[Federal Register Volume 60, Number 174 (Friday, September 8, 1995)]
[Proposed Rules]
[Pages 46805-46806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22167]



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DEPARTMENT OF DEFENSE

48 CFR Part 225


Defense Federal Acquisition Regulation Supplement; Applicability 
of Trade Agreements

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comment.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to provide 
that the value of an acquisition for purposes of determining the 
applicability of both NAFTA and the Trade Agreements Act is the total 
estimated value of all end products subject to the acts.

DATES: Comment Date: Comments on the proposed rule should be submitted 
in writing to the address below on or before November 7, 1995, to be 
considered in the formulation of the final rule.


[[Page 46806]]

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD 
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-
3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-D022 in 
all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends language in the Defense Federal 
Acquisition Regulation Supplement (DFARS) to change the valuation basis 
for the purpose of meeting thresholds under the North American Free 
Trade Agreement (NAFTA) and the Trade Agreements Act (TAA) to the 
estimated combined value of all line items subject to the acts, rather 
than valuing each line item separately. The purpose of the change is to 
comply with the requirements of NAFTA. For consistency, since all 
acquisitions subject to the Trade Agreements Act are also subject to 
NAFTA, this valuation method is made applicable to the Trade Agreements 
Act threshold as well.

B. Regulatory Flexibility Act

    The proposed rule may 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., because the proposed 
rule changes the valuation method used by contracting officers to 
determine whether a procurement is subject to a trade agreement. The 
proposed rule will not diminish existing preferences for small 
businesses because purchases under small and small disadvantaged 
business preference programs are exempted from the trade agreements. An 
initial Regulatory Flexibility Analysis has been prepared and may be 
obtained from the address stated herein. Comments are invited from 
small businesses and other interested parties. Comments form small 
entities concerning the affected subpart will be considered in 
accordance with Section 610 of the Act. Such comments must be submitted 
separately and cite DFARS Case 95-D022 in correspondence.

C. Paperwork Reduction Act

    This rule does not impose any additional information collection 
requirements 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 225

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 225 is proposed to be amended as follows:

PART 225--FOREIGN ACQUISITION

    1. The authority citation for 48 CFR Part 225 continues to read as 
follows:

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

    2. Section 225.402 is amended by revising paragraph (a) to read as 
follows:


225.402  Policy.

    (a) To estimate the value of the acquisition, use the total 
estimated value of end products subject to trade agreement acts (see 
225.403-70).
    (1) See 225.105 for evaluation of eligible products and U.S. made 
end products.
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[FR Doc. 95-22167 Filed 9-7-95; 8:45 am]
BILLING CODE 5000-04-M