FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: September 4, 2002

SUBJECT: Federal Management Regulation (FMR); Revised "Minimal Value" for Foreign Gifts

SOURCE: Federal Register, September 4, 2002, Vol. 67, No. 171, page 56495

AGENCIES: Office of Governmentwide Policy, General Services Administration (GSA)

ACTION: Final Rule

SYNOPSIS: GSA is amending FMR 102-42.10, What definitions apply to this part?, to increase the minimal value threshold for reporting foreign gifts and decorations from $260 to $285, as required by Public Law 95-105, the Foreign Relations Authorization Act for Fiscal Year 1978, which requires that the "minimal value" for this purpose be redefined at three-year intervals by the Administrator of General Services, after consultation with the Secretary of State, to reflect changes in the Consumer Price Index. The required consultation has been completed and the minimal value has been increased to mean $285 or less as of January 1, 2002. In addition, this final rule amends FMR 102-42.140, How is a sale of a foreign gift or decoration to an employee conducted?, to remove the requirement to include the cost of the appraisal in the sale price. The sale price is now derived from the commercially appraised value only.

EDITOR'S NOTE: The FMR is Chapter 102 of Title 41 of the Code of Federal Regulations (CFR). The FMR part being revised is FMR Part 102-42, Utilization, Donation, and Disposal of Foreign Gifts and Decorations. The FMR is available at http://policyworks.gov/org/main/mv/fmr/index.htm.

EFFECTIVE DATE: January 1, 2002.

FOR FURTHER INFORMATION CONTACT: Robert Holcombe, Director, Personal Property Management Policy Division, General Services Administration, 202-501-3846.

SUPPLEMENTAL INFORMATION: FMR 102-42.10 exempts from reporting any gifts and decorations below the "minimal value", or gifts and decorations above the "minimal value" retained by the employing agency for official use. Public Law 95-105 contained a requirement that the "minimum value" be revised every three-years, beginning January 1, 1981, to reflect changes in the Consumer Price Index. This final rule increases the "minimum value" last set in 1999 from $260 to $285.

In addition, FMR 102-42.140 How is a sale of a foreign gift or decoration to an employee conducted?, had stated that “the sale price must be the commercially appraised value of the gift plus the cost of the appraisal.” This final rule removes the words “ plus the cost of the appraisal”, so now it merely states that "the sale price must be the commercially appraised value of the gift."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.