25.900
Scope of subpart
FAR 25.900 establishes that Subpart 25.9 covers the rules for exempting certain Government contract supplies from import duties, helping reduce procurement costs.
Overview
FAR 25.900 defines the scope of Subpart 25.9, which establishes the policies and procedures for exempting certain supplies purchased under Government contracts from import duties. This section serves as an introduction, clarifying that the subpart addresses how and when supplies acquired by the U.S. Government may be imported without the usual customs duties, provided specific conditions are met. The intent is to facilitate cost-effective procurement for the Government by leveraging available duty exemptions.
Key Rules
- Exemption from Import Duties
- Outlines that certain supplies acquired under Government contracts may be exempt from import duties, subject to the procedures and policies detailed in the subpart.
- Applicability
- Applies to Government contracts involving the purchase of supplies that may be imported into the United States.
Responsibilities
- Contracting Officers: Must be aware of and apply the procedures for duty exemptions when procuring supplies from foreign sources.
- Contractors: Should understand when their supplies may qualify for duty exemptions and follow the required procedures.
- Agencies: Oversee compliance and ensure proper application of duty exemption policies.
Practical Implications
- This section exists to reduce procurement costs by allowing duty-free importation of qualifying supplies.
- It impacts daily contracting by requiring awareness of customs regulations and proper documentation for duty exemptions.
- Common pitfalls include failing to apply for exemptions or misunderstanding which supplies qualify, potentially resulting in unnecessary costs.