Defense Federal Acquisition Regulation Supplement: Duty-Free Entry Threshold (DFARS 2015-D036), 28732 [2016-10826]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Rules and Regulations]
[Page 28732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10826]



[[Page 28732]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2015-0052]
RIN 0750-AI76


Defense Federal Acquisition Regulation Supplement: Duty-Free 
Entry Threshold (DFARS 2015-D036)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update the threshold for 
duty-free entry on foreign supplies that are not from qualifying 
countries.

DATES: Effective May 10, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stiller, telephone 
571-372-6176.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 80 FR 
72672 on November 20, 2015, to revise DFARS 225.901(3), and the clause 
252.225-7013, Duty-Free Entry, by updating the $200 threshold that was 
established on April 30, 2003, to $300. There were no public comments 
submitted in response to the proposed rule. There are no changes from 
the proposed rule made in the final rule.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule merely updates the threshold for duty-free entry on 
foreign supplies that are not qualifying country suppliers or eligible 
products under a trade agreement. The clause at DFARS 252.225-7013, 
Duty-Free Entry, which is prescribed for use in lieu of Federal 
Acquisition Regulation clause 52.225-8, may be used in acquisitions at 
or below the simplified acquisition threshold when the savings from 
waiving the duty is anticipated to be more than the administrative cost 
of waiving the duty. The clause is not prescribed for use in contracts 
for commercial items, including commercially available off-the-shelf 
items.

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

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    The objective of this rule is to amend Defense Federal Acquisition 
Supplement (DFARS) subpart 225.9 and the clause at 252.225-7013, Duty-
Free Entry, to update the threshold for duty-free entry on foreign 
supplies that are not from the qualifying countries.
    No comments were received from the public regarding the initial 
regulatory analysis.
    DoD does not expect this rule to have a significant economic impact 
on a substantial number of small entities because this rule only makes 
an upward inflationary adjustment of an administrative threshold, from 
$200 to $300, at DFARS 225.901(3) and the clause at DFARS 252.225-7013. 
The information requested in DFARS clause 252.225-7013 supplements the 
information requested in the Federal Acquisition Regulation clause at 
52.225-10 and is required only if the contractor is requesting duty-
free entry.
    Current data indicates, on average, approximately 31,500 duty-free 
entry certificates on foreign supplies for DoD per year. DoD does not 
expect a change in the estimated duty-free entry processes because the 
change is consistent with the rate of inflation; therefore, small 
entities will not be materially affected by this rule.
    This rule does not impose any additional reporting, recordkeeping, 
and other compliance requirements.
    There are no known significant alternatives to the rule. The impact 
of this rule on small business is not expected to be significant.

V. Paperwork Reduction Act

    The rule affects the information collection requirements in the 
clause at DFARS 252.225-7013, currently approved under OMB Control 
Number 0704-0229, entitled ``Defense Federal Acquisition Regulation 
Supplement Part 225, Foreign Acquisition, and related clauses,'' in 
accordance with the Paperwork Reduction Act (44.U.S.C. chapter 35). The 
impact, however, is negligible, because this rule only makes an upward 
adjustment of the duty-free entry threshold from the $200 to $300, 
consistent with the rate of inflation.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 225 and 252 are amended as follows:

0
1. The authority citation for parts 225 and 252 continues to read as 
follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION


225.901  [Amended]

0
2. In section 225.901, amend paragraph (3) by removing ``$200'' and 
adding ``$300'' in its place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.225-7013  [Amended]

0
3. Amend section 252.225-7013 by--
0
a. Removing the clause date ``(NOV 2014)'' and adding ``(MAY 2016)'' in 
its place; and
0
b. Amending paragraph (b)(3) by removing ``$200'' and adding ``$300'' 
in its place.

[FR Doc. 2016-10826 Filed 5-9-16; 8:45 am]
BILLING CODE 5001-06-P