American-Made: Explaining the Berry Amendment

3 min read

American-Made: Explaining the Berry Amendment

 

Berry compliance is essential to supporting a strong and resilient economy. For instance, prioritizing American-made products supports local industries and creates jobs, significantly improving a company's chances of competing in a saturated market. Additionally, Berry compliance helps strengthen the supply chain by ensuring timely access to high-quality products while maintaining the national security of the armed forces.

The Berry Amendment is a statutory law prohibiting the Department of Defense (DoD) from using allocated funds to purchase food, clothing, fabrics, fibers, yarns, and hand or measuring tools not made in the United States. Introduced in 1941 during World War II, it was a strategy to support the U.S. industry by encouraging the purchase of American-made goods. It was later permanently implemented in 1994 and has been a standard for all relevant business done with the government since.

For the opportunity to work with the DoD, it's wise for a company to possess Quality Management System (QMS) certifications to prove that its products are of high quality or that it can oversee the import and export of defense-related items. Such certifications held by PGC include ISO 9001:2015, AS9100D, and ITAR. These certifications provide an advantage by demonstrating that we are a well-organized company capable of consistently delivering high-quality products on time with every order.

All businesses affiliated with the Department of Defense or having a contract funded by the DoD must adhere to the Berry Amendment. To complete the order for a Berry compliant product, these companies must obtain all their supplies from the United States, from raw materials to finished products. If a company's products fail to meet these requirements, they will not be considered Berry compliant. As a result, those products will not be eligible for Department of Defense contracts, representing a growing and highly profitable market. However, a Domestic Non-Availability Determination (DNAD) waiver can be obtained to purchase products from outside sources if they are not grown, reprocessed, reused, or produced in the U.S. These products must be available in satisfactory quality and quantity at U.S. market prices. Officials authorized to make this decision include the Secretary of Defense (Acquisition, Technology, and Logistics), the Secretary of the Army, Navy, Air Force, or the Director of the Defense Logistics Agency.

To ensure that a company's products are Berry compliant, it's essential to only work with American-owned manufacturers who strictly offer materials and supplies that are 100% domestically produced. Additionally, the company sourcing the materials must provide documentation that explains the product's compliance with the Berry Amendment. This documentation could include bills of lading or certificates of origin. Another way to ensure compliance is to monitor the supply chain, which may include audits, documentation requirements, and working closely with suppliers.

Berry compliant products are essential for the success of our company, customers, and country. They contribute to the growth of local industries, job creation, and the establishment of a more reliable supply chain while safeguarding national security. Moreover, manufacturing Berry compliant products can improve a brand's reputation, build customer trust, and open new business opportunities.