This text is not in eCFR or DITA. It is extracted from the Revolutionary FAR Overhaul deviation guide for FAR Part 29. The parsed text is a convenience layer; the Source PDF tab is authoritative. Always verify against the official deviation PDF.
As prescribed in 229.402-70(k). See the Prescription tab for the prescribing policy text.
FULL EXEMPTION FROM TWO-PERCENT EXCISE TAX ON CERTAIN FOREIGN PROCUREMENTS (OCT 2022)
- (a) As the Contractor represented in its offer, any item, including any item delivered under subcontract; any service; or any combination thereof delivered under this contract is fully exempt from the 2-percent excise tax withholding imposed by 26 U.S.C. 5000C and implemented by Federal Acquisition Regulation (FAR) 52.229-12, Tax on Certain Foreign Procurements.
- (b) If the full exemption no longer applies due to a change in circumstances during the performance of the contract, causing the Contractor to become subject to the withholding for the 2-percent excise tax as imposed by 26 U.S.C. 5000C, then the Contractor shall immediately comply with the notification and billing requirements of FAR clause 52.229-12.
Prescription: 229.402-70 Additional provisions and clauses
As prescribed in 229.402-70(k). Scope applicability here before applying the clause.
- (k) Insert the clause at 252.229-7014, Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements, in contracts that include the clause at FAR 52.22912, Tax on Certain Foreign Procurements, when the contractor has—
- (1) Represented that it is a foreign person in response to the provision at FAR 52.229-11, Tax on Certain Foreign Procurements—Notice and Representation; and
- (2) Indicated that it is fully exempt from the tax for reasons cited on their IRS Form W-14, Certificate of Foreign Contracting Party Receiving Federal Procurement Payments.
Version history
One version on record, first captured 2026-06-11 15:51:55, effective February 1, 2026.
Prescription: 229.402-70
Prescribing text cropped from the same deviation PDF.
Clause text (page 14)
Rendered from the deviation PDF. Open the full PDF.
