7 for purchases from the department of defense the

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7. For purchases from the Department of Defense, the restrictions of the Buy American Act/Balance of Payments Program have been waived for the acquisition of defence equipment produced in any "qualifying country" (countries with which there is a reciprocal procurement 225 Information available at: http://www.ustr.gov/new/fta/Chile/final/09.procurement.PDF; and http://www.ustr.gov/new/fta/Singapore/final/text%20final.PDF. 226 Federal Register Vol. 67, No. 83; 30 April 2002. FAC 01-07 [online]. Available at: http://www.acqnet.gov/far/FAC/fac2001-07.pdf 227 Apart from GPA parties, the following are designated countries: Bangladesh, Benin, Bhutan, Botswana, Burkina Faso, Burundi, Cape Verde, Central African Republic, Chad, Comoros, Djibouti, Equatorial Guinea, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Lesotho, Malawi, Maldives, Mali, Mozambique, Nepal, Niger, Rwanda, Sao Tome and Principe, Sierra Leone, Somalia, Tanzania, Togo, Tuvalu; Uganda, Vanuatu, Western Samoa, and Yemen. 228 The suspension of the eligibility of products from Honduras was reinstated in November 2002. FAC 2001-10; 22 November 2002. Online information available at: http://www.acqnet.gov/far/FAC/fac2001-10.pdf.
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United States WT/TPR/S/126 Page 86 agreement or Memorandum of Understanding). 229 This does not limit, however, the authority of the Secretary of Defense to restrict acquisitions to domestic sources or reject an otherwise acceptable offer from a qualifying country source in instances considered necessary for national defence reasons. 230 8. In certain cases imported supplies for use in government contracts may be exempted from customs duties. These goods are listed in sub-chapters VIII and X of Chapter 98 of the U.S. tariff schedule. Other supplies may also be granted duty-free entry; in this case, the contract price must be reduced by the amount of duty that would be payable if the supplies did not enter duty free. Supplies (excluding equipment) for government-operated vessels or aircraft may be imported duty free. 231 9. Procurement policy also seeks to increase the participation of small businesses, veteran- owned small businesses, small disadvantaged business (SDBs), and women-owned small businesses. The Small Business Act (P.L. 85-536), as amended, requires that each contract with an anticipated value greater than US$2,500 but less than US$100,000 be reserved exclusively for small business concerns unless the contracting officer is unable to obtain offers from two or more small businesses that are competitive with market prices and with the quality of the goods or services to be purchased. Agencies are allowed to establish business set-asides for procurements of architectural and engineer services, R&D, and test and evaluation. 10. The Small Business Administration (SBA) manages a number of programmes intended to promote the ability of small business to compete for federal contracts. To implement and monitor the programmes, the SBA negotiates goals with each federal agency. The SBA encourages small enterprises to register online in the Central Contracting Registration (CCR). 232 The SBA also offers a new website called "SUB-Net" where prime contractors post subcontracting opportunities.
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