Defense Federal Acquisition Regulation Supplement: Restriction on Certain Metal Products (DFARS Case 2021-D015), 25609-25612 [2023-08646]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 88, Number 81 (Thursday, April 27, 2023)]
[Proposed Rules]
[Pages 25609-25612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08646]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2023-0018]
RIN 0750-AL33


Defense Federal Acquisition Regulation Supplement: Restriction on 
Certain Metal Products (DFARS Case 2021-D015)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a section of the National 
Defense Authorization Act for Fiscal Year 2021 that provides 
restrictions on the acquisition of certain covered materials from North 
Korea, the People's Republic of China, Russia, and Iran.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before June 26, 2023, to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2021-D015, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for ``DFARS Case 2021-D015.'' Select ``Comment'' and follow the 
instructions to submit a comment. Please include your name, company 
name (if any), and ``DFARS Case 2021-D015'' on any attached documents.
    [cir] Email: [email protected]. Include DFARS Case 2021-D015 in 
the subject line of the message.
    Comments received generally will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Kimberly Bass, telephone 703-717-3446.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to revise the DFARS to implement section 844 of 
the National Defense Authorization Act for Fiscal Year 2021 (Pub. L. 
116-283). Section 844 amends 10 U.S.C. 2533c (redesignated 10 U.S.C. 
4872) and removes from the restriction ``material melted'' and replaces 
it with ``material mined, refined, separated, melted''. In addition, 
the reference to ``tungsten'' is removed and replaced with ``covered 
material'' in the exception for commercially available-off-the-shelf 
(COTS) items to the restriction of 50 percent or more by weight. The 
new restriction in the proposed rule will go into effect on January 1, 
2026.

II. Discussion and Analysis

A. Restriction

    The proposed rule would revise the restriction on the acquisition 
of covered materials melted or produced in the Democratic People's 
Republic of North Korea, the People's Republic of China, the Russian 
Federation, or the Islamic Republic of Iran at DFARS 225.7018-2(a), to 
include a reference to the end date of the current restriction 
effective through December 31, 2025, at paragraph (a)(1). The revision 
also states that the new restriction at paragraph (a)(2) for the 
covered materials becomes effective on January 1, 2026. The term 
``covered materials,'' already defined at DFARS 225.7018-1, means 
samarium-cobalt magnets, neodymium-iron-boron magnets, tantalum metals 
and alloys, tungsten metal powder, and tungsten heavy alloy or any 
finished or semi-finished component containing tungsten heavy alloy.
    DFARS 225.7018-2(b)(2) is added to reflect the restriction 
effective on January 1, 2026, for samarium-cobalt magnets to convey 
that the new restriction will include the entire supply chain from 
mining or production of a cobalt and samarium ore or feedstock, 
including recycled material, through production of finished magnets. 
Accordingly, paragraph (b)(1) was revised to reflect the end date of 
the current restriction for samarium-cobalt magnets and neodymium-iron-
boron magnets on December 31, 2025. In addition, revisions at DFARS 
225.7018-2(b)(4) include the new restriction for neodymium-iron-boron 
magnets covering the entire supply chain effective on January 1, 2026.
    Paragraph (c)(1) adds the end date of the current restrictions for 
tantalum metals and alloys, effective through December 31, 2025. DFARS 
225.7018-2(c)(2) implements the new restriction for the production of 
tantalum metals and alloys effective on January 1, 2026. DFARS 
225.7018-2(d)(2) implements the new restriction for the production of 
tungsten metal powder, tungsten heavy alloy, or any finished or semi-
finished component containing tungsten heavy alloy in effect on January 
1, 2026. Paragraph (d)(1) adds the end date of the current restrictions 
for tungsten metal powder, tungsten heavy alloy, or any finished or 
semi-finished component containing tungsten heavy alloy, effective 
through December 31, 2025.

B. Exceptions

    The proposed rule at 225.7018-3(c)(1)(i) revises the COTS items 
exception to the restriction of 50 percent or more by weight to include 
all covered material and removes the individual exception for tungsten. 
Subsequently, the restriction was revised at DFARS 225.7018-
3(c)(1)(i)(A) to add the end date of the current restriction of 50 
percent or more tungsten by weight, effective through December 31, 
2025. In addition, the new COTS items exception is added at 
(c)(1)(i)(B) to implement the new restriction for 50 percent or more 
covered material by weight effective on January 1, 2026. The proposed 
rule at DFARS 225.7018-3(c)(1)(ii) revises the current COTS items 
exception to reflect the restriction effective through December 31, 
2025.
    DFARS 225.7018-3(c)(1)(iii) is added to implement the COTS items 
exception for the new restriction on a covered material that is a mill 
product such as bar, billet, slab, wire, cube, sphere, block, blank, 
plate, or sheet, that has not been incorporated into an end item, 
subsystem, assembly, or component, to be effective on January 1, 2026.

[[Page 25610]]

C. Contract Clause Revision

    The clause at DFARS 252.225-7052, Restriction on the Acquisition of 
Certain Magnets, Tantalum, and Tungsten, is revised to incorporate 
conforming revisions at paragraph (b)(1)(i) for the current restriction 
with the end date; and the new statutory restriction with the effective 
date is in paragraph (b)(1)(ii). The current restriction for samarium-
cobalt magnets and neodymium-iron-boron magnets at paragraph 
(b)(2)(i)(A) includes a reference to the end date of December 31, 2025, 
and the new restriction is implemented at paragraph (b)(2)(B) effective 
on January 1, 2026. The COTS items exceptions to the restriction are 
included in paragraphs (c)(1)(ii)(A)(1) and (2) in accordance with 
section 844 of the NDAA for FY 2021 and 10 U.S.C. 4872.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Products, Including Commercially 
Available Off-the-Shelf (COTS) Items, and Commercial Services

    This proposed rule includes amendments to the clause at DFARS 
252.225-7052, Restriction on the Acquisition of Certain Magnets, 
Tantalum, and Tungsten. However, this proposed rule does not impose any 
new requirements on contracts at or below the SAT or for commercial 
products, including COTS items. DFARS 252.225-7052 does not apply to 
acquisitions at or below the SAT, in accordance with 41 U.S.C. 1905, 
but applies to contracts for the acquisition of commercial products, 
including COTS items, except as provided in the statute at 10 U.S.C. 
4872(c)(3). DoD has previously signed a determination of applicability 
of 10 U.S.C. 4872 to acquisitions of commercial items, except for COTS 
items to the extent exempted in the statute.

IV. Expected Impact of the Rule

    This proposed rule is expected to have an impact on the Government 
and industry because this rule significantly expands the scope of 
compliance in accordance with section 844 of the NDAA for FY 2021 and 
10 U.S.C. 4872.
    The current restriction at DFARS 225.7018-2 covers the melting of 
precursor metals (e.g., samarium metal and cobalt metal) to produce 
alloys (e.g., samarium-cobalt alloy) and other equivalent processes 
(e.g., atomization, calcination and reduction, or final consolidation 
of non-melt derived metal powders). One of the materials covered by 
this proposed rule at 225.7018-2 and the clause at DFARS 252.225-7052, 
Restriction on the Acquisition of Certain Magnets, Tantalum, and 
Tungsten, is also covered by longstanding restrictions for the 
acquisition of specialty metals at DFARS 225.7003-2 (10 U.S.C. 4875) 
and under the clause at DFARS 252.225-7009, Restriction on Acquisition 
of Specialty Metals, that includes the same coverage of production 
steps (e.g., melt or produce).
    This proposed rule expands the scope of product coverage to all 
upstream mining, refining, separation, and melting of covered 
materials. Taken together with the overlapping restriction on specialty 
metals at DFARS 225.7003-2 and the clause at DFARS 252.225-7009, 
Restriction on Acquisition of Specialty Metals, covered materials that 
are compliant with the specialty metals clause may not be compliant 
with the current restriction at DFARS 225.7018-2 or the clause at DFARS 
252.225-7052, Restriction on the Acquisition of Certain Magnets, 
Tantalum, and Tungsten, nor are they likely to be compliant with this 
proposed rule.
    For example, assume that a contractor purchases a component from a 
United Kingdom-based supplier, and the assembly contains a samarium-
cobalt magnet manufactured in China. This component would be compliant 
with the specialty metals clause, because the specialty metals clause 
exempts qualifying country components. However, this proposed rule has 
no exemption for qualifying country components, and thus the assembly 
would be noncompliant with the current restriction at DFARS 225.7018-2 
and the clause at DFARS 252.225-7052, Restriction on the Acquisition of 
Certain Magnets, Tantalum, and Tungsten, in its current form and as 
proposed.
    Further, assume that a company purchases a motor from a U.S. 
manufacturer, and that U.S. motor manufacturer purchases a magnet from 
a U.S. company. The U.S. magnet company purchases cobalt metal and 
samarium metal from China, and these metals are melted in the United 
States. This magnet would be compliant with both the restriction 
required by the specialty metals clause at DFARS 252.225-7009 and the 
current restriction at DFARS 225.7018-2 and the clause at DFARS 
252.225-7052. However, this magnet would not be compliant with the 
proposed rule requirements effective on January 1, 2026.
    Further, assume that a company produces business jets and modifies 
them for military use. During a given year, the business jet 
manufacturer purchases 50 percent of its samarium-cobalt magnet needs 
from a U.S. source that mines and conducts all subsequent processing 
steps in the United States. The balance of the company's samarium-
cobalt magnets are procured from Chinese sources and the company 
commingles domestically and Chinese-produced magnets on its production 
line. In this scenario, the modified business jet is compliant with the 
restriction at DFARS 225.7003-2 and the clause at DFARS 252.225-7009, 
because it is a commercial derivative military article, and the company 
procures 50 percent of its total needs from a domestic source. However, 
the modified business jet is potentially noncompliant with the proposed 
rule, given the commingling of Chinese and U.S. samarium-cobalt magnets 
in each aircraft.
    Notwithstanding the significant change in scope, DoD notes that 
Congress enacted this requirement on January 1, 2021, through Public 
Law 116-283. This five-year phase-in period provides a reasonable 
period for industry to develop alternative sources of supply for 
covered materials from sources other than the People's Republic of 
China, the Russian Federation, the Democratic People's Republic of 
North Korea, and the Islamic Republic of Iran.
    DoD also notes that it has invested and continues to invest in 
domestic supply chains for covered materials, such as light and heavy 
rare earth elements and rare earth magnet manufacture, using 
authorities under 50 U.S.C. 4533 and 10 U.S.C. 4817 among others. For 
those materials not currently covered by DoD investments, such as 
tantalum and tungsten, publicly traded U.S. companies, including DoD 
contractors and their subcontractors, already are required to conduct 
supply chain due diligence on these minerals when they are necessary to 
the functionality or production of a product manufactured by that 
company. This requirement stems from section 1502 of Public Law 111-203 
(implemented at 17 CFR 240.13p-1) to ensure that such minerals are not 
supporting armed conflict in the Democratic Republic of Congo and 
adjoining countries.
    The principal benefit of this proposed rule is continuing to 
transition the defense industrial base toward the procurement of 
strategic and critical materials from sources other than North Korea, 
Russia, Iran, or the People's Republic of China, with the latter 
constituting the pacing challenge identified in the National Defense 
Strategy. Russia is a major producer and exporter of a wide array of 
strategic and critical materials, and the extreme

[[Page 25611]]

volatility in these markets since Russia's invasion of Ukraine 
demonstrates the national security imperative to build resilience into 
supply chains for covered materials of this proposed rule.

V. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

VI. Regulatory Flexibility Act

    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
However, an initial regulatory flexibility analysis has been performed 
and is summarized as follows:
    This proposed rule is required to implement section 844 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 
(Pub. L. 116-283), which amends 10 U.S.C. 2533c (now 10 U.S.C. 4872) to 
revise the restriction on the acquisition of covered materials melted 
or produced in any covered country (i.e., North Korea, the People's 
Republic of China, Russia, or Iran) to include covered materials mined, 
refined, separated, melted, or produced. In addition, it revises the 
commercially available off-the-shelf (COTS) items exception to the 
restriction of 50 percent or more by weight to now include all covered 
material and remove the individual exception to only tungsten. The term 
``covered materials,'' already defined in the statute and at DFARS 
225.7018-1, means samarium-cobalt magnets, neodymium-iron-boron 
magnets, tantalum metals and alloys, tungsten metal powder, and 
tungsten heavy alloy or any finished or semi-finished component 
containing tungsten heavy alloy.
    The objective of the proposed rule is to implement section 844 of 
the NDAA for FY 2021. The legal basis for this proposed rule is 10 
U.S.C. 4872, as amended by section 844 of the NDAA for FY 2021.
    Based on data from the Federal Procurement Data System for FY 2020, 
2021, and 2022, DoD awarded in the United States 22,729 contracts that 
exceeded the simplified acquisition threshold of $250,000 and were for 
the acquisition of manufactured end products, excluding those 
categories that could not include restricted metals (such as clothing 
and fabrics, books, or lumber products). These contracts were awarded 
to a total of 2,070 unique entities, of which 1,624 were unique small 
entities; contracts were awarded to a median of 527 unique small 
entities per year. It is not known what percentage of these awards 
involved the specific covered materials from China, North Korea, 
Russia, or Iran.
    There are no projected reporting or recordkeeping requirements. 
However, there may be compliance costs to track the origin of covered 
materials.
    The proposed rule does not duplicate, overlap, or conflict with any 
other Federal rules.
    DoD is exempting acquisitions equal to or less than the simplified 
acquisition threshold in accordance with 41 U.S.C. 1905. DoD was unable 
to identify any other alternatives that would reduce burden on small 
businesses and still meet the objectives of the statute.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2021-D015), in 
correspondence.

VII. Paperwork Reduction Act

    This proposed rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 225 and 252 are proposed to be amended as 
follows:

0
1. The authority citation for parts 225 and 252 continues to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION

0
2. Add section 225.7018-0 to read as follows:


225.7018-0  Scope.

    This section implements 10 U.S.C. 4872.
0
3. Revise section 225.7018-2 to read as follows:


225.7018-2  Restriction.

    (a) General. Except as provided in 225.7018-3 and 225.7018-4--
    (1) Effective through December 31, 2025, do not acquire any covered 
material melted or produced in any covered country, or any end item, 
manufactured in any covered country, that contains a covered material; 
and
    (2) Effective January 1, 2026, do not acquire any covered material 
mined, refined, separated, melted, or produced in any covered country, 
or any end item, manufactured in any covered country, that contains a 
covered material. (Section 844, Pub. L. 116-283; 10 U.S.C. 4872.)
    (b) Samarium-cobalt magnets and neodymium-iron-boron magnets. (1) 
Effective through December 31, 2025, for samarium-cobalt magnets and 
neodymium-iron-boron magnets, this restriction includes--
    (i) Melting samarium with cobalt to produce the samarium-cobalt 
alloy or melting neodymium with iron and boron to produce the 
neodymium-iron-boron alloy; and
    (ii) All subsequent phases of production of the magnets, such as 
powder formation, pressing, sintering or bonding, and magnetization.
    (2) Effective January 1, 2026, for samarium-cobalt magnets this 
restriction includes the entire supply chain from mining or production 
of a cobalt and samarium ore or feedstock, including recycled material, 
through production of finished magnets, except as provided at 225.7018-
3.
    (3) The restriction on melting and producing of samarium-cobalt 
magnets is in addition to any applicable restrictions on melting of 
specialty metals at 225.7003 and the clause at 252.225-7009, 
Restriction on Acquisition of Certain Articles Containing Specialty 
Metals.
    (4) Effective January 1, 2026, for neodymium-iron-boron magnets, 
this restriction includes the entire supply chain from mining of 
neodymium, iron, and boron through production of finished magnets, 
except as provided at 225.7018-3.
    (c) Tantalum metals and alloys. (1) Effective through December 31, 
2025, for production of tantalum metals of any

[[Page 25612]]

kind and alloys, this restriction includes the reduction or melting of 
any form of tantalum to create tantalum metal including unwrought, 
powder, mill products, and alloys. The restriction also covers all 
subsequent phases of production of tantalum metals and alloys.
    (2) Effective January 1, 2026, for production of tantalum metals of 
any kind and alloys, this restriction includes mining or production of 
a tantalum ore or feedstock, including recycled material, through 
production of metals of any kind and alloys, except as provided at 
225.7018-3.
    (d) Tungsten metal powder and tungsten heavy alloy. (1) Effective 
through December 31, 2025, for production of tungsten metal powder and 
tungsten heavy alloy, this restriction includes--
    (i) Atomization;
    (ii) Calcination and reduction into powder;
    (iii) Final consolidation of non-melt derived metal powders; and
    (iv) All subsequent phases of production of tungsten metal powder, 
tungsten heavy alloy, or any finished or semi-finished component 
containing tungsten heavy alloy.
    (2) Effective January 1, 2026, for production of tungsten metal 
powder, tungsten heavy alloy, or any finished or semi-finished 
component containing tungsten heavy alloy, this restriction includes 
mining or production of a tungsten ore or feedstock, including recycled 
material, through production of tungsten metal powders, except as 
provided at 225.7018-3.
0
4. Amend section 225.7018-3--
0
a. By revising paragraph (c)(1); and
0
b. In paragraph (d)(1) by removing ``this contract;'' and adding ``the 
contract;'' in its place.
    The revision reads as follows:


225.7018-3  Exceptions.

* * * * *
    (c) * * *
    (1) A commercially available off-the-shelf item (but see PGI 
225.7018-3(c)(1) with regard to commercially available samarium-cobalt 
magnets), other than--
    (i) A commercially available off-the-shelf item that is--
    (A) 50 percent or more tungsten by weight effective through 
December 31, 2025; or
    (B) 50 percent or more covered material by weight effective January 
1, 2026;
    (ii) Effective through December 31, 2025, a tantalum metal, 
tantalum alloy, or tungsten heavy alloy mill product, such as bar, 
billet, slab, wire, cube, sphere, block, blank, plate, or sheet, that 
has not been incorporated into an end item, subsystem, assembly, or 
component; or
    (iii) Effective January 1, 2026, a covered material that is a mill 
product such as bar, billet, slab, wire, cube, sphere, block, blank, 
plate, or sheet, that has not been incorporated into an end item, 
subsystem, assembly, or component; or
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Amend section 252.225-7052 by revising the clause date and 
paragraphs (b) and (c)(1) to read as follows:


252.225-7052  Restriction on the Acquisition of Certain Magnets, 
Tantalum, and Tungsten.

* * * * *

Restriction on the Acquisition of Certain Magnets, Tantalum, and 
Tungsten (Date)

* * * * *
    (b) Restriction. (1) Except as provided in paragraph (c) of this 
clause--
    (i) Effective through December 31, 2025, the Contractor shall 
not deliver under this contract any covered material melted or 
produced in any covered country, or any end item, manufactured in 
any covered country, that contains a covered material; and
    (ii) Effective January 1, 2026, the Contractor shall not deliver 
under this contract any covered material mined, refined, separated, 
melted, or produced in any covered country, or any end item, 
manufactured in any covered country, that contains a covered 
material (section 844, Pub. L. 116-283; 10 U.S.C. 4872).
    (2)(i)(A) Effective through December 31, 2025, for samarium-
cobalt magnets and neodymium-iron-boron magnets, this restriction 
includes--
    (1) Melting samarium with cobalt to produce the samarium-cobalt 
alloy or melting neodymium with iron and boron to produce the 
neodymium-iron-boron alloy; and
    (2) All subsequent phases of production of the magnets, such as 
powder formation, pressing, sintering or bonding, and magnetization.
    (B) Effective January 1, 2026, for samarium-cobalt magnets this 
restriction includes the entire supply chain from mining or 
production of a cobalt and samarium ore or feedstock, including 
recycled material, through production of finished magnets.
    (ii) The restriction on melting and producing of samarium-cobalt 
magnets is in addition to any applicable restrictions on melting of 
specialty metals if the clause at 252.225-7009, Restriction on 
Acquisition of Certain Articles Containing Specialty Metals, is 
included in the contract.
    (3) Effective January 1, 2026, for neodymium-iron-boron magnets, 
this restriction includes entire supply chain from mining of 
neodymium, iron, and boron through production of finished magnets.
    (4)(i) Effective through December 31, 2025, for production of 
tantalum metals of any kind and alloys, this restriction includes 
the reduction or melting of any form of tantalum to create tantalum 
metal including unwrought, powder, mill products, and alloys. The 
restriction also covers all subsequent phases of production of 
tantalum metals and alloys.
    (ii) Effective January 1, 2026, for production of tantalum 
metals of any kind and alloys, this restriction includes mining or 
production of a tantalum ore or feedstock, including recycled 
material, through production of metals of any kind and alloys.
    (5)(i) Effective through December 31, 2025, for production of 
tungsten metal powder and tungsten heavy alloy, this restriction 
includes--
    (A) Atomization;
    (B) Calcination and reduction into powder;
    (C) Final consolidation of non-melt derived metal powders; and
    (D) All subsequent phases of production of tungsten metal 
powder, tungsten heavy alloy, or any finished or semi-finished 
component containing tungsten heavy alloy.
    (ii) Effective January 1, 2026, for production of tungsten metal 
powder, tungsten heavy alloy, or any finished or semi-finished 
component containing tungsten heavy alloy, this restriction includes 
mining or production of a tungsten ore or feedstock, including 
recycled material, through production of tungsten metal powders, 
tungsten heavy alloy, or any finished or semi-finished component 
containing tungsten heavy alloy.
    (c) Exceptions. This clause does not apply--
    (1) To an end item containing a covered material that is--
    (i) A commercially available off-the-shelf item, other than--
    (A) A commercially available off-the-shelf item that is--
    (1) 50 percent or more tungsten by weight effective through 
December 31, 2025; or
    (2) 50 percent or more covered material by weight effective 
January 1, 2026;
    (B) Effective through December 2025, a tantalum metal, tantalum 
alloy, or tungsten heavy alloy mill product, such as bar, billet, 
slab, wire, cube, sphere, block, blank, plate, or sheet, that has 
not been incorporated into an end item, subsystem, assembly, or 
component; or
    (ii) Effective January 1, 2026, a covered material that is a 
mill product such as bar, billet, slab, wire, cube, sphere, block, 
blank, plate, or sheet, that has not been incorporated into an end 
item, subsystem, assembly, or component; or
    (iii) An electronic device, unless otherwise specified in the 
contract; or
    (iv) A neodymium-iron-boron magnet manufactured from recycled 
material if the milling of the recycled material and sintering of 
the final magnet takes place in the United States.
* * * * *

[FR Doc. 2023-08646 Filed 4-26-23; 8:45 am]
BILLING CODE 5001-06-P