By: Rosario M. Spaccaferro, General Counsel
In today's globalized economy, understanding the origin of your products is more critical than ever, especially when dealing with the US Federal Government. This is where the Trade Agreements Act (TAA) comes into play. This blog post will delve into the history of TAA, its importance, and how Hatch Contract Manufacturing is able to offer TAA compliant solutions to provide our customers with the highest quality products while meeting their sourcing needs.
A Brief History of TAA
The Trade Agreements Act (TAA) of 1979 was enacted to foster fair and open international trade. It says that products purchased by the US Federal Government must originate from the United States or certain countries which have trade agreements with the US (“designated countries”). This legislation aims to:
- Promote economic growth
- Protect US jobs
- Ensure fair competition between the US and its trade partners
TAA Compliance: The Importance of Country of Origin and Substantial Transformation
The legal test for TAA country of origin compliance hinges on two key concepts:
- Country of Origin: This refers to the country where an article is wholly, produced, manufactured, or if sourced from multiple countries, where it last underwent substantial transformation.
- Substantial Transformation: This occurs when an article undergoes a significant change in name, character, or use due to manufacturing, or processing into a new and different article. .
To qualify for TAA compliance, the substantial transformation must occur in the US or a designated country.
Hatch Contract Manufacturing: Your Partner in TAA Compliance
Hatch Contract Manufacturing is an Illinois-based provider of electronics manufacturing services with a strong commitment to TAA compliance. We understand the complex intricacies of sourcing and manufacturing, and we've implemented robust systems to ensure our customers can receive products that meet the stringent requirements of the TAA.
Here's how we achieve this:
- Strategic Sourcing: We leverage our global network of trusted suppliers in TAA-designated countries, USA domestic vendors, and other cost effective solutions.
- US-Based Manufacturing: Our state-of-the-art manufacturing facility and our partners in the USA allows us to help perform substantial transformation on internationally sourced components. This involves intricate processes like:
- Skilled assembly of components into new parts, subassemblies, and products
- Modification of items for use in the USA market
- Product specific and critical firmware and software development and programming
- Complex cable and harness assembly
- PCBA assembly in the USA
- And more
- Documentation and Traceability: We maintain meticulous records of our sourcing and manufacturing processes, providing complete transparency and traceability for our customers.
Benefits for Hatch Customers
By partnering with Hatch, our customers gain access to:
- Cost-Effective Solutions: We leverage global sourcing to procure high-quality components at competitive prices.
- Superior Quality: Our US-based manufacturing and stringent quality control processes ensure products of exceptional quality.
- TAA Compliance: Though every project is different, we are confident in our ability to find appropriate solutions, giving our customers peace of mind knowing their products can meet federal government requirements.
- Faster Time-to-Market: Our efficient manufacturing processes and streamlined supply chain accelerate production and delivery.
TAA compliance is not just a regulatory hurdle; it's an opportunity to support fair trade, US manufacturing, and economic growth. Hatch Contract Manufacturing is dedicated to providing our customers with TAA-compliant products that meet the highest standards of quality and performance. Hatch is built for TAA compliant solutions through our USA manufacturing using a variety of domestic and international partners. To learn more about how Hatch can work with you to produce TAA-compliant products, get in touch with our team today.
Disclaimer: This blog published by Hatch Product Development, LLC and the author is for informational purposes only and shall not be considered legal advice on any subject matter. By viewing blog posts, the reader understands there is no attorney-client relationship between the reader and author. This blog shall not be used as a substitute for legal advice from a licensed professional attorney. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the appropriate jurisdiction.
