Chiles procurement suppliers were granted national

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Chile's procurement suppliers were granted national treatment for procurement of 79 entities at the federal level, 37 states, and 10 other U.S. government entities. 225 4. The Buy American Act of 1933 restricts the purchase of supplies and construction materials by government agencies to those defined as "domestic end-products", in accordance with a two-part test that must establish that the article is manufactured in the United States, and that the cost of domestic components exceeds 50% of the cost of all the components. The Act does not apply to services. Exceptions to the Buy American Act can be granted if it is determined that domestic preference is inconsistent with the public interest, in case of U.S. non-availability of a supply or material, or for reasonableness of cost. The cost of the domestic offer is considered unreasonable if the cost of the foreign (non-eligible) product, inclusive of import duty and a 6% added margin, is below the lowest domestic offer when this offer is from a large business concern. If the lowest domestic offer is from a small business concern, the added margin considered is 12%. For purchases by the Defense Department the price difference must be of at least 50%. National preferences for defence are also allowed under the Department of Defense Appropriations Act of 1992. Some states also apply Buy American or Buy State preferences. 5. The Balance of Payments Program, a non-statutory programme, applies provisions similar to those of the Buy American Act to contracts for the purchase of supplies for use by government agencies or bodies outside the United States and contracts for construction, alteration, or repair of any public building or public work outside the United States. Since the last Review of the United States, in 2001, the Balance-of-Payments Program has been eliminated for civilian agency acquisitions. It applies only to purchases by the Department of Defense of end-products for use outside the United States over US$100,000. 226 6. The Trade Agreements Act of 1979 waives the application of the Buy American Act to the end-products, including construction materials, of designated or eligible countries, which include the parties to the GPA, NAFTA and other bilateral procurement agreements, and least-developed countries. 227 End-products granted duty-free entry under the CBERA (except from Panama) are also treated as eligible products. 228 For designated countries, other than Canada, Israel, Chile, and Singapore, and for CBERA countries, the thresholds are those of the GPA. For NAFTA countries, Israel, Chile, and Singapore, the thresholds are those stipulated in each agreement. Eligible products are granted non-discriminatory treatment. The provisions of the Buy American Act are also waived for civil aircraft and related articles that meet the substantial transformation test of the Act and originate in countries that are parties to the WTO Agreement on Trade in Civil Aircraft.
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