Buy American Act Law and Legal Definition

The Buy American Act (Act) is a federal legislation that requires the U.S. government to prefer U.S. made domestic products over foreign goods. However, in certain government procurements, the reliance on domestic products may be waived if the domestic product is more expensive than an identical foreign product.

Domestic end product means an unmanufactured end product mined or produced in the U.S., if the cost of its components mined, produced, or manufactured in the U.S. exceeds 50 percent of the cost of all its components.

There are four exemptions to the Buy American Act under 43 CFR 12.730, and they are:

1. Foreign products can be purchased when the head of the agency makes a determination that domestic preference would be inconsistent with public interest;

2.Foreign products can be purchased when there is non-availability of these articles because it cannot be manufactured, mined, or produced in the U.S.;

3. Foreign products can be purchased when the domestic products are sold at unreasonable cost;

4. Foreign products can be purchased specifically for commissary resale.