81 FR 28732 - Defense Federal Acquisition Regulation Supplement: Duty-Free Entry Threshold (DFARS 2015-D036)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 90 (May 10, 2016)

Page Range		28732-28732
FR Document		2016-10826

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.

Federal Register, Volume 81 Issue 90 (Tuesday, May 10, 2016)

[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Rules and Regulations]
[Page 28732]
From the Federal Register Online  [www.thefederalregister.org]
[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.

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

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

28732 Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Rules and Regulations

DEPARTMENT OF DEFENSE and benefits of available regulatory DFARS 252.225–7013, currently
alternatives and, if regulation is approved under OMB Control Number
Defense Acquisition Regulations necessary, to select regulatory 0704–0229, entitled ‘‘Defense Federal
System approaches that maximize net benefits Acquisition Regulation Supplement Part
(including potential economic, 225, Foreign Acquisition, and related
48 CFR Parts 225 and 252 environmental, public health and safety clauses,’’ in accordance with the
[Docket DARS–2015–0052] effects, distributive impacts, and Paperwork Reduction Act (44.U.S.C.
equity). E.O. 13563 emphasizes the chapter 35). The impact, however, is
RIN 0750–AI76 importance of quantifying both costs negligible, because this rule only makes
and benefits, of reducing costs, of an upward adjustment of the duty-free
Defense Federal Acquisition
harmonizing rules, and of promoting entry threshold from the $200 to $300,
Regulation Supplement: Duty-Free
flexibility. This is not a significant consistent with the rate of inflation.
Entry Threshold (DFARS 2015–D036)
regulatory action and, therefore, was not
List of Subjects in 48 CFR Parts 225 and
AGENCY: Defense Acquisition subject to review under section 6(b) of
252
Regulations System, Department of E.O. 12866, Regulatory Planning and
Defense (DoD). Review, dated September 30, 1993. This Government procurement.
ACTION: Final rule. rule is not a major rule under 5 U.S.C. Jennifer L. Hawes,
804. Editor, Defense Acquisition Regulations
SUMMARY: DoD is issuing a final rule
amending the Defense Federal IV. Regulatory Flexibility Act System.
Acquisition Regulation Supplement A final regulatory flexibility analysis Therefore, 48 CFR parts 225 and 252
(DFARS) to update the threshold for (FRFA) has been prepared consistent are amended as follows:
duty-free entry on foreign supplies that with the Regulatory Flexibility Act, 5 ■ 1. The authority citation for parts 225
are not from qualifying countries. U.S.C. 601, et seq. The FRFA is and 252 continues to read as follows:
DATES: Effective May 10, 2016. summarized as follows: Authority: 41 U.S.C. 1303 and 48 CFR
FOR FURTHER INFORMATION CONTACT: Mr. The objective of this rule is to amend chapter 1.
Christopher Stiller, telephone 571–372– Defense Federal Acquisition
6176. Supplement (DFARS) subpart 225.9 and PART 225—FOREIGN ACQUISITION
SUPPLEMENTARY INFORMATION: the clause at 252.225–7013, Duty-Free
Entry, to update the threshold for duty- 225.901 [Amended]
I. Background free entry on foreign supplies that are ■ 2. In section 225.901, amend
DoD published a proposed rule in the not from the qualifying countries. paragraph (3) by removing ‘‘$200’’ and
Federal Register at 80 FR 72672 on No comments were received from the adding ‘‘$300’’ in its place.
November 20, 2015, to revise DFARS public regarding the initial regulatory
225.901(3), and the clause 252.225– analysis. PART 252—SOLICITATION
7013, Duty-Free Entry, by updating the DoD does not expect this rule to have PROVISIONS AND CONTRACT
$200 threshold that was established on a significant economic impact on a CLAUSES
April 30, 2003, to $300. There were no substantial number of small entities
252.225–7013 [Amended]
public comments submitted in response because this rule only makes an upward
to the proposed rule. There are no inflationary adjustment of an ■ 3. Amend section 252.225–7013 by—
changes from the proposed rule made in administrative threshold, from $200 to ■ a. Removing the clause date ‘‘(NOV
the final rule. $300, at DFARS 225.901(3) and the 2014)’’ and adding ‘‘(MAY 2016)’’ in its
clause at DFARS 252.225–7013. The place; and
II. Applicability to Contracts at or information requested in DFARS clause ■ b. Amending paragraph (b)(3) by
Below the Simplified Acquisition 252.225–7013 supplements the removing ‘‘$200’’ and adding ‘‘$300’’ in
Threshold and for Commercial Items, information requested in the Federal its place.
Including Commercially Available Off- Acquisition Regulation clause at [FR Doc. 2016–10826 Filed 5–9–16; 8:45 am]
the-Shelf Items 52.225–10 and is required only if the BILLING CODE 5001–06–P
This rule merely updates the contractor is requesting duty-free entry.
threshold for duty-free entry on foreign Current data indicates, on average,
supplies that are not qualifying country approximately 31,500 duty-free entry DEPARTMENT OF DEFENSE
suppliers or eligible products under a certificates on foreign supplies for DoD
trade agreement. The clause at DFARS per year. DoD does not expect a change Defense Acquisition Regulations
252.225–7013, Duty-Free Entry, which in the estimated duty-free entry System
is prescribed for use in lieu of Federal processes because the change is
Acquisition Regulation clause 52.225–8, consistent with the rate of inflation; 48 CFR Part 239
may be used in acquisitions at or below therefore, small entities will not be [Docket DARS–2015–0046]
the simplified acquisition threshold materially affected by this rule.
when the savings from waiving the duty This rule does not impose any RIN 0750–AI72
is anticipated to be more than the additional reporting, recordkeeping, and
administrative cost of waiving the duty. other compliance requirements. Defense Federal Acquisition
The clause is not prescribed for use in There are no known significant Regulation Supplement: Long-Haul
contracts for commercial items, alternatives to the rule. The impact of Telecommunications (DFARS Case
ehiers on DSK5VPTVN1PROD with RULES

including commercially available off- this rule on small business is not 2015–D023)
the-shelf items. expected to be significant. AGENCY: Defense Acquisition
III. Executive Orders 12866 and 13563 V. Paperwork Reduction Act Regulations System, Department of
Defense (DoD).
Executive Orders (E.O.s) 12866 and The rule affects the information
ACTION: Final rule.
13563 direct agencies to assess all costs collection requirements in the clause at

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Document Created: 2016-05-10 05:18:33
Document Modified: 2016-05-10 05:18:33

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 May 10, 2016.
Contact		Mr. Christopher Stiller, telephone 571-372-6176.
FR Citation		81 FR 28732
RIN Number		0750-AI76
CFR Citation		48 CFR 225 48 CFR 252

81 FR 28732 - Defense Federal Acquisition Regulation Supplement: Duty-Free Entry Threshold (DFARS 2015-D036)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 90 (May 10, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System