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The word “Substantially” in substantially transformed used in Trade Agreements 52.225-5, is very subjective. Does it mean 95 percent or as little as 51 percent owned or controlled?

April 26, 2017agreements subjective substantially Trade transformed Used word

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The word “Substantially” in substantially transformed used in Trade Agreements 52.225-5, is very subjective. Does it mean 95 percent or as little as 51 percent owned or controlled?

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“Substantial” does not have a concrete definition in the FAR, GSAR, or from FAS Acquisition Management (AM). It is generally assumed that it is more than 50 percent transformed in a designated country. If the offeror does not know if offered products qualify as ‘substantially’ transformed they should contact the Department of Commerce for a determination.