What is Trade Agreements Act Compliance? Is Your Company TAA Compliant?
The 1979 Trade Agreements Act (TAA) was established to promote equitable and transparent international trade. According to the TAA stipulations, goods and services listed under your GSA Schedule contract should be made exclusively in the U.S. or produced in TAA-compliant countries.
As a government contractor, manufacturer, or reseller to the U.S. government, your product is deemed “U.S. made” if it is mined, produced, or manufactured within the U.S., or if it undergoes significant transformation in the U.S. resulting in a unique product distinctly different in name, character, or utility from its original form.
On the other hand, a product from a TAA-compliant country is categorized under several labels: WTO GPA country, FTA country, least developed country, or Caribbean Basin country products. Additionally, if a product has components from a different nation but is substantially altered into a distinct item of commerce, it is also recognized as a TAA compliant product.
It’s essential to note that certain noncompliant countries, such as China, India, Indonesia, Iran, Iraq, Malaysia, Pakistan, and Russia, are not TAA compliant. GSA Schedule contractors need to be vigilant about the substantial transformation concept and the origin country of each product or service on their contract. This vigilance is paramount for Dealers, Manufacturers, Government Contractors or Resellers who aren’t directly involved in the manufacturing process and might be working with potentially misleading labels or incomplete data.
Need Immediate Help?
If you have issues or concerns about whether your product is TAA compliant when selling to the US Federal Government, contact our TAA compliance lawyers at 1.866.601.5518 for immediate help. Speak to Theodore Watson.