Difference between revisions of "FAR 52.225-8 - Duty Free Entry"
| Line 2: | Line 2: | ||
|EffectiveDate=2010/10/01 | |EffectiveDate=2010/10/01 | ||
|ClauseorProvision=Clause | |ClauseorProvision=Clause | ||
| − | |||
|Prescribedin=25.1101(e) | |Prescribedin=25.1101(e) | ||
| − | |TypePurposeContract= | + | |TypePurposeContract=Time and Materials/Labor Hour -A; Leasing of Motor Vehicles -A; Dismantling, Demolition, or Removal of Improvements -O; Facilities -O; Indefinite Delivery -A; Utility Services -O |
| − | | | + | |PrescriptionOverview===Prescription== |
| − | |FARClauseOverview=(a) Definition | + | |
| + | '''(e)''' Insert the clause at 52.225-8, Duty-Free Entry, in solicitations and contracts for supplies that may be imported into the United States and for which duty-free entry may be obtained in accordance with 25.903(a), if the value of the acquisition— | ||
| + | |||
| + | (1) Exceeds the simplified acquisition threshold; or | ||
| + | |||
| + | (2) Does not exceed the simplified acquisition threshold, but the savings from waiving the duty is anticipated to be more than the administrative cost of waiving the duty. When used for acquisitions that do not exceed the simplified acquisition threshold, the contracting officer may modify paragraphs (c)(1) and (j)(2) of the clause to reduce the dollar figure. | ||
| + | |||
| + | |FARClauseOverview===Clause== | ||
| + | |||
| + | ===(a) Definition=== | ||
| + | |||
| + | '''“Customs territory of the United States”''' means the States, the District of Columbia, and Puerto Rico. | ||
| − | (b) Except as otherwise approved by the Contracting Officer, the Contractor shall not include in the contract price any amount for duties on supplies specifically identified in the Schedule to be accorded duty-free entry. | + | ===Contract Price=== |
| + | '''(b)''' Except as otherwise approved by the Contracting Officer, the Contractor shall not include in the contract price any amount for duties on supplies specifically identified in the Schedule to be accorded duty-free entry. | ||
| − | (c) Except as provided in paragraph (d) of this clause or elsewhere in this contract, the following procedures apply to supplies not identified in the Schedule to be accorded duty-free entry: | + | ===Procedures=== |
| + | '''(c)''' Except as provided in paragraph (d) of this clause or elsewhere in this contract, the following procedures apply to supplies not identified in the Schedule to be accorded duty-free entry: | ||
(1) The Contractor shall notify the Contracting Officer in writing of any purchase of foreign supplies (including, without limitation, raw materials, components, and intermediate assemblies) in excess of $15,000 that are to be imported into the customs territory of the United States for delivery to the Government under this contract, either as end products or for incorporation into end products. The Contractor shall furnish the notice to the Contracting Officer at least 20 calendar days before the importation. The notice shall identify the— | (1) The Contractor shall notify the Contracting Officer in writing of any purchase of foreign supplies (including, without limitation, raw materials, components, and intermediate assemblies) in excess of $15,000 that are to be imported into the customs territory of the United States for delivery to the Government under this contract, either as end products or for incorporation into end products. The Contractor shall furnish the notice to the Contracting Officer at least 20 calendar days before the importation. The notice shall identify the— | ||
| − | (i) Foreign supplies; | + | :(i) Foreign supplies; |
| − | (ii) Estimated amount of duty; and | + | :(ii) Estimated amount of duty; and |
| − | (iii) Country of origin. | + | :(iii) Country of origin. |
(2) The Contracting Officer will determine whether any of these supplies should be accorded duty-free entry and will notify the Contractor within 10 calendar days after receipt of the Contractor’s notification. | (2) The Contracting Officer will determine whether any of these supplies should be accorded duty-free entry and will notify the Contractor within 10 calendar days after receipt of the Contractor’s notification. | ||
| Line 24: | Line 36: | ||
(3) Except as otherwise approved by the Contracting Officer, the contract price shall be reduced by (or the allowable cost shall not include) the amount of duty that would be payable if the supplies were not entered duty-free. | (3) Except as otherwise approved by the Contracting Officer, the contract price shall be reduced by (or the allowable cost shall not include) the amount of duty that would be payable if the supplies were not entered duty-free. | ||
| − | (d) The Contractor is not required to provide the notification under paragraph (c) of this clause for purchases of foreign supplies if— | + | ===Notification=== |
| + | '''(d)''' The Contractor is not required to provide the notification under paragraph (c) of this clause for purchases of foreign supplies if— | ||
(1) The supplies are identical in nature to items purchased by the Contractor or any subcontractor in connection with its commercial business; and | (1) The supplies are identical in nature to items purchased by the Contractor or any subcontractor in connection with its commercial business; and | ||
| Line 30: | Line 43: | ||
(2) Segregation of these supplies to ensure use only on Government contracts containing duty-free entry provisions is not economical or feasible. | (2) Segregation of these supplies to ensure use only on Government contracts containing duty-free entry provisions is not economical or feasible. | ||
| − | (e) The Contractor shall claim duty-free entry only for supplies to be delivered to the Government under this contract, either as end products or incorporated into end products, and shall pay duty on supplies, or any portion of them, other than scrap, salvage, or competitive sale authorized by the Contracting Officer, diverted to nongovernmental use. | + | ===Claiming Duty Free Entry=== |
| + | '''(e)''' The Contractor shall claim duty-free entry only for supplies to be delivered to the Government under this contract, either as end products or incorporated into end products, and shall pay duty on supplies, or any portion of them, other than scrap, salvage, or competitive sale authorized by the Contracting Officer, diverted to nongovernmental use. | ||
| − | (f) The Government will execute any required duty-free entry certificates for supplies to be accorded duty-free entry and will assist the Contractor in obtaining duty-free entry for these supplies. | + | ===Certificates=== |
| + | '''(f)''' The Government will execute any required duty-free entry certificates for supplies to be accorded duty-free entry and will assist the Contractor in obtaining duty-free entry for these supplies. | ||
| − | (g) Shipping documents for supplies to be accorded duty-free entry shall consign the shipments to the contracting agency in care of the Contractor and shall include the— | + | ===Shipping Documents=== |
| + | '''(g)''' Shipping documents for supplies to be accorded duty-free entry shall consign the shipments to the contracting agency in care of the Contractor and shall include the— | ||
(1) Delivery address of the Contractor (or contracting agency, if appropriate); | (1) Delivery address of the Contractor (or contracting agency, if appropriate); | ||
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(6) Estimated value in United States dollars. | (6) Estimated value in United States dollars. | ||
| − | (h) The Contractor shall instruct the foreign supplier to— | + | ===Contractor Instructions=== |
| + | '''(h)''' The Contractor shall instruct the foreign supplier to— | ||
(1) Consign the shipment as specified in paragraph (g) of this clause; | (1) Consign the shipment as specified in paragraph (g) of this clause; | ||
| Line 56: | Line 73: | ||
(3) Include with the shipment at least two copies of the bill of lading (or other shipping document) for use by the District Director of Customs at the port of entry. | (3) Include with the shipment at least two copies of the bill of lading (or other shipping document) for use by the District Director of Customs at the port of entry. | ||
| − | (i) The Contractor shall provide written notice to the cognizant contract administration office immediately after notification by the Contracting Officer that duty-free entry will be accorded foreign supplies or, for duty-free supplies identified in the Schedule, upon award by the Contractor to the overseas supplier. The notice shall identify the— | + | ===Written Notice=== |
| + | '''(i)''' The Contractor shall provide written notice to the cognizant contract administration office immediately after notification by the Contracting Officer that duty-free entry will be accorded foreign supplies or, for duty-free supplies identified in the Schedule, upon award by the Contractor to the overseas supplier. The notice shall identify the— | ||
(1) Foreign supplies; | (1) Foreign supplies; | ||
| Line 66: | Line 84: | ||
(4) Scheduled delivery date(s). | (4) Scheduled delivery date(s). | ||
| − | (j) The Contractor shall include the substance of this clause in any subcontract if— | + | ===Subcontracts=== |
| + | '''(j)''' The Contractor shall include the substance of this clause in any subcontract if— | ||
(1) Supplies identified in the Schedule to be accorded duty-free entry will be imported into the customs territory of the United States; or | (1) Supplies identified in the Schedule to be accorded duty-free entry will be imported into the customs territory of the United States; or | ||
| − | (2) Other foreign supplies in excess of $15,000 may be imported into the customs territory of the United States. | + | (2) Other foreign supplies in excess of $15,000 may be imported into the customs territory of the United States. |
| − | + | ||
|ImportantNotesRequirements=[[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] | |ImportantNotesRequirements=[[Category:FAR 52 - Solicitation Provisions and Contract Clauses]] | ||
|IncorporatedbyReference=Yes | |IncorporatedbyReference=Yes | ||
|UniformContractFormat=I | |UniformContractFormat=I | ||
|Editor=Marshall | |Editor=Marshall | ||
| + | |ProvisionClauseNumberAlternate=52.225-8 | ||
| + | |ProvisionClauseDescription=- | ||
|Checked=no | |Checked=no | ||
|HasTermDate=2014/03/31 | |HasTermDate=2014/03/31 | ||
Revision as of 08:29, 18 December 2014
Prescribed in 25.1101(e) | ||
| Effective Date: | 1 October 2010 | |
| Clause or Provision: | Clause | |
| Provision or Clause Number: | 52.225-8 - Duty Free Entry | |
| Principle Type And/Or Purpose of Contract: | ||
| Required: | ||
| Applicable: | Time and Materials/Labor Hour; Leasing of Motor Vehicles; Indefinite Delivery; | |
| Optional: | Dismantling, Demolition, or Removal of Improvements; Facilities; Utility Services; | |
| Subject: | ||
| ProcurementType: | ||
| Contract Threshold: | ||
| Prescription Overview: |
Prescription(e) Insert the clause at 52.225-8, Duty-Free Entry, in solicitations and contracts for supplies that may be imported into the United States and for which duty-free entry may be obtained in accordance with 25.903(a), if the value of the acquisition— (1) Exceeds the simplified acquisition threshold; or (2) Does not exceed the simplified acquisition threshold, but the savings from waiving the duty is anticipated to be more than the administrative cost of waiving the duty. When used for acquisitions that do not exceed the simplified acquisition threshold, the contracting officer may modify paragraphs (c)(1) and (j)(2) of the clause to reduce the dollar figure. | |
| Clause Overview: |
Clause(a) Definition“Customs territory of the United States” means the States, the District of Columbia, and Puerto Rico. Contract Price(b) Except as otherwise approved by the Contracting Officer, the Contractor shall not include in the contract price any amount for duties on supplies specifically identified in the Schedule to be accorded duty-free entry. Procedures(c) Except as provided in paragraph (d) of this clause or elsewhere in this contract, the following procedures apply to supplies not identified in the Schedule to be accorded duty-free entry: (1) The Contractor shall notify the Contracting Officer in writing of any purchase of foreign supplies (including, without limitation, raw materials, components, and intermediate assemblies) in excess of $15,000 that are to be imported into the customs territory of the United States for delivery to the Government under this contract, either as end products or for incorporation into end products. The Contractor shall furnish the notice to the Contracting Officer at least 20 calendar days before the importation. The notice shall identify the—
(2) The Contracting Officer will determine whether any of these supplies should be accorded duty-free entry and will notify the Contractor within 10 calendar days after receipt of the Contractor’s notification. (3) Except as otherwise approved by the Contracting Officer, the contract price shall be reduced by (or the allowable cost shall not include) the amount of duty that would be payable if the supplies were not entered duty-free. Notification(d) The Contractor is not required to provide the notification under paragraph (c) of this clause for purchases of foreign supplies if— (1) The supplies are identical in nature to items purchased by the Contractor or any subcontractor in connection with its commercial business; and (2) Segregation of these supplies to ensure use only on Government contracts containing duty-free entry provisions is not economical or feasible. Claiming Duty Free Entry(e) The Contractor shall claim duty-free entry only for supplies to be delivered to the Government under this contract, either as end products or incorporated into end products, and shall pay duty on supplies, or any portion of them, other than scrap, salvage, or competitive sale authorized by the Contracting Officer, diverted to nongovernmental use. Certificates(f) The Government will execute any required duty-free entry certificates for supplies to be accorded duty-free entry and will assist the Contractor in obtaining duty-free entry for these supplies. Shipping Documents(g) Shipping documents for supplies to be accorded duty-free entry shall consign the shipments to the contracting agency in care of the Contractor and shall include the— (1) Delivery address of the Contractor (or contracting agency, if appropriate); (2) Government prime contract number; (3) Identification of carrier; (4) Notation “UNITED STATES GOVERNMENT, _____ [agency] _____, Duty-free entry to be claimed pursuant to Item No(s) _____ [from Tariff Schedules] _____, Harmonized Tariff Schedules of the United States. Upon arrival of shipment at port of entry, District Director of Customs, please release shipment under 19 CFR Part 142 and notify [cognizant contract administration office] for execution of Customs Forms 7501 and 7501-A and any required duty-free entry certificates.”; (5) Gross weight in pounds (if freight is based on space tonnage, state cubic feet in addition to gross shipping weight); and (6) Estimated value in United States dollars. Contractor Instructions(h) The Contractor shall instruct the foreign supplier to— (1) Consign the shipment as specified in paragraph (g) of this clause; (2) Mark all packages with the words “UNITED STATES GOVERNMENT” and the title of the contracting agency; and (3) Include with the shipment at least two copies of the bill of lading (or other shipping document) for use by the District Director of Customs at the port of entry. Written Notice(i) The Contractor shall provide written notice to the cognizant contract administration office immediately after notification by the Contracting Officer that duty-free entry will be accorded foreign supplies or, for duty-free supplies identified in the Schedule, upon award by the Contractor to the overseas supplier. The notice shall identify the— (1) Foreign supplies; (2) Country of origin; (3) Contract number; and (4) Scheduled delivery date(s). Subcontracts(j) The Contractor shall include the substance of this clause in any subcontract if— (1) Supplies identified in the Schedule to be accorded duty-free entry will be imported into the customs territory of the United States; or (2) Other foreign supplies in excess of $15,000 may be imported into the customs territory of the United States. | |
| Important Notes/Requirements: | ||
| Subcontract Threshold: | ||
| Incorporated by Reference: | Yes | |
| Uniform Contract Format: | I | |
| Editor: | Marshall | |
Personal notes.
