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Prohibition on Taxation of U.S. Assistance

FMS: 
Yes
BPC: 
No
Note Input Responsibility: 
CWD
Note Usage: 

Effective January 1, 2011, may no longer be used on FMS LOAs as note wording has been incorporated into the Standard Terms and Conditions.

Mandatory for Amendments and Modifications to FMS LOAs (to include LOAs) with a CWD Approval Date prior to January 1, 2011, that add articles and services (including OCONUS training) (excluding Coalition Support Funded and Repair and Return cases) to a case financed with any type of U.S. Assistance Funds appropriated under the Foreign Operations, Export Financing, and Related Programs Appropriations Act (e.g., FMF, INCLE, PKO, Grant EDA, Coalition Solidarity Fund, etc.).

Note Text : 

"Any articles, equipment, materials, supplies, goods, or other commodities purchased with U.S. Assistance Funds appropriated and allocated pursuant to the Foreign Operations, Export Financing, and Related Programs Appropriations Act in support of this Letter of Offer and Acceptance (LOA), whether provided directly by the U.S. Government or through procurement contracts or otherwise in support of this LOA, must be exempt from all value added taxes and customs duties imposed by the recipient country or the full amount of the tax or customs duty must be reimbursed by the purchaser. This exemption is in addition to any other tax exemption provided by the purchaser through separate agreements or other means."