[Federal Register Volume 75, Number 53 (Friday, March 19, 2010)]
[Notices]
[Page 13262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-6079]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Reporting on Offsets Agreements in Sales of Weapon Systems or 
Defense-Related Items to Foreign Countries or Foreign Firms for 
Calendar Year 2009

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Notice.

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SUMMARY: This notice is to remind the public that U.S. firms are 
required to report annually to the Department of Commerce (Commerce) on 
contracts for the sale of defense-related items or defense-related 
services to foreign countries or foreign firms that are subject to 
offsets agreements exceeding $5,000,000 in value. U.S. firms are also 
required to report annually to Commerce on offsets transactions 
completed in performance of existing offsets commitments for which 
offsets credit of $250,000 or more has been claimed from the foreign 
representative. Such reports must be submitted to Commerce no later 
than June 15, 2010.

ADDRESSES: Reports should be addressed to ``Offsets Program Manager, 
U.S. Department of Commerce, Office of Strategic Industries and 
Economic Security, Bureau of Industry and Security, Room 3878, 
Washington, DC 20230.''

FOR FURTHER INFORMATION CONTACT: Ronald DeMarines, Office of Strategic 
Industries and Economic Security, Bureau of Industry and Security, U.S. 
Department of Commerce, telephone: 202-482-3755; fax: 202-482-5650; e-
mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In 1984, the Congress enacted amendments to the Defense Production 
Act (DPA), including the addition of section 309, which addresses 
offsets in defense trade (See 50 U.S.C. app. Sec.  2099). Offsets are 
compensation practices required as a condition of purchase in either 
government-to-government or commercial sales of defense articles and/or 
defense services, as defined by the Arms Export Control Act and the 
International Traffic in Arms Regulations.
    Section 309(a)(1) requires the President to submit an annual report 
to the Congress on the impact of offsets on the U.S. defense industrial 
base. In 1992, section 309 was amended to direct the Secretary of 
Commerce (Secretary) to function as the President's executive agent for 
carrying out the responsibilities set forth in that section. 
Specifically, section 309 authorizes the Secretary to develop and 
administer the regulations necessary to collect offsets data from U.S. 
defense exporters.
    The authorities of the Secretary regarding offsets have been 
redelegated to the Under Secretary of the Bureau of Industry and 
Security (BIS). The regulations associated with offsets reporting are 
set forth in Part 701 of title 15 of the Code of Federal Regulations. 
The offsets regulations of Part 701 set forth the obligations of U.S. 
industry to report to BIS, no later than June 15 of each year, offsets 
agreement and transaction data for the previous calendar year.
    As described in section 701.1 of the regulations, U.S. firms are 
required to report on contracts for the sale of defense-related items 
or defense-related services to foreign countries or foreign firms that 
are subject to offsets agreements exceeding $5,000,000 in value. U.S. 
firms are also required to report annually on offsets transactions 
completed in performance of existing offsets commitments for which 
offsets credit of $250,000 or more has been claimed from the foreign 
representative. The required data elements and filing procedures for 
such reports are outlined in section 701.4 of title 15, Code of Federal 
Regulations. Please note that on December 23, 2009, BIS published a 
final rule to amend Part 701 (74 FR 68136). Companies are required to 
incorporate the changes made to the required data elements by this 
final rule in their submissions to BIS this year.
    The Department's annual report to Congress includes an aggregated 
summary of the data reported by industry in accordance with the offsets 
regulation and the DPA. As provided by section 309(c) of the DPA, BIS 
will not publicly disclose the information it receives through offsets 
reporting unless the firm furnishing the information specifically 
authorizes public disclosure. The information collected is sorted and 
organized into an aggregate report of national offsets data, and 
therefore does not identify company-specific information.
    Required information must be submitted to BIS no later than June 
15, 2010.

    Dated: March 15, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-6079 Filed 3-18-10; 8:45 am]
BILLING CODE 3510-JT-P