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The Buy American Act of 1933 is a long-standing U.S. law that requires U.S. federal departments to prefer U.S.-made goods in their purchasing. The act provides advantageous pricing to American companies bidding on federal procurement contracts if:
The Buy American Act applies to domestic end products and domestic construction materials. Construction materials must be mined or produced in the U.S. to be eligible. Companies must be able to show that at least 50 percent of domestic end products can be attributed to components mined, produced or manufactured in the U.S. The 75 percent threshold is determined by cost of components. An individual component can come from outside of the U.S., as long as the balance of the total end unit meets the American-made minimum.
Companies that wish to bid on federal procurement contracts must be prepared to prove the country of origin of their product, which requires:
Although Buy America and Buy American have similar names, they are different laws. The Buy America Act also requires procurement processes to favor American-made goods, but it only applies to purchases related to rail or road transportation. This could include highways, transit systems and railroads.
Companies must collect and track country of origin certificates and product component data to manage their Buy American requirements.
Assent’s Trade Classification & Origin Module allows you to: