[Federal Register Volume 70, Number 236 (Friday, December 9, 2005)]
[Rules and Regulations]
[Pages 73152-73153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23722]


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DEPARTMENT OF DEFENSE

48 CFR Parts 225 and 252

[DFARS Case 2004-D013]


Defense Federal Acquisition Regulation Supplement; Free Trade 
Agreements--Australia and Morocco

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has adopted as final, with changes, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement new Free Trade Agreements with Australia and Morocco. The 
Free Trade Agreements were scheduled to become effective on or after 
January 1, 2005. However, the Morocco Free Trade Agreement has not yet 
entered into force and is therefore removed from this final rule.

DATES: Effective Date: December 9, 2005.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations System, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328; 
facsimile (703) 602-0350. Please cite DFARS Case 2004-D013.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD published an interim rule at 70 FR 2361 on January 13, 2005, to 
implement new Free Trade Agreements

[[Page 73153]]

with Australia and Morocco, as approved by Congress in the United 
States-Australia Free Trade Agreement Implementation Act (Public Law 
108-286) and the United States-Morocco Free Trade Agreement 
Implementation Act (Public Law 108-302). The Free Trade Agreements were 
scheduled to become effective on or after January 1, 2005. However, the 
United States Trade Representative has informed DoD that the Morocco 
Free Trade Agreement has not yet entered into force. Therefore, 
implementation of the Morocco Free Trade Agreement is excluded from 
this final rule. In addition, for consistency with the Federal 
Acquisition Regulation and other changes made by the interim rule, this 
final rule amends the definition of ``eligible product'' at 225.003 to 
include foreign construction material.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not 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. 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 
business concerns are exempt from application of the trade agreements.

C. Paperwork Reduction Act

    This 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.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

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

0
Accordingly, the interim rule amending 48 CFR parts 225 and 252, which 
was published at 70 FR 2361 on January 13, 2005, is adopted as a final 
rule with the following changes:

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

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2. Section 225.003 is amended as follows:
0
a. In paragraph (5)(i)(B), by removing ``or'';
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b. By redesignating paragraph (5)(ii) as paragraph (5)(iii); and
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c. By adding a new paragraph (5)(ii) to read as follows:


225.003  Definitions.

* * * * *
    (5) * * *
    (ii) A foreign construction material that is not subject to 
discriminatory treatment, due to the applicability of a trade agreement 
to a particular acquisition; or
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7001  [Amended]

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3. Section 252.212-7001 is amended as follows:
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a. By revising the clause date to read ``(DEC 2005)''; and
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b. In paragraph (b), in entry ``252.225-7021'', by removing ``(JUN 
2005)'' and adding in its place ``(DEC 2005)''.


252.225-7021  [Amended]

0
4. Section 252.225-7021 is amended as follows:
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a. By revising the clause date to read ``(DEC 2005)''; and
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b. In paragraph (a)(3)(ii), by removing ``Morocco,''.

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5. Section 252.225-7045 is amended as follows:
0
a. By revising the clause date to read ``(DEC 2005)'';
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b. In paragraph (a), in the definition of ``Designated country'', in 
paragraph (2), by removing ``Morocco,''; and
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c. By revising Alternate I to read as follows:


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

* * * * *
    Alternate I (DEC 2005). As prescribed in 225.7503(b), delete the 
definitions of ``designated country'' and ``designated country 
construction material'' from the definitions in paragraph (a) of the 
basic clause, add the following definition of ``Australian or Chilean 
construction material'' to paragraph (a) of the basic clause, and 
substitute the following paragraphs (b) and (c) for paragraphs (b) and 
(c) of the basic clause:
    Australian or Chilean construction material means a construction 
material that--
    (1) Is wholly the growth, product, or manufacture of Australia or 
Chile; or
    (2) In the case of a construction material that consists in whole 
or in part of materials from another country, has been substantially 
transformed in Australia or Chile into a new and different construction 
material distinct from the materials from which it was transformed.
    (b) This clause implements the Balance of Payments Program by 
providing a preference for domestic construction material. In addition, 
the Contracting Officer has determined that the WTO GPA and all Free 
Trade Agreements except NAFTA apply to this acquisition. Therefore, the 
Balance of Payments Program restrictions are waived for WTO GPA 
country, Australian or Chilean, least developed country, or Caribbean 
Basin country construction material.
    (c) The Contractor shall use only domestic, WTO GPA country, 
Australian or Chilean, least developed country, or Caribbean Basin 
country construction material in performing this contract, except for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in Part 2 of the Federal Acquisition Regulation; 
or
    (2) The construction material or components listed by the 
Government as follows:


[Contracting Officer to list applicable excepted materials or indicate 
``none'']

[FR Doc. 05-23722 Filed 12-8-05; 8:45 am]
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