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<!DOCTYPE dita
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ditaarch:DITAArchVersion="1.2"
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class="- topic/topic concept/concept ">
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<title class="- topic/title ">
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<ph props="autonumber" class="- topic/ph ">252.225-7013</ph> Duty-Free Entry.</title>
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<conbody class="- topic/body concept/conbody ">
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<p id="dbRoye" class="- topic/p ">As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
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base="DFARS-225.1101"
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outputclass="fm:ParaNumOnly"
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class="- topic/xref ">225.1101</xref> (4), use the
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<!DOCTYPE dita PUBLIC "-//OASIS//DTD DITA Composite//EN" "ditabase.dtd">
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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/" ditaarch:DITAArchVersion="1.2" domains="(topic task) (topic concept) (topic concept glossentry) (topic concept glossgroup) (topic reference) (topic troubleshooting++task) (topic task) (topic abbrev-d) a(props deliveryTarget) (topic equation-d) (topic hazard-d) (topic hi-d) (topic indexing-d) (topic markup-d) (topic mathml-d) (topic pr-d) (topic relmgmt-d) (topic sw-d) (topic svg-d) (topic ui-d) (topic ut-d) (topic markup-d xml-d) (topic task strictTaskbody-c) ">
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<concept id="DFARS_252.225-7013" ditaarch:DITAArchVersion="1.2" class="- topic/topic concept/concept ">
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<title class="- topic/title "><ph props="autonumber" class="- topic/ph ">252.225-7013</ph> Duty-Free Entry.</title>
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<conbody class="- topic/body concept/conbody ">
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<p id="dbRoye" class="- topic/p ">As prescribed in <xref href="225.1101.dita#DFARS_225.1101" base="DFARS-225.1101" outputclass="fm:ParaNumOnly" class="- topic/xref ">225.1101</xref> (4), use the
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following clause:</p>
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<p id="YiSXKS" outputclass="Ctr_SmCaps" class="- topic/p ">DUTY-FREE ENTRY (DEC 2022)</p>
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<ol>
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<p id="rIZZnv" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(a)</ph><i class="+ topic/ph hi-d/i ">Definitions.</i>As
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used in this clause—</p>
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<p id="jSfjCw" class="- topic/p ">“Component,” means any item supplied to the Government
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as part of an end product or of another component.</p>
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<p id="TQJVrp" class="- topic/p ">“Customs territory of the United States” means
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the 50 States, the District of Columbia, and Puerto Rico.</p>
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<p id="RKXaNB" class="- topic/p ">“Eligible product” means—</p>
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<p id="PAPnjc" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> “Designated country end product,” as defined in the Trade Agreements (either basic or alternate) clause of this contract;</p>
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<p id="cQxuES" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> “Free Trade Agreement country end product,” other than a “Bahrainian end product,” a “Moroccan end product,” a Panamanian end product,” or a “Peruvian end product,” as defined in the Buy American—Free Trade Agreements—Balance of Payments Program (either basic or alternate II) clause of this contract, basic or its Alternate II; or
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</p>
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<p id="hXjgEk" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(3)</ph> “Free Trade Agreement country end product” other than a “Bahrainian end product,” “Korean end product,” “Moroccan end product,” “Panamanian end product,” or “Peruvian end product,” as defined in of the Buy American—Free Trade Agreements—Balance of Payments Program (either alternate IV or alternate V) clause of this contract.</p>
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<p id="jaLWbU" class="- topic/p ">“Qualifying country” and “qualifying country end
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product” have the meanings given in the Trade Agreements clause,
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the Buy American and Balance of Payments Program clause, or the
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Buy American—Free Trade Agreements—Balance of Payments Program clause
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of this contract, basic or alternate.</p>
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<p id="vDsRSW" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(b)</ph> Except as provided in
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paragraph (i) of this clause, or unless supplies were imported into
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the customs territory of the United States before the date of this
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contract or the applicable subcontract, the price of this contract
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shall not include any amount for duty on—</p>
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<ol>
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<p id="aaWtKr" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> End items that are eligible
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products or qualifying country end products;</p>
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<p id="lEwluU" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Components (including,
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without limitation, raw materials and intermediate assemblies) produced
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or made in qualifying countries, that are to be incorporated in
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U.S.- made end products to be delivered under this contract; or</p>
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<p id="AzgxrY" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(3)</ph> Other supplies for which
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the Contractor estimates that duty will exceed $300 per shipment
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into the customs territory of the United States.</p>
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<p id="JDXMAU" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(c)</ph> The Contractor shall—</p>
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<p id="QGUSxl" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> Claim duty-free entry
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only for supplies that the Contractor intends to deliver to the
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Government under this contract, either as end items or components
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of end items; and</p>
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<p id="VjOHma" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Pay duty on supplies,
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or any portion thereof, that are diverted to nongovernmental use,
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other than—</p>
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<p id="HPCCas" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> Scrap or salvage; or</p>
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<p id="fSAEll" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> Competitive sale made,
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directed, or authorized by the Contracting Officer.</p>
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<p id="pbFxDM" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(d)</ph> Except as the Contractor
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may otherwise agree, the Government will execute duty-free entry
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certificates and will afford such assistance as appropriate to obtain
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the duty-free entry of supplies—</p>
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<p id="tpWuTF" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> For which no duty is
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included in the contract price in accordance with paragraph (b)
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of this clause; and</p>
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<p id="ATcINE" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> For which shipping documents
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bear the notation specified in paragraph (e) of this clause.</p>
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<p id="nXtfTz" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(e)</ph> For foreign supplies
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for which the Government will issue duty-free entry certificates
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in accordance with this clause, shipping documents submitted to
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Customs shall—</p>
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<p id="UvpktU" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> Consign the shipments
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to the appropriate—</p>
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<p id="MNDrXr" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> Military department in
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care of the Contractor, including the Contractor's delivery address;
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or</p>
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<p id="JaXQet" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> Military installation;
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and</p>
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<p id="IZqrfe" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Include the following
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information:</p>
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<p id="YXptBJ" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> Prime contract number
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and, if applicable, delivery order number.</p>
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<p id="GtSxIw" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> Number of the subcontract
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for foreign supplies, if applicable.</p>
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<p id="OIveci" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(iii)</ph> Identification of the
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carrier.</p>
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<p id="QHHpMt" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(iv)</ph> (A) For direct shipments
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to a U.S. military installation, the notation: “UNITED STATES GOVERNMENT, DEPARTMENT
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OF DEFENSE Duty-Free Entry to be claimed pursuant to Section XXII,
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Chapter 98, Subchapter VIII, Item 9808.00.30 of the Harmonized Tariff
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@@ -95,60 +166,125 @@ under 19 CFR Part 142 and notify Commander, Defense Contract Management Agency
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(DCMA), St. Louis, MO, ATTN: Duty Free Entry Team, 1222 Spruce Street,
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Room 9.300, St. Louis, MO 63103-2812, for execution of Customs
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Form 7501, 7501A, or 7506 and any required duty-free entry certificates.”</p>
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<p id="esuZgo" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(B)</ph> If the shipment will
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be consigned to other than a military installation, e.g., a domestic
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contractor's plant, the shipping document notation shall be altered
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to include the name and address of the contractor, agent, or broker
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who will notify Commander, DCMA New York, for execution of the duty-free
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entry certificate. (If the shipment will be consigned to a contractor
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entry certificate. (If the shipment will be consigned to a contractor's
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plant and no duty-free entry certificate is required due to a trade
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agreement, the Contractor shall claim duty-free entry under the
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applicable trade agreement and shall comply with the U.S. Customs
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Service requirements. No notification to Commander, DCMA New York,
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is required.)</p>
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<p id="KhwFev" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(v)</ph> Gross weight in pounds
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(if freight is based on space tonnage, state cubic feet in addition
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to gross shipping weight).</p>
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<p id="hfcREw" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(vi)</ph> Estimated value in U.S.
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dollars.</p>
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<p id="JMBLTd" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(vii)</ph> Activity address number
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of the contract administration office administering the prime contract,
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e.g., for DCMA Dayton, S3605A.</p>
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<p id="ZJAXDH" outputclass="List1" class="- topic/p ">
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<ph props="autonumber" class="-topic/ph">(f)</ph>
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<i class="+ topic/ph hi-d/i ">Preparation of customs
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forms.</i>
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<p id="JdzISU" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> (i) Except for shipments
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consigned to a military installation, the Contractor shall—</p>
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<p id="kPievr" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(A)</ph> Prepare any customs forms
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required for the entry of foreign supplies into the customs territory
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of the United States in connection with this contract; and</p>
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<p id="ImYtAw" outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(B)</ph> Submit the completed
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customs forms to the District Director of Customs, with a copy to
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DCMA NY for execution of any required duty-free entry certificates.</p>
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<p id="tkmOAA" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> Shipments consigned
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directly to a military installation will be released in accordance
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with sections 10.101 and 10.102 of the U.S. Customs regulations.</p>
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<p id="zMEcrj" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> For shipments containing
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both supplies that are to be accorded duty-free entry and supplies
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that are not, the Contractor shall identify on the customs forms
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those items that are eligible for duty-free entry.</p>
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<p id="psMuLL" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(g)</ph> The Contractor shall—</p>
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<p id="GiuXjh" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> Prepare (if the Contractor
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is a foreign supplier), or shall instruct the foreign supplier to
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prepare, a sufficient number of copies of the bill of lading (or
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other shipping document) so that at least two of the copies accompanying
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the shipment will be available for use by the District Director
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of Customs at the port of entry;</p>
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<p id="IaZQqG" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Consign the shipment
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as specified in paragraph (e) of this clause; and</p>
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<p id="FzSYIR" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(3)</ph> Mark on the exterior
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of all packages—</p>
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<p id="lFeRRy" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> “UNITED STATES GOVERNMENT,
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DEPARTMENT OF DEFENSE”; and</p>
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<p id="lOzCej" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> The activity address
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number of the contract administration office administering the prime
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contract.</p>
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<p id="FAyWDi" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(h)</ph> The Contractor shall
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notify the Administrative Contracting Officer (ACO) in writing of
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any purchase of eligible products or qualifying country supplies
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to be accorded duty-free entry, that are to be imported into the
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@@ -156,64 +292,140 @@ customs territory of the United States for delivery to the Government
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or for incorporation in end items to be delivered to the Government.
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The Contractor shall furnish the notice to the ACO immediately upon
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award to the supplier and shall include in the notice—</p>
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<p id="JKhPFK" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> The Contractor's name,
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address, and Commercial and Government Entity (CAGE) code;</p>
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<p id="Zxfrsr" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Prime contract number
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and, if applicable, delivery order number;</p>
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<p id="DECxtu" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(3)</ph> Total dollar value of
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the prime contract or delivery order;</p>
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<p id="mtnRkF" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(4)</ph> Date of the last scheduled
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delivery under the prime contract or delivery order;</p>
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<p id="AbzARn" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(5)</ph> Foreign supplier's name
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and address;</p>
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<p id="LJsHcK" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(6)</ph> Number of the subcontract
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for foreign supplies;</p>
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<p id="TjFykB" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(7)</ph> Total dollar value of
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the subcontract for foreign supplies;</p>
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<p id="jvzdzQ" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(8)</ph> Date of the last scheduled
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delivery under the subcontract for foreign supplies;</p>
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<p id="RNlJtr" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(9)</ph> List of items purchased;</p>
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<li>
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<p id="RfhAWd" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(10)</ph> An agreement that the
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Contractor will pay duty on supplies, or any portion thereof, that
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are diverted to nongovernmental use other than—</p>
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<p id="yHZNoH" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> Scrap or salvage; or</p>
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<p id="nuwQSe" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> Competitive sale made,
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directed, or authorized by the Contracting Officer;</p>
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<p id="WCBBNl" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(11)</ph> Country of origin; and</p>
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<li>
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<p id="zAoaaz" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(12)</ph> Scheduled delivery date(s).</p>
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<li>
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<p id="xZexuR" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> This clause does not
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apply to purchases of eligible products or qualifying country supplies
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in connection with this contract if—</p>
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<p id="sIHBjl" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> The supplies are identical
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in nature to supplies purchased by the Contractor or any subcontractor
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in connection with its commercial business; and</p>
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<p id="gAHbxh" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> It is not economical
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or feasible to account for such supplies so as to ensure that the
|
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amount of the supplies for which duty-free entry is claimed does
|
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not exceed the amount purchased in connection with this contract.</p>
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<p id="KBInnN" outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(j)</ph> The Contractor shall—</p>
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<p id="IhzPbh" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> Insert the substance
|
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|
of this clause, including this paragraph (j), in all subcontracts
|
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for—</p>
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<p id="hcxDZz" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> Qualifying country components;
|
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or</p>
|
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200
|
-
|
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+
</li>
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+
<li>
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<p id="KdrMOW" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> Nonqualifying country
|
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|
components for which the Contractor estimates that duty will exceed
|
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$200 per unit;</p>
|
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-
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+
<info li_elems="2"/>
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</ol>
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</li>
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+
<li>
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+
<p id="XQwkOT" outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Require subcontractors
|
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to include the number of this contract on all shipping documents
|
|
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|
submitted to Customs for supplies for which duty-free entry is claimed
|
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pursuant to this clause; and</p>
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-
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<info li_elems="0"/>
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<ol>
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<li>
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+
<p id="AhtRMo" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(3)</ph> Include in applicable
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subcontracts—</p>
|
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-
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+
</li>
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+
<li>
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<p id="aZQKTo" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> The name and address
|
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|
of the ACO for this contract;</p>
|
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-
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+
</li>
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+
<li>
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+
<p id="OEWuvQ" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> The name, address, and
|
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|
activity address number of the contract administration office specified
|
|
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|
in this contract; and</p>
|
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|
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+
</li>
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<li>
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+
<p id="hiSCwS" outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(iii)</ph> The information required
|
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by paragraphs (h)(1), (2), and (3) of this clause.</p>
|
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216
|
-
|
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|
-
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|
-
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+
</li>
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+
</ol>
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+
</li>
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+
</ol>
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+
</li>
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+
</ol>
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|
+
<p id="ucNdeh" outputclass="Endofclause Ctr" class="- topic/p ">(End of clause)</p>
|
|
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|
+
</conbody>
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|
+
</concept>
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</dita>
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