DATE: December 28, 2004

SUBJECT: Federal Acquisition Circular (FAC) 2001-27, Australia and Morocco Free Trade Agreements

SOURCE: Federal Register, December 28, 2004, Vol. 69, No. 248, page 76339

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Interim Rule

SYNOPSIS: The Federal Acquisition Secretariat is issuing FAC 2001-27 to amend the Federal Acquisition Regulation (FAR) to allow the purchase of products from Australia and Morocco without application of the Buy American Act if the acquisition is subject to a Free Trade Agreement (FTA). Also, this interim rule establishes a table of services excluded from the coverage of the various trade agreements; corrects the threshold for Canadian services; revises the list of "Least Developed Countries" (LDCs), revises how the FAR uses the terms "designated country" and "Trade Agreements Act"; and revises the FAR clauses that apply the Buy American Act and trade agreements to construction material to correct the definition of "cost of components."

DATES: The effective date of this interim rule is January 1, 2005. Comments on the interim rule must be submitted on or before February 28, 2005.

ADDRESSES: Submit comments on the interim rule, identified by "FAC 2001-27, FAR case 2004-027, to: (1) http://www.regulations.gov; (2) http://www.acqnet.gov/far/ProposedRules/proposed.htm; (3) e-mail: farcase.2004-027@gsa.gov; (4) fax: 202-501-4067; or (5) mail: General Services Administration, Regulatory Secretariat (MVA), 1800 F Street, NW, Room 4035, ATTN: Laurieann Duarte, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Cecelia Davis at 202-219-0202. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, 202-501-4755.

SUPPLEMENTAL INFORMATION: This interim rule implements the Australia Free Trade Agreement (Public Law 108-286) and the Morocco Free Trade Agreement (Public Law 108-302), by amending FAR Subpart 25.4, Trade Agreements, and the corresponding clauses at FAR 52.212-3, Offeror Representations and Certifications -- Commercial Items; FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders -- Commercial Items; FAR 52.225-3, Buy American Act -- Free Trade Agreements -- Israeli Trade Act; FAR 52.225-4, Buy American Act -- Free Trade Agreements -- Israeli Trade Act Certificate; FAR 52.225-5, Trade Agreements; FAR 52.225-6, Trade Agreements Certificate; FAR 52.225-11, Buy American Act -- Construction Materials under Trade Agreements; and FAR 52.225-12, Notice of Buy American Act Requirement -- Construction Materials under Trade Agreements. The Australian and Moroccan FTAs waive the applicability of the Buy American Act for supplies and services over $58,550 from Australia and over $175,000 from Morocco (with certain exceptions specified in paragraph (b) of FAR 25.401, Exceptions, which is revised to add a table of services that are excluded from these and the other FTAs), and construction materials over $6,725,000 from both Australia and Morocco.

In addition, this interim rule makes the following changes to the FAR related to foreign acquisitions:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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