[Federal Register Volume 69, Number 147 (Monday, August 2, 2004)]
[Proposed Rules]
[Pages 46129-46130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17471]


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DEPARTMENT OF DEFENSE

48 CFR Part 229

[DFARS Case 2003-D031]


Defense Federal Acquisition Regulation Supplement; Tax Procedures 
for Overseas Contracts

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update text pertaining to tax relief 
for acquisitions conducted in certain foreign countries. This proposed 
rule is a result of a transformation initiative undertaken by DoD to 
dramatically change the purpose and content of the DFARS.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 1, 2004, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2003-D031, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Defense Acquisition Regulations Web Site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for 
submitting comments.
     E-mail: [email protected]. Include DFARS Case 2003-D031 in the 
subject line of the message.
     Fax: Primary: (703) 602-7887; Alternate: (703) 602-0350.
     Mail: Defense Acquisition Regulations Council, Attn: Mr. 
Euclides Barrera, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Mr. Euclides Barrera, (703) 602-0296.

SUPPLEMENTARY INFORMATION:

A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 
http://www.acq.osd.mil/dp/dars/transf.htm.
    This proposed rule is a result of the DFARS Transformation 
initiative. The proposed changes revise DFARS Subpart 229.70 to remove 
procedures

[[Page 46130]]

that DoD contracting officers use in obtaining tax relief and duty-free 
import privileges for acquisitions conducted in Spain and the United 
Kingdom. This text will be relocated to the new DFARS companion 
resource, Procedures, Guidance, and Information (PGI). A proposed rule 
describing the purpose and structure of PGI was published at 69 FR 8145 
on February 23, 2004. The draft PGI text related to this proposed rule 
is available at http://www.acq.osd.mil/dpap/dfars/changes.htm.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule to have a significant economic impact 
on a substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule 
relocates DoD procedural information related to tax relief, with no 
change to policy. Therefore, DoD has not performed an initial 
regulatory flexibility analysis. DoD invites comments from small 
businesses and other interested parties. DoD also will consider 
comments from small entities concerning the affected DFARS subpart in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2003-D031.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 229

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, DoD proposes to amend 48 CFR Part 229 as follows:
    1. The authority citation for 48 CFR Part 229 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 229--TAXES

    2. Subpart 229.70 is revised to read as follows:

Subpart 229.70--Special Procedures for Overseas Contracts

    To obtain tax relief for overseas contracts, follow the procedures 
at PGI 229.70.
[FR Doc. 04-17471 Filed 7-30-04; 8:45 am]
BILLING CODE 5001-08-P