Local Clauses Tax Exemption ROK

UNITED STATES FORCES KOREA (USFK)

CONTRACT LOCAL CLAUSES

LOCAL CLAUSES

Status of Forces Agreement (SOFA) between the Republic of Korea and the United States of America

1. Tax Exemption — Customs, Republic of Korea
Pursuant to Article IX of the Status of Forces Agreement between the Republic of Korea and the United States of America, the United States and its contractors are exempt from Republic of Korea customs duties and other related charges.
By submission of its offer or quote, the Contractor certifies that the price for all material, supplies, and equipment to be imported for the performance of this contract do not include any otherwise applicable customs duties. To obtain an exemption or reimbursement for customs duties paid pursuant to performance of the contract, the contractor must provide the Contracting Officer with the total amount of customs duties that have been excluded from the contract price. The Contracting Officer will return USFK Form 75 to the contractor for filing with the Republic of Korea Customs Office at the time of import declaration or later if the customs duties were paid before award of the contract.

2. Tax Exemption — Special Excise Tax, Republic of Korea This clause is in implementation of Article XVI of the Status of Forces Agreement between the Republic of Korea and the United States, granting Contractors exemption from Republic of Korea Special Excise Taxes. At the time this contract is awarded the Contractor shall indicate to the Contracting Officer which items will be purchased for the contract that are subject to Special Excise Tax. It shall indicate the following information: • Name of the item
• Number of units to be purchased
• Cost per unit without tax
• Percentage of tax
• Tax amount per unit
• Total tax
• Manufacturer of the item
The Contracting Officer will verify the reasonableness of the quantities claimed and ensure that the Contractor has certified that the contract price excludes Special Excise Tax on those items subject to the tax. The Contractor shall purchase the special excise-taxed items from the manufacturer, tax-inclusive. Procedure for Construction and Single-Delivery Type Supply and Service Contracts: At the time it purchases the items it shall present the manufacturer with a notification letter requesting refund of the Special Excise Tax. (Copies of this letter can be obtained from the 411th CSB, Korea Contracting Officer.) The manufacturer will endorse the letter to the manufacturer's District Tax Office which will make refund to the manufacturer. The manufacturer will make