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FAR and DFARS › FAR Part 25: Foreign Acquisition › Subpart 25.4

FAR 25.406 Israeli Trade Act.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section says that for most agencies, acquisitions of supplies valued at $50,000 or more but not above the WTO GPA threshold for supplies are covered by the Israeli Trade Act. Those agencies must evaluate offers of Israeli end products without applying Buy American statute restrictions, and the Act does not ban buying other foreign end products. It also notes that when the CAFTA-DR agreement enters into force for a country, that country is no longer treated as a Caribbean Basin country for the Caribbean Basin Trade Initiative.

Applies to: Acquisitions of supplies by most agencies, excluding certain listed agencies

What it requires

  • Evaluate offers of Israeli end products without regard to the restrictions of the Buy American statute

Key terms: Israeli Trade Act · Israeli end products · Buy American statute · WTO GPA threshold for supplies · Caribbean Basin country

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Acquisitions of supplies by most agencies are covered by the Israeli Trade Act, if the estimated value of the acquisition is $50,000 or more but does not exceed the WTO GPA threshold for supplies (see 25.402(b)). Agencies other than the Department of Defense, the Department of Energy, the Department of Transportation, the Bureau of Reclamation of the Department of the Interior, the Federal Housing Finance Board, and the Office of Thrift Supervision must evaluate offers of Israeli end products without regard to the restrictions of the Buy American statute. The Israeli Trade Act does not prohibit the purchase of other foreign end products. In accordance with Section 201 (a)(3) of the Dominican Republic—Central America—United States Free Trade Implementation Act (Pub. L. 109-53), when the CAFTA-DR agreement enters into force with respect to a country, that country is no longer designated as a beneficiary country for purposes of the Caribbean Basin Economic Recovery Act, and is therefore no longer included in the definition of “Caribbean Basin country” for purposes of the Caribbean Basin Trade Initiative.

Sections it refers to

Sections that refer to it

  • 22.1503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor.
  • 25.1101 Acquisition of supplies.

← 25.405 Caribbean Basin Trade Initiative. · 25.407 Agreement on Trade in Civil Aircraft. →

Rule changes for FAR Part 25

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 25.406 Israeli Trade Act · SpendQuery