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   <concept id="DFARS_252.225-7013"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.225-7013</ph> Duty-Free Entry.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p id="dbRoye" class="- topic/p ">As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                  base="DFARS-225.1101"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">225.1101</xref> (4), use the
following clause:</p>
         <p class="- topic/p "
            rev="Revised November 17, 2023"
            outputclass="Ctr_SmCaps">Duty-Free Entry (NOV 2023)</p>
         <p class="- topic/p " outputclass="List1" id="rIZZnv">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As
used in this clause—</p>
         <p id="jSfjCw" class="- topic/p ">“Component,” means any item supplied to the Government
as part of an end product or of another component.</p>
         <p id="TQJVrp" class="- topic/p ">“Customs territory of the United States” means
the 50 States, the District of Columbia, and Puerto Rico.</p>
         <p id="RKXaNB" class="- topic/p ">“Eligible product” means—</p>
         <p class="- topic/p " outputclass="List3" id="PAPnjc">(1) “Designated country end product,” as defined in the Trade Agreements (either basic or alternate) clause of this contract;</p>
         <p class="- topic/p " outputclass="List2"> (2) <i class="+ topic/ph hi-d/i ">Free Trade Agreement country end product,</i> other than a
<i class="+ topic/ph hi-d/i "/>
            <ph class="- topic/ph " rev="Revised November 17, 2023">Bahraini</ph>
            <i class="+ topic/ph hi-d/i "> end
product,</i> a <i class="+ topic/ph hi-d/i ">Moroccan end product,</i> a <i class="+ topic/ph hi-d/i ">Panamanian end product,</i> or
a <i class="+ topic/ph hi-d/i ">Peruvian end product,</i> as defined in the Buy American—Free Trade
Agreements—Balance of Payments Program (either basic or alternate II) clause of
this contract; or</p>
         <p class="- topic/p " outputclass="List2"> (3) <i class="+ topic/ph hi-d/i ">Free Trade Agreement country end product</i> other than a
<i class="+ topic/ph hi-d/i "/>
            <ph class="- topic/ph " rev="Revised November 17, 2023">Bahraini</ph>
            <i class="+ topic/ph hi-d/i "> end
product, Korean end product,</i>
            <i class="+ topic/ph hi-d/i ">Moroccan end product, Panamanian end
product,</i> or <i class="+ topic/ph hi-d/i ">Peruvian end product,</i> as defined in the Buy American—Free
Trade Agreements—Balance of Payments Program (either alternate IV or alternate
V) clause of this contract.</p>
         <p id="jaLWbU" class="- topic/p ">“Qualifying country” and “qualifying country end
product” have the meanings given in the Trade Agreements clause,
the Buy American and Balance of Payments Program clause, or the
Buy American—Free Trade Agreements—Balance of Payments Program clause
of this contract, basic or alternate.</p>
         <p class="- topic/p " outputclass="List1" id="vDsRSW">(b) Except as provided in
paragraph (i) of this clause, or unless supplies were imported into
the customs territory of the United States before the date of this
contract or the applicable subcontract, the price of this contract
shall not include any amount for duty on—</p>
         <p class="- topic/p " outputclass="List2" id="aaWtKr">(1) End items that are eligible
products or qualifying country end products;</p>
         <p class="- topic/p " outputclass="List2" id="lEwluU">(2) Components (including,
without limitation, raw materials and intermediate assemblies) produced
or made in qualifying countries, that are to be incorporated in
U.S.- made end products to be delivered under this contract; or</p>
         <p class="- topic/p " outputclass="List2" id="AzgxrY">(3) Other supplies for which
the Contractor estimates that duty will exceed $300 per shipment
into the customs territory of the United States.</p>
         <p class="- topic/p " outputclass="List1" id="JDXMAU">(c) The Contractor shall—</p>
         <p class="- topic/p " outputclass="List2" id="QGUSxl">(1) Claim duty-free entry
only for supplies that the Contractor intends to deliver to the
Government under this contract, either as end items or components
of end items; and</p>
         <p class="- topic/p " outputclass="List2" id="VjOHma">(2) Pay duty on supplies,
or any portion thereof, that are diverted to nongovernmental use,
other than—</p>
         <p class="- topic/p " outputclass="List3" id="HPCCas">(i) Scrap or salvage; or</p>
         <p class="- topic/p " outputclass="List3" id="fSAEll">(ii) Competitive sale made,
directed, or authorized by the Contracting Officer.</p>
         <p class="- topic/p " outputclass="List1" id="pbFxDM">(d) Except as the Contractor
may otherwise agree, the Government will execute duty-free entry
certificates and will afford such assistance as appropriate to obtain
the duty-free entry of supplies—</p>
         <p class="- topic/p " outputclass="List2" id="tpWuTF">(1) For which no duty is
included in the contract price in accordance with paragraph (b)
of this clause; and</p>
         <p class="- topic/p " outputclass="List2" id="ATcINE">(2) For which shipping documents
bear the notation specified in paragraph (e) of this clause.</p>
         <p class="- topic/p " outputclass="List1" id="nXtfTz">(e) For foreign supplies
for which the Government will issue duty-free entry certificates
in accordance with this clause, shipping documents submitted to
Customs shall—</p>
         <p class="- topic/p " outputclass="List2" id="UvpktU">(1) Consign the shipments
to the appropriate—</p>
         <p class="- topic/p " outputclass="List3" id="MNDrXr">(i) Military department in
care of the Contractor, including the Contractor's delivery address;
or</p>
         <p class="- topic/p " outputclass="List3" id="JaXQet">(ii) Military installation;
and</p>
         <p class="- topic/p " outputclass="List2" id="IZqrfe">(2) Include the following
information:</p>
         <p class="- topic/p " outputclass="List3" id="YXptBJ">(i) Prime contract number
and, if applicable, delivery order number.</p>
         <p class="- topic/p " outputclass="List3" id="GtSxIw">(ii) Number of the subcontract
for foreign supplies, if applicable.</p>
         <p class="- topic/p " outputclass="List3" id="OIveci">(iii) Identification of the
carrier.</p>
         <p class="- topic/p " outputclass="List3" id="QHHpMt">(iv)(A) For direct shipments
to a U.S. military installation, the notation: “UNITED STATES GOVERNMENT, DEPARTMENT
OF DEFENSE Duty-Free Entry to be claimed pursuant to Section XXII,
Chapter 98, Subchapter VIII, Item 9808.00.30 of the Harmonized Tariff
Schedule of the United States. Upon arrival of shipment at the appropriate
port of entry, District Director of Customs, please release shipment
under 19 CFR Part 142 and notify Commander, Defense Contract Management Agency
(DCMA), St. Louis, MO, ATTN: Duty Free Entry Team, 1222 Spruce Street,
Room 9.300, St. Louis, MO 63103-2812, for execution of Customs
Form 7501, 7501A, or 7506 and any required duty-free entry certificates.”</p>
         <p class="- topic/p " outputclass="List4" id="esuZgo">(B) If the shipment will
be consigned to other than a military installation, e.g., a domestic
contractor's plant, the shipping document notation shall be altered
to include the name and address of the contractor, agent, or broker
who will notify Commander, DCMA New York, for execution of the duty-free
entry certificate. (If the shipment will be consigned to a contractor’s
plant and no duty-free entry certificate is required due to a trade
agreement, the Contractor shall claim duty-free entry under the
applicable trade agreement and shall comply with the U.S. Customs
Service requirements. No notification to Commander, DCMA New York,
is required.)</p>
         <p class="- topic/p " outputclass="List3" id="KhwFev">(v) Gross weight in pounds
(if freight is based on space tonnage, state cubic feet in addition
to gross shipping weight).</p>
         <p class="- topic/p " outputclass="List3" id="hfcREw">(vi) Estimated value in U.S.
dollars.</p>
         <p class="- topic/p " outputclass="List3" id="JMBLTd">(vii) Activity address number
of the contract administration office administering the prime contract,
e.g., for DCMA Dayton, S3605A.</p>
         <p class="- topic/p " outputclass="List1" id="ZJAXDH">(f) <i class="+ topic/ph hi-d/i ">Preparation of customs
forms.</i>
         </p>
         <p class="- topic/p " outputclass="List2" id="JdzISU">(1)(i) Except for shipments
consigned to a military installation, the Contractor shall—</p>
         <p class="- topic/p " outputclass="List4" id="kPievr">(A) Prepare any customs forms
required for the entry of foreign supplies into the customs territory
of the United States in connection with this contract; and</p>
         <p class="- topic/p " outputclass="List4" id="ImYtAw">(B) Submit the completed
customs forms to the District Director of Customs, with a copy to
DCMA NY for execution of any required duty-free entry certificates.</p>
         <p class="- topic/p " outputclass="List3" id="tkmOAA">(ii) Shipments consigned
directly to a military installation will be released in accordance
with sections 10.101 and 10.102 of the U.S. Customs regulations.</p>
         <p class="- topic/p " outputclass="List2" id="zMEcrj">(2) For shipments containing
both supplies that are to be accorded duty-free entry and supplies
that are not, the Contractor shall identify on the customs forms
those items that are eligible for duty-free entry.</p>
         <p class="- topic/p " outputclass="List1" id="psMuLL">(g) The Contractor shall—</p>
         <p class="- topic/p " outputclass="List2" id="GiuXjh">(1) Prepare (if the Contractor
is a foreign supplier), or shall instruct the foreign supplier to
prepare, a sufficient number of copies of the bill of lading (or
other shipping document) so that at least two of the copies accompanying
the shipment will be available for use by the District Director
of Customs at the port of entry;</p>
         <p class="- topic/p " outputclass="List2" id="IaZQqG">(2) Consign the shipment
as specified in paragraph (e) of this clause; and</p>
         <p class="- topic/p " outputclass="List2" id="FzSYIR">(3) Mark on the exterior
of all packages—</p>
         <p class="- topic/p " outputclass="List3" id="lFeRRy">(i) “UNITED STATES GOVERNMENT,
DEPARTMENT OF DEFENSE”; and</p>
         <p class="- topic/p " outputclass="List3" id="lOzCej">(ii) The activity address
number of the contract administration office administering the prime
contract.</p>
         <p class="- topic/p " outputclass="List1" id="FAyWDi">(h) The Contractor shall
notify the Administrative Contracting Officer (ACO) in writing of
any purchase of eligible products or qualifying country supplies
to be accorded duty-free entry, that are to be imported into the
customs territory of the United States for delivery to the Government
or for incorporation in end items to be delivered to the Government.
The Contractor shall furnish the notice to the ACO immediately upon
award to the supplier and shall include in the notice—</p>
         <p class="- topic/p " outputclass="List2" id="JKhPFK">(1) The Contractor’s name,
address, and Commercial and Government Entity (CAGE) code;</p>
         <p class="- topic/p " outputclass="List2" id="Zxfrsr">(2) Prime contract number
and, if applicable, delivery order number;</p>
         <p class="- topic/p " outputclass="List2" id="DECxtu">(3) Total dollar value of
the prime contract or delivery order;</p>
         <p class="- topic/p " outputclass="List2" id="mtnRkF">(4) Date of the last scheduled
delivery under the prime contract or delivery order;</p>
         <p class="- topic/p " outputclass="List2" id="AbzARn">(5) Foreign supplier's name
and address;</p>
         <p class="- topic/p " outputclass="List2" id="LJsHcK">(6) Number of the subcontract
for foreign supplies;</p>
         <p class="- topic/p " outputclass="List2" id="TjFykB">(7) Total dollar value of
the subcontract for foreign supplies;</p>
         <p class="- topic/p " outputclass="List2" id="jvzdzQ">(8) Date of the last scheduled
delivery under the subcontract for foreign supplies;</p>
         <p class="- topic/p " outputclass="List2" id="RNlJtr">(9) List of items purchased;</p>
         <p class="- topic/p " outputclass="List2" id="RfhAWd">(10) An agreement that the
Contractor will pay duty on supplies, or any portion thereof, that
are diverted to nongovernmental use other than—</p>
         <p class="- topic/p " outputclass="List3" id="yHZNoH">(i) Scrap or salvage; or</p>
         <p class="- topic/p " outputclass="List3" id="nuwQSe">(ii) Competitive sale made,
directed, or authorized by the Contracting Officer;</p>
         <p class="- topic/p " outputclass="List2" id="WCBBNl">(11) Country of origin; and</p>
         <p class="- topic/p " outputclass="List2" id="zAoaaz">(12) Scheduled delivery date(s).</p>
         <p class="- topic/p " outputclass="List1" id="xZexuR">(i) This clause does not
apply to purchases of eligible products or qualifying country supplies
in connection with this contract if—</p>
         <p class="- topic/p " outputclass="List2" id="sIHBjl">(1) The supplies are identical
in nature to supplies purchased by the Contractor or any subcontractor
in connection with its commercial business; and</p>
         <p class="- topic/p " outputclass="List2" id="gAHbxh">(2) It is not economical
or feasible to account for such supplies so as to ensure that the
amount of the supplies for which duty-free entry is claimed does
not exceed the amount purchased in connection with this contract.</p>
         <p class="- topic/p " outputclass="List1" id="KBInnN">(j) The Contractor shall—</p>
         <p class="- topic/p " outputclass="List2" id="IhzPbh">(1) Insert the substance
of this clause, including this paragraph (j), in all subcontracts
for—</p>
         <p class="- topic/p " outputclass="List3" id="hcxDZz">(i) Qualifying country components;
or</p>
         <p class="- topic/p " outputclass="List3" id="KdrMOW">(ii) Nonqualifying country
components for which the Contractor estimates that duty will exceed
$200 per unit;</p>
         <p class="- topic/p " outputclass="List2" id="XQwkOT">(2) Require subcontractors
to include the number of this contract on all shipping documents
submitted to Customs for supplies for which duty-free entry is claimed
pursuant to this clause; and</p>
         <p class="- topic/p " outputclass="List3" id="AhtRMo">(3) Include in applicable
subcontracts—</p>
         <p class="- topic/p " outputclass="List3" id="aZQKTo">(i) The name and address
of the ACO for this contract;</p>
         <p class="- topic/p " outputclass="List3" id="OEWuvQ">(ii) The name, address, and
activity address number of the contract administration office specified
in this contract; and</p>
         <p class="- topic/p " outputclass="List3" id="hiSCwS">(iii) The information required
by paragraphs (h)(1), (2), and (3) of this clause.</p>
         <p id="ucNdeh" outputclass="Endofclause Ctr" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
