Trade Agreement Act (TAA) Designated Countries For GSA Contractors

In order to a hold a Trade Agreements Act (TAA) Compliant GSA Multiple Award Schedule (MAS) contract, you must agree that each “final product” that you sell has been “substantially transformed” in the U.S. or in a signatory country, designated by the TAA, throughout the entirety of your contract term. In order to be TAA compliant, Customs and Border Protection (CBP) considers either that 50% of the cost of manufacture or location where product is “substantially transformed” is from/within a TAA Designated Country. If a product is manufactured in various countries, the final product must be “substantially transformed” in a designated country. Substantial transformation would be transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original article.