The Trade Agreements Act (TAA) is a federal law that requires the U.S. government to purchase products and services only from countries that have a trade agreement with the U.S. or from designated “domestic end products.” As a business owner, it’s important to understand the TAA and ensure your company is compliant in order to be eligible for government contracts.
Understanding TAA Requirements
In order to be TAA compliant, a company must meet certain requirements. First, the company must produce goods or services that are designated as “domestic end products.” This includes items that are grown, mined, manufactured, or produced in the U.S. or in a country with which the U.S. has a trade agreement. Additionally, a certain percentage of the total cost of the end product must be from U.S. or trade agreement country sources.
Another requirement is that companies must submit a “Certificate of Compliance” to the government agency with which they are contracting. This certificate attests that the company and its products or services meet TAA requirements.
To ensure your company is TAA compliant, start by identifying which of your products or services qualify as “domestic end products.” You can do this by looking at where the items are grown, mined, manufactured, or produced, as well as where the components of the product are sourced. You may also want to consult the Federal Acquisition Regulation (FAR) for more information on TAA compliance.
Next, review your supply chain to ensure that the required percentage of the total cost of the end product comes from U.S. or trade agreement country sources. This may involve reviewing and updating your contracts with suppliers.
Finally, be sure to submit a “Certificate of Compliance” to the government agency with which you are contracting. It is also good idea to maintain documentation that supports your company’s compliance with TAA requirements, such as invoices and purchase orders.
Being TAA compliant is an important step for businesses looking to secure government contracts. By understanding the requirements and taking steps to ensure compliance, you can increase your chances of success in the government procurement process.