What you need to know about TAA compliance and TAA-compliant products

TAA-compliant products are important to many of our customers, but what does it mean?  

To answer that question, we’ll look at the Trade Agreement Act of 1979, TAA-designated countries, and what exactly a TAA-compliant product is.  

The Trade Agreement Act of 1979 

Let’s start at the beginning: the Trade Agreement Act (TAA) of 1979. This U.S. federal law was designed to improve U.S. trade policy and support international trade agreements. Notably, it requires the U.S. government to only purchase products that are either made in the U.S., made in a designated country, or substantially transformed in a designated country (more on what “substantially transformed” means later).  

The list of designated countries is long, and includes Australia, Canada, Japan, EU member states, South Korea, Singapore, and Mexico. Countries that don’t meet these criteria include China, Russia, India, Brazil, and Indonesia.  

What branches of the government does the TAA apply to? 

The Trade Agreement Act applies to all U.S. federal agencies, including the Departments of Defense and Homeland Security. 

Does the TAA apply to other countries? 

While the Trade Agreement Act only applies to the U.S., other countries may prefer to purchase TAA-compliant products. For example, in EMEA, similar certifications can be required for government contracts or when purchasing products for specific applications, including mission-critical operations. 

TAA-compliant products can add a layer of trust and regulatory assurance, especially for global companies.  

What is a TAA-compliant product? 

TAA-compliant products must either be wholly manufactured in the U.S. or a designated country – some of which are listed above – or substantially transformed in the U.S. or designated country.  

So, what does “substantially transformed” mean? According to the International Trade Administration, products are considered substantially transformed if they’ve “underwent a fundamental change in form, appearance, nature, or character. This fundamental change normally occurs as a result of processing or manufacturing in the country claiming origin.”  

The International Trade Administration also notes that this change adds to the product’s value at an amount or percentage that’s significant compared to the value that the product (or its components or materials) had when exported from the country where it was first manufactured.  

Specifying TAA-compliant AV solutions 

Are you working on a bid and need to specify TAA-compliant AV products? It’s important to look for a manufacturing partner who has: 

•     Experience serving and supporting the U.S. federal government 
•     Expertise in fulfilling government contracts 
•     The ability to offer support as a single-vendor supplier of secure and reliable AV solutions 
•     An understanding of the unique design considerations and procurement challenges of government customers 
•     Publishes a government capabilities statement, including a DUNS number, CAGE code, and NAICS Code.