[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Notices]
[Pages 7205-7206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3794]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Rural Telephone Bank
Amendment to the Rural Electrification Act's ``Buy American''
Provision
AGENCY: Rural Utilities Service and Rural Telephone Bank, USDA.
ACTION: Notice of Amendment to the Rural Electrification Act's ``Buy
American'' Provision.
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SUMMARY: The Uruguay Round Agreements Act, (108 Stat. 4954, Public Law
103-465, December 8, 1994), amends the ``Buy American'' provision, (7
U.S.C. 903 note) of the Rural Electrification Act of 1936, as amended
(7 U.S.C. 901 et seq.) (the ``RE Act'). In the provision, as amended by
the Uruguay Round Agreements Act, the
[[Page 7206]]
words ``Mexico, or Canada'' are replaced with ``or in any eligible
country''. The United States Trade Representative (USTR) determines
what countries are ``eligible''. As amended, the provision directs the
Secretary of Agriculture, for the Rural Utilities Service (RUS),
(previously the Rural Electrification Administration) to require that,
to the extent practicable and the cost not unreasonable, a borrower use
funds lent under the RE Act only for such unmanufactured articles,
materials, and supplies, as have been mined or produced in the United
States or eligible country and only such manufactured articles,
materials, and supplies as have been manufactured in the United States
or an eligible country substantially all from articles, materials or
supplies mined, produced, or manufactured, as the case may be, in the
United States or an eligible country.
This action is intended to provide borrowers receiving loans made
by the Rural Telephone Bank (RTB) or loans made or guaranteed by RUS,
as well as material and equipment manufacturers and the public, with
information for compliance with the amended RE Act ``Buy American''
provision.
FOR FURTHER INFORMATION CONTACT: For electric program matters: George
Bagnall, Director, Electric Staff Division, RUS, U.S. Department of
Agriculture, STOP 1569, 1400 Independence Ave., SW., Washington, DC
20250-1569. Telephone number (202) 720-1900, fax (202) 720-7491.
For telecommunications program matters: Orren E. Cameron, III,
Director, Telecommunications Standards Division, RUS, U.S. Department
of Agriculture, STOP 1598, 1400 Independence Ave., SW., Washington, DC
20250-1598. Telephone number (202) 720-8663, fax (202) 720-4099.
SUPPLEMENTARY INFORMATION: Section 342(g) of the Uruguay Round
Agreements Act, amended the RE Act ``Buy American'' provision by
replacing the words ``Mexico, or Canada'' with ``or in any eligible
country'' and by authorizing the United States Trade Representative
(USTR) to determine what countries are eligible. The ``Buy American''
provision now reads:
``In making loans pursuant to * * * the Rural Electrification Act
of 1936 * * * the Secretary of Agriculture shall require that, to the
extent practicable and the cost of which is not unreasonable, the
borrower agree to use in connection with the expenditure of such funds
only such unmanufactured articles, materials and supplies, as have been
mined or produced in the United States or in any eligible country, and
only such manufactured articles, materials, and supplies as have been
manufactured in the United States or in any eligible country,
substantially all from articles, materials, or supplies mined,
produced, or manufactured, as the case may be, in the United States or
in any eligible country. For purposes of this section, an `eligible
country' is any country that applies with respect to the United States
an agreement ensuring reciprocal access for United States products and
services and United States suppliers to the markets of that country, as
determined by the United States Trade Representative.''
The RUS ``Buy American'' provision applies to any loan made by the
RTB or made or guaranteed by the RUS. Whether a particular product is
domestic or non-domestic for purposes of the RE Act ``Buy American''
provision depends upon such factors as the country of origin of the
product and its component parts and whether the product is purchased by
an electric borrower or a telecommunications borrower.
The eligibility status of Canada and Mexico has not changed.
Products produced in Canada or Mexico substantially consisting of
components produced in Canada, Mexico, or the United States and
purchased with RTB or RUS electric or telephone loan funds are treated
as United States domestic products.
At this time the USTR has determined that only Canada and Mexico
are eligible countries for purchases made by telecommunications
borrowers. Therefore, products produced in countries other than the
United States, Canada, or Mexico and purchased by RUS
telecommunications borrowers are not treated as domestic products for
purposes of the RE Act ``Buy American'' provision. The amendment makes
no change in the treatment of these purchases unless and until the USTR
determines additional ``eligible countries'' for telecommunications
borrowers.
At this time, the USTR has determined that the following countries
have agreements ensuring reciprocal access regarding products used by
electric borrowers, and are therefore ``eligible countries'' for
purchases made by electric borrowers:
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Israel
Italy
Japan
Korea
Luxembourg
The Netherlands
Norway
Portugal
Singapore
Spain
Sweden
Switzerland
United Kingdom
Products from an eligible country consisting substantially of
components produced in the United States or any eligible country and
purchased by RUS electric borrowers with RUS loan funds will be
considered to be domestic products for purposes of the RE Act ``Buy
American'' provision.
The USTR may at any time declare one or more additional countries
to be ``eligible countries'' for either electric or telecommunications
borrowers. The Chair of Technical Standards Committee ``A'' (Electric)
will be the point of contact for RUS with respect to USTR
determinations of eligible countries. Each RUS borrower is responsible
for assuring that its procurement complies with the requirements of the
RE Act ``Buy American'' provision.
RUS is making technical revisions to its existing forms of loan
contracts and loan contract amendments to conform them to the RE Act
``Buy American'' provision as amended. In addition, RUS will make
similar technical revisions to its standard forms of contracts
providing for the purchase of materials and equipment and for ``furnish
and install'' type construction. Until these forms are revised, the
borrower should make the appropriate changes in its contract forms.
Dated: February 5, 1997.
Wally Beyer,
Administrator, Rural Utilities Service, and Governor, Rural Telephone
Bank.
[FR Doc. 97-3794 Filed 2-14-97; 8:45 am]
BILLING CODE 3410-15-P