As prescribed in 229.402-70(a) and (a)(1), use the basic or the alternate of the clause at 252.229-7001,Tax Relief, in solicitations and contracts when a contract will be awarded to a foreign concern for performance in a foreign country.
(1) Use the basic clause in solicitations and contracts when the contract will be performed in a foreign country other than Germany.
(2) Use the alternate I clause in solicitations and contracts when the contract will be performed in Germany.
TAX RELIEF—BASIC (SEP 2014)
(a) Prices set forth in this contract are exclusive of all taxes and duties from which the United States Government is exempt by virtue of tax agreements between the United States Government and the Contractor’s government. The following taxes or duties have been excluded from the contract price:
NAME OF TAX: (Offeror insert)
RATE (PERCENTAGE): (Offeror insert)
(b) The Contractor’s invoice shall list separately the gross price, amount of tax deducted, and net price charged.
(c) When items manufactured to United States Government specifications are being acquired, the Contractor shall identify the materials or components intended to be imported in order to ensure that relief from import duties is obtained. If the Contractor intends to use imported products from inventories on hand, the price of which includes a factor for import duties, the Contractor shall ensure the United States Government’s exemption from these taxes. The Contractor may obtain a refund of the import duties from its government or request the duty-free import of an amount of supplies or components corresponding to that used from inventory for this contract.
(End of clause)