Following the implementation of broad tariffs on imports into the United States in 2025, Duty-Free Entry has become increasingly significant as a tool for managing costs and ensuring program affordability.

On August 25, the U.S. Department of Defense (DoD) issued a memorandum to reaffirm and clarify its policy on duty-free entry (DFE) for qualifying imports. The memorandum directs contracting officers to include or modify existing contracts, the Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.225-7013 – Duty Free Entry. For Defense Contractors to stay competitive in this challenging landscape, they must harness every available tool to manage costs and overcome international trade hurdles.

When supporting DoD contracts, understanding the DFE process for the Defense Contract Management Agency (DCMA) is essential for contractors. Proper use of the DCMA DFE process can lead to significant cost savings, smoother customs clearance, and better contract compliance. At Expeditors, we are hearing from a growing number of customers who are unfamiliar with this process.  

What Is Duty-Free Entry?

DFE allows certain goods imported under U.S. Government contracts to enter the U.S. or host nations without paying customs duties. This exemption is governed by the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS), which outline when and how contractors can benefit.

Who Qualifies?

DFE typically applies to:

• Equipment, supplies, and materials required for contract performance

It does not cover items for resale or unrelated personal use.

Why It Matters

Using DFE correctly helps contractors:

• Avoid payment of import duties and fees
• Offer more competitive pricing
• Ensure timely delivery of mission-critical goods

Missteps can lead to customs delays and incur significant duties and fees.  

The DFE Certificate: Your Key to Entry

A DFE certificate is an official document issued by the U.S. Government (often via DCMA) that confirms a shipment qualifies for duty-free treatment. It’s required when importing contract-related goods into eligible countries or moving equipment across borders for DoD contracts.

How to Obtain a DFE Certificate

The process for obtaining a DFE Certificate involves multiple parties. In most cases, this includes the U.S. government contractor, contracting officer, customs broker, and DCMA. Procurement Integrated Enterprise Environment (PIEE) replaced the DFE eTool System in 2023 as the platform for requesting the Duty-Free Entitlement and creating the Duty-Free Certificate. 

In summary, DCMA Duty-Free Entry is a powerful tool for commercial contractors who move freight internationally under DoD contracts. Proper understanding, timely action, and rigorous compliance are essential for maximizing cost savings, avoiding legal complications, and supporting the broader defense mission. Contractors are strongly encouraged to:

• Familiarize themselves with the DFE provisions in their contracts and relevant agreements
• Engage early and regularly with DCMA, contracting officers, and embassy officials
• Invest in staff training and robust recordkeeping processes
• Stay updated on changes in host nation customs regulations and U.S. Government guidance
• Ensure their customs broker is familiar with PIEE and the DCMA DFE process, has experience requesting DFE certificates, and has access to the tools to track and monitor for the issuance of the DFE certificate within 6 months of arrival

By following these recommendations, commercial contractors can ensure seamless operations and contribute effectively to U.S. defense objectives worldwide.

Contractors who understand and properly apply the DFE process can streamline international logistics, reduce costs, and stay compliant with DoD regulations. It takes a knowledgeable customs broker, who is familiar with the process, to help you complete your Duty-Free Entry with DCMA and keep your business moving. Expeditors has extensive experience with this process and has been performing this work for many years.

Please reach out to us below to learn more about how we can help support your U.S. Government contract work.