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

PGI › Part 252 › PGI 252.229-7014

This PGI section supplements: DFARS 252.229-7014 · FAR 52.229-7014
The corresponding FAR Part 52 and DFARS Part 252 have been overhauled under the RFO. PGI replacement text is provided in the RFO deviation attachment. View FAR Part 52

Current Content

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)

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