<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE dita
  PUBLIC "-//OASIS//DTD DITA Composite//EN" "ditabase.dtd">
<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
      domains="(topic task)                            (topic concept)                            (topic concept glossentry)                            (topic concept glossgroup)                            (topic reference)                            (topic troubleshooting++task) (topic task)                            (topic abbrev-d)                            a(props deliveryTarget)                            (topic equation-d)                            (topic hazard-d)                            (topic hi-d)                            (topic indexing-d)                            (topic markup-d)                            (topic mathml-d)                            (topic pr-d)                            (topic relmgmt-d)                            (topic sw-d)                            (topic svg-d)                            (topic ui-d)                            (topic ut-d)                            (topic markup-d xml-d)                            (topic task strictTaskbody-c)   "
      ditaarch:DITAArchVersion="1.3">
   <concept id="DFARS_229.170-2"
            ditaarch:DITAArchVersion="1.3"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">229.170-2</ph> Policy.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(a)  By law, bilateral agreements with foreign governments must include a provision that commodities acquired under contracts funded by U.S. assistance programs shall be exempt from taxation by the foreign government.  If taxes or customs duties nevertheless are imposed, the foreign government must reimburse the amount of such taxes to the U.S. Government (Section 579 of Division E of the Consolidated Appropriations Act, 2003 (Pub. L. 108-7), as amended by Section 506 of Division D of the Consolidated Appropriations Act, 2004 (Pub. L. 108-199), and similar sections in subsequent acts).</p>
         <p outputclass="List1" class="- topic/p ">(b)  This foreign tax exemption—</p>
         <p outputclass="List2" class="- topic/p ">(1)  Applies to a contract or subcontract for commodities when—</p>
         <p outputclass="List3" class="- topic/p ">(i)  The funds are appropriated by the annual foreign operations appropriations act; and</p>
         <p outputclass="List3" class="- topic/p ">(ii)  The value of the contract or subcontract is $500 or more;</p>
         <p outputclass="List2" class="- topic/p ">(2)  Does not apply to the acquisition of services;</p>
         <p outputclass="List2" class="- topic/p ">(3)  Generally is implemented through letters of offer and acceptance, other country-to-country agreements, or Federal interagency agreements; and</p>
         <p outputclass="List2" class="- topic/p ">(4)  Requires reporting of noncompliance for effective implementation.</p>
      </conbody>
   </concept>
</dita>
