How to Identify Products That Adhere to TAA Regulations

Being in compliance with the Trade Agreements Act (TAA) means you are using products and services that have been made in the United States or come from countries, not on the banned list.

The TAA is designed to encourage free and fair trade. The countries on the banned list have a history of engaging in trade or production practices that violate the principles espoused by the TAA. The banned list includes the following countries:

1. China
2. India
3. Indonesia
4. Iran
5. Iraq
6. Malaysia
7. Pakistan
8. Russia
9. Sri Lanka

If a company wants to remain in compliance with the TAA, it cannot use goods or services produced mostly in these countries. Also, products’ individual parts cannot be mostly produced in these countries. The list of banned countries can change at any time if the United States government deems it necessary.

The regulations of the TAA apply as well to the General Services Administration (GSA). The GSA is charged with overseeing how government real estate and buildings are managed. This includes how all services and goods are procured in connection with their construction, care, and upkeep. This also includes the computer resources and networks within the buildings. 

TAA Requirements

Fortinet TAA products conform to the necessary regulations. This means that the Fortinet products a company purchases will not bring them out of line with TAA regulations. Rather, they will enable them to do business with the United States government. Federal agencies also have to use products and services that conform to TAA regulations.

Identifying G and USG Products

To identify G and USG products, you need to check the stock-keeping unit, or SKU. If the product falls under the G or USG categories, the SKU will end in –G or –USG. It is important that the products you use are designated as G or USG if you will be doing business with the United States government. 

Falling out of line with TAA regulations could result in losing lucrative contracts or the inability to submit bids for new jobs. The Fortinet company produces products and provides services that align with TAA standards. Fortinet TAA technology and services are, therefore, a safe choice for federal agencies and those that do business with the U.S. government.

How Do G and USG Products Adhere to TAA Regulations?  

The easiest way for G and USG products to adhere to TAA regulations is for all their components to be made and assembled in the United States or in an approved country. However, this is not always feasible. 

Acknowledging this, TAA regulations allow a portion of a product to be made in a country, not on the approved list. However, 50% or more of the expense associated with the production or assembly of the product has to either come from the United States or one of the approved countries. Examples of approved countries include:

1. Australia
2. Germany
3. Canada
4. South Korea
5. Japan
6. Mexico
7. Singapore
8. Afghanistan
9. Cambodia
10. Samoa
11. Yemen
12. Antigua and Barbuda
13. Aruba
14. Bahamas
15. Curacao

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For example, if a federal agency purchases an electronic device, and the cost of making it was incurred in Iraq and Canada, the item could still conform to TAA standards. However, at least half the cost would need to originate in Canada. Fortinet produces G and USG products that conform to TAA regulations because most of the cost of production comes from within approved countries—or the product has been substantially transformed. Fortinet TAA services likewise conform because they are provided in the United States.

“Substantially transformed” means that key elements of the product are changed within an approved country, such as the name, physical characteristics, or other elements. When a product is assembled in several countries, the “substantially transformed” requirement only applies to the last country involved in the production of the item before the item came into the United States.

For example, if a company manufactures garden rakes that used steel ore from China and wood from Pakistan, the rakes could still end up being TAA-compliant as long as the rake is made in an approved country, such as Mexico. The manufacturer in Mexico would receive the steel ore from China and the wood from Pakistan. As the Mexican producer is turning the ore into the teeth, the ore is being substantially transformed into something very different. Likewise, the raw wood from Pakistan needs to be hewn into a very different shape to become the rake’s handle. In this process, the wood also would be substantially transformed.

Fortinet’s G and USG Products

Fortinet products come with G and USG certificates, abiding by TAA rules and regulations. This means that any federal agency or company doing business with the United States government can use Fortinet TAA products and services and remain in compliance with the TAA.

Determining which products adhere to TAA regulations can be quite a struggle, especially if you don’t know where to start. By following the steps stated above, you can discern which of these products are okay with the TAA. Doing so will help save a lot of time and trouble on your part.