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)

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, 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