[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR29.202]



[Page 569]

 

            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]