252.225-7013 Duty-Free Entry (R-DFARS)

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As prescribed in 225.601. See the Prescription tab for the prescribing policy text.

DUTY-FREE ENTRY (AUG 2025)

(a) Definitions. As used in this clause— “Component,” means any item supplied to the Government as part of an end product or of another component. “Customs territory of the United States” means the 50 States, the District of Columbia, and Puerto Rico. “Eligible product” means—
1. (1) “Designated country end product,” as defined in the Trade Agreements (either basic or alternate) clause of this contract;
2. (2) “Free Trade Agreement country end product,” other than a “Bahraini end product,” a “Moroccan end product,” a Panamanian end product,” or a “Peruvian end product,” as defined in the Buy American—Free Trade Agreements—Balance of Payments Program (either basic or alternate II) clause of this contract, basic or its Alternate II; or
3. (3) “Free Trade Agreement country end product” other than a “Bahraini end product,” “Korean end product,” “Moroccan end product,” “Panamanian end product,” or “Peruvian end product,” as defined in of the Buy American—Free Trade Agreements— Balance of Payments Program (either alternate IV or alternate V) clause of this contract. “Qualifying country” and “qualifying country end product” have the meanings given in the Trade Agreements clause, the Buy American and Balance of Payments Program clause, or the Buy American—Free Trade Agreements—Balance of Payments Program clause of this contract, basic or alternate.
(b) Except as provided in paragraph (i) of this clause, or unless supplies were imported into the customs territory of the United States before the date of this contract or the applicable subcontract, the price of this contract shall not include any amount for duty on—
1. (1) End items that are eligible products or qualifying country end products;
2. (2) Components (including, without limitation, raw materials and intermediate assemblies) produced or made in qualifying countries, that are to be incorporated in U.S.- made end products to be delivered under this contract; or
3. (3) Other supplies for which the Contractor estimates that duty will exceed $300 per shipment into the customs territory of the United States.
(c) The Contractor shall—
1. (1) Claim duty-free entry only for supplies that the Contractor intends to deliver to the Government under this contract, either as end items or components of end items; and
2. (2) Pay duty on supplies, or any portion thereof, that are diverted to nongovernmental use, other than—
  1. (i) Scrap or salvage; or
  2. (ii) Competitive sale made, directed, or authorized by the Contracting Officer.
(d) Except as the Contractor may otherwise agree, the Government will execute duty-free entry certificates and will afford such assistance as appropriate to obtain the duty-free entry of supplies—
1. (1) For which no duty is included in the contract price in accordance with paragraph (b) of this clause; and
2. (2) For which shipping documents bear the notation specified in paragraph (e) of this clause.
(e) For foreign supplies for which the Government will issue duty-free entry certificates in accordance with this clause, shipping documents submitted to Customs shall—
1. (1) Consign the shipments to the appropriate—
  1. (i) Military department in care of the Contractor, including the Contractor’s delivery address; or
  2. (ii) Military installation; and
2. (2) Include the following information:
  1. (i) Prime contract number and, if applicable, delivery order number.
  2. (ii) Number of the subcontract for foreign supplies, if applicable.
  3. (iii) Identification of the carrier.
  4. (iv)
    1. (A) For direct shipments to a U.S. military installation, the notation: “UNITED STATES GOVERNMENT, DEPARTMENT OF DEFENSE Duty-Free Entry to be claimed pursuant to Section XXII, Chapter 98, Subchapter VIII, Item 9808.00.30 of the Harmonized Tariff Schedule of the United States. Upon arrival of shipment at the appropriate port of entry, District Director of Customs, please release shipment under 19 CFR Part 142 and notify Defense Contract Management Agency (DCMA) St. Louis, St. Louis, MO, ATTN: Duty Free Entry Team, 1222 Spruce Street, Room 9.300, St. Louis, MO 63103-2812, for execution of Customs Form 7501, 7501A, or 7506 and any required duty-free entry certificates.”
    2. (B) If the shipment will be consigned to other than a military installation, e.g., a domestic contractor’s plant, the shipping document notation shall be altered to include the name and address of the contractor, agent, or broker who will notify DCMA St. Louis, Duty Free Entry Team, for execution of the duty-free entry certificate. (If the shipment will be consigned to a contractor’s plant and no duty-free entry certificate is required due to a trade agreement, the Contractor shall claim dutyfree entry under the applicable trade agreement and shall comply with the U.S. Customs Service requirements. No notification to DCMA St. Louis, Duty Free Entry Team, is required.)
  5. (v) Gross weight in pounds (if freight is based on space tonnage, state cubic feet in addition to gross shipping weight).
  6. (vi) Estimated value in U.S. dollars.
  7. (vii) Activity address number of the contract administration office administering the prime contract, e.g., for DCMA Dayton, S3605A.
(f) Preparation of customs forms.
1. (1)
  1. (i) Except for shipments consigned to a military installation, the Contractor shall—
    1. (A) Prepare any customs forms required for the entry of foreign supplies into the customs territory of the United States in connection with this contract; and
    2. (B) Submit the completed customs forms to the District Director of Customs, with a copy to DCMA St. Louis, Duty Free Entry Team for execution of any required duty-free entry certificates.
  2. (ii) Shipments consigned directly to a military installation will be released in accordance with sections 10.101 and 10.102 of the U.S. Customs regulations.
2. (2) For shipments containing both supplies that are to be accorded duty-free entry and supplies that are not, the Contractor shall identify on the customs forms those items that are eligible for duty-free entry.
(g) The Contractor shall—
1. (1) Prepare (if the Contractor is a foreign supplier), or shall instruct the foreign supplier to prepare, a sufficient number of copies of the bill of lading (or other shipping document) so that at least two of the copies accompanying the shipment will be available for use by the District Director of Customs at the port of entry;
2. (2) Consign the shipment as specified in paragraph (e) of this clause; and
3. (3) Mark on the exterior of all packages—
  1. (i) “UNITED STATES GOVERNMENT, DEPARTMENT OF DEFENSE”; and
  2. (ii) The activity address number of the contract administration office administering the prime contract.
(h) The Contractor shall notify the Administrative Contracting Officer (ACO) in writing of any purchase of eligible products or qualifying country supplies to be accorded duty-free entry, that are to be imported into the customs territory of the United States for delivery to the Government or for incorporation in end items to be delivered to the Government. The Contractor shall furnish the notice to the ACO immediately upon award to the supplier and shall include in the notice—
1. (1) The Contractor’s name, address, and Commercial and Government Entity
2. (CAGE) code;
3. (2) Prime contract number and, if applicable, delivery order number;
4. (3) Total dollar value of the prime contract or delivery order;
5. (4) Date of the last scheduled delivery under the prime contract or delivery order;
6. (5) Foreign supplier’s name and address;
7. (6) Number of the subcontract for foreign supplies;
8. (7) Total dollar value of the subcontract for foreign supplies;
9. (8) Date of the last scheduled delivery under the subcontract for foreign supplies;
10. (9) List of items purchased;
11. (10) An agreement that the Contractor will pay duty on supplies, or any portion thereof, that are diverted to nongovernmental use other than—
(i) Scrap or salvage; or
(ii) Competitive sale made, directed, or authorized by the Contracting Officer;
(11) Country of origin; and
(12) Scheduled delivery date(s).
1. (i) This clause does not apply to purchases of eligible products or qualifying country supplies in connection with this contract if—
  1. (1) The supplies are identical in nature to supplies purchased by the Contractor or any subcontractor in connection with its commercial business; and
  2. (2) It is not economical or feasible to account for such supplies so as to ensure that the amount of the supplies for which duty-free entry is claimed does not exceed the amount purchased in connection with this contract.
(j) The Contractor shall—
1. (1) Insert the substance of this clause, including this paragraph (j), in all subcontracts for—
  1. (i) Qualifying country components; or
  2. (ii) Nonqualifying country components for which the Contractor estimates that duty will exceed $200 per unit;
2. (2) Require subcontractors to include the number of this contract on all shipping documents submitted to Customs for supplies for which duty-free entry is claimed pursuant to this clause; and
3. (3) Include in applicable subcontracts—
  1. (i) The name and address of the ACO for this contract;
  2. (ii) The name, address, and activity address number of the contract administration office specified in this contract; and
  3. (iii) The information required by paragraphs (h)(1), (2), and (3) of this clause.

Prescription: 225.601 Acquisition of supplies

As prescribed in 225.601. Scope applicability here before applying the clause.

(1) Insert the provision at 252.225-7000, Buy American—Balance of Payments Program Certificate, instead of the provision at FAR 52.225-2, Buy American Certificate, in any solicitation, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, that includes the basic or the alternate of the clause at 252.225-7001, Buy American and Balance of Payments Program.
(2)
1. (i) Insert the basic or the alternate of the clause at 252.225-7001, Buy American and Balance of Payments Program, instead of the clause at FAR 52.225-1, Buy American —Supplies, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, unless—
  1. (A) All line items will be acquired from a particular source or sources under the authority of FAR 6.103-3;
  2. (B) All line items require domestic or qualifying country end products in accordance with subpart 225.70, but note that this exception does not apply if subpart 225.70 only requires manufacture of the end product in the United States or in the United States or Canada, without a corresponding requirement for use of domestic components;
  3. (C) The acquisition is for supplies for use within the United States and an exception to the Buy American statute applies, e.g., nonavailability or public interest (see FAR 25.103 and 225.103);
  4. (D) The acquisition is for supplies for use outside the United States and an exception to the Balance of Payments Program applies (see 225.7501); or
  5. (E) One or more of the basic or the alternates of the following clauses will apply to all line items in the contract:
    1. (1) 252.225-7021, Trade Agreements.
    2. (2) 252.225-7036, Buy American —Free Trade Agreements—Balance of Payments Program.
2. (ii) Insert alternate II of the clause in lieu of the basic clause in solicitations and contracts if an alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
(3) Insert the clause at 252.225-7002, Qualifying Country Sources as Subcontractors, in solicitations and contracts that include the basic or one of the alternates of the following clauses:
1. (i) 252.225-7001, Buy American and Balance of Payments Program.
2. (ii) 252.225-7021, Trade Agreements.
3. (iii) 252.225-7036, Buy American —Free Trade Agreements—Balance of Payments Program.
(4) Insert the clause at 252.225-7013, Duty-Free Entry, instead of the clause at FAR 52.225-8. Do not use the clause for acquisitions of supplies that will not enter the customs territory of the United States.
(5) Insert the provision at 252.225-7020, Trade Agreements Certificate, instead of the provision at FAR 52.225-6, Trade Agreements Certificate, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, that include the clause at 252.225-7021, Trade Agreements. Do not include the provision if the solicitation includes alternate III of the clause at 252.225-7021. If the solicitation includes the provision at FAR 52.204-7, do not separately list the provision 252.225-7020 in the solicitation.
(6) Insert the basic or the alternate of the clause at 252.225-7021, Trade Agreements, instead of the clause at FAR 52.225-5, Trade Agreements, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, if the World Trade Organization Government Procurement Agreement applies, i.e., the acquisition is of end products listed at 225.401-70, the value of the acquisition equals or exceeds $174,000, and none of the exceptions at FAR 25.401(a) applies.
1. (i) Insert the alternate III clause in lieu of the basic clause in solicitations and contracts when an alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
2. (ii) Do not insert the basic or the alternate of the clause if purchase from foreign sources is restricted, unless the contracting officer anticipates a waiver of the restriction.
3. (iii) The acquisition of eligible and noneligible products under the same contract may result in the application of trade agreements to only some of the items acquired. In such case, indicate in the Schedule those items covered by the Trade Agreements clause.
(7) Insert the provision at 252.225-7032, Waiver of United Kingdom Levies— Evaluation of Offers, in solicitations if a U.K. firm is expected to—
1. (i) Submit an offer; or
2. (ii) Receive a subcontract exceeding $1 million.
(8) Insert the clause at 252.225-7033, Waiver of United Kingdom Levies, in solicitations and contracts if a U.K. firm is expected to—
1. (i) Submit an offer; or
2. (ii) Receive a subcontract exceeding $1 million.
(9) Insert the basic or an alternate of the provision at 252.225-7035, Buy American—Free Trade Agreements—Balance of Payments Program Certificate, instead of the provision at FAR 52.225-4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, that include the basic or an alternate of the clause at 252.225-7036, Buy American—Free Trade Agreements—Balance of Payments Program.
1. (i) Insert the basic provision in solicitations when the basic or alternate VI of the clause at 252.225-7036 is used.
2. (ii) Insert the alternate I provision when the solicitation includes alternate I or alternate VII of the clause at 252.225-7036.
3. (iii) Insert the alternate IV provision when the solicitation includes alternate IV or alternate X of the clause at 252.225-7036.
(10)
1. (i) Except as provided in paragraph (10)(ii) of this section, insert the basic or an alternate of the clause at 252.225-7036, Buy American—Free Trade Agreements— Balance of Payments Program, instead of the clause at FAR 52.225-3, Buy American— Free Trade Agreements—Israeli Trade Act, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, for the items listed at 225.401-70, when the estimated value is less than $174,000, unless an exception at FAR 25.401 or 225.401 applies.
  1. (A) Insert the basic clause in solicitations and contracts when the estimated value equals or exceeds $100,000, but is less than $174,000.
  2. (B) Insert the alternate I clause in solicitations and contracts when the estimated value is less than $102,280.
  3. (C) Insert the alternate IV clause in solicitations and contracts when the estimated value equals or exceeds $102,280 but is less than $174,000.
  4. (D) Insert the alternate VI clause in lieu of the basic clause in solicitations and contracts, when—
    1. (1) The estimated value equals or exceeds $100,000 but is less than $174,000; and
    2. (2) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
  5. (E) Insert the alternate VII clause in lieu of the alternate I clause in solicitations and contracts when—
    1. (1) The estimated value is less than $102,280; and
    2. (2) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
  6. (F) Insert the alternate X clause in lieu of the alternate IV clause in solicitations and contracts, when—
    1. (1) The estimated value equals or exceeds $102,280 but is less than $174,000; and
    2. (2) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
2. (ii) Do not insert the basic or an alternate of the clause in paragraph (10)(i) of this section if—
  1. (A) Purchase from foreign sources is restricted (see 225.401(a)(2)), unless the contracting officer anticipates a waiver of the restriction; or
  2. (B) Acquiring information technology that is a commercial product, using fiscal year 2004 or subsequent funds section 535 of Division F of the Consolidated Appropriations Act, 2004 (Pub. L. 108-199), and the same provision in subsequent appropriations acts).
3. (iii) The acquisition of eligible and noneligible products under the same contract may result in the application of a Free Trade Agreement to only some of the items acquired. In such case, indicate in the Schedule those items covered by the Buy American—Free Trade Agreements—Balance of Payments Program clause.

Version history

One version on record, first captured 2026-06-11 15:49:54, effective February 17, 2026.

Prescription: 225.601

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Clause text (pages 108–113)

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