April 23, 2009 TO: Charlotte Pipe and Foundry Wholesalers and Contractors SUBJECT: Stimulus Act “Buy America” Provision There has been some confusion in the marketplace concerning the “Buy America” provision in the American Recovery and Reinvestment Act of 2009 – or the so - called Stimulus Act .   Congress passed the bill earlier this year in an effort to jump - start the economy and support American jobs .   Included in the Stimulus Act was a very strong “Buy America” provision that mandates that “[ n]one of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States . ”   The Stimulus Act requires that the Buy American provision be applied in a manner consistent with U . S . obligations under international agreements, including free trade agreements as determined by the federal government, and provides for a government waiver under specific circumstances and upon publication of a “detailed written justification as to why the Buy American provision is being waived . ”   As you know, Charlotte Pipe and Foundry is a leading supplier of cast iron and plastic pipe and fittings .   Our 108 year - old - company is American - owned and all our cast iron and plastic products are proudly made exclusively in the United States .   Thanks to you, we employ more than 1,350 loyal, hard working Americans who produce and market these products .   We want to protect these precious jobs and ask that you support U . S . - made cast iron and plastic pipe and fittings from Charlotte Pipe and Foundry .   Many of our competitors import competing cast iron products made in other countries such as China .   Some of them have made broad claims that these foreign manufactured products are exempted from the Buy American provision and may be purchased using Stimulus Act funds, and they sometimes offer to “certify” that their products comply with various exceptions to the Buy American mandate . Contrary to many of these claims, competing products manufactured in China are subject to the Buy American provision of the Stimulus Act unless the government waives the provision based upon authorized grounds and publishes a written justification in the Federal Register within two weeks of making that determination .    Do not accept the assurances of importers of foreign manufactured products at face value . The Buy American provision in the Stimulus Act is far - reaching, and whether an exception or waiver of the provision will apply in a given instance requires careful analysis . Competing products that are manufactured in China are not exempt from the Buy American provision of the Stimulus Act by any U . S . obligation under a free trade agreement .   Moreover, the government must determine in writing that one of the waiver provisions in section 1605(b) of the Stimulus Act applies .   It is important that you carefully scrutinize the claims of importers who solicit you to purchase foreign manufactured goods with Stimulus Act funds .   For example, one manufacturer of foreign products has claimed that pursuant to an exception requiring that the Stimulus Act be enforced consistently with international trade agreements, “under NAFTA, products manufactured in Mexico, Canada and the United States must be accorded equal procurement status . ” This unqualified claim is incorrect . Federal law only affords equal consideration to goods and services from designated countries at or above specified threshold values; for instance, the threshold for construction contracts under the WTO Government Procurement Agreement is $7 . 4 million and the threshold for NAFTA is $8 . 8 million . PO Box 35430 Charlotte, NC 28235 USA 704/372 - 5030 800/438 - 6091 FAX 800/553 - 1605