31490 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules

FOR FURTHER INFORMATION CONTACT:

Sharon P. McDonald, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Commission’s Notice of

Proposed Rule Making, MM Docket No.

96–124, adopted May 24, 1996, and

released June 7, 1996. The full text of

this Commission decision is available

for inspection and copying during

normal business hours in the FCC

Reference Center (Room 239), 1919 M

Street, NW., Washington, DC. The

complete text of this decision may also

be purchased from the Commission’s

copy contractor, International

Transcription Service, Inc., (202) 857–

3800, 2100 M Street, NW., Suite 140,

Washington, DC 20037.

Provisions of the Regulatory

Flexibility Act of 1980 do not apply to

this proceeding.

Members of the public should note

that from the time a Notice of Proposed

Rule Making is issued until the matter

is no longer subject to Commission

consideration or court review, all ex

parte contacts are prohibited in

Commission proceedings, such as this

one, which involve channel allotments.

See 47 CFR 1.1204(b) for rules

governing permissible ex parte contacts.

For information regarding proper

filing procedures for comments, see 47

CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 96–15668 Filed 6–19–96; 8:45 am]

BILLING CODE 6712–01–F

47 CFR Part 73

[MM Docket No. 96–126; RM–8815]

Radio Broadcasting Services; Cross

Hill, SC

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule.

SUMMARY: The Commission requests

comments on a petition filed by Ron

Moore proposing the allotment of

Channel 231A at Cross Hill, South

Carolina, as the community’s first local

aural transmission service. Channel

231A can be allotted to Cross Hill in

compliance with the Commission’s

minimum distance separation

requirements with a site restriction of

14.7 kilometers (9.1 miles) southeast to

avoid short-spacings to the licensed

sites of Station WGOR(FM), Channel

230C3, Martinez, Georgia, and Station

WMUU-FM, Channel 233C, Greenville,

South Carolina. The coordinates for

Channel 231A at Cross Hill are North

Latitude 34–13–04 and West Longitude

81–51–41.

DATES: Comments must be filed on or

before July 29, 1996, and reply

comments on or before August 13, 1996.

ADDRESSES: Federal Communications

Commission, Washington, DC 20554. In

addition to filing comments with the

FCC, interested parties should serve the

petitioner, or its counsel or consultant,

as follows: Ron Moore, 811–A Montague

Ave., Greenwood, South Carolina 29649

(Petitioner).

FOR FURTHER INFORMATION CONTACT:

Sharon P. McDonald, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Commission’s Notice of

Proposed Rule Making, MM Docket No.

96–124, adopted May 24, 1996, and

released June 7, 1996. The full text of

this Commission decision is available

for inspection and copying during

normal business hours in the FCC

Reference Center (Room 239), 1919 M

Street, NW., Washington, DC. The

complete text of this decision may also

be purchased from the Commission’s

copy contractor, International

Transcription Service, Inc., (202) 857–

3800, 2100 M Street, NW., Suite 140,

Washington, DC. 20037.

Provisions of the Regulatory

Flexibility Act of 1980 do not apply to

this proceeding.

Members of the public should note

that from the time a Notice of Proposed

Rule Making is issued until the matter

is no longer subject to Commission

consideration or court review, all ex

parte contacts are prohibited in

Commission proceedings, such as this

one, which involve channel allotments.

See 47 CFR 1.1204(b) for rules

governing permissible ex parte contacts.

For information regarding proper

filing procedures for comments, see 47

CFR 1.415 and 1.420.

List of Subjects in 47 CFR Part 73

Radio broadcasting.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 96–15670 Filed 6–19–96; 8:45 am]

BILLING CODE 6712–01–F

47 CFR Part 73

[MM Docket No. 96–39; RM–8757]

Television Broadcasting Services;

Irma, WI

AGENCY: Federal Communications

Commission.

ACTION: Proposed rule; dismissal.

SUMMARY: This action dismisses a

petition for rule making filed by David

A. White requesting the allotment of

UHF Television Channel 30+ to Irma,

Wisconsin. See 61 FR 10978, March 18,

1996. No comments were received at the

Commission stating an intention to file

an application for Channel 30+ at Irma,

Wisconsin. It is Commission policy to

refrain from allotting a channel absent

an expression of interest.

FOR FURTHER INFORMATION CONTACT:

Kathleen Scheuerle, Mass Media

Bureau, (202) 418–2180.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Report

and Order, MM Docket No. 96–39,

adopted May 24, 1996, and released

June 7, 1996. The full text of this

Commission decision is available for

inspection and copying during normal

business hours in the Commission’s

Reference Center (Room 239), 1919 M

Street, NW., Washington, DC. The

complete text of this decision may also

be purchased from the Commission’s

copy contractors, International

Transcription Services, Inc., 2100 M

Street, NW., Suite 140, Washington, DC

20037, (202) 857–3800.

List of Subjects in 47 CFR Part 73

Television broadcasting.

Federal Communications Commission.

John A. Karousos,

Chief, Allocations Branch, Policy and Rules

Division, Mass Media Bureau.

[FR Doc. 96–15669 Filed 6–19–96; 8:45 am]

BILLING CODE 6712–01–F

DEPARTMENT OF DEFENSE

48 CFR Parts 216, 222, 225, 227, 228,

229, 232, 233, 236, 246, and 252

[DFARS Case 94–D001]

Defense Federal Acquisition

Regulation Supplement; U.S. European

Command Supplement

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for

comments.

SUMMARY: The Department of Defense is

proposing revisions to the Defense

Federal Acquisition Regulation
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules 31491

Supplement (DFARS) to incorporate

certain text and clauses presently

contained in the U.S. European

Command (EUCOM) Supplement. The

proposed rule generally applies only to

requirements which will be performed

wholly or in part in a foreign country.

DATES: Comments on the proposed rule

and/or the associated information

collection requirement should be

submitted in writing to the address

shown below on or before August 19,

1996, to be considered in the

formulation of the final rule.

ADDRESSES: Interested parties should

submit written comments to: Defense

Acquisition Regulations Council, ATTN:

Ms. Amy Williams, PDUSD (A&T) DP

(DAR), 3062 Defense Pentagon,

Washington, D.C. 20301–3062. Telefax

number (703) 602–0350. Please cite

DFARS Case 94–D001 in all

correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:

Ms. Amy Williams, (703) 602–0131.

SUPPLEMENTARY INFORMATION:

A. Background

Firms awarded Department of Defense

contracts to be performed in foreign

countries must meet requirements

imposed by the host country’s

government concerning local business,

labor, environmental, tax, and other

laws in addition to meeting the

requirements of the U.S. Government

and obtaining all customs and tax

exemptions to which contractors with

the U.S. Government are entitled. The

proposed DFARS revisions elevate text

and clauses presently contained in the

U.S. EUCOM Supplement to provide

uniformity in the implementation of

these requirements overseas.

B. Regulatory Flexibility Act

The proposed DFARS rule is not

expected 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 only applies to

contracts to be solicited, awarded, or

performed overseas. More than 90

percent of such contracts are awarded to

foreign firms. Those U.S. firms

performing contracts overseas are not

generally ‘‘small entities.’’ Under 5

U.S.C. 601 (3), the definition of ‘‘small

entity’’ is the same as the definition of

‘‘small business,’’ contained in Section

3 of the Small Business Act (15 U.S.C.

631 et seq.), as implemented in 13 CFR

121.403. Section 121.403(a) states that a

‘‘business concern eligible for assistance

as a small business is a business entity

organized for profit, with a place of

business located in the United States

and which makes a significant

contribution to the U.S. economy

through payment of taxes and/or use of

American products, materials and/or

labor.’’ The proposed rule applies only

to contracts which will be awarded or

performed, wholly or in part, in foreign

countries. Firms which compete for

such procurements must meet

requirements imposed by the host

country’s government concerning local

business, labor, environmental, tax, and

other laws, and obtain permits to

operate, hire the mix of employees

needed, etc., which are unique to

conducting business within a particular

country. The nature of these

procurements limits the competition for

U.S. requirements to those firms which

are authorized by the local governments

to conduct business within that country.

There are only a few small businesses

that qualify as ‘‘invited contractors’’

under the Status of Forces Agreements.

An Initial Regulatory Flexibility

Analysis has, therefore, not been

performed. Comments are invited from

small entities and other interested

parties. Comments from small entities

concerning the affected DFARS subparts

will also be considered in accordance

with Section 610 of the Act. Such

comments must be submitted separately

and cite DFARS Case 94–D001 in

correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act of 1995

(Pub. L. 104–13) applies because the

proposed rule contains reporting and

recordkeeping requirements. Necessary

requests for approval of the information

collection requirements in the proposed

rule, as well as extension of existing

requirements in Part 216 and related

clauses, have been submitted to the

Office of Management and Budget under

Section 3507(d) of the Act. Information

collection requirements relating to

retention of records and making books

available are already covered under

OMB Clearance 9000–0034 (i.e., DFARS

252.216–7003(c) and 252.222–7004(a)).

Invoicing requirements are covered

under OMB Clearance 0704–0248 (i.e.,

DFARS 252.229–7001(b), 252.229–

7003(d), 252.229–7007, and 252.229–

7008(c)). Insurance requirements are

covered in OMB Clearance 0704–0216

(i.e., 252.228–7007(c)).

1. Comments

Comments are invited. Particular

comments are solicited on:

a. Whether the collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

b. The accuracy of the agency’s

estimate of the burden of the

information collection;

c. Ways to enhance the quality,

utility, and clarity of the information to

be collected; and

d. Ways to minimize the burden of the

information collection on respondents,

including the use of automated

collection techniques or other forms of

information technology.

2. Title, Associated Form, and OMB

Number

a. Approval of the information

collection requirements under proposed

DFARS 252.216–7003(b)(1) has been

requested as a revision and extension to

‘‘Defense FAR Supplement, Part 216,

Types of Contracts, and Related Clauses

in Part 252.216,’’ OMB Number 0704–

0259.

b. Approval of the information

collection requirements in proposed

DFARS 252.229–710 (b) and (c) has

been requested as a new clearance,

‘‘Defense FAR Supplement Part 229,

Taxes, and Related Clauses at 252.229.’’

This information collection is an

existing collection in use in the U.S.

European Command Supplement

without an OMB control number, which

is now being incorporated in the

DFARS.

3. Needs and Uses

a. The information collection required

by the existing clauses, DFARS

252.216–7000(c) and DFARS 252.216–

7001, and the proposed clause, DFARS

252.216–7003(b)(1), is necessary to

enable the contracting officer to make a

prompt modification to the contract,

changing contract unit prices when

appropriate. The information is used by

contracting officers to evaluate the need

for price adjustments.

b. The information collection required

by proposed clause DFARS 252.229–

7010 is necessary to permit Her

Majesty’s (HM) Customs to determine

the amount of tax relief to be granted

and to inform the contracting officer

that an attempt to obtain relief has been

initiated. After the Contractor obtains

tax relief, the contracting officer

appropriately adjusts the contract price.

If the Contractor does not attempt to

obtain relief within the time specified,

the contracting officer may deduct from

the contract price the amount of relief

that would have been allowed if HM

Customs and Excise had favorably

considered a request for relief.

4. Affected Public. Businesses or other

for profit.
31492 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules

Extension New

252.216–700/7001 252.216–7003 252.229–7010

240 48 .................................................................................................................................................... 1568 96

20 6 ........................................................................................................................................................ 196 24

3 1 .......................................................................................................................................................... 2 1

60 6 ........................................................................................................................................................ 392 24

4 8 .......................................................................................................................................................... 4 4

5. Annual Burden Hours: 1952.

6. Number of Respondents: 246.

7. Responses per Respondent: 2.

8. Number of Responses: 482.

9. Average Burden per Response: 4.

10. Frequency: On occasion.

11. Supplementary Information. a. i.

DFARS 252.216–7000(c), for which DoD

is requesting extension of the existing

paperwork burden clearance, requires

contractors to notify contracting officers

of the amount and effective date of each

decrease in any established catalog or

market price and permits contractors to

submit a written request to increase

their established prices.

ii. DFARS 252.216–7001(f), for which

DoD is also requesting extension of the

paperwork burden clearance, requires

contractors, within 30 days of final

delivery, to identify the correctness of

the hourly earnings of their employees

that are relevant to the computations of

various labor indices and, upon request,

make available all records used in the

computation of those indices.

iii. The proposed clause at DFARS

252.216–7003(b)(1) requires the

contractor to provide a written request

for contract adjustment within 10 days

of the increase in established wage rates

or material prices, in order for the

increase in contract unit price to be

effective on the same date that the host

government increases the applicable

wage rates or material prices.

b. The proposed clause at DFARS

252.229–7010, Relief from Customs

Duty (United Kingdom), requires

contractors, whose contracts are

awarded in the United Kingdom and

which require the use of certain fuels

and lubricants during performance, to

provide specific information to Her

Majesty’s (HM) Customs and Excise and

to provide the contracting officer with

evidence that an attempt to obtain relief

from customs duty on fuels and

lubricants has been initiated.

Lists of Subjects in 48 CFR Parts 216,

222, 225, 227, 228, 229, 232, 233, 236,

246, and 252

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition

Regulations Council.

Therefore, 48 CFR Parts 216, 222, 225,

227, 228, 229, 232, 233, 236, 246, and

252 are proposed to be amended as

follows:

1. The authority citation for 48 CFR

Parts 216, 222, 225, 227, 228, 229, 232,

233, 236, 246, and 252 continues to read

as follows:

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

Chapter 1.

PART 216—TYPES OF CONTRACTS

2. Section 216.203–4–70 is amended

by adding paragraph (c) to read as

follows:

216.203–4–70 Additional clauses.

* * * * *

(c) Price adjustment based on foreign

government controlled wages or

material prices. (1) The price

adjustment clause at 252.216–7003,

Economic Price Adjustment—Foreign

Government Controlled Wages or

Materials, may be used in fixed-price

supply and service contracts when—

(i) The contract is to be performed

wholly or in part in a foreign country;

and

(ii) A foreign government controls

wages or material prices and may,

during contract performance, impose a

mandatory change in wages or prices of

material.

(2) Verify the base wage rates and

material prices prior to contract award

and prior to making any adjustment in

the contract price.

PART 222—APPLICATION OF LABOR

LAWS TO GOVERNMENT

ACQUISITIONS

3. Subpart 222.72 is added to read as

follows:

Subpart 222.72—Compliance With

Host Country Labor Laws

Sec.

222.7200 Scope of subpart.

222.7201 Contract clauses.

222.7200 Scope of subpart.

This subpart prescribes contract

clauses, with respect to host country

labor laws, for use when contracting for

services or construction within the host

country.

222.7201 Contract clauses.

(a) Use the clause at 252.222–7002,

Compliance with Local Labor Laws

(Overseas), in solicitations and contracts

for services or construction to be

performed outside the United States, its

possessions, or Puerto Rico.

(b) Use the clause at 252.222–7003,

Permit from Italian Inspectorate of

Labor, in solicitations and contracts for

porter, janitorial, or ordinary facility

and equipment maintenance services to

be performed in Italy.

(c) Use the clause at 252.222–7004,

Compliance with Spanish Social

Security Laws and Regulations, in

solicitations and contracts for services

or construction when contract

performance will be in Spain.

PART 225—FOREIGN ACQUISITION

4. Subpart 225.9 is added to read as

follows:

Subpart 225.9—Additional Foreign

Acquisition Clauses

Sec.

225.970 Correspndence in English.

225.971 Authorization to Perform.

225.970 Correspondence in English.

Use the clause at 252.225–7041,

Correspondence in English, in

solicitations and contracts when

contract performance will be wholly or

in part in a foreign country.

225.971 Authorization to perform.

Use the clause at 252.225–7042,

Authorization to Perform, in

solicitations and contracts when

contract performance will be wholly or

in part in a foreign country.

PART 227—PATENTS, DATA, AND

COPYRIGHTS

5. Section 227.676 is added to read as

follows:

227.676 Foreign patent interchange

agreements.

(a) Patent interchange agreements

between the United States and foreign

governments provide for the use of

patent rights, compensation, free

licenses, and the establishment of

committees to review and make

recommendations on these matters. The
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules 31493

agreements also may exempt the United

States from royalty and other payments.

The contracting officer shall ensure that

royalty payments are consistent with

patent interchange agreements.

(b) Assistance with patent rights and

royalty payments in the United States

European Command (USEUCOM) area

of responsibility is available from: HQ

USEUCOM, ATTN; ECLA, Unit 30400,

Box 1000, APO AE 09128, Telephone

No: DSN: 430–7474, Commercial: 49–

0711–680–7474, Telefax No: 49–0711–

680–7408.

PART 228—BONDS AND INSURANCE

6. Section 228.370 is amended by

adding paragraph (f) to read as follows:

228.370 Contract clauses.

* * * * *

(f) Use the clause at 252.228–7008,

Compliance with Spanish Laws and

Insurance, in solicitations and contracts

for services or construction to be

performed in Spain by other than

Spanish contractors or subcontractors.

PART 229—TAXES

7. Section 229.101 is amended by

redesignating paragraphs (d)(i), (d)(ii)

and (d)(iii) as (d)(iii), (d)(iv) and (d)(v);

and by adding new paragraphs (d)(i),

(d)(ii), and (d)(vi) to read as follows:

229.101 Resolving tax problems.

* * * * *

(d)(i) Tax relief agreements between

the United States and foreign

governments in Europe which exempt

the United States from payment of

specific taxes on purchases made for

common defense purposes are

maintained by the United States

European Command (USEUCOM). For

further information contact—HQ

USEUCOM, ATTN: ECLA, Unit 30400,

Box 1000, APO AE 09128, Telephone

No: DSN: 430–7474, Commercial: 49–

0711–680–7474, Telefax No: 49–0711–

680–7408.

(ii) Tax relief also may be available in

countries which have not signed tax

relief agreements. The potential for such

relief should be explored in accordance

with paragraph (d)(iii) of this section.

* * * * *

(vi) See also subpart 229.70 for special

procedures for obtaining tax relief and

duty-free import privileges when

conducting United States acquisitions in

foreign countries with foreign

contractors.

8. Subpart 229.4 is added to read as

follows:

Subpart 229.4—Contract Clauses

Sec.

229.402 Foreign contracts.

229.402–1–70 Foreign fixed-price contracts.

229.402–70 Additional clauses.

229.402 Foreign contracts.

229.402–1–70 Foreign fixed-price

contracts.

Use the clause at 252.229–7000,

Invoices Exclusive of Taxes or Duties, in

solicitations and contracts when a fixedprice contract will be awarded to a

foreign contractor.

229.402–70 Additional clauses.

(a) Use the clause at 252.229–7001,

Tax Relief, in solicitations and contracts

when a contract will be awarded to a

foreign contractor in a foreign country.

When contract performance will be in

Germany, use the clause with its

Alternate I.

(b) Use the clause at 252.229–7002,

Customs Exemptions (Germany), in

solicitations and contracts requiring the

import of United States manufactured

products into Germany.

(c) Use the clause at 252.229–7003,

Tax Exemptions (Italy), in solicitations

and contracts when contract

performance will be in Italy.

(d) Use the clause at 252.229–7004,

Status of Contractor as a Direct

Contractor (Spain), in solicitations and

contracts requiring the import of

supplies for construction, development,

maintenance, and operation of SpanishAmerican installations and facilities.

(e) Use the clause at 252.229–7005,

Tax Exemptions (Spain), in solicitations

and contracts when contract

performance will be in Spain.

(f) Use the clause at 252.229–7006,

Value Added Tax Exclusion (United

Kingdom), in solicitations and contracts

when contract performance will be in

the United Kingdom.

(g) Use the clause at 252.229–7007,

Verification of United States Receipt of

Goods, in solicitations issued and

contracts awarded in the United

Kingdom.

(h) Use the clause at 252.229–7008,

Relief from Import Duty (United

Kingdom), in solicitations issued and

contracts awarded in the United

Kingdom.

(i) Use the clause at 252.229–7009,

Relief from Customs Duty and Value

Added Tax on Fuel (Passenger Vehicles)

(United Kingdom) in solicitations issued

and contracts awarded in the United

Kingdom for fuels (gasoline or diesel)

and lubricants used in passenger

vehicles (excluding taxis).

(j) Use the clause at 252.229–7010,

Relief from Customs Duty on Fuel

(United Kingdom), in solicitations

issued and contracts awarded in the

United Kingdom calling for the use of

fuels (gasoline or diesel) and lubricants

in taxis or vehicles other than passenger

vehicles.

9. Subpart 229.70 is added to read as

follows:

Subpart 229.70—Special Procedures

for Overseas Contracts

Sec.

229.7000 Scope of subpart.

229.7001 Tax exemption in Europe.

229.7002 Tax exemption in Spain.

229.7003 Tax exemption in the United

Kingdom.

229.7003–1 Value added tax.

229.7003–2 Import duty.

229.7003–3 VAT/Duty problem resolution.

229.7003–4 Information required by HM

Customs and Excise.

229.7000 Scope of subpart.

This subpart prescribes procedures to

be used by contracting officers to obtain

tax relief and duty-free import privileges

when conducting United States

Government acquisitions in foreign

countries with foreign contractors.

229.7001 Tax exemption in Europe.

When standard commercial items or

services are being acquired, the

contracting officer shall require the

contractor to identify and separately

state the tax amount from which the

United States is exempt and which has

been excluded from the contract price.

The contracting officer will compare the

excluded amount with the tax relief

authorized by tax relief agreements to

ensure that the United States

Government is accorded the full benefit

of all tax exemptions (see also 229.402–

70(a) and the clause at 252.229–7001).

229.7002 Tax exemption in Spain.

(a) The Joint United States Military

Group (JUSMG), Spain Policy Directive

400.4, or subsequent directive, applies

to all United States contracting offices

contracting for services or supplies in

Spain which require the introduction of

material or equipment into Spain.

(b) Upon award of a contract with a

‘‘Direct Contractor,’’ as defined in the

clause at 252.229–7004, the contracting

officer will notify JUSMG–MAAG

Madrid, Spain, and HQ 16AF/LGTT and

forward three copies of the contract to

JUSMG–MAAG, Spain.

(c) If copies of the contract are not

available and duty-free import of

equipment or materials is urgent, the

contracting officer will send JUSMG–

MAAG three copies of the ‘‘Letter of

Intent’’ or a similar document indicating

the pending award. In these cases,

authorization for duty-free import will
31494 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules

be issued by the Government of Spain.

Upon formal award, the contracting

officer will forward three copies of the

completed contract to JUSMG–MAAG,

Spain.

(d) The contracting officer will notify

JUSMG–MAAG, Spain, and HQ 16AF/

LGTT of ports-of-entry and identify the

customs agents who will clear property

on their behalf. Additional documents

required for port-of-entry and customs

clearance can be obtained by contacting

HQ 16AF/LGTT. This information will

be passed to the Secretaria General

Tecnica del Ministerio de Hacienda

(Technical General Secretariat of the

Ministry of Finance). A list of customs

agents may be obtained from the 600

ABG, APO AE 09646.

229.7003 Tax exemption in the United

Kingdom.

This section contains procedures to be

followed in securing relief from the

British Value Added Tax (VAT) and

import duties.

229.7003–1 Value added tax.

(a) United States Government

purchases qualifying for tax relief are

equipment, materials, facilities, and

services for the common defense effort

and for foreign aid programs.

(b) In order to facilitate the resolution

of issues concerning specific waivers of

import duty or tax exemption for United

States Government purchases (see

229.7003-3), contracting offices shall

provide the name and activity address

of personnel who have been granted

warranted contracting authority to Her

Majesty’s (HM) Customs and Excise at

the following address: HM Customs and

Excise, International Customs Division

G, Branch 4, Adelaide House, London

Bridge, London EC4R 9DB.

229.7003–2 Import duty.

No import duty shall be paid by the

United States and contract prices shall

be exclusive of duty, except when the

administrative cost compared to the low

dollar value of a contract makes it

impracticable to obtain relief from

contract import duty. In this instance,

the contracting officer shall document

the contract file with a statement that

(1) The administrative burden of

securing tax relief under the contract

was out of proportion to the tax relief

involved;

(2) It is impracticable to secure tax

relief;

(3) Tax relief is therefore not being

secured; and

(4) The acquisition does not involve

the expenditure of any funds to

establish a permanent military

installation.

229.7003–3 VAT/Duty problem resolution.

In the event a VAT or import duty

problem cannot be resolved at the

contracting officer’s level, refer the issue

to HQ Third Air Force, Staff Judge

Advocate, Unit 4840, Box 45, APO AE

09459. Direct contract with HM

Customs and Excise in London is

prohibited.

229.7003–4 Information required by HM

Customs and Excise.

(a) School bus contracts. Provide one

copy of the contract and all

modifications to HM Customs and

Excise.

(b) Road fuel contracts. For contracts

which involve an application for relief

from duty on the road fuel used in

performance of the contract provide—

(1) To HM Customs and Excise—

(i) Contract number;

(ii) Name and address of contractor;

(iii) Type of work (e.g., laundry,

transportation);

(iv) Area of work; and

(v) Period of performance.

(2) To the Regional Office of HM

Customs and Excise to which the

contractor applied for relief from the

duty on road fuel—one copy of the

contract.

(c) Other contracts awarded to United

Kingdom firms. Provide information

when requested by HM Customs and

Excise.

PART 232—CONTRACT FINANCING

10. Section 232.806–70 is added to

read as follows:

§ 232.806–70 Alternate contract clause for

overseas contracting.

Use the clause at 252.232–7008,

Assignment of Claims (Overseas), in

place of FAR clause 52.232–23,

Assignment of Claims, in solicitations

and contracts when contract

performance will be in a foreign

country.

PART 233—PROTESTS, DISPUTES,

AND APPEALS

11. Section 233.215–70 is added to

read as follows:

§ 233.215–70 Additional contract clause.

Use the clause at 252.233–7001,

Choice of Law (Overseas), in

solicitations and contracts when

contract performance will be outside of

the United States, its possessions, or

Puerto Rico, unless otherwise provided

for in a Government-to-Government

agreement.

PART 236—CONSTRUCTION AND

ARCHITECT-ENGINEER CONTRACTS

12. Section 236.570 is amended by

adding paragraph (c) to read as follows:

§ 236.570 Additional provisions and

clauses.

* * * * *

(c) See also 246.710(4) for additional

clause applicable to construction

contracts to be performed in Germany.

PART 246—QUALITY ASSURANCE

13. Section 246.710 is amended by

adding paragraph (4) to read as follows:

§ 246.710 Contract clauses.

* * * * *

(4) Use the clause at 252.246–7002,

Warranty of Construction (Germany), in

solicitations and contracts for

construction when a fixed-price contract

will be awarded and contract

performance will be in Germany.

PART 252—SOLICITATION

PROVISIONS AND CONTRACT

CLAUSES

14. Section 252.216–7003 is added to

read as follows:

§ 252.216–7003 Economic Price

Adjustment—Foreign Government

Controlled Wages or Materials.

As prescribed in 216.203–4–70(c), use

the following clause:

Economic Price Adjustment—Foreign

Government Controlled Wages or Materials

(XXX XXXX)

(a) The Contractor represents that the

prices set forth in this contract—

(1) Are based on the wage rate(s) or

material price(s) established and controlled

by the Government or llllll

(Contractor—insert name of host country);

and

(2) Do not include contingency allowances

to pay for possible increases in wage rates or

material prices.

(b) If wage rates or material prices are

revised by the Government named in

paragraph (a) of this clause, the Contracting

Officer shall make an equitable adjustment in

the contract price and shall modify the

contract to the extent that the Contractor’s

actual costs of performing this contract are

increased or decreased, as a direct result of

the revision, subject to the following:

(1) For increases in established wage rates

or material prices, the increase in contract

unit price(s) shall be effective on the same

date that the host government increased the

applicable wage rate(s) or material price(s),

but only if the Contracting Officer receives

the Contractor’s written request for contract

adjustment within 10 days of the change. If

the Contractor’s request is received later, the

effective date shall be the date that the

Contracting Officer receives the Contractor’s

request.
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules 31495

(2) For decreases in established wage rates

or material prices, the decrease in contract

unit price(s) shall be effective on the same

date that the host government decreased the

applicable wage rate(s) or material price(s).

The decrease in contract unit price(s) shall

apply to all items delivered on and after the

effective date of the host government’s rate or

price decrease.

(c) No modification changing the contract

unit price(s) shall be executed until the

Contracting Officer has verified the

applicable change in the rates/prices set by

the host government. The Contractor shall

make available its books and records which

support a requested change in contract price.

(d) Failure to agree to any adjustment shall

be a dispute under the Disputes clause of this

contract.

(End of clause)

15. Section 252.222–7002 is added to

read as follows:

§ 252.222–7002 Compliance with Local

Labor Laws (Overseas).

As prescribed in 222.7201(a), use the

following clause:

Compliance With Local Labor Laws

(Overseas) (XXX XXXX)

(a) The Contractor shall comply with all—

(1) Local laws, regulations, and labor union

agreements governing work hours; and

(2) Labor regulations including collective

bargaining agreements, workers’

compensation, working conditions, fringe

benefits, and labor standards or labor

contract matters.

(b) The Contractor indemnifies and holds

harmless the United States Government from

all claims arising out of the requirements of

this clause. This indemnity includes the

Contractor’s obligation to handle and settle,

without cost to the United States

Government, any claims or litigation

concerning allegations that the Contractor or

the United States Government, or both, have

not fully complied with local labor laws or

regulations relating to the performance of

work required by this contract.

(c) Notwithstanding paragraph (b) of this

clause, consistent with Federal Acquisition

Regulation 31.205–15(a) and 31.205–47(d),

the Contractor will be reimbursed for the

costs of all fines, penalties, and reasonable

litigation expenses incurred as a result of

compliance with specific contract terms and

conditions or written instructions from the

Contracting Officer.

(End of clause)

16. Section 252.222–7003 is added to

read as follows:

252.222–7003 Permit from Italian

Inspectorate of Labor.

As prescribed in 222.7201(b), use the

following clause:

Permit From Italian Inspectorate of Labor

(XXX XXXX)

Prior to the date set for commencement of

work and services under this contract, the

Contractor shall obtain the prescribed permit

from the Inspectorate of Labor having

jurisdiction over the work site, in accordance

with Article 5g of Italian Law Number 1369,

dated October 23, 1960. The Contractor shall

ensure that a copy of the permit is available

at all reasonable times for inspection by the

Contracting Officer or an authorized

representative. Failure to obtain such permit

may result in termination of the contract for

the convenience of the United States

Government, at no cost to the United States

Government.

(End of clause)

17. Section 252.222–7004 is added to

read as follows:

252.222–7004 Compliance with Spanish

Social Security Laws and Regulations.

As prescribed in 222.7201(c), use the

following clause:

Compliance With Spanish Social Security

Laws and Regulations (XXX XXXX)

(a) The Contractor shall comply with all

Spanish Government social security laws and

regulations. Within 30 calendar days after the

start of contract performance, the Contractor

shall ensure that copies of the documents

identified in paragraph (a)(1) through (a)(5) of

this clause are available at all reasonable

times for inspection by the Contracting

Officer or an authorized representative. The

Contractor shall retain the records in

accordance with the Audit and Records

clause of this contract.

(1) TC1—Certificate of Social Security

Payments;

(2) TC2—List of employees;

(3) TC2/1—Certificate of Social Security

Payments for Trainees;

(4) Nominal (pay statements) signed by

both the employee and Contractor; and

(5) INFORMA DE SITUACION DE

EMPRESA (Report of the condition of the

enterprise) from the Ministerio de Trabajo y

S.S., Tesoreria General de la Seguridad Social

(annotated with the pertinent contract

number(s) next to the employee’s name).

(b) All TC1’s, TC2’s, and TC2/1’s, shall

contain a representation that they have been

paid by either the Social Security

Administration Office or the Contractor’s

bank or savings institution. Failure by the

Contractor to comply with the requirements

of this clause may result in termination of the

contract under the clause entitled ‘‘Default.’’

(End of clause)

18. Section 252.225–7041 is added to

read as follows:

252.225–7041 Correspondence in English.

As prescribed in 225.970, use the

following clause:

Correspondence in English (XXX XXXX)

The Contractor shall ensure that all

contract correspondence which is addressed

to the United States Government is submitted

in English or with an English translation.

(End of clause)

19. Section 252.225–7042 is added to

read as follows:

252.225–7042 Authorization to Perform.

As prescribed in 225.971, use the

following clause:

Authorization To Perform (XXX XXXXX)

The Contractor represents that it has been

duly authorized to operate and do business

in the country or countries in which this

contract is to be performed. The Contractor

also represents that it will fully comply with

all laws, decrees, labor standards, and

regulations of such country or countries,

during the performance of this contract.

(End of clause)

20. Section 252.228–7008 is added to

read as follows:

252.228–7008 Compliance with Spanish

Laws and Insurance.

As prescribed at 228.370(f), use the

following cause:

Compliance With Spanish Laws and

Insurance (XXX XXXXX)

(a) The Contractor shall, without additional

expense to the United States Government,

comply with all applicable Spanish

Government laws pertaining to sanitation,

traffic, security, employment of labor and all

other laws relevant to the performance of this

contract. The Contractor shall hold the

United States Government harmless and free

from any liability resulting from the

Contractor’s failure to comply with such

laws.

(b) The Contractor shall, at its own

expense, provide and maintain during the

entire performance of this contract, all

workmen’s compensation, employees’

liability, bodily injury insurance, and other

required insurance adequate to cover the risk

assumed by the Contractor. The Contractor

shall indemnify and hold harmless the

United States Government from liability

resulting from all claims for damages as a

result of death or injury to personnel or

damage to real or personal property related

to the performance of this contract.

(c) The Contractor agrees to represent in

writing to the Contracting Officer, prior to

commencement of work and not later than 15

days after the date of the ‘‘Notice to

Proceed,’’ that the Contractor has obtained

the required types of insurance in the

following minimum amounts. The

representation shall also state that the

Contractor will promptly notify the

Contracting Officer of any notice of

cancellation of insurance or material change

in insurance coverage which could affect the

United States Government’s interests.
31496 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules

Type of insurance Coverage/person Coverage/accident Property damage

Comprehensive .......................................................................................................... $300,000.00 $1,000,000.00 $100,000.00

General Liability

(d) The Contractor shall provide the

Contracting Officer with a similar

representation for all subcontractors who will

perform work under this contract.

(e) Insurance policies required herein shall

be purchased from Spanish insurance

companies or other insurance companies

legally authorized to conduct business in

Spain. Such policies shall conform to

Spanish laws and regulations and shall—

(1) Contain provisions requiring

submission to Spanish law and jurisdiction

of any problem that may arise with regard to

the interpretation or application of the

clauses and conditions of the insurance

policy;

(2) Contain a provision authorizing the

insurance company, as subrogee of the

insured entity, to assume and attend to

directly, with respect to any person damaged,

the legal consequences arising from the

occurrence of such damages;

(3) Contain a provision worded as follows:

‘‘The insurance company waives any right of

subrogation against the United States of

America which may arise by reason of any

payment under this policy’’;

(4) Not contain any deductible amount or

similar limitation; and

(5) Not contain any provisions requiring

submission to any type of arbitration.

(End of clause)

21. Section 252.229–7000 is added to

read as follows:

252.229–7000 Invoices Exclusive of Taxes

or Duties.

As prescribed at 229.402–1–70, use

the following clause:

Invoices Exclusive of Taxes or Duties (XXX

XXXX)

Invoices submitted in accordance with the

terms and conditions of this contract shall be

exclusive of all taxes or duties for which

relief is available.

(End of clause)

22. Section 252.229–7001 is added to

read as follows:

252.229–7001 Tax Relief.

As prescribed at 229.402–70(a), use

the following clause:

Tax Relief (XXX XXXX)

(a) Prices set forth in this contract are

exclusive of all taxes and duties from which

the United States Government is exempt by

virtue of tax agreements between the United

States Government and the Contractor’s

Government. The following taxes or duties

have been excluded from the contract prices.

NAME OF TAX: lllllllllllll

(Contractor insert)

RATE (PERCENTAGE): llllllllll

(Contractor insert)

(b) The Contractor’s invoice shall

separately list the gross price, amount of tax

deducted, and the net price charged.

(c) When items manufactured to United

States Government specifications are being

acquired, the Contractor shall identify the

materials or components intended to be

imported in order to ensure that relief from

import duties is obtained. If the Contractor

intends to use imported products from

inventories on hand, the price of which

includes a factor for import duties, the

Contractor shall still ensure the United States

Government’s exemption from these taxes.

The Contractor may obtain a refund of the

import duties from its government or request

the duty-free import of an amount of supplies

or components corresponding to that used

from inventory for this contract.

(End of clause)

Alternate I. (XXX XXXX)

As prescribed at 229.402–70(a), add the

following paragraph (d) to the basic clause

(Note: The ‘‘Offshore Steuerabkommen’’

refers to the agreement on tax relief at

252.229–7010):

(d) Tax relief will be claimed in Germany

pursuant to the United States-German Tax

Agreement (Offshore Steuerabkommen). The

Contractor shall use ‘‘Abwicklungsschein

fuer abgabenbeguenstigte Lieferungen/

Leistungen nach dem Offshore

Steuerabkommen’’ (Performance certificate

for tax-free deliveries/performance according

to the offshore tax relief agreement) or other

documentary evidence acceptable to the

German tax authorities. All purchases made

and paid for on a tax-free basis during a 30-

day period may be accumulated, totaled, and

reported as tax-free.

23. Section 252.229–7002 is added to

read as follows:

252.229–7002 Customs Exemptions

(Germany)

As prescribed at 229.402–70(b), use

the following clause:

Customs Exemptions (Germany) (XXX

XXXX)

Imported products required for the direct

benefit of the United States Forces are

authorized to be acquired duty-free by

contractors in accordance with the provisions

of the ‘‘Agreement Between the United States

of America and Germany Concerning Tax

Relief to be Accorded by Germany to United

States Expenditures in the Interest of

Common Defense.’’

(End of clause)

24. Section 252.229–7003 is added to

read as follows:

252.229–7003 Tax Exemptions (Italy).

As prescribed at 229.402–70(c), use

the following clause:

Tax Exemptions (Italy) (XXX XXXX)

(a) The Contractor represents that the

contract prices, including the prices in

subcontracts awarded hereunder, do not

include taxes from which the United States

Government is exempt.

(b) The United States Government is

exempt from payment of Imposta Valore

Aggiunto (IVA) tax in accordance with

Article 72 of the IVA implementing decree on

all supplies and services sold to United

States Military Commands in Italy.

(1) Upon receipt of the invoice, the paying

office will stamp the following statement on

one copy of the invoice:

‘‘I represent that this invoice is true and

correct and reflects expenditures made in

Italy for the Common Defense by the United

States Government pursuant to international

agreements. The amount to be paid does not

include the IVA tax because this transaction

is not subject to the tax in accordance with

Article 72 of Decree Law 633 of 26 October

1972.’’

(2) The copy with the representation,

signed by an authorized Government official,

will be returned together with payment to the

Contractor. The payment will not include the

amount of the IVA tax.

(3) The Contractor must retain this copy of

the invoice with the representation to

substantiate non-payment of the IVA tax.

(c) In addition to the IVA tax, purchases by

the United States Forces in Italy are exempt

from the following taxes:

(1) Imposta di Fabbricazione (Production

Tax for Petroleum Products).

(2) Imposta di Consumo (Consumption Tax

for Electrical Power).

(3) Dazi Doganali (Customs Duties).

(4) Tassa di Sbarco e d’Imbarco sulle Merci

Transportate per Via Aerea e per Via

Marittima (Port Fees).

(5) Tassa de Circolazione sui Veicoli

(Vehicle Circulation Tax).

(6) Imposta di Registro (Registration Tax).

(7) Imposta di Bollo (Stamp Tax).

(d) The Contractor’s administrative

procedures for claiming and validating the

exemptions are as follows:

(1) Contract offer price shall not reflect IVA

or any other tax or duty.

(2) Contract number must be set forth on

Contractor invoices, which should state the

exemptions claimed pursuant to Art. 72,

Decree No. 633, dated October 26, 1972, for

IVA exemption.

(3) Fiscal code for payments made by

Aviano Air Base Appropriated Funds is:

91000190933.

(4) Questions may be addressed to the

Ministry of Finance, 11th District, Room (06)

5910982.

(End of clause)

25. Section 252.229–7004 is added to

read as follows:
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules 31497

252.229–7004 Status of Contractor as a

Direct Contractor (Spain).

As prescribed at 229.402–70(d), use

the following clause:

Status of Contractor as a Direct Contractor

(Spain) (XXX XXXX)

(a) ‘‘Direct Contractor’’ means an

individual, company, or entity with whom an

agency of the United States Department of

Defense has executed a written agreement

which allows duty-free import of equipment,

materials and supplies into Spain for the

construction, development, maintenance,

and operation of Spanish-American

installations and facilities.

(b) The Contractor is hereby designated a

‘‘Direct Contractor’’ under the provisions of

Complementary Agreement 5, articles 11, 14,

15, 17, and 18 of the Agreement on

Friendship, Defense and Cooperation

between the United States Government and

the Kingdom of Spain, dated July 2, 1982.

The Agreement relates to contracts to be

performed in whole or part in Spain, the

provisions of which are hereby incorporated

into and made a part of this contract by

reference.

(c) The Contractor shall apply to the

appropriate Spanish authorities for approval

of status as a ‘‘Direct Contractor’’ in order to

complete duty-free import of non-Spanish

materials and equipment represented as

necessary for contract performance by the

Contracting Officer. Material/equipment

orders placed prior to official notifications of

such approval shall be at the Contractor’s

own risk. The Contractor must submit its

documentation in sufficient time to assure

processing by the appropriate United States

and Spanish Government agencies prior to

the arrival of material/equipment in Spain.

Seasonal variations in processing times are

common and the Contractor should program

its projects accordingly. Any delay or

expense arising directly or indirectly from

this process shall not excuse untimely

performance (except as expressly allowed in

other provisions), constitute a direct or

constructive change, or otherwise provide a

basis for additional compensation or

adjustment of any kind.

(d) To ensure that all duty-free imports are

properly accounted for, exported, or disposed

of, in accordance with Spanish law, the

Contractor shall obtain a written bank letter

of guaranty payable to the Treasurer of the

United States, or such other authority as may

be designated by the Contracting Officer, in

the amount set forth in paragraph (g) of this

clause, prior to effecting any duty-free

imports for the performance of this contract.

(e) If the Contractor fails to obtain the

required guaranty, the Contractor agrees that

the Contracting Officer may withhold a

portion of the contract payments in order to

establish a fund, in the amount set forth in

paragraph (g) of this clause. The fund shall

be used for the payment of import taxes in

the event that the Contractor fails to properly

account for, export, or dispose of equipment,

materials, or supplies imported duty-free.

(f) The amount of the bank letter of

guaranty or size of the fund required under

paragraphs (d) or (e) of this clause shall

normally be 5 percent of the contract value.

However, if the Contractor demonstrates to

the Contracting Officer’s satisfaction that the

amount retained by the United States

Government or guaranteed by the bank is

excessive, the amount shall be reduced to an

amount commensurate with contingent

import tax and duty-free liability. This bank

guaranty or fund shall not be released to the

Contractor until the Spanish General

Directorate of Customs verifies the

accounting, export, or disposition of the

equipment, material, or supplies imported on

a duty-free basis.

(g) The amount required under paragraph

(d), (e), or (f) of this clause is

llllllllll

(Contracting Officer insert amount at time of

contract award.

(h) The Contractor agrees to insert the

provisions of this clause, including this

paragraph (h), in all subcontracts.

(End of clause)

26. Section 252.229–7005 is added to

read as follows:

252.229–7005 Tax Exemptions (Spain).

As prescribed at 229.402–70(e), use

the following clause:

Tax Exemptions (Spain) (XXX 1995)

(a) The Contractor represents that the

contract prices, including subcontract prices,

do not include the taxes identified herein, or

any other taxes from which the United States

Government is exempt.

(b) In accordance with tax relief

agreements between the United States

Government and the Spanish Government

and because the incumbent contract arises

from the activities of the United States Forces

in Spain, the contract will be exempt from

the following excise, luxury, and transaction

taxes:

(1) Derechos de Aduana (Customs Duties).

(2) Impuesto de Compensacion a la

Importacion (Compensation Tax on Imports)

(3) Transmissiones Patrionomiales

(Property Transfer Tax).

(4) Impuesto Sobre el Lujo (Luxury Tax).

(5) Actos Juridocos Documentados (Legal

Official Transactions).

(6) Impuesto Sobre el Trafico de Empresas

(Business Trade Tax).

(7) Impuestos Especiales de Fabricacion

(Special Products Tax).

(8) Impuesto Sobre el Petroleo y Derivados

(Tax on Petroleum and its by-products when

CAMPSA coupons are used).

(9) Impuesto Sobre el Uso de Telefona

(Telephone Tax).

(10) Impuesto General Sobre la Renta de

Sociedades y demas Entidades Juridicas

(General Corporation Income Tax).

(11) Impuesto Industrial (Industrial Tax).

(12) Impuesto de Rentas sobre el Capital

(Capital Gains Tax).

(13) Plus Vailia (Increase on Real Property).

(14) Contribucion Territorial Urbana

(Metropolitan Real Estate Tax).

(15) Contribucion Territorial Rustica y

Pecuaria (Farmland Real Estate Tax).

(16) Impuestos de la Diputacion (County

Service Charges).

(17) Impuestos Municipal y Tasas

Parafiscales (Municipal Tax and Charges).

(End of clause)

27. Section 252.229–7006 is added to

read as follows:

252.229–7006 Value Added Tax Exclusion

(United Kingdom).

As prescribed at 229.402–70(f), insert

the following clause:

Value Added Tax Exclusion (United

Kingdom) (XXX XXXX)

The supplies or services identified in this

contract or purchase order are to be delivered

at a price exclusive of Value Added Tax

under arrangements between the appropriate

United States authorities and Her Majesty’s

Customs and Excise (Reference Priv 46/7). By

executing this contract, the Contracting

Officer certifies that these supplies and/or

services are being purchased for United

States Government official purposes only.

(End of clause)

28. Section 252.229–7007 is added to

read as follows:

252.229–7007 Verification of United States

Receipt of Goods.

As prescribed at 229.402–70(g), use

the following clause:

Verification of United States Receipt of

Goods (XXX XXXX)

The Contractor shall insert the following

statement on all Material Inspection and

Receiving Reports (DD Form 250 series) for

Contracting Officer approval:

‘‘I represent that the items listed on this

invoice have been received by the United

States.’’

(End of clause)

29. Section 252.229–7008 is added to

read as follows:

252.229–7008 Relief from Import Duty

(United Kingdom).

As prescribed at 229.402–70(h), use

the following clause:

Relief From Import Duty (United Kingdom)

(XXX XXXX)

Any import dutiable articles, components,

or raw materials supplied to the United

States Government under this contract shall

be exclusive of any United Kingdom import

duties. Any imported items supplied for

which import duty has already been paid

will be supplied at a price exclusive of the

amount of import duty paid. The Contractor

is advised to contact Her Majesty’s (HM)

Customs and Excise in order to obtain a

refund upon completion of the contract

(Reference HM Customs and Excise Notice

No. 431, February 1973, entitled ‘‘Relief from

Customs Duty and/or Value Added Tax on

United States Government Expenditures in

the United Kingdom.’’)

(End of clause)

30. Section 252.229–7009 is added to

read as follows:
31498 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules

252.229–7009 Relief from Customs Duty

and Value Added Tax on Fuel (Passenger

Vehicles) (United Kingdom).

As prescribed at 229.402–70(i), use

the following clause:

Relief From Customs Duty and Value Added

Tax on Fuel (Passenger Vehicles) (United

Kingdom) (XXX XXXX)

(a) Pursuant to an agreement between the

United States Government and Her Majesty’s

(HM) Customs and Excise, fuels and

lubricants used by passenger vehicles (except

taxis) in the performance of this contract will

be exempt from customs duty and value

added tax. Therefore, the procedures

outlined in HM Customs and Excise Notice

431B dated August 1982, and any

amendment thereto, shall be used to obtain

relief from both Customs Duty and value

added tax for fuel used under the contract.

These procedures shall apply to both loaded

and unloaded miles. The unit prices should

be based on the recoupment by the

Contractor of Customs Duty in accordance

with the following allowances:

(1) Vehicles (except taxis) with a seating

capacity of less than 29, one gallon for every

27 miles.

(2) Vehicles with a seating capacity of

29–53, one gallon for every 13 miles.

(3) Vehicles with a seating capacity of

54 or more, one gallon for every 10

miles.

(b) In the event the mileage of any

route is increased or decreased within

10 percent, resulting in no change in

route price, the Customs Duty shall be

reclaimed from HM Customs and Excise

on actual mileage performed.

(End of clause)

31. Section 252.229–7010 is added to

read as follows:

252.229–7010 Relief from Customs Duty

on Fuel (United Kingdom).

As prescribed at 229.402–70(j), use

the following clause:

Relief From Customs Duty on Fuel (United

Kingdom (XXX 1995)

(a) Pursuant to an agreement between the

United States Government and Her Majesty’s

(HM) Customs and Excise, it is possible to

obtain relief from customs duty on fuels and

lubricants used in support of certain

contracts. If vehicle fuels and lubricants are

used in support of this contract, the

Contractor shall seek relief from customs

duty in accordance with HM Customs Notice

No. 431, February 1973, entitled ‘‘Relief from

Customs Duty and/or Value Added Tax on

United States Government Expenditures in

the United Kingdom.’’ Application should be

sent to the contractor’s local Customs and

Excise Office.

(b) Specific information should be

included in the request for tax relief, such as

the number of vehicles involved, types of

vehicles, rating of vehicles, fuel

consumption, estimated mileage per contract

period, and any other information which will

assist HM Customs and Excise in

determining the amount of relief to be

granted.

(c) Within 30 days after the award of this

contract, the Contractor shall provide the

Contracting Officer with evidence that an

attempt to obtain such relief has been

initiated. In the event the Contractor does not

attempt to obtain relief within the time

specified, the Contracting Officer may deduct

from the contract price the amount of relief

that would have been allowed if HM Customs

and Excise had favorably considered the

request for relief.

(d) The amount of any rebate granted by

HM Customs and Excise shall be paid in full

to the United States Government. Checks

shall be made payable to the Treasurer of the

United States and forwarded to the

Administrative Contracting Officer.

(End of clause)

32. Section 252.232–7008 is added to

read as follows:

252.232–7008 Assignment of Claims

(Overseas).

As prescribed at 232.806–70, use the

following clause:

Assignment of Claims (Overseas) (XXX

XXXX)

(a) No claims for monies due, or to become

due, shall be assigned by the Contractor

unless—

(1) Approved in writing by the Contracting

Officer;

(2) Made in accordance with the laws and

regulations of the United States of America;

and

(3) Permitted by the laws and regulations

of the Contractor’s country.

(b) In no event shall copies of this contract

or of any plans, specifications, or other

similar documents relating to work under

this contract, if marked ‘‘Top Secret,’’

‘‘Secret,’’ or ‘‘Confidential’’ be furnished to

any assignee of any claim arising under this

contract or to any other person not entitled

to receive such documents. However, a copy

of any part or all of this contract so marked

may be furnished, or any information

contained herein may be disclosed, to such

assignee upon the Contracting Officer’s prior

written authorization.

(c) Any assignment under this contract

shall cover all amounts payable under this

contract and not already paid, and shall not

be made to more than one party, except that

any such assignment may be made to one

party as agent or trustee for two or more

parties participating in such financing. On

each invoice or voucher submitted for

payment under this contract to which any

assignment applies, and for which direct

payment thereof is to be made to an assignee,

the Contractor shall—

(1) Identify the assignee by name and

complete address; and

(2) Acknowledge the validity of the

assignment and the right of the named

assignee to receive payment in the amount

invoiced or vouchered.

(End of clause)

33. Section 252.233–7001 is added to

read as follows:

252.233–7001 Choice of Law (Overseas).

As prescribed at 233.215–70, use the

following clause:

Choice of Law (Overseas) (XXX XXXX)

This contract shall be construed and

interpreted in accordance with the

substantive laws of the United States of

America. By the execution of this contract,

the Contractor expressly agrees to waive any

rights to invoke the jurisdiction of local

national courts where this contract is

performed and agrees to accept the exclusive

jurisdiction of the United States Armed

Services Board of contract appeals and the

United States court of Federal claims for the

hearing and determination of any and all

Disputes which may arise under the Disputes

clause of this contract.

(End of clause)

34. Section 252.246–7002 is added to

read as follows:

252.246–7002 Warranty of Construction

(Germany).

As prescribed at 246.710(4), use the

following clause:

Warranty of Construction (Germany)

(XXXX)

(a) In addition to any other representations

in this contract, the Contractor represents,

except as provided in paragraph (j) of this

clause, that the work performed under this

contract conforms to the contract

requirements and is free of any defect of

equipment, material, or design furnished, or

workmanship performed by the Contractor or

any subcontractor or supplier at any tier.

(b) This warranty shall continue for the

period(s) specified in Section 13, VOB, Part

B, commencing from the date of final

acceptance of the work under this contract.

If the Government takes possession of any

part of the work before final acceptance, this

warranty shall continue for the period(s)

specified in Section 13, VOB, Part B, from the

date the Government takes possession.

(c) The Contractor shall remedy, at the

Contractor’s expense, any failure to conform

or any defect. In addition, the Contractor

shall remedy, at the Contractor’s expense,

any damage to Government-owned or

-controlled real or personal property when

that damage is the result of—

(1) The Contractor’s failure to conform to

contract requirements; or

(2) Any defect of equipment, material,

workmanship, or design furnished.

(d) The Contractor shall restore any work

damaged in fulfilling the terms and

conditions of this clause.

(e) The Contracting Officer shall notify the

Contractor, in writing, within a reasonable

time after the discovery of any failure, defect,

or damage.

(f) If the Contractor fails to remedy any

failure, defect, or damage within a reasonable

time after receipt of notice, the Government

shall have the right to replace, repair, or

otherwise remedy the failure, defect, or

damage at the Contractor’s expense.

(g) With respect to all warranties, express

or implied, from subcontractors,

manufacturers, or suppliers for work
Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Proposed Rules 31499

performed and materials furnished under this

contract, the Contractor shall—

(1) Obtain all warranties that would be

given in normal commercial practice;

(2) Require all warranties to be executed,

in writing, for the benefit of the Government,

if directed by the Contracting Officer; and

(3) Enforce all warranties for the benefit of

the Government as directed by the

Contracting Officer.

(h) In the event the Contractor’s warranty

under paragraph (b) of this clause has

expired, the Government may bring suit at its

expense to enforce a subcontractor’s,

manufacturer’s, or supplier’s warranty.

(i) Unless a defect is caused by the

Contractor’s negligence, or the negligence of

a subcontractor or supplier at any tier, the

Contractor shall not be liable for the repair

of any defects of material or design furnished

by the Government nor the repair of any

damage resulting form any defect in

Government-furnished material or design.

(j) This warranty shall not limit the

Government’s right under the Inspection

clause of this contract, with respect to latent

defects, gross mistakes, or fraud.

(End of clause)

[FR Doc. 96–15222 Filed 6–19–96; 8:45 am]

BILLING CODE 5000–04–M

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric

Administration

50 CFR Part 652

[I.D. 061396A]

Atlantic Surf Clam and Ocean Quahog

Fisheries; Notice of Availability for

Amendment 9

AGENCY: National Marine Fisheries

Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA),

Commerce.

ACTION: Notice of availability of a fishery

management plan amendment; request

for comments.

SUMMARY: NMFS announces that the

Mid-Atlantic Fishery Management

Council (Council) has submitted

Amendment 9 to the Fishery

Management Plan for the Atlantic Surf

Clam and Ocean Quahog Fisheries

(FMP) for Secretarial review and is

requesting comments from the public.

The amendment would revise

overfishing definitions for Atlantic surf

clams and ocean quahogs.

DATES: Comments must be received on

or before August 13, 1996.

ADDRESSES: Send comments to Dr.

Andrew Rosenberg, Regional Director,

National Marine Fisheries Service,

Northeast Regional Office, 1 Blackburn

Drive, Gloucester, MA 01930-3799.

Mark the outside of the envelope

‘‘Comments on Overfishing Definitions

for Clams and Quahogs.’’

Copies of Amendment 9 and the

environmental assessment are available

from David R. Keifer, Executive

Director, Mid-Atlantic Fishery

Management Council, Room 2115

Federal Building, 300 S. New Street,

Dover, DE 19904-6790.

FOR FURTHER INFORMATION CONTACT:

Myles Raizin, Fishery Policy Analyst,

508-281-9104.

SUPPLEMENTARY INFORMATION: The

Magnuson Fishery Conservation and

Management Act (16 U.S.C. 1801 et seq.)

(Magnuson Act) requires that each

fishery management council submit any

fishery management plan or plan

amendment it prepares to the Secretary

of Commerce (Secretary) for review and

approval, disapproval, or partial

disapproval. The Magnuson Act also

requires that NMFS, on behalf of the

Secretary, upon receiving the plan or

amendment, immediately make a

preliminary evaluation of whether the

amendment is sufficient to warrant

continued review, and publish a

document that the plan or amendment

is available for public review and

comment. NMFS will consider the

public comments in determining

whether to approve the amendment.

Amendment 9, if approved, would

revise overfishing definitions for the

stocks managed under the FMP in

compliance with the NOAA Guidelines

for Fishery Management Plans (50 CFR

part 602).

During its discussions of the 1996

quota recommendations, the Council

considered revising the overfishing

definitions specified in the FMP.

Overfishing is presently defined for both

species in terms of actual yield levels—

that is, overfishing is defined as harvests

in excess of the specified quota levels.

This definition does not incorporate

biological considerations to protect

against overfishing. NMFS has

concluded that a harvesting strategy

based on Council policy is no longer

acceptable, since it depends on the

Council taking appropriate action,

rather than adhering to a rate-based

biological standard. The overfishing

definition proposed by the Council for

surf clams as contained in Amendment

9 is a fishing mortality rate of F20% (20

percent of maximum spawning potential

(MSP)), which equates to an annual

exploitation rate of 15.3 percent. The

overfishing definition proposed by the

Council for ocean quahogs as contained

in Amendment 9 is a fishing mortality

of F25% (25 percent of MSP), which

equates to an annual exploitation rate of

4.3 percent.

The receipt date for this amendment

is June 12, 1996. No proposed or final

regulations will be published for this

amendment, because, if it is approved,

no changes will be needed in the

codified regulatory text that implements

this FMP.

Authority: 16 U.S.C. 1801 et seq.

Dated: June 14, 1996.

Richard W. Surdi,

Acting Director, Office of Fisheries

Conservation and Management, National

Marine Fisheries Service.

[FR Doc. 96–15661 Filed 6–14–96; 4:52 pm

BILLING CODE 3510–22–F

50 CFR Part 652

[Docket No. 960531155–6155–01; I.D.

050996B]

Atlantic Surf Clam and Ocean Quahog

Fishery; Control Date

AGENCY: National Marine Fisheries

Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA),

Commerce.

ACTION: Advance notice of proposed

rulemaking; consideration of a control

date.

SUMMARY: NMFS announces that the

Mid-Atlantic Fishery Management

Council (Council) is considering

limiting future access to anyone

entering that portion of the ocean

quahog (Arctica islandica) fishery,

commonly referred to as the Maine

mahogany quahog fishery, that is

managed through the Maine Mahogany

Quahog Experimental Fishery Program

after June 20, 1996 (control date). Future

access to the Maine mahogany quahog

resource in the exclusive economic zone

(EEZ) will not be assured beyond the

control date if a management regime is

developed and implemented under the

Magnuson Fishery Conservation and

Management Act (Magnuson Act) that

limits the number of participants in the

fishery. This document is intended to

promote awareness of potential

eligibility criteria for future access to

that portion of the ocean quahog fishery

managed through the Maine Mahogany

Quahog Experimental Fishery Program

and to discourage new entries into this

fishery based on economic speculation

while the Council contemplates whether

and how access should be controlled.

The potential eligibility criteria may be

based on historical participation,

defined as any number of trips having

any documented amount of ocean

quahog landings. This document,

therefore, gives the public notice that

they should locate and preserve records