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Subpart 6Duty and Customs

6.601 Duties and Customs on Foreign Purchases. Ordinarily, duty must be paid in connection with the importation of supplies purchased by NASA outside the United States as provided in the tariff schedules set forth in 19 U.S.C. 1202 (Public Law 87–456, Title III, Section 303(c), approved May 24, 1962; 76 Stat. 78). However, many items are listed in the schedules as being duty-free. Schedule 8 of $1202 is specifically directed to items which may be imported duty-free under conditions set forth in connection with the various items listed therein. Particular attention is invited to the following authorized exemptions:

(i) item 832 of Part 3 of Schedule 8 provides that “emergency war

materials purchased abroad” may be imported duty-free upon certification by the Military Departments to the Commissioner of Customs. Accordingly, when a Military Department makes a purchase on behalf of NASA, or when NASA is making a purchase for a Military Department, the above duty-free exemption authority shall be used to the maximum extent practicable. The policies and procedures for effecting duty-free entry of such materials are

set forth in ASPR, Section VI, Part 6; (ü) item 864.30 of Part 5, Schedule 8 provides for the duty-free exemp

tion of "articles intended solely for testing, experimental or review purposes including plans, specifications, drawings, photographs, and similar articles for use in connection with experimental study" subject to the limitations set forth in headnote 1, under Item 862.20

of Part 5, Schedule 8; and (iii) certain supplies (not including equipment) for vessels or aircraft

operated by the United States are exempt from duty under 19 U.S.C. 1309.

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Subpart 7–Foreign Contract Procurement 6.700 Scope of Subpart. This Subpart prescribes policy and procedures relating to the negotiation of foreign contracts.

6.701 Definition of Foreign Contract Procurement. The term “foreign contract procurement” as used in this Subpart means the procurement by negotiation of supplies or services, including construction work and contracts for research and development, where the work is to be performed outside the United States, its possessions, and Puerto Rico, by a foreign government or instrumentality thereof, or a foreign private contractor. The term does not include the following:

(i) negotiation of government-to-government agreements;
(ü) negotiation of contracts with domestic concerns which involves

work to be performed outside the United States, its possessions,

and the Commonwealth of Puerto Rico;
(ü) contracts with the Canadian Commercial Corporation; or

(iv) procurement of books and periodicals from foreign sources of supply.

6.702 Policy. Foreign contract procurement is a specialized area which often requires involved negotiation with instrumentalities of foreign governments. Some of the requirements for contract clauses imposed by United States laws conflict with statutory prohibitions imposed by foreign countries. The resolution of these issues generally involves close coordination between the Office of International Programs and the Office of General Counsel, NASA Headquarters, and the Department of State. Accordingly, it is the policy of NASA that the responsibility for foreign contract procurement be centralized at NASA Headquarters.

6.703 Assignment of Responsibility for Contract Negotiation. The Headquarters Contracts Division (Code: DHC), in conjunction with the Offices of International Affairs and General Counsel, is responsible for negotiating and executing contracts with foreign governments and private foreign organizations. This assignment of responsibility is specifically limited to foreign contract procurement, as defined in 6.701.

6.704 Procedure. A Headquarters or field installation technical office requiring a foreign procurement to be made will submit a properly approved Purchase Request (NASA Form 404, or similar form), through channels, to the Headquarters Contracts Division, NASA Headquarters (Code DHC), for procurement action. In accordance with 7.000, contract forms and clauses to be used in foreign contract procurement will be as prescribed on a case-by-case basis by the Director of Procurement.

6.705 Assignment of Contract Administration.

(a) General. Assignment of contract administration responsibility will be made by agreement between the initiating office and the Headquarters Contracts Division. Since principal responsibility for the monitoring of contractor progress and performance generally rests with a field installation, the Headquarters Contracts Division normally will designate the procurement officer of the cognizant field installation as his authorized representative for purposes of contract administration.

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