Any product supplied to the government for General Service Administration needs to comply with the Trade Agreements Act (TAA).
TAA requires that products originate from the United States or any other country listed in the Act. A failure to comply with TAA provisions can result in awarded bid cancellations, expensive fines and exclusion from federal contracting.
Sourcing TAA compliant IT is challenging because most electronic manufacturers are overseas and do not qualify as a TAA approved country. Understanding the requirement and how to overcome them is part of creating a compliant supply chain.
What is TAA?
TAA refers to the Trade Agreements Act (19 U.S.C. § 2501—2581), which is intended to foster fair and open international trade. TAA requires that products must be produced or undergo “substantial transformation” within the United States or a designated country, including countries that have reciprocal trade agreements with the United States, Caribbean Basin countries and certain “least developed” countries.