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Clauses · DFARS · Supply chain and sourcing

DFARS 252.225-7033 Waiver of United Kingdom Levies

Does the regulation require it to flow down?

Yes

(d): 'in any subcontract for supplies where a lower-tier subcontract exceeding $1 million with a U.K. firm is anticipated' — conditional flow-down, not universal

Form
substance, including paragraph (d) itself
Reaches
all tiers where the condition persists

Checked against acquisition.gov on 2026-08-04 · edition APR 2003 · base v0.9.3 Read the text ↗

What it makes you produce

One item for your checklist.

  1. Something you write

    Days to weeks, and nobody outside your company has to agree to it.

    • A written package to the contracting officer naming the firm, the prime contract number, the item, the quantity, and the levy with its associated costs

      Owed when a subcontract over $1 million with a UK firm is about to be awarded

      DFARS 252.225-7033(b)

When it is used

At the prime: solicitations and contracts where an offer from a UK firm, or a subcontract above $1 million with a UK firm, is expected (225.1101(8)). For the sub: it flows down when a lower-tier subcontract above $1 million with a UK firm is anticipated in your chain — if you don't buy from the UK at that scale, it stays dormant.

Read closely

the Government then tries to obtain a waiver of the commercial exploitation levy, and where it succeeds it reserves the right to reduce the price by the levy plus indirects plus profit. (d) carries the clause on only where a lower-tier subcontract over $1 million with a UK firm is anticipated, so this is a conditional flow-down rather than a universal one.

The 12 templates that name it, with the line
143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 401155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 436233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 149860Raytheon TC-003 — Supplement 2: Government Contract Provisions from the DFARSRTXline 217166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2479166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2416168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2507255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1290243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2264240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2433273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 1174178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1041

Source: acquisition.gov, DFARS 252.225-7033 and 225.1101(8) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.