DFARS 229.170-2 Policy
Subsection Defense Federal Acquisition Regulation Supplement
Facts
- Citation
- DFARS 229.170-2
- Type
- Subsection
- Supplements
- FAR Subpart 29.1 General
- Last amended
- 70 FR 57191 Effective Sep 30, 2005
- Text as of
- DFARS Change May 7, 2026
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) By law, bilateral agreements with foreign governments must include a provision that commodities acquired under contracts funded by U.S. assistance programs shall be exempt from taxation by the foreign government. If taxes or customs duties nevertheless are imposed, the foreign government must reimburse the amount of such taxes to the U.S. Government (Section 579 of Division E of the Consolidated Appropriations Act, 2003 (Pub. L. 108-7), as amended by Section 506 of Division D of the Consolidated Appropriations Act, 2004 (Pub. L. 108-199), and similar sections in subsequent acts).
(b) This foreign tax exemption—
(1) Applies to a contract or subcontract for commodities when—
(i) The funds are appropriated by the annual foreign operations appropriations act; and
(ii) The value of the contract or subcontract is $500 or more;
(2) Does not apply to the acquisition of services;
(3) Generally is implemented through letters of offer and acceptance, other country-to-country agreements, or Federal interagency agreements; and
(4) Requires reporting of noncompliance for effective implementation.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Defense Federal Acquisition Regulation Supplement; Prohibition of Foreign Taxation on U.S. Assistance Programs |
Quick answers
What is DFARS 229.170-2?
DFARS 229.170-2 is a subsection of the Defense Federal Acquisition Regulation Supplement, titled "Policy".
When was DFARS 229.170-2 last changed?
The most recent final rule on record is "Defense Federal Acquisition Regulation Supplement; Prohibition of Foreign Taxation on U.S. Assistance Programs" (70 FR 57191), published Sep 30, 2005 and effective Sep 30, 2005.
Are changes to DFARS 229.170-2 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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