Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules 35717 

791 and 93, dated December 12, 2002, and 

May 28, 2003, respectively), and entered into 

force on May 28, 2003. 

(b) The Agreement exempts the 

Government of the United States of America 

and its contractors, subcontractors, and 

contractor personnel from paying any tax or 

similar charge assessed within Afghanistan. 

The Agreement also exempts the acquisition, 

importation, exportation, and use of articles 

and services in the Republic of Afghanistan 

by or on behalf of the Government of the 

United States of America in implementing 

this agreement from any taxes, customs, 

duties, or similar charges in Afghanistan. 

(c) The Contractor shall exclude any 

Afghan taxes, customs, duties, or similar 

charges from the contract price. 

(d) The Agreement does not exempt 

Afghan employees of DoD contractors and 

subcontractors from Afghan tax laws. To the 

extent required by Afghan law, the 

Contractor shall withhold tax from the wages 

of these employees and to remit those 

payments to the appropriate Afghanistan 

taxing authority. These withholdings are an 

individual’s liability, not a tax against the 

Contractor. 

(e) The Contractor shall include the 

substance of this clause, including this 

paragraph (e), in all subcontracts, including 

subcontracts for commercial items. 

(End of clause) 

■ 4. Add section 252.229–70YY to read 

as follows: 

252.229–70YY Taxes—Foreign Contracts 

in Afghanistan (Military Technical 

Agreement). 

As prescribed in 229.402–70(l), use 

the following clause: 

TAXES—FOREIGN CONTRACTS IN 

AFGHANISTAN (MILITARY TECHNICAL 

AGREEMENT) (DATE) 

(a) This acquisition is covered by the 

Military Technical Agreement (MTA) entered 

into between the International Security 

Assistance Forces (ISAF) and Interim 

Administration of Afghanistan in April 2002 

and the 2011 Letter of Interpretation issued 

on March 9, 2011. 

(b) The MTA establishes the basic rules 

and exempts NATO/ISAF and its contractors 

and subcontractors from paying any tax or 

similar charge assessed within Afghanistan. 

The MTA also exempts the acquisition, 

importation, exportation and use of supplies 

and services in Afghanistan from all Afghan 

taxes, fees, duties or other form of revenue 

generation. 

(c) The Contractor shall exclude any 

Afghan taxes, customs duties or similar 

charges from its contract price, except as 

modified in paragraph (d) of this clause. 

(d) The ISAF 2011 Letter of Interpretation 

modified the MTA’s tax exemption effective 

March 21, 2011. 

(1) Local contractors are subject to tax for 

profits earned from NATO/ISAF contracts or 

subcontract and may include that tax in its 

contract price. The goods, materials, and 

supplies acquired and the services provided 

by local contractors for the use of NATO/

ISAF, NATO member states, and non-NATO 

member states participating in the ISAF 

remain exempt from other taxes, duties, sales 

or other taxes, import fees, or fees of any 

kind. The Contractor may include the tax on 

profits in the contract price. 

(2) Afghan citizens employed by NATO/

ISAF contractors and subcontractors are 

subject to Afghan tax laws. To the extent 

required by Afghan law, the Contractor shall 

withhold tax from the wages of these 

employees and to remit those withholdings 

to the Afghanistan Revenue Department. 

These withholdings are an individual’s 

liability, not a tax against the Contractor. 

(e) The Contractor shall include the 

substance of this clause, including this 

paragraph (e), in all subcontracts including 

subcontracts for commercial items. 

(End of clause) 

[FR Doc. 2014–14595 Filed 6–23–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisitions Regulations 

System 

48 CFR Parts 235, 237, and 252 

RIN 0750–AI22 

Defense Federal Acquisition 

Regulation Supplement; Animal 

Welfare (DFARS Case 2013–D038) 

AGENCY: Defense Acquisition 

Regulations System; Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

comply with the Department of Defense 

Instruction that addresses the use of 

animals in DoD programs. 

DATES: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before August 25, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2013–D038 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2012–D038’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2013– 

D038.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2012– 

D038’’ on your attached document. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2013–D038 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Janetta 

Brewer, OUSD(AT&L)DPAP/DARS, 

Room 3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov, 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Janetta Brewer, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060, 

Telephone 571–372–6104. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This rule proposes to revise DFARS 

235.072, 237.1, and the clause at 

252.235–7002, Animal Welfare, to be 

consistent with the Department of 

Defense Instruction (DoDI) 3216.01 

entitled ‘‘Use of Animals in DoD 

Programs,’’ which governs DoDsupported research, development, test, 

and evaluation or training that uses 

vertebrate animals, and the acquisition 

of animals. 

II. Discussion and Analysis 

The rule proposes to prescribe 

inclusion of the clause at DFARS 

252.235–7002 in solicitations and 

contracts involving research, 

development, test, and evaluation or 

training that uses live vertebrate 

animals. Contractors shall acquire and 

care for animals in accordance with the 

pertinent laws of the United States, the 

regulations of the Department of 

Agriculture, DoDI 3216.01, and agency 

implementing regulations. The rule also 

proposes to make contractor facilities 

available for inspection by the 

appropriate officials. It also adds 

DFARS 237.17X to address training that 

uses live vertebrate animals and to 

provide a cross-reference to DFARS 

235.072. 

III. Executive Orders 12866 and 13563 

Executive Orders (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 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

35718 Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Proposed Rules 

(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 a significant 

regulatory action and, therefore, was 

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. 

IV. Regulatory Flexibility Act 

DoD does not expect this proposed 

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. However, an initial regulatory 

flexibility analysis has been performed 

and is summarized as follows: 

The data obtained from the Office of 

Assistant Secretary of Defense for 

Research Development Animal Research 

Development Test & Evaluation 

Protection Programs shows an estimate 

of 50 new DoD Research, Development, 

Test, and Evaluation contracts awarded 

in Fiscal Year 2012 that involved animal 

testing. Forty eight of these contracts 

were awarded to small businesses 

entities, which could be impacted by 

this rule. However, any cost burden 

caused by this rule will be outweighed 

by the effect of the rule preventing 

cruelty to animals. 

The rule does not add any new 

information collection requirements. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. No 

alternatives were identified that will 

accomplish the objectives of the rule. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD will consider comments from 

small entities concerning the existing 

regulations in subparts affected by this 

rule in accordance with 5 U.S.C. 610. 

Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2013–D038), in 

correspondence. 

V. 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 235, 

237, and 252 

Government procurement. 

Amy G. Williams, 

Deputy, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 235, 237, and 

252 are proposed to be amended as 

follows: 

■ 1. The authority citation for parts 235, 

237, and 252 continues to read as 

follows: 

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

chapter 1. 

PART 235—RESEARCH AND 

DEVELOPMENT CONTRACTING 

■ 2. Amend section 235.072 by revising 

paragraph (a) to read as follows: 

235.072 Additional contract clauses. 

(a) Use the clause at 252.235–7002, 

Animal Welfare, or one substantially the 

same, in solicitations and contracts 

awarded involving research, 

development, test, and evaluation or 

training that uses live vertebrate 

animals. 

* * * * * 

PART 237—SERVICE CONTRACTING 

■ 3. Add section 237.17X to subpart 

237.1 to read as follows: 

237.17X Training that uses live vertebrate 

animals. 

When contracting for training that 

will use live vertebrate animals, see 

235.072. 

PART 252—SOLICITAION PROVISIONS 

AND CONTRACT CLAUSES 

■ 4. Revise section 252.235–7002 to 

read as follows: 

252.235–7002 Animal Welfare. 

As prescribed in 235.072(a), use the 

following clause: 

ANIMAL WELFARE (DATE) 

(a)(1) The Contractor shall register its 

research, development, test, and evaluation 

or training facility with the Secretary of 

Agriculture in accordance with 7 U.S.C. 2136 

and 9 CFR subpart C, and section 2.30, unless 

otherwise exempt from this requirement by 

meeting the conditions in 7 U.S.C. 2136 and 

9 CFR parts 1 through 4 for the duration of 

the activity. The Contractor shall have its 

proposed animal use approved in accordance 

with Department of Defense Instruction 

(DoDI) 3216.01 by a DoD Component 

Headquarters Oversight Office. The 

Contractor shall furnish evidence of such 

registration and approval to the Contracting 

Officer before beginning work under this 

contract. 

(2) The Contractor shall make its animals, 

and all premises, facilities, vehicles, 

equipment, and records that support animal 

care available during business hours and at 

other times mutually agreeable to the 

Contractor and United States Department of 

Agriculture office of Animal and Plant Health 

Inspection Service (USDA/APHIS) 

representative, personnel representing the 

DoD component oversight offices, as well as 

the Contracting Officer, to ascertain that the 

Contractor is compliant with 7 U.S.C. 2131– 

2159 and 9 CFR parts 1 through 4. 

(b) The Contractor shall acquire animals in 

accordance with Department of Defense 

Instruction (DoDI) 3216.01, Use of Animals 

in DoD Programs (http://www.dtic.mil/whs/

directives/corres/pdf/321601p.pdf). 

(c) The Contractor agrees that the care and 

use of animals will conform with the 

pertinent laws of the United States, 

regulations of the Department of Agriculture, 

and policies and procedures of the 

Department of Defense (see 7 U.S.C. 2131 et 

seq., 9 CFR subchapter A, parts 1 through 4, 

DoDI 3216.01, Army Regulation 40–33/

SECNAVINST 3900.38C/AFMAN 40–401(I)/

DARPAINST 18/USUHSINST 3203). The 

Contractor shall also comply with DoDI 

1322.24 if this contract includes acquisition 

of training. 

(d) The Contracting Officer may 

immediately suspend, in whole or in part, 

work and further payments under this 

contract for failure to comply with the 

requirements of paragraphs (a) through (c) of 

this clause. 

(1) The suspension will stay in effect until 

the Contractor complies with the 

requirements. 

(2) Failure to complete corrective action 

within the time specified by the Contracting 

Officer may result in termination of this 

contract and if applicable, removal of the 

Contractor’s name from the approved vendor 

list for live animals used in medical training. 

(e) The Contractor may request registration 

of its facility by contacting USDA/APHIS/AC, 

4700 River Road, Unit 84, Riverdale, MD 

20737–1234 or via the APHIS-Animal Care 

Web site at: http://www.aphis.usda.gov/wps/ 

portal/aphis/ourfocus/animalwelfare. 

(f) The Contractor shall include this clause, 

including this paragraph (f), in all 

subcontracts involving research, 

development, test, and evaluation or training 

that uses live vertebrate animals. 

(End of clause) 

[FR Doc. 2014–14592 Filed 6–23–14; 8:45 am] 

BILLING CODE 5001–06–P 

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