PGI 229.7001: Tax exemption in Spain.

(a) The Office of Defense Cooperation (ODC), Spain Policy Directive 400.4, or subsequent directive, applies to U.S. contracting offices acquiring supplies or services in Spain when the introduction of material or equipment into Spain is required for contract performance.

(b) Upon award of a contract with a Direct Contractor, as defined in the clause at DFARS 252.229-7004, the contracting officer will notify U.S. Section of the U.S.–Spanish Permanent Committee (PC), Madrid, Spain, and the Customs Clearance Officer, NAVSUP-FLC Rota, Spain, and will forward a copy of the contract to the U.S. PC Section, Madrid.

(c) If a copy of the contract is not available and duty-free import of equipment or materials is urgent, the contracting officer will forward to the U.S. PC Section, Madrid, a Letter of Intent or a similar document indicating the pending award. In these cases, the Government of Spain may issue authorization for duty-free import. Upon formal award, the contracting officer will the completed contract to the U.S. PC Section, Madrid.

(d) The contracting officer will notify the U.S. PC Section, Madrid and the Customs Clearance Officer, NAVSUP-FLC Rota, Spain of designated ports-of-entry and identify the customs agents who will clear property on their behalf. Additional documentation required for port-of-entry and customs clearance can be obtained by Customs Clearance Officer, NAVSUP-FLC Rota, Spain. This information will be passed provided to the Secretaria General Tecnica del Ministerio de Hacienda (Technical General Secretariat of the Ministry of Finance). A list of authorized customs agents may be obtained from the contracting office.