Subpart 25.9
Customs and Duties
FAR Subpart 25.9 ensures government contracts involving imported supplies properly address customs duties, allowing for exemptions and clear procedures to minimize unnecessary costs.
Overview
FAR Subpart 25.9 addresses the rules and procedures related to customs and duties for government contracts involving imported supplies. It outlines the policy for handling customs duties, the procedures contracting officers and contractors must follow, and identifies supplies that are exempt from customs duties. The subpart ensures that government acquisitions are not unnecessarily burdened by customs costs and that proper processes are followed to claim exemptions or handle duty payments when required.
Key Rules
- Scope of Subpart (25.900)
- Defines the applicability of customs and duties regulations to government contracts involving imported goods.
- Policy (25.901)
- Establishes the government’s policy on payment or exemption of customs duties for imported supplies used in federal contracts.
- Procedures (25.902)
- Details the steps contracting officers and contractors must take to claim exemptions or process customs duties, including documentation and coordination with customs authorities.
- Exempted Supplies (25.903)
- Lists specific supplies or circumstances under which imported goods are exempt from customs duties when used in government contracts.
Responsibilities
- Contracting Officers: Ensure proper application of customs and duties policies, process exemptions, and coordinate with customs authorities.
- Contractors: Provide necessary documentation, follow procedures for exemptions, and comply with customs requirements.
- Agencies: Oversee compliance and maintain records related to customs and duties for acquisitions.
Practical Implications
- This subpart exists to minimize unnecessary costs and administrative burdens related to customs duties in government acquisitions.
- It impacts daily contracting by requiring careful documentation and adherence to procedures for duty exemptions.
- Common pitfalls include failing to claim available exemptions, incomplete documentation, or miscommunication with customs authorities.