26 U.S.C. § 5000C Imposition of tax on certain foreign procurement
(a) Imposition of taxThere is hereby imposed on any foreign person that receives a specified Federal procurement payment a tax equal to 2 percent of the amount of such specified Federal procurement payment.
(b) Specified Federal procurement paymentFor purposes of this section, the term “specified Federal procurement payment” means any payment made pursuant to a contract with the Government of the United States for—(1) the provision of goods, if such goods are manufactured or produced in any country which is not a party to an international procurement agreement with the United States, or (2) the provision of services, if such services are provided in any country which is not a party to an international procurement agreement with the United States.
(c) Foreign personFor purposes of this section, the term “foreign person” means any person other than a United States person.
(d) Administrative provisions(1) WithholdingThe amount deducted and withheld under chapter 3 shall be increased by the amount of tax imposed by this section on such payment. (2) Other administrative provisionsFor purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.