GroundRules
48 CFR 252.229-7014: 252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.
Where this section sits in the code
- Title 48—Federal Acquisition Regulations System
- CHAPTER 2—DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE
- SUBCHAPTER H—CLAUSES AND FORMS
- PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES
- Subpart 252.2—Text of Provisions and Clauses
As prescribed in 229.402-70(k), use the following clause:
Full Exemption From Two-Percent Excise Tax on Certain Foreign Procurements (OCT 2022)
(a) As the Contractor represented in its offer, any item, including any item delivered under subcontract; any service; or any combination thereof delivered under this contract is fully exempt from the 2-percent excise tax withholding imposed by 26 U.S.C. 5000C and implemented by Federal Acquisition Regulation (FAR) 52.229-12, Tax on Certain Foreign Procurements.
(b) If the full exemption no longer applies due to a change in circumstances during the performance of the contract, causing the Contractor to become subject to the withholding for the 2-percent excise tax as imposed by 26 U.S.C. 5000C, then the Contractor shall immediately comply with the notification and billing requirements of FAR clause 52.229-12.
(End of clause)
Collected 2026-08-27T02:26:29Z. Source file · JSON