[Federal Register Volume 60, Number 198 (Friday, October 13, 1995)]
[Proposed Rules]
[Pages 53319-53320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25345]



-----------------------------------------------------------------------


DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252


Defense Federal Acquisition Regulation Supplement; Uruguay Round 
(1996 Agreement)

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to implement 
the renegotiated General Agreement on Tariffs and Trade (GATT) 
Government Procurement Agreement (1996 Code) (Uruguay Round), which 
becomes effective January 1, 1996. This agreement is implemented in 
statute by the Uruguay Round Agreement Act, Pub. L. 103-465, which 
amends the Trade Agreements Act of 1979.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before December 12, 1995, to be 
considered in the formulation of the final rule.


[[Page 53320]]

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, D.C. 20301-
3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-D306 in 
all correspondence related to this issue.

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

SUPPLEMENTARY INFORMATION: 

A. Background

    The proposed rule amends DFARS 225.402 and 252.225-7007, permitting 
purchase of nondesignated country end products, if sufficient U.S. 
made, qualifying country, or eligible products are not available. This 
implements Section 343 of Pub. L. 103-465, which amends Section 302(a) 
of the Trade Agreements Act of 1979 (19 U.S.C. 2512(a)).

B. Regulatory Flexibility Act

    The proposed rule is not expected 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., because it 
permits purchase of nondesignated country end products only if (1) 
sufficient U.S. made, qualifying country, or eligible products are not 
available, or (2) a national interest waiver is granted. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments from small entities concerning the affected DFARS subpart will 
be considered in accordance with Section 610 of the Act. Such comments 
must be submitted separately and cite DFARS Case 95-D306 in 
correspondence.

C. Paperwork Reduction Act

    The proposed rule does not impose any reporting or recordkeeping 
requirements which require OMB approval under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Parts 225 and 252

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

    Therefore, it is proposed that 48 CFR Parts 225 and 252 be amended 
as follows:
    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

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


225.402  Policy.

    (a) * * *
    (c)(i) Except as provided in paragraphs (c) (ii) and (iii) of this 
section, do not purchase nondesignated country end products subject to 
the Trade Agreements Act unless they are NAFTA, Caribbean Basin, or 
qualifying country end products (see 225.872-1).
    (ii) The prohibition in paragraph (c)(i) of this section does not 
apply when the contracting officer determines that offers of U.S. made, 
qualifying country, or eligible products from responsive, responsible 
offerors are either--
    (A) Not received; or
    (B) Insufficient to fill the Government's requirements. In these 
cases, accept all responsive, responsible offers of U.S. made, 
qualifying country, and eligible products before accepting any other 
offers.
    (iii) National interest waivers under Section 302(b)(2) of the 
Trade Agreements Act are approved on a case-by-case basis. Except as 
delegated in paragraphs (c)(iii) (A) and (B) of this section, a request 
for a national interest waiver shall include supporting rationale and 
be submitted under department/agency procedures to the Director of 
Defense Procurement.
    (A) The head of the contracting activity may approve a national 
interest waiver for a purchase by an overseas purchasing activity of 
products critical to the support of U.S. forces stationed abroad. The 
waiver must be supported by a written statement from the requiring 
activity stating that the requirement is critical for the support of 
U.S. forces stationed abroad.
    (B) The Commander, Defense Fuel Supply Center, may approve national 
interest waivers for purchases of fuel for use by U.S. forces overseas.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 252.225-7007 is amended by revising paragraph (c)(1) to 
read as follows:


252.225-7007  Trade Agreements.

* * * * *
    (c) * * *
    (1) Offerors may not supply a nondesignated country end product 
unless--
    (i) It is a qualifying country end product, a Caribbean Basin 
country end product, or a NAFTA country end product;
    (ii) The Contracting Officer has determined that offers of U.S. 
made end products or qualifying, designated, NAFTA, or Caribbean Basin 
country end products from responsive, responsible offerors are either 
not received or are insufficient to fill the Government's requirements; 
or
    (iii) A national interest waiver has been granted under Section 302 
of the Trade Agreements Act of 1979 (see (FAR 25.402(c)).
* * * * *
[FR Doc. 95-25345 Filed 10-12-95; 8:45 am]
BILLING CODE 5000-04-M