80_FR_72897 80 FR 72673 - Defense Federal Acquisition Regulation Supplement: Duty-Free Entry Threshold (DFARS Case 2015-D036)

80 FR 72673 - Defense Federal Acquisition Regulation Supplement: Duty-Free Entry Threshold (DFARS Case 2015-D036)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 224 (November 20, 2015)

Page Range72673-72674
FR Document2015-29557

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to update the threshold for duty-free entry on foreign supplies that are not qualifying country supplies or eligible foreign supplies.

Federal Register, Volume 80 Issue 224 (Friday, November 20, 2015)
[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Proposed Rules]
[Pages 72673-72674]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-29557]


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

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 Case 2015-D036)

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 update the threshold for duty-free 
entry on foreign supplies that are not qualifying country supplies or 
eligible foreign supplies.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 19, 2016, to be considered 
in the formation of the final rule.

ADDRESSES: Submit comments in response to DFARS Case 2015-D036 by any 
of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2015-D036'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2015-D036.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2015-D036'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2015-D036 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Kyoung Lee, OUSD(AT&L) DPAP/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://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. Kyoung Lee, telephone: 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to revise DFARS 225.9, Customs and Duties, and the 
clause at DFARS 252.225-7013, Duty-Free Entry, by increasing the duty-
free entry threshold on nonqualifying country supplies and ineligible 
foreign supplies from $200 to $300. The current threshold was 
established on April 30, 2003 based on the estimated cost to process a 
duty-free entry certificate at the time. This proposed rule makes an 
upward adjustment of the $200 threshold to $300 based on the U.S. 
Consumer Price Index (CPI) located at http://www.bls.gov/CPI/.

II. 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

[[Page 72674]]

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.

III. Regulatory Flexibility Act

    DoD does not expect this 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 
only makes an upward adjustment of an administrative threshold. 
However, an initial regulatory flexibility analysis has been prepared 
consistent with 5 U.S.C. 603 and is summarized as follows:
    The objective of this rule is to revise DFARS 225.9, Customs and 
Duties, and the clause at DFARS 252.225-7013, Duty-Free Entry, by 
increasing the duty-free entry threshold on nonqualifying country 
supplies and ineligible foreign supplies from $200 to $300. The current 
threshold, established in 2003, was based on the estimated cost to 
process a duty-free entry certificate at the time. This rule proposes 
to make the upward adjustment to reflect annual inflation rates (based 
on the U.S. Consumer Price Index) that have occurred in the last 12 
years.
    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. As such, 
small entities will not be materially affected by this rule.
    This rule does not impose any additional reporting, recordkeeping, 
and other compliance requirements. This rule does not duplicate, 
overlap, or conflict with any other Federal rules. There are no known 
significant alternatives to the rule. The impact of this rule on small 
business is not expected to be significant.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities. 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 2015-
D036), in correspondence.

VI. 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, titled Foreign Acquisition, 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.

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 proposed to be 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 ``(DATE)'' in its 
place; and
0
b. Amending paragraph (b)(3) by removing ``$200'' and adding ``$300'' 
in its place.

[FR Doc. 2015-29557 Filed 11-19-15; 8:45 am]
BILLING CODE 5001-06-P



                                                                          Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Proposed Rules                                          72673

                                                    been performed and is summarized as                     PART 225—FOREIGN ACQUISITION                          ADDRESSES:   Submit comments in
                                                    follows:                                                                                                      response to DFARS Case 2015–D036 by
                                                       The objective of this proposed rule is               ■ 1. The authority citation for part 225              any of the following methods:
                                                    to clarify the prescription for use of                  continues to read as follows:                            Æ Regulations.gov: http://
                                                    DFARS clause 252.225–7001, Buy                            Authority: 41 U.S.C. 1303 and 48 CFR                www.regulations.gov. Submit comments
                                                    American and Balance of Payments                        chapter 1.                                            via the Federal eRulemaking portal by
                                                    Program, to state that the clause does                                                                        entering ‘‘DFARS Case 2015–D036’’
                                                                                                            225.1100    [Amended]                                 under the heading ‘‘Enter keyword or
                                                    not apply when (1) the acquisition is for
                                                    supplies for use within the United                      ■ 2. Remove ‘‘Subparts’’ in two places                ID’’ and selecting ‘‘Search.’’ Select the
                                                    States and an exception to the Buy                      and add ‘‘subparts’’ in their place.                  link ‘‘Submit a Comment’’ that
                                                    American statute applies, or (2) the                    ■ 3. Amend section 225.1101 by—                       corresponds with ‘‘DFARS Case 2015–
                                                    acquisition is for supplies for use                     ■ a. Revising paragraph (2)(i)(C);                    D036.’’ Follow the instructions provided
                                                    outside the United States and an                        ■ b. Redesignating paragraphs (2)(i)(D)               at the ‘‘Submit a Comment’’ screen.
                                                    exception to the Balance of Payments                    and (E) as paragraphs (2)(i)(E) and (F);              Please include your name, company
                                                    Program applies.                                        and                                                   name (if any), and ‘‘DFARS Case 2015–
                                                                                                            ■ c. Adding a new paragraph (2)(i)(D).                D036’’ on your attached document.
                                                       DoD does not expect this proposed
                                                                                                              The revision and addition read as                      Æ Email: osd.dfars@mail.mil. Include
                                                    rule to have a significant impact on
                                                                                                            follows:                                              DFARS Case 2015–D036 in the subject
                                                    small entities within the meaning of the
                                                    Regulatory Flexibility Act, 5 U.S.C. 601,                                                                     line of the message.
                                                                                                            225.1101    Acquisition of supplies.
                                                    et seq., because it merely clarifies how                                                                         Æ Fax: 571–372–6094.
                                                                                                            *      *     *    *    *                                 Æ Mail: Defense Acquisition
                                                    the clause prescription addresses                          (2)(i) * * *
                                                    applicability when an exception to the                                                                        Regulations System, Attn: Ms. Kyoung
                                                                                                               (C) The acquisition is for supplies for            Lee, OUSD(AT&L) DPAP/DARS, Room
                                                    Buy American statute or Balance of                      use within the United States and an
                                                    Payments Program applies.                                                                                     3B941, 3060 Defense Pentagon,
                                                                                                            exception to the Buy American statute                 Washington, DC 20301–3060.
                                                       This proposed rule does not add any                  applies, e.g., nonavailability or public                 Comments received generally will be
                                                    new reporting, recordkeeping, and other                 interest (see FAR 25.103 and 225.103);                posted without change to http://
                                                    compliance requirements. The rule does                  or                                                    www.regulations.gov, including any
                                                    not duplicate, overlap, or conflict with                   (D) The acquisition is for supplies for            personal information provided. To
                                                    any other Federal rules. There are no                   use outside the United States and an                  confirm receipt of your comment(s),
                                                    known significant alternatives to the                   exception to the Balance of Payments                  please check www.regulations.gov,
                                                    rule.                                                   Program applies (see 225.7501);                       approximately two to three days after
                                                       DoD invites comments from small                      *      *     *    *    *                              submission to verify posting (except
                                                    business concerns and other interested                  [FR Doc. 2015–29558 Filed 11–19–15; 8:45 am]          allow 30 days for posting of comments
                                                    parties on the expected impact of this                  BILLING CODE 5001–06–P                                submitted by mail).
                                                    rule on small entities.                                                                                       FOR FURTHER INFORMATION CONTACT: Ms.
                                                       DoD will also consider comments                                                                            Kyoung Lee, telephone: 571–372–6093.
                                                    from small entities concerning the                      DEPARTMENT OF DEFENSE
                                                                                                                                                                  SUPPLEMENTARY INFORMATION:
                                                    existing regulations in subparts affected
                                                    by this rule in accordance with 5 U.S.C.                Defense Acquisition Regulations                       I. Background
                                                    610. Interested parties must submit such                System
                                                                                                                                                                    DoD is proposing to revise DFARS
                                                    comments separately and should cite 5                                                                         225.9, Customs and Duties, and the
                                                    U.S.C. 610 (DFARS Case 2015–D037), in                   48 CFR Parts 225 and 252
                                                                                                                                                                  clause at DFARS 252.225–7013, Duty-
                                                    correspondence.                                         [Docket DARS–2015–0052]                               Free Entry, by increasing the duty-free
                                                    V. Paperwork Reduction Act                              RIN 0750–AI76                                         entry threshold on nonqualifying
                                                                                                                                                                  country supplies and ineligible foreign
                                                      The rule contains information                         Defense Federal Acquisition                           supplies from $200 to $300. The current
                                                    collection requirements that require the                Regulation Supplement: Duty-Free                      threshold was established on April 30,
                                                    approval of the Office of Management                    Entry Threshold (DFARS Case 2015–                     2003 based on the estimated cost to
                                                    and Budget under the Paperwork                          D036)                                                 process a duty-free entry certificate at
                                                    Reduction Act (44 U.S.C. chapter 35);                                                                         the time. This proposed rule makes an
                                                    however, these changes to the DFARS                     AGENCY:  Defense Acquisition                          upward adjustment of the $200
                                                    do not impose additional information                    Regulations System, Department of                     threshold to $300 based on the U.S.
                                                    collection requirements to the                          Defense (DoD).                                        Consumer Price Index (CPI) located at
                                                    paperwork burden previously approved                    ACTION: Proposed rule.                                http://www.bls.gov/CPI/.
                                                    under OMB Control Number 0704–0229,
                                                    entitled Defense Federal Acquisition                    SUMMARY:  DoD is proposing to amend                   II. Executive Orders 12866 and 13563
                                                    Regulation Supplement Part 225,                         the Defense Federal Acquisition                          Executive Orders (E.O.s) 12866 and
                                                    Foreign Acquisition and related clauses.                Regulation Supplement (DFARS) to                      13563 direct agencies to assess all costs
                                                                                                            update the threshold for duty-free entry              and benefits of available regulatory
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    List of Subjects in 48 CFR Part 225
                                                                                                            on foreign supplies that are not                      alternatives and, if regulation is
                                                       Government procurement.                              qualifying country supplies or eligible               necessary, to select regulatory
                                                                                                            foreign supplies.                                     approaches that maximize net benefits
                                                    Jennifer L. Hawes,
                                                                                                            DATES: Comments on the proposed rule                  (including potential economic,
                                                    Editor, Defense Acquisition Regulations
                                                    System.
                                                                                                            should be submitted in writing to the                 environmental, public health and safety
                                                                                                            address shown below on or before                      effects, distributive impacts, and
                                                      Therefore, 48 CFR part 225 is                         January 19, 2016, to be considered in                 equity). E.O. 13563 emphasizes the
                                                    proposed to be amended as follows:                      the formation of the final rule.                      importance of quantifying both costs


                                               VerDate Sep<11>2014   17:58 Nov 19, 2015   Jkt 238001   PO 00000   Frm 00066   Fmt 4702   Sfmt 4702   E:\FR\FM\20NOP1.SGM   20NOP1


                                                    72674                 Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Proposed Rules

                                                    and benefits, of reducing costs, of                     DFARS 252.225–7013, currently                         DATES:   Comments on the proposed rule
                                                    harmonizing rules, and of promoting                     approved under OMB Control Number                     should be submitted in writing to the
                                                    flexibility. This is not a significant                  0704–0229, titled Foreign Acquisition,                address shown below on or before
                                                    regulatory action and, therefore, was not               in accordance with the Paperwork                      January 19, 2016, to be considered in
                                                    subject to review under section 6(b) of                 Reduction Act (44.U.S.C. chapter 35).                 the formation of a final rule.
                                                    E.O. 12866, Regulatory Planning and                     The impact, however, is negligible,                   ADDRESSES: Submit comments
                                                    Review, dated September 30, 1993. This                  because this rule only makes an upward                identified by DFARS Case 2015–D023,
                                                    rule is not a major rule under 5 U.S.C.                 adjustment of the duty-free entry                     using any of the following methods:
                                                    804.                                                    threshold from the $200 to $300.                         Æ Regulations.gov: http://
                                                    III. Regulatory Flexibility Act                         List of Subjects in 48 CFR Parts 225 and              www.regulations.gov. Submit comments
                                                                                                            252                                                   via the Federal eRulemaking portal by
                                                       DoD does not expect this rule to have                                                                      entering ‘‘DFARS Case 2015–D023’’
                                                    a significant economic impact on a                          Government procurement.                           under the heading ‘‘Enter keyword or
                                                    substantial number of small entities                                                                          ID’’ and selecting ‘‘Search.’’ Select the
                                                    within the meaning of the Regulatory                    Jennifer L. Hawes,
                                                                                                            Editor, Defense Acquisition Regulations               link ‘‘Submit a Comment’’ that
                                                    Flexibility Act, 5 U.S.C. 601, et seq.,                                                                       corresponds with ‘‘DFARS Case 2015–
                                                    because this rule only makes an upward                  System.
                                                                                                                                                                  D023.’’ Follow the instructions provided
                                                    adjustment of an administrative                           Therefore, 48 CFR parts 225 and 252                 at the ‘‘Submit a Comment’’ screen.
                                                    threshold. However, an initial                          are proposed to be amended as follows:                Please include your name, company
                                                    regulatory flexibility analysis has been                ■ 1. The authority citation for parts 225             name (if any), and ‘‘DARS Case 2015–
                                                    prepared consistent with 5 U.S.C. 603                   and 252 continues to read as follows:                 D023 on your attached document.
                                                    and is summarized as follows:                                                                                    Æ Email: osd.dfars@mail.mil. Include
                                                                                                              Authority: 41 U.S.C. 1303 and 48 CFR
                                                       The objective of this rule is to revise              chapter 1.                                            DFARS Case 2015–D023 in the subject
                                                    DFARS 225.9, Customs and Duties, and
                                                                                                                                                                  line of the message.
                                                    the clause at DFARS 252.225–7013,                       PART 225—FOREIGN ACQUISITION                             Æ Fax: 571–372–6094.
                                                    Duty-Free Entry, by increasing the duty-
                                                                                                            225.901    [Amended]                                     Æ Mail: Defense Acquisition
                                                    free entry threshold on nonqualifying
                                                                                                                                                                  Regulations System, Attn: Ms. Kyoung
                                                    country supplies and ineligible foreign                 ■ 2. In section 225.901, amend
                                                                                                                                                                  Lee, OUSD(AT&L) DPAP/DARS, Room
                                                    supplies from $200 to $300. The current                 paragraph (3) by removing ‘‘$200’’ and
                                                                                                                                                                  3B941, 3060 Defense Pentagon,
                                                    threshold, established in 2003, was                     adding ‘‘$300’’ in its place.
                                                                                                                                                                  Washington, DC 20301–3060.
                                                    based on the estimated cost to process                                                                           Comments received generally will be
                                                    a duty-free entry certificate at the time.              PART 252—SOLICITATION
                                                                                                            PROVISIONS AND CONTRACT                               posted without change to http://
                                                    This rule proposes to make the upward                                                                         www.regulations.gov, including any
                                                    adjustment to reflect annual inflation                  CLAUSES
                                                                                                                                                                  personal information provided. To
                                                    rates (based on the U.S. Consumer Price                 252.225–7013       [Amended]                          confirm receipt of your comment(s),
                                                    Index) that have occurred in the last 12                                                                      please check www.regulations.gov,
                                                    years.                                                  ■  3. Amend section 252.225–7013 by—
                                                                                                            ■  a. Removing the clause date ‘‘(NOV                 approximately two to three days after
                                                       Current data indicates, on average,
                                                                                                            2014)’’ and adding ‘‘(DATE)’’ in its                  submission to verify posting (except
                                                    approximately 31,500 duty-free entry
                                                                                                            place; and                                            allow 30 days for posting of comments
                                                    certificates on foreign supplies for DoD
                                                                                                            ■ b. Amending paragraph (b)(3) by                     submitted by mail).
                                                    per year. DoD does not expect a change
                                                    in the estimated duty-free entry                        removing ‘‘$200’’ and adding ‘‘$300’’ in              FOR FURTHER INFORMATION CONTACT: Ms.
                                                    processes. As such, small entities will                 its place.                                            Kyoung Lee, telephone 571–372–6093.
                                                    not be materially affected by this rule.                [FR Doc. 2015–29557 Filed 11–19–15; 8:45 am]          SUPPLEMENTARY INFORMATION:
                                                       This rule does not impose any                        BILLING CODE 5001–06–P
                                                                                                                                                                  I. Background
                                                    additional reporting, recordkeeping, and
                                                    other compliance requirements. This                                                                              DoD is proposing to amend DFARS
                                                    rule does not duplicate, overlap, or                    DEPARTMENT OF DEFENSE                                 239.7401 to add a definition of ‘‘long-
                                                    conflict with any other Federal rules.                                                                        haul telecommunications.’’ The rule
                                                    There are no known significant                          Defense Acquisition Regulations                       also amends DFARS 239.7402 to
                                                    alternatives to the rule. The impact of                 System                                                provide a pointer to internal
                                                    this rule on small business is not                                                                            Government procedures in DFARS
                                                    expected to be significant.                             48 CFR Part 239                                       Procedures, Guidance, and Information
                                                       DoD invites comments from small                      [Docket DARS–2015–0046]                               (PGI) to identify the Defense
                                                    business concerns and other interested                                                                        Information Systems Agency as the sole
                                                                                                            RIN 0750–AI72                                         procurement activity for long-haul
                                                    parties on the expected impact of this
                                                    rule on small entities. DoD will also                   Defense Federal Acquisition                           telecommunications requirements as
                                                    consider comments from small entities                   Regulation Supplement; Long-Haul                      addressed in DoD Directive 5105.19,
                                                    concerning the existing regulations in                  Telecommunications (DFARS Case                        Defense Information Systems Agency.
                                                    subparts affected by this rule in                       2015–D023)                                            II. Executive Orders 12866 and 13563
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    accordance with 5 U.S.C. 610. Interested
                                                    parties must submit such comments                       AGENCY:    Department of Defense (DoD).                  Executive Orders (E.O.s) 12866 and
                                                    separately and should cite 5 U.S.C. 610                 ACTION:   Proposed rule.                              13563 direct agencies to assess all costs
                                                    (DFARS Case 2015–D036), in                                                                                    and benefits of available regulatory
                                                    correspondence.                                         SUMMARY:   DoD is proposing to amend                  alternatives and, if regulation is
                                                                                                            the Defense Federal Acquisition                       necessary, to select regulatory
                                                    VI. Paperwork Reduction Act                             Regulation Supplement (DFARS) to add                  approaches that maximize net benefits
                                                      The rule affects the information                      a definition of ‘‘long-haul                           (including potential economic,
                                                    collection requirements in the clause at                telecommunications.’’                                 environmental, public health and safety


                                               VerDate Sep<11>2014   17:58 Nov 19, 2015   Jkt 238001   PO 00000   Frm 00067   Fmt 4702   Sfmt 4702   E:\FR\FM\20NOP1.SGM   20NOP1



Document Created: 2015-12-14 13:59:07
Document Modified: 2015-12-14 13:59:07
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments on the proposed rule should be submitted in writing to
ContactMs. Kyoung Lee, telephone: 571-372- 6093.
FR Citation80 FR 72673 
RIN Number0750-AI76
CFR Citation48 CFR 225
48 CFR 252

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