DFARS 252.225-7013 Duty-Free Entry. Basic (May 2016)

As prescribed in 225.1101(4), Use the clause at 252.225-7013, Duty-Free Entry, instead of the clause at FAR 52.225-8. Do not use the clause for acquisitions of supplies that will not enter the customs territory of the United States.

DUTY-FREE ENTRY (MAY 2016)

      (a)  Definitions.  As used in this clause—

      “Component,” means any item supplied to the Government as part of an end product or of another component.

      “Customs territory of the United States” means the 50 States, the District of Columbia, and Puerto Rico.

      “Eligible product” means—

              (i)  “Designated country end product,” as defined in the Trade Agreements (either basic or alternate) clause of this contract;

              (ii)  “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;

              (iii)  “Canadian end product,” as defined in the Buy American—Free Trade Agreements—Balance of Payments Program (either alternate I or alternate III) clause of this Contract; or

              (iv)  “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.

      “Qualifying country” and “qualifying country end product” have the meanings given in the Trade Agreements clause, the Buy American and Balance of Payments Program clause, or the Buy American—Free Trade Agreements—Balance of Payments Program clause of this contract, basic or alternate.

      (b)  Except as provided in paragraph (i) of this clause, or unless supplies were imported into the customs territory of the United States before the date of this contract or the applicable subcontract, the price of this contract shall not include any amount for duty on—

              (1)  End items that are eligible products or qualifying country end products;

              (2)  Components (including, without limitation, raw materials and intermediate assemblies) produced or made in qualifying countries, that are to be incorporated in U.S.- made end products to be delivered under this contract; or

              (3)  Other supplies for which the Contractor estimates that duty will exceed $300 per shipment into the customs territory of the United States.

      (c)  The Contractor shall—

              (1)  Claim duty-free entry only for supplies that the Contractor intends to deliver to the Government under this contract, either as end items or components of end items; and

              (2)  Pay duty on supplies, or any portion thereof, that are diverted to nongovernmental use, other than—

                    (i)  Scrap or salvage; or

                    (ii)  Competitive sale made, directed, or authorized by the Contracting Officer.

      (d)  Except as the Contractor may otherwise agree, the Government will execute duty-free entry certificates and will afford such assistance as appropriate to obtain the duty-free entry of supplies—

              (1)  For which no duty is included in the contract price in accordance with paragraph (b) of this clause; and

              (2)  For which shipping documents bear the notation specified in paragraph (e) of this clause.

      (e)  For foreign supplies for which the Government will issue duty-free entry certificates in accordance with this clause, shipping documents submitted to Customs shall—

              (1)  Consign the shipments to the appropriate—

                    (i)  Military department in care of the Contractor, including the Contractor's delivery address; or

                    (ii)  Military installation; and

              (2)  Include the following information:

                    (i)  Prime contract number and, if applicable, delivery order number.

                    (ii)  Number of the subcontract for foreign supplies, if applicable.

                    (iii)  Identification of the carrier.

                    (iv)(A)  For direct shipments to a U.S. military installation, the notation:  “UNITED STATES GOVERNMENT, DEPARTMENT OF DEFENSE Duty-Free Entry to be claimed pursuant to Section XXII, Chapter 98, Subchapter VIII, Item 9808.00.30 of the Harmonized Tariff Schedule of the United States.  Upon arrival of shipment at the appropriate port of entry, District Director of Customs, please release shipment under 19 CFR Part 142 and notify Commander, Defense Contract Management Agency (DCMA) New York, ATTN:  Customs Team, DCMAE-GNTF, 207 New York Avenue, Staten Island, New York, 10305-5013, for execution of Customs Form 7501, 7501A, or 7506 and any required duty-free entry certificates.”

                            (B)  If the shipment will be consigned to other than a military installation, e.g., a domestic contractor's plant, the shipping document notation shall be altered to include the name and address of the contractor, agent, or broker who will notify Commander, DCMA New York, for execution of the duty-free entry certificate.  (If the shipment will be consigned to a contractor’s plant and no duty-free entry certificate is required due to a trade agreement, the Contractor shall claim duty-free entry under the applicable trade agreement and shall comply with the U.S. Customs Service requirements.  No notification to Commander, DCMA New York, is required.)

                    (v)  Gross weight in pounds (if freight is based on space tonnage, state cubic feet in addition to gross shipping weight).

                    (vi)  Estimated value in U.S. dollars.

                    (vii)  Activity address number of the contract administration office administering the prime contract, e.g., for DCMA Dayton, S3605A.

      (f)  Preparation of customs forms.

              (1)(i)  Except for shipments consigned to a military installation, the Contractor shall—

                            (A)  Prepare any customs forms required for the entry of foreign supplies into the customs territory of the United States in connection with this contract; and

                            (B)  Submit the completed customs forms to the District Director of Customs, with a copy to DCMA NY for execution of any required duty-free entry certificates. 

                    (ii)  Shipments consigned directly to a military installation will be released in accordance with sections 10.101 and 10.102 of the U.S. Customs regulations.

              (2)  For shipments containing both supplies that are to be accorded duty-free entry and supplies that are not, the Contractor shall identify on the customs forms those items that are eligible for duty-free entry.

      (g)  The Contractor shall—

              (1)  Prepare (if the Contractor is a foreign supplier), or shall instruct the foreign supplier to prepare, a sufficient number of copies of the bill of lading (or other shipping document) so that at least two of the copies accompanying the shipment will be available for use by the District Director of Customs at the port of entry;

              (2)  Consign the shipment as specified in paragraph (e) of this clause; and

              (3)  Mark on the exterior of all packages--

                    (i)  “UNITED STATES GOVERNMENT, DEPARTMENT OF DEFENSE”; and

                    (ii)  The activity address number of the contract administration office administering the prime contract.

      (h)  The Contractor shall notify the Administrative Contracting Officer (ACO) in writing of any purchase of eligible products or qualifying country supplies to be accorded duty-free entry, that are to be imported into the customs territory of the United States for delivery to the Government or for incorporation in end items to be delivered to the Government.  The Contractor shall furnish the notice to the ACO immediately upon award to the supplier and shall include in the notice—

              (1)  The Contractor’s name, address, and Commercial and Government Entity (CAGE) code;

              (2)  Prime contract number and, if applicable, delivery order number;

              (3)  Total dollar value of the prime contract or delivery order;

              (4)  Date of the last scheduled delivery under the prime contract or delivery order;

              (5)  Foreign supplier's name and address;

              (6)  Number of the subcontract for foreign supplies;

              (7)  Total dollar value of the subcontract for foreign supplies;

              (8)  Date of the last scheduled delivery under the subcontract for foreign supplies;

              (9)  List of items purchased;

              (10)  An agreement that the Contractor will pay duty on supplies, or any portion thereof, that are diverted to nongovernmental use other than—

                    (i)  Scrap or salvage; or

                    (ii)  Competitive sale made, directed, or authorized by the Contracting Officer; 

              (11)  Country of origin; and

              (12)  Scheduled delivery date(s).

      (i)  This clause does not apply to purchases of eligible products or qualifying country supplies in connection with this contract if—

              (1)  The supplies are identical in nature to supplies purchased by the Contractor or any subcontractor in connection with its commercial business; and

              (2)  It is not economical or feasible to account for such supplies so as to ensure that the amount of the supplies for which duty-free entry is claimed does not exceed the amount purchased in connection with this contract.

      (j)  The Contractor shall—

              (1)  Insert the substance of this clause, including this paragraph (j), in all subcontracts for—

                    (i)  Qualifying country components; or

                    (ii)  Nonqualifying country components for which the Contractor estimates that duty will exceed $200 per unit;

              (2)  Require subcontractors to include the number of this contract on all shipping documents submitted to Customs for supplies for which duty-free entry is claimed pursuant to this clause; and

              (3)  Include in applicable subcontracts—

                    (i)  The name and address of the ACO for this contract;

                    (ii)  The name, address, and activity address number of the contract administration office specified in this contract; and

                    (iii)  The information required by paragraphs (h)(1), (2), and (3) of this clause.

(End of clause)

(j) The Contractor shall— (1) Insert the substance of this clause, including this paragraph (j), in all subcontracts for— (i) Qualifying country components; or (ii) Nonqualifying country components for which the Contractor estimates that duty will exceed $200 per unit; (2) Require subcontractors to include the number of this contract on all shipping documents submitted to Customs for supplies for which duty-free entry is claimed pursuant to this clause; and (3) Include in applicable subcontracts— (i) The name and address of the ACO for this contract; (ii) The name, address, and activity address number of the contract administration office specified in this contract; and (iii) The information required by paragraphs (h)(1), (2), and (3) of this clause.

Mandatory (Exception);
Services ✖ 
✔ >52.225-8 Basic

52.209-1 Qualification Requirements.

52.211-14 Notice of Priority Rating for National Defense, Emergency Preparedness, and Energy Program Use.

52.211-16 Variation in Quantity.

52.212-3 Offeror Representations and Certifications—Commercial Items.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items.

52.222-18 Certification Regarding Knowledge of Child Labor for Listed End Products.

52.225-1 Buy American—Supplies

52.225-3 Buy American—Free Trade Agreements-Israeli Trade Act.

52.225-5 Trade Agreements.

52.225-7 Waiver of Buy American Statute for Civil Aircraft and Related Articles.

52.225-8 Duty-Free Entry.

52.225-9 Buy American—Construction Materials.

52.227-19 Commercial Computer Software License.

52.227-20 Rights in Data—SBIR Program.

52.246-11 Higher-Level Contract Quality Requirement.

52.246-15 Certificate of Conformance.

52.247-36 F.a.s. Vessel, Port of Shipment.

52.247-37 F.o.b. Vessel, Port of Shipment.

52.247-38 F.o.b. Inland Carrier, Point of Exportation.

52.247-39 F.o.b. Inland Point, Country of Importation.

52.247-40 Ex Dock, Pier, or Warehouse, Port of Importation.

52.247-41 C.&F. Destination.

52.247-42 C.i.f. Destination.

52.247-43 F.o.b. Designated Air Carrier’s Terminal, Point of Exportation.

52.247-44 F.o.b. Designated Air Carrier’s Terminal, Point of Importation.

52.247-51 Evaluation of Export Offers.

52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment.

52.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.

252.225-7052 Restriction on the Acquisition of Certain Magnets and Tungsten.

252.208-7000 Intent to Furnish Precious Metals as Government-Furnished Material.

252.217-7001 Surge Option.

252.217-7026 Identification of Sources of Supply.

252.225-7001 Buy American and Balance of Payments Program.

252.225-7018 Photovoltaic Devices—Certificate.

252.225-7038 Restriction on Acquisition of Air Circuit Breakers.

252.225-7044 Balance of Payments Program--Construction Material.

252.225-7045 Balance of Payments Program--Construction Material Under Trade Agreements.

252.229-7001 Tax Relief.

252.229-7002 Customs Exemptions (Germany).

252.239-7017 Notice of Supply Chain Risk.

252.239-7018 Supply Chain Risk.

252.246-7007 Contractor Counterfeit Electronic Part Detection and Avoidance System.

252.247-7021 Returnable Containers Other Than Cylinders.

252.225-7017 Photovoltaic Devices.

252.225-7021 Trade Agreements.

252.225-7036 Buy American—Free Trade Agreements--Balance of Payments

1852.225-8 Duty-Free Entry of Space Articles.

1852.235-73 Final Scientific and Technical Reports.

1852.242-73 NASA Contractor Financial Management Reporting.

1852.245-73 Financial reporting of NASA property in the custody of contractors.

1852.246-71 Government Contract Quality Assurance.

1852.247-73 Bills of Lading.

5252.211-9507 PERIOD OF PERFORMANCE (NAVAIR)

5252.216-9506 MINIMUM AND MAXIMUM QUANTITIES (NAVAIR)(MAR 1999)

5252.247-9505 TECHNICAL DATA AND INFORMATION (NAVAIR)(FEB 1995)

5252.247-9517 PACKAGING REQUIREMENTS FOR SHIPMENTS CONTAINING NON-MANUFACTURED WOOD PACKING MATERIALS (NAVAIR) (FEB 2002)

5252.204-9501 National Stock Numbers (NAVAIR) (Mar 2007)

5252.247-9507 Packaging and Marking of Reports (NAVAIR)

5252.247-9508 Prohibited Packing Materials (NAVAIR)

5252.247-9509 Preservation, Packaging, Packing, and Marking (NAVAIR) (Jul 1998)

5252.247-9510 Preservation, Packaging, Packing, and Marking for Foreign Military Sales (FMS) Requirements (NAVAIR) (Oct 2005)

5252.247-9514 Technical Data Packing Instructions (NAVAIR)

5252.225-9506 VERIFICATION OF "SHIP TO" AND/OR "NOTICE OF AVAILABILITY" ADDRESS (NAVAIR)

5252.246-9517 CONSTRUCTIVE ACCEPTANCE PERIOD (NAVAIR)

5252.232-9522 TRANSPORTATION ACCOUNT CODES (NAVAIR)

5352.217-9000 Long Lead Limitation of Government Liability

5152.247-5900 Inbound/Outbound Cargo and Contractor Equipment Census

5152.225-5914 Commodity Shipping Instructions

5152.236-5900 Electrical and Structural Building Standards for Construction Projects

552.211-13 Time Extensions.

552.211-73 Marking.

552.211-75 Preservation, Packaging and Packing.

552.211-76 Charges for Packaging , Packing, and Marking.

552.211-77 Packing List.

552.211-79 Acceptable Age of Supplies.

552.211-80 Age on Delivery.

552.211-81 Time of Shipment.

552.211-83 Availability for Inspection, Testing, and Shipment/Delivery.

552.211-85 Consistent Pack and Package Requirements.

552.211-86 Maximum Weight per Shipping Container.

552.211-87 Export Packing.

552.211-88 Vehicle Export Preparation.

552.211-89 Non-Manufactured Wood Packaging Material for Export.

552.211-90 Small Parts.

552.211-91 Vehicle Decals, Stickers, and Data Plates.

552.211-92 Radio Frequency Identification (RFID) Using Passive Tags.

552.211-94 Time of Delivery.

552.242-70 Status Report of Orders and Shipments.

552.246-70 Source Inspection by Quality Approved Manufacturer.

552.246-71 Source Inspection by Government.

552.246-72 Final Inspection and Tests.

552.246-77 Additional Contract Warranty Provisions for Supplies of a Noncomplex Nature.

552.246-78 Inspection at Destination.

652.247-70 Notice of Shipments.

652.247-71 Shipping Instructions

752.247-70 Preference for privately owned U.S.-flag commercial vessels.

952.211-70 Priorities and allocations for energy programs (solicitations).

952.211-71 Priorities and allocations for energy programs (contracts).

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