Preamble

The Buy American form we use for manufacturer self-certification contains the same compliance language that was on the RUS Buy American self-certification compliance document used in applications for acceptance to the retired RUS List of Materials. The language can still be found referenced in official RUS borrower guidelines documentation as the measure against which a manufacturer must determine their compliance. RUS has not yet published a form of their own design for the purpose of preemptive certification though we hope they will. If and when RUS does post a form we will use it for self-certifications and notify the manufacturers who signed our version that an official RUS version is available. In the absence of an official RUS form manufacturers should consider the likelihood that RUS will ask for additional Buy American compliance assurances from them or the borrower regarding a specific deployment at a specific date and time using program funds (as they always have through the FORM 213 and other RUS forms) as part of the loan process. The form we use is not associated with a specific deployment or a specific date in time (as RUS may require in their loan documents) but is a proactive general signal sent by manufacturers to borrowers and their engineers that this manufacturer believes on the basis of the guidance given in the Buy American Act of 1938 as amended their equipment meets the Buy American guidelines (as was its function on the RUS List of Materials) and that any future confirmation regarding Buy American compliance required by RUS could be reliably executed.

Introduction

Borrowers must know with certainty an item of equipment's compliance with the Buy American Requirement of 1938 as amended as it is a cornerstone loan obligation they must meet. listofmaterials.com assists borrowers in this crucial task by itemizing each piece of equipment's compliance status (compliance or not). We work with manufacturers, who proactively sign annual self-certifications of their equipment's compliance with the Buy American Requirement of 1938 as amended. The documents we have manufacturers sign use the same compliance language as the legacy documents RUS used to certify Buy American compliance for acceptance to the retired List of Materials.

Manufacturers benefit from this service's central repository feature. Now their equipment's self-certification compliance with the Buy American Requirement of 1938 as amended is easily accessible to RUS borrower's and a manufacturer's sales force alike. Sales people will no longer have to address Buy American compliance questions with every inquiry, and, they will all be working off the same verified documentation.

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BUY AMERICAN FOR MANUFACTURERS (those interested in getting listed)

The Buy American Certification is a unique, complex and arguably the single most critical component of a complete application for acceptance to this database (the complete application process is discussed here). We offer manufacturers two methods to file their Buy American certifications: Buy American Self-Renewal Basic Service, for manufacturers filing with no assistance from listofmaterials.com, and our Buy American Alliance Service for manufactures who want guidance on their Buy American compliance certification. These services are outlined below.

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BUY AMERICAN FOR BORROWERS

The following is a brief overview of the law and rules behind the Buy American Requirement.

Authority

The Rural Electrification Act of 1938 (June 21, 1938, ch. 554, Title IV §401, 52 Stat. 818) established the "'Buy American' Provision", as outlined below, which led to the creation of the "'Buy American' Requirement" (REA Bulletin 344-3 (telephone), July 28, 1955) also outlined below.

All loan contracts between RUS and its borrowers contain a provision requiring compliance with the Buy American Provision as is the statutory requirement. RUS FORM 213 (Rev. 2-04) must be signed by all borrowers and reads as follows (paraphrased):

RUS FORM 213 (Rev. 2-04)

With respect to compliance with the second paragraph of the Rural Electrification Act of 1938, being Title IV of the Work Relief and Public Works Appropriation Act of 1938 (Public Resolution No. 122, 75th Congress, approved June 21, 1938).

the undersigned does hereby certify that in the performance of the said contract there have been used or furnished no unmanufactured articles, materials or supplies which have not been mined or produced in the United States(3) or in any eligible country and no manufactured articles, materials or supplies which have not been manufactured in the United States or in any eligible country substantially all from articles, materials or supplies mined, produced or manufactured, as the case may be, in the United States or in any eligible country, except to the extent that compliance with the second paragraph of the Rural Electrification Act of 1938, being Title IV of the Work Relief and Public Works Appropriation Act of 1938 (Public Resolution No. 122, 75th Congress, approved June 21, 1938) has been waived by the Administrator of the Rural Utilities Service. For purposes of this certificate, an “eligible country” is any country that applies with respect to the United States an agreement ensuring reciprocal access for United States products and services and suppliers to the markets of that country, as determined by the United States Trade Representative.(4)

"Buy American" Provision (as written)

Rural Electrification Act of 1938 (June 21, 1938, ch. 554, Title IV §401, 52 Stat. 818) provided in part as follows:

In making loans pursuant to this title and pursuant to the Rural Electrification Act of 1936, the Secretary of Agriculture shall require that, to the extent practicable and the cost of which is not unreasonable, the borrower agree to use in connection with the expenditure of such funds only such unmanufactured articles, materials, and supplies, as have been mined or produced in the United States or in any eligible country, and only such manufactured articles materials, and supplies as have been manufactured in the United States or in any eligible country substantially all from articles, materials, or supplies mined, produced, or manufactured, as the case may be, in the United States or in any eligible country. For purposes of this section, an 'eligible country', is any country that applies with respect to the United States an agreement ensuring reciprocal access for United States products and services and United States suppliers to the markets of that country, as determined by the United States Trade Representative.

(As amended by the North American Free Trade Agreement Implementation Act December 8, 1993, Public Law 103-182, Title III, Subtitle G. §381(d), 107 Stat. 2129, and further amended October 13, 1994, Public Law 103-354, Title II, Subtitle C, §235(b)(3), 108 Stat. 3221; December 8, 1994, Public Law 103-465, Title III, Subtitle E, §342(g), 108 Stat. 4954; 7 U.S.C. 903 note.)

REA Bulletin 344-3 Preamble (Telecom) UNITED STATES DEPARTMENT OF AGRICULTURE, Rural Electrification Administration, July 28, 1955 (abridged)

REA Bulletin 43-9 (Electrification)" 344-3 (Telephone)" "Buy American Requirement", deals with compliance with "Buy American" provisions of the Rural Electrification Act of 1936, as amended.

In the past, it was necessary, with few exceptions, for borrowers to obtain special authorization from REA when purchasing foreign articles, materials and supplies. It will no longer be necessary to do so if:

1. The articles" materials and supplies are determined by the borrower to be manufactured “substantially all" from articles, materials or supplies mined, produced or manufactured in the United States, under the test applied in paragraph IV. B., that is" that the cost of the products of foreign origin used therein constitutes less than fifty percent of the cost thereof; or

2. The six percent price differential of paragraph IV. C. exists, in the case of articles, materials and supplies determined to be of foreign origin under paragraph IV. B.

Borrowers may request specific authorization from REA for the purchase of foreign products not meeting one or the other of the above conditions.