SpendQueryBeta

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

DFARS 252.229-7011 Reporting of Foreign Taxes—U.S. Assistance Programs.

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 states that commodities acquired under the contract are exempt from value added taxes and customs duties imposed by the recipient country. It requires the contractor to tell the foreign government about the exemption and to notify the Contracting Officer if taxes are still imposed. It also requires passing the clause down to certain subcontracts.

Applies to: Contractors acquiring commodities under U.S. assistance programs

What it requires

  • Inform the foreign government of the tax exemption as documented in the Letter of Offer and Acceptance, country-to-country agreement, or interagency agreement.
  • If the foreign government or entity nevertheless imposes taxes, promptly notify the Contracting Officer and provide documentation showing the foreign government was apprised of the tax exemption.
  • Insert the substance of this clause, including paragraph (e), in all subcontracts for commodities that exceed $500.

Key terms: Commodities · value added taxes · customs duties · recipient country · Letter of Offer and Acceptance

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

The text

As prescribed in 229.170-4, use the following clause:

Reporting of Foreign Taxes—U.S. Assistance Programs (SEP 2005)

(a) Definition. Commodities, as used in this clause, means any materials, articles, supplies, goods, or equipment.

(b) Commodities acquired under this contract shall be exempt from all value added taxes and customs duties imposed by the recipient country. This exemption is in addition to any other tax exemption provided through separate agreements or other means.

(c) The Contractor shall inform the foreign government of the tax exemption, as documented in the Letter of Offer and Acceptance, country-to-country agreement, or interagency agreement.

(d) If the foreign government or entity nevertheless imposes taxes, the Contractor shall promptly notify the Contracting Officer and shall provide documentation showing that the foreign government was apprised of the tax exemption in accordance with paragraph (c) of this clause.

(e) The Contractor shall insert the substance of this clause, including this paragraph (e), in all subcontracts for commodities that exceed $500.

(End of clause)

Sections it refers to

Sections that refer to it

← 252.229-7010 Relief from customs duty on fuel (United Kingdom). · 252.229-7012 Tax exemptions (Italy)—representation. →

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 252.229-7011 Reporting of Foreign Taxes—U.S. Assistance Programs · SpendQuery