Overview
This section establishes the foundational purpose of Subpart 25.9, which defines the specific policies and administrative procedures for waiving or exempting import duties on supplies acquired for federal government use.
Key Rules
- Regulatory Framework: It identifies the subpart as the primary source for instructions on handling customs duties related to government procurement.
- Applicability: The scope is limited specifically to supplies purchased under the authority of Government contracts.
- Procedural Directive: It mandates that any exemptions granted must follow the specific procedures detailed in the subsequent sections of the subpart (FAR 25.901 through 25.903).
Practical Implications
- Cost Management: By utilizing these exemptions, contractors can lower their bid prices since they do not need to factor the cost of import duties into their proposals for eligible supplies.
- Compliance Requirement: Contracting officers and contractors must ensure that all imported goods meet the specific criteria for "duty-free entry" to avoid legal complications or unexpected costs at the border.