Offsets
Industrial commitments a supplier accepts as a condition of a foreign customer’s purchase. Three pieces on what an offset is in regulation, how the United States treats the resulting costs, and what has to be reported and to whom.
Three pieces in this topic
What an offset is and who is party to it
The Commerce definition, direct against indirect, the sales that fall inside the regime, and the two agreements that run in parallel on a case.
02The United States position on offsets and cost recovery
The 1990 policy statement, full cost recovery on a cash or repayable case, no recovery on a grant financed one, and why indirect offset costs are deemed reasonable.
03Reporting offsets to the Bureau of Industry and Security
The $5 million agreement threshold and the $250,000 transaction threshold, the June filing date, what a prime reports for its subcontractors, and where the data goes.
Key terms in this topic
OffsetDirect offsetIndirect offsetMilitary export salesPrime contractorBISLOANonrepayable fundsDFARSIR&D and B&PAllocable costOffset agreementOffset transactionECCNNAICS
Other topics in controlling what transfers
- Technology Transfer and Export Control 5 pieces
- End Use Monitoring 5 pieces
- Excess Defense Articles 3 pieces
- Sensitive Systems and Export Compliance 3 pieces
- Classifying Defense Articles 3 pieces
- Commercial Export Licenses 3 pieces
- Defense Services Agreements 3 pieces
- Licensing Exemptions 3 pieces
- Brokering Controls 3 pieces
- Violations and Penalties 4 pieces
- Registration and Reporting 2 pieces
- Assistance Program Controls 2 pieces
- Munitions List: Weapons 6 pieces
- Munitions List: Platforms 4 pieces
- Munitions List: Electronics 5 pieces
- Munitions List: Training and Protection 3 pieces
- Release Gates for Sensitive Systems 2 pieces
- Country Policy and the Treaties 5 pieces
- Licenses From Application to Revocation 5 pieces
- ITAR Definitions and Technical Data 5 pieces
- Terrorism and Missile Controls 4 pieces
- Chemical, Biological and Nuclear Sanctions 3 pieces