80 FR 81470 - Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2016-D003)
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System Federal Register Volume 80, Issue 250 (December 30, 2015)
Defense Acquisition Regulations System
Federal Register Volume 80, Issue 250 (December 30, 2015)
| Page Range | 81470-81471 | |
| FR Document | 2015-32875 |
[Federal Register Volume 80, Number 250 (Wednesday, December 30, 2015)] [Rules and Regulations] [Pages 81470-81471] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32875] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 225 and 252 [Docket DARS-2015-0066] RIN 0750-AI79 Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2016-D003) 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 incorporate increased thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative. DATES: Effective: January 1, 2016. FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571- 372-6106. SUPPLEMENTARY INFORMATION: I. Background Every two years, the trade agreements thresholds are escalated according to a predetermined formula set forth in the agreements. The United States Trade Representative has specified the following new thresholds in the Federal Register (80 FR 77694, December 15, 2015): ------------------------------------------------------------------------ Construction Supply contract contract (equal Trade agreement (equal to or to or exceeding) exceeding) ------------------------------------------------------------------------ WTO GPA............................. 191,000 7,358,000 FTAs: Australia FTA................... 77,533 7,358,000 Bahrain FTA..................... 191,000 10,079,365 CAFTA-DR (Costa Rica, Dominican 77,533 7,358,000 Republic, El Salvador, Guatemala, Honduras, and Nicaragua)..................... Chile FTA....................... 77,533 7,358,000 Colombia FTA.................... 77,533 7,358,000 Korea FTA....................... 100,000 7,358,000 Morocco FTA..................... 191,000 7,358,000 NAFTA --Canada.................... 25,000 10,079,365 --Mexico.................... 77,533 10,079,365 Panama FTA...................... 191,000 7,358,000 Peru FTA........................ 191,000 7,358,000 Singapore FTA................... 77,533 7,358,000 ------------------------------------------------------------------------ II. Discussion and Analysis This final rule implements the new thresholds in DFARS part 225, Foreign Contracting, for sections that include trade agreements thresholds (i.e., 225.1101, 225.7017-3, 225.7017-4, and 225.7503). Additionally, the rule updates clauses 252.225-7017, Photovoltaic Devices, and 252.225-7018, Photovoltaic Devices--Certificate, with conforming changes. A minor technical amendment corrects cross references at 225.1101(10)(i) and paragraphs (b)(1)(i) and (ii) of the clause at 252.225-7018. III. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the Federal Acquisition Regulation (FAR) is 41. U.S.C. entitled ``Publication of Proposed Regulations.'' Paragraph (a)(1) of the statute requires that a procurement policy, regulation, procedure or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency [[Page 81471]] issuing the policy, regulation, procedure or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because it only adjusts the thresholds according to predetermined formulae to adjust for changes in economic conditions, thus maintaining the status quo, without significant effect beyond the internal operating procedures of the Government. IV. 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. V. Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant FAR revision within the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require publication for public comment. VI. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply, because the final rule affects the prescriptions for use of the certification and information collection requirements in the provision at DFARS 252.225-7035 and the certification and information collection requirements in the provision at DFARS 252.225-7018 (both currently approved under OMB Control #0704-0229), Defense Federal Acquisition Regulation Supplement Part 225, Foreign Acquisition and Related Clauses. However, there is no impact on the estimated burden hours, because the threshold changes are in line with inflation and maintain the status quo. 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 48 CFR parts 225 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and CFR chapter 1. PART 225--FOREIGN CONTRACTING 225.1101 [Amended] 0 2. Amend section 225.1101-- 0 a. In paragraph (6) introductory text, by removing ``$204,000'' and adding ``$191,000'' in its place; 0 b. In paragraph (10)(i) introductory text, by removing ``$204,000'' and adding ``$191,000'' in its place, and removing ``at 25.401 applies'' and adding ``at FAR 25.401 or 225.401 applies'' in its place; 0 c. In paragraphs (10)(i)(A), by removing ``$204,000'' and adding ``$191,000'' in its place; 0 d. In paragraph (10)(i)(B), by removing ``$79,507'' and adding ``$77,533'' in its place; 0 e. In paragraph (10)(i)(C), by removing ``$204,000'' and adding ``$191,000'' in its place; and 0 f. In paragraphs (10)(i)(D) through (F), by removing ``$79,507'' wherever it appears and adding ``$77,533)'' in its place. 225.7017-3 [Amended] 0 3. Amend section 225.7017-3 in paragraph (b) by removing ``$204,000'' and adding ``$191,000'' in its place. 225.7017-4 [Amended] 0 4. Amend section 225.7017-4 in paragraphs (a)(1) and (b)(1) by removing ``$204,000'' and adding ``$191,000'' in both places. 225.7503 [Amended] 0 5. Amend section 225.7503-- 0 a. In paragraphs (a) and (b) introductory text, by removing ``$7,864,000'' and adding ``$7,358,000'' in both places; 0 b. In paragraph (b)(1), by removing ``$10,335,931'' and adding ``$10,079,365'' in its place; 0 c. In paragraph (b)(2), by removing ``$7,864,000'' and adding ``$7,358,000'' in its place, and removing ``$10,335,931'' and adding ``$10,079,365'' in its place; 0 d. In paragraph (b)(3) by removing, ``$10,335,931'' and adding ``$10,079,365'' in its place; and 0 e. In paragraph (b)(4), by removing ``$7,864,000'' and adding ``$7,358,000'' in its place, and removing ``$10,335,931'' and adding ``$10,079,365'' in its place. PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 252.225-7017 [Amended] 0 6. Amend section 252.225-7017-- 0 a. By removing clause date ``(NOV 2015)'' and adding ``(JAN 2016)'' in its place; 0 b. In paragraphs (c)(2) and (3), by removing ``$79,507'' and adding ``$77,533'' in its place; and 0 c. In paragraphs (c)(4) and (5), by removing ``$204,000'' and adding ``$191,000'' in its place. 252.225-7018 [Amended] 0 7. Amend section 252.225-7018-- 0 a. By removing clause date ``(NOV 2015)'' and adding ``(JAN 2016)'' in its place; 0 b. In paragraph (b)(1) introductory text, by removing ``$204,000'' and adding ``$191,000'' in its place; 0 c. In paragraph (b)(1)(i), by removing ``DFARS 225.217-4(b)'' and adding ``DFARS 225.7017-4(b)'' in its place; 0 d. In paragraph (b)(1)(ii), by removing ``DFARS 225.217-4(a)'' and adding ``DFARS 225.7017-4(a)'' in its place; 0 e. In paragraph (b)(2), by removing ``$204,000'' and adding ``$191,000'' in its place; 0 f. In paragraphs (d)(3) and (4) introductory text, by removing ``$79,507'' and adding ``$77,533'' in both places; and 0 g. In paragraphs (d)(5) and (6) introductory text, by removing ``$204,000'' and adding ``$191,000'' in both places. [FR Doc. 2015-32875 Filed 12-29-15; 8:45 am] BILLING CODE 5001-06-P
![81470 Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Rules and Regulations
of these employees and remit those payments charges from the contract price, other than ACTION: Final rule.
to the appropriate Afghanistan taxing those that are Afghan legal entities or
authority. These withholdings are an residents.
individual’s liability, not a tax against the (d) Afghan citizens employed by NATO
SUMMARY: DoD is issuing a final rule
Contractor. contractors and subcontractors are subject to amending the Defense Federal
(e) The Contractor shall include the Afghan tax laws. To the extent required by Acquisition Regulation Supplement
substance of this clause, including this Afghan law, the Contractor shall withhold (DFARS) to incorporate increased
paragraph (e), in all subcontracts, including tax from the wages of these employees and thresholds for application of the World
subcontracts for commercial items. remit those withholdings to the Afghanistan Trade Organization Government
(End of clause) Revenue Department. These withholdings are
an individual’s liability, not a tax against the Procurement Agreement and the Free
252.229–7015 Taxes—Foreign Contracts in Contractor. Trade Agreements, as determined by the
Afghanistan (North Atlantic Treaty (e) The Contractor shall include the United States Trade Representative.
Organization Status of Forces Agreement). substance of this clause, including this
paragraph (e), in all subcontracts including DATES: Effective: January 1, 2016.
As prescribed in 229.402–70(l), use subcontracts for commercial items.
the following clause: FOR FURTHER INFORMATION CONTACT: Ms.
(End of clause) Amy G. Williams, telephone 571–372–
Taxes—Foreign Contracts in Afghanistan [FR Doc. 2015–32870 Filed 12–29–15; 8:45 am]
(North Atlantic Treaty Organization Status
6106.
BILLING CODE 5001–06–P
of Forces Agreement) (DEC 2015)
SUPPLEMENTARY INFORMATION:
(a) This acquisition is covered by the
Status of Forces Agreement (SOFA) entered DEPARTMENT OF DEFENSE I. Background
into between the North Atlantic Treaty
Organization (NATO) and the Islamic Every two years, the trade agreements
Defense Acquisition Regulations
Republic of Afghanistan issued on September System thresholds are escalated according to a
30, 2014, and entered into force on January predetermined formula set forth in the
1, 2015. agreements. The United States Trade
(b) The SOFA exempts NATO Forces and 48 CFR Parts 225 and 252
Representative has specified the
its contractors and subcontractors (other than [Docket DARS–2015–0066]
those that are Afghan legal entities or following new thresholds in the Federal
residents) from paying any tax or similar RIN 0750–AI79 Register (80 FR 77694, December 15,
charge assessed within Afghanistan. The 2015):
SOFA also exempts the acquisition, Defense Federal Acquisition
importation, exportation, reexportation, Regulation Supplement: Trade
transportation and use of supplies and Agreements Thresholds (DFARS Case
services in Afghanistan from all Afghan 2016–D003)
taxes, customs, duties, fees, or similar
charges. AGENCY: Defense Acquisition
(c) The Contractor shall exclude any Regulations System, Department of
Afghan taxes, customs, duties, fees or similar Defense (DoD).
Construction
Supply contract contract
Trade agreement (equal to or (equal to or
exceeding) exceeding)
WTO GPA ........................................................................................................................................................ 191,000 7,358,000
FTAs:
Australia FTA ............................................................................................................................................ 77,533 7,358,000
Bahrain FTA ............................................................................................................................................. 191,000 10,079,365
CAFTA–DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) ... 77,533 7,358,000
Chile FTA .................................................................................................................................................. 77,533 7,358,000
Colombia FTA ........................................................................................................................................... 77,533 7,358,000
Korea FTA ................................................................................................................................................ 100,000 7,358,000
Morocco FTA ............................................................................................................................................ 191,000 7,358,000
NAFTA
—Canada .......................................................................................................................................... 25,000 10,079,365
—Mexico ............................................................................................................................................ 77,533 10,079,365
Panama FTA ............................................................................................................................................ 191,000 7,358,000
Peru FTA .................................................................................................................................................. 191,000 7,358,000
Singapore FTA ......................................................................................................................................... 77,533 7,358,000
II. Discussion and Analysis with conforming changes. A minor Regulation (FAR) is 41. U.S.C. entitled
technical amendment corrects cross ‘‘Publication of Proposed Regulations.’’
This final rule implements the new references at 225.1101(10)(i) and Paragraph (a)(1) of the statute requires
thresholds in DFARS part 225, Foreign paragraphs (b)(1)(i) and (ii) of the clause that a procurement policy, regulation,
mstockstill on DSK4VPTVN1PROD with RULES
Contracting, for sections that include at 252.225–7018. procedure or form (including an
trade agreements thresholds (i.e., amendment or modification thereof)
225.1101, 225.7017–3, 225.7017–4, and III. Publication of This Final Rule for
Public Comment Is Not Required by must be published for public comment
225.7503). Additionally, the rule if it relates to the expenditure of
Statute
updates clauses 252.225–7017, appropriated funds, and has either a
Photovoltaic Devices, and 252.225– The statute that applies to the significant effect beyond the internal
7018, Photovoltaic Devices—Certificate, publication of the Federal Acquisition operating procedures of the agency
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![Federal Register / Vol. 80, No. 250 / Wednesday, December 30, 2015 / Rules and Regulations 81471
issuing the policy, regulation, procedure List of Subjects in 48 CFR Parts 225 and ■ d. In paragraph (b)(3) by removing,
or form, or has a significant cost or 252 ‘‘$10,335,931’’ and adding
administrative impact on contractors or Government procurement. ‘‘$10,079,365’’ in its place; and
offerors. This final rule is not required ■ e. In paragraph (b)(4), by removing
to be published for public comment, Jennifer L. Hawes,
‘‘$7,864,000’’ and adding ‘‘$7,358,000’’
because it only adjusts the thresholds Editor, Defense Acquisition Regulations
in its place, and removing
according to predetermined formulae to System.
‘‘$10,335,931’’ and adding
adjust for changes in economic Therefore, 48 CFR parts 225 and 252 ‘‘$10,079,365’’ in its place.
conditions, thus maintaining the status are amended as follows:
quo, without significant effect beyond ■ 1. The authority citation for 48 CFR PART 252—SOLICITATION
the internal operating procedures of the parts 225 and 252 continues to read as PROVISIONS AND CONTRACT
Government. follows: CLAUSES
IV. Executive Orders 12866 and 13563 Authority: 41 U.S.C. 1303 and CFR chapter 252.225–7017 [Amended]
1.
Executive Orders (E.O.s) 12866 and ■ 6. Amend section 252.225–7017—
13563 direct agencies to assess all costs PART 225—FOREIGN CONTRACTING
■ a. By removing clause date ‘‘(NOV
and benefits of available regulatory 225.1101 [Amended] 2015)’’ and adding ‘‘(JAN 2016)’’ in its
alternatives and, if regulation is
■ 2. Amend section 225.1101— place;
necessary, to select regulatory
approaches that maximize net benefits ■ a. In paragraph (6) introductory text, ■ b. In paragraphs (c)(2) and (3), by
(including potential economic, by removing ‘‘$204,000’’ and adding removing ‘‘$79,507’’ and adding
environmental, public health and safety ‘‘$191,000’’ in its place; ‘‘$77,533’’ in its place; and
effects, distributive impacts, and ■ b. In paragraph (10)(i) introductory ■ c. In paragraphs (c)(4) and (5), by
equity). E.O. 13563 emphasizes the text, by removing ‘‘$204,000’’ and removing ‘‘$204,000’’ and adding
importance of quantifying both costs adding ‘‘$191,000’’ in its place, and ‘‘$191,000’’ in its place.
and benefits, of reducing costs, of removing ‘‘at 25.401 applies’’ and
harmonizing rules, and of promoting adding ‘‘at FAR 25.401 or 225.401 252.225–7018 [Amended]
applies’’ in its place;
flexibility. This is not a significant ■ 7. Amend section 252.225–7018—
■ c. In paragraphs (10)(i)(A), by
regulatory action and, therefore, was not
removing ‘‘$204,000’’ and adding ■ a. By removing clause date ‘‘(NOV
subject to review under section 6(b) of
‘‘$191,000’’ in its place; 2015)’’ and adding ‘‘(JAN 2016)’’ in its
E.O. 12866, Regulatory Planning and
■ d. In paragraph (10)(i)(B), by removing place;
Review, dated September 30, 1993. This ‘‘$79,507’’ and adding ‘‘$77,533’’ in its
rule is not a major rule under 5 U.S.C. ■ b. In paragraph (b)(1) introductory
place; text, by removing ‘‘$204,000’’ and
804. ■ e. In paragraph (10)(i)(C), by removing
adding ‘‘$191,000’’ in its place;
V. Regulatory Flexibility Act ‘‘$204,000’’ and adding ‘‘$191,000’’ in
its place; and ■ c. In paragraph (b)(1)(i), by removing
The Regulatory Flexibility Act does ■ f. In paragraphs (10)(i)(D) through (F), ‘‘DFARS 225.217–4(b)’’ and adding
not apply to this rule because this final by removing ‘‘$79,507’’ wherever it ‘‘DFARS 225.7017–4(b)’’ in its place;
rule does not constitute a significant appears and adding ‘‘$77,533)’’ in its ■ d. In paragraph (b)(1)(ii), by removing
FAR revision within the meaning of place. ‘‘DFARS 225.217–4(a)’’ and adding
FAR 1.501–1, and 41 U.S.C. 1707 does ‘‘DFARS 225.7017–4(a)’’ in its place;
225.7017–3 [Amended]
not require publication for public ■ e. In paragraph (b)(2), by removing
comment. ■ 3. Amend section 225.7017–3 in
‘‘$204,000’’ and adding ‘‘$191,000’’ in
paragraph (b) by removing ‘‘$204,000’’
VI. Paperwork Reduction Act its place;
and adding ‘‘$191,000’’ in its place.
■ f. In paragraphs (d)(3) and (4)
The Paperwork Reduction Act (44 225.7017–4 [Amended] introductory text, by removing
U.S.C. chapter 35) does apply, because
■ 4. Amend section 225.7017–4 in ‘‘$79,507’’ and adding ‘‘$77,533’’ in
the final rule affects the prescriptions
paragraphs (a)(1) and (b)(1) by removing both places; and
for use of the certification and
‘‘$204,000’’ and adding ‘‘$191,000’’ in ■ g. In paragraphs (d)(5) and (6)
information collection requirements in
both places. introductory text, by removing
the provision at DFARS 252.225–7035
and the certification and information 225.7503 [Amended] ‘‘$204,000’’ and adding ‘‘$191,000’’ in
collection requirements in the provision both places.
■ 5. Amend section 225.7503—
at DFARS 252.225–7018 (both currently ■ a. In paragraphs (a) and (b)
[FR Doc. 2015–32875 Filed 12–29–15; 8:45 am]
approved under OMB Control #0704– introductory text, by removing BILLING CODE 5001–06–P
0229), Defense Federal Acquisition ‘‘$7,864,000’’ and adding ‘‘$7,358,000’’
Regulation Supplement Part 225, in both places;
Foreign Acquisition and Related ■ b. In paragraph (b)(1), by removing
mstockstill on DSK4VPTVN1PROD with RULES
Clauses. However, there is no impact on ‘‘$10,335,931’’ and adding
the estimated burden hours, because the ‘‘$10,079,365’’ in its place;
threshold changes are in line with ■ c. In paragraph (b)(2), by removing
inflation and maintain the status quo. ‘‘$7,864,000’’ and adding ‘‘$7,358,000’’
in its place, and removing
‘‘$10,335,931’’ and adding
‘‘$10,079,365’’ in its place;
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Document Created: 2015-12-30 03:16:10
Document Modified: 2015-12-30 03:16:10
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective: January 1, 2016. | |
| Contact | Ms. Amy G. Williams, telephone 571- 372-6106. | |
| FR Citation | 80 FR 81470 | |
| RIN Number | 0750-AI79 | |
| CFR Citation | 48
CFR
225 48 CFR 252 |
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