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FAR and DFARS › DFARS Part 252: Solicitation Provisions and Contract Clauses › Subpart 252.2

DFARS 252.229-7009 Relief from customs duty and value added tax on fuel (passenger vehicles) (United Kingdom).

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause applies to contracts performed in the United Kingdom and provides relief from customs duty and value added tax on fuel used by passenger vehicles (except taxis). It requires contractors to follow HM Customs and Excise Notice No. 431B procedures to obtain the relief, and sets fuel allowances based on vehicle seating capacity.

Applies to: Contracts performed in the United Kingdom involving passenger vehicles (except taxis)

What it requires

  • Use HM Customs and Excise Notice No. 431B procedures to obtain relief from customs duty and value added tax for fuel used under the contract
  • Base unit prices on recoupment of customs duty using the specified fuel allowances by seating capacity
  • If route mileage changes within 10 percent with no change in route price, reclaim customs duty from HM Customs and Excise on actual mileage performed

Key terms: customs duty · value added tax · HM Customs and Excise Notice No. 431B · passenger vehicles · seating capacity

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 229.402-70(i), use the following clause:

Relief from Customs Duty and Value Added Tax on Fuel (Passenger Vehicles) (United Kingdom) (JUN 1997)

(a) Pursuant to an agreement between the United States Government and Her Majesty's (HM) Customs and Excise, fuels and lubricants used by passenger vehicles (except taxis) in the performance of this contract will be exempt from customs duty and value added tax. Therefore, the procedures outlined in HM Customs and Excise Notice No. 431B, August 1982, and any amendment thereto, shall be used to obtain relief from both customs duty and value added tax for fuel used under the contract. These procedures shall apply to both loaded and unloaded miles. The unit prices shall be based on the recoupment by the Contractor of customs duty in accordance with the following allowances:

(1) Vehicles (except taxis) with a seating capacity of less than 29, one gallon for every 27 miles.

(2) Vehicles with a seating capacity of 29-53, one gallon for every 13 miles.

(3) Vehicles with a seating capacity of 54 or more, one gallon for every 10 miles.

(b) In the event the mileage of any route is increased or decreased within 10 percent, resulting in no change in route price, the customs duty shall be reclaimed from HM Customs and Excise on actual mileage performed.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.229-7008 Relief from Import Duty (United Kingdom) · 252.229-7010 Relief from customs duty on fuel (United Kingdom). →

Rule changes for DFARS Part 252

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 252.229-7009 Relief from customs duty and value added tax on fuel (passenger vehicles) (United Kingdom) · SpendQuery