Why TAA Compliance Matters

When products are being purchased for government contracts, those products must be TAA compliant. This compliance requires that the products originate in the United States or another approved country. When compliance is not met, the contract may be canceled, and hefty fines and suspension may be administered. Therefore, it is critical to ensure that products meet these requirements and that you understand the rules of TAA compliance.

What Does TAA Mean?

TAA is the Trade Agreement Act that fosters open international and fair trade. The TAA requires that all products must either be produced or have substantial transformation in the US or an approved country. A vast majority of custom power cords manufactured by StayOnline are TAA compliant and have been used by all branches of the US military, including Space Force. 

When Does TAA Apply to Products?

TAA requirements are built into every federal contact. These requirements apply only after a certain dollar threshold is met to only a particular dollar amount, which is $194,000 and above for goods and services. This does not mean, however, that you can ignore the requirements if your orders are below $194,000. Special language in the contracts stipulates that all products must be TAA compliant regardless of the cost.  StayOnline is well versed in TAA requirements and strives to ensure that their custom power cords meet or exceed TAA standards.

How to Determine If a Product is TAA Compliant

Confirming that a product is compliant with TAA is not as simple as looking for a stamp or a seal of approval. And when it comes to determining if a product has undergone a substantial transformation, ensuring TAA compliance can be even more complicated. The most effective way to determine if a product is TAA compliant is to have knowledge of every step of the supply chain and detailed knowledge of the product. Reputable manufacturers know that trying to skirt proper TAA certification will cost them more than abiding by the rules, and they work hard to demonstrate compliance in all areas so that no questions remain.

Regardless of the size of a federal contract, all products provided must be TAA compliant, and StayOnline is proud to supply custom power cords for governmental needs.

For more about TAA compliance and related issues, don't hesitate to contact our team at StayOnline. You can reach us at 888-346-4688 or sales@stayonline.com.