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   <concept id="DFARS_252.225-7036"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.225-7036</ph> Buy American—Free
Trade Agreements—Balance of Payments Program.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p id="LGCvcT" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">Basic</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                  base="DFARS-225.1101"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">225.1101</xref> (10)(i) and (10)(i)(A),
use the following clause:</p>
         <p id="fUmpwn" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE
OF PAYMENTS PROGRAM—BASIC (MAR 2022)</p>
         <p id="mFBpLk" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As
used in this clause—</p>
         <p id="PVNMqU" class="- topic/p ">“Bahrainian end product” means an article that—</p>
         <p id="OoUXnF" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Bahrain; or</p>
         <p id="jkpuDg" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in Bahrain into a new and different
article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
         <p id="LQWWNQ" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
         <p id="ZNfFXT" outputclass="List3" class="- topic/p ">(i) Means any item of supply
(including construction material) that is—</p>
         <p id="YkKhYZ" outputclass="List4" class="- topic/p ">(A) A commercial item (as
defined in paragraph (1) of the definition of “commercial item”
in section 2.101 of the Federal Acquisition Regulation);</p>
         <p id="ZhDTJT" outputclass="List4" class="- topic/p ">(B) Sold in substantial quantities
in the commercial marketplace; and</p>
         <p id="gfgpmN" outputclass="List4" class="- topic/p ">(C) Offered to the Government,
under a contract or subcontract at any tier, without modification,
in the same form in which it is sold in the commercial marketplace;
and</p>
         <p id="uWMvjw" outputclass="List3" class="- topic/p ">(ii) Does not include bulk
cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products
and petroleum products.</p>
         <p id="rwKcMx" class="- topic/p ">“Component” means an article, material, or supply
incorporated directly into an end product.</p>
         <p id="lJgdnU" class="- topic/p ">“Domestic end product” means—</p>
         <p id="tTkwMq" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
         <p id="tZEuPe" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
         <p id="QWJWGN" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
country components and its components that are mined, produced,
or manufactured in the United States exceeds 50 percent of the cost
of all its components. The cost of components includes transportation
costs to the place of incorporation into the end product and U.S.
duty (whether or not a duty-free entry certificate is issued). Scrap
generated, collected, and prepared for processing in the United
States is considered domestic. A component is considered to have
been mined, produced, or manufactured in the United States (regardless
of its source in fact) if the end product in which it is incorporated
is manufactured in the United States and the component is of a class
or kind for which the Government has determined that—</p>
         <p id="HTiiJs" outputclass="List6" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
         <p id="JJutGI" outputclass="List6" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
         <p id="lzOCye" outputclass="List4" class="- topic/p ">(B) The end product is a
COTS item.</p>
         <p id="swdhPY" class="- topic/p ">“End product” means those articles, materials,
and supplies to be acquired under this contract for public use.</p>
         <p id="vPDnRa" class="- topic/p ">“Foreign end product” means an end product other
than a domestic end product.</p>
         <p id="aJmovB" class="- topic/p ">“Free Trade Agreement country” means Australia,
Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;</p>
         <p id="efNIWK" class="- topic/p ">“Free Trade Agreement country end product” means
an article that—</p>
         <p id="PYybaN" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
         <p id="PGTdGY" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
         <p id="TjKLZw" class="- topic/p ">“Moroccan end product” means an article that—</p>
         <p id="IcAxTW" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Morocco; or</p>
         <p id="vdEcZb" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in Morocco into a new and different
article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
         <p id="MRBqvN" class="- topic/p ">“Panamanian end product” means an article that—</p>
         <p id="BbmVHd" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Panama; or</p>
         <p id="bVbaaH" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in Panama into a new and different
article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
         <p id="JjQJrz" class="- topic/p ">“Peruvian end product” means an article that—</p>
         <p id="oMAIRm" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Peru; or</p>
         <p id="itHGfd" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in Peru into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
         <p id="MHqxBt" class="- topic/p ">“Qualifying country” means a country with a reciprocal
defense procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove barriers
to purchases of supplies produced in the other country or services
performed by sources of the other country, and the memorandum or
agreement complies, where applicable, with the requirements of section
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
2457. Accordingly, the following are qualifying countries:</p>
         <p id="dYgVYT" class="- topic/p ">Australia</p>
         <p id="GApKDu" class="- topic/p ">Austria</p>
         <p id="EwTqis" class="- topic/p ">Belgium</p>
         <p id="SIpvwc" class="- topic/p ">Canada</p>
         <p id="XbbFKT" class="- topic/p ">Czech Republic</p>
         <p id="EsmVQE" class="- topic/p ">Denmark</p>
         <p id="eCZjsA" class="- topic/p ">Egypt</p>
         <p id="TusvYB" class="- topic/p ">Estonia</p>
         <p id="KBjJbX" class="- topic/p ">Finland</p>
         <p id="RkXsyV" class="- topic/p ">France</p>
         <p id="GldYOw" class="- topic/p ">Germany</p>
         <p id="pkjcfS" class="- topic/p ">Greece</p>
         <p id="uFWXmQ" class="- topic/p ">Israel</p>
         <p id="UFoZcb" class="- topic/p ">Italy</p>
         <p id="IENKHV" class="- topic/p ">Japan</p>
         <p id="UibblL" class="- topic/p ">Latvia</p>
         <p id="r38df5cz" class="- topic/p ">
            Lithuania
         </p>
         <p id="lYQERZ" class="- topic/p ">Luxembourg</p>
         <p id="PrVQAP" class="- topic/p ">Netherlands</p>
         <p id="UyeefB" class="- topic/p ">Norway</p>
         <p id="agyGBj" class="- topic/p ">Poland</p>
         <p id="EFTutN" class="- topic/p ">Portugal</p>
         <p id="foyjPD" class="- topic/p ">Slovenia</p>
         <p id="GLsCiW" class="- topic/p ">Spain</p>
         <p id="cABavF" class="- topic/p ">Sweden</p>
         <p id="QJimLG" class="- topic/p ">Switzerland</p>
         <p id="isfXiZ" class="- topic/p ">Turkey</p>
         <p id="ljBgbP" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
         <p id="hGmPBE" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
         <p id="PWnNOM" class="- topic/p ">“Qualifying country end product” means—</p>
         <p id="SQPnQC" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product mined or produced in a qualifying country; or</p>
         <p id="cBHhST" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in a qualifying country if—</p>
         <p id="zutEMM" outputclass="List4" class="- topic/p ">(A) The cost of the following
types of components exceeds 50 percent of the cost of all its components:</p>
         <p id="XxzaqQ" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Components mined,
produced, or manufactured in a qualifying country.</p>
         <p id="qyxEID" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Components mined,
produced, or manufactured in the United States.</p>
         <p id="OkGokK" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Components of
foreign origin of a class or kind for which the Government has determined
that sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured
in the United States; or</p>
         <p id="WEsrJK" outputclass="List4" class="- topic/p ">(B) The end product is a
COTS item.</p>
         <p id="mBFbTW" class="- topic/p ">“United States” means the 50 States, the District
of Columbia, and outlying areas.</p>
         <p id="tdcEEU" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
         <p id="iheVOT" outputclass="List1" class="- topic/p ">(c) The Contractor shall
deliver under this contract only domestic end products unless, in
its offer, it specified delivery of qualifying country end products,
Free Trade Agreement country end products other than Bahrainian
end products, Moroccan end products, Panamanian end products, or
Peruvian end products, or other foreign end products in the Buy
American—Free Trade Agreements—Balance of Payments Program Certificate—Basic
provision of the solicitation. If the Contractor certified in its
offer that it will deliver a qualifying country end product or a
Free Trade Agreement country end product other than a Bahrainian
end product, a Moroccan end product, a Panamanian end product, or
a Peruvian end product, the Contractor shall deliver a qualifying
country end product, a Free Trade Agreement country end product
other than a Bahrainian end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, or, at the Contractor’s
option, a domestic end product.</p>
         <p id="bShVpD" outputclass="List1" class="- topic/p ">(d) The contract price does
not include duty for end products or components for which the Contractor
will claim duty-free entry.</p>
         <p id="ICDXCU" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
         <section outputclass="Alternate" class="- topic/section ">
            <p id="UknVOU" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
I</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(B), use the following clause, which adds “Canadian end
product” to paragraph (a), and uses a different paragraph (c) than
the basic clause:</p>
            <p id="AkTCUE" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE
OF PAYMENTS PROGRAM—ALTERNATE I (MAR 2022)</p>
            <p id="zAqKzN" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="kLyAjy" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="MWtepc" outputclass="List3" class="- topic/p ">(i) Is wholly the
growth, product, or manufacture of Bahrain; or</p>
            <p id="xnZfqy" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Bahrain into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="EZltKt" class="- topic/p ">“Canadian end
product” means an article that—</p>
            <p id="WAdlZS" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Canada; or</p>
            <p id="jXMqho" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Canada
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="MHpsBj" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
            <p id="MdSvkB" outputclass="List3" class="- topic/p ">(i) Means any item of supply
(including construction material) that is—</p>
            <p id="dloRwa" outputclass="List4" class="- topic/p ">(A) A commercial item (as defined in paragraph
(1) of the definition of “commercial item” in section 2.101 of the Federal
Acquisition Regulation);</p>
            <p id="NNHIPr" outputclass="List4" class="- topic/p ">(B)
Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="sywGRc" outputclass="List4" class="- topic/p ">(C) Offered to the Government,
under a contract or subcontract at any tier, without modification,
in the same form in which it is sold in the commercial marketplace;
and</p>
            <p id="TjbYnq" outputclass="List3" class="- topic/p ">(ii) Does not include
bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
products and petroleum products.</p>
            <p id="rwhnlI" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="vmySzX" class="- topic/p ">“Domestic end product” means—</p>
            <p id="ZIEFJU" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
            <p id="AkWXcj" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="dhBDIH" outputclass="List4" class="- topic/p ">(A)
The cost of its qualifying country components and its components
that are mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. The cost of components
includes transportation costs to the place of incorporation into
the end product and U.S. duty (whether or not a duty-free entry certificate
is issued). Scrap generated, collected, and prepared for processing
in the United States is considered domestic. A component is considered
to have been mined, produced, or manufactured in the United States
(regardless of its source in fact) if the end product in which it
is incorporated is manufactured in the United States and the component
is of a class or kind for which the Government has determined that—</p>
            <p id="NhqFYM" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="GzhurX" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="nKchWc" outputclass="List4" class="- topic/p ">(B) The end
product is a COTS item.</p>
            <p id="clFRMh" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="sOpzvH" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="LAHlTY" class="- topic/p ">“Free Trade Agreement country” means Australia,
Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;</p>
            <p id="ZHTTfv" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="ijlrBp" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="opgJvh" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="HpzTGf" class="- topic/p ">“Moroccan end product” means an article that—</p>
            <p id="UAcgCJ" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Morocco; or</p>
            <p id="ZJWvBm" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Morocco into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="GsZgrq" class="- topic/p ">“Panamanian
end product” means an article that—</p>
            <p id="ijnDPw" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Panama; or</p>
            <p id="TReWQi" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Panama
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="IYxjrF" class="- topic/p ">“Peruvian end product” means an article that—</p>
            <p id="VNDbdo" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Peru; or</p>
            <p id="FAoZAu" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Peru into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="POMlMz" class="- topic/p ">“Qualifying
country” means a country with a reciprocal defense procurement memorandum
of understanding or international agreement with the United States
in which both countries agree to remove barriers to purchases of
supplies produced in the other country or services performed by
sources of the other country, and the memorandum or agreement complies,
where applicable, with the requirements of section 36 of the Arms
Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the
following are qualifying countries:</p>
            <p id="fJGsta" class="- topic/p ">Australia</p>
            <p id="gImcZj" class="- topic/p ">Austria</p>
            <p id="BYspDS" class="- topic/p ">Belgium</p>
            <p id="AQtvnx" class="- topic/p ">Canada</p>
            <p id="ekiIoc" class="- topic/p ">Czech Republic</p>
            <p id="fduYWA" class="- topic/p ">Denmark</p>
            <p id="NaQZUR" class="- topic/p ">Egypt</p>
            <p id="vBNXuW" class="- topic/p ">Estonia</p>
            <p id="pKIXAi" class="- topic/p ">Finland</p>
            <p id="NHnYhF" class="- topic/p ">France</p>
            <p id="ejHeFA" class="- topic/p ">Germany</p>
            <p id="UBOqEr" class="- topic/p ">Greece</p>
            <p id="PQcrHO" class="- topic/p ">Israel</p>
            <p id="FryxOl" class="- topic/p ">Italy</p>
            <p id="fyUjYu" class="- topic/p ">Japan</p>
            <p id="jyQIds" class="- topic/p ">Latvia</p>
            <p id="0m5oz58f" class="- topic/p ">
               Lithuania
            </p>
            <p id="qGMJGd" class="- topic/p ">Luxembourg</p>
            <p id="PmmatA" class="- topic/p ">Netherlands</p>
            <p id="MnQqNy" class="- topic/p ">Norway</p>
            <p id="ACplGR" class="- topic/p ">Poland</p>
            <p id="stbBcY" class="- topic/p ">Portugal</p>
            <p id="oKVWSV" class="- topic/p ">Slovenia</p>
            <p id="gAtDHE" class="- topic/p ">Spain</p>
            <p id="SawLgS" class="- topic/p ">Sweden</p>
            <p id="yvIPtc" class="- topic/p ">Switzerland</p>
            <p id="EEIuxE" class="- topic/p ">Turkey</p>
            <p id="yhctPg" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="DwRHZV" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="JrJBww" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="LUQSeK" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product mined or produced in a qualifying country; or</p>
            <p id="FlNhfS" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in a qualifying country if—</p>
            <p id="megYRl" outputclass="List4" class="- topic/p ">(A)
The cost of the following types of components exceeds 50 percent
of the cost of all its components:</p>
            <p id="PjVqmF" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Components mined, produced,
or manufactured in a qualifying country.</p>
            <p id="jeMZXF" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Components mined, produced,
or manufactured in the United States.</p>
            <p id="eZNaQV" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Components of foreign origin
of a class or kind for which the Government has determined that
sufficient and reasonably available commercial quantities of a satisfactory
quality are not mined, produced, or manufactured in the United States;
or</p>
            <p id="eAfBaH" outputclass="List4" class="- topic/p ">(B) The end product
is a COTS item.</p>
            <p id="IHmsoK" class="- topic/p ">“United States” means the 50
States, the District of Columbia, and outlying areas.</p>
            <p id="CrSOLd" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="MOCohG" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country, Canadian, or other foreign
end products in the Buy American—Free Trade Agreements—Balance of Payments
Program Certificate—Alternate I provision of the solicitation. If
the Contractor certified in its offer that it will deliver a qualifying
country end product or a Canadian end product, the Contractor shall
deliver a qualifying country end product, a Canadian end product,
or, at the Contractor’s option, a domestic end product.</p>
            <p id="WKDrHR" outputclass="List1" class="- topic/p ">(d) The contract price does
not include duty for end products or components for which the Contractor
will claim duty-free entry.</p>
            <p id="YMDffc" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
            <p id="RKsNin" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
II</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(C), use the following clause, which adds “South Caucasus/Central and
South Asian (SC/CASA) state” and “South Caucasus/Central and South
Asian (SC/CASA) state end product” to paragraph (a), and uses a
different paragraph (c) than the basic clause:</p>
            <p id="SCEWbx" outputclass="Ctr_SmCaps" class="- topic/p ">BUY
AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—ALTERNATE
II (MAR 2022)</p>
            <p id="BnIREf" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As
used in this clause—</p>
            <p id="cJJJBk" class="- topic/p ">“Bahrainian end product”
means an article that—</p>
            <p id="TUlPgV" outputclass="List3" class="- topic/p ">(i)
Is wholly the growth, product, or manufacture of Bahrain; or</p>
            <p id="olgasu" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in Bahrain into a new and different
article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="JFopFW" class="- topic/p ">“Commercially
available off-the-shelf (COTS) item”—</p>
            <p id="WDusGH" outputclass="List3" class="- topic/p ">(i) Means any item of supply (including
construction material) that is—</p>
            <p id="sFdSXp" outputclass="List4" class="- topic/p ">(A) A commercial item (as defined in paragraph
(1) of the definition of “commercial item” in section 2.101 of the Federal
Acquisition Regulation);</p>
            <p id="DwhcFe" outputclass="List4" class="- topic/p ">(B)
Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="RKJDFA" outputclass="List4" class="- topic/p ">(C) Offered to the Government,
under a contract or subcontract at any tier, without modification,
in the same form in which it is sold in the commercial marketplace;
and</p>
            <p id="qrIggt" outputclass="List3" class="- topic/p ">(ii) Does not include
bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
products and petroleum products.</p>
            <p id="cucbLN" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="cLViFt" class="- topic/p ">“Domestic end product” means—</p>
            <p id="oLSVqx" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
            <p id="wAILDM" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="vIDanZ" outputclass="List4" class="- topic/p ">(A)
The cost of its qualifying country components and its components
that are mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. The cost of components
includes transportation costs to the place of incorporation into
the end product and U.S. duty (whether or not a duty-free entry certificate
is issued). Scrap generated, collected, and prepared for processing
in the United States is considered domestic. A component is considered
to have been mined, produced, or manufactured in the United States
(regardless of its source in fact) if the end product in which it
is incorporated is manufactured in the United States and the component
is of a class or kind for which the Government has determined that—</p>
            <p id="xybKiE" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="txIdIv" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="IVblzW" outputclass="List4" class="- topic/p ">(B) The end
product is a COTS item.</p>
            <p id="Rsakhy" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="DXSGUU" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="OSideH" class="- topic/p ">“Free Trade Agreement country” means Australia,
Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;</p>
            <p id="fKLOye" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="bRXfKy" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="zhsQgG" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="fWktbf" class="- topic/p ">“Moroccan end product” means an article that—</p>
            <p id="tWSYai" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Morocco; or</p>
            <p id="byLrEy" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Morocco into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="qBsOfb" class="- topic/p ">“Panamanian
end product” means an article that—</p>
            <p id="zMaSOD" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Panama; or</p>
            <p id="LIRppL" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Panama
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="DkZiCH" class="- topic/p ">“Peruvian end product” means an article that—</p>
            <p id="agsQwT" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Peru; or</p>
            <p id="kijQlQ" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Peru into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="SORwOM" class="- topic/p ">“Qualifying
country” means a country with a reciprocal defense procurement memorandum
of understanding or international agreement with the United States
in which both countries agree to remove barriers to purchases of
supplies produced in the other country or services performed by
sources of the other country, and the memorandum or agreement complies,
where applicable, with the requirements of section 36 of the Arms
Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the
following are qualifying countries:</p>
            <p id="RLNJFi" class="- topic/p ">Australia</p>
            <p id="RFOuBy" class="- topic/p ">Austria</p>
            <p id="mIYWGC" class="- topic/p ">Belgium</p>
            <p id="xuyYHC" class="- topic/p ">Canada</p>
            <p id="oKJxEg" class="- topic/p ">Czech Republic</p>
            <p id="IXwlZi" class="- topic/p ">Denmark</p>
            <p id="HwbGJu" class="- topic/p ">Egypt</p>
            <p id="wSzJSR" class="- topic/p ">Estonia</p>
            <p id="nTvbQV" class="- topic/p ">Finland</p>
            <p id="yLAkDM" class="- topic/p ">France</p>
            <p id="lHxyJV" class="- topic/p ">Germany</p>
            <p id="EZbOgn" class="- topic/p ">Greece</p>
            <p id="rkoPcG" class="- topic/p ">Israel</p>
            <p id="etNBow" class="- topic/p ">Italy</p>
            <p id="FrtKGX" class="- topic/p ">Japan</p>
            <p id="QyztAr" class="- topic/p ">Latvia</p>
            <p id="owdg4wab" class="- topic/p ">
               Lithuania
            </p>
            <p id="MmsRWc" class="- topic/p ">Luxembourg</p>
            <p id="FhwQkQ" class="- topic/p ">Netherlands</p>
            <p id="wrFqhv" class="- topic/p ">Norway</p>
            <p id="oxJCjy" class="- topic/p ">Poland</p>
            <p id="OpvvYR" class="- topic/p ">Portugal</p>
            <p id="etsTpk" class="- topic/p ">Slovenia</p>
            <p id="znuLQj" class="- topic/p ">Spain</p>
            <p id="BoBssn" class="- topic/p ">Sweden</p>
            <p id="YMiExt" class="- topic/p ">Switzerland</p>
            <p id="tvPzHc" class="- topic/p ">Turkey</p>
            <p id="guCAdC" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="SmmDlZ" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="qLGaPJ" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="SGciin" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product mined or produced in a qualifying country; or</p>
            <p id="rzpFKO" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in a qualifying country if—</p>
            <p id="SzVMvJ" outputclass="List4" class="- topic/p ">(A)
The cost of the following types of components exceeds 50 percent
of the cost of all its components:</p>
            <p id="BkaTFs" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Components mined, produced,
or manufactured in a qualifying country.</p>
            <p id="vaOziw" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Components mined, produced,
or manufactured in the United States.</p>
            <p id="ecyLcS" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Components of foreign origin
of a class or kind for which the Government has determined that
sufficient and reasonably available commercial quantities of a satisfactory
quality are not mined, produced, or manufactured in the United States;
or</p>
            <p id="cKYGYq" outputclass="List4" class="- topic/p ">(B) The end product
is a COTS item.</p>
            <p id="blgUWy" class="- topic/p ">“South Caucasus/Central and
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
            <p id="Rfwsjd" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
state end product” means an article that—</p>
            <p id="IHQXep" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of an SC/CASA state; or</p>
            <p id="tZHESi" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="tUMpNp" class="- topic/p ">“United States”
means the 50 States, the District of Columbia, and outlying areas.</p>
            <p id="smugvt" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="nDohGz" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, SC/CASA state
end products, Free Trade Agreement country end products other than Bahrainian
end products, Moroccan end products, Panamanian end products, or
Peruvian end products, or other foreign end products in the Buy
American—Free Trade Agreements—Balance of Payments Program Certificate—Alternate
II provision of the solicitation. If the Contractor certified in
its offer that it will deliver a qualifying country end product, SC/CASA
state end products, or a Free Trade Agreement country end product
other than a Bahrainian end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, the Contractor shall deliver
a qualifying country end product, an SC/CASA state end product,
a Free Trade Agreement country end product other than a Bahrainian end
product, a Moroccan end product, a Panamanian end product, or a
Peruvian end product or, at the Contractor’s option, a domestic
end product.</p>
            <p id="SpUGtN" outputclass="List1" class="- topic/p ">(d) The contract
price does not include duty for end products or components for which
the Contractor will claim duty-free entry.</p>
            <p id="XmVwVT" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
            <p id="fqpKEa" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
III</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(D), use the following clause, which adds “Canadian end
product,” “South Caucasus/Central and South Asian (SC/CASA) state,”
and “South Caucasus/Central and South Asian (SC/CASA) state end
product” to paragraph (a) and uses a different paragraph (c) than
the basic clause:</p>
            <p id="mIVuIw" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE
OF PAYMENTS PROGRAM—ALTERNATE III (MAR 2022)</p>
            <p id="jrSnnU" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="MhvoBc" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="HUPJAl" outputclass="List3" class="- topic/p ">(i) Is wholly the
growth, product, or manufacture of Bahrain; or</p>
            <p id="EOLqDN" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Bahrain into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="LWtGMH" class="- topic/p ">“Canadian end
product” means an article that—</p>
            <p id="THxkOU" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Canada; or</p>
            <p id="xOZeeD" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Canada
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="hxTIsi" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
            <p id="avsjzI" outputclass="List3" class="- topic/p ">(i) Means any item of supply
(including construction material) that is—</p>
            <p id="LHBXBg" outputclass="List4" class="- topic/p ">(A) A commercial item (as defined in paragraph
(1) of the definition of “commercial item” in section 2.101 of the Federal
Acquisition Regulation);</p>
            <p id="DOWLIr" outputclass="List4" class="- topic/p ">(B)
Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="WaqDoA" outputclass="List4" class="- topic/p ">(C) Offered to the Government,
under a contract or subcontract at any tier, without modification,
in the same form in which it is sold in the commercial marketplace;
and</p>
            <p id="IhXIRR" outputclass="List3" class="- topic/p ">(ii) Does not include
bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
products and petroleum products.</p>
            <p id="vhQYhT" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="QRAvcG" class="- topic/p ">“Domestic end product” means—</p>
            <p id="kmkWAq" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
            <p id="yGGhQI" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="SzWLPD" outputclass="List4" class="- topic/p ">(A)
The cost of its qualifying country components and its components
that are mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. The cost of components
includes transportation costs to the place of incorporation into
the end product and U.S. duty (whether or not a duty-free entry certificate
is issued). Scrap generated, collected, and prepared for processing
in the United States is considered domestic. A component is considered
to have been mined, produced, or manufactured in the United States
(regardless of its source in fact) if the end product in which it
is incorporated is manufactured in the United States and the component
is of a class or kind for which the Government has determined that—</p>
            <p id="CYTTVw" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="ONopsh" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="TNASSa" outputclass="List4" class="- topic/p ">(B) The end
product is a COTS item.</p>
            <p id="GcbuaL" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="xfnIAH" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="qcBsMt" class="- topic/p ">“Free Trade Agreement country” means Australia,
Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;</p>
            <p id="eGThDt" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="KHeBcE" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="fJZqPZ" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="uKhPyk" class="- topic/p ">“Moroccan end product” means an article that—</p>
            <p id="cOLlrT" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Morocco; or</p>
            <p id="vGcCuM" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Morocco into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="mvUJfW" class="- topic/p ">“Panamanian
end product” means an article that—</p>
            <p id="osPkpQ" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Panama; or</p>
            <p id="PDWgez" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Panama
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="TbYKAM" class="- topic/p ">“Peruvian end product” means an article that—</p>
            <p id="BXwidd" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Peru; or</p>
            <p id="ArzpKx" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Peru into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="jNWSsc" class="- topic/p ">“Qualifying
country” means a country with a reciprocal defense procurement memorandum
of understanding or international agreement with the United States
in which both countries agree to remove barriers to purchases of
supplies produced in the other country or services performed by
sources of the other country, and the memorandum or agreement complies,
where applicable, with the requirements of section 36 of the Arms
Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the
following are qualifying countries:</p>
            <p id="YqUbnk" class="- topic/p ">Australia</p>
            <p id="FzWIGO" class="- topic/p ">Austria</p>
            <p id="hkFSvc" class="- topic/p ">Belgium</p>
            <p id="VhDLDb" class="- topic/p ">Canada</p>
            <p id="hBSfMo" class="- topic/p ">Czech Republic</p>
            <p id="LwNLNC" class="- topic/p ">Denmark</p>
            <p id="bpAhaM" class="- topic/p ">Egypt</p>
            <p id="IYKLIk" class="- topic/p ">Estonia</p>
            <p id="nqeJkx" class="- topic/p ">Finland</p>
            <p id="PTWUtp" class="- topic/p ">France</p>
            <p id="emSkeX" class="- topic/p ">Germany</p>
            <p id="hsvoVl" class="- topic/p ">Greece</p>
            <p id="YAGboa" class="- topic/p ">Israel</p>
            <p id="YtjULK" class="- topic/p ">Italy</p>
            <p id="XUkpFX" class="- topic/p ">Japan</p>
            <p id="tjoMjH" class="- topic/p ">Latvia</p>
            <p id="aheka2lf" class="- topic/p ">
               Lithuania
            </p>
            <p id="lPuRWx" class="- topic/p ">Luxembourg</p>
            <p id="kKQJzW" class="- topic/p ">Netherlands</p>
            <p id="QBTIkE" class="- topic/p ">Norway</p>
            <p id="CiOYSK" class="- topic/p ">Poland</p>
            <p id="pwYfBt" class="- topic/p ">Portugal</p>
            <p id="jBjTqn" class="- topic/p ">Slovenia</p>
            <p id="UnthhS" class="- topic/p ">Spain</p>
            <p id="EwtZjd" class="- topic/p ">Sweden</p>
            <p id="EvpUvd" class="- topic/p ">Switzerland</p>
            <p id="SJJFNy" class="- topic/p ">Turkey</p>
            <p id="ylqpPD" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="OIwqZy" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="raThYB" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="tPOFCz" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product mined or produced in a qualifying country; or</p>
            <p id="eyBdPr" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in a qualifying country if—</p>
            <p id="CRPOXX" outputclass="List4" class="- topic/p ">(A)
The cost of the following types of components exceeds 50 percent
of the cost of all its components:</p>
            <p id="VMUzjo" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Components mined, produced,
or manufactured in a qualifying country.</p>
            <p id="CvJzPc" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Components mined, produced,
or manufactured in the United States.</p>
            <p id="ZyYVKP" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Components of foreign origin
of a class or kind for which the Government has determined that
sufficient and reasonably available commercial quantities of a satisfactory
quality are not mined, produced, or manufactured in the United States;
or</p>
            <p id="KWBYPh" outputclass="List4" class="- topic/p ">(B) The end product
is a COTS item.</p>
            <p id="nbodwv" class="- topic/p ">“South Caucasus/Central and
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
            <p id="sFkgOZ" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
state end product” means an article that—</p>
            <p id="fXSnCN" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of an SC/CASA state; or</p>
            <p id="eXuPWO" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="zNZobb" class="- topic/p ">“United States”
means the 50 States, the District of Columbia, and outlying areas.</p>
            <p id="txBWST" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="sllSoI" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, SC/CASA state
end products, Canadian end products, or other foreign end products
in the Buy American—Free Trade Agreements—Balance of Payments Program
Certificate—Alternate III provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Canadian end
product, the Contractor shall deliver a qualifying country end product,
an SC/CASA state end product, a Canadian end product or, at the
Contractor’s option, a domestic end product.</p>
            <p id="HwOrTD" outputclass="List1" class="- topic/p ">(d) The contract price does not include
duty for end products or components for which the Contractor will
claim duty-free entry.</p>
            <p id="HCeWvx" outputclass="Endofclause" class="- topic/p ">(End
of clause)</p>
            <p id="YFxikF" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate IV</i>. As prescribed
in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i) and (10)(i)(E),
use the following clause, which adds “Korean end product” to paragraph
(a), and uses a different paragraph (c) than the basic clause:</p>
            <p id="zPkUNT" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE
OF PAYMENTS PROGRAM—ALTERNATE IV (MAR 2022)</p>
            <p id="xyMhBN" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="HBXZPV" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="SFJJsN" outputclass="List3" class="- topic/p ">(i) Is wholly the
growth, product, or manufacture of Bahrain; or</p>
            <p id="SsNiWB" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Bahrain into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="nAaFMW" class="- topic/p ">“Commercially
available off-the-shelf (COTS) item”—</p>
            <p id="jRdsQh" outputclass="List3" class="- topic/p ">(i) Means any item of supply (including
construction material) that is—</p>
            <p id="zFkaTS" outputclass="List4" class="- topic/p ">(A) A commercial item (as defined in paragraph
(1) of the definition of “commercial item” in section 2.101 of the Federal
Acquisition Regulation);</p>
            <p id="zYDJNB" outputclass="List4" class="- topic/p ">(B)
Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="pYpHzy" outputclass="List4" class="- topic/p ">(C) Offered to the Government,
under a contract or subcontract at any tier, without modification,
in the same form in which it is sold in the commercial marketplace;
and</p>
            <p id="QSMVWs" outputclass="List3" class="- topic/p ">(ii) Does not include
bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
products and petroleum products.</p>
            <p id="MZVQsW" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="khMtQq" class="- topic/p ">“Domestic end product” means—</p>
            <p id="AotcQn" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
            <p id="MOVmcC" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="hagxDL" outputclass="List4" class="- topic/p ">(A)
The cost of its qualifying country components and its components
that are mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. The cost of components
includes transportation costs to the place of incorporation into
the end product and U.S. duty (whether or not a duty-free entry certificate
is issued). Scrap generated, collected, and prepared for processing
in the United States is considered domestic. A component is considered
to have been mined, produced, or manufactured in the United States
(regardless of its source in fact) if the end product in which it
is incorporated is manufactured in the United States and the component
is of a class or kind for which the Government has determined that—</p>
            <p id="LEktOP" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="NMfXuv" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="SukLJy" outputclass="List4" class="- topic/p ">(B) The end
product is a COTS item.</p>
            <p id="tOIEsy" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="zlRqTw" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="ffMaGC" class="- topic/p ">“Free Trade Agreement country” means Australia,
Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;</p>
            <p id="UbcvVA" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="uTjRZu" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="IqNEEm" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="ggNtOS" class="- topic/p ">“Korean end product” means an article that—</p>
            <p id="TxJEGc" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Korea; or</p>
            <p id="KRVwdz" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Korea (Republic of) into a new and
different article of commerce with a name, character, or use distinct
from that of the article or articles from which it was transformed.
The term refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the end product,
includes services (except transportation services) incidental to
its supply, provided that the value of those incidental services
does not exceed the value of the product itself.</p>
            <p id="DJqUEV" class="- topic/p ">“Moroccan
end product” means an article that—</p>
            <p id="cDNXMZ" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Morocco; or</p>
            <p id="rwugUx" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Morocco
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="soLWgB" class="- topic/p ">“Panamanian end product” means an article that—</p>
            <p id="QeuZHa" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Panama; or</p>
            <p id="JACoQc" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Panama into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="uPeKaF" class="- topic/p ">“Peruvian end
product” means an article that—</p>
            <p id="VUjKDw" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Peru; or</p>
            <p id="sViucg" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Peru
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="AyLZXq" class="- topic/p ">“Qualifying country” means a country with a reciprocal
defense procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove barriers
to purchases of supplies produced in the other country or services
performed by sources of the other country, and the memorandum or
agreement complies, where applicable, with the requirements of section
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
2457. Accordingly, the following are qualifying countries:</p>
            <p id="XwHlBW" class="- topic/p ">Australia</p>
            <p id="YbtPYe" class="- topic/p ">Austria</p>
            <p id="icZNxB" class="- topic/p ">Belgium</p>
            <p id="JucGlL" class="- topic/p ">Canada</p>
            <p id="RtUMFf" class="- topic/p ">Czech
Republic</p>
            <p id="hKumYW" class="- topic/p ">Denmark</p>
            <p id="Axcpwq" class="- topic/p ">Egypt</p>
            <p id="ewJnSk" class="- topic/p ">Estonia</p>
            <p id="OzpPEk" class="- topic/p ">Finland</p>
            <p id="gwFWyR" class="- topic/p ">France</p>
            <p id="RwMRnh" class="- topic/p ">Germany</p>
            <p id="NNzAla" class="- topic/p ">Greece</p>
            <p id="uObzAr" class="- topic/p ">Israel</p>
            <p id="OWvyRo" class="- topic/p ">Italy</p>
            <p id="yIVTve" class="- topic/p ">Japan</p>
            <p id="aUOhUh" class="- topic/p ">Latvia</p>
            <p id="p3y82sxs" class="- topic/p ">
               Lithuania
            </p>
            <p id="hUjPhd" class="- topic/p ">Luxembourg</p>
            <p id="RbLPIV" class="- topic/p ">Netherlands</p>
            <p id="kPQrqN" class="- topic/p ">Norway</p>
            <p id="qCaOAj" class="- topic/p ">Poland</p>
            <p id="fMFXiE" class="- topic/p ">Portugal</p>
            <p id="uHbroN" class="- topic/p ">Slovenia</p>
            <p id="ebGddG" class="- topic/p ">Spain</p>
            <p id="Cdeeoo" class="- topic/p ">Sweden</p>
            <p id="UvmQcZ" class="- topic/p ">Switzerland</p>
            <p id="xtEdRd" class="- topic/p ">Turkey</p>
            <p id="cXxPIj" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="ChabXJ" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="EhWtJB" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="hYaOPk" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product mined or produced in a qualifying country; or</p>
            <p id="PBqFCE" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in a qualifying country if—</p>
            <p id="sNIjbM" outputclass="List4" class="- topic/p ">(A)
The cost of the following types of components exceeds 50 percent
of the cost of all its components:</p>
            <p id="JBIrJi" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Components mined, produced,
or manufactured in a qualifying country.</p>
            <p id="vFTsjZ" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Components mined, produced,
or manufactured in the United States.</p>
            <p id="pssDQg" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Components of foreign origin
of a class or kind for which the Government has determined that
sufficient and reasonably available commercial quantities of a satisfactory
quality are not mined, produced, or manufactured in the United States;
or</p>
            <p id="eWSuOK" outputclass="List4" class="- topic/p ">(B) The end product
is a COTS item.</p>
            <p id="YkELSp" class="- topic/p ">“United States” means the 50
States, the District of Columbia, and outlying areas.</p>
            <p id="HlJmto" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="gJjUFR" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, Free Trade
Agreement country end products other than Bahrainian end products,
Korean end products, Moroccan end products, Panamanian end products,
or Peruvian end products, or other foreign end products in the Buy
American—Free Trade Agreements—Balance of Payments Program Certificate—Alternate
IV provision of the solicitation. If the Contractor certified in
its offer that it will deliver a qualifying country end product
or a Free Trade Agreement country end product other than a Bahrainian
end product, a Korean end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, the Contractor shall deliver
a qualifying country end product, a Free Trade Agreement country
end product other than a Bahrainian end product, a Korean end product,
a Moroccan end product, a Panamanian end product, or a Peruvian
end product, or, at the Contractor’s option, a domestic end product.</p>
            <p id="dDdcCs" outputclass="List1" class="- topic/p ">(d) The contract price does
not include duty for end products or components for which the Contractor
will claim duty-free entry.</p>
            <p id="nZMdXQ" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
            <p id="ATXIKp" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
V</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(F), use the following clause, which adds “Korean end
product,” “South Caucasus/Central and South Asian (SC/CASA) state,”
and “South Caucasus/Central and South Asian (SC/CASA) state end
product” to paragraph (a), and uses a different paragraph (c) than
the basic clause:</p>
            <p id="EqjVDa" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE
OF PAYMENTS PROGRAM—ALTERNATE V (MAR 2022)</p>
            <p id="ZKwrqU" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="AoTpIu" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="rjhcYR" outputclass="List3" class="- topic/p ">(i) Is wholly the
growth, product, or manufacture of Bahrain; or</p>
            <p id="WDkRrI" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Bahrain into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="jlkGHw" class="- topic/p ">“Commercially
available off-the-shelf (COTS) item”—</p>
            <p id="vMOCPR" outputclass="List3" class="- topic/p ">(i) Means any item of supply (including
construction material) that is—</p>
            <p id="nZVucP" outputclass="List4" class="- topic/p ">(A) A commercial item (as defined in paragraph
(1) of the definition of “commercial item” in section 2.101 of the Federal
Acquisition Regulation);</p>
            <p id="RWYZlg" outputclass="List4" class="- topic/p ">(B)
Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="aqAeBl" outputclass="List4" class="- topic/p ">(C) Offered to the Government,
under a contract or subcontract at any tier, without modification,
in the same form in which it is sold in the commercial marketplace;
and</p>
            <p id="fvLWzC" outputclass="List3" class="- topic/p ">(ii) Does not include
bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
products and petroleum products.</p>
            <p id="CLmgpA" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="vpducG" class="- topic/p ">“Domestic end product” means—</p>
            <p id="riPAbc" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
            <p id="TGERdV" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="JikPZQ" outputclass="List4" class="- topic/p ">(A)
The cost of its qualifying country components and its components
that are mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. The cost of components
includes transportation costs to the place of incorporation into
the end product and U.S. duty (whether or not a duty-free entry certificate
is issued). Scrap generated, collected, and prepared for processing
in the United States is considered domestic. A component is considered
to have been mined, produced, or manufactured in the United States
(regardless of its source in fact) if the end product in which it
is incorporated is manufactured in the United States and the component
is of a class or kind for which the Government has determined that—</p>
            <p id="cUXhJR" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="yLchvo" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="vusxqN" outputclass="List4" class="- topic/p ">(B) The end
product is a COTS item.</p>
            <p id="lmtqcA" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="JAvKgM" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="LuyiIL" class="- topic/p ">“Free Trade Agreement country” means Australia,
Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;</p>
            <p id="PcpTlI" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="REBgoy" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="lkCEIe" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="hplUws" class="- topic/p ">“Korean end product” means an article that—</p>
            <p id="IkjFJp" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Korea; or</p>
            <p id="xttfZU" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Korea (Republic of) into a new and
different article of commerce with a name, character, or use distinct
from that of the article or articles from which it was transformed.
The term refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the end product,
includes services (except transportation services) incidental to
its supply, provided that the value of those incidental services
does not exceed the value of the product itself.</p>
            <p id="VVgHbr" class="- topic/p ">“Moroccan
end product” means an article that—</p>
            <p id="YoknpY" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Morocco; or</p>
            <p id="dmxxTL" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Morocco
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="NONMXr" class="- topic/p ">“Panamanian end product” means an article that—</p>
            <p id="RCGVQZ" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of Panama; or</p>
            <p id="NcorxL" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in Panama into a new and different article
of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="pOwzwd" class="- topic/p ">“Peruvian end
product” means an article that—</p>
            <p id="EpVWuO" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of Peru; or</p>
            <p id="lfqpbd" outputclass="List3" class="- topic/p ">(ii)
In the case of an article that consists in whole or in part of materials
from another country, has been substantially transformed in Peru
into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which
it was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="YNoShe" class="- topic/p ">“Qualifying country” means a country with a reciprocal
defense procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove barriers
to purchases of supplies produced in the other country or services
performed by sources of the other country, and the memorandum or
agreement complies, where applicable, with the requirements of section
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
2457. Accordingly, the following are qualifying countries:</p>
            <p id="mkhDAG" class="- topic/p ">Australia</p>
            <p id="LSTill" class="- topic/p ">Austria</p>
            <p id="mkCoCF" class="- topic/p ">Belgium</p>
            <p id="PXABFo" class="- topic/p ">Canada</p>
            <p id="UlAjKI" class="- topic/p ">Czech
Republic</p>
            <p id="xnsMBh" class="- topic/p ">Denmark</p>
            <p id="AytSQQ" class="- topic/p ">Egypt</p>
            <p id="dZHbBH" class="- topic/p ">Estonia</p>
            <p id="uAJUqw" class="- topic/p ">Finland</p>
            <p id="SXDHjU" class="- topic/p ">France</p>
            <p id="kJYtRo" class="- topic/p ">Germany</p>
            <p id="gKirQl" class="- topic/p ">Greece</p>
            <p id="RKZQJv" class="- topic/p ">Israel</p>
            <p id="BinLMC" class="- topic/p ">Italy</p>
            <p id="JaGpmA" class="- topic/p ">Japan</p>
            <p id="YLPRii" class="- topic/p ">Latvia</p>
            <p id="ilcw0qh" class="- topic/p ">
               Lithuania
            </p>
            <p id="oQBqun" class="- topic/p ">Luxembourg</p>
            <p id="kAyNAE" class="- topic/p ">Netherlands</p>
            <p id="rbCDZo" class="- topic/p ">Norway</p>
            <p id="qunSqG" class="- topic/p ">Poland</p>
            <p id="RPqxVA" class="- topic/p ">Portugal</p>
            <p id="jijztr" class="- topic/p ">Slovenia</p>
            <p id="StnmED" class="- topic/p ">Spain</p>
            <p id="LbluKg" class="- topic/p ">Sweden</p>
            <p id="muYkoM" class="- topic/p ">Switzerland</p>
            <p id="qTONtJ" class="- topic/p ">Turkey</p>
            <p id="VnXqME" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="bMkXcQ" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="uAdKyJ" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="LvgOUb" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product mined or produced in a qualifying country; or</p>
            <p id="qCsiCB" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in a qualifying country if—</p>
            <p id="wkSXoC" outputclass="List4" class="- topic/p ">(A)
The cost of the following types of components exceeds 50 percent
of the cost of all its components:</p>
            <p id="nyhJhz" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) Components mined, produced,
or manufactured in a qualifying country.</p>
            <p id="JaqLVQ" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Components mined, produced,
or manufactured in the United States.</p>
            <p id="FYwbtO" outputclass="List6" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Components of foreign origin
of a class or kind for which the Government has determined that
sufficient and reasonably available commercial quantities of a satisfactory
quality are not mined, produced, or manufactured in the United States;
or</p>
            <p id="ZNGhIa" outputclass="List4" class="- topic/p ">(B) The end product
is a COTS item.</p>
            <p id="LcmKNp" class="- topic/p ">“South Caucasus/Central and
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
            <p id="zSmcLw" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
state end product” means an article that—</p>
            <p id="YcRBww" outputclass="List3" class="- topic/p ">(i) Is wholly the growth, product, or
manufacture of an SC/CASA state; or</p>
            <p id="HkRMIf" outputclass="List3" class="- topic/p ">(ii) In the case of an article that consists
in whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.</p>
            <p id="NuFPtd" class="- topic/p ">“United States”
means the 50 States, the District of Columbia, and outlying areas.</p>
            <p id="QYFAXd" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="BKfaUI" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, SC/CASA state
end products, Free Trade Agreement country end products other than Bahrainian
end products, Korean end products, Moroccan end products, Panamanian
end products, or Peruvian end products, or other foreign end products
in the Buy American—Free Trade Agreements—Balance of Payments Program
Certificate—Alternate V provision of the solicitation. If the Contractor
certified in its offer that it will deliver a qualifying country
end product, SC/CASA state end products, or a Free Trade Agreement
country end product other than a Bahrainian end product, a Korean
end product, a Moroccan end product, a Panamanian end product, or
a Peruvian end product, the Contractor shall deliver a qualifying
country end product, an SC/CASA state end product, a Free Trade
Agreement country end product other than a Bahrainian end product,
a Korean end product, a Moroccan end product, a Panamanian end product,
or a Peruvian end product or, at the Contractor’s option, a domestic
end product.</p>
            <p id="HzPuUo" outputclass="List1" class="- topic/p ">(d) The contract
price does not include duty for end products or components for which
the Contractor will claim duty-free entry.</p>
            <p id="vHhrMC" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
         </section>
      </conbody>
   </concept>
</dita>
