[Federal Register Volume 86, Number 165 (Monday, August 30, 2021)]
[Proposed Rules]
[Pages 48370-48384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18338]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 252
[Docket DARS-2021-0012]
RIN 0750-AK85
Defense Federal Acquisition Regulation Supplement: Maximizing the
Use of American-Made Goods (DFARS Case 2019-D045)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to implement an Executive order regarding
maximizing the use of American-made goods, products, and materials.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before October 29, 2021, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2019-D045, using
any of the following methods:
[cir] Federal eRulemaking Portal: https://www.regulations.gov.
Search for ``DFARS Case 2019-D045'' in the search box and select
``Search.'' Select ``Comment'' and follow the instructions to submit a
comment. Please include your name, company name (if any), and ``DFARS
Case 2019-D045'' on any attached document.
[cir] Email: [email protected]. Include DFARS Case 2019-D045 in
the subject line of the message.
Comments received generally will be posted without change to
https://www.regulations.gov, including any personal information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Ms. Kimberly Bass, telephone 571-372-
6174.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to amend the DFARS to implement section 2(a)(i) of
Executive Order (E.O.) 13881, Maximizing Use of American-Made Goods,
Products, and Materials, which changes the percentages used to
determine whether a product is
[[Page 48371]]
domestic or foreign under the Buy American statute (41 U.S.C. chapter
83). Section 2(a)(i) of E.O. 13881 is not inconsistent with E.O. 14005,
Ensuring the Future Is Made in All of America by All of America's
Workers, which supersedes E.O. 13881 to the extent that it is
inconsistent with E.O. 14005. E.O. 13881 calls for more aggressive
implementation of the Buy American statute to maximize the Government's
procurement of American-made goods, products, and materials. The Buy
American statute requires the purchase of domestic products (both end
products and construction materials), except for instances when the
domestic product is not available, the domestic product is only
available at an unreasonable cost, or it would not be in the public
interest to buy the domestic product.
E.O. 13881 supersedes E.O. 10582, Prescribing Procedures for
Certain Determinations under the Buy American Act, to the extent that
it is inconsistent with E.O. 13881, by establishing that under the Buy
American statute a product is foreign if the cost of the foreign
components used in such end product constitutes 45 percent or more of
the cost of all products used in such end products, except that iron
and steel products are foreign if the cost of foreign iron and steel
equals or constitutes 5 percent of the cost of all products used in
iron and steel end products.
In order to promote economic and national security, stimulate
economic growth, and create jobs, this rule proposes to strengthen
domestic preferences under the Buy American statute by changing how a
domestic product is defined, while also maintaining the exception to
the statutory requirement for qualifying countries.
II. Discussion and Analysis
The Buy American statute is implemented in Federal Acquisition
Regulation (FAR) part 25. Revisions to the FAR to implement E.O. 13881
have been accomplished under FAR Case 2019-016, published in the
Federal Register on January 19, 2021 (86 FR 6180). This rule proposes
revisions to DFARS part 225 and the associated clauses to implement the
DoD-unique requirements and conforming changes associated with
implementation of E.O. 13881.
Revisions are proposed to the definitions of ``domestic end
product'' and ``domestic construction material.'' Specifically, these
definitions are each broken into two paragraphs to differentiate
between end products and construction material that consist wholly or
predominantly of iron or steel or a combination of both, and those that
do not. Per the revised definition of ``domestic end product,'' an end
product that consists wholly or predominantly of iron or steel, or a
combination of both, is only considered a domestic end product if the
end product is manufactured in the United States, and the cost of iron
and steel not produced in the United States, or a qualifying country,
constitutes less than 5 percent of the cost of all the materials used
in the end product. For ``domestic construction material,'' if the
construction material consists wholly or predominantly of iron or
steel, or a combination of both, then the cost of iron and steel not
produced in the United States (excluding fasteners) must constitute
less than 5 percent of the cost of all the components used in the
construction material. As explained in the definition of ``foreign iron
and steel'' at FAR 25.003, ``produced in the United States'' means that
all manufacturing processes of the iron or steel must take place in the
United States, from the initial melting stage through the application
of coatings, except metallurgical processes involving refinement of
steel additives.
The definition of a ``domestic end product'' is further revised to
stipulate that if the end product does not consist wholly or
predominantly of iron or steel, or a combination of both, then it is
only considered a domestic end product if the end product is
manufactured in the United States, and the cost of its qualifying
country components and its components that are mined, produced, or
manufactured in the United States exceeds 55 percent (an increase from
50 percent) of the cost of all its components. Similarly, for
``domestic construction material'' that does not consist wholly or
predominantly of iron or steel, or a combination of both, the cost of
its components mined, produced, or manufactured in the United States
must exceed 55 percent (an increase from 50 percent) of the cost of all
its components. In both cases, components of unknown origin are treated
as foreign.
Conforming changes are made throughout the DFARS to implement the
revised definitions, to include revisions to the description of the
two-part test for domestic end products at DFARS 225.101. This rule
also proposes definitions for the terms ``predominantly of iron or
steel or a combination of both'' and ``steel,'' which are used in the
revised definitions of ``domestic end product'' and ``domestic
construction material.'' Conforming changes are also made to
redesignate paragraph numbers to reflect current drafting conventions
in definitions for a number of clauses that are being updated.
No changes are proposed in this rule to implement the E.O. 13881
change to the percentage factor used to determine whether the offered
price of material of domestic origin is unreasonable or inconsistent
with public interest. E.O. 13881 increases the percentage factor from 6
percent to 20 percent for entities other than small businesses, and
from 12 percent to 30 percent for small businesses. However, DoD
already uses a 50 percent factor for both large and small businesses,
so no change is necessary for DoD to comply with the increased
percentage factors in E.O. 13881. In addition, E.O. 13881 does not
remove any existing exemptions to the Buy American statute for products
of qualifying countries; therefore, this rule does not include any
proposed changes to the exemptions.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-The-Shelf Items
This proposed rule does not add any new provisions or clauses, nor
change the applicability of existing provisions or clauses to contracts
at or below the simplified acquisition threshold and contracts for the
acquisition of commercial items, including commercially available off-
the-shelf items.
IV. Expected Impact of the Rule
The current FAR contract clauses implementing the Buy American
statute apply to a narrow set of procurements. In addition, because the
Federal Acquisition Regulatory Council retained the commercially
available off-the-shelf (COTS) items exception for most COTS items in
its implementation of the E.O. in the FAR, the heightened domestic
content requirements will not be applicable to those procurements. (See
the final rule for FAR Case 2019-016 published at 86 FR 6180 on January
19, 2021.) This proposed DFARS rule takes the same approach.
Domestic industries supplying domestic end products are likely to
benefit from a competitive advantage as a result of the FAR and DFARS
implementation. Based on the E.O., it is unclear if the pool of
qualified suppliers would be reduced, resulting in less competition and
a possible increase in prices that the Government will pay to procure
these products. At least three arguments point to the likelihood that
any increase in burden on contractors would be small, if not de
minimis:
[[Page 48372]]
(1) Familiarization costs should be low.
(2) Some, if not many, contractors may already be able to meet the
more stringent threshold.
(3) Costs incurred by contractors who adjust their supply chains,
so that their end products qualify as domestic, will enjoy a larger
price preference that should help to offset these costs over time.
Each of these arguments is explained below.
First, DoD does not anticipate significant costs from contractor
familiarization with the rule given the recent publication of the FAR
final rule implementing E.O. 13881 and the history of rulemaking and
E.O.s in general in this area. The basic mechanics of the Buy American
statute (e.g., how and when the price preference is used to favor
domestic end products, certifications required of offerors to
demonstrate end products are domestic) continue to reflect processes
that have been in place for decades and are not new to contractors.
Second, some, if not many, contractors may already be able to
comply with the lower foreign content requirement needed to meet the
definition of domestic end product under E.O. 13881 and the proposed
rule. Laws such as the SECURE Technology Act (Pub. L. 115-390), which
requires a series of actions to strengthen the Federal infrastructure
for managing supply chain risks, are placing significantly increased
emphasis on Federal agencies and Federal Government contractors to
identify and reduce risk in their supply chains.
One way to reduce supply chain risk is to increase domestic
sourcing of content. In addition, in the context of iron and steel,
many laws already in place call for more stringent accounting of
domestic sourcing of content. For example, the Recovery Act required
that all construction material for a project for the construction,
alteration, maintenance, or repair of a public building or a public
work in the United States, consisting wholly or predominantly of iron
or steel, had to be produced in the United States when using Recovery
Act funds, to the extent consistent with trade agreements (see FAR
25.602-1, implementing section 1605 of the Recovery Act).
In addition, Federal contractors who also work on contracts funded
under Federal grants may, in some cases, find that the steel, iron, and
manufactured goods used in the project must be produced in the United
States, as is the case for certain funding administered by the Federal
Transit Administration for public transportation projects (see 49
U.S.C. 5323(j)).
Third, it is anticipated that some contractors' products and
construction materials may not meet the definition of domestic end
product and construction material unless the contractors take steps to
adjust their supply chains to increase the domestic content. Those
contractors that make a business decision not to modify their supply
chains will still be able to bid on DoD contracts but will no longer
enjoy a price preference.
Accordingly, it is likely that the Federal market for iron and
steel has already completed significant retooling and could meet the
requirements of E.O. 13881 without too much additional effort.
This rule proposes to amend clauses that implement the Buy American
statute. There are 4 clauses affected by the changes in this rule:
(1) 252.225-7001, Buy American and Balance of Payments Program
(Basic and Alternate I).
(2) 252.225-7036, Buy American--Free Trade Agreements--Balance of
Payments Program (Basic and Alternates I-V).
(3) 252.225-7044, Balance of Payments Program--Construction
Material (Basic and Alternate I).
(4) 252.225-7045, Balance of Payments Program--Construction
Material (Basic and Alternates I-III).
This rule changes the definitions of ``domestic end product'' and
``domestic construction material.'' The rule also adds the definitions
of ``steel'' and ``predominantly of iron or steel or a combination of
both'' in the clauses to conform the DFARS with the FAR implementation
of E.O. 13881.
According to the Federal Procurement Data System (FPDS) data for
fiscal year (FY) 2017, FY 2018, and FY 2019 for new awards with a
foreign place of performance for construction valued over the micro-
purchase threshold and for awards for supplies, DoD awarded an average
of 3,222 construction contracts with a foreign place of performance per
year. In addition, DoD awarded an average of 332,607 supply contracts
per year during FY 2017 through FY 2019.
In summary, the rule will strengthen domestic preferences under the
Buy American statute and provide both large and small businesses the
opportunity and incentive to deliver U.S. manufactured products from
domestic suppliers. It is expected that this rule will benefit large
and small U.S. manufacturers, including those of iron or steel.
Therefore, it is estimated that any increase in implementation
costs associated with this rule is de minimis.
V. Executive Orders 12866 and 13563
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.
VI. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808),
before an interim or final rule takes effect, DoD will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
under the Congressional Review Act, to the U.S. Senate, the U.S. House
of Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. This rule is not
anticipated to be a major rule under 5 U.S.C. 804.
VII. Regulatory Flexibility Act
DoD does not expect this proposed rule to 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.
However, an initial regulatory flexibility analysis has been performed
and is summarized as follows:
The rule proposes to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to implement section 2(a)(i) of Executive
Order (E.O.) 13881, Maximizing Use of American-Made Goods, Products,
and Materials, and also makes conforming changes to the applicable
clauses as a result of implementation of this E.O. in the Federal
Acquisition Regulation (FAR).
The objective of this rule is to strengthen domestic preferences
under the Buy American statute, as required by E.O. 13881, by changing
how a domestic product and domestic construction material are defined.
Data was obtained from the Federal Procurement Data System (FPDS)
on awards valued over the micro-purchase threshold in fiscal year (FY)
2017, FY
[[Page 48373]]
2018, and FY 2019 that had a foreign place of performance and were for
construction. DoD awarded an average of 3,222 construction contracts
with a foreign place of performance per year during FY 2017 through FY
2019. Of those construction contracts, approximately 65 were awarded to
32 unique small entities per year.
Data was also obtained from FPDS for FY 2017 through FY 2019 on
awards valued over the micro-purchase threshold for supplies made in
the United States. DoD awarded an average of 332,607 supply contracts
per year during FY 2017 through FY 2019. Of those supply contracts,
approximately 154,422 supply contracts were awarded to 13,480 unique
small entities per year.
The rule will strengthen domestic preferences under the Buy
American statute and provide small businesses the opportunity and
incentive to deliver U.S. manufactured products from domestic
suppliers. It is expected that this rule generally will benefit U.S.
small business manufacturers, including those of iron or steel. Small
business manufacturers who do not already meet the increased domestic
content requirements of this proposed rule may need to adjust their
supply chains. DoD does not have data on how many small business
manufacturers may decide to make such adjustments.
This rule does not include any new reporting, recordkeeping, or
other compliance requirements for small businesses. This rule only
changes the definitions of ``domestic end product'' and ``domestic
construction material'' and adds the definitions of ``predominantly of
iron or steel or a combination of both'' and ``steel'' to conform the
DFARS with the FAR revisions as a result of E.O. 13881 implementation.
Overall, the rule does not impose any additional compliance
requirements on contractors or process procedures for the Government,
other than to increase the percentages for use in the domestic content
test applied to offers of manufactured end products.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known significant alternative approaches to the
proposed rule that would meet the requirements of E.O. 13881.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2019-D045), in
correspondence.
VII. 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 Parts 225 and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 225 and 252 are proposed to be amended as
follows:
0
1. The authority citation for parts 225 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 225--FOREIGN ACQUISITION
0
2. Amend section 225.003 by:
0
a. Revising the definition of ``Domestic end product'';
0
b. Removing the definition ``Qualifying country component and
qualifying country end product''; and
0
c. Adding definitions for ``Qualifying country component'' and
``Qualifying country end product'' in alphabetical order.
The revision and additions read as follows:
225.003 Definitions.
* * * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a commercially available off-the-shelf
(COTS) item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Qualifying country component means a component mined, produced, or
manufactured in a qualifying country.
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
[[Page 48374]]
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
* * * * *
0
3. Revise the subpart 225.1 heading to read as follows:
SUBPART 225.1--BUY AMERICAN--SUPPLIES
0
4. Amend section 225.101 by revising paragraph (a)(ii) to read as
follows:
225.101 General.
(a) * * *
(ii)(A) Except for an end product that consists wholly or
predominantly of iron or steel or a combination of both, the cost of
its U.S. and qualifying country components exceeds 55 percent of the
cost of all its components. This test is applied to end products only
and not to individual components.
(B) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, the cost of iron and steel not
produced in the United States or a qualifying country must constitute
less than 5 percent of the cost of all the components used in the end
product. The cost of iron and steel not produced in the United States
or a qualifying country includes but is not limited to the cost of iron
or steel mill products (such as bar, billet, slab, wire, plate, or
sheet), castings, or forgings, not produced in the United States or a
qualifying country, utilized in the manufacture of the end product and
a good faith estimate of the cost of all iron or steel components not
produced in the United States or a qualifying country, excluding
commercially available off-the-shelf (COTS) fasteners. The domestic
content test of the Buy American statute has not been waived for
acquisitions of COTS items in this category, except for COTS fasteners.
* * * * *
225.502 [Amended]
0
5. Amend section 225.502 by--
0
a. In paragraph (c)(ii)(B), removing ``225.504(1)'' and adding ``PGI
225.504(1)'' in its place;
0
b. In paragraph (c)(ii)(D), removing ``225.504(2)'' and adding ``PGI
225.504(2)'' in its place;
0
c. In paragraph (c)(ii)(E)(1), removing ``225.504(3)'' and adding ``PGI
225.504(3)'' in its place; and
0
d. In paragraph (c)(ii)(E)(2), removing ``225.504(4)'' and adding ``PGI
225.504(4)'' in its place.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
6. Amend section 252.225-7001 by--
0
a. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
ii. Revising the definition of ``Domestic end product'';
0
iii. Adding, in alphabetical order, the definition of ``Predominantly
of iron or steel or a combination of both'';
0
iv. Revising the definition of ``Qualifying country end product''; and
0
v. Adding, in alphabetical order, the definition of ``Steel''; and
0
c. In Alternate I--
0
i. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
B. Revising the definition of ``Domestic end product'';
0
C. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
D. Revising the definition of ``Qualifying country end product'';
0
E. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
0
F. Adding, in alphabetical order, the definition of ``Steel''.
The revisions and additions read as follows:
252.225-7001 Buy American and Balance of Payments Program.
* * * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
[[Page 48375]]
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate I. * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
0
7. Amend section 252.225-7036 by--
0
a. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place.
0
b. In paragraph (a)--
0
i. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2) respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2) respectively;
0
iii. Revising the definition of ``Domestic end product'';
0
iv. In the definition of ``Free Trade Agreement country'', removing the
semicolon and adding a period in its place;
0
v. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2) respectively;
0
vi. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
vii. Revising the definition of ``Qualifying country end product''; and
0
viii. Adding, in alphabetical order, the definition of ``Steel''.
[[Page 48376]]
0
c. In Alternate I--
0
i. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian end product'' and ``Canadian end
product'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product''; and
0
H. Adding, in alphabetical order, the definition of ``Steel''.
0
d. In Alternate II--
0
i. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. Revising the definitions of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product'';
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
0
I. Adding, in alphabetical order, the definition of ``Steel''.
0
e. In Alternate III--
0
i. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian end product'' and ``Canadian end
product'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product'';
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
0
I. Adding, in alphabetical order, the definition of ``Steel''.
0
f. In Alternate IV--
0
i. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the
semicolon and adding a period in its place;
0
E. In definitions of ``Free Trade Agreement country end product'',
``Korean end product'', ``Moroccan end product'', ``Panamanian end
product'', and ``Peruvian end product'', redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product''; and
0
H. Adding, in alphabetical order, the definition of ``Steel''.
0
g. In Alternate V--
0
i. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Korean end product'', ``Moroccan end product'', ``Panamanian end
product'', and ``Peruvian end product'', redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product'';
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
0
I. Adding, in alphabetical order, the definition of ``Steel''.
The revisions and additions read as follows:
252.225-7036 Buy American--Free Trade Agreements--Balance of Payments
Program.
* * * * *
(a) * * *
Domestic end product means--
[[Page 48377]]
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate I. * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(C) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel
[[Page 48378]]
is the cost of the iron or steel mill products (such as bar, billet,
slab, wire, plate, or sheet), castings, or forgings utilized in the
manufacture of the product and a good faith estimate of the cost of
iron or steel components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate II. * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate III. * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(C) The end product is a COTS item; or
[[Page 48379]]
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron and steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate IV. * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
[[Page 48380]]
Alternate V. * * *
(a) * * *
Domestic end product means--
(1) For an end product that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured end product mined or produced in the United
States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 55 percent of the cost of all its components. The cost
of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Components of unknown origin
are treated as foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic. A component is
considered to have been mined, produced, or manufactured in the United
States (regardless of its source in fact) if the end product in which
it is incorporated is manufactured in the United States and the
component is of a class or kind for which the Government has determined
that--
(1) Sufficient and reasonably available commercial quantities of a
satisfactory quality are not mined, produced, or manufactured in the
United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item; or
(2) For an end product that consists wholly or predominantly of
iron or steel or a combination of both, an end product manufactured in
the United States, if the cost of iron and steel not produced in the
United States or a qualifying country constitutes less than 5 percent
of the cost of all the components used in the end product (produced in
the United States or a qualifying country means that all manufacturing
processes of the iron or steel must take place in the United States or
a qualifying country, except metallurgical processes involving
refinement of steel additives). The cost of iron and steel not produced
in the United States or a qualifying country includes but is not
limited to the cost of iron or steel mill products (such as bar,
billet, slab, wire, plate, or sheet), castings, or forgings, not
produced in the United States or a qualifying country, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States or a
qualifying country, excluding COTS fasteners. Iron or steel components
of unknown origin are treated as foreign. If the end product contains
multiple components, the cost of all the materials used in such end
product is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Qualifying country end product means--
(1) An unmanufactured end product mined or produced in a qualifying
country; or
(2) An end product manufactured in a qualifying country if--
(i) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(A) Components mined, produced, or manufactured in a qualifying
country.
(B) Components mined, produced, or manufactured in the United
States.
(C) Components of foreign origin of a class or kind for which the
Government has determined that sufficient and reasonably available
commercial quantities of a satisfactory quality are not mined,
produced, or manufactured in the United States. Components of unknown
origin are treated as foreign; or
(ii) The end product is a COTS item.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
0
8. Amend section 252.225-7044 by--
0
a. Removing the clause date of ``(NOV 2014)'' and adding ``(DATE)'' in
its place.
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
ii. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
iii. Revising the definition of ``Domestic construction material''; and
0
iv. Adding, in alphabetical order, the definitions of ``Predominantly
of iron or steel or a combination of both'' and ``Steel''.
0
c. In Alternate I--
0
i. Removing the clause date of ``(NOV 2014)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
B. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
C. Revising the definition of ``Domestic construction material'';
0
D. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
E. In the definition of ``SC/CASA state construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively; and
0
F. Adding, in alphabetical order, the definition of ``Steel''.
The revisions and additions read as follows:
Sec. 252.225-7044 Balance of Payments Program--Construction Material.
* * * * *
(a) * * *
Domestic construction material means--
(1) For construction material that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 55 percent of the cost of all its components.
Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic.
Components of unknown origin are treated as foreign; or
(B) The construction material is a COTS item; or
(2) For construction material that consists wholly or predominantly
of iron or steel or a combination of both,
[[Page 48381]]
a construction material manufactured in the United States if the cost
of iron and steel not produced in the United States (excluding
fasteners) as estimated in good faith by the contractor, constitutes
less than 5 percent of the cost of all the components used in such
construction material (produced in the United States means that all
manufacturing processes of the iron or steel must take place in the
United States, except metallurgical processes involving refinement of
steel additives). The cost of iron and steel not produced in the United
States includes but is not limited to the cost of iron or steel mill
products (such as bar, billet, slab, wire, plate, or sheet), castings,
or forgings, not produced in the United States, utilized in the
manufacture of the end product and a good faith estimate of the cost of
all iron or steel components not produced in the United States,
excluding COTS fasteners. Iron or steel components of unknown origin
are treated as foreign. If the construction material contains multiple
components, the cost of all the materials used in such construction
material is calculated in accordance with the explanation of cost of
components in paragraph (1)(ii)(A) of this definition.
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate I. * * *
(a) * * *
Domestic construction material means--
(1) For construction material that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 55 percent of the cost of all its components.
Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic.
Components of unknown origin are treated as foreign; or
(B) The construction material is a COTS item; or
(2) For construction material that consists wholly or predominantly
of iron or steel or a combination of both, a construction material
manufactured in the United States if the cost of iron or steel not
produced in the United States (excluding fasteners) as estimated in
good faith by the contractor, constitutes less than 5 percent of the
cost of all the components used in such construction material (produced
in the United States means that all manufacturing processes of the iron
or steel must take place in the United States, except metallurgical
processes involving refinement of steel additives). The cost of iron
and steel not produced in the United States includes but is not limited
to the cost of iron or steel mill products (such as bar, billet, slab,
wire, plate, or sheet), castings, or forgings, not produced in the
United States, utilized in the manufacture of the construction material
and a good faith estimate of the cost of all iron or steel components
not produced in the United States, excluding COTS fasteners. Iron or
steel components of unknown origin are treated as foreign. If the
construction material contains multiple components, the cost of all the
materials used in such construction material is calculated in
accordance with the explanation of cost of components in paragraph
(1)(ii)(A) of this definition.
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
0
9. Amend section 252.225-7045 by--
0
a. Removing the clause date of ``(AUG 2019)'' and adding ``(DATE)'' in
its place.
0
b. In paragraph (a)--
0
i. In the definition of ``Caribbean Basin country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
iii. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
iv. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively;
0
v. Revising the definition of ``Domestic construction material'';
0
vi. In the definitions of ``Free Trade Agreement country construction
material'' and ``Least developed country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
vii. Adding, in alphabetical order, the definitions of ``Predominantly
of iron or steel or a combination of both'' and ``Steel''; and
0
viii. In the definition of ``WTO GPA country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively.
0
c. In Alternate I--
0
i. Removing the clause date of ``(AUG 2019)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian or Mexican construction
material'' and ``Caribbean Basin country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively;
0
E. Revising the definition of ``Domestic construction material'';
0
F. In the definition of ``Free Trade Agreement country construction
material'' and ``Least developed country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
G. Adding, in alphabetical order, the definitions of ``Predominantly of
iron or steel or a combination of both'' and ``Steel''; and
0
H. In the definition of ``WTO GPA country construction material'',
[[Page 48382]]
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively.
0
d. In Alternate II--
0
i. Removing the clause date of ``(AUG 2019)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively;
0
E. Revising the definition of ``Domestic construction material'';
0
F. In the definitions of ``Free Trade Agreement country construction
material'' and ``Least developed country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
G. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
H. In the definition of ``SC/CASA state construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
I. Adding, in alphabetical order, the definition of ``Steel''; and
0
J. In the definition of ``WTO GPA country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively.
0
e. In Alternate III--
0
i. Removing the clause date of ``(AUG 2019)'' and adding ``(DATE)'' in
its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively;
0
E. Revising the definition of ``Domestic construction material'';
0
F. In the definitions of ``Free Trade Agreement country construction
material'' and ``Least developed country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
G. Adding, in alphabetical order, the definition of ``Predominantly of
iron or steel or a combination of both'';
0
H. In the definition of ``SC/CASA state construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
I. Adding, in alphabetical order, the definition of ``Steel''; and
0
J. In the definition of ``WTO GPA country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively.
The revisions and additions read as follows:
Sec. 252.225-7045 Balance of Payments Program--Construction Material
Under Trade Agreements.
* * * * *
(a) * * *
Domestic construction material means--
(1) For construction material that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 55 percent of the cost of all its components.
Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic.
Components of unknown origin are treated as foreign; or
(B) The construction material is a COTS item; or
(2) For construction material that consists wholly or predominantly
of iron or steel or a combination of both, a construction material
manufactured in the United States if the cost of iron and steel not
produced in the United States (excluding fasteners) as estimated in
good faith by the contractor, constitutes less than 5 percent of the
cost of all the components used in such construction material (produced
in the United States means that all manufacturing processes of the iron
or steel must take place in the United States, except metallurgical
processes involving refinement of steel additives). The cost of iron
and steel not produced in the United States includes but is not limited
to the cost of iron or steel mill products (such as bar, billet, slab,
wire, plate, or sheet), castings, or forgings, not produced in the
United States, utilized in the manufacture of the construction material
and a good faith estimate of the cost of all iron or steel components
not produced in the United States, excluding COTS fasteners. Iron or
steel components of unknown origin are treated as foreign. If the
construction material contains multiple components, the cost of all the
materials used in such construction material is calculated in
accordance with the explanation of cost of components in paragraph
(1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate I. * * *
(a) * * *
Domestic construction material means--
(1) For construction material that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 55 percent of the cost of all its components.
Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic.
Components of unknown origin are treated as foreign; or
(B) The construction material is a COTS item; or
(2) For construction material that consists wholly or predominantly
of iron or steel or a combination of both, a construction material
manufactured in the United States if the cost of iron and
[[Page 48383]]
steel not produced in the United States (excluding fasteners) as
estimated in good faith by the contractor, constitutes less than 5
percent of the cost of all the components used in such construction
material (produced in the United States means that all manufacturing
processes of the iron or steel must take place in the United States,
except metallurgical processes involving refinement of steel
additives). The cost of iron and steel not produced in the United
States includes but is not limited to the cost of iron or steel mill
products (such as bar, billet, slab, wire, plate, or sheet), castings,
or forgings, not produced in the United States, utilized in the
manufacture of the construction material and a good faith estimate of
the cost of all iron or steel components not produced in the United
States, excluding COTS fasteners. Iron or steel components of unknown
origin are treated as foreign. If the construction material contains
multiple components, the cost of all the materials used in such
construction material is calculated in accordance with the explanation
of cost of components in paragraph (1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate II. * * *
(a) * * *
Domestic construction material means--
(1) For construction material that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 55 percent of the cost of all its components.
Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic.
Components of unknown origin are treated as foreign; or
(B) The construction material is a COTS item; or
(2) For construction material that consists wholly or predominantly
of iron or steel or a combination of both, a construction material
manufactured in the United States if the cost of iron and steel not
produced in the United States (excluding fasteners) as estimated in
good faith by the contractor, constitutes less than 5 percent of the
cost of all the components used in such construction material (produced
in the United States means that all manufacturing processes of the iron
or steel must take place in the United States, except metallurgical
processes involving refinement of steel additives). The cost of iron
and steel not produced in the United States includes but is not limited
to the cost of iron or steel mill products (such as bar, billet, slab,
wire, plate, or sheet), castings, or forgings, not produced in the
United States, utilized in the manufacture of the construction material
and a good faith estimate of the cost of all iron or steel components
not produced in the United States, excluding COTS fasteners. Iron or
steel components of unknown origin are treated as foreign. If the
construction material contains multiple components, the cost of all the
materials used in such construction material is calculated in
accordance with the explanation of cost of components in paragraph
(1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
Alternate III. * * *
(a) * * *
Domestic construction material means--
(1) For construction material that does not consist wholly or
predominantly of iron or steel or a combination of both--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 55 percent of the cost of all its components.
Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic.
Components of unknown origin are treated as foreign; or
(B) The construction material is a COTS item; or
(2) For construction material that consists wholly or predominantly
of iron or steel or a combination of both, a construction material
manufactured in the United States if the cost of iron and steel not
produced in the United States (excluding fasteners) as estimated in
good faith by the contractor, constitutes less than 5 percent of the
cost of all the components used in such construction material (produced
in the United States means that all manufacturing processes of the iron
or steel must take place in the United States, except metallurgical
processes involving refinement of steel additives). The cost of iron
and steel not produced in the United States includes but is not limited
to the cost of iron or steel mill products (such as bar, billet, slab,
wire, plate, or sheet), castings, or forgings, not produced in the
United States, utilized in the manufacture of the construction material
and a good faith estimate of the cost of iron or steel components not
produced in the United States, excluding COTS fasteners. Iron or steel
components of unknown origin are treated as foreign. If the
construction material contains multiple components, the cost of all the
materials used in such construction material is calculated in
accordance with the explanation of cost of components in paragraph
(1)(ii)(A) of this definition.
* * * * *
Predominantly of iron or steel or a combination of both means that
the cost of the iron and steel content exceeds 50 percent of the total
cost of all its components. The cost of iron and steel is the cost of
the iron or steel mill products (such as bar, billet, slab, wire,
plate, or sheet), castings, or forgings utilized in the manufacture of
the product and a good faith estimate of the cost of iron or steel
components excluding COTS fasteners.
* * * * *
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and
[[Page 48384]]
2 percent carbon, and may include other elements.
* * * * *
[FR Doc. 2021-18338 Filed 8-27-21; 8:45 am]
BILLING CODE 5001-06-P