Countries Buy American Act Requirements BAA Compliant Vs TAA Compliance Trade Agreements Act Compliance

Are you selling products to the federal government legally from Buy American Act countries or Trade Agreements Act countries. Our Lawyers Help Clients Nationwide to Minimize or Avoid Costly Mistakes, Hefty Fines, and Jail Time When Facing Trade Agreements TAA Compliant Deficiencies and Buy American Act Investigations.

Federal Law Enforcement Agencies are now Targeting Contractors for not being BAA Compliant. Many companies make dangerous mistakes and face costly penalties, jail time, and fines for BAA TAA compliance violations (including losing lucrative federal contracts in a bid protest.)

Are you a government contractor, manufacturer, or reseller? Have you been struggling to navigate the complex regulations of the Buy American Act requirements and TAA Trade Agreement Act compliance?

Our team of experienced government contract attorneys can help you avoid the costly consequences of being charged with non-compliance. We understand the intricacies of these regulations and can guide you through the process to ensure your company stays on the right side of the law.

Don’t let non-compliance charges derail your business. With our help, you can avoid costly fines and damage to your reputation. Our team is dedicated to helping you stay buy America compliant and succeed in the government contracting market.

Department of Justice Squeezes Wisconsin Architectural Firm Who Then Plead Guilty and Pay $3 Million to Resolve Criminal and Civil Claims Under Buy American Act Requirements. Avoid being in this situation. See Headlines.

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List of TAA Countries and List of Buy American Act Countries (BAA Compliant Countries)

Determining Buy American Act countries of Origin Criterion and Substantial Transformation: When selling products to the federal government via your GSA contract or otherwise the product’s country of origin assessment is very important and often goes unexplained by the contractor. When shipping products internationally, the contractor should not rely on what the reseller tells him or what the manufacturer says.

The origin criterion is critical to the outcome of a Trade Agreements Act procurement fraud case. Determining the country of origin of goods sold to the US government. If your product does NOT come entirely from a single country, the substantial transformation analysis is used to determine the origin of the good.

DFARS Trade Agreements Act Countries – What are the BAA Compliant Countries List Under FAR 25 Regulations? Are You BAA Compliant?

BAA Trade Agreements Act countries means any of the following countries:

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)”), Ukraine, or United Kingdom);

(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);

(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or

(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).

Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product. See the essential steps to becoming TAA compliant.

Designated TAA Trade Agreement Act vs BAA Compliant Countries? What are They?

What countries qualify for the Buy American Act ? The designated BAA compliant countries are ones that are:

World Trade Organization Government Procurement Agreement Countries (Australia, Germany, South Korea, Japan)
Free Trade Agreement Act Countries (like Mexico, Canada, or Singapore)
Least Developed Countries (Afghanistan, Cambodia, Samoa, Yemen, etc.)
Caribbean Basin Countries (Antigua and Barbuda, Aruba, Bahamas, Curacao and such).

TAA Trade Agreement Act compliance countries are designated countries and the United States. A current list TAA compliant countries list in FAR, part 25. Correspondingly, non TAA compliant countries are countries outside of this list, for instance, China, Russia, and North Korea.

TAA vs BAA Compliance Violations: A Cautionary Tale for Government Contractors – DOJ Makes An Example of Contractor

Recent revelations about the risks of non-compliance with the Buy American Act requirements – BAA Country list and BAA requirements have sent shockwaves through the construction and contracting industries. Wisconsin’s Novum Structures LLC, a renowned company known for its glass space frame designs often employed in roofs and atrium enclosures, found itself embroiled in a scandal that should serve as a stern warning to all government contractors.

The Department of Justice (DOJ) has spotlighted Novum’s agreement to plead guilty and pay a hefty sum of $3 million, due to the unauthorized use of overseas materials on projects funded by federal dollars. By violating provisions that implement the “Buy America” stipulations, Novum exposed itself to significant criminal and civil repercussions.

Reports suggest that Novum masked the use of non-compliant foreign materials on certain federal construction projects by repackaging goods and doctoring documentation. As a consequence, the company will admit to concealing pivotal information, incurring a substantial criminal fine of $500,000.

To further compound their financial woes, Novum consented to a $2.5 million payout to settle civil allegations brought under the False Claims Act. These claims surround Novum’s intentional use of foreign materials in violation of their contractual terms on various federal projects spanning nearly a decade.

It’s essential to understand that U.S. government-funded construction initiatives typically mandate the exclusive use of domestic resources. This includes adherence to the Buy American Act, the Federal Transit Administration’s Buy America provision, and other related statutes. Novum’s oversight pertained to contracts both for government structures and transit endeavors subsidized with federal allocations.

Concluding this cautionary episode, Novum has acquiesced to potential debarment from projects financed by federal grants.

The Imperative of BAA Compliance and Expert Legal Assistance

Such incidents highlight the perilous journey companies might face if they overlook BAA compliant countries. Federal law enforcement agencies, especially the DOJ, can not only tarnish a company’s reputation but also severely affect its financial stability. To ensure that your business doesn’t become another cautionary tale, it’s paramount to prioritize BAA compliance.

Moreover, having seasoned buy America build America requirements attorneys by your side can provide invaluable guidance, ensuring that your company navigates this complex legal terrain safely and efficiently. The potential pitfalls are immense, but with due diligence and expert advice, they are entirely avoidable.

Buy America vs Buy American Act Requirements

The terms “buy America” and “buy American” are not interchangeable. They have distinct meanings that can significantly impact your company’s operations. Buy American Act requirements. refers to the preference for domestic goods and services in government procurement contracts, while Buy America is a provision of U.S. law that applies to only federal transportation-funded contracts.

Buy American regulations require all iron, steel, and manufactured goods used in transportation procurement to be produced in the U.S. The goal of the Buy American Act is to ensure all infrastructure projects use materials that are produced domestically. It is believed to stimulate economic growth and create new employment opportunities.

While these Buy America compliant requirements may seem like bureaucratic red tape, overlooking compliance with BAA can have serious consequences for companies. The Department of Justice (DOJ

Want to know what is Buy American? Contact us today at 1866.601.5518 to schedule a consultation and start protecting your business from noncompliance civil and criminal charges.

Many federal contractors guess whether or not their products comply with BAA Country lists or TAA requirements. The DOJ is actively prosecuting small businesses are large government contractors with False Claims Act charges. When applying the rule for establishing Buy American Act countries and the Trade Agreements Act countries of origin, contractors doing business with the federal government should understand the basics of Buy American Act (BAA compliance.)

Government contractors also find themselves facing BAA Investigations by the Department of Justice (DOJ) or other federal enforcement agencies for not complying with the rules. This can be an expensive and costly experience if your company does not have the proper checklists and training in place.

Starting around January 2020, small businesses and large contractors competing for federal government contracts must make sure that their goods meet the qualifying country requirements or risk disqualification from the federal contracting bidding processes. If your company wins a federal contract, you must still be able to defend a BAA protest or government investigation that challenges compliance with the Buy American Act countries or source of origin requirements. See also new rules in 2022.

1933 Buy American Act 48 CFR part 25 – Are You BAA Compliant?

The Buy American Act, 48 CFR part 25 applies to all U.S. federal government agency purchases of goods (articles, materials, or supplies) valued over the U.S. micro-purchase threshold (currently set at US$10,000). When purchased by federal entities for public use, the qualifying countries of the BAA require that these goods be produced or manufactured in the United States To be considered as being produced in the U.S., goods must be manufactured in the U.S. and at least 50% – 55% of the cost of their components must come from the U.S.

There are exceptions to Buy American qualifying country requirements. You can still become buy America compliant if waivers are granted by the contracting officer for the public interest, or if the cost of U.S. products is unreasonable compared to equivalent foreign products.

BAA country requirements waivers could be granted if your products are not produced in the U.S. in sufficient and reasonably available commercial quantities of satisfactory quality.

Buy American Act qualifying countries requirements do not apply to Canada for U.S. federal purchases covered by the revised World Trade Organization Agreement on Government Procurement (WTO GPA), to which Canada, the U.S. and 46 other countries are Parties (see below). When bidding on U.S. federal procurements covered by these agreements, Canadian suppliers benefit from the same treatment as American suppliers

Federal regulatory and Fair Trade enforcement authorities are now targeting small and large businesses and in some cases bringing criminal charges against companies and their executives. You want to avoid this disastrous result at all costs. When you submit a bid to the government, chances are that the Buy American Compliance Clause is incorporated. The submission of the offer constitutes an agreement to supply domestic end items. In bid protest litigation, if you do not provide information for the agency to validate or indicate that you are in compliance, it will be justified not granting you the award. See an example of a GAO c ase here.

Buy American Act Compliance (2022)

Government Contracting Officers must be aware that the FAR Amendments to the Buy American Act Requirements were effective on October 25, 2022. The new rule amends FAR Parts 25 and 52 to implement section 8 of E.O. 14005, Ensuring the “Future Is Made in All of America by All of America’s Workers.” Upon the October 25, 2022, effective date, the final FAR rule changes the domestic content threshold to 60 percent immediately, then to 65 percent for items delivered starting in calendar year 2024, and then to 75 percent for items delivered starting in the calendar year 2029.

While a supplier that is awarded a contract with a period of performance that spans this schedule of domestic content threshold increases will be required to comply with each increased threshold for the items in the year of delivery, this rule allows for the contracting agency senior procurement executive to apply an alternate domestic content test under which the contractor would be required to comply with the domestic content threshold in place at the time of award for the entire life of the contract.

This final rule also creates a fallback threshold that would allow for products and construction material meeting a 55 percent domestic content threshold to qualify as ‘‘domestic’’ under certain circumstances.

In addition, the final rule creates a framework for the application of an enhanced price preference for a domestic product/domestic construction material that is considered a critical item or made up of critical components. The list of critical items and critical components, along with the associated enhanced price preference, will be incorporated in the FAR through separate rulemaking.

How Do You Become Buy American Act BAA Compliant and Avoid Criminal Liability as a Government Contractor?

The Buy American Act, or BAA, is a federal law that requires companies and organizations to purchase materials and supplies of U.S. origin whenever available. Government contractors must be compliant with the BAA in order to do business with the federal government. While non-compliance can result in significant civil and criminal penalties, compliance can be achieved with the help of experienced BAA country compliance lawyers.

When it comes to government contracts, failing to comply with the BAA can have serious consequences for businesses and organizations. Non-compliance can result in significant fines, penalties, and the potential for criminal prosecution and jail time. To avoid these risks, organizations looking to enter into a government contract should seek the guidance of experienced BAA compliance lawyers who can help ensure that all aspects of the process are done in accordance with the law.

BAA compliance lawyers can assist organizations in understanding their obligations under the law, and advise on best practices for doing business with the federal government. They can provide legal advice on how to become BAA compliant, as well as help evaluate and review contracts to ensure that all requirements are met. Additionally, they can provide resources and guidance on how to resolve any issues or disputes that may arise throughout the process.

What are the Penalties for Buy American Act Non-Compliance?

The federal government awards billions in government contracts on an annual basis worth of contracts every year. Companies that win contracts but fail to demonstrate that they are BAA compliant can face several dangerous penalties including fines, suspension and debarment, criminal penalties and liability; investigation from the Department of Justice (DOJ) and other federal law enforcement offices; termination of government contracts, and public exposure and reputation. Having a Buy American Act compliance attorney who can provide guidance for BAA compliance of your day-to-day operations can be a great benefit.

Prime contractors are still on the hook for the liability of their subcontractors and manufacturers not complying with the Buy American Act countries compliance list. This does not mean that the subcontractor is off the hook. Flow-through clauses may allow the government to still target subcontractors for Buy American violations.

Examples of cases where companies violated the BAA compliant countries or origin list include a military supplier who ended up paying $850,000 to settle breach of contract and False Claims Act allegations in New Jersey. In that case, a vehicle parts supplier was found selling items that were manufactured in prohibited Buy American Act countries.

Buy American BAA Certification

Government contractors often need to obtain BAA certification in order to comply with the Buy American Act (BAA) and ensure that their products are manufactured in the United States. This certification form is issued by the U.S. government and requires contractors to provide a statement about their manufacturing processes and supply chains to then certify that the products meet the Buy American Act requirements.

In order to obtain BAA certification, contractors must actually certify the form and be subject to laws for improper certification. Once certified, contractors can proudly display their BAA certification and compete for government contracts with confidence.

Some contracts, such as those for the acquisition of supplies, require a Buy American certificate. The certificate is an attestation that each end product, barring those listed in the BAA certificate, is a product of the U.S. Non-domestically sourced end products are listed on the certificate along with their country of origin. These claims should be supported by due diligence into the origin of supplied goods and are legally binding.

Construction contracts are not required to submit a BAA certificate, however, contractors are obligated to submit a waiver at the time of offer submission. They must provide sufficient data for the government to evaluate their submission. Agencies are empowered to challenge a contractor’s submission when they have reason to believe the source of end products has been misrepresented.

More Scrutiny for Buy American Act Requirements

Initially signed in 1933, the Buy American Act applies to articles, materials, and supplies made for public use. An earlier executive order issued in 2017 required all agencies to assess their compliance with the Buy American Act requirements and related legislation. While the order did not change the law, it signaled a shift toward greater scrutiny and enforcement of existing sourcing regulations and policy.

In past iterations of the act, allegations of non-compliance generally came from competing businesses or whistleblowers; however, the government also monitors activity. This means businesses that win contracts should be prepared to prove the country of origin of their products.

Buy American Act Vs Buy America (BAA vs TAA Trade Agreements Act)

BAA vs TAA: Numerous pieces of legislation place requirements on companies to source domestically or from allies. The Federal Trade Agreements Act is looked at differently than the BAA (TAA) in that it prohibits the government from procuring end products from non-designated countries but allows the government to purchase products from other “BAA designated countries.”

Under the Trade Agreements Act, the US President is authorized to waive domestic sourcing requirements including the BAA, to purchase eligible products from BAA TAA compliance countries that have signed International Trade Agreements like the World Trade Organization Government Procurement Agreement (WTO GPA), NAFTA, Caribbean Basin Initiative, or others with the United States. The Act for the most part applies to federal government procurements that exceed the simplified acquisition threshold.

Buy American

The Buy American Act applies when contractors, prime and subcontractors, and manufacturers or working on federal and public projects – mainly construction, One of the main differences in the Buy American statutes if the end products are considered domestic when they are 100% manufactured in the United States and with at least the minimum percentage of domestic content.

Buy America

The Buy America Act generally applies to mass-transit procurements in state and local projects. This includes highway construction, railways, and metro rapid transit systems. Build American Buy America statute is regulated by the Federal Transit Administration (FTA)and the Federal Highway Administration (FHWA).

FHWA was formed in 1967 to oversee federal funding used for construction and the maintenance of National Highway Systems. Under the Buy America Act, end products must be 100% manufactured in the United States and all steel and iron components MUST be mined, melted, and manufactured in the United States. However, there is one important exception; foreign-sourced materials may be allowed if they are valued at $2,500 or 0.1% (whichever is greater) of the contract value. This is referred to as the minimal use amount.

The Buy American Act vs Buy America regulations are two key pieces of legislation in the United States with significant differences that everyone should be aware of. The Buy American Act of 1933 required the federal government to purchase domestic construction materials, and although it only applies to direct government purchases, it created a national preference for domestic materials used for public construction.

See More on Buy American Act Frequently Asked Questions (FAQs)

Trade Agreements Act – Are You TAA Compliant?

The TAA Trade Agreement Act regulation generally applies to federal procurement for goods and services at or above $204,000, or construction projects equal to or above $7,864,000. The TAA does not apply to federal acquisitions that are small business set-asides, federal acquisitions of arms, ammunition, or war materials, or purchases indispensable for national security or for national defense purposes; (3) the government’s purchase of end products for resale; (4) federal acquisitions from Federal Prison Industries, Inc., or Nonprofit Agencies Employing People Who Are Blind or Severely Disabled; (5) other government acquisitions not using full and open competition; and (6) certain services listed in FAR 25.401(b).

If the Trade Agreements Act rules do not apply, then the Buy American Act applies.

What Does TAA Compliant Country Mean?

Trade Agreements Act countries meaning under federal GSA contracting rules means that your “final products” sold on your GSA schedule can only be produced in China, India, Indonesia, Iran, Iraq, Malaysia, Russia, Pakistan, and South Asia – to mention a few.

Articles that are entirely the creation, output, or manufacture of the United States or a designated country, or Articles that are “substantially transformed” into a new or distinct article of commerce in the United States or a designated country with a name, character, or use that differs from the original article or articles.

What is meant by “significantly altered” is frequently a topic of discussion. The GSA defines “significantly transformed” as a product that has undergone significant name, character, or usage change to constitute a new and different commerce article. For certain contractors, the term can still be challenging. We advise consulting your consultant or looking up FAR 52.225-5 on Trade Agreements if you have any doubts about whether your items pass the BAA/TAA compliance review. Naturally, we are always available to assist with any inquiries you may have regarding TAA.

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What Does a “TAA Compliant Product” Mean? When applying TAA rules, if your product comes from a designated country, it is considered “TAA compliant”. If you meet this requirement, then you are authorized to sell your product via your GSA contract. You, as the contractor, are liable if your product is not TAA compliant. Your products must be made in the U.S. or a designated country. You should have a QA program in place to check your products for TAA compliance.

Your goods or services sold to the United States is TAA compliant if manufactured or substantially transformed in the United States or manufactured in a TAA-designated country. Trade Agreements Act countries include those in the United States that have specific trade agreements in place and statutorily regard those designated TAA compliance countries as reliable or acceptable procurement sources.

“Substantially transformed” is dealt with on a case-by-case basis. Courts have realized that no one case can be a broad brush for every situation that arises. When your business has a unique process in place before selling to the US government, you may want to invest in experienced BAA and TAA lawyers to assess whether you are BAA or TAA compliant.

To be TAA compliant, all of your products must qualify as U.S.-made or designated country-end products. TAA generally does not allow non-TAA-compliant products to be purchased if compliant products are offered.

To comply with the “U.S.-made or designated country end product rule”, the product must be manufactured in the United States or the designated country, or the product must be substantially transformed in the United States or the designated country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. To be BAA TAA compliant, the Country of origin is the country in which the end product was last “substantially transformed.” This is somewhat different from than application of the BAA, the “substantial transformation” test. TAA compliance does not depend upon the relative value of the components. Be aware that simply because your product is TAA compliant, it does not automatically mean that the product is BAA compliant.

Do You Always Have to Meet TAA Compliance Rules? Can CO Issue a Waiver Under Fair Trade Agreements Act Rules?

Government contracting officers have wide discretion to waive TAA compliance requirements for the Buy American Act qualifying countries’ laws and Buy American Act country of origin requirements under FAR 25 if he or she determines that the price of the lowest-priced domestic offer is unreasonable, or if there is another exception under Fair Trade and TAA rules. See more information contained in DFARS 251.225-7001.

Certain end products and construction materials from other countries can receive a nondiscriminatory evaluation when there are domestic offers.

For Buy American Act requirements compliance, the acquisition’s dollar value drives which trade agreement applies.

There are various tests when finalizing a decision as to whether there is a violation of the Buy American Act countries list rule or Fair Trade compliance regulations.

Develop sound internal compliance policies
Avoid liability for subcontractors and suppliers

The US government wants to know where all products are made. With the recent change in government and the continuing goal to make products in America, companies should be aware of the BAA compliance requirements, Trade America Act penalties, and liability for not properly identifying approved Buy American Act BAA compliant countries of origin. See Consequences of Procurement Fraud Schemes & Avoiding Criminal Liability.

In 2005, three major suppliers of office products settled violation claims in the amount of $22 million.
Companies find themselves in trouble mostly because they have no internal policies and controls to make sure that the business is not violating the rules and making sure that subcontractors and suppliers also follow the regulations.

How to Be Trade Agreements Act BAA Compliant and Avoid Criminal Liability as a Government Contractor?

As a government contractor, you must ensure that you are Trade Agreements Act (TAA) compliant to avoid criminal liability. The TAA requires federal contractors and subcontractors to purchase goods or services from Trade Agreements Act countries designated as having reciprocal trade agreements with the United States. Failing to comply with this requirement can lead to criminal penalties, including imprisonment and fines.

Fortunately, there are TAA compliance lawyers who can help you understand the complexities of the TAA and ensure that you remain compliant with the law. These lawyers can help you review your agreements to ensure they include all necessary language to comply with TAA regulations, as well as assist in creating new contracts so that they are compliant. Additionally, they can help you understand the implications of different countries’ trade agreements with the United States in order to ensure that you purchase goods or services from a country that is acceptable under TAA regulations.

By working with experienced TAA compliance attorneys, government contractors can feel confident that their contracts are compliant and avoid criminal liability for non-compliance. These lawyers can help you ensure that all TAA requirements are met and your contracts remain in accordance with the law.

Ultimately, being TAA compliant is essential for any government contractor to avoid criminal liability. With the assistance of experienced TAA compliance lawyers, contractors can rest assured knowing their contracts are in line with the law.

Buy American Country China and BAA Restrictions

Under 10 USC 2533 DOD cannot procure “sensitive materials” from four specific countries: the Democratic People’s Republic of Korea, the People’s Republic of China, the Russian Federation, or the Islamic Republic of Iran. Covered materials include samarium-cobalt magnets; neodymium-iron-boron magnets; tungsten metal powder; tungsten heavy alloy or any finished or semi-finished component containing tungsten heavy alloy; and. tantalum metals and alloys.

Under these sourcing prohibitions, DOD generally may not directly acquire sensitive materials mined, refined, separated, or melted in the four specified countries, or military platforms or weapon systems containing sensitive materials melted or produced in the four specified Buy American Act BAA countries. The prohibitions apply to aircraft; missile and space systems; ships; tank and automotive items; weapon systems; and ammunition. Limited exceptions are specified. See also Nuances of North American Fair Trade Agreements Act (NAFTA)

News Break U.S. Defense Contractor and Employees Sentenced for Procurement Fraud Scheme

On August 18,2021 a Hampton-based U.S. defense contractor, its owner, and four of the company’s employees were sentenced to 58 months of jail time, and his four employees were sentenced to a combined 93 months years in prison. The allegations include Buy American Act violations by engaging in an extensive procurement fraud scheme involving more than $7 million in government contracts targeting the U.S. Department of Defense and other federal government agencies. See DOJ article here.

The government attorneys found that the defendants acted in a conspiracy to defraud the U.S. and commit other substantive offenses by fraudulently importing goods into the country that were made in China in violation of the terms of the federal contracts and Buy American Act FAR Clauses. See information and tips about False Claims Act defenses for federal contractors charged with Buy American Act violations.

The contractor falsely relabeled these goods as if they were made in the U.S. The owner and his employees also acted through a separate nominee company to conceal the importing of goods from China and installed a nominee officer of I-Tek in order to be able to fraudulently qualify for contracts set aside for service-disabled veterans. The conspirators also submitted false documents and further falsely classified the value of the goods imported into the U.S. to avoid higher duties and taxes.

If you are in a situation like this call our attorneys immediately
We can help from the investigation stage all the way through the trial if necessary.

Is Your Company BAA Compliant?

TAA compliant countries under FAR 25, and other Fair Trade Agreements Act regulations (Trade America Act), the Act limits the purchase of supplies that are non-domestic end products that will be used in the United States. This is very important when selling products to the government under a GSA Schedule. Contractors should also be aware of countries of origin that may impact the outcomes of cases alleging violations of the Act. This is but one reason to have internal policies and controls to become BAA compliant.

Under other government contracting rules, knowing the various TAA compliance countries of origin when purchasing supplies and end products for sale to the federal government. See information about COTS CONTRACTS. Whether you are selling construction materials or IT products under the Trade Agreement Act, becoming BAA compliant is essential when doing business with the federal government. Companies are now being subject to federal investigations and allegations of BAA non-compliance which leads to False Claims Act violations. Get more information about Buy American Act compliance items such as end products and meeting the 50% or 55% rule.

To establish TAA compliance, courts look at the Act’s list of qualifying Trade Agreements Act countries of origin under the “substantial transformation” test. For purposes of reporting, government contractors should look at whether the manufacturing of end product is made in the USA or overseas, without looking at the origin of the components. This is especially true for Buy American Act construction materials and IT products. Learn about dealing with Buy American Act disputes in a bid protest.

Are You Involved in a Qui Tam Buy American Act Case or BAA Criminal Investigation?

When the government targets a company that results from a qui tam case or the agency initiates a criminal investigation for BAA compliance issues, this is a serious matter that can involve both jail time and hefty civil fines. Our government contract lawyers can help by working with defense attorneys on your team.