252.225-7033 Waiver of United Kingdom Levies (R-DFARS)

This text is not in eCFR or DITA. It is extracted from the Revolutionary FAR Overhaul deviation guide for FAR Part 25. The parsed text is a convenience layer; the Source PDF tab is authoritative. Always verify against the official deviation PDF.

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

WAIVER OF UNITED KINGDOM LEVIES (APR 2003)

(a) The U.S. Government may attempt to obtain a waiver of any commercial exploitation levies included in the price of this contract, pursuant to the U.S./United Kingdom (U.K.) reciprocal waiver agreement of July 1987. If the U.K. grants a waiver of levies included in the price of this contract, the U.S. Government reserves the right to reduce the contract price by the amount of the levy waived plus associated indirect costs and profit or fee.
(b) If the Contractor contemplates award of a subcontract exceeding $1 million to a U.K. firm, the Contractor shall provide the following information to the Contracting Officer before award of the subcontract:
1. (1) Name of the U.K. firm.
2. (2) Prime contract number.
3. (3) Description of item to which the levy applies.
4. (4) Quantity being acquired.
5. (5) Amount of levy plus any associated indirect costs and profit or fee.
(c) In the event of difficulty in identifying levies included in a price from a prospective subcontractor, the Contractor may seek advice through the Director of Procurement, United Kingdom Defence Procurement Office, British Embassy, 3100 Massachusetts Avenue NW, Washington, DC 20006.
(d) The Contractor shall insert the substance of this clause, including this paragraph (d), in any subcontract for supplies where a lower-tier subcontract exceeding $1 million with a U.K. firm is anticipated.

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 15:50:06, effective February 17, 2026.

Prescription: 225.601

Prescribing text cropped from the same deviation PDF.

Clause text (pages 136–137)

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