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TAA/BAA/BABA Compliance
TAA (Trade Agreement Act Compliant)
BAA (Buy American Act Compliant)
BABA (Build America Buy America)
The Trade Agreements Act (TAA) compliance is crucial for selling products to the US government, and it involves ensuring that light fixtures are manufactured or substantially transformed in the US or TAA- designated countries.
Substantial transformation implies significant changes in the character, use, or name of a product, such as LED lights. TAA compliance does not exclusively mean "Made in the USA" but includes products substantially transformed in the USA or a trade agreement country.
For a product to be TAA compliant, at least 50% of its overall manufacturing cost must originate from the US or designated countries, and the product must undergo substantial transformation in those regions.
BAA Compliant lighting refers to lighting products that comply with the Buy American Act (BAA), a U.S. federal law that aims to promote the purchase of American-made goods by the federal government. The Buy American Act requires that federal agencies give preference to domestic end-products, materials, and supplies when making procurement decisions.
At least 55% of the lighting product itself must be manufactured in the United States.
The Build America, Buy America (BABA) Act was put into place to prioritize the use of American-made products for infrastructure projects that receive Federal financial assistance.
To meet the requirements of the BABA Act, products must undergo manufacturing within the United States, with the cost of components making up more than 65 percent of the total component cost. This condition is known as the Buy America Requirement.
Main difference between TAA Compliant, BAA Compliant, and BABA Compliant?
TAA
Requires that the products or services are from designated countries that have trade agreements with the U.S.
BAA
Requires that at least 55% of the products or services themselves are from the U.S.
BABA
Focuses on the cost of the components to manufacture reaching a certain threshold to be considered Made In The USA.
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