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Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Proposed Rules
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Alternate V.
a
Domestic end product means 1 For an end product that does not consist wholly or predominantly of iron or steel or a combination of both i An unmanufactured end product mined or produced in the United States;
or ii An end product manufactured in the United States if A The cost of its qualifying country components and its components that are mined, produced, or manufactured in the United States exceeds 55 percent of the cost of all its components. The cost of components includes transportation costs to the place of incorporation into the end product and U.S. duty whether or not a duty-free entry certificate is issued. Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic. A component is considered to have been mined, produced, or manufactured in the United States regardless of its source in fact if the end product in which it is incorporated is manufactured in the United States and the component is of a class or kind for which the Government has determined that 1 Sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States; or 2 It is inconsistent with the public interest to apply the restrictions of the Buy American statute; or B The end product is a COTS item;
or 2 For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of iron and steel not produced in the United States or a qualifying country constitutes less than 5 percent of the cost of all the components used in the end product produced in the United States or a qualifying country means that all manufacturing processes of the iron or steel must take place in the United States or a qualifying country, except metallurgical processes involving refinement of steel additives. The cost of iron and steel not produced in the United States or a qualifying country includes but is not limited to the cost of iron or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings, or forgings, not produced in the United States or a qualifying country, utilized in the manufacture of the end product and a good faith estimate of the cost of all iron or steel
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components not produced in the United States or a qualifying country, excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the explanation of cost of components in paragraph 1iiA of this definition.

Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50
percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners.

Qualifying country end product means 1 An unmanufactured end product mined or produced in a qualifying country; or 2 An end product manufactured in a qualifying country if i The cost of the following types of components exceeds 50 percent of the cost of all its components:
A Components mined, produced, or manufactured in a qualifying country.
B Components mined, produced, or manufactured in the United States.
C Components of foreign origin of a class or kind for which the Government has determined that sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States. Components of unknown origin are treated as foreign;
or ii The end product is a COTS item.

Steel means an alloy that includes at least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements.

8. Amend section 252.2257044 by a. Removing the clause date of NOV
2014 and adding DATE in its place.
b. In paragraph a i. In the definition of Commercially available off-the-shelf COTS item, redesignating paragraphs i introductory text, iA, B, and C, and ii as paragraphs 1 introductory text, 1i, ii, and iii, and 2, respectively;

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ii. In the definition of Cost of components, redesignating paragraphs i and ii as paragraphs 1 and 2, respectively;
iii. Revising the definition of Domestic construction material; and iv. Adding, in alphabetical order, the definitions of Predominantly of iron or steel or a combination of both and Steel.
c. In Alternate I
i. Removing the clause date of NOV
2014 and adding DATE in its place; and ii. In paragraph a A. In the definition of Commercially available off-the-shelf COTS item, redesignating paragraphs i introductory text, iA, B, and C, and ii as paragraphs 1 introductory text, 1i, ii, and iii, and 2, respectively;
B. In the definition of Cost of components, redesignating paragraphs i and ii as paragraphs 1 and 2, respectively;
C. Revising the definition of Domestic construction material;
D. Adding, in alphabetical order, the definition of Predominantly of iron or steel or a combination of both;
E. In the definition of SC/CASA state construction material, redesignating paragraphs i and ii as paragraphs 1
and 2, respectively; and F. Adding, in alphabetical order, the definition of Steel.
The revisions and additions read as follows:

252.2257044 Balance of Payments ProgramConstruction Material.

a
Domestic construction material means 1 For construction material that does not consist wholly or predominantly of iron or steel or a combination of both i An unmanufactured construction material mined or produced in the United States; or ii A construction material manufactured in the United States, if A The cost of its components mined, produced, or manufactured in the United States exceeds 55 percent of the cost of all its components. Components of foreign origin of the same class or kind for which nonavailability determinations have been made are treated as domestic. Components of unknown origin are treated as foreign;
or B The construction material is a COTS item; or 2 For construction material that consists wholly or predominantly of iron or steel or a combination of both,
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