48 CFR § 252.229-7014 - 252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.
---
identifier: "/us/cfr/t48/s252.229-7014"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 252.229-7014 - 252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "252.229-7014"
section_name: "252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "H"
subchapter_name: "CLAUSES AND FORMS"
part_number: "252"
part_name: "SOLICITATION PROVISIONS AND CONTRACT CLAUSES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36479, July 31, 1991, unless otherwise noted."
cfr_part: "252"
---
# 252.229-7014 252.229-7014 Full Exemption from Two-Percent Excise Tax on Certain Foreign Procurements.
As prescribed in 229.402-70(k), use the following clause:
****Full Exemption From Two-Percent Excise Tax on Certain Foreign Procurements (OCT 2022)
(a) As the Contractor represented in its offer, any item, including any item delivered under subcontract; any service; or any combination thereof delivered under this contract is fully exempt from the 2-percent excise tax withholding imposed by 26 U.S.C. 5000C and implemented by Federal Acquisition Regulation (FAR) 52.229-12, Tax on Certain Foreign Procurements.
(b) If the full exemption no longer applies due to a change in circumstances during the performance of the contract, causing the Contractor to become subject to the withholding for the 2-percent excise tax as imposed by 26 U.S.C. 5000C, then the Contractor shall immediately comply with the notification and billing requirements of FAR clause 52.229-12.
****(End of clause)
[87 FR 65517, Oct. 28, 2022]