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part52.dev Federal Acquisition Clause Monitor

PGI 229.7002-2: Import duty.

R-DFARS PGI › Part 229 › PGI 229.7002-2 · issued under 2026-O0007

Deviated Text
This text comes from the Word attachment to class deviation 2026-O0007, not from acquisition.gov. The deviation memo directs contracting officers to use it in place of the codified PGI. The source attachment linked below is authoritative.

Text

The United States shall not pay a contract import duty and contract prices must be exclusive of duty, except when the administrative cost compared to the low dollar value of a contract makes it impracticable to obtain relief from contract import duty. In this instance, the contracting officer must document the contract file with a statement that

(a) The administrative burden of securing tax relief under the contract was out of proportion to the tax relief involved;

(b) It is impracticable to secure tax relief;

(c) Tax relief is therefore not being secured; and

(d) The acquisition does not involve the expenditure of any funds to establish a permanent military installation.

Sources: Deviation attachment (.docx) · Codified PGI 229.7002-2