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Info Collection: Duty-Free Entry for Foreign Supplies Imported by Federal Agencies

Wednesday, April 02, 2014
Sandler, Travis & Rosenberg Trade Report

The Department of Defense, the General Services Administration and the National Aeronautics and Space Administration are requesting public comments through June 2 on the proposed extension of an information collection requirement concerning duty-free entry.

U.S. laws impose duties on foreign supplies imported into the U.S. customs territory, but certain exemptions from these duties are available to federal government agencies. These exemptions are used whenever the anticipated savings outweigh the administrative costs associated with processing required documentation. When a government contractor purchases foreign supplies, it must notify the contracting officer to determine whether the supplies should be duty-free. In addition, all shipping documents and containers must specify certain information to assure the duty-free entry of the supplies.

The clause at FAR 52.225-8, Duty-Free Entry, is included in solicitations and contracts for supplies that may be imported into the U.S. and for which duty-free entry may be obtained in accordance with FAR 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. The contracting officer analyzes the information submitted by the contractor to determine whether or not supplies should enter the country duty-free. The information, the contracting officer's determination and the CBP forms are placed in the contract file.

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