52.225-7 Waiver of Buy American Statute for Civil Aircraft and Related Articles
Source: FAR 52.225-7 on acquisition.gov
The Buy American statute is waived for civil aircraft and related articles from specified countries, but strict origin and documentation requirements apply.
Overview
FAR 52.225-7 provides a waiver to the Buy American statute for civil aircraft and related articles when these items are sourced from countries that are parties to the Agreement on Trade in Civil Aircraft. This provision defines what constitutes "civil aircraft and related articles" and outlines the conditions under which the waiver applies, including a list of eligible countries. It also specifies how to determine if an article qualifies as a product of an eligible country and notes that the waiver can be modified or withdrawn by the U.S. Trade Representative.
Key Rules
- Definition of Civil Aircraft and Related Articles
- Includes all non-military aircraft, engines, parts, components, subassemblies, and ground flight simulators for such aircraft.
- Waiver Applicability
- The Buy American statute is waived for acquisitions from countries listed as parties to the Agreement on Trade in Civil Aircraft.
- Country of Origin Determination
- An article qualifies if it is wholly produced in an eligible country or substantially transformed there into a new and different article.
- Waiver Modification
- The U.S. Trade Representative may modify or withdraw the waiver at any time.
Responsibilities
- Contracting Officers: Must ensure the waiver is applied when procuring civil aircraft and related articles from eligible countries and verify country of origin.
- Contractors: Must certify and provide documentation that products meet the definition and origin requirements.
- Agencies: Must monitor compliance and stay updated on any changes to the waiver status.
Practical Implications
- This provision allows for broader sourcing options for civil aircraft and related articles, promoting international competition and compliance with trade agreements.
- Contractors must be diligent in tracking the origin of their products and maintaining documentation to support eligibility.
- Failure to comply with origin requirements or changes in waiver status could result in disqualification or contract issues.
As prescribed in 25.1101(d), insert the following provision:
Waiver of Buy American Statute for Civil Aircraft and Related Articles (Feb 2016)
(a) Definition. "Civil aircraft and related articles," as used in this provision, means-
(1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard;
(2) The engines (and parts and components for incorporation into the engines) of these aircraft;
(3) Any other parts, components, and subassemblies for incorporation into the aircraft; and
(4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft, and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act.
(b) The U.S. Trade Representative has waived the Buy American statute for acquisitions of civil aircraft and related articles from countries that are parties to the Agreement on Trade in Civil Aircraft. Those countries are Albania, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Macao China, Malta, Montenegro, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan (Chinese Taipei), and the United Kingdom.
(c) For the purpose of this waiver, an article is a product of a country only if-
(1) It is wholly the growth, product, or manufacture of that country; or
(2) In the case of an article that consists in whole or in part of materials from another country, it has been substantially transformed 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.
(d) The waiver is subject to modification or withdrawal by the U.S. Trade Representative.
(End of provision)