What is TAA Compliance?
TAA refers to the Trade Agreement Act that was created in 1979 for the purpose of fostering fair and open international trade, and now plays an important role in deciding where the United States Government can obtain products. TAA compliance requires the U.S. Government to only acquire products that were made in the U.S. or countries that are deemed TAA compliant. More specifically, the products being sold must have been manufactured or “substantially transformed” in the U.S. or a TAA compliant country. In some instances, a product has several components and was made in multiple countries. If that is the case, at least 50% of the production must occur in a TAA compliant country, and the last country that the product was in before being imported to the U.S. must also be TAA compliant.
What Does This Mean for the GSA?
Since the GSA is a department of the government, it is extremely important GSA contract holders understand what TAA compliance is and how they can abide by the rules. To be TAA compliant, the “final products” you sell through your GSA schedule must only be made in the United States or a TAA designated country. Failure to comply with the TAA can result in large fines, compromise your organization, and also result in major security breaches.
This may sound complicated at first, but it is actually quite simple. To be sure that you are TAA Compliant and not in violation of your GSA schedule terms and conditions, stay away from non-TAA compliant countries. Covering your bases and requesting things like a Certificate of Origin from the manufacturer is a great way to stay on top of compliance.