[Federal Register Volume 74, Number 144 (Wednesday, July 29, 2009)]
[Rules and Regulations]
[Pages 37650-37651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17950]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

RIN 0750-AG31


Defense Federal Acquisition Regulation Supplement; Trade 
Agreements--Costa Rica and Peru (DFARS Case 2008-D046)

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

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement the Dominican 
Republic-Central America-United States Free Trade Agreement with 
respect to Costa Rica, and the United States-Peru Trade Promotion 
Agreement. The trade agreements waive the applicability of the Buy 
American Act for some foreign supplies and construction materials and 
specify procurement procedures designed to ensure fairness.

DATES: Effective date: July 29, 2009.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before September 28, 2009, to 
be considered in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2008-D046, 
using any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    [cir] E-mail: <a href="/cdn-cgi/l/email-protection#b2d6d4d3c0c1f2ddc1d69cdfdbde"><span class="__cf_email__" data-cfemail="badedcdbc8c9fad5c9de94d7d3d6">[email protected]</span></a>. Include DFARS Case 2008-D046 in the 
subject line of the message.
    [cir] Fax: 703-602-7887.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Amy 
Williams, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
    [cir] Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION

A. Background

    This interim rule amends trade agreement provisions and clauses in 
DFARS Part 252 to implement the Dominican Republic-Central America-
United States Free Trade Agreement with respect to Costa Rica, and the 
United States-Peru Trade Promotion Agreement. Congress approved these 
trade agreements in the Dominican Republic-Central America-United 
States Free Trade Agreement Implementation Act (Pub. L. 109-53) and the 
United States-Peru Trade Promotion Agreement Implementation Act (Pub. 
L. 110-138) (19 U.S.C. 3805 note). Presidential proclamations were 
published in the Federal Register on December 30, 2008, with regard to 
Costa Rica (73 FR 79585) and on January 22, 2009, with regard to Peru 
(74 FR 4105). The corresponding determinations by the Office of the 
United States Trade Representative were published in the Federal 
Register on January 6, 2009 (74 FR 472), and

[[Page 37651]]

January 23, 2009 (74 FR 4264), respectively. The trade agreements waive 
the applicability of the Buy American Act for DoD acquisition of some 
foreign supplies and construction materials from Costa Rica and Peru 
and specify procurement procedures designed to ensure fairness.
    In addition, this rule amends DFARS 225.003 to exclude Oman from 
the definition of ``Free Trade Agreement country'' for purposes of DoD 
acquisitions. Oman was added to the Federal Acquisition Regulation 
definition of ``Free Trade Agreement country'' to implement the United 
States-Oman Free Trade Agreement. However, the government procurement 
obligations in the United States-Oman Free Trade Agreement do not apply 
to DoD.
    For administrative purposes only, the corresponding amendments to 
DFARS 252.212-7001, to update the dates of listed clauses affected by 
this rule, are shown with the amendments to DFARS Case 2008-D003 
published elsewhere in this edition of the Federal Register.
    This rule was subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. 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 
opens up DoD procurement to the products of Costa Rica and Peru, DoD 
does not believe there will be a significant economic impact on U.S. 
small businesses. DoD applies the trade agreements to only those non-
defense items listed at DFARS 225.401-70, and acquisitions that are set 
aside for small businesses are exempt from application of the trade 
agreements. Therefore, DoD has not performed an initial regulatory 
flexibility analysis. DoD invites comments from small businesses and 
other interested parties. DoD also will consider comments from small 
entities concerning the affected DFARS subparts in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 2008-D046.

C. Paperwork Reduction Act

    This interim rule affects the certification and information 
collection requirements in the provisions at DFARS 252.225-7020 and 
252.225-7035, currently approved under Office of Management and Budget 
Control Number 0704-0229. The impact, however, is negligible.

D. 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 publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements the Dominican Republic-Central America-
United States Free Trade Agreement with respect to Costa Rica and the 
United States-Peru Trade Promotion Agreement, as approved by Congress 
in Public Laws 109-53 and 110-138. The trade agreement with Costa Rica 
took effect on January 1, 2009, and the trade agreement with Peru took 
effect on February 1, 2009. Comments received in response to this 
interim rule will be considered in the formation of the final rule.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

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

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

PART 225--FOREIGN ACQUISITION

0
2. Section 225.003 is amended as follows:
0
a. By redesignating paragraphs (7) through (12) as paragraphs (8) 
through (13) respectively; and
0
b. By adding a new paragraph (7) to read as follows:


225.003  Definitions.

* * * * *
    (7) Free Trade Agreement country does not include Oman.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Section 252.225-7021 is amended as follows:
0
a. By revising the clause date and paragraph (a)(3)(ii); and
0
b. In paragraph (a)(3)(iv) by removing ``Costa Rica,''. The revised 
text reads as follows:


252.225-7021  Trade Agreements.

* * * * *

TRADE AGREEMENTS (JUL 2009)

    (a) * * *
    (3) * * *
    (ii) A Free Trade Agreement country (Australia, Bahrain, Canada, 
Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Mexico, Morocco, Nicaragua, Peru, or Singapore);
* * * * *

0
4. Section 252.225-7036 is amended by revising the clause date and 
paragraph (a)(7) to read as follows:


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

* * * * *

BUY AMERICAN ACT--FREE TRADE AGREEMENTS--BALANCE OF PAYMENTS PROGRAM 
(JUL 2009)

    (a) * * *
    (7) Free Trade Agreement country means Australia, Bahrain, 
Canada, Chile, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Mexico, Morocco, Nicaragua, Peru, or Singapore;
* * * * *

0
5. Section 252.225-7045 is amended as follows:
0
a. By revising the clause date;
0
b. In paragraph (a), in the definition of ``Designated country'', by 
revising paragraph (2); and
0
c. In paragraph (a), in the definition of ``Designated country'', 
paragraph (4), by removing ``Costa Rica,''.
    The revised text reads as follows:


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

* * * * *

BALANCE OF PAYMENTS PROGRAM--CONSTRUCTION MATERIAL UNDER TRADE 
AGREEMENTS (JUL 2009)

    (a) * * *
    Designated country means--
* * * * *
    (2) A Free Trade Agreement country (Australia, Bahrain, Canada, 
Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Mexico, Morocco, Nicaragua, Peru, or Singapore);
* * * * *

[FR Doc. E9-17950 Filed 7-28-09; 8:45 am]
BILLING CODE 5001-08-P


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