UPDATE:
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:
- China
- India
- Indonesia
- Iran
- Iraq
- Malaysia
- Pakistan
- Russia
- Sri Lanka
- Thailand
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:
Country Name
AFGHANISTAN
ANTIGUA AND BARBUDA
ARMENIA
ANGOLOA
AUSTRIA
AUSTRALIA
ARUBA
BARBADOS
BANGLADESH
BELGIUM
BURKINA FASO
BULGARIA
BAHRAIN
BURUNDI
BENIN
BAHAMAS
BHUTAN
BONAIRE, SINT EUSTATIUS AND SABA
BELIZE
CANADA
CONGO, DEMOCRATIC REPUBLIC
CENTRAL AFRICAN REPUBLIC
SWITZERLAND
CHILE
COLOMBIA
COSTA RICA
CURACAO
CYPRUS
CZECH REPUBLIC
GERMANY
DJIBOUTI
DENMARK
DOMINICA
DOMINICAN REPUBLIC
ESTONIA
ERITREA
SPAIN
ETHIOPIA
FINLAND
FRANCE
UNITED KINGDOM
GRENADA
GAMBIA
GUINEA
EQUATORIAL GUINEA
GREECE
GUATEMALA
GUINEA BISSAU
GUYANA
HONG KONG
HONDURAS
CROATIA
HAITI
HUNGARY
IRELAND
ISRAEL
ICELAND
ITALY
JAMAICA
JAPAN
CAMBODIA
KIRIBATI
COMOROS
ST. KITTS AND NEVIS
REPUBLIC OF KOREA (SOUTH)
LAOS
ST. LUCIA
LIECHTENSTEIN
LIBERIA
LESOTHO
LITHUANIA
LUXEMBOURG
LATVIA
MOROCCO
MONTENEGRO
MADAGASCAR
MALI
MAURITANIA
MONTSERRAT
MALTA
MALDIVES
MALAWI
MEXICO
MOZAMBIQUE
MOLDOVA
NIGER
NICARAGUA
NETHERLANDS
NORWAY
NEPAL
NEW ZEALAND
OMAN
PANAMA
PERU
POLAND
PORTUGAL
ROMANIA
RWANDA
SOLOMON ISLANDS
SWEDEN
SINGAPORE
SLOVENIA
SLOVAK REPUBLIC
SIERRA LOENE
SENEGAL
SOMALI
SOUTH SUDAN
SAO TOME AND PRINCIPE
EL SALVADOR
SINT MAARTEN
CHAD
TOGO
EAST TIMOR
TRINIDAD & TOBAGO
TUVALU
TAIWAN
TANZANIA U.R.
UGANDA
UKRAINE
UNITED STATES OF AMERICA
ST. VINCENT & THE GRENADINES
BRITISH VIRGIN ISLANDS
VANUATU
WESTERN SOMOA
YEMEN
ZAMBIA
