That's Not 'Buy America' Various Origin Requirements In The United States For Importers

• Jurisdiction: United States,Federal
• Law Firm: Braumiller Law Group, PLLC
• Subject Matter: International Law, International Trade & Investment
• Author: Mr Harold R. Jackson
• Published date: 08 February 2023

You've probably heard about the many recent changes to the "Buy America" and procurement rules, starting with Executive Orders in the late 2010's under then President Trump, several sessions of Congress, and modifications by President Biden. These changes have prompted questions from importers. What is Buy America? What sort of waivers will, or will not, apply to my imported merchandise? Can I still put "made in USA" on it? Do I really have to do this to avoid China tariffs? Does my product really need to be 95% domestic iron or steel? The answer to the last one is 'yes' - but only if you're selling to a project funded by the government. If not, like the other questions, 'Buy America' probably doesn't apply to you. The United States has different and sometimes muddled 'origin' related requirements depending on the subject matter of the transaction. Below are summaries of those requirements that are intended to make clear distinctions between them, depending on the subject matter of the transaction.

What Is Buy America?

The Buy America Act historically applied only to mass-transit procurements for state and local government projects, such as the construction of highways, railways, or transit systems. However, Title IX of the Infrastructure Investment and Jobs Act, "Build America, Buy American" (the "BABA") drastically expanded Buy America preferences in public procurements to all "infrastructure" projects, which includes, the structures, facilities, and equipment for, in the United States, roads, highways, bridges, public transportation, dams, ports, harbors, and other maritime facilities; intercity passenger and freight railroads, freight and intermodal facilities, airports, water systems, including drinking water and wastewater systems, electrical transmission facilities and systems, utilities, broadband infrastructure, buildings and real property - and even electric vehicle (EV) charging stations.

The BABA implemented a number of domestic content requirements for iron and steel products, manufactured products, and construction materials. All iron and steel products, as well as construction materials, must 100% originate in the United States, meaning the iron or steel is smelted in the U.S. For manufactured products going to infrastructure projects, (1) the manufactured product must be manufactured in the United States, and (2) 55% or more of the total cost of components must be components mined, produced, or manufactured in the United States.

However, 'Buy America'...