DOD Updates Duty-Free Threshold

In a Federal Register (FRN) notice published on May 10, 2016 the Department of Defense (DoD) announced that a final rule amendment will be made to the Defense Federal Acquisition Regulation Supplement (DFARS) in response to the proposed rule (80 FRN 72672) that set out to revise DFARS 225.90I(3).

The amendment to the DFARS will increase the threshold of “duty-free entry on foreign supplies that are not qualifying country suppliers or eligible products under a trade agreement” from $200 to $300. An additional clause clarifies that this rule will apply when a contractor is requesting duty-free entry and does not requires any additional reporting or recordkeeping requirements.

The new threshold value amendment will go into effect on May 10, 2016. The full notice can be accessed at:


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