If you sell products to the federal government — as a manufacturer or a reseller — where those products are made can decide whether you’re allowed to sell them at all. Two different laws govern country of origin, they apply in different situations, and mixing them up is how resellers get tripped up (especially on GSA).

Two regimes, one question

Both laws ask “where does this product come from?” — but they set different tests and kick in at different dollar levels.

Buy American Act (BAA). The default preference for domestic end products on federal purchases. It uses a two-part test — the product is manufactured in the U.S. and a required percentage of its component cost is domestic — and it works through price preferences and waivers rather than an outright ban. Foreign products can still be bought, but domestic offers get a leg up.

Trade Agreements Act (TAA). For acquisitions at or above a threshold (tied to international trade agreements), TAA replaces the Buy American preference with a hard rule: the government may only buy products that are U.S.-made or made in a “designated country.” Products from non-designated countries are simply not eligible — no price preference, no waiver in the normal course.

The threshold decides which applies: below it, Buy American; at or above it, TAA.

What “designated country” means — and doesn’t

A designated country is one the U.S. has a qualifying trade agreement with (WTO Government Procurement Agreement parties, free-trade-agreement partners, and certain others). The catch that surprises resellers: several major manufacturing countries — notably China — are not designated. A product made or “substantially transformed” in a non-designated country generally can’t be offered on a TAA-covered buy.

“Substantial transformation” is the test: a product’s country of origin is where it was last transformed into a new article with a distinct name, character, or use — not simply where it was assembled or boxed. This is fact-specific and easy to get wrong.

Verify the list. Designated countries change as trade agreements are added or modified. Do not rely on a memorized list — check the current designated countries in FAR 25.003 before you certify anything.

Why GSA makes this a big deal

The GSA Multiple Award Schedule requires products offered on it to be TAA-compliant. So if you’re a reseller planning to get on the Schedule, every product on your contract must be U.S.- or designated-country origin. Discovering after award that a core product is made in a non-designated country is a painful, common problem — diligence your catalog before you submit.

How to stay compliant

  • Get country-of-origin documentation from your manufacturers, in writing.
  • Apply the substantial-transformation test correctly — assembly location isn’t automatically the origin.
  • Curate your catalog to TAA-eligible products for GSA and TAA-covered buys.
  • Re-verify when suppliers change sourcing; origin can shift without notice.

The bottom line

Buy American nudges the government toward domestic products through preferences; TAA flatly limits larger buys — and GSA Schedules — to U.S.- and designated-country products. Know which regime applies, document your origins, apply the substantial-transformation test honestly, and always check the current designated-country list before you certify.

This article is general information, not legal advice. Thresholds and designated countries change — verify current rules in FAR Part 25 before relying on this.