Why TAA Compliance Matters for Fiber Optic Products
When selecting a fiber optics manufacturer, you should begin by critiquing their manufacturing standards and where they source their parts. This initial step can save money and headaches in the future by optimizing your fiber optic network. Luckily, Megladon Manufacturing offers a variety of fiber optic products that are assembled in the United States with domestically sourced parts.
We are located in Austin, Texas, where we continue to manufacture high-quality fiber optic products that enhance fiber optic networks worldwide. Our product portfolio meets the strict GR-326-CORE standards developed by industry leaders to promote universal fiber optic manufacturing practices.
However, we are not content to rest on our laurels. Megladon Manufacturing takes its persistent pursuit of higher quality to farther heights by complying with the Federal Trade Agreement Act (TAA). This means we supply fiber optic products for the U.S. government by sourcing our parts from the United States or another approved country.
What is TAA?
The United States and other countries negotiated the Trade Agreements Act in 1979. One of the key features of the Act is that it limited the U.S. Government acquisition to U.S.-made products or products manufactured in designated countries. These products become known as “TAA compliant.”
A product is TAA Compliant if:
- At least 50% of its total manufacture cost originates from the United States or partner counties.
- S. manufacturers ensure that the product has undergone “substantial transformation” in the United States or partner countries.
Examples of TAA compliant countries outside the United Sates include Japan, Germany, Australia, or South Korea. Correspondingly, non-TAA compliant countries are China, Russia, and North Korea.
What does Substantial Transformation Mean?
This term means that a product underwent fundamental changes (processing, assembly, manufacturing) that adds value and results in a distinctively new product. Also, a “substantially transformed” product is considered as originating from the countries where the transformation took place.
For example, sugar from country A, flour from country B, milk from country C, and chocolate from country D are manufactured in country E to make cookies. Country E substantially transformed the products from the other countries which resulted in a new type of product.
On the other hand, if you take concentrated orange juice from country A and dilute it with water in country B, the product is not substantially transformed under TAA guidelines. No fundamental changes took place which resulted in a principally new product like in the first example.
TAA compliance, or Trade Agreements Act compliance, is a requirement that applies to certain fiber optic products sold in the United States. The TAA is a federal law that requires that products used by the U.S. government be made in the United States or in a country that has a trade agreement with the United States.
TAA compliance is important for several reasons:
- Security: By ensuring that fiber optic products used by the government are manufactured in TAA-approved countries, the TAA helps to ensure that U.S. government communications are secure and free from espionage or sabotage.
- Quality control: TAA-compliant fiber optic products are more likely to meet quality and performance standards, as they are manufactured in countries that have agreed to adhere to U.S. standards.
- Job security: TAA compliance helps to protect American jobs by requiring that government-purchased products are made in the United States or TAA-approved countries.
- Competitive pricing: In government procurement, TAA compliant product will be given priority, this can make it easier for companies that provide TAA-compliant products to win government contracts, and thus, have a competitive advantage in pricing.
When it comes to fiber optic products, TAA compliance means that the products have been manufactured, assembled, or substantially transformed in a TAA-approved country. This applies to a wide range of fiber optic products including but not limited to patch cord, pigtail, transceiver and so on.
It’s also worth noting that TAA compliance not only applies to fiber optic products but also to other electronic or IT-related products sold in the US market.
Why Choose Megladon for TAA-Compliant Fiber Optic Cables?
Getting TAA compliant fiber optic products ensures that your products meet the highest standards set by the U.S. government. For over 20 years, Megladon Manufacturing has been building high-quality fiber optics right here in Austin, Texas.
Our products and services have helped to support government, industrial, utility, and commercial projects all over the world. Check out our website to find which products work best with your fiber connectivity needs. If you would like to speak to one of our specialists about your networking needs, contact us at (512) 491-0006 or click here to reach out to our team through our website.