[Federal Register: April 19, 2006 (Volume 71, Number 75)]
[Rules and Regulations]               
[Page 20305-20306]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Parts 25 and 52

[FAC 2005-09; FAR Case 2005-045; Item VII Docket FAR-2006-0020]
RIN 9000-AK43

Federal Acquisition Regulation; Removal of Sanctions Against 
Certain European Union Member States

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on an interim 
rule amending the Federal Acquisition Regulation (FAR) to remove the 
sanctions against certain European Union (EU) countries.

DATES: Effective Date: April 19, 2006.
    Comment Date: Interested parties should submit written comments to 
the FAR Secretariat on or before June 19, 2006 to be considered in the 
formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-09, FAR case 2005-
045, by any of the following methods:
    Federal eRulemaking Portal:http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov. 

Follow the instructions for submitting comments.
     Agency Web Site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm.
 Click on the FAR case number to submit comments.     E-mail: farcase.2005-045@gsa.gov. Include FAC 2005-09, FAR 
case 2005-045 in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-09, FAR 
case 2005-045, in all correspondence related to this case. All comments 
received will be posted without change tohttp://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.acqnet.gov/far/ProposedRules/proposed.htm
, including any personal and/or business 

confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. William Clark, Procurement Analyst, at (202) 219-1813. Please cite 
FAC 2005-09, FAR case 2005-045. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.


A. Background

    The USTR has issued a determination removing the sanctions against 
Austria, Belgium, Denmark, Finland, France, Ireland, Italy, Luxembourg, 
the Netherlands, Sweden, and the United Kingdom (71 FR 10093). These 
sanctions were put in place in 1993 and apply only to acquisitions not 
covered by the WTO GPA (i.e., end products with an estimated 
acquisition value less than $193,000, construction with an estimated 
acquisition value less than $7,407,000, or services that are excluded 
from coverage by the WTO GPA). These sanctions did not apply to 
acquisitions by the Department of Defense.
    This interim rule removes FAR Subpart 25.6, Trade Sanctions, and 
the clauses at FAR 52.225-15, Sanctioned European Union Country End 
Products, and 52.225-16, Sanctioned European Union Country Services, 
and other associated references in FAR Part 25.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The interim rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act,5 U.S.C. 601, et seq., because this rule 
only removes sanctions from end products from sanctioned EU countries 
with an estimated acquisition value less than $193,000, sanctioned EU 
country construction with an estimated acquisition value less than 
$7,407,000, or sanctioned EU country services that are excluded from 
coverage by the World Trade Organization Government Procurement 
Agreement. These sanctions did not apply to small business set-asides, 
to acquisitions below the simplified acquisition threshold using 
simplified acquisition procedures, or to acquisitions by the Department 
of Defense.Therefore, an Initial Regulatory Flexibility Analysis has 
not been performed. The Councils will consider comments from small 
entities concerning the affected FAR Parts 25 and 52 in accordance with 
5 U.S.C. 610. Interested parties must

[[Page 20306]]

submit such comments separately and should cite 5 U.S.C 601, et seq. 
(FAC 2005-09, FAR case 2005-045), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary because the removal of these sanctions went into effect 
March 1, 2006. However, pursuant to Public Law 98-577 and FAR 1.501, 
the Councils will consider public comments received in response to this 
interim rule in the formation of the final rule.

List of Subjects in 48 CFR Parts 25 and 52

    Government procurement.

    Dated: April 12, 2006.
Gerald Zaffos,
Director,Contract Policy Division.

Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set forth 
1. The authority citation for 48 CFR parts 25 and 52 continues to read 
as follows:

    Authority: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; 
and 42 U.S.C. 2473(c).


25.001  [Amended]

2. Amend section 25.001 by removing paragraph (d).

25.002  [Amended]

3. Amend section 25.002 in the table following the introductory 
paragraph by removing the entry ``25.6 Trade Sanctions'' and its 
corresponding line item entries and adding ``25.6 [Reserved]'' in its 

25.003  [Amended]

4. Amend section 25.003 by removing the definitions ``Sanctioned 
European Union country construction'', ``Sanctioned European Union 
country end product'', ``Sanctioned European Union country services'', 
and ``Sanctioned European Union member state''.
5. Amend section 25.501 by revising paragraph (c) to read as follows:

25.501  General.

* * * * *
    (c) Must identify and reject offers of end products that are 
prohibited in accordance with Subpart 25.7; and
* * * * *

25.502  [Amended]

6. Amend section 25.502 in paragraph (a)(1) by removing the phrase 
``sanctioned (see Subpart 25.6),''.
7. Amend section 25.503 by revising paragraph (a)(1) to read as 

25.503  Group offers.

    (a) * * *
    (1) If any part of the award would consist of prohibited end 
products (see Subpart 25.7); or
* * * * *

Subpart 25.6 [Reserved]

8. Remove and reserve Subpart 25.6.

25.1103  [Amended]

9. Amend section 25.1103 by removing paragraph (c) and redesignating 
paragraph (d) as paragraph (c).


52.212-5  [Amended]

10. Amend section 52.212-5 by revising the date of the clause to read 
``(April, 2006)''; and in paragraph (b) of the clause by removing and 
reserving paragraphs (b)(27) and (b)(28).

52.225-15 and 52.225-16  [Reserved]

11. Remove and reserve sections 52.225-15 and 52.225-16.
[FR Doc. 06-3684 Filed 4-18-06; 8:45 am]