We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding the Product of a Foreign Country in Legal Context
Definition & Meaning
A product of a foreign country refers to construction materials that are brought to a construction site for use in a public works project. According to federal regulations, a product is considered to be produced in a foreign country if more than fifty percent of its total production cost is attributed to activities conducted in that foreign country. This definition is important for ensuring compliance with procurement laws regarding foreign goods.
Table of content
Legal Use & context
The term "product of a foreign country" is primarily used in the context of public works contracts and procurement regulations. It plays a significant role in federal contracting, particularly under laws that restrict the use of goods from countries that do not provide fair market access to U.S. contractors. Legal practitioners may encounter this term in civil law, especially in cases involving contracts, procurement disputes, and compliance issues. Users can manage related forms and procedures through resources like US Legal Forms, which provide templates drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A construction company sources steel beams from a manufacturer in Canada. If the cost of producing these beams in Canada exceeds fifty percent of the total cost, they are considered products of a foreign country.
Example 2: A contractor uses tiles imported from Italy for a public works project. If the production costs in Italy are more than fifty percent of the total cost, these tiles fall under the definition of a product of a foreign country.
State-by-state differences
Examples of state differences (not exhaustive)
State
Specific Regulations
California
California has additional requirements for public contracts that may affect foreign products.
Texas
Texas allows certain exemptions for foreign products under specific conditions.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Domestic product
Goods produced within the United States.
Domestic products do not fall under the same procurement restrictions as foreign products.
Foreign goods
Any products manufactured outside the United States.
Not all foreign goods are considered products of a foreign country for procurement purposes.
Common misunderstandings
What to do if this term applies to you
If you are involved in a public works project and are unsure whether your materials qualify as products of a foreign country, consider the following steps:
Review the production costs of your materials to determine if they meet the fifty percent threshold.
Consult with a legal professional to ensure compliance with procurement regulations.
Explore US Legal Forms for templates that can assist you in navigating procurement processes.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.