252.225-7033 — Waiver of United Kingdom levies.
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.225-7033 — Waiver of United Kingdom levies.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.225-7033 Waiver of United Kingdom levies. As prescribed in 225.1101(8), use the following clause: 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) Name of the U.K. firm. (2) Prime contract number. (3) Description of item to which the levy applies. (4) Quantity being acquired. (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. (End of clause) [68 FR 15639, Mar. 31, 2003, as amended at 73 FR 53155, Sept. 15, 2008; 78 FR 59859, Sept. 30, 2013]
Compliance Checklist
- firm, the Contractor shall provide the following information to the Contracting Officer before award of the subcontract: (1) Name of the U.K.
- (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.
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.
Frequently Asked Questions
DFARS 252.225-7033 (Waiver of United Kingdom levies.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.225-7033 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.