What's the difference between the Buy American Act (BAA) and the Build America, Buy American Act (BABAA)?

• The Buy American Act (BAA) generally applies to direct federal procurement, which means purchases made by the U.S. federal government. The Build America, Buy America Act (BABAA) focuses on federal financial assistance programs, including grants, loans, and infrastructure projects. BABAA can have specific differences in its application depending on the federal agency (like the Department of Energy or Department of Transportation), as agencies may interpret or implement BABAA requirements uniquely. For more information, reference the Brief History appendix at the end of this article.

Do Asahi/America products meet the requirements of the Buy American Act (BAA)?

• Some products naturally meet the requirement, and some others must be requested by the purchasing agency through a waiver due to domestic non-availability. Some products do not meet the requirements. Components manufactured in World Trade Organization (WTO) member countries (Japan, Austria, Germany, Spain, etc.) may be purchased through Asahi/America under the Trade Agreements Act (TAA).

Do Asahi/America products meet the requirements of the Build America, Buy American Act (BABAA)?

• Some products naturally meet the requirement, and some others must be requested by the purchasing agency through a waiver due to domestic non-availability. Some products do not meet the requirements. Typically, federal financial assistance awards are not subject to international trade agreements, but this varies based on the state and agency. There are some other common limits where it is not required to get a waiver. Each federal agency will have different recommendations. Below are some common examples:

  • De Minimis Waivers: Often, a de minimis threshold allows for minor components of foreign origin to be used without a waiver if the total value of these components is relatively small compared to the total project cost. These thresholds typically cover items that make up less than 5% of the total cost of the materials used in a project, with a cap on the dollar value (often around $1 million).

  • Small Projects Exemption: For some infrastructure programs under the Infrastructure Investment and Jobs Act (IIJA) and other federal funding sources, a waiver may not be required for projects below a certain financial threshold (e.g., less than $250,000), although this too may vary by agency and specific funding conditions.

What constitutes "Made in America," according to BAA?

• The Federal Acquisition Regulations (FAR) 25.003 states that non-iron or steel products must be manufactured in the USA, and the domestic content threshold must be 60% (October 25, 2022), 65% (January 1, 2024), and 75% (January 1, 2029). However, in the event no domestic products can meet the new thresholds or the cost to acquire them would be unreasonable, there is a 55 percent fallback threshold in effect from October 25, 2022, through December 31, 2029. Iron and steel products must contain 95% domestic components.

What constitutes "Made in America," according to BABAA?

• Non-iron or steel products must be manufactured in the USA, and the domestic content threshold must be 55% of the total cost. Iron and steel products must be fully produced in the USA, from the initial production stages to the final coating process.

What can I do to make sure my customer is able to use the world-class products from Asahi/America?

• If the project is following BAA, consult Asahi/America Technical Services, and we will guide you through the WTO/TAA guidelines. If a waiver is required for BABAA, a form must be submitted by the recipient of the federal financial aid or the entity responsible for the project (engineers, project managers, etc.). 

Asahi/America has always been committed to providing our customers the highest quality products available in the market. To do so, we have partnered with the top manufacturers in the world for thermoplastic valves and piping. Asahi/America also designs, manufactures, and supports many of our products from our Massachusetts-based headquarters and Louisiana production facility.

Asahi/America is happy to assist with any of the product details needed to populate the waiver request. Please contact our Technical Services department at 781-321-5409 or asahi@asahi-america.com.