FAR 52.225-7—Waiver of Buy American Statute for Civil Aircraft and Related Articles.
Plain-English Summary
FAR 52.225-7 is a solicitation provision that tells offerors when the Buy American statute does not apply to certain civil aviation procurements because the United States Trade Representative has waived it for countries that are parties to the Agreement on Trade in Civil Aircraft. The provision defines the scope of "civil aircraft and related articles," including civil aircraft themselves, engines, engine parts and components, other aircraft parts, components, and subassemblies, and ground flight simulators and their parts and components used with those aircraft. It also explains which countries are covered by the waiver, how to determine whether an article is a "product of" one of those countries through wholly obtained or substantially transformed status, and that the waiver can be modified or withdrawn by the U.S. Trade Representative. In practice, this provision matters because it changes sourcing rules for covered civil aviation acquisitions and can make foreign-origin items from listed countries acceptable even when the Buy American statute would otherwise restrict them. Contractors need to understand the country-of-origin rules and the exact scope of covered items, while contracting officers need to ensure the provision is used only when prescribed and that offer evaluations reflect the current waiver status.
Key Rules
Civil aircraft scope
The waiver applies only to "civil aircraft and related articles" as defined in the provision. That definition includes civil aircraft not purchased for DoD or Coast Guard use, their engines and engine parts, other aircraft parts and subassemblies, and ground flight simulators and related parts and components used with those aircraft.
Covered countries only
The Buy American waiver applies to acquisitions from countries that are parties to the Agreement on Trade in Civil Aircraft, and the provision lists those countries. Items from non-listed countries are not covered by this waiver and may remain subject to the Buy American statute or other applicable domestic preference rules.
Product-of-country test
An article counts as a product of a covered country only if it is wholly the growth, product, or manufacture of that country, or if foreign materials have been substantially transformed there into a new and different article with a distinct name, character, or use. This is the origin test used to determine whether the waiver applies to a particular item.
Waiver can change
The waiver is not permanent in all circumstances; it is subject to modification or withdrawal by the U.S. Trade Representative. Offerors and contracting officers must therefore rely on the waiver as it exists at the time of the acquisition and should verify current applicability before award.
No DoD or Coast Guard aircraft
The definition expressly excludes aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard. Those procurements are outside this provision’s civil aircraft waiver and may be governed by different domestic preference or specialty procurement rules.
Duty-free status not controlling
The provision states that the civil aircraft and related articles definition applies without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act. In other words, tariff treatment and Buy American waiver coverage are related but separate questions.
Responsibilities
Contracting Officer
Insert this provision when prescribed by FAR 25.1101(d), ensure the solicitation accurately reflects the civil aircraft waiver, and verify that the acquisition falls within the defined scope and current waiver status. The contracting officer should also evaluate whether the offered items are products of covered countries under the provision’s origin test.
Contractor/Offeror
Determine whether offered aircraft or related articles qualify as civil aircraft and related articles, confirm whether the items are products of a covered country, and structure proposals and supply chains accordingly. The contractor should not assume the waiver applies based only on foreign manufacture; it must fit the country and origin requirements in the provision.
U.S. Trade Representative
Maintain, modify, or withdraw the waiver for civil aircraft and related articles under the Agreement on Trade in Civil Aircraft. Any change in waiver status affects whether the Buy American statute is waived for future acquisitions.
Agency/Requirement Owner
Identify whether the requirement is for civil aircraft or related articles and whether the end use is outside DoD or Coast Guard use. The agency must coordinate with the contracting officer so the correct procurement preference regime is applied.
Practical Implications
This provision can materially expand acceptable sources for civil aviation buys, but only for the exact items and countries covered by the waiver. A common mistake is assuming all aircraft-related items are exempt when the definition is narrower than it first appears.
Country of origin matters as much as product type. An item made in a covered country may still fail the test if it is not wholly produced there or substantially transformed there.
Contractors should document origin carefully, especially for engines, components, and subassemblies that may contain multinational content. Weak origin support can lead to evaluation problems or post-award compliance issues.
Contracting officers should confirm the waiver is still in effect and that the solicitation is not for DoD or Coast Guard aircraft, because those are expressly excluded from the definition.
Do not confuse this waiver with tariff or customs treatment. An item may be duty-free, but that alone does not establish waiver coverage; the provision’s own definition and country-of-origin rules control.
Official Regulatory Text
As prescribed in 25.1101 (d) , insert the following provision: Waiver of Buy American Statute for Civil Aircraft and Related Articles (Feb 2016) (a) Definition . "Civil aircraft and related articles," as used in this provision, means- (1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard; (2) The engines (and parts and components for incorporation into the engines) of these aircraft; (3) Any other parts, components, and subassemblies for incorporation into the aircraft; and (4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft, and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act. (b) The U.S. Trade Representative has waived the Buy American statute for acquisitions of civil aircraft and related articles from countries that are parties to the Agreement on Trade in Civil Aircraft. Those countries are Albania, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Macao China, Malta, Montenegro, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan (Chinese Taipei), and the United Kingdom. (c) For the purpose of this waiver, an article is a product of a country only if- (1) It is wholly the growth, product, or manufacture of that country; or (2) In the case of an article that consists in whole or in part of materials from another country, it has been substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. (d) The waiver is subject to modification or withdrawal by the U.S. Trade Representative. (End of provision)