Defense Federal Acquisition Regulation Supplement: Taxes-Foreign Contracts in Afghanistan (DFARS Case 2014-D003), 35715-35717 [2014-14595]
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Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules
Operational Tracker (SPOT) System,
which is approved through August 31,
2016, for 150,000 burden hours.
List of Subjects in 48 CFR Parts 212,
225, and 252
Government procurement.
Amy G. Williams,
Deputy, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 212, 225, and
252 are proposed to be amended as
follows:
■ 1. The authority citation for parts 212,
225, and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
4. Add section 252.225–7039 to read
as follows:
2. In section 212.301, redesignate
paragraphs (f)(xlv) through (lxx) as
paragraphs (f)(xlvi) through (lxxi) and
add a new paragraph (f)(xlv) to read as
follows:
■
212.301 Solicitation provisions and
contract clauses for the acquisition of
commercial items.
(f) * * *
(xlv) Use the clause at 252.225–7039,
Defense Contractors Performing Private
Security Functions Outside the United
States, as prescribed in 225.302–6, to
comply with section 2 of Pub. L. 110–
181, as amended.
*
*
*
*
*
PART 225—FOREIGN ACQUISITION
3. Add sections 225.302, 225.302–2,
and 225.302–6 to subpart 225.3 to read
as follows:
■
225.302 Contractors performing private
security functions outside the United
States.
Definitions.
Peace operation, as used in this
section, means a military mission to
contain conflict, redress the peace, and
shape the environment to support
reconciliation and rebuilding and
facilitate the transition to legitimate
governance.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
225.302–6
Contract clause.
Use the clause at 252.225–7039,
Defense Contractors Performing Private
Security Functions Outside the United
States, in solicitations and contracts,
including solicitations and contracts
using FAR part 12 procedures for the
acquisition of commercial items, when
private security functions are to be
performed outside the United States
in—
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PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
■
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
225.302–2
(1) Contingency operations;
(2) Combat operations, as designated
by the Secretary of Defense;
(3) Other significant military
operations (as defined in 32 CFR part
159), designated by the Secretary of
Defense, and only upon agreement of
the Secretary of Defense and the
Secretary of State;
(4) Humanitarian or peace operations;
or
(5) Other military operations or
military exercises, when designated by
the Combatant Commander.
252.225–7039 Defense Contractors
Performing Private Security Functions
Outside the United States.
As prescribed in 225.302–6, insert the
following clause:
DEFENSE CONTRACTORS PERFORMING
PRIVATE SECURITY FUNCTIONS
OUTSIDE THE UNITED STATES (DATE)
(a) Definition. Peace operation, as used in
this clause, means a military mission to
contain conflict, redress the peace, and shape
the environment to support reconciliation
and rebuilding and facilitate the transition to
legitimate governance.
(b) Requirements. The Contractor shall—
(1) Register in the Synchronized
Predeployment and Operational Tracker
(SPOT)—
(i) Weapons to be carried by or available
to be used by personnel performing private
security functions; and
(ii) Armored vehicles, helicopters, and
other vehicles operated by personnel
performing private security functions; and
(2) Comply with ANSI/ASIS PSC.1–2012,
American National Standard, Management
System for Quality of Private Security
Company Operations—Requirements with
Guidance (located at www.acq.osd.mil/log/
PS/p_vault/item_1997-PSC_1_STD.PDF).
(c) Subcontracts. The Contractor shall
include the substance of this clause,
including paragraph (b) of this clause, in
subcontracts, including subcontracts for
commercial items, when private security
functions will be performed outside the
United States in areas of—
(1) Contingency operations;
(2) Combat operations, as designated by the
Secretary of Defense;
(3) Other significant military operations (as
defined in 32 CFR part 159), designated by
the Secretary of Defense upon agreement of
the Secretary of State;
(4) Humanitarian or peace operations; or
(5) Other military operations or military
exercises, when designated by the Combatant
Commander.
(End of clause)
BILLING CODE 5001–06–P
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 229 and 252
RIN 0750–AI26
Defense Federal Acquisition
Regulation Supplement: Taxes—
Foreign Contracts in Afghanistan
(DFARS Case 2014–D003)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
notify contractors of requirements
relating to Afghan taxes.
DATES: Comment Date: Comments on
the proposed rule should be submitted
in writing to the address shown below
on or before August 25, 2014, to be
considered in the formation of a final
rule.
SUMMARY:
Submit comments
identified by DFARS Case 2014–D003,
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2014–D003’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2014–
D003.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2014–
D003’’ on your attached document.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2014–D003 in the subject
line of the message.
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Jennifer
Hawes, OUSD(AT&L)DPAP/DARS,
Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check https://
www.regulations.gov, approximately
two to three days after submission to
verify posting (except allow 30 days for
posting of comments submitted by
mail).
ADDRESSES:
Ms.
Jennifer Hawes, telephone 571–372–
6115.
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2014–14594 Filed 6–23–14; 8:45 am]
PO 00000
35715
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Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules
rule is not a major rule under 5 U.S.C.
804.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS
to add two new clauses to notify
contractors of requirements relating to
Afghan taxes for contracts performed in
Afghanistan.
II. Discussion and Analysis
Agreements established between the
United States (U.S.) Forces and the
Afghanistan government exempt U.S.
contractors from paying liability for
Afghan taxes. The two clauses included
in the proposed rule, which implement
the tax exemptions, are as follows:
• DFARS 252.229–70XX, TaxesForeign Contracts in Afghanistan, would
be required to be included in all
solicitations and contracts with
performance in Afghanistan, unless the
clause at 252.229–70YY is used. The
Agreement regarding the U.S. Forces
and Afghanistan also exempts the
acquisition, importation, exportation,
and use of articles and services in the
Republic of Afghanistan by or on behalf
of the Government of the United States
of America in implementing this
agreement from any taxes, customs,
duties, or similar charges in
Afghanistan, and contractors shall
exclude any Afghan taxes, customs,
duties, or similar charges from contract
prices.
• DFARS 252.229–70YY, TaxesForeign Contracts in Afghanistan
(Military Technical Agreement), would
be required to be included in all
solicitations and contracts with
performance in Afghanistan awarded on
behalf of NATO if approval from the
Director, Defense Procurement and
Acquisition Policy, Office of the Under
Secretary of Defense for Acquisition,
Technology, and Logistics, is obtained
prior to each use.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
VerDate Mar<15>2010
15:58 Jun 23, 2014
Jkt 232001
List of Subjects in 48 CFR Parts 229 and
252
Government procurement.
IV. Regulatory Flexibility Act
DoD does not expect this proposed
rule to have a significant economic
impact on a substantial number of small
entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., because this rule applies to
requirements for taxes to be paid under
contracts that are performed in
Afghanistan. However, an initial
regulatory flexibility analysis has been
performed and is summarized as
follows.
This rule proposes to amend the
DFARS by incorporating DFARS clause
252.229–70XX, Taxes-Foreign Contracts
in Afghanistan, to be used in all
solicitations and contracts with
performance in Afghanistan, unless
DFARS clause 252.229–70YY is used.
This rule also includes DFARS clause
252.229–70YY, Taxes-Foreign Contracts
in Afghanistan (Military Technical
Agreement), to be used in all
solicitations and contracts with
performance in Afghanistan awarded on
behalf of NATO, which are governed by
the Military Technical Agreement, and
upon approval of the Director, Defense
Procurement and Acquisition Policy,
Office of the Under Secretary of Defense
for Acquisition, Technology, and
Logistics.
DoD does not expect this proposed
rule to have a significant economic
impact on a substantial number of small
entities because this rule addresses
requirements for taxes under contracts
performed in Afghanistan. The
proposed rule does not duplicate,
overlap, or conflict with any other
Federal rules.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such
comments separately and should cite 5
U.S.C. 610 (DFARS Case 2014–D003), in
correspondence.
V. Paperwork Reduction Act
The rule does not contain information
collection requirements that require the
approval of the Office of Management
and Budget under the Paperwork
Reduction Act (44 U.S.C. chapter 35).
PO 00000
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Amy G. Williams,
Deputy, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 229 and 252
are proposed to be amended as follows:
■ 1. The authority citation for parts 229
and 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 229—TAXES
2. Amend section 229.402–70 by
adding paragraphs (k) and (l) to read as
follows:
■
229.402–70
clauses.
Additional provisions and
*
*
*
*
*
(k) Use the clause at 252.229–70XX,
Taxes—Foreign Contracts in
Afghanistan, in all solicitations and
contracts with performance in
Afghanistan, unless the clause at
252.229–70YY is used.
(l) Use the clause at 252.229–70YY,
Taxes—Foreign Contracts in
Afghanistan (Military Technical
Agreement), in all solicitations and
contracts with performance in
Afghanistan awarded on behalf of
NATO, which are governed by the
Military Technical Agreement, if
approval from the Director, Defense
Procurement and Acquisition Policy,
Office of the Under Secretary of Defense
for Acquisition, Technology, and
Logistics, has been obtained prior to
each use.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Add section 252.229–70XX to read
as follows:
■
252.229–70XX Taxes—Foreign Contracts
in Afghanistan.
As prescribed in 229.402–70(k), use
the following clause:
TAXES—FOREIGN CONTRACTS IN
AFGHANISTAN (DATE)
(a) This acquisition is covered by the
Agreement regarding the Status of United
States Military and Civilian Personnel of the
U.S. Department of Defense Present in
Afghanistan with Cooperative Efforts in
Response to Terrorism, Humanitarian and
Civic Assistance, Military Training and
Exercises, and other Activities, entered into
between the United States and Afghanistan,
which was concluded by an exchange of
diplomatic notes (U.S. Embassy Kabul note
No. 202, dated September 26, 2002;
Afghanistan Ministry of Foreign Affairs notes
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Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules
791 and 93, dated December 12, 2002, and
May 28, 2003, respectively), and entered into
force on May 28, 2003.
(b) The Agreement exempts the
Government of the United States of America
and its contractors, subcontractors, and
contractor personnel from paying any tax or
similar charge assessed within Afghanistan.
The Agreement also exempts the acquisition,
importation, exportation, and use of articles
and services in the Republic of Afghanistan
by or on behalf of the Government of the
United States of America in implementing
this agreement from any taxes, customs,
duties, or similar charges in Afghanistan.
(c) The Contractor shall exclude any
Afghan taxes, customs, duties, or similar
charges from the contract price.
(d) The Agreement does not exempt
Afghan employees of DoD contractors and
subcontractors from Afghan tax laws. To the
extent required by Afghan law, the
Contractor shall withhold tax from the wages
of these employees and to remit those
payments to the appropriate Afghanistan
taxing authority. These withholdings are an
individual’s liability, not a tax against the
Contractor.
(e) The Contractor shall include the
substance of this clause, including this
paragraph (e), in all subcontracts, including
subcontracts for commercial items.
member states participating in the ISAF
remain exempt from other taxes, duties, sales
or other taxes, import fees, or fees of any
kind. The Contractor may include the tax on
profits in the contract price.
(2) Afghan citizens employed by NATO/
ISAF contractors and subcontractors are
subject to Afghan tax laws. To the extent
required by Afghan law, the Contractor shall
withhold tax from the wages of these
employees and to remit those withholdings
to the Afghanistan Revenue Department.
These withholdings are an individual’s
liability, not a tax against the Contractor.
(e) The Contractor shall include the
substance of this clause, including this
paragraph (e), in all subcontracts including
subcontracts for commercial items.
(End of clause)
■ 4. Add section 252.229–70YY to read
as follows:
RIN 0750–AI22
252.229–70YY Taxes—Foreign Contracts
in Afghanistan (Military Technical
Agreement).
mstockstill on DSK4VPTVN1PROD with PROPOSALS
As prescribed in 229.402–70(l), use
the following clause:
TAXES—FOREIGN CONTRACTS IN
AFGHANISTAN (MILITARY TECHNICAL
AGREEMENT) (DATE)
(a) This acquisition is covered by the
Military Technical Agreement (MTA) entered
into between the International Security
Assistance Forces (ISAF) and Interim
Administration of Afghanistan in April 2002
and the 2011 Letter of Interpretation issued
on March 9, 2011.
(b) The MTA establishes the basic rules
and exempts NATO/ISAF and its contractors
and subcontractors from paying any tax or
similar charge assessed within Afghanistan.
The MTA also exempts the acquisition,
importation, exportation and use of supplies
and services in Afghanistan from all Afghan
taxes, fees, duties or other form of revenue
generation.
(c) The Contractor shall exclude any
Afghan taxes, customs duties or similar
charges from its contract price, except as
modified in paragraph (d) of this clause.
(d) The ISAF 2011 Letter of Interpretation
modified the MTA’s tax exemption effective
March 21, 2011.
(1) Local contractors are subject to tax for
profits earned from NATO/ISAF contracts or
subcontract and may include that tax in its
contract price. The goods, materials, and
supplies acquired and the services provided
by local contractors for the use of NATO/
ISAF, NATO member states, and non-NATO
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(End of clause)
[FR Doc. 2014–14595 Filed 6–23–14; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisitions Regulations
System
48 CFR Parts 235, 237, and 252
Defense Federal Acquisition
Regulation Supplement; Animal
Welfare (DFARS Case 2013–D038)
Defense Acquisition
Regulations System; Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
comply with the Department of Defense
Instruction that addresses the use of
animals in DoD programs.
DATES: Comment Date: Comments on
the proposed rule should be submitted
in writing to the address shown below
on or before August 25, 2014, to be
considered in the formation of a final
rule.
SUMMARY:
Submit comments
identified by DFARS Case 2013–D038
using any of the following methods:
Æ Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2012–D038’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2013–
D038.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2012–
D038’’ on your attached document.
ADDRESSES:
PO 00000
Frm 00016
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35717
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2013–D038 in the subject
line of the message.
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Janetta
Brewer, OUSD(AT&L)DPAP/DARS,
Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms.
Janetta Brewer, Defense Acquisition
Regulations System,
OUSD(AT&L)DPAP/DARS, Room
3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060,
Telephone 571–372–6104.
SUPPLEMENTARY INFORMATION:
I. Background
This rule proposes to revise DFARS
235.072, 237.1, and the clause at
252.235–7002, Animal Welfare, to be
consistent with the Department of
Defense Instruction (DoDI) 3216.01
entitled ‘‘Use of Animals in DoD
Programs,’’ which governs DoDsupported research, development, test,
and evaluation or training that uses
vertebrate animals, and the acquisition
of animals.
II. Discussion and Analysis
The rule proposes to prescribe
inclusion of the clause at DFARS
252.235–7002 in solicitations and
contracts involving research,
development, test, and evaluation or
training that uses live vertebrate
animals. Contractors shall acquire and
care for animals in accordance with the
pertinent laws of the United States, the
regulations of the Department of
Agriculture, DoDI 3216.01, and agency
implementing regulations. The rule also
proposes to make contractor facilities
available for inspection by the
appropriate officials. It also adds
DFARS 237.17X to address training that
uses live vertebrate animals and to
provide a cross-reference to DFARS
235.072.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
E:\FR\FM\24JNP1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 121 (Tuesday, June 24, 2014)]
[Proposed Rules]
[Pages 35715-35717]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14595]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 229 and 252
RIN 0750-AI26
Defense Federal Acquisition Regulation Supplement: Taxes--Foreign
Contracts in Afghanistan (DFARS Case 2014-D003)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to notify contractors of requirements
relating to Afghan taxes.
DATES: Comment Date: Comments on the proposed rule should be submitted
in writing to the address shown below on or before August 25, 2014, to
be considered in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2014-D003, using
any of the following methods:
[cir] Regulations.gov: https://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``DFARS Case 2014-D003''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case
2014-D003.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``DFARS Case 2014-D003'' on your attached document.
[cir] Email: osd.dfars@mail.mil. Include DFARS Case 2014-D003 in
the subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Ms.
Jennifer Hawes, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to https://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting (except allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Hawes, telephone 571-372-
6115.
[[Page 35716]]
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS to add two new clauses to
notify contractors of requirements relating to Afghan taxes for
contracts performed in Afghanistan.
II. Discussion and Analysis
Agreements established between the United States (U.S.) Forces and
the Afghanistan government exempt U.S. contractors from paying
liability for Afghan taxes. The two clauses included in the proposed
rule, which implement the tax exemptions, are as follows:
DFARS 252.229-70XX, Taxes-Foreign Contracts in
Afghanistan, would be required to be included in all solicitations and
contracts with performance in Afghanistan, unless the clause at
252.229-70YY is used. The Agreement regarding the U.S. Forces and
Afghanistan also exempts the acquisition, importation, exportation, and
use of articles and services in the Republic of Afghanistan by or on
behalf of the Government of the United States of America in
implementing this agreement from any taxes, customs, duties, or similar
charges in Afghanistan, and contractors shall exclude any Afghan taxes,
customs, duties, or similar charges from contract prices.
DFARS 252.229-70YY, Taxes-Foreign Contracts in Afghanistan
(Military Technical Agreement), would be required to be included in all
solicitations and contracts with performance in Afghanistan awarded on
behalf of NATO if approval from the Director, Defense Procurement and
Acquisition Policy, Office of the Under Secretary of Defense for
Acquisition, Technology, and Logistics, is obtained prior to each use.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because this rule applies to requirements for taxes to be paid under
contracts that are performed in Afghanistan. However, an initial
regulatory flexibility analysis has been performed and is summarized as
follows.
This rule proposes to amend the DFARS by incorporating DFARS clause
252.229-70XX, Taxes-Foreign Contracts in Afghanistan, to be used in all
solicitations and contracts with performance in Afghanistan, unless
DFARS clause 252.229-70YY is used. This rule also includes DFARS clause
252.229-70YY, Taxes-Foreign Contracts in Afghanistan (Military
Technical Agreement), to be used in all solicitations and contracts
with performance in Afghanistan awarded on behalf of NATO, which are
governed by the Military Technical Agreement, and upon approval of the
Director, Defense Procurement and Acquisition Policy, Office of the
Under Secretary of Defense for Acquisition, Technology, and Logistics.
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities because this
rule addresses requirements for taxes under contracts performed in
Afghanistan. The proposed rule does not duplicate, overlap, or conflict
with any other Federal rules.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2014-D003), in
correspondence.
V. Paperwork Reduction Act
The rule does not contain information collection requirements that
require the approval of the Office of Management and Budget under the
Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 229 and 252
Government procurement.
Amy G. Williams,
Deputy, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 229 and 252 are proposed to be amended as
follows:
0
1. The authority citation for parts 229 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 229--TAXES
0
2. Amend section 229.402-70 by adding paragraphs (k) and (l) to read as
follows:
229.402-70 Additional provisions and clauses.
* * * * *
(k) Use the clause at 252.229-70XX, Taxes--Foreign Contracts in
Afghanistan, in all solicitations and contracts with performance in
Afghanistan, unless the clause at 252.229-70YY is used.
(l) Use the clause at 252.229-70YY, Taxes--Foreign Contracts in
Afghanistan (Military Technical Agreement), in all solicitations and
contracts with performance in Afghanistan awarded on behalf of NATO,
which are governed by the Military Technical Agreement, if approval
from the Director, Defense Procurement and Acquisition Policy, Office
of the Under Secretary of Defense for Acquisition, Technology, and
Logistics, has been obtained prior to each use.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Add section 252.229-70XX to read as follows:
252.229-70XX Taxes--Foreign Contracts in Afghanistan.
As prescribed in 229.402-70(k), use the following clause:
TAXES--FOREIGN CONTRACTS IN AFGHANISTAN (DATE)
(a) This acquisition is covered by the Agreement regarding the
Status of United States Military and Civilian Personnel of the U.S.
Department of Defense Present in Afghanistan with Cooperative
Efforts in Response to Terrorism, Humanitarian and Civic Assistance,
Military Training and Exercises, and other Activities, entered into
between the United States and Afghanistan, which was concluded by an
exchange of diplomatic notes (U.S. Embassy Kabul note No. 202, dated
September 26, 2002; Afghanistan Ministry of Foreign Affairs notes
[[Page 35717]]
791 and 93, dated December 12, 2002, and May 28, 2003,
respectively), and entered into force on May 28, 2003.
(b) The Agreement exempts the Government of the United States of
America and its contractors, subcontractors, and contractor
personnel from paying any tax or similar charge assessed within
Afghanistan. The Agreement also exempts the acquisition,
importation, exportation, and use of articles and services in the
Republic of Afghanistan by or on behalf of the Government of the
United States of America in implementing this agreement from any
taxes, customs, duties, or similar charges in Afghanistan.
(c) The Contractor shall exclude any Afghan taxes, customs,
duties, or similar charges from the contract price.
(d) The Agreement does not exempt Afghan employees of DoD
contractors and subcontractors from Afghan tax laws. To the extent
required by Afghan law, the Contractor shall withhold tax from the
wages of these employees and to remit those payments to the
appropriate Afghanistan taxing authority. These withholdings are an
individual's liability, not a tax against the Contractor.
(e) The Contractor shall include the substance of this clause,
including this paragraph (e), in all subcontracts, including
subcontracts for commercial items.
(End of clause)
0
4. Add section 252.229-70YY to read as follows:
252.229-70YY Taxes--Foreign Contracts in Afghanistan (Military
Technical Agreement).
As prescribed in 229.402-70(l), use the following clause:
TAXES--FOREIGN CONTRACTS IN AFGHANISTAN (MILITARY TECHNICAL AGREEMENT)
(DATE)
(a) This acquisition is covered by the Military Technical
Agreement (MTA) entered into between the International Security
Assistance Forces (ISAF) and Interim Administration of Afghanistan
in April 2002 and the 2011 Letter of Interpretation issued on March
9, 2011.
(b) The MTA establishes the basic rules and exempts NATO/ISAF
and its contractors and subcontractors from paying any tax or
similar charge assessed within Afghanistan. The MTA also exempts the
acquisition, importation, exportation and use of supplies and
services in Afghanistan from all Afghan taxes, fees, duties or other
form of revenue generation.
(c) The Contractor shall exclude any Afghan taxes, customs
duties or similar charges from its contract price, except as
modified in paragraph (d) of this clause.
(d) The ISAF 2011 Letter of Interpretation modified the MTA's
tax exemption effective March 21, 2011.
(1) Local contractors are subject to tax for profits earned from
NATO/ISAF contracts or subcontract and may include that tax in its
contract price. The goods, materials, and supplies acquired and the
services provided by local contractors for the use of NATO/ISAF,
NATO member states, and non-NATO member states participating in the
ISAF remain exempt from other taxes, duties, sales or other taxes,
import fees, or fees of any kind. The Contractor may include the tax
on profits in the contract price.
(2) Afghan citizens employed by NATO/ISAF contractors and
subcontractors are subject to Afghan tax laws. To the extent
required by Afghan law, the Contractor shall withhold tax from the
wages of these employees and to remit those withholdings to the
Afghanistan Revenue Department. These withholdings are an
individual's liability, not a tax against the Contractor.
(e) The Contractor shall include the substance of this clause,
including this paragraph (e), in all subcontracts including
subcontracts for commercial items.
(End of clause)
[FR Doc. 2014-14595 Filed 6-23-14; 8:45 am]
BILLING CODE 5001-06-P
