Imposition of tax on certain foreign procurement
Imposition of tax
Specified Federal procurement payment
For purposes of this section, the term “specified Federal procurement payment” means any payment made pursuant to a contract with the Government of the United States for—
the provision of goods, if such goods are manufactured or produced in any country which is not a party to an international procurement agreement with the United States, or
the provision of services, if such services are provided in any country which is not a party to an international procurement agreement with the United States.
Foreign person
Administrative provisions
Withholding
Other administrative provisions
Notes
Effective Date
Prohibition on Reimbursement of Fees
In general.—
The head of each executive agency shall take any and all measures necessary to ensure that no funds are disbursed to any foreign contractor in order to reimburse the tax imposed under section 5000C of the Internal Revenue Code of 1986.
Annual review.—
The Administrator for Federal Procurement Policy shall annually review the contracting activities of each executive agency to monitor compliance with the requirements of paragraph (1).
Executive agency.—
For purposes of this subsection, the term ‘executive agency’ has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 403) [see 41 U.S.C. 133].”