The Trade Agreement Act (TAA) is one of the most important rules to follow when selling to the government. TAA compliant countries are a concern for many product-based companies. Selling products from a non-complaint country can cause major issues and even debarment from the government. In our previous blog below, we listed countries that are TAA compliant. Here is a list of major countries that are NOT:
- Sri Lanka
Let’s start with the basics, what does TAA compliance mean? TAA stands for Trade Agreement Act and it is applicable to all GSA Schedules. Under the terms of this act only US-made or designated country end products shall be awarded to responsible Federal Supply Schedule (FSS) contractors. Your product must comply with the TAA to be purchased under the GSA.
The TAA requires that end products from designated countries be treated the same as U.S. -made products for government procurement purposes, and prohibits the acquisition of end products from other, non-designated countries. The GSA does not grant waivers for the purchase of suppliers or services from non-designated countries.
The TAA can present significant compliance issues for GSA FSS contractors. Manufacturers or resellers with direct contracts with GSA face those issues directly, as they are subject to reviews, audits, and investigations. Government personnel monitors compliance with TAA, The Department of Justice will prosecute and/or fine known violators of TAA.
Companies that do not hold GSA schedule contracts and sell through re-sellers must also follow the TAA compliance rules. These companies need to have an understanding of the TAA because they could be asked to provide and representation or certification of TAA compliance to their re-sellers as part of their letters of supply. The Government might try to proceed against a supplier if the supplier knowingly ignored TAA compliance as to products made available for resale to the government.
FAR 52.225-5 outlines designated countries which meet TAA requirements. A few of the GSA approved countries are Germany, France, Japan, and Sweden. The full list of TAA compliant countries is listed below:
ANTIGUA AND BARBUDA
BONAIRE, SINT EUSTATIUS AND SABA
CONGO, DEMOCRATIC REPUBLIC
CENTRAL AFRICAN REPUBLIC
ST. KITTS AND NEVIS
REPUBLIC OF KOREA (SOUTH)
SAO TOME AND PRINCIPE
TRINIDAD & TOBAGO
UNITED STATES OF AMERICA
ST. VINCENT & THE GRENADINES
BRITISH VIRGIN ISLANDS