Effective immediately, contracting officers shall not authorize use of the Governmentwide Commercial Purchase Card (GPC) as a method of purchase or payment against a contract that contains Federal Acquisition Regulation (FAR) clause 52.229-12, Tax on Certain Foreign Procurements.
FAR clause 52.229-12 requires the Government to withhold an excise tax on payments under certain foreign procurements to comply with 26 U.S.C. 5000C. The GPC does not provide a method for the Government to accomplish this withholding, because payments are electronically transmitted to the contractor by the issuing bank upon authorization of the GPC transaction; the Government’s payment goes to the issuing bank. Therefore, contracting officers cannot use the GPC to place a task order or delivery order or to make a payment against a contract that is subject to the withholding required by FAR clause 52.229-12.
This class deviation remains in effect until it is incorporated into the DFARS, or otherwise rescinded.
|Effective Date:||November 5, 2021 (a month ago)|
|Expire Date:||None Given|