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Subpart 225.9 - CUSTOMS AND DUTIES
225.900 RESERVED
225.900-70 Definition.
“Component,” as used in this subpart, means any item supplied to the Government as part of an end product or of another component.
225.901 Policy.
Unless the supplies are entitled to duty-free treatment under a special category in the Harmonized Tariff Schedule of the United States (e.g., the Caribbean Basin Economic Recovery Act or a Free Trade Agreement), or unless the supplies already have entered into the customs territory of the United States and the contractor already has paid the duty, DoD will issue duty-free entry certificates for—
(1) Qualifying country supplies (end products and components);
(2) Eligible products (end products but not components) under contracts covered by the World Trade Organization Government Procurement Agreement or a Free Trade Agreement; and
(3) Other foreign supplies for which the contractor estimates that duty will exceed $300 per shipment into the customs territory of the United States.
225.902 Procedures.
Follow the entry and release procedures at PGI 225.902 .
225.903 Exempted supplies.
(b)(i) For an explanation of the term “supplies,” see PGI 225.903 (b)(i).
(ii) The duty-free certificate shall be printed, stamped, or typed on the face of, or attached to, Customs Form 7501. A duly designated officer or civilian official of the appropriate department or agency shall execute the certificate in the format provided at PGI 225.903 (b)(ii).
