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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 25, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Designated Countries -- New European Union Members

SOURCE: Federal Register, June 25, 2004, Vol. 69, No. 122, page 35535

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 252.225-7021, Trade Agreements, and DFARS 252.225-7045, Balance of Payments Program -- Construction Material Under Trade Agreements, to add the names of the 10 new European Union members to the definition of "designated countries."

EDITOR'S NOTE: For more on the addition of the 10 new European Union members to the Federal Acquisition Regulation, see the June 18, 2004, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 2001-24, Miscellaneous Amendments," Item (6).

EFFECTIVE DATE: June 25, 2004.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0328; fax: 703-602-0350. Cite "DFARS Case 2004-D006" when referring to this final rule.

SUPPLEMENTARY INFORMATION: On May 1, 2004, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic, and Slovenia joined the European Union. The U.S. Trade Representative (USTR) has determined, under the Trade Agreements Act, that suppliers from these countries are eligible to participate in U.S. government procurement under the terms and conditions of the World Trade Organization Government Procurement Agreement (WTO GPA). Therefore, these countries are added to the list of designated countries in DFARS 252.225-7021 and DFARS 252.225-7045.

EDITOR'S NOTE: Federal Acquisition Circular (FAC) 2001-24 recently amended the Federal Acquisition Regulation (FAR) to add the 10 new European Union members to FAR Part 25, Foreign Acquisition, and the corresponding FAR clauses (see the June 18, 2004, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 2001-24, Miscellaneous Amendments"). The reason that the DFARS must be amended separately is that Congress has developed an entire body of foreign acquisition-related legislation (primarily provisions in authorization and appropriations acts) that applies only to DOD and not to the rest of the government. This is why DOD has its own extensive DFARS Part 225 and separate set of contract clauses, and why DOD has to issue a separate rule that makes the same changes to the DFARS that were made to the FAR -- FAR Part 25 and the FAR clauses do not reflect all the additional requirements and exceptions that apply to DOD.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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