(a) Definitions. Bahrainian end 

product, commercially available off-theshelf (COTS) item, component, domestic 

end product, Free Trade Agreement 

country, Free Trade Agreement country 

end product, foreign end product, 

Korean end product, Moroccan end 

product, Peruvian end product, 

qualifying country end product, South 

Caucasus/Central and South Asian (SC/ 

CASA) state end product, and United 

States, as used in this provision, have 

the meanings given in the Buy 

American Act—Free Trade 

Agreements—Balance of Payments 

Program clause of this solicitation. 

(b)(2) For line items subject to Free 

Trade Agreements, will evaluate offers 

of qualifying country end products, SC/ 

CASA state end products, or Free Trade 

Agreement end products other than 

Bahrainian end products, Korean end 

products, Moroccan end products, or 

Peruvian end products without regard to 

the restrictions of the Buy American Act 

or the Balance of Payments Program. 

(c)(2)(i) The offeror certifies that the 

following supplies are qualifying 

country (except Australian or Canadian) 

or SC/CASA state end products: 

(Line Item Number) 

(Country of Origin) 


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(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