252.225-7013 — Duty-Free Entry.

DFARS 252.225-7013 — Duty-Free Entry.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

252.225-7013 Duty-Free Entry. As prescribed in 225.1101(4), use the following clause: 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) Designated country end product, as defined in the Trade Agreements (either basic or alternate) clause of this contract; (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; or (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 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) End items that are eligible products or qualifying country end products; (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) Other supplies for

• (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) End items that are eligible products or qualifying country end products; (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) 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) 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) 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.
• (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) Consign the shipments to the appropriate— (i) Military department in care of the Contractor, including the Contractor's delivery address; or (ii) Military installation; and (2) Include the following information: (i) Prime contract number and, if applicable, delivery order number.
• Louis, MO 63103-2812, for execution of Customs Form 7501, 7501A, or 7506 and any required duty-free entry certificates.” (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.
• (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 duty-free entry under the applicable trade agreement and shall comply with the U.S.
• Louis, Duty Free Entry Team, is required.) (v) Gross weight in pounds (if freight is based on space tonnage, state cubic feet in addition to gross shipping weight).
• (1)(i) Except for shipments consigned to a military installation, the Contractor shall— (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 (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) 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) 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) Consign the shipment as specified in paragraph (e) of this clause; and (3) Mark on the exterior of all packages— (i) “UNITED STATES GOVERNMENT, DEPARTMENT OF DEFENSE”; and (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) The Contractor's name, address, and Commercial and Government Entity (CAGE) code; (2) Prime contract number and, if applicable, delivery order number; (3) Total dollar value of the prime contract or delivery order; (4) Date of the last scheduled delivery under the prime contract or delivery order; (5) Foreign supplier's name and address; (6) Number of the subcontract for foreign supplies; (7) Total dollar value of the subcontract for foreign supplies; (8) Date of the last scheduled delivery under the subcontract for foreign supplies; (9) List of items purchased; (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).
• (j) The Contractor shall— (1) Insert the substance of this clause, including this paragraph (j), in all subcontracts for— (i) Qualifying country components; or (ii) Nonqualifying country components for which the Contractor estimates that duty will exceed $200 per unit; (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) Include in applicable subcontracts— (i) The name and address of the ACO for this contract; (ii) The name, address, and activity address number of the contract administration office specified in this contract; and (iii) The information required by paragraphs (h)(1), (2), and (3) of this clause.