[Federal Register Volume 78, Number 60 (Thursday, March 28, 2013)]
[Rules and Regulations]
[Page 18876]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07131]



Defense Acquisition Regulations System

48 CFR Parts 225 and 252

RIN 0750-AH69

Defense Federal Acquisition Regulation Supplement: United States-
Korea Free Trade Agreement (DFARS Case 2012-D025)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD has adopted as final, without change, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement the United States-Korea Free Trade Agreement. The Republic 
of Korea is already party to the World Trade Organization Government 
Procurement Agreement.

DATES: Effective date: March 28, 2013.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone: 571-372-


I. Background

    DoD published an interim rule in the Federal Register at 77 FR 
30356 on May 22, 2012, to implement the United States-Korea Free Trade 
Agreement (see the United States-Korea Free Trade Agreement 
Implementation Act (Pub. L. 112-41) (19 U.S.C. 3805 note)). There were 
no public comments submitted in response to the interim rule.

II. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a significant regulatory action and, therefore, was subject to 
review under section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

III. Regulatory Flexibility Act

    DoD certifies that this 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. Korea is already 
a designated country under the World Trade Organization (WTO) Agreement 
on Government Procurement (GPA). Although the rule now opens up 
Government procurement to the goods and services of Korea at or above 
the threshold of $100,000, DoD does not anticipate any significant 
economic impact on U.S. small businesses. DoD only applies the trade 
agreements to the non-defense items listed at DFARS 225.401-70, and 
acquisitions that are set aside or provide other forms of preference 
for small businesses are exempt. FAR 19.502-2 states that acquisitions 
that do not exceed $150,000 (except as described in paragraph (1) of 
the definition of ``simplified acquisition threshold'' at FAR 2.101) 
are automatically reserved exclusively for small business concerns, 
unless the contracting officer determines that there is not a 
reasonable expectation of obtaining offers from two or more responsible 
small business concerns.

IV. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in the provision at DFARS 252.225-7035, currently approved 
under OMB Control Number 0704-0229, titled Defense Federal Acquisition 
Regulation Supplement part 225, Foreign Acquisition, and related 
clauses, in accordance with the Paperwork Reduction Act (44 U.S.C. 
chapter 35). OMB Control Number 0704-0229 assessed the total burden 
related to part 225 at approximately 57,230 hours. The impact of this 
rule, however, is negligible, because it is just a question of under 
which category offered goods from the Republic of Korea would be 
listed. The rule also affects DFARS 252.225-7018, which is a variant of 
the Buy American-trade agreements certifications already approved, 
which was issued as an interim rule under DFARS Case 2011-D046 (76 FR 
78858, December 20, 2011).

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Kortnee Stewart,
Editor, Defense Acquisition Regulations System.

Interim Rule Adopted as Final Without Change

    Accordingly, the interim rule amending 48 CFR parts 225 and 252, 
which was published at 77 FR 30356 on May 22, 2012, is adopted as a 
final rule without change.

[FR Doc. 2013-07131 Filed 3-27-13; 8:45 am]