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Domestic Preferences – CBP Says (Again) More Than Software Download Needed to Effect a Substantial Transformation under the Trade Agreements Act

Client Alert | 1 min read | 03.16.15

In a final determination published today, Customs and Border Protection ruled that the last "substantial transformation" (and, hence, the country of origin) of a laptop occurred in a country not "designated" under the Trade Agreements Act when the "base unit" was assembled from principal components (e.g., the CPU and BIOS chip) which were also manufactured in that "non-designated country." Subsequent "download" (which CBP distinguishes from "programming") in a country "designated" under the TAA of critical software necessary for the laptop to function as a computer (e.g.,the BIOS and the Operating System, both of "designated country" origin) were insufficient to substantially transform the laptop and shift the country of origin to the "designated country" and permit sale under GSA Schedule and contracts subject to the TAA.

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Client Alert | 2 min read | 07.15.26

CMMC Phase II Suspension Requires Reconsideration of Such Requirements in Solicitations

As discussed in more detail here, the U.S. Department of War (DoW) recently issued a memorandum (Memo 26-P-1023, dated July 13, 2026) directing the immediate suspension of Cybersecurity Maturity Model Certification (CMMC) Phase II requirements (Level I and II self assessments are still permitted). Significantly, the memo directs that “all pending and future CMMC implementation milestones across DoW solicitations and contracts are held in abeyance until further notice.” Moreover, the DoW issued a memorandum on implementing these requirements (available here), directing agencies to issue amendments removing CMMC Level 2 and 3 requirements from active solicitations “as soon as practicable.” Contractors should monitor the government’s compliance with this requirement and should be prepared, if needed, to file a bid protest to protect their rights....

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