[Federal Register: February 18, 1997 (Volume 62, Number 32)] [Notices] [Page 7205-7206] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr18fe97-32] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Rural Utilities Service Rural Telephone Bank Amendment to the Rural Electrification Act's ``Buy American'' Provision AGENCY: Rural Utilities Service and Rural Telephone Bank, USDA. ACTION: Notice of Amendment to the Rural Electrification Act's ``Buy American'' Provision. ----------------------------------------------------------------------- SUMMARY: The Uruguay Round Agreements Act, (108 Stat. 4954, Public Law 103-465, December 8, 1994), amends the ``Buy American'' provision, (7 U.S.C. 903 note) of the Rural Electrification Act of 1936, as amended (7 U.S.C. 901 et seq.) (the ``RE Act'). In the provision, as amended by the Uruguay Round Agreements Act, the [[Page 7206]] words ``Mexico, or Canada'' are replaced with ``or in any eligible country''. The United States Trade Representative (USTR) determines what countries are ``eligible''. As amended, the provision directs the Secretary of Agriculture, for the Rural Utilities Service (RUS), (previously the Rural Electrification Administration) to require that, to the extent practicable and the cost not unreasonable, a borrower use funds lent under the RE Act only for such unmanufactured articles, materials, and supplies, as have been mined or produced in the United States or eligible country and only such manufactured articles, materials, and supplies as have been manufactured in the United States or an eligible country substantially all from articles, materials or supplies mined, produced, or manufactured, as the case may be, in the United States or an eligible country. This action is intended to provide borrowers receiving loans made by the Rural Telephone Bank (RTB) or loans made or guaranteed by RUS, as well as material and equipment manufacturers and the public, with information for compliance with the amended RE Act ``Buy American'' provision. FOR FURTHER INFORMATION CONTACT: For electric program matters: George Bagnall, Director, Electric Staff Division, RUS, U.S. Department of Agriculture, STOP 1569, 1400 Independence Ave., SW., Washington, DC 20250-1569. Telephone number (202) 720-1900, fax (202) 720-7491. For telecommunications program matters: Orren E. Cameron, III, Director, Telecommunications Standards Division, RUS, U.S. Department of Agriculture, STOP 1598, 1400 Independence Ave., SW., Washington, DC 20250-1598. Telephone number (202) 720-8663, fax (202) 720-4099. SUPPLEMENTARY INFORMATION: Section 342(g) of the Uruguay Round Agreements Act, amended the RE Act ``Buy American'' provision by replacing the words ``Mexico, or Canada'' with ``or in any eligible country'' and by authorizing the United States Trade Representative (USTR) to determine what countries are eligible. The ``Buy American'' provision now reads: ``In making loans pursuant to * * * the Rural Electrification Act of 1936 * * * the Secretary of Agriculture shall require that, to the extent practicable and the cost of which is not unreasonable, the borrower agree to use in connection with the expenditure of such funds only such unmanufactured articles, materials and supplies, as have been mined or produced in the United States or in any eligible country, and only such manufactured articles, materials, and supplies as have been manufactured in the United States or in any eligible country, substantially all from articles, materials, or supplies mined, produced, or manufactured, as the case may be, in the United States or in any eligible country. For purposes of this section, an `eligible country' is any country that applies with respect to the United States an agreement ensuring reciprocal access for United States products and services and United States suppliers to the markets of that country, as determined by the United States Trade Representative.'' The RUS ``Buy American'' provision applies to any loan made by the RTB or made or guaranteed by the RUS. Whether a particular product is domestic or non-domestic for purposes of the RE Act ``Buy American'' provision depends upon such factors as the country of origin of the product and its component parts and whether the product is purchased by an electric borrower or a telecommunications borrower. The eligibility status of Canada and Mexico has not changed. Products produced in Canada or Mexico substantially consisting of components produced in Canada, Mexico, or the United States and purchased with RTB or RUS electric or telephone loan funds are treated as United States domestic products. At this time the USTR has determined that only Canada and Mexico are eligible countries for purchases made by telecommunications borrowers. Therefore, products produced in countries other than the United States, Canada, or Mexico and purchased by RUS telecommunications borrowers are not treated as domestic products for purposes of the RE Act ``Buy American'' provision. The amendment makes no change in the treatment of these purchases unless and until the USTR determines additional ``eligible countries'' for telecommunications borrowers. At this time, the USTR has determined that the following countries have agreements ensuring reciprocal access regarding products used by electric borrowers, and are therefore ``eligible countries'' for purchases made by electric borrowers: Austria Belgium Denmark Finland France Germany Greece Ireland Israel Italy Japan Korea Luxembourg The Netherlands Norway Portugal Singapore Spain Sweden Switzerland United Kingdom Products from an eligible country consisting substantially of components produced in the United States or any eligible country and purchased by RUS electric borrowers with RUS loan funds will be considered to be domestic products for purposes of the RE Act ``Buy American'' provision. The USTR may at any time declare one or more additional countries to be ``eligible countries'' for either electric or telecommunications borrowers. The Chair of Technical Standards Committee ``A'' (Electric) will be the point of contact for RUS with respect to USTR determinations of eligible countries. Each RUS borrower is responsible for assuring that its procurement complies with the requirements of the RE Act ``Buy American'' provision. RUS is making technical revisions to its existing forms of loan contracts and loan contract amendments to conform them to the RE Act ``Buy American'' provision as amended. In addition, RUS will make similar technical revisions to its standard forms of contracts providing for the purchase of materials and equipment and for ``furnish and install'' type construction. Until these forms are revised, the borrower should make the appropriate changes in its contract forms. Dated: February 5, 1997. Wally Beyer, Administrator, Rural Utilities Service, and Governor, Rural Telephone Bank. [FR Doc. 97-3794 Filed 2-14-97; 8:45 am] BILLING CODE 3410-15-P