TAA compliance

TAA compliance means a product meets the Trade Agreements Act (TAA) by being made, or substantially transformed, in the United States or a designated country. The Act is codified at 19 U.S.C. 2501 et seq. Federal Acquisition Regulation (FAR) clause 52.225-5 obliges the contractor to deliver U.S.-made or designated country end products unless its offer listed others. Substantial transformation means the article becomes a new and different article of commerce with a distinct name, character, or use. U.S. Customs and Border Protection (CBP) issues binding final determinations of origin under that test on request.

Designated countries are World Trade Organization Government Procurement Agreement (WTO GPA) members, free trade agreement partners, least developed countries, and Caribbean Basin countries. Taiwan, Japan, South Korea, Mexico, and Canada are designated. China, India, Malaysia, Thailand, and Vietnam are not. The FAR 25.403 purchase restriction does not apply below the WTO GPA threshold, which FAR 25.402 sets at $174,000 for supply contracts. The General Services Administration (GSA) applies the Act to its Multiple Award Schedule (MAS) contracts.

Treat a GSA Schedule line, or a federal supply contract of $174,000 or more, as TAA-covered unless the solicitation says otherwise. Confirm each server and GPU has a U.S. or designated country origin before it goes on the offer.

Sources

Last verified October 7, 2026.