[Federal Register Volume 81, Number 148 (Tuesday, August 2, 2016)]
[Rules and Regulations]
[Pages 50650-50652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17958]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2016-0021]
RIN 0750-AI97


Defense Federal Acquisition Regulation Supplement: New Qualifying 
Countries--Japan and Slovenia (DFARS Case 2016-D023)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to add Japan and Slovenia as 
qualifying countries.

DATES: Effective August 2, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Jo Ann Reilly, telephone 571-372-
6176.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is amending the DFARS to add Japan and Slovenia as qualifying 
countries. The Secretary of Defense recently signed reciprocal defense 
procurement agreements with these countries. These agreements were 
placed into force on June 4, 2016, for Japan and June 21, 2016, for 
Slovenia. The agreements remove discriminatory barriers to procurements 
of supplies and services produced by industrial enterprises of the 
other country to the extent mutually beneficial and consistent with 
national laws, regulations, policies, and international obligations. 
These agreements do not cover construction or construction material. 
Japan and Slovenia are already designated countries under the World 
Trade Organization Government Procurement Agreement.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items.

    This rule only updates the list of qualifying countries in the 
DFARS by adding the newly qualifying countries of Japan and Slovenia. 
The definition of ``qualifying country'' is updated in each of the 
following clauses; however, this revision does not impact the clause 
prescriptions for use, or applicability at or below the simplified 
acquisition threshold, or applicability to commercial items. The 
clauses are:

[[Page 50651]]

DFARS 252.225-7001, Buy American and Balance of Payments Program; DFARS 
252.225-7002, Qualifying Country Sources as Subcontractors; DFARS 
252.225-7012, Preference for Certain Domestic Commodities; DFARS 
252.225-7017, Photovoltaic Devices; DFARS 252.225-7021, Trade 
Agreements; and DFARS 252.225-7036, Buy American--Free Trade 
Agreements--Balance of Payments Program.

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is 41 U.S.C. 1707 entitled ``Publication 
of Proposed Regulations.'' Paragraph (a)(1) of the statute requires 
that a procurement policy, regulation, procedure or form (including an 
amendment or modification thereof) must be published for public comment 
if it relates to the expenditure of appropriated funds, and has either 
a significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it does not constitute a significant DFARS revision within the 
meaning of FAR 1.501-1 and does not have a significant cost or 
administrative impact on contractors or offerors. Japan and Slovenia 
are added to the list of 23 other countries that have similar 
reciprocal defense procurement agreements with DoD. These requirements 
affect only the internal operating procedures of the Government.

IV. 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.

V. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require 
publication for public comment.

VI. Paperwork Reduction Act

    The rule affects the certification and information collection 
requirements in the clause 252.225-7021, Trade Agreements, currently 
approved under OMB Control Number 0704-229, entitled ``DFARS 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 merely shifts the category under which items from 
Japan and Slovenia must be listed.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR parts 225 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 225 and 252 continues to 
read as follows:

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

PART 225--FOREIGN ACQUISITION


225.003   [Amended]

0
2. Section 225.003 is amended in paragraph (10), the definition of 
``qualifying country'', by adding, in alphabetical order, the countries 
of ``Japan'' and ``Slovenia'', respectively.


225.872-1   [Amended]

0
3. Section 225.872-1 is amended in paragraph (a) by adding, in 
alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.225-7001   [Amended]

0
4. Section 252.225-7001 is amended by--
0
a. In the clause heading, removing the date ``(NOV 2014)'' and adding 
``(AUG 2016)'' in its place;
0
b. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively; and
0
c. In the Alternate I clause heading--
0
i. Removing the date ``(NOV 2014)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.


252.225-7002   [Amended]

0
5. Section 252.225-7002 is amended by--
0
a. In the clause heading, removing the date ``(DEC 2012)'' and adding 
``(AUG 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.


252.225-7012   [Amended]

0
6. Section 252.225-7012 is amended by--
0
a. In the clause heading, removing the date ``(FEB 2013)'' and adding 
``(JUL 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.


252.225-7017   [Amended]

0
7. Section 252.225-7017 is amended by--
0
a. In the clause heading, removing the date ``(JUN 2016)'' and adding 
``(AUG 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.


252.225-7021   [Amended]

0
8. Section 252.225-7021 is amended by--
0
a. In the clause heading, removing the date ``(JUN 2015)'' and adding 
``(AUG 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively; and
0
c. In the Alternate II clause heading--
0
i. Removing the date ``(JUN 2015)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.


252.225-7036   [Amended]

0
9. Section 252.225-7036 is amended by--
0
a. In the clause heading, removing the date ``(NOV 2014)'' and adding 
``(AUG 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``qualifying country'', adding, 
in

[[Page 50652]]

alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively; and
0
c. In the Alternate I clause heading--
0
i. Removing the date ``(NOV 2014)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a) definition of ``qualifying country'', adding, in 
alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.
0
d. In the Alternate II clause heading--
0
i. Removing the date ``(NOV 2014)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.
0
e. In the Alternate III clause heading--
0
i. Removing the date ``(NOV 2014)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.
0
f. In the Alternate IV clause heading--
0
i. Removing the date ``(NOV 2014)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.
0
g. In the Alternate V clause heading--
0
i. Removing the date ``(NOV 2014)'' and adding ``(AUG 2016)'' in its 
place; and
0
ii. In paragraph (a), the definition of ``qualifying country'', adding, 
in alphabetical order, the countries of ``Japan'' and ``Slovenia'', 
respectively.

[FR Doc. 2016-17958 Filed 8-1-16; 8:45 am]
 BILLING CODE 5001-06-P