Expeditors International of Washington(US:EXPD)2026-01-27 19:02Summary of Expeditors International of Washington Webinar on DCMA Duty-Free Entry Company and Industry Overview - Company: Expeditors International of Washington (NYSE: EXPD) - Industry: Logistics and Customs Brokerage, specifically focusing on government contracts and duty-free entry processes for the Department of Defense (DoD) Core Points and Arguments 1. Purpose of DCMA Duty-Free Entry: The DCMA Duty-Free Entry (DFE) allows certain goods imported under DoD contracts to enter the U.S. customs territory without paying customs duty, providing significant cost savings for contractors [15][16][17] 2. Regulatory Framework: The DFE is governed by the Federal Acquisition Regulations (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS), specifically clause 252.225-7013, which must be included in contracts to be eligible for duty-free entry [16][17] 3. Eligibility Criteria: Goods must not have the duty included in the contract price, and the estimated duty must exceed $300 per shipment to qualify for DFE [18][19] 4. Process Overview: The process involves submitting a duty-free entitlement request through the Procurement Integrated Enterprise Environment (PIEE), which must be approved by the contracting officer before the customs broker can request a DFE certificate [25][26][29] 5. Role of Agencies: The Defense Contract Management Agency (DCMA) administers DoD contracts and has a small team responsible for reviewing and approving DFE certificates, processing approximately 30,000 requests annually [22][23] 6. Documentation Requirements: Required documents include a commercial invoice, Customs Form 7501, and any other relevant customs forms, all of which must reference the DoD contract number [50][51] 7. Best Practices for Contractors: Contractors should ensure the DFARS clause is included in contracts, maintain accurate records, and communicate effectively with contracting officers and customs brokers to avoid delays [52][53][54] Additional Important Information 1. Impact of Tariff Increases: The recent tariff increases have prompted DoD contractors to seek opportunities to reduce costs through the DFE process [15] 2. Common Issues: Common reasons for entitlement request denials include incorrect contract values, expiration dates, and duplicate requests [33][34] 3. Communication with Subcontractors: Subcontractors must rely on prime contractors for the DFE process, as they do not have direct access to the PIEE platform [49] 4. Time Sensitivity: The DFE certificate must be uploaded to the Customs ACE Document Imaging System within six months of entry to avoid duties being assessed [24][46] 5. Training Resources: Training materials related to the DFE process are available on the PIEE platform, providing step-by-step guidance for contractors [85] This summary encapsulates the key points discussed during the webinar, focusing on the DCMA Duty-Free Entry process and its implications for contractors working with the DoD.