[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR29.202]

[Page 551]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 29_TAXES--Table of Contents
 
                    Subpart 29.2_Federal Excise Taxes
 
Sec.  29.202  General exemptions.

    No Federal manufacturers' or special-fuels excise taxes are imposed 
in many contracting situations as, for example, when the supplies are 
for any of the following:
    (a) The exclusive use of any State or political subdivision, 
including the District of Columbia (26 U.S.C. 4041 and 4221).
    (b) Shipment for export to a foreign country or an outlying area of 
the United States. Shipment must occur within 6 months of the time title 
passes to the Government. When the exemption is claimed, the words ``for 
export'' must appear on the contract or purchase document, and the 
contracting officer must furnish the seller proof of export (see 26 CFR 
48.4221-3).
    (c) Further manufacture, or resale for further manufacture (this 
exemption does not include tires and inner tubes) (26 CFR 48.4221-2).
    (d) Use as fuel supplies, ships or sea stores, or legitimate 
equipment on vessels of war, including (1) aircraft owned by the United 
States and constituting a part of the armed forces and (2) guided 
missiles and pilotless aircraft owned or chartered by the United States. 
When this exemption is to be claimed, the purchase should be made on a 
tax-exclusive basis. The contracting officer shall furnish the seller an 
exemption certificate for Supplies for Vessels of War (an example is 
given in 26 CFR 48.4221-4(d)(2); the IRS will accept one certificate 
covering all orders under a single contract for a specified period of up 
to 12 calendar quarters) (26 U.S.C. 4041 and 4221).
    (e) A nonprofit educational organization (26 U.S.C. 4041 and 4221).
    (f) Emergency vehicles (26 U.S.C. 4053 and 4064(b)(1)(c)).

[48 FR 42293, Sept. 19, 1983, as amended at 53 FR 662, Jan. 11, 1988; 68 
FR 28083, May 22, 2003]