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DFARS 252.229-7014 — Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.

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252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.

Type: Clause

Prescribed in: 229.402-70(k)

Current version date: OCT 2022

Prescription and Applicability

DFARS Prescription, 229.402-70(k)

(k) Use the clause at 252.229-7014, Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements, in contracts that include the clause at FAR 52.229-12, Tax on Certain Foreign Procurements, when the contractor has--
(1) Represented that it is a foreign person in response to the provision at FAR 52.229-11, Tax on Certain Foreign Procurements--Notice and Representation; and
(2) Indicated that it is fully exempt from the tax for reasons cited on their IRS Form W-14, Certificate of Foreign Contracting Party Receiving Federal Procurement Payments.

Current Text

252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.

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)

[87 FR 65517, Oct. 28, 2022]

Active Class Deviations Affecting This Clause

Class Deviation 2026-O0007, DFARS RFO Implementation (Part 29)

  • Status: Active
  • Date Issued: 2026-02-01
  • Change type: MODIFIED
  • Action: Modified by RFO class deviation

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Source: https://part52.dev

Generated: 2026-04-21 17:40 UTC

Reference: https://www.ecfr.gov/current/title-48/section-252.229-7014