TAA compliance: Crucial for Federal Contractors

18 January 2024

The Trade Agreements Act (19 U.S.C. & 2501-2581), most commonly referred to simply as the TAA, requires that U.S. government organizations only purchase finished goods that are "made or substantially transformed" in the United States or another TAA-compliant country. The country of origin of a TAA-compliant product is determined by the last substantial transformation made to the product before it is exported to the United States.

Less well known: TAA compliance not only applies to direct sales to U.S. government agencies, but also assures that end products equipped with our security systems can be used for telecommunications, payment systems, aviation and defense industries without violating procurement guidelines. This legal certainty is essential for large companies in particular, but also for all companies with a strong international presence. Many international procurement contracts, including those for technology offshoring, require compliance with the TAA guidelines.

But what exactly is the purpose of TAA?

TAA is an instrument for securing key industries. The focus is on protecting intellectual property, uninterrupted operation without external interference and national security. This applies in particular, but not exclusively, to telecommunications, network and surveillance technology.

MARX has had full vertical control over the entire manufacturing process since the beginning, 40 years ago, and is accredited as a "US Federal Subcontractor". TAA compliance is a prerequisite for this. For example, no microprocessor, no "intelligent component" and no assembly is sourced from China - including software.

With TAA compliant products you are on the safe side!

See the Regulatory Compliance section for further details on conformity declarations and certifications of our products. Or contact us for any questions.


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