Country of Origin & Buy America: Sanctions and other Prohibited Sources

Country of Origin & Buy America: Buy American Act Series 2025

Doing business with the government – not just the U.S. Government, but also state and local governments – requires companies to operate in a highly regulated arena. In recent years, the government has placed significant emphasis on contractor supply chains, including through the imposition of ever-growing and evolving domestic preferences and country of origin requirements.

Commonly referred to as “Buy America” requirements, there is no single statute or regulation governing country of origin requirements, with specific requirements changing based on a variety of factors – including contract size, type of materials purchased, the purchasing entity, and even the nature of the procurement itself. To make matters even more complicated, in certain instances “Buy America” requirements yield to international agreements, placing the U.S. free trade partners on equal footing with U.S.-based companies.

How can you know what is and what is not acceptable under your contract? How can you ensure that you are not falsely certifying compliance with a country of origin requirement that you do not understand? Join David Gallacher (Kutak Rock LLP) and Ariel Debin (Sheppard Mullin LLP) as we explore these questions in this comprehensive 9-part series navigating the complicated “Buy America” maze and exploring in depth the most common country of origin requirements under government contracts.

Throughout this series, attendees will learn about:

• The various “Buy America” and “Buy American” regimes, including recent updates over the last year;
• Country of origin tests adopted by U.S. Federal agencies, including the requirement to “manufacture” or “substantially transform” a manufactured product in a specific country;
• Requirements unique to federally-funded Infrastructure and grant programs, including new requirements imposed by the Build America, Buy America (BABA) Act and longstanding requirements under federally-funded transportation projects;
• Special rules uniquely applicable to Defense Programs, like the Berry Amendment and Specialty Metals restrictions;
• Exceptions and waivers that may be available for non-conforming products;
• The differences between a “Buy American” certification and a “Made in the U.S.A.” label on product packaging;
• How sanctions and other prohibited sources rules can affect your country of origin compliance; and
• Compliance best practices for government contractors, including tips to lower the risks of False Claims Act violations and other false certifications, exploring real-world examples.

Country of Origin & Buy America 2025 Series
Second Wednesday of the Month, 10:00-11:30am ET

• January 8 – Buy American Act
• February 12 – Trade Agreements Act
• March 12 – Build America, Buy America and Other Federal Grant Programs
• April 9 – Buy America Requirements under Federally-Funded Transportation Contracts and Programs
• May 14 – Customs and “Made in the U.S.A.” Labeling
• June 11 – DOD: The Berry Amendment
• July 9 – DOD: Specialty Metals Restrictions
• August 13 – “Buy America” Round-Up: Additional Country of Origin Requirements
• September 10 – Sanctions and other Prohibited Sources

Session 9: Sanctions and other Prohibited Sources

We have spent the last 8 sessions discussing when certain products or services receive preferential treatment based on their country of origin. In the last of our 9-part series, we flip the script, focusing on products and services that generally are banned from acquisitions and programs utilizing federal, and even state, funds. We focus on the U.S. sanctions program administered by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), and we dive deeper in to key acquisition prohibitions, such as the ban on certain covered telecommunications equipment produced by Huawei and other Chinese-owned entities, and requirements on complying with Federal Acquisition Supply Chain Security Act (FASCSA) exclusion and removal orders.

In this session, we will cover:

• Government sanctions programs, including prohibited sources;
• Updates on the Section 889 prohibition of purchasing and using certain Chinese-made telecommunications equipment;
• Updates on the ban on purchasing Chinese-origin semiconductors (beginning in December 2027);
• FASCSA exclusion and removal orders; and
• Implications of U.S. laws that sanction Chinese entities using forced labor.