TAA compliance

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WE TAKE COMPLEXITY OUT OF GSA COMPLIANCE

It should be no surprise that doing business with the United States Government presents unique challenges. The requirements can be daunting and rules are complex. It only takes one error to suddenly find yourself ineligible to conduct business with the government.

It is important to have a plan for maintaining compliance. Being proactive will help avoid potential complications like:

  • GSA Contract Suspension;
  • Termination of contract;
  • Fines and attorney’s fees;
  • Jeopardizing contract renewal.

All of which means loss of valuable time, opportunity, and revenue.

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Call 201.567.6646 or provide your details for a free consultation:

    And one of the most complicated eligibility issues companies have to deal with is Trade Agreements Act (TAA) Compliance.

    TAA compliance rules

    Many companies struggle with remaining compliant with the Trade Agreements Act (TAA). It requires that companies only sell products manufactured or “substantially transformed” in the United States or that are made in TAA designated countries, including nations that currently have free trade agreements with the USA. Of course, the current political environment means that TAA designation, the list of GSA compliant countries, and a product’s country of origin are constantly changing. Which in turn means that even if your product fulfills TAA compliance rules at 100% today, tomorrow the political weather changes, and one or more of your products now fails to meet TAA requirements. And your GSA contract is suddenly at risk. We can help you stay on top of it, and help you keep your contract TAA compliant all the way through its term.

    Another critical component is the AbilityOne “Essentially The Same” (ETS) compliance requirement. ETS compliance means that federal agencies must source products from the AbilityOne manufacturers instead of the same item manufactured by large Original Equipment Manufacturers (OEM).

    This legislation was designed to create employment for people with disabilities by making AbilityOne products mandatory while their OEM counterparts are made non-compliant. ETS products must be removed from contracts and no longer be sold to the government. This is done to promote these products, and to help AbilityOne manufactures and the program as a whole. It is critical for GSA Contractors to be ETS-compliant, even if they don’t do sell AbilityOne as the sale of ETS products is prohibited for all contractors and may cause contract violation.

    Compliance with United States government regulations can be complex. Maintaining TAA compliance or ETS compliance can be a significant drain on human resources, costing you valuable time that could be spent on growing your business. Leave compliance issues to Price Reporter while you and your team focus on sales and business development.

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      Frequently Asked Questions
      What is TAA compliance?

      For a company, being TAA compliant means that the vendor only sells to the government those end products that originate from either the U.S. or certain designated countries only. The term “TAA compliance” refers to the Trade Agreements Act (19 U.S.C. & 2501-2581). 

      Which countries are not TAA compliant?

      There are not too many of them, actually. The full list of non-TAA compliant countries includes:

      • China
      • India
      • Indonesia
      • Iran
      • Iraq
      • Malaysia
      • Pakistan
      • Russia
      • Sri Lanka
      How do you know if a product is TAA compliant?

      By definition (see FAR 52.225-5), a TAA compliant product is a product that originates from the U.S. or from one of the designated countries, or was substantially transformed in the U.S. or in one of the designated countries. The term “substantially transformed” means that the minimum of 50% of the end product’s manufacturing cost comes from the U.S. or a designated country. 

      Notice the “end product”. This means that parts, units or components of your product may not on their own be TAA compliant , but as long as at least half of the overall manufacturing cost (i.e. other parts, assembly, modification, programming etc.) of the end product originates from either the U.S. or a designated country, the end product would be deemed TAA compliant.

      Does software need to be TAA compliant?

      If a product is completely manufactured in the United States or in a TAA designated country, you are TAA compliant. Software country of origin is determined in the country where the software was compiled.

      What is TAA certified?

      When someone says “TAA certified” in the context of GSA contracting, it basically means the same as “TAA compliant”.

      Does software need to be TAA compliant?

      Yes. A software product is TAA compliant if it was compiled in the U.S. or a designated country.