FAR 25.902—Procedures.
Plain-English Summary
FAR 25.902 explains how imported supplies bought under Government contracts are handled at the border and how customs duties apply. It directs readers to the U.S. Customs Regulations in 19 CFR chapter 1 for the actual importation and duty rules, and it makes clear that, unless a specific customs exception applies under 19 CFR 10.100, imported supplies purchased for Government contracts must go through the normal customs entry and examination process. The section also states that these shipments are subject to duty unless the agency secures an exemption under FAR 25.903. In practice, this means contracting personnel and contractors cannot assume that Government purchase automatically avoids customs formalities or duty liability. The section exists to coordinate federal procurement with customs law, prevent improper duty treatment, and ensure imported contract supplies are processed correctly at entry.
Key Rules
Customs law controls importation
Importation procedures and duty rules are governed by the Customs Regulations in 19 CFR chapter 1, not by FAR alone. Users must look to customs rules for the detailed entry, examination, and duty requirements.
Normal customs entry applies
Except where the Customs Regulations provide otherwise, all shipments of imported supplies purchased under Government contracts are subject to the usual customs entry and examination requirements. Government procurement does not eliminate the need for customs processing.
Duty applies unless exempted
Imported supplies bought under Government contracts are subject to duty unless the agency obtains an exemption under FAR 25.903. The default rule is duty liability, not duty-free treatment.
Check for customs exceptions
The section points to 19 CFR 10.100 as an example of a customs-regulatory exception that may alter the normal entry requirements. Parties must verify whether any customs exception applies before assuming standard processing.
Responsibilities
Contracting Officer / Agency
Coordinate with customs requirements when acquiring imported supplies, determine whether an exemption is available under FAR 25.903, and ensure the agency takes the steps needed to obtain any applicable duty exemption.
Contractor
Comply with customs entry and examination requirements for imported supplies furnished under the contract, and not assume that Government purchase status removes customs or duty obligations.
U.S. Customs and Border Protection / Customs Authorities
Administer the customs entry, examination, and duty rules under 19 CFR chapter 1 and apply any customs-regulatory exceptions that affect imported shipments.
Practical Implications
Imported contract supplies usually still need normal customs clearance, so acquisition teams must plan for entry documentation, inspection, and timing delays.
Duty is the default outcome unless an exemption is affirmatively obtained, so failing to address duty early can increase costs or create compliance problems.
Contractors should not rely on the contract itself to waive customs requirements; the applicable customs regulations still control the import process.
Agencies need to coordinate procurement and customs issues early, especially for foreign-source items, to avoid shipment holds, unexpected duty charges, or missed exemption opportunities.
A common pitfall is assuming all Government purchases are duty-free; this section makes clear that duty relief requires a specific exemption under FAR 25.903 or another applicable customs rule.
Official Regulatory Text
For regulations governing importations and duties, see the Customs Regulations issued by the U.S. Customs Service, Department of the Treasury (19 CFR Chapter 1). Except as provided elsewhere in the Customs Regulations (see 19 CFR 10.100 ), all shipments of imported supplies purchased under Government contracts are subject to the usual Customs entry and examination requirements. Unless the agency obtains an exemption (see 25.903 ), those shipments are also subject to duty.