RFolutionaries

Tariffic News for Government Customers and Contractors

Written by David A Moschella | Apr 21, 2025 6:39:50 PM

Looking for a tariff-freebie?

 

With the new tariff sheriff in town, there's a scramble to figure out and mitigate yet another tax.  Here's some good news for our government and USG contractor customers. 

US Customs and Border Protection is tasked with collecting tariffs and duties on products as they are imported; if goods are destined for use under a US Government contract, there are ways to import duty-free and tariff free, or recover the additional cost of a post-facto tax expense. What one government hand takes the other can eliminate or restore!

Although a tariff exemption for the specific imported goods types (HTS codes) that Cyntony offers is not available, if you will include such goods as cost on an existing government contract there are ways to recover the additional cost of a new tariff.  By assuring your USG contract has (or can have) particular FAR or DFAR clause(s) and you notify and work with the contracting officer (KO) as required, you will likely be able to eliminate the tariff impact.   See more about these clauses below.   
 

 

FAR 52.229-3:

FAR clause 52.229-3 Federal, State, and Local Taxes, specifically sections (c) and (g), allows contractors to adjust prices for taxes imposed after a contract award. Similarly, FAR 52.216-2, 52.216-3 and 52.216-4 related to Economic Price Adjustment-Labor and Material may offer another way recover additional material costs, with the concurrence of the KO.  Learn more in this useful law-firm article.

 

DFARS 252.225-7013:

DFARS clause 252.225-7013 - Duty-Free Entry provides contracting officers the discretion to award contractors with duty-free import certificates for items.  FAR 52.225-8 Duty-Free Entry offers similar provisions with a higher bar of qualification.   To get a thorough read on this, check out a great article from a prominent law firm, and the specific instructions in the DFARS clauses linked above.  

 

Check with your expert

We present this information in the spirit of helpfulness and collaboration, it is certainly not legal advice.   Please consult your export and import compliance manager as the expert on your situation and contracts.  

 

We're here to help

Cyntony will facilitate and coordinate with you to make sure tariff related documentation and logistics details are handled adroitly.  We invite you to contact us with any questions or concerns, as we fulfill our pledge to provide customer-attuned collaboration to assure successful outcomes for you and your customers.   

 
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