Trade Ultra’s technical capabilities, its advantageous location in Puerto Rico, and its commitment to quality and sustainability, make it a reliable partner for clients seeking manufacturing and assembly services.

Goods made in Puerto Rico are considered U.S. end products this fact is rooted in the Buy American Act (BAA) and associated federal regulations. Specifically, Puerto Rico is treated as part of the United States for the purposes of federal procurement under the Federal Acquisition Regulation (FAR).

Key Legal Basis:

1Buy American Act (BAA):
  • The BAA defines "domestic end products" as those that are manufactured in the United States, which includes goods made in U.S. territories like Puerto Rico.
  • Puerto Rico is part of the U.S. customs territory, so goods manufactured there are treated as if they were made in any U.S. state.
2Federal Acquisition Regulation (FAR):
  • FAR § 25.003 includes Puerto Rico and other U.S. territories in its definition of "United States" for procurement purposes.
  • This means that goods manufactured in Puerto Rico qualify as domestic products under the BAA, making them eligible for preferences in federal procurement contracts.
3Historical & Legal Precedents:
  • Various laws and legal interpretations reaffirm Puerto Rico's status within the U.S. customs territory, ensuring that its goods are treated as U.S.-made for trade and procurement purposes.

Practical Implications:

  • Goods manufactured in Puerto Rico can benefit from procurement preferences, aligning with the goals of the Buy American Act.
  • Puerto Rican manufacturers are incentivized to supply products t and compete as domestic suppliers.

In summary, the Buy American Act and its implementation through the Federal Acquisition Regulation (FAR) explicitly recognize goods made in Puerto Rico as U.S. end products.

The Federal Acquisition Regulation (FAR) includes specific provisions that recognize goods produced in Puerto Rico as U.S. end products for procurement purposes. Key regulations supporting this designation include:

1FAR 2.101 – Definitions:
  • This section defines terms used throughout the FAR.
  • The term "United States" is defined to include the 50 States, the District of Columbia, and outlying areas.
  • "Outlying areas" encompass:
    • Commonwealths:
      • Puerto Rico
      • Northern Mariana Islands
    • Territories:
      • American Samoa
      • Guam
      • U.S. Virgin Islands
    • Minor outlying islands.
  • By including Puerto Rico in these definitions, the FAR ensures that goods manufactured there are treated as domestic end products.
2FAR 25.003 – Definitions:
  • This section provides definitions related to foreign acquisition and the Buy American statute.
  • It defines "domestic end product" as:
    • An unmanufactured end product mined or produced in the United States.
    • An end product manufactured in the United States, provided the cost of its U.S. components exceeds a specified percentage of the total cost.
    • Minor outlying islands.
  • Since Puerto Rico is included in the definition of "United States," products made there qualify as domestic end products.
3FAR 52.225-1 – Buy American—Supplies:
  • This clause is inserted into solicitations and contracts to implement the Buy American statute.
  • It stipulates that only domestic end products be procured, defining them in line with FAR 25.003.
  • As Puerto Rico is part of the United States per FAR definitions, goods produced there meet the criteria for domestic end products.
These provisions collectively ensure that goods manufactured in Puerto Rico are recognized as U.S. end products, making them eligible for procurement preferences under the Buy American Act.