Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Rules and Regulations 68699 

State and location Community 

No. 

Effective date authorization/ 

cancellation of sale of flood 

insurance in community 

Current effective 

map date 

Date certain 

Federal assistance 

no longer available 

in SFHAs 

Stuckey, Town of, Williamsburg 

County.

450192 July 17, 1975, Emerg; September 1, 

1986, Reg; November 16, 2012, 

Susp. 

......do ........................ Do. 

Williamsburg County, Unincorporated Areas..450187 March 12, 1975, Emerg; February 6, 

1991, Reg; November 16, 2012, 

Susp. 

......do ........................ Do. 

Region IX 

California: 

Grover Beach, City of, San Luis 

Obispo County.

060306 March 27, 1975, Emerg; August 1, 

1984, Reg; November 16, 2012, 

Susp. 

......do ........................ Do. 

San Luis Obispo, City of, San 

Luis Obispo County.

060310 August 3, 1973, Emerg; April 16, 

1979, Reg; November 16, 2012, 

Susp. 

......do ........................ Do. 

San Luis Obispo County, Unincorporated Areas.060304 June 26, 1974, Emerg; July 5, 1982, 

Reg; November 16, 2012, Susp. 

......do ........................ Do. 

* -do- = Ditto. 

Code for reading third column: Emerg. —Emergency; Reg. —Regular; Susp. —Suspension. 

Dated: November 9, 2012. 

David L. Miller, 

Associate Administrator, Federal Insurance 

and Mitigation Administration, Department 

of Homeland Security, Federal Emergency 

Management Agency. 

[FR Doc. 2012–27846 Filed 11–15–12; 8:45 am] 

BILLING CODE 9110–12–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

RIN 0750–AH79 

Defense Federal Acquisition 

Regulation Supplement: New Free 

Trade Agreement—Panama (DFARS 

Case 2012–D044) 

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-Panama Trade Promotion 

Agreement. This Trade Promotion 

Agreement is a free trade agreement that 

provides for mutually nondiscriminatory treatment of eligible 

products and services from Panama. 

DATES: Effective date: November 16, 

2012. 

Comment date: Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before January 15, 2013, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2012–D044, 

using any of the following methods: 

Regulations.gov: http:// 

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D044’’ 

under the heading ‘‘Enter keyword or 

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

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2012– 

D044.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

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

D044’’ on your attached document. 

Email: dfars@osd.mil. Include DFARS 

Case 2012–D044 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 

252 to implement the United StatesPanama Trade Promotion Agreement 

Implementation Act (Pub. L. 112–43) 

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

This Trade Promotion Agreement is 

designated in the FAR as the Panama 

Free Trade Agreement (FTA). The FTA 

provides for— 

• Waiver of the applicability of the 

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

83) for some foreign supplies and 

construction materials from Panama; 

and 

• Applicability of specified 

procurement procedures designed to 

ensure fairness in the acquisition of 

supplies and services (see FAR 25.408). 

II. Discussion and Analysis 

This interim rule adds Panama to the 

definition of ‘‘Free Trade Agreement 

country’’ in multiple locations in the 

DFARS. The Panama FTA covers 

acquisitions of supplies and services 

equal to or exceeding $202,000. The 

Panama FTA threshold for supplies and 

services is higher than the threshold for 

supplies and services for most of the 

FTAs ($77,494), and equals the Bahrain, 

Morocco, and Peru FTA thresholds for 

supplies and services ($202,000). 

Therefore, for acquisition less than 

$202,000 (or $100,000 for Korea), all 

FTAs are applicable except for the 

Bahrain, Korea, Morocco, Panama, and 

Peru FTAs. 

Because the Panama FTA’s 

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— 


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68700 Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Rules and Regulations 

Construction Material under Trade 

Agreements clause (DFARS 252.225– 

7045). 

There are also conforming changes to 

the clause at DFARS 252.212–7001, 

Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders Applicable to Defense 

Acquisitions of Commercial Items. 

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 not a significant 

regulatory action and, therefore, was not 

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. 

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. 

Although the rule now opens up 

Government procurement to the goods 

and services of Panama at or above the 

threshold of $202,000, 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 (with some exceptions) 

are automatically reserved exclusively 

for small business concerns. Therefore, 

DoD has not performed an Initial 

Regulatory Flexibility Analysis. 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–D044), 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 0704–229, 

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 Panama would be listed. The rule 

also affects DFARS 252.225–7018, 

which is a variant of the Buy Americantrade 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 

Free Trade Agreement with Panama, for 

which the President signed the 

implementing legislation into law on 

October 21, 2012 (Pub. L. 112–043), took 

effect on October 31, 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 Panama, as 

Panama in turn honors the 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 Part 252 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 252 is 

amended as follows: 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 1. The authority citation for 48 CFR 

part 252 continues to read as follows: 

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

chapter 1. 

252.212–7001 [Amended] 

■ 2. Section 252.212–7001 is amended 

as follows: 

■ a. The clause heading is amended by 

removing the clause date ‘‘(JUN 2012)’’ 

and adding ‘‘(NOV 2012)’’ in its place. 

■ b. Paragraph (b)(12) is amended by 

removing the clause date ‘‘(JUN 2012)’’ 

and adding ‘‘(NOV 2012)’’ in its place. 

■ c. Paragraph (b)(13)(i) is amended by 

removing the clause date ‘‘(JUN 2012)’’ 

and adding ‘‘(NOV 2012)’’ in its place. 

■ d. Paragraphs (b)(16)(i), (iii), (v), and 

(vi) are amended by removing the clause 

date ‘‘(JUN 2012)’’ and adding ‘‘(NOV 

2012)’’ in its place. 

■ 3. Section 252.225–7017 is 

amended— 

■ a. In the clause heading, by removing 

the clause date ‘‘(AUG 2012)’’ and 

adding ‘‘(NOV 2012)’’ in its place; 

■ b. In paragraph (a): 

■ i. In the definition of ‘‘designated 

country’’, paragraph (ii), by adding in 

alphabetical order the country 

‘‘Panama,’’; 

■ ii. In the definition of ‘‘Free Trade 

Agreement country’’, by adding in 

alphabetical order the country 

‘‘Panama,’’; and 

■ iii. By adding in alphabetical order a 

definition for ‘‘Panamanian photovoltaic 

device’’; 

■ c. By revising paragraphs (c)(3)and (4). 

The additions and revisions read as 

follows: 

252.225–7017 Photovoltaic Devices. 

* * * * * 

(a) * * * 

‘‘Panamanian photovoltaic device’’ 

means an article that— 

(i) Is wholly manufactured in Panama; 

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 Panama 

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, 

Panamanian, 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 


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Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Rules and Regulations 68701 

Agreement country photovoltaic device 

(other than a Bahrainian, Korean, 

Moroccan, Panamanian, 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, Panamanian, or Peruvian 

photovoltaic device), or, at the 

Contractor’s option, a domestic 

photovoltaic device; 

(4) $100,000 or more but less than 

$202,000, 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, Moroccan, Panamanian 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, 

Moroccan, Panamanian, or Peruvian 

photovoltaic device), the Contractor 

shall utilize a qualifying country 

photovoltaic device; a Free Trade 

Agreement country photovoltaic device 

(other than a Bahrainian, Moroccan, 

Panamanian, or Peruvian photovoltaic 

device), or, at the Contractor’s option, a 

domestic photovoltaic device; or 

* * * * * 

■ 4. Section 252.225–7018 is amended 

by removing the clause date ‘‘(MAY 

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

place and revising paragraphs (a), (c)(4), 

and (c)(5) to read as follows: 

252.225–7018 Photovoltaic Devices— 

Certificate. 

* * * * * 

(a) Definitions. ‘‘Bahrainian 

photovoltaic device,’’ ‘‘Canadian 

photovoltaic device,’’ ‘‘Caribbean Basin 

photovoltaic device,’’ ‘‘designated 

country,’’ ‘‘domestic photovoltaic 

device,’’ ‘‘foreign photovoltaic device,’’ 

‘‘Free Trade Agreement country,’’ ‘‘Free 

Trade Agreement photovoltaic device,’’ 

‘‘Korean photovoltaic device,’’ ‘‘least 

developed country photovoltaic 

device,’’ ‘‘Moroccan photovoltaic 

device,’’ ‘‘Panamanian photovoltaic 

device,’’ ‘‘Peruvian photovoltaic 

device,’’ ‘‘photovoltaic device,’’ 

‘‘qualifying country,’’ ‘‘qualifying 

country photovoltaic device,’’ ‘‘United 

States,’’ ‘‘U.S.-made photovoltaic 

device,’’ and ‘‘WTO GPA country 

photovoltaic device’’ have the meanings 

given in the Photovoltaic Devices clause 

of this solicitation. 

* * * * * 

(c) * * * 

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

$100,000— 

ll(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, Panamanian, or Peruvian 

photovoltaic device) [Offeror to specify 

country of originllll]; or 

ll(ii) The offered foreign 

photovoltaic devices (other than those 

from countries listed in paragraph 

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

product of llllll. [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.] 

(5) If $100,000 or more but less than 

$202,000— 

ll(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, 

Moroccan, Panamanian, or Peruvian 

photovoltaic device) [Offeror to specify 

country of originllll]; or 

ll(ii) The offered foreign 

photovoltaic devices (other than those 

from countries listed in paragraph 

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

product of llllll. [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.] 

* * * * * 

■ 5. Section 252.225–7021 is amended 

by removing the clause date ‘‘(JUN 

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

place, and in paragraph (a), in the 

definition for ‘‘designated country,’’ by 

revising paragraph (ii) to read as 

follows: 

252.225–7021 Trade agreements. 

* * * * * 

(a) * * * 

‘‘Designated country’’ means— 

* * * * * 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, 

Colombia, Costa Rica, Dominican 

Republic, El Salvador, Guatemala, 

Honduras, Korea (Republic of), Mexico, 

Morocco, Nicaragua, Panama, Peru, or 

Singapore); 

* * * * * 

■ 6. Section 252.225–7035 is amended 

by— 

■ a. Removing the clause date ‘‘(JUN 

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

place; 

■ b. Adding the paragraph designation 

‘‘(a)’’ to the ‘‘Definitions’’ paragraph; 

■ c. Revising newly designated 

paragraph (a) and paragraphs (b) and (c); 

and 

■ d. Revising alternates I, II, IV, and V. 

The revisions read as follows: 

252.225–7035 Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate. 

* * * * * 

(a) Definitions. ‘‘Bahrainian end 

product,’’ ‘‘commercially available offthe-shelf (COTS) item,’’ ‘‘component,’’ 

‘‘domestic end product,’’ ‘‘Free Trade 

Agreement country,’’ ‘‘Free Trade 

Agreement country end product,’’ 

‘‘foreign end product,’’ ‘‘Moroccan end 

product,’’ ‘‘Panamanian end product,’’ 

‘‘Peruvian end product,’’ ‘‘qualifying 

country end product,’’ and ‘‘United 

States,’’ as used in this provision, have 

the meanings given in the Buy 

American—Free Trade Agreements— 

Balance of Payments Program clause of 

this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance 

with the policies and procedures of Part 

225 of the Defense Federal Acquisition 

Regulation Supplement; and 

(2) For line items subject to Free 

Trade Agreements, will evaluate offers 

of qualifying country end products or 

Free Trade Agreement country end 

products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian 

end products without regard to the 

restrictions of the Buy American or the 

Balance of Payments Program. 

(c) Certifications and identification of 

country of origin. (1) For all line items 

subject to the Buy American—Free 

Trade Agreements—Balance of 

Payments Program clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except the end 

products listed in paragraph (c)(2) of 

this provision, is a domestic end 

product; and 

(ii) Components of unknown origin 

are considered to have been mined, 

produced, or manufactured outside the 

United States or a qualifying country. 


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68702 Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Rules and Regulations 

(2) The offeror shall identify all end 

products that are not domestic end 

products. 

(i) The offeror certifies that the 

following supplies are qualifying 

country (except Australian or Canadian) 

end products: 

lllllllllllllllllllll

(Line Item Number) lllllllllllllllllllll

(Country of Origin) 

(ii) The offeror certifies that the 

following supplies are Free Trade 

Agreement country end products other 

than Bahrainian end products, 

Moroccan end products, Panamanian 

end products or Peruvian end products: 

lllllllllllllllllllll

(Line Item Number) lllllllllllllllllllll

(Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end 

products manufactured in the United 

States that do not qualify as domestic 

end products, i.e., an end product that 

is not a COTS item and does not meet 

the component test in paragraph (ii) of 

the definition of ‘‘domestic end 

product’’: 

lllllllllllllllllllll

(Line Item Number) lllllllllllllllllllll

(Country of Origin (If known)) 

* * * * * 

ALTERNATE I (NOV 2012) 

As prescribed in 225.1101(10)(ii), 

substitute the phrase ‘‘Canadian end 

product’’ for the phrases ‘‘Bahrainian 

end product,’’ ‘‘Free Trade Agreement 

country,’’ ‘‘Free Trade Agreement 

country end product,’’ ‘‘Moroccan end 

product,’’ ‘‘Panamanian end product,’’ 

and ‘‘Peruvian end products’’ in 

paragraph (a) of the basic provision; 

substitute the phrase ‘‘Canadian 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; and 

delete the phrase ‘‘Australian or’’ from 

paragraph (c)(2)(i) of the basic 

provision. 

ALTERNATE II (NOV 2012) 

As prescribed in 225.1101(10)(iii), 

add the terms ‘‘South Caucasus/Central 

and South Asian (SC/CASA) state’’ and 

‘‘South Caucasus/Central and South 

Asian (SC/CASA) state end product’’ in 

paragraph (a) and substitute the 

following paragraphs (b)(2) and (c)(2)(i) 

for paragraphs (b)(2) and (c)(2)(i) of the 

basic clause. 

(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 country end products other 

than Bahrainian end products, 

Moroccan end products, Panamanian 

end products, or Peruvian end products 

without regard to the restrictions of the 

Buy American 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: 

lllllllllllllllllllll

(Line Item Number) lllllllllllllllllllll

(Country of Origin) 

(End of provision) 

* * * * * 

ALTERNATE IV (NOV 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, 

Panamanian end products, or Peruvian 

end products’’ for the phrase ‘‘Free 

Trade Agreement country end products 

other than Bahrainian end products, 

Moroccan end products, Panamanian 

end products, or Peruvian end 

products’’ in paragraphs (b)(2) and 

(c)(2)(ii) of the basic provision. 

ALTERNATE V (NOV 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 offthe-shelf (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,’’ 

‘‘Panamanian 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, 

Panamanian 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: 

lllllllllllllllllllll

(Line Item Number) 

lllllllllllllllllllll

(Country of Origin) 

(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, 

Panamanian end products, or Peruvian 

end products: 

lllllllllllllllllllll

(Line Item Number) lllllllllllllllllllll

(Country of Origin) 

■ 7. Section 252.225–7036 is amended 

by 

■ a. Removing the clause date ‘‘(JUN 

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

place; 

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

‘‘Free Trade Agreement country,’’ 

adding in alphabetical order the country 

of ‘‘Panama,’’; 

■ c. In paragraph (a), adding in 

alphabetical order a definition for 

‘‘Panamanian end product’’; and 

■ d. Revising paragraph (c) and 

ALTERNATE II, IV, and V. 

The additions and revisions read as 

follows: 

252.225–7036 Buy American—Free Trade 

Agreements—Balance of Payments 

Program. 

* * * * * 

(a) * * * 

‘‘Panamanian end product’’ means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; 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 Panama 

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 


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Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Rules and Regulations 68703 

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, 

Panamanian end products, or Peruvian 

end products, or other foreign end 

products in the Buy American—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, a 

Panamanian 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, a Panamanian end 

product, or a Peruvian end product, or, 

at the Contractor’s option, a domestic 

end product. 

* * * * * 

ALTERNATE II (NOV 2012) 

As prescribed in 225.1101(11)(i)(A), 

add the following new definitions to 

paragraph (a) and substitute the 

following paragraph (c) for paragraph (c) 

of the basic clause: 

(a) ‘‘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, Moroccan end products, 

Panamanian end products, or Peruvian 

end products, or other foreign end 

products in the Buy American—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 

Moroccan end product, a Panamanian 

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 Moroccan 

end product, a Panamanian end 

product, or a Peruvian end product or, 

at the Contractor’s option, a domestic 

end product. 

* * * * * 

ALTERNATE IV (NOV 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, Panamanian 

end products, or Peruvian end products, 

or other foreign end products in the Buy 

American—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, a 

Panamanian 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, a 

Panamanian end product, or a Peruvian 

end product, or, at the Contractor’s 

option, a domestic end product. 

ALTERNATE V (NOV 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. 


emcdonald on DSK7TPTVN1PROD with RULES
68704 Federal Register / Vol. 77, No. 222 / Friday, November 16, 2012 / Rules and Regulations 

(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, Panamanian 

end products, or Peruvian end products, 

or other foreign end products in the Buy 

American—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, a Panamanian 

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, a 

Panamanian end product, or a Peruvian 

end product or, at the Contractor’s 

option, a domestic end product. 

■ 8. Section 252.225–7045 is amended 

by— 

■ a. Removing the clause date ‘‘(MAY 

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

place; and 

■ b. Revising paragraph (a)(2) of the 

definition for ‘‘designated country’’ to 

read as follows: 

252.225–7045 Balance of Payments 

Program—Construction Material Under 

Trade Agreements. 

* * * * * 

(a) * * * 

‘‘Designated country’’ means— 

* * * * * 

(2) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, 

Colombia, Costa Rica, Dominican 

Republic, El Salvador, Guatemala, 

Honduras, Korea (Republic of), Mexico, 

Morocco, Nicaragua, Panama, Peru, or 

Singapore); 

* * * * * 

[FR Doc. 2012–27749 Filed 11–15–12; 8:45 am] 

BILLING CODE 5001–06–P 


emcdonald on DSK7TPTVN1PROD with RULES