Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Tax Relief” (DFARS Case 2018-D049), 19698-19699 [2020-06725]

Download as PDF 19698 Federal Register / Vol. 85, No. 68 / Wednesday, April 8, 2020 / Rules and Regulations (b) In accordance with section 852 of Public Law 115–232, the Contractor shall not require any further consideration from or charge fees to the small business subcontractor when making accelerated payments, as defined in paragraph (a) of this clause, to subcontractors under the clause at FAR 52.232–40, Providing Accelerated Payments to Small Business Subcontractors. (c) Subcontracts. Include the substance of this clause, including this paragraph (c), in all subcontracts with small business concerns, including those for the acquisition of commercial items. (End of clause) [FR Doc. 2020–06727 Filed 4–7–20; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 229 and 252 [Docket DARS–2019–0036] RIN 0750–AK13 Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause ‘‘Tax Relief’’ (DFARS Case 2018–D049) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to modify the text of an existing DFARS clause to include the text of another DFARS clause on the same subject, in an effort to streamline contract terms and conditions for contractors, pursuant to action taken by the Regulatory Reform Task Force. DATES: Effective April 8, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571–372–6093. SUPPLEMENTARY INFORMATION: lotter on DSKBCFDHB2PROD with RULES SUMMARY: I. Background DoD published a proposed rule in the Federal Register at 84 FR 48512 on September 13, 2019, to modify DFARS clause 252.229–7001, Tax Relief, to incorporate the information included in DFARS clause 252.229–7000, Invoices Exclusive of Taxes or Duties. Combining these clauses results in DFARS clause 252.229–7000 being removed from the DFARS. The rule implements a recommendation of the DoD Regulatory Reform Task Force established under Executive Order (E.O.) 13777, ‘‘Enforcing the Regulatory Reform Agenda.’’ VerDate Sep<11>2014 19:34 Apr 07, 2020 Jkt 250001 No public comments were received in response to the proposed rule. No changes from the proposed rule are made in the final rule. II. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available OffThe-Shelf Items This rule does not create any new provisions or clauses. The rule combines two clauses into a single clause and does not change the applicability of the affected clauses. III. Executive Orders 12866 and 13563 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 20, 1993. This rule is not a major rule as defined at 5 U.S.C. 804. IV. Executive Order 13771 This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. V. 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: DoD is amending DFARS clause 252.229–7001, Tax Relief, to incorporate the information included in DFARS clause 252.229–7000, Invoices Exclusive of Taxes or Duties. Combining these clauses will result in DFARS clause 252.229–7000 being removed from the DFARS. The objective of this rule is to streamline DoD contract terms and conditions and contractor responsibilities pertaining to foreign taxes and duties. The modification of these DFARS clauses supports a recommendation from the DoD Regulatory Reform Task Force under E.O. 13771. No public comments were received in response to the initial regulatory flexibility analysis. This rule is combines two existing clauses that address the same topic into PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 a single comprehensive clause. These clauses apply to solicitations and contracts awarded to a foreign concern for contract performance in a foreign country. This rule is not expected to impact small business entities because this rule only applies to foreign entities. The Small Business Administration (SBA) identifies a ‘‘small business’’ as a ‘‘a business entity organized for profit, with a place of business located in the United States, and which operated primarily within the United States or which makes a significant contribution to the U.S. economy through the payment of taxes or use of American products, materials, or labor’’ (13 CFR 121.102(a)). This rule only applies to foreign contractors, which do not meet the SBA definition of ‘‘small business’’ entities. This rule does not include any new reporting, recordkeeping, or other compliance requirements for small businesses. This rule does not duplicate, overlap, or conflict with any other Federal rules. There are no known significant alternative approaches to the rule that would meet the stated objectives. This rule is not expected to have a significant economic impact on small entities. VI. Paperwork Reduction Act The rule does not contain any 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. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR parts 229 and 252 are amended as follows: ■ 1. The authority citation for 48 CFR parts 229 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 229—TAXES 229.402–1 ■ [Removed] 2. Remove section 229.402–1. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 252.229–7000 [Removed and Reserved] 3. Remove and reserve section 252.229–7000. ■ E:\FR\FM\08APR1.SGM 08APR1 Federal Register / Vol. 85, No. 68 / Wednesday, April 8, 2020 / Rules and Regulations 4. Amend section 252.229–7001 by— a. In the clause heading, removing the date ‘‘(SEP 2014)’’ and adding ‘‘(APR 2020)’’ in its place; ■ b. Revising paragraph (b); ■ c. In Alternate I– ■ i. In the clause heading, removing the date of ‘‘(SEP 2014)’’ and adding ‘‘(APR 2020)’’ in its place; and ■ ii. Revising paragraph (b). The revisions read as follows: ■ ■ 252.229–7001 Tax Relief * * * * * (b) Invoices submitted in accordance with the terms and conditions of this contract shall be exclusive of all taxes or duties for which relief is available. The Contractor’s invoice shall list separately the gross price, amount of tax deducted, and net price charged. * * * * * Alternate I. * * * * * * * * (b) Invoices submitted in accordance with the terms and conditions of this contract shall be exclusive of all taxes or duties for which relief is available. The Contractor’s invoice shall list separately the gross price, amount of tax deducted, and net price charged. * * * * * V. Regulatory Flexibility Act I. Background 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 Department of Defense is amending the Defense Federal Acquisition Regulation Supplement (DFARS) to modify the DFARS clause 252.232–7000, Advance Payment Pool, to incorporate the information included in DFARS clause 252.232–7001, Disposition of Payments, and make minor changes to simplify the clause text. Combining these clauses will result in 252.232–7001 being removed from the DFARS. The objective of this rule is to streamline and consolidate the information provided to contractors regarding advance payment pool agreements. The modification of this DFARS clause supports a recommendation from the DoD Regulatory Reform Task Force. No public comments were received in response to the initial regulatory flexibility analysis. This rule does not include any new reporting, recordkeeping, or other compliance requirements for small businesses. This rule does not duplicate, overlap, or conflict with any other Federal rules. There are no known significant alternative approaches to the rule that would meet the stated objectives. DoD published a proposed rule in the Federal Register at 84 FR 58364 on October 31, 2019, to include the text of DFARS clause 252.232–7001, Disposition of Payments, in DFARS clause 252.232–7000, Advance Payment Pool, and then remove DFARS clause 252.232–7001 from the DFARS. Both clauses clarify the terms and conditions that apply when advance payment pool agreements are authorized under a contract. As such, these DFARS clauses can be combined to streamline and consolidate the information provided to contractors regarding advance payment pool agreements. No public comments were received in response to the proposed rule. No changes are made in the final rule from the proposed rule. II. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items 48 CFR Parts 232 and 252 [Docket DARS–2019–0059] III. Executive Orders 12866 and 13563 RIN 0750–AK50 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. BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause ‘‘Advance Payment Pool’’ (DFARS Case 2019–D013) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to modify the text of an existing DFARS clause to include the text of another DFARS clause on the same subject in an effort to streamline contract terms and conditions for contractors, pursuant to action taken by the Regulatory Reform Task Force. DATES: Effective April 8, 2020. FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571–372–6093. SUMMARY: lotter on DSKBCFDHB2PROD with RULES SUPPLEMENTARY INFORMATION: This rule does not create any new provisions or clauses. The rule combines two clauses on the same topic into a single clause and makes minor modifications to simplify clause text. This rule does not change the applicability of the affected clauses, which are not included in solicitations and contracts that are valued at or below the simplified acquisition threshold or for commercial items, including commercially available off-the-shelf items. [FR Doc. 2020–06725 Filed 4–7–20; 8:45 am] VerDate Sep<11>2014 19:34 Apr 07, 2020 Jkt 250001 19699 This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. Frm 00049 Fmt 4700 Sfmt 4700 The rule does not contain any 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 232 and 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR parts 232 and 252 are amended as follows: ■ 1. The authority citation for 48 CFR parts 232 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 232—CONTRACT FINANCING 232.412–70 IV. Executive Order 13771 PO 00000 VI. Paperwork Reduction Act [Amended] 2. Amend section 232.412–70 by— a. Removing paragraph (b); b. Redesignating paragraph (c) as paragraph (b); and ■ ■ ■ E:\FR\FM\08APR1.SGM 08APR1

Agencies

[Federal Register Volume 85, Number 68 (Wednesday, April 8, 2020)]
[Rules and Regulations]
[Pages 19698-19699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06725]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 229 and 252

[Docket DARS-2019-0036]
RIN 0750-AK13


Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause ``Tax Relief'' (DFARS Case 2018-D049)

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to modify the text of an 
existing DFARS clause to include the text of another DFARS clause on 
the same subject, in an effort to streamline contract terms and 
conditions for contractors, pursuant to action taken by the Regulatory 
Reform Task Force.

DATES: Effective April 8, 2020.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 84 FR 
48512 on September 13, 2019, to modify DFARS clause 252.229-7001, Tax 
Relief, to incorporate the information included in DFARS clause 
252.229-7000, Invoices Exclusive of Taxes or Duties. Combining these 
clauses results in DFARS clause 252.229-7000 being removed from the 
DFARS. The rule implements a recommendation of the DoD Regulatory 
Reform Task Force established under Executive Order (E.O.) 13777, 
``Enforcing the Regulatory Reform Agenda.''
    No public comments were received in response to the proposed rule. 
No changes from the proposed rule are 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 does not create any new provisions or clauses. The rule 
combines two clauses into a single clause and does not change the 
applicability of the affected clauses.

III. Executive Orders 12866 and 13563

    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 20, 1993. This rule is not a major rule as defined at 5 
U.S.C. 804.

IV. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

V. 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:
    DoD is amending DFARS clause 252.229-7001, Tax Relief, to 
incorporate the information included in DFARS clause 252.229-7000, 
Invoices Exclusive of Taxes or Duties. Combining these clauses will 
result in DFARS clause 252.229-7000 being removed from the DFARS. The 
objective of this rule is to streamline DoD contract terms and 
conditions and contractor responsibilities pertaining to foreign taxes 
and duties. The modification of these DFARS clauses supports a 
recommendation from the DoD Regulatory Reform Task Force under E.O. 
13771.
    No public comments were received in response to the initial 
regulatory flexibility analysis.
    This rule is combines two existing clauses that address the same 
topic into a single comprehensive clause. These clauses apply to 
solicitations and contracts awarded to a foreign concern for contract 
performance in a foreign country.
    This rule is not expected to impact small business entities because 
this rule only applies to foreign entities. The Small Business 
Administration (SBA) identifies a ``small business'' as a ``a business 
entity organized for profit, with a place of business located in the 
United States, and which operated primarily within the United States or 
which makes a significant contribution to the U.S. economy through the 
payment of taxes or use of American products, materials, or labor'' (13 
CFR 121.102(a)). This rule only applies to foreign contractors, which 
do not meet the SBA definition of ``small business'' entities.
    This rule does not include any new reporting, recordkeeping, or 
other compliance requirements for small businesses. This rule does not 
duplicate, overlap, or conflict with any other Federal rules. There are 
no known significant alternative approaches to the rule that would meet 
the stated objectives. This rule is not expected to have a significant 
economic impact on small entities.

VI. Paperwork Reduction Act

    The rule does not contain any 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.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 229 and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 229 and 252 continues to 
read as follows:

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

PART 229--TAXES


229.402-1  [Removed]

0
2. Remove section 229.402-1.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.229-7000  [Removed and Reserved]

0
3. Remove and reserve section 252.229-7000.

[[Page 19699]]


0
4. Amend section 252.229-7001 by--
0
a. In the clause heading, removing the date ``(SEP 2014)'' and adding 
``(APR 2020)'' in its place;
0
b. Revising paragraph (b);
0
c. In Alternate I-
0
i. In the clause heading, removing the date of ``(SEP 2014)'' and 
adding ``(APR 2020)'' in its place; and
0
ii. Revising paragraph (b).
    The revisions read as follows:


252.229-7001  Tax Relief

* * * * *
    (b) Invoices submitted in accordance with the terms and conditions 
of this contract shall be exclusive of all taxes or duties for which 
relief is available. The Contractor's invoice shall list separately the 
gross price, amount of tax deducted, and net price charged.
* * * * *
    Alternate I. * * *
* * * * *
    (b) Invoices submitted in accordance with the terms and conditions 
of this contract shall be exclusive of all taxes or duties for which 
relief is available. The Contractor's invoice shall list separately the 
gross price, amount of tax deducted, and net price charged.
* * * * *
[FR Doc. 2020-06725 Filed 4-7-20; 8:45 am]
 BILLING CODE 5001-06-P