[Federal Register Volume 87, Number 39 (Monday, February 28, 2022)]
[Proposed Rules]
[Pages 11002-11009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04009]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 225, and 252

[Docket DARS-2022-0003]
RIN 0750-AL18


Defense Federal Acquisition Regulation Supplement: United States-
Mexico-Canada Agreement (DFARS Case 2020-D032)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement the United States-Mexico-
Canada Agreement Implementation Act.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before May 27, 2022, to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2020-D032, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for ``DFARS Case 2020-D032.'' Select ``Comment'' and follow the 
instructions to submit a comment. Please include ``DFARS Case 2020-
D032'' on any attached documents.
    [cir] Email: <a href="/cdn-cgi/l/email-protection#a9c6dacd87cdcfc8dbdae9c4c8c0c587c4c0c5"><span class="__cf_email__" data-cfemail="89e6faeda7edefe8fbfac9e4e8e0e5a7e4e0e5">[email protected]</span></a>. Include DFARS Case 2020-D032 in 
the subject line of the message.
    Comments received generally will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Ms. Kimberly Bass, telephone 571-372-
6174.

SUPPLEMENTARY INFORMATION:

[[Page 11003]]

I. Background

    DoD is issuing a proposed rule to amend the DFARS to implement the 
United States-Mexico-Canada Agreement Implementation Act (Pub. L. 116-
113). On November 30, 2018, the Governments of the United States, 
Mexico, and Canada (the parties) signed the protocol replacing the 
North American Free Trade Agreement (NAFTA) with the United States-
Mexico-Canada Agreement (USMCA). On December 10, 2019, the parties 
signed the protocol of amendment to the USMCA. On January 29, 2020, the 
President signed into law the United States-Mexico-Canada Agreement 
Implementation Act, through which Congress approved the USMCA. On July 
1, 2020, the USMCA entered into effect.

II. Discussion and Analysis

A. Chapter 13 of the USMCA

    The USMCA supersedes the NAFTA. Chapter 13 (Government Procurement) 
of the USMCA applies only to the United States and Mexico. Therefore, 
Canada is no longer a Free Trade Agreement country, although Canada is 
still a designated country under the World Trade Organization 
Government Procurement Agreement (WTO GPA). Chapter 13 of the USMCA 
sets forth certain obligations between the United States and Mexico 
with respect to government procurement of goods and services, as 
specified in Annex 13-A of the USMCA.
    This proposed rule is required to meet the United States trade 
obligations to Mexico and remove any trade benefits that no longer 
should accrue to Canada. Therefore, all references in the DFARS to 
Canada as a Free Trade Agreement country are revised to delete Canada 
and its associated Free Trade Agreement threshold of $25,000. The new 
minimum Free Trade Agreement threshold is now $92,319. Mexico 
thresholds remain unchanged.

B. Chapter 20 of the USMCA

    Chapter 20 of the USMCA addresses intellectual property rights. The 
requirements of Federal Acquisition Regulation (FAR) 27.204-1, Patented 
technology under the NAFTA, and the associated emergency acquisition 
flexibility at FAR 18.120 are no longer applicable or authorized. FAR 
case 2020-014, United States-Mexico-Canada Agreement, is currently in 
process to address required changes to the FAR to implement the USMCA. 
DoD contracting officers should consult with legal counsel concerning 
questions that may arise with regard to the use of patented technology 
under the USMCA. Any potential impacts with regard to the USMCA to 
DFARS part 218, Emergency Acquisitions, and DFARS part 227, Patents, 
Data, and Copyrights, will be addressed with further rulemaking.

C. Implementation of the USMCA in the DFARS

Part 212
    The proposed rule deletes all references to 19 U.S.C. 3301 note 
associated with the implementation of NAFTA in DFARS 212.301.
Part 225
    The $25,000 Free Trade Agreement threshold for Canada is no longer 
applicable. The proposed rule deletes all references to the $25,000 
threshold in its entirety in the clause prescriptions at DFARS 
225.1101, Acquisition of supplies.
Part 252
    All references to Free Trade Agreement countries are revised to 
delete Canada and remove the $25,000 threshold, replacing it with the 
Free Trade Agreement minimum threshold of $92,319. Contracting officers 
will be required to use the revised provisions and clauses as 
prescribed that reflect the USMCA requirements. Proposed revisions are 
as follows:
    DFARS 252.225-7013, Duty-Free Entry. Revises the definition of 
``eligible product'' to delete the reference to Canadian end products 
or devices.
    DFARS 252.225-7017, Photovoltaic Devices, and DFARS 252.225-7018, 
Photovoltaic Devices--Certificate. Removes the definition of ``Canadian 
photovoltaic device'' as it no longer applies in both the clause and 
provision. Deletes Canada as a Free Trade Agreement country from the 
definition of ``designated country'' and from the definition of ``Free 
Trade Agreement country'' in DFARS 252.225-7017. Conforming changes 
made to remove the associated $25,000 threshold for Canada, replacing 
it with the Free Trade Agreement minimum threshold of $92,319 in both 
the clause and provision.
    DFARS 252.225-7021, Trade Agreements. In the basic clause and in 
alternate II, removes Canada as a Free Trade Agreement country from the 
definition of ``designated country''. Editorial change made to 
redesignate paragraph numbers in paragraph (a) definitions to conform 
to current drafting conventions.
    DFARS 252.225-7035, Buy American--Free Trade Agreements--Balance of 
Payments Program Certificate. In the basic provision and alternates I, 
II, III, IV, and V, removes all references to Canadian end products and 
the ``Canadian end product'' definition in alternates I and III with 
conforming changes.
    DFARS 252.225-7036, Buy American--Free Trade Agreements--Balance of 
Payments Program. In the basic clause and alternates I, II, III, IV, 
and V, removes Canada from the definition of ``Free Trade Agreement 
country'' and removes the definition for ``Canadian end product'' from 
alternates I and II, with conforming changes. Editorial changes made to 
redesignate paragraph numbers in paragraph (a) definitions to conform 
to current drafting conventions.
    DFARS 252.225-7045, Balance of Payments Program--Construction 
Material Under Trade Agreements. In the basic clause and alternates I, 
II, and III, removes references to Canada in the ``designated country'' 
definition as a ``Free Trade Agreement country''; removes ``NAFTA'' and 
replaces it with references to ``USMCA'' in alternates I and III in 
accordance with the implementation of the Balance of Payments Program. 
Editorial changes made to redesignate paragraph numbers in paragraph 
(a) definitions to conform to current drafting conventions.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products Including Commercially 
Available Off-the-Shelf (COTS) Items, and for Commercial Services

    This rule amends the clauses at DFARS 252.225-7013, Duty-Free 
Entry; DFARS 252.225-7017, Photovoltaic Devices; DFARS 252.225-7021, 
Trade Agreements (Basic and Alternate II); DFARS 252.225-7036, Buy 
American--Free Trade Agreements--Balance of Payments Program (Basic and 
Alternates I (with the prescription), II, III (with the prescription), 
IV, V); 252.225-7045, Balance of Payments Program--Construction 
Material Under Trade Agreements (Basic and Alternates I, II, and III); 
and provisions at DFARS 252.225-7018 Photovoltaic Devices--Certificate; 
252.225-7035 Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate (Basic and Alternate I, II, III (with the 
prescription). This rule does not impose any new requirements on 
contracts at or below the simplified acquisition threshold, for 
commercial products including commercially available off-the-shelf 
items, or for commercial services.

[[Page 11004]]

IV. Expected Impact of the Rule

    The rule implements the United States-Mexico-Canada Agreement 
Implementation Act. The USMCA supersedes the NAFTA. Canada is still a 
designated country under the World Trade Organization Government 
Procurement Agreement; however, Canada is no longer a Free Trade 
Agreement country, because chapter 13 (Government Procurement) of the 
USMCA applies only to the United States and Mexico. References to 
Canada as a Free Trade Agreement country in the DFARS are deleted, 
including the $25,000 threshold. Canadian end products will still 
receive nondiscriminatory treatment with respect to the Buy American 
statute but starting at $183,000 rather than $25,000. Impacts are 
anticipated to be negligible, since Canada remains a WTO GPA designated 
country, and a qualifying country, with a threshold of $183,000. The 
Mexico thresholds remain unchanged.

V. 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.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
Under the Congressional Review Act, to the U.S. Senate, the House of 
Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. This rule is not 
anticipated to be a major rule under 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    DoD does not expect this proposed 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. 
Nevertheless, an initial regulatory flexibility analysis has been 
performed consistent with 5 U.S.C. 603 and summarized as follows:
    The proposed rule implements the United States-Mexico-Canada 
Agreement Implementation Act (Pub. L. 116-113). On November 30, 2018, 
the Governments of the United States, Mexico, and Canada (the parties) 
signed the protocol replacing NAFTA with the United States-Mexico-
Canada Agreement (USMCA). On December 10, 2019, the parties signed the 
protocol of amendment to the USMCA. On January 29, 2020, the President 
signed into law the United States-Mexico-Canada Agreement 
Implementation Act, through which Congress approved the USMCA. On July 
1, 2020, the USMCA entered into effect.
    The objective of this rule is to implement the USMCA Implementation 
Act. The proposed rule includes changes in the Defense Federal 
Acquisition Regulation Supplement (DFARS) to conform to chapter 13 of 
the USMCA, which sets forth certain obligations between the United 
States and Mexico with respect to government procurement of goods and 
services, as specified in Annex 13-A of the USMCA. Chapter 13 of the 
USMCA applies only between Mexico and the United States and does not 
cover Canada.
    Although Canada is still a designated country under the World Trade 
Organization Government Procurement Agreement (WTO GPA), Canada is no 
longer a Free Trade Agreement country, because chapter 13 of the USMCA 
applies only to the United States and Mexico. Therefore, references to 
Canada as a Free Trade Agreement country in the DFARS are deleted, 
including the $25,000 threshold. Canadian end products will still 
receive nondiscriminatory treatment with respect to the Buy American 
statute but starting at $183,000 rather than the threshold of $25,000. 
Mexico thresholds remain unchanged.
    The proposed rule removes all references to the NAFTA, replacing 
them with the new USMCA language, including statutory references. All 
references to Canadian end products or Canadian photovoltaic devices 
also are removed.
    The legal basis for the rule is Public Law 116-113.
    This rule is not expected to have a significant economic impact on 
small entities. Although the rule removes Canada as a Free Trade 
Agreement designated country and deletes the associated $25,000 
threshold, replacing it with the free trade agreement minimum threshold 
of $92,319, Canada remains a WTO GPA designated country, and a 
qualifying country, with a threshold of $183,000. The Mexico thresholds 
remain unchanged. Contracting officers will be required to use the 
revised provisions and clauses as prescribed that reflect the USMCA 
requirements.
    Based on fiscal year 2019 data from the Federal Procurement Data 
System, 22,050 unique small entities were awarded DoD contracts. 
Impacts to small businesses are anticipated to be negligible, since 
Canada remains a WTO GPA designated country, and a qualifying country, 
with a threshold of $183,000, and the Mexico thresholds remain 
unchanged.
    This proposed rule does not include any new reporting, 
recordkeeping, or other compliance requirements for small entities. The 
rule does not impose additional information collection requirements to 
the paperwork burden previously approved by the Office of Management 
and Budget (OMB) under the Paperwork Reduction Act (44 U.S.C. chapter 
35), Control Number 0704-0229, DFARS part 225, Foreign Acquisition, and 
Related Clauses at 252.225; DD Form 2139.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known significant alternative approaches to the rule 
that would meet the requirements of the USMCA Implementation Act.
    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 this 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 2020-D032), in 
correspondence.

VIII. Paperwork Reduction Act

    The rule affects information collection requirements in the 
provisions at 252.225-7018, Photovoltaic Devices--Certificate, and 
252.225-7035, Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate; and the clauses at 252.225-7013, Duty-Free Entry, 
and 252.225-7021, Alternate II, Trade Agreements, currently approved 
under OMB Control Number 0704-0229 in accordance with the Paperwork 
Reduction Act (44 U.S.C. chapter 35). The impact, however, is 
negligible because the rule merely removes Canada as a Free Trade 
Agreement country.

[[Page 11005]]

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

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 225, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for 48 CFR parts 212, 225, and 252 continues 
to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.301   [Amended]

0
2. Amend section 212.301 in paragraphs (f)(ix)(M) introductory text, 
(f)(ix)(N) introductory text, (f)(ix)(V) introductory text, and 
(f)(ix)(W) introductory text by removing ``3301 note'' and adding 
``4501-4732'' wherever it appears.

PART 225--FOREIGN ACQUISITION


225.1101   [AMENDED]

0
3. Amend section 225.1101 in paragraphs (10)(i) introductory text and 
(10)(i)(B) and (D) by removing the term ``equals or exceeds $25,000, 
but''.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 252.225-7013 by--
0
a. Revising the section heading and date of the clause; and
0
b. In paragraph (a), revising the definition of ``Eligible product''.
    The revisions read as follows:


252.225-7013   Duty-Free Entry.

* * * * *

Duty-Free Entry (Date)

    (a) * * *
    Eligible product means--
    (1) Designated country end product, as defined in the Trade 
Agreements (either basic or alternate) clause of this contract;
    (2) 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, as defined in the Buy American--
Free Trade Agreements--Balance of Payments Program (either basic or 
alternate II) clause of this contract; or
    (3) Free Trade Agreement country end product other than a 
Bahrainian end product, Korean end product, Moroccan end product, 
Panamanian end product, or Peruvian end product, as defined in the Buy 
American--Free Trade Agreements--Balance of Payments Program (either 
alternate IV or alternate V) clause of this contract.
* * * * *
0
5. Amend section 252.225-7017 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a)--
0
i. Removing the definition of ``Canadian photovoltaic device''; and
0
ii. In the definitions of ``Designated country'', paragraph (2), and 
``Free Trade Agreement country'' removing ``Canada,'';
0
c. In paragraph (c)(1), removing ``$25,000'' and adding ``$92,319'' in 
its place;
0
d. Removing paragraph (c)(2); and
0
e. Redesignating paragraphs (c)(3), (4), and (5) as paragraphs (c)(2), 
(3), and (4).
    The revision reads as follows:


252.225-7017   Photovoltaic Devices.

* * * * *

Photovoltaic Devices (Date)

* * * * *


252.225-7018   [Amended]

0
6. Amend section 252.225-7018 by--
0
a. Revising the date of the provision;
0
b. In paragraph (a), removing ``Canadian photovoltaic device,'';
0
c. In paragraph (c), removing ``$25,000'' and adding ``$92,319'' in its 
place;
0
d. In paragraph (d)(2) introductory text, removing ``$25,000'' and 
adding ``$92,319'' in its place; and
0
e. Revising paragraph (d)(3).
    The revisions read as follows:


252.225-7018   Photovoltaic Devices--Certificate.

* * * * *

Photovoltaic Devices--Certificate (Date)

* * * * *
    (d) * * *
    (3) If less than $92,319--
    __(i) The offeror certifies that each photovoltaic device to be 
utilized in performance of the contract is a domestic photovoltaic 
device;
    __(ii) The offeror certifies that each photovoltaic device to be 
utilized in performance of the contract is a qualifying country 
photovoltaic device [Offeror to specify country of origin __]; or
    __(iii) The foreign photovoltaic devices to be utilized in 
performance of the contract 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, i.e. that the 
price of the foreign photovoltaic device plus 50 percent is less than 
the price of a comparable domestic photovoltaic device.]
* * * * *
0
7. Amend section 252.225-7021 by--
0
a. Revising the section heading and date of the clause;
0
b. In paragraph (a)--
0
i. In the definition of ``Caribbean Basin Country end product'', 
redesignating paragraphs (i) introductory text, (i)(A) and (B), (ii) 
introductory text, and (ii)(A), (B), and (C) as paragraphs (1) 
introductory text, (1)(i) and (ii), (2) introductory text, and (2)(i), 
(ii), and (iii), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
iii. In the definition of ``Designated country'', redesignating 
paragraphs (i) through (iv) as paragraphs (1) through (4), 
respectively; and in the newly redesignated paragraph (2), removing 
``Canada,'';
0
iv. In the definitions of ``Free Trade Agreement country end product'' 
and ``Least developed country end product'', redesignating paragraphs 
(i) and (ii) as paragraphs (1) and (2), respectively;
0
v. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and
0
vi. In the definitions of ``U.S.-made end product'' and ``WTO GPA 
country end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively;
0
c. In paragraph (e) introductory text, removing ``on the Internet''; 
and
0
d. In Alternate II--
0
i. Revising the date of the clause;
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin Country end product'', 
redesignating paragraphs (i) introductory text, (i)(A) and (B), (ii) 
introductory text, and (ii)(A), (B), and (C) as paragraphs (1) 
introductory text, (1)(i) and (ii), (2) introductory text, and (2)(i), 
(ii), and (iii), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;

[[Page 11006]]

0
C. In the definition of ``Designated country'', redesignating 
paragraphs (i) through (iv) as paragraphs (1) through (4), 
respectively; and in the newly redesignated paragraph (2), removing 
``Canada,'';
0
D. In the definitions of ``Free Trade Agreement country end product'' 
and ``Least developed country end product'', redesignating paragraphs 
(i) and (ii) as paragraphs (1) and (2), respectively;
0
E. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and
0
F. In the definitions of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', ``U.S.-made end product'', and ``WTO GPA 
country end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively; and
0
iii. In paragraph (f) introductory text, removing ``on the Internet''.
    The revisions read as follows:


252.225-7021   Trade Agreements.

* * * * *

Trade Agreements--Basic (Date)

* * * * *

Trade Agreements-Alternate II (Date)

* * * * *
0
8. Amend section 252.225-7035 by--
0
a. Revising the provision date;
0
b. In paragraph (b)(1), removing ``Part'' and adding ``part'' in its 
place;
0
c. In paragraph (c)(2)(i), removing ``or Canadian'';
0
d. In Alternate I--
0
i. Revising the introductory text and the provision date;
0
ii. In paragraph (a)--
0
A. Removing ``Canadian end product,'';
0
B. Removing ``commercially available off-the-shelf (COTS) item'' and 
adding ``Commercially available off-the-shelf (COTS) item'' in its 
place;
0
iii. In paragraph (b)(2), removing ``or Canadian end products''; and
0
iv. Revising paragraph (c)(2);
0
e. In Alternate II--
0
i. Revising the provision date; and
0
ii. In paragraph (c)(2)(i), removing ``or Canadian'';
0
f. In Alternate III--
0
i. Revising the provision date;
0
ii. In paragraph (a)--
0
A. Removing ``Canadian end product,'';
0
B. Removing ``commercially available off-the-shelf (COTS) item'' and 
adding ``Commercially available off-the-shelf (COTS) item'' in its 
place;
0
iii. In paragraph (b)(2), removing ``or Canadian end products''; and
0
iv. In paragraph (c)(2)(i), removing ``(except Canadian)'';
0
g. In Alternate IV--
0
i. Revising the provision date; and
0
ii. In paragraph (c)(2)(i), removing ``or Canadian''; and
0
h. In Alternate V--
0
i. Revising the provision date; and
0
ii. In paragraph (c)(2)(i), removing ``or Canadian''.
    The revisions read as follows:


252.225-7035   Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate.

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Basic (Date)

* * * * *
    Alternate I. As prescribed in 225.1101(9) and (9)(ii), use the 
following provision, which does not use 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; does not use ``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; and does not use ``Australian or'' in paragraph (c)(2)(i):

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate I (Date)

* * * * *
    (c) * * *
    (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 end products:

(Line Item Number) (Country of Origin)

    (ii) 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'':

(Line Item Number) (Country of Origin (If known))
* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate II (Date)

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate III (Date)

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate IV (Date)

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate V (Date)

* * * * *
0
9. Amend section 252.225-7036 by--
0
a. Revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
iii. In the definition of ``Domestic end product'', redesignating 
paragraphs (i), (ii) introductory text, (ii)(A) introductory text, 
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text, 
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
iv. In the definition of ``Free Trade Agreement country'', removing 
``Canada,'';
0
v. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively; and
0
vi. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively;
0
c. In Alternate I--
0
i. Revising the introductory text and the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;

[[Page 11007]]

0
B. Removing the definition of ``Canadian end product'';
0
C. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
D. In the definition of ``Domestic end product'', redesignating 
paragraphs (i), (ii) introductory text, (ii)(A) introductory text, 
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text, 
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
E. In the definition of ``Free Trade Agreement country'', removing 
``Canada,'';
0
F. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively; and
0
G. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and iii. In paragraph (c), removing 
``, Canadian'', ``or a Canadian end product'', and ``, a Canadian end 
product,'';
0
d. In Alternate II--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Domestic end product'', redesignating 
paragraphs (i), (ii) introductory text, (ii)(A) introductory text, 
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text, 
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
D. In the definition of ``Free Trade Agreement country'', removing 
``Canada,'';
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'' redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively;
0
F. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and
0
G. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively;
0
e. In Alternate III--
0
i. Revising the introductory text and the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. Removing the definition of ``Canadian end product'';
0
C. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
D. In the definition of ``Domestic end product'', redesignating 
paragraphs (i), (ii) introductory text, (ii)(A) introductory text, 
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text, 
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
E. In the definition of ``Free Trade Agreement country'', removing 
``Canada,'';
0
F. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively;
0
G. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively; and
0
iii. Revising paragraph (c);
0
f. In Alternate IV--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Domestic end product'', redesignating 
paragraphs (i), (ii) introductory text, (ii)(A) introductory text, 
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text, 
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
D. In the definition of ``Free Trade Agreement country'', removing 
``Canada,'';
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Korean end product'', ``Moroccan end product'', ``Panamanian end 
product'', and ``Peruvian end product'', redesignating paragraphs (i) 
and (ii) as paragraphs (1) and (2), respectively; and
0
F. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and
0
g. In Alternate V--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Domestic end product'', redesignating 
paragraphs (i), (ii) introductory text, (ii)(A) introductory text, 
(ii)(A)(1) and (2), and (ii)(B) as paragraphs (1), (2) introductory 
text, (2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii), 
respectively;
0
D. In the definition of ``Free Trade Agreement country'', removing 
``Canada,'';
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Korean end product'', ``Moroccan end product'', ``Panamanian end 
product'', and ``Peruvian end product'', redesignating paragraphs (i) 
and (ii) as paragraphs (1) and (2), respectively;
0
F. In the definition of ``Qualifying country end product'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) 
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs 
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B), 
and (C), and (2)(ii), respectively; and

[[Page 11008]]

0
G. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively.
    The revisions read as follows:


252.225-7036   Buy American--Free Trade Agreements--Balance of Payments 
Program.

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program--Basic 
(Date)

* * * * *
    Alternate I. As prescribed in 225.1101(10)(i) and (10)(i)(B), use 
the following clause, which uses a different paragraph (c) than the 
basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate I (Date)

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II (Date)

* * * * *
    Alternate III. As prescribed in 225.1101(10)(i) and (10)(i)(D), use 
the following clause, which adds South Caucasus/Central and South Asian 
(SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA) 
state end product to paragraph (a) and uses a different paragraph (c) 
than the basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate III (Date)

* * * * *
    (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, or other foreign end 
products in the Buy American--Free Trade Agreements--Balance of 
Payments Program Certificate--Alternate III provision of the 
solicitation. If the Contractor certified in its offer that it will 
deliver a qualifying country end product or SC/CASA state end products, 
the Contractor shall deliver a qualifying country end product, an SC/
CASA state end product, or, at the Contractor's option, a domestic end 
product.
* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IV (Date)

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate V (Date)

* * * * *
0
10. Amend section 252.225-7045 by--
0
a. Revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Caribbean Basin country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
iii. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
iv. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively; and in the newly redesignated paragraph (2), 
removing ``Canada,'';
0
iv. In the definition of ``Domestic construction material'', 
redesignating paragraphs (i), (ii) introductory text, and (ii)(A) and 
(B) as paragraphs (1), (2) introductory text, and (2)(i) and (ii), 
respectively; and
0
v. In the definitions of ``Free Trade Agreement country construction 
material'', ``Least developed country construction material'', and 
``WTO GPA country construction material'', redesignating paragraphs (i) 
and (ii) as paragraphs (1) and (2), respectively;
0
c. In Alternate I--
0
i. Revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian or Mexican construction 
material'' and ``Caribbean Basin country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively; and in the newly redesignated paragraph (2), 
removing ``Canada,'';
0
E. In the definition of ``Domestic construction material'', 
redesignating paragraphs (i), (ii) introductory text, and (ii)(A) and 
(B) as paragraphs (1), (2) introductory text, and (2)(i) and (ii), 
respectively; and
0
F. In the definitions of ``Free Trade Agreement country construction 
material'', ``Least developed country construction material'', and 
``WTO GPA country construction material'', redesignating paragraphs (i) 
and (ii) as paragraphs (1) and (2), respectively; and
0
iii. In paragraph (b), removing ``NAFTA'' and adding ``United States-
Mexico-Canada Agreement'' in its place;
0
d. In Alternate II--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively; and in the newly redesignated paragraph (2), 
removing ``Canada,'';
0
E. In the definition of ``Domestic construction material'', 
redesignating paragraphs (i), (ii) introductory text, and (ii)(A) and 
(B) as paragraphs (1), (2) introductory text, and (2)(i) and (ii), 
respectively; and
0
F. In the definitions of ``Free Trade Agreement country construction 
material'', ``Least developed country construction material'', ``SC/
CASA state construction material'', and ``WTO GPA country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively; and
0
e. In Alternate III--
0
i. Revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (c), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;

[[Page 11009]]

0
D. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively; and in the newly redesignated paragraph (2), 
removing ``Canada,'';
0
E. In the definition of ``Domestic construction material'', 
redesignating paragraphs (i), (ii) introductory text, (ii)(A) and (B) 
as paragraphs (1), (2) introductory text, and (2)(i) and (ii), 
respectively; and
0
F. In the definitions of ``Free Trade Agreement country construction 
material'', ``Least developed country construction material'', ``SC/
CASA state construction material'', and ``WTO GPA country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively; and
0
iii. In paragraph (b) removing ``NAFTA'' and adding ``United States-
Mexico-Canada Agreement'' in its place.
    The revisions read as follows:


252.225-7045   Balance of Payments Program--Construction Material Under 
Trade Agreements.

* * * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Basic (Date)

* * * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate I (Date)

* * * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate II (Date)

* * * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate III (Date)

* * * * *
[FR Doc. 2022-04009 Filed 2-25-22; 8:45 am]
BILLING CODE 5001-06-P


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