Attachment_1_OCR_001_Customs _Duties _Taxes _and_SOFA_Requirements.docx

Attachment 1 OCR 001 Customs, Duties, Taxes, SOFA Requirements, and Insurance

CONCILIATION

Except as otherwise provided in this contract, any disagreement arising under this contract which is not resolved by the parties to this contract may be submitted to the United States - Japan Joint Committee for Conciliation in accordance with Paragraph 10, Article XVIII, of the Status of Forces Agreement under Article VI of this Treaty of Mutual Cooperation and Security between Japan and the United States of America. Requests by the contractor for conciliation shall be made in accordance with the following procedures:

a. In the event the contractor desires conciliation after the decision of the contracting officer has been served upon him, he will first file his appeal from such findings of facts with the appropriate authority in accordance with the clause of this contract entitled “DISPUTES”, and within the time limits described therein before filing request for conciliation with the Joint Committee and then request the appellate authority under the clause of this contract entitled “DISPUTES”, to suspend its action on his appeal until such time as the Joint Committee has had an opportunity for effecting conciliation.

b. The request for conciliation will be submitted by the contractor through the nearest Defense Facilities Administration Bureau, to the Contract Conciliation Panel of the Joint Committee. Upon the filing of the request with the Joint Committee, the contractor will immediately notify the contracting officer in writing that the request for conciliation has been filed.

c. In the event the disagreement submitted to the Joint Committee under subparagraph (b) above has been resolved through conciliation, it will be the responsibility of the contractor to notify the appellate authority designated in the clause of this contract entitled “DISPUTES”, of the settlement of the dispute and to withdraw his appeal.

d. In the event the contractor who has submitted a request for conciliation to the Joint Committee under subparagraph (b) above desires; notwithstanding tendency of his request for conciliation, that action by the appropriate authority under the clause of this contract entitled “DISPUTES” be resumed on his appeal, it is his responsibility to so request the said authority in writing. The Joint Committee shall be immediately informed by the contractor of his action taken hereunder.

e. No request for conciliation can be submitted to the Joint Committee in the case of a dispute upon which the final decision of the appropriate authority under the clause of this contract entitled “DISPUTES” has been rendered. Pending the hearing of Conciliation Panel the contractor shall proceed diligently with the performance of the contract in accordance with the contracting officer’s decision. The provisions of this clause shall not prejudice any right which the parties to the contract may have to file in a civil suit.

BASE DEFENSE ACT/WORKMAN'S COMPENSATION/WORK ON AN

OVERSEAS INSTALLATION

This contract includes FAR 52.228-3, Workers’ Compensation Insurance (Defense Base Act) (Apr 1984), and FAR 52.228-4, Worker’s Compensation and War-Hazard Insurance Overseas (Apr 1984). FAR 52.228-3 applies only if the contractor has United States’ citizen or national employees, regardless of whether they have SOFA status or a status of residence in Japan. FAR 52.228-4 applies if the contractor has non-United States’ citizen or national employees. One or both clauses may apply to the contractor.

EXEMPTION FROM JAPANESE CUSTOMS DUTIES AND TAXES PURSUANT TO STATUS OF FORCES AGREEMENT

(a) Paragraph 2, Article XI of the Status of Forces Agreement between Japan and the United States, authorizes the United States entry into Japan free from Japanese customs duties and all other charges on materials, supplies, and equipment imported for the official use of the United States Armed Forces or for the exclusive use of such forces or ultimately to be incorporated into articles or facilities used by such forces.

(b) Paragraph 3, Article XII of said Status of Forces Agreement, authorizes the United States exemption from certain Japanese taxes for materials, supplies, equipment and services procured for official purpose in Japan by the United States Armed Forces or by authorized agencies of the United States Armed Forces. Currently, these taxes are: (1) Gasoline tax and local road tax on gasoline; (2) Diesel oil tax; (3) Liquefied petroleum tax, and (4) Consumption tax.

(c) If you are the successful offeror, the contracting officer or his authorized representative will issue customs or tax exemption certificate in accordance with procedures agreed upon between the Government of Japan and the United States of America. Tax exemption certificates for either the end of each month or upon termination of the contract. These can be applied against future purchases of motor fuel. They will be issued only to you as the prime contractor, so, if you employ a subcontractor or supplier who uses motor fuel, you must purchase the motor fuel to secure the exemption.

(d) List below the customs duties or taxes which have been excluded from your proposal as required by the taxes clause. Contractor must claim all customs and tax exemptions to which the US Government is entitled.

(1) Customs Duties __________________ _________________

(2) Taxes __________________ _________________

(b) Diesel oil tax __________________ _________________

(c) Liquefied petroleum tax __________________ _________________

(d) Consumption tax __________________ _________________

REQUIRED INSURANCE (In addition to that required by Japanese Law)

(a) The Contractor shall procure and maintain during the entire period of his performance under this contract the following minimum insurance on each vehicle used by the Contractor at the work site

a. Type: Automobile Property Damage Insurance Amount: ¥3,000,000 or dollar equivalent Bodily Injury Insurance Amount: ¥30,000,000 or dollar equivalent

(b) All vehicles must be properly inspected/insured in accordance with Japanese Compulsory Insurance(JCI) requirements

(c) Prior to the commencement of work hereunder, the Contractor shall furnish to the Contracting Officer, a certificate or written statement of the above required insurance. The policies evidencing required insurance shall contain an endorsement to the effect that cancellation or any material change in the policies adversely affecting the interests of the U.S. Government in such insurance shall not be effective for such period as may be prescribed by the laws of the state in which this contract is to be performed and in no event less than thirty (30) days after written notice thereof to the Contracting Officer.

(d) The Contractor agrees to insert the substance of this section, including this paragraph in all subcontracts hereunder.