[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2631-2632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1017]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 9

[FAC 90-37; FAR Cases 93-301 and 93-306; Item III]
RIN 9000-AF40


Federal Acquisition Regulation; Made in America Labels/Unfair 
Trade Practices

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

ACTION: Interim rule adopted as final.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to implement sections 201 and 
202 of the Defense Production Act. Section 201 directs that the FAR be 
amended to address the responsibility of contractors who engage in 
unfair trade practices as defined in section 201. Section 202 directs 
that the FAR be amended to address the responsibility of persons that 
intentionally affix a label bearing a fraudulent ``Made in America'' 
inscription to a product sold in or shipped to the United States. This 
regulatory action was not subject to Office of Management and Budget 
review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: January 26, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph De Stefano (202) 501-1758 in 
reference to these combined FAR cases. For general information, contact 
the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 
501-4755. Please cite FAC 90-37, FAR cases 93-301 and 93-306.

SUPPLEMENTARY INFORMATION: 

A. Background

    This final rule implements the requirements of sections 201 and 202 
of the Defense Production Act. Section 201 of the Defense Production 
Act (Public Law 102-558) provides that any contractor who has engaged 
in unfair trade practices may be found to lack such business integrity 
to affect the contractor's responsibility to perform a Government 
contract or subcontract. Section 201 defines ``unfair trade 

[[Page 2632]]
practices'' as the commission by a contractor of any of the following 
acts: (1) A violation of Section 337 of the Tariff Act of 1930 (19 
U.S.C. 1337), as determined by the International Trade Commission (2) A 
violation, as determined by the Secretary of Commerce, of any agreement 
of the group known as the ``Coordination Committee'' for purposes of 
the Export Administration Act of 1979 (50 U.S.C. App. 2401, et seq.) or 
any similar bilateral or multilateral export control agreement, or (3) 
A knowingly false statement regarding a material element of a 
certification concerning the foreign content of an item of supply, as 
determined by the Secretary of the Department or the head of the agency 
to which such certificate was furnished. Section 201 mandates that this 
statement of public contract law policy be implemented by amending FAR 
subpart 9.4, not later than 270 days after the date of enactment of the 
Defense Production Act (October 28, 1992).
    Section 202 of the Defense Production Act (Public Law 102-558) 
provides that any person determined to have intentionally affixed a 
label bearing a ``Made in America'' inscription (or any inscription 
having the same meaning) to a product sold in or shipped to the United 
States, when such product was not made in the United States, may be 
found to lack business integrity or business honesty to such a degree 
as to affect their responsibility to perform a Federal contract or 
subcontract. Section 202 mandates that this statement of policy be 
implemented by amending FAR Subpart 9.4 (Debarment, Suspension, and 
Ineligibility) not later than 270 days (July 28, 1993) after the date 
of enactment of the Defense Production Act (October 28, 1992).
    A combined interim rule was published in the Federal Register at 59 
FR 11368 on March 10, 1994. Two sources submitted public comments. No 
changes were made as a result of those comments.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because the rule only applies to entities who engage in 
unfair trade practices or who intentionally affix fraudulent ``Made in 
America'' labels to products sold in or shipped to the United States.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 9

    Government procurement.

    Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

Interim Rule Adopted as Final Without Change

    Accordingly, the interim rule amending 48 CFR part 9, which was 
published at 59 FR 11371, March 10, 1994, (FAC 90-20, Item II) is 
adopted as a final rule without change.
    The authority citation for 48 CFR part 9 continues to read as 
follows:

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

[FR Doc. 96-1017 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M