[Federal Register Volume 85, Number 226 (Monday, November 23, 2020)]
[Rules and Regulations]
[Pages 74611-74612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25429]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 229, and 252

[Docket DARS-2020-0018]
RIN 0750-AL11


Defense Federal Acquisition Regulation Supplement: Repeal of 
DFARS Clauses Related to Taxes Applied to Foreign Contracts in 
Afghanistan (DFARS Case 2020-D025)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove clauses related to 
taxes applied to foreign contracts in Afghanistan that are no longer 
necessary.

DATES: Effective November 23, 2020.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    DFARS clause 252.229-7014, Taxes-Foreign Contracts in Afghanistan, 
is included in solicitations and contracts with performance in 
Afghanistan, unless DFARS clause 252.229-7015 applies. DFARS clause 
252.229-7015, Taxes-Foreign Contracts in Afghanistan (North Atlantic 
Treaty Organization Status of Forces Agreement), is included in 
solicitations and contracts that are performed in Afghanistan and 
awarded on behalf of the North Atlantic Treaty Organization (NATO).
    DFARS clause 252.229-7014 implements terms of the Security and 
Defense Cooperation Agreement between the United States and the Islamic 
Republic of Afghanistan (September 2014). The Agreement applies to all 
persons or legal entities supplying goods and services in Afghanistan 
to or on behalf of U.S. Forces under a contract with or in support of 
U.S. Forces. The clause advises contractors that the contract is 
subject to the Agreement and exempt from taxes or similar charges 
assessed in Afghanistan; requires contractors to exclude any Afghan 
taxes, customs, duties, fees, or similar charges from the contract 
price; and explains the applicability of taxes to Afghan citizens 
employed by DoD or DoD contractors performing under the contract.
    DFARS clause 252.229-7015 implements terms of the Status of Forces 
Agreement (SOFA) between NATO and the Islamic Republic of Afghanistan 
(September 2014). The SOFA applies to all persons or legal entities 
supplying goods and services in Afghanistan to or on behalf of NATO 
forces under a contract with or in support of NATO, NATO member states, 
or operational partners. The clause advises contractors that the 
contract is subject to the SOFA and exempt from taxes or similar 
charges assessed in Afghanistan; requires contractors to exclude any 
Afghan taxes, customs, duties, fees, or similar charges from the 
contract price; and explains the applicability of taxes to Afghan 
citizens employed by NATO performing under the contract.
    Since several Federal agencies award contracts that are subject to 
the terms of the Agreement or SOFA, a final rule issued under FAR case 
2018-023 (85 FR 67623) implemented two new clauses in the FAR that 
notify applicable contractors of the same information included in DFARS 
clauses 252.229-7014 and 252.229-7015. As the text of the DFARS clauses 
have been implemented in the FAR, the DFARS clauses are no longer 
necessary and can be removed from the DFARS.
    The removal of the DFARS clauses supports a recommendation from the 
DoD Regulatory Reform Task Force. On February 24, 2017, the President 
signed Executive Order (E.O.) 13777, ``Enforcing the Regulatory Reform

[[Page 74612]]

Agenda,'' which established a Federal policy ``to alleviate unnecessary 
regulatory burdens'' on the American people. In accordance with E.O. 
13777, DoD established a Regulatory Reform Task Force to review and 
validate DoD regulations, including the DFARS. A public notice of the 
establishment of the DFARS Subgroup to the DoD Regulatory Reform Task 
Force, for the purpose of reviewing DFARS provisions and clauses, was 
published in the Federal Register at 82 FR 35741 on August 1, 2017, and 
requested public input. No public comments were received on these 
clauses. The DoD Task Force reviewed the requirements of DFARS clauses 
252.229-7014 and 252.229-7015, and recommended removal, contingent upon 
similar clauses being implemented in the FAR that are available for use 
by all Federal agencies, when applicable.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only removes obsolete DFARS clauses 252.229-7014 and 
252.229-7015. The rule does not impose any new requirements on 
contracts at or below the simplified acquisition threshold and for 
commercial items, including commercially available off-the-shelf items.

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is Office of Federal Procurement Policy 
statute (codified at title 41 of the United States Code). Specifically, 
41 U.S.C. 1707(a)(1) requires that a procurement policy, regulation, 
procedure or form (including an amendment or modification thereof) must 
be published for public comment if it relates to the expenditure of 
appropriated funds, and has either a significant effect beyond the 
internal operating procedures of the agency issuing the policy, 
regulation, procedure, or form, or has a significant cost or 
administrative impact on contractors or offerors. This final rule is 
not required to be published for public comment, because DoD is not 
issuing a new regulation; rather, this rule is merely removing obsolete 
clauses from the DFARS.

IV. Executive Orders 12866 and 13563

    E.O.s 12866 and 13563 direct agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). E.O. 13563 emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. This is not a 
significant regulatory action and, therefore, was not subject to review 
under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated 
September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

V. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section III. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required, and none has been prepared.

VII. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 212, 229, and 252

    Government procurement.

Jennifer D. Johnson,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 229, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 212, 229, and 252 continues 
to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.301  [Amended]

0
2. Amend section 212.301 by removing paragraph (f)(xii) and 
redesignating paragraphs (f)(xiii) through (xix) as paragraphs (f)(xii) 
through (xviii).

PART 229--TAXES


229.402-70  [Amended]

0
3. Amend section 229.402-70 by removing paragraphs (k) and (l).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.229-7014  [Removed]

0
4. Remove section 252.229-7014.


252.229-7015  [Removed]

0
5. Remove section 252.229-7015.

[FR Doc. 2020-25429 Filed 11-20-20; 8:45 am]
BILLING CODE 5001-06-P