What are TAA Compliant countries and BAA compliance list of designated countriesThe Trade Agreements Act (TAA) applies to GSA Schedule Contracts, requiring that all products listed on the contract be manufactured or “substantially transformed” in either the United States or a TAA-compliant “designated country”.

The designated TAA compliant countries encompass:

1. Countries under the World Trade Organization Government Procurement Agreement.
2. Free Trade Agreement Countries.
3. Least Developed Countries.
4. Caribbean Basin Countries.

This ensures that products listed on GSA Schedule Contracts adhere to TAA requirements, promoting fair trade practices and supporting eligible countries’ economies.

Please note that TAA compliance is a critical factor for businesses participating in GSA Schedule Contracts, as failure to comply with TAA regulations may result in penalties and potential contract termination. It is crucial for businesses to carefully assess their products’ manufacturing or transformation processes and ensure alignment with TAA requirements guidelines.

At Watson & Associates, LLC, we understand the intricacies of Trade Agreements Act compliance and GSA Schedule Contracts. Our team of experts can provide guidance and assistance to assess your products’ eligibility for inclusion on the GSA Schedule Contract, ensuring compliance with TAA countries compliance regulations.

Navigating TAA requirements and GSA Schedule Contracts can be complex, but with our knowledge and experience, we can help streamline the process and ensure your business meets all necessary criteria. Contact us today to consult with our team and explore how we can support your TAA compliance and GSA Schedule Contract needs.

Trade Agreements Act (TAA) compliance is crucial for federal US contracts to avoid the stiff civil and criminal penalties associated with falsely or mistakenly certifying non-compliance. Manufacturers, resellers, and prime government contractors must accurately determine Trade Agreements Act countries and adhere to the necessary requirements.

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At Watson & Associates, LLC our government contract lawyers understand the complexities involved in TAA compliance. Our team of experienced Trade Agreements Act compliance attorneys specializes in assisting businesses in assessing the TAA compliance of their products. With their expertise, they can guide you through the process of identifying TAA compliant countries and ensuring your products meet all the necessary standards. See How to Become TAA Compliant and Avoid Criminal Liability

List of TAA Countries List for Government Contracts

The Trade Agreements Act outlines the criteria that countries must meet to be considered TAA compliant countries. While an exhaustive list cannot be provided here, we have compiled a comprehensive inventory and list of TAA compliance countries under FAR. 52.225-5 , including:

TAA Designated country 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, 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.

End product means those articles, materials, and supplies to be acquired under the contract for public use.

Free Trade Agreement country end product means an article that-

(1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in an FTA 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. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

By referring to this list, you can identify countries that meet TAA compliance requirements, enabling you to confidently participate in federal US contracts. It is important to note that compliance goes beyond the TAA designated country of origin, encompassing factors such as component sourcing and manufacturing processes.

To avoid the risks associated with non-compliance, our dedicated Trade Agreements Act compliance attorney can help manufacturers, resellers, and prime government contractors thoroughly assess their products. They will meticulously examine various factors, including material sourcing and manufacturing procedures, providing comprehensive guidance to meet TAA compliance standards.

Navigating Trade Agreements Act compliance can be complex, but with our legal expertise, you can mitigate the potential consequences of inaccurately certifying TAA compliance. Do not underestimate the importance of accurate certification.

Contractors and Manufacturers are Responsible for Verifying any Updates or Corrections in FAR. 52.225-5

NON TAA Compliant Countries

Countries 

TAA Non compliant countries include:

  • Brazil
  • China
  • India
  • Indonesia
  • Iran
  • Iraq
  • Malaysia
  • Pakistan
  • Russia
  • Sri Lanka
  • Vietnam

What happens if you sell to the government from Non TAA countries?

The consequences of selling to the government as a government contractor from non TAA compliant countries are severe. Suppose your company is found to be in violation of the Trade Agreements Act. In that case, you can face significant fines and penalties, including suspension and debarment, TAA False Claims Act and criminal liability including prison time. 

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Contact us today online or call our Trade Agreements Act compliance lawyers if you are  pharmaceutical company facilities, manufacturers of medical equipment, IT equipment needing help getting TAA compliant. Call us at 1.866.601.5518 to schedule a consultation and take proactive steps to ensure your products are TAA/BAA compliant with all necessary requirements and regulations.