Overview
This section outlines the waiver of Buy American statute restrictions for civil aircraft and related components sourced from specific countries that are signatories to the Agreement on Trade in Civil Aircraft.
Key Rules
- Waiver Authority: Under Section 303 of the Trade Agreements Act, the U.S. Trade Representative has waived Buy American requirements for eligible products.
- Product Scope: The waiver applies specifically to civil aircraft and related articles.
- Substantial Transformation: To qualify, the products must meet the "substantial transformation test" as defined by the Trade Agreements Act.
- Eligible Countries: The waiver applies only to products from designated signatory countries, which include members of the European Union, Canada, Japan, Norway, Switzerland, and several others listed in the regulation.
Practical Implications
- Government agencies can procure civil aircraft and parts from the listed signatory countries without applying the price penalties or sourcing restrictions typically required by the Buy American statute.
- Contractors must certify that the items provided have undergone substantial transformation within a signatory country to benefit from this trade agreement exception.