BIS Reminds Trade that Certain Annual Offsets Reports Are Due June 15, 2008
The Bureau of Industry and Security has issued a reminder of the obligations of U.S. industry to report to the BIS, no later than June 15th of each year, offsets agreement and transaction data for the previous calendar year.
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(Offsets are compensation practices required as a condition of purchase in either government-to-government or commercial sales of defense articles and/or services, as defined by the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR).)
Firms Must Report on Contracts Subject to Offsets Agreements Over $5 Million
As described in the offsets regulations under 15 CFR 701.1, U.S. firms are required to report annually 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.
Firms Must Also Report on Certain Offsets Transactions Completed
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.
(BIS notes that the required data elements and filing procedures for such reports are outlined in 15 CFR 701.4.)
Commerce Will Include Aggregate Offsets Data in Annual Report to Congress
BIS states that the Commerce Department's annual report to Congress includes an aggregated summary of the data reported by industry. (BIS notes that the information collected is sorted and organized into an aggregate report of national offsets data, and therefore does not identify company specific information.)
BIS contact - Ronald DeMarines (202) 482-3755
BIS notice (D/N 080512652-8653-01, FR Pub 05/20/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-11208.pdf