[Federal Register Volume 84, Number 178 (Friday, September 13, 2019)]
[Rules and Regulations]
[Pages 48500-48501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19560]



Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2019-0055]
RIN 0750-AK53

Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause ``Trade Agreements'' (DFARS Case 2019-D016)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update a paragraph 
citation in DFARS clause 252.225-7021, Trade Agreements.

DATES: Effective September 13, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-


I. Background

    This final rule amends DFARS clause 252.225-7021, Trade Agreements, 
to update an outdated citation in paragraph (e) of the basic clause and 
paragraph (f) of the alternate II clause. The DFARS clause is included 
in solicitations and contracts for the acquisition of supplies subject 
to the World Trade Organization Government Procurement Agreement. The 
clause: Provides pertinent definitions and country listings for 
designated and qualifying countries; requires contractors to deliver 
only U.S.-made, qualifying country, or designated country end items, 
unless otherwise stated in the contract; prohibits the contract price 
from including duty for products for which the contractor will claim 
duty-free entry; and provides information on applicable sections of the 
Harmonized Tariff Schedule of the United States (HTSUS).
    Paragraph (e) of the basic clause and paragraph (f) of the 
alternate II clause provide a link to the HTSUS and identify specific 
sections of the Schedule that provide more information

[[Page 48501]]

on the duty-free status of articles specified in paragraph 
(a)(2)(ii)(A) of the clause. Paragraph (a)(2)(ii)(A) used to be the 
location in the clause for the definition of ``Caribbean Basin country 
end product,'' but this paragraph number no longer exists. Instead, the 
clause has been renumbered and all of the definitions in the clause are 
include in alphabetical order under paragraph (a).
    This rule removes the reference to paragraph (a)(2)(ii)(A) in the 
clause and replaces it with a reference to the definition of 
``Caribbean Basin country end product'' in paragraph (a).

II. Discussion and Analysis

    The modification of this DFARS text implements a recommendation 
from the DoD Regulatory Reform Task Force. On February 24, 2017, the 
President signed Executive Order (E.O.) 13777, ``Enforcing the 
Regulatory Reform Agenda,'' which established a Federal policy ``to 
alleviate unnecessary regulatory burdens'' on the American people. In 
accordance with E.O. 13777, DoD established a Regulatory Reform Task 
Force to review and validate DoD regulations, including the DFARS. A 
public notice of the establishment of the DFARS Subgroup to the DoD 
Regulatory Reform Task Force, for the purpose of reviewing DFARS 
provisions and clauses, was published in the Federal Register at 82 FR 
35741 on August 1, 2017, and requested public input. No public comments 
were received on this clause. The DoD Regulatory Reform Task Force 
reviewed the requirements of DFARS clause 252.225-7021 and recommended 
its modification to correct the reference.

III. 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 a citation in an existing clause. The rule 
does not impose any new requirements on contracts at or below the 
simplified acquisition threshold or for commercial items, including 
commercially available off-the-shelf items.

IV. 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 is Office of Federal Procurement Policy statute 
(codified at title 41 of the United States Code). Specifically, 41 
U.S.C. 1707(a)(1) 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 DoD is not 
issuing a new regulation; rather, this rule is merely updating a 
reference in an existing clause.

V. Executive Orders 12866 and 13563

    E.O.s 12866 and E.O. 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.

VI. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VII. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section IV. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required, and none has been prepared.

VIII. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 252 is amended as follows:


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

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

252.225-7021  [Amended]

2. Amend section 252.225-7021 by--
a. In the clause heading, removing the date ``(AUG 2019)'' and adding 
``(SEP 2019)'' in its place;
b. In paragraph (e) introductory text, removing ``paragraph 
(a)(2)(ii)(A)'' and adding ``the definition of ``Caribbean Basin 
country end product'' within paragraph (a)'' in its place.
c. In the Alternate II clause--
i. In the clause heading, removing the date ``(AUG 2019)'' and adding 
``(SEP 2019)'' in its place;
ii. In paragraph (f) introductory text, removing ``paragraph 
(a)(2)(ii)(A)'' and adding ``the definition of ``Caribbean Basin 
country end product'' within paragraph (a)'' in its place.

[FR Doc. 2019-19560 Filed 9-12-19; 8:45 am]