[Federal Register Volume 78, Number 211 (Thursday, October 31, 2013)]
[Rules and Regulations]
[Pages 65221-65222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25726]



Defense Acquisition Regulations System

48 CFR Part 252

RIN 0750-AH79

Defense Federal Acquisition Regulation Supplement: New Free Trade 
Agreement--Panama (DFARS Case 2012-D044)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD has adopted as final, with changes, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement the United States--Panama Trade Promotion Agreement. This 
Trade Promotion Agreement is a free trade agreement that provides for 
mutually non-discriminatory treatment of eligible products and services 
from Panama.

DATES: Effective October 31, 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 
68699 on November 16, 2012, to implement the United States--Panama 
Trade Promotion Agreement. No respondents submitted public comments in 
response to the interim rule; however, a conforming change was made to 
the Duty-Free Entry clause, an amendment was made to the Photovoltaic 
Devices--Certificate clause to correct the electronic Code of Federal 
Regulations, and a correction was made to Alternate I of the Buy 
American Act-Free Trade Agreements-Balance of Payments Program 
Certificate. Therefore, DoD is converting the interim rule to a final 
rule with changes.

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 not a significant regulatory action and, therefore, was not 
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 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., 
because the Department of Defense only applies the trade agreements to 
the non-defense items listed at DFARS 225.401-70, and acquisitions that 
are set aside or

[[Page 65222]]

provide other forms of preference for small businesses are exempt. FAR 
19.502-2 states that acquisitions that do not exceed $150,000 (with 
some exceptions) are automatically reserved exclusively for small 
business concerns.

IV. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in the provisions at DFARS 252.225-7020 and 252.225-7035 
and the clause at 252.225-7013, currently approved under OMB Control 
Number 0704-229, 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). The 
impact, however, is negligible, because it is just a question of under 
which category offered goods from Panama would be listed and inclusion 
of products of Panama in the definition of ``eligible products'' in 
acquisitions that are equal to or exceed $202,000. 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, 

List of Subjects in 48 CFR Part 252

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Accordingly, the interim rule amending 48 CFR part 252, which was 
published at 77 FR 68699 on November 16, 2012, is adopted as a final 
rule with the following changes:


1. The authority citation for 48 CFR part 252 continues to read as 

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

2. Section 252.225-7013 is amended--
a. By removing the clause date ``(JUN 2012)'' and adding ``(OCT 2013)'' 
in its place;
b. By revising the paragraph (a) definition for ``Eligible product''; 
c. By amending the paragraph (a) definition for ````Qualifying 
country'' and ``qualifying country end product'''' by adding the term 
``,basic or alternate'' at the end of the sentence.
    The revision reads as follows:

252.225-7013  Duty-Free Entry

* * * * *
    (a) * * *
    Eligible product means--
    (i) Designated country end product as defined in the Trade 
Agreements clause of this contract;
    (ii) Free Trade Agreement country end product, other than a 
Bahrainian end product, a Moroccan end product, a Panamanian end 
product, or a Peruvian end product, as defined in the Buy American--
Free Trade Agreements--Balance of Payments Program clause of this 
contract, basic or its Alternate II;
    (iii) Canadian end product as defined in Alternate I or Alternate 
III of the Buy American--Free Trade Agreements--Balance of Payments 
Program clause of this contract; or
    (iv) Free Trade Agreement country end product other than a 
Bahrainian end product, Korean end product, Moroccan end product, 
Panamanian end product, or Peruvian end product as defined in Alternate 
IV or Alternate V of the Buy American--Free Trade Agreements--Balance 
of Payments Program clause of this contract.
* * * * *

252.225-7018  [Amended]

3. Section 252.225-7018 paragraph (c)(6) is amended by removing 
``$203,000'' and adding ``$202,000'' in its place.
4. Section 252.225-7035, Alternate I is revised as follows:

252.225-7035  Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate.

* * * * *


    As prescribed in 225.1101(9)(ii), substitute the phrase 
``Canadian end product'' for the phrases ``Bahrainian end product,'' 
``Free Trade Agreement country,'' ``Free Trade Agreement country end 
product,'' ``Moroccan end product,'' ``Panamanian end product,'' and 
``Peruvian end products'' in paragraph (a) of the basic provision; 
substitute the phrase ``Canadian end products'' for the phrase 
``Free Trade Agreement country end products other than Bahrainian 
end products, Moroccan end products, Panamanian end products, or 
Peruvian end products'' in paragraphs (b)(2) and (c)(2)(ii) of the 
basic provision; and delete the phrase ``Australian or'' from 
paragraph (c)(2)(i) of the basic provision.
* * * * *

[FR Doc. 2013-25726 Filed 10-30-13; 8:45 am]