Overview
This section establishes the requirement for federal agencies to utilize available customs duty exemptions for foreign supplies imported into the United States. It emphasizes a cost-benefit approach to deciding whether to apply for these exemptions.
Key Rules
- General Liability: Foreign supplies imported into the U.S. customs territory are typically subject to duties under U.S. law.
- Exemption Availability: Government agencies are legally entitled to certain exemptions from these import duties.
- Mandatory Usage: Agencies are required to use duty exemptions if the savings to the government's appropriated funds exceed the administrative costs of the paperwork involved.
Practical Implications
- Contracting officers and procurement specialists must evaluate whether the administrative effort of filing for duty-free entry is justified by the amount of the duty saved.
- By utilizing these exemptions, agencies can maximize their budgets and avoid "paying themselves" through internal government transfers of duty funds.