Learn about the Buy American Act and the Build America, Buy America Act
HOW CHEMLINE PLASTICS FITS INTO THE BUY AMERICAN ACT (BAA) AND BUILD AMERICA, BUY AMERICA ACT (BABAA)
Are you confused by the "Buy American" requirements? At Chemline Plastics, we frequently receive questions about whether our products meet these standards. Here’s a straightforward explanation to help you navigate the Buy American Act (BAA) and Build America, Buy America Act (BABAA), along with guidance on how to keep using Chemline’s high-quality products for government-backed projects.
Understanding the Difference Between BAA and BABAA
- Buy American Act (BAA): Applies to federal government purchases, focusing on direct procurement by federal agencies.
- Build America, Buy America Act (BABAA): Targets infrastructure projects funded by federal grants, loans, or financial aid. Each federal agency may have specific guidelines for implementing BABAA, so the requirements can vary.
Do Chemline Plastics' Products Meet BAA and BABAA Requirements?
For BAA:
- Some products comply naturally.
- Others may require a waiver due to domestic non-availability.
- Components manufactured in World Trade Organization (WTO) member countries may qualify under the Trade Agreements Act (TAA).
For BABAA:
- Some products comply naturally.
- Others may require a waiver.
- Federal financial assistance projects may have additional limits or exemptions, including:
- De Minimis Waivers: Small foreign components may be allowed if they make up less than 5% of the project’s total material cost (or up to $1 million).
- Small Projects Exemption: Projects below a certain cost (e.g., $250,000) might not require a waiver, depending on the funding source.
What Does "Made in America" Mean?
BAA Standards:
- Non-iron/steel products: Manufactured in the U.S. with at least:
-
- 60% domestic content (as of October 2022)
- 65% (starting January 2024)
- 75% (starting January 2029)
- Iron/steel products: Must contain 95% domestic components.
BABAA Standards:
- Non-iron/steel products: Manufactured in the U.S. with at least 55% domestic content.
- Iron/steel products: Fully produced in the U.S., including coatings.
How Can I Ensure My Customer Can Use Chemline Plastics' Products?
- For BAA projects, consult Chemline’s Technical Services to navigate WTO/TAA guidelines.
- For BABAA projects, a waiver form may be needed from the project manager or recipient of federal financial aid.
Chemline Plastics: Your Trusted Partner for Quality and Compliance
Chemline Plastics is committed to delivering the highest quality thermoplastic valves and piping systems. We collaborate with top manufacturers worldwide and produce many of our products at our North American facilities.
If you need assistance with documentation for waivers or compliance details, contact our Technical Services team at [phone] or [email].
Timeline of Key Legislation:
- 1933: Buy American Act (BAA) enacted.
- 1979: Trade Agreements Act (TAA) introduced.
- 2021: BABAA introduced under the Infrastructure Investment and Jobs Act (IIJA).
- 2022: Executive Order 14082 increases domestic content thresholds under the BAA.
For further guidance, reach out to Chemline Plastics for tailored solutions to meet your project’s compliance needs.
