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What Are U.S. Goods and Services?

MDCP is designed to "develop, maintain and expand foreign markets for nonagricultural U.S. goods and services." (See 15 USC 4723.) Definitions below are provided to guide MDCP applicants, U.S. exporters wishing to participate in MDCP project activity, the Department, and any other relevant entities in determining what constitutes goods and services produced in the United States that can be the object of MDCP project activity. The definitions are provided in an order most likely to be helpful in making the determiniation.

 


     1. Goods
     Tangible goods.


     2. Services
     Economic activities whose outputs are other than tangible goods.


     3. Non-Agricultural Goods and Services
     The term "Non-agricultural goods and services" means goods and services other than agricultural products as defined in 7 U.S.C. 451. This definition includes  "agricultural, horticultural, viticultural, and dairy products, livestock and the products thereof, the products of poultry and bee raising, the edible products of forestry, and any and all products raised or produced on farms and processed manufactured products thereof transported or intended to be transported in interstate and/or foreign commerce."


     4. Produce
     To manufacture or create economic goods and services; to create by physical or mental effort a service which has value.


     5. Product
     The term "product" refers to a U.S. non-agricultural good.


     6. Manufacture
     To make or process a material into a different product; to make or process a product with industrial machines.


     7. United States Exporter 
     This term, which may appear abbreviated as "U.S. exporter" or simply as "exporter," means an entity that:
          a. Is one of the following: (1) a United States citizen; (2) a corporation, partnership or other association created under the laws of the United States or of any State within the United States; or (3) a foreign corporation, partnership, or other association, more than 95 percent of which is owned by persons described in (1) and (2) above; AND
          b. Exports or seeks to export, goods or services produced in the United States.


     8. Goods and Services Produced in the United States 
     Goods and services produced in the United States must be either:
     a. Produced or manufactured in the United States (of United States origin as defined in VIII.H.); or,
     b. If produced or manufactured outside of the United States, marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the product or service being exported.
     For any special considerations, the cooperator works with members of its ITA-MDCP team, including Commercial Service staff, to determine whether or not the product or service should be considered as having been "produced in the United States."


     9. United States Origin 
     In defining goods and services produced in the United States, "United States origin" describes goods or services produced in the United States that are:
          a. Goods that are produced or manufactured in the United States, including technology and software;
          b. Commodities of foreign origin that have been changed in the United States, including changes made in a U.S. Foreign Trade Zone, from the form in which they were imported, or that have been enhanced in value or improved in condition by further processing or manufacturing in the United States; or
          c. Services that are provided: (1) from the territory of the United States into the territory of another country; (2) in the territory of the United States to a service consumer of another country; or (3) by a United States service supplier, through the presence of United States natural persons in another country.


     10. Goods and Services That Have at Least 51 Percent U.S. Content But Not of United States Origin 
     If goods and services cannot be found to be "of United States origin" as defined above under VIII.H.9. they may be found to be goods and services produced in the United States if they have at least 51 percent U.S. content as set forth below in VIII.H.11. Alternative U.S. Content Policy of 51 Percent.


     11. Alternative U.S. Content Policy of 51 Percent 
     Goods and services can be found to have U.S. (United States) content of 51 percent based on the following definitions.
          a. U.S. content for manufactured goods = (ex-factory price of a good) - (aggregate value contributed by non-U.S. or foreign sources). For example, non-U.S. or foreign sources include costs or payments to foreign suppliers/providers/employees not resident in the United States.
          b. U.S. content for services = (contract value of the service whether delivered in the United States or abroad) - (aggregated value contributed by non-U.S. or foreign sources). For example, non-U.S. or foreign sources include costs or payments to foreign suppliers/providers/employees not resident in the United States.
          c. The "ex-factory price of a good" and "contract value of the service" should reflect the actual price paid or payable for the goods or services. No additions to ex-factory price or contract value based on costs or other expenses are therefore appropriate.


     12. Self Certification
     Whether an entity seeking to participate in MDCP project activity is eligible should be determined using the required self-certification which appears on every MDCP success agreement. The wording of this self-certification is set forth below.
     I certify that I am, that my company is, or that I or my company represents: (a) a United States citizen; (b) a corporation, partnership or other association created under the laws of the United States or of any State; or (c) a foreign corporation, partnership, or other association, more than 95 percent of which is owned by persons described in (a) and (b) above; AND I am, my company is, or the entity I or my company represents is, exporting, or seeks to export goods or services produced in the United States, or goods or services that contain at least 51 percent U.S. content.
     I understand that this certification is a requirement to participate in the MDCP project activity described above and that an intentionally false certification may result in termination of participation in such activity.
     Information provided to the International Trade Administration (ITA) is intended solely for internal use. ITA will protect business confidential information to the full extent permitted by law and Administration policy. U.S. law prohibits U.S. government employees from disclosing trade secrets.


     13. Self Certification: Participation Agreement versus Success Agreement 
     In its participation agreements the Commercial Service uses a self-certification regarding goods and services produced in the United States. This is similar to the self-certification required in an MDCP success agreement, however, for the participation agreement, the purpose of the self certification is to determine the eligibility for receiving fee-based export promotion services. In the MDCP success agreement the purpose is to determine eligibility for participation in MDCP project activity.


     14. United States Goods and Services 
     This term, which may appear abbreviated as "U.S. goods and services," is the same as "goods and services produced in the United States."

The administration of the policy is based primarily on self-certification. Entities that seek to participate in MDCP project activity should certify that they are exporters of U.S. goods or services when they sign up to participate in MDCP project activity. Self-certification language is normally included in the success agreement. (See page 25 of the mock application.)

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