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BK Bh B B B B܉ B B B3 BP Bm B B BĊ B B B B8 BU Br B B Bɋ B B B  B= BZ Bw B B BΌ B B B% BB B_ B| B B BӍ B B  B* BG Bd B B B B؎ B B B/ BL Bi B B B Bݏ B B B4 BQ Bn B B BŐ B B B B9 BV Bs B B Bʑ B B B! B> B[ Bx B B Bϒ B B  B& BC B` B} B B Bԓ B B B+ BH Be B B B Bٔ B B B0 BM Bj B B B Bޕ B B B5 BR Bo B B BƖ B B B B: BW Bt B B B˗ B B B" B? B\ By B B BИ B B  B' BD Ba B~ B B Bՙ B B B, BI Bf B B B Bښ B B B1 BN Bk B B B› Bߛ B B B6 BS Bp B B Bǜ B B B B; BX Bu B B B̝ B B B# B@ B] Bz B B Bў B B  B( BE Bb B B B B֟ B B B- BJ Bg B B B B۠ B B B2 BO Bl B B Bá B B B B7 BT Bq B B BȢ B B B B< BY Bv B B Bͣ B B B$ BA B^ B{ B B BҤ B B  B) BF Bc B B B Bץ B B B. BK Bh B B B Bܦ B B B3 BP Bm B B Bħ B B B B8 BU Br B B Bɨ B B B  B= BZ Bw B B BΩ B B B% BB B_ B| B B BӪ B B  B* BG Bd B B B Bث B B B/ BL Bi B B 0fЬ#6(N^ ! 1u- 72wԯ4د m\  `*Times New RomanTT\  `*Times New RomanTTC\  P6QP\  `*Times New RomanTTXXP\  P6QXP)^A`ArialTTomanTT&&Y^P-0Q&P\  `*Times New RomanTT\  P6QP\  `*Times New RomanTT^\  P6QP<6X9`("Courier NewTTTTd6X@DQ@%2A`ArialTTomanTTXXX2PQXP)^A`ArialTTomanTTXXa^P-0QXP\  `*Times New RomanTTxx\  P6QxP<6X9`("Courier NewTTTTXXx6X@DQX@\  `*Times New RomanTT\  P6QP\  `*Times New RomanTTW\  P6QP\  `*Times New RomanTT6\  P6QP\  `*Times New RomanTT&&J\  P6Q&P)^A`ArialTTomanTT  U^P-0Q P' $Offset Report Template 2 0Sebastian G. Wright0WSargent .   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d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d3|x (>m-$XXXXXXAcrobat Distiller,,,,0!r[0s 3#37=CIQYag1.a.i.(1)(a)(i)1)a)Y i)W0U T m-!Xx<XXx<XXXx<  _& x   DXXx<DD       DAppendixB:DepartmentofCommerceRegulations#D#  DRegardingReportingofOffsetActivity#D#   'xy < &  iT     Xx<XDXx<XXXx<'(.       $ (#X$      H.` hp x (# (#H(X(#(#([FederalRegister:December2,1994]        XX    33XXx<Ԅ H   DEPARTMENTOFCOMMERCE  _ BureauofExportAdministration  & 15CFRPart701    [DocketNo.9403644064] d   OffsetsinMilitaryExports +{  AGENCY: BureauofExportAdministration, B  DepartmentofCommerce.    ACTION: Finalrule.   Є SUMMARY: TheBureauofExportAdministration ^  (BXA)isamendingtheNationalSecurityIndustrial % BaseRegulationstorequireU.S.firmsenteringinto  offsetagreementsassociatedwiththesaleofdefense c articlesand/ordefenseservicestoforeign *z governmentsorforeigncompaniestoprovideBXA A certaininformationregardingthoseagreementswhen  theyexceed$5,000,000invalue.Thisnewregulation  isbeingpromulgatedpursuanttotheDefense F ProductionActof1950,asamended.  ]  DATES: ThisruleiseffectiveDecember2,1994.  AnnualreportsmustbesubmittedonorbeforeJune b 15ofthesucceedingyear,exceptthatthereportfor )y calendaryear1993mustbesubmittedonorbefore @ March15,1995.   ADDRESSES: AnnualreportsshouldbesenttoBrad E! Botwin,Director,StrategicAnalysisDivision,Office  \" ofStrategicIndustriesandEconomicSecurity,  ## Attention:OffsetRegulationReport,Room3878, !$ U.S.DepartmentofCommerce,14thStreetand a"% PennsylvaniaAvenueN.W.,Washington,DC20230. (#x&  FORFURTHERINFORMATIONCONTACT:  $ ( ErinFinn,OffsetsProgramManager,Strategic }% ) AnalysisDivision,OfficeofStrategicIndustriesand D&!* EconomicSecurity,Room3878,U.S.Departmentof  '["+ Commerce,14thStreetandPennsylvaniaAvenue '"#, N.W.,Washington,DC20230.Telephone202482 (#- 2322orFax2024825650. `)$.         SUPPLEMENTARYINFORMATION: .           BACKGROUND:TheDefenseProductionAct  / Amendmentsof1992amendedtheDefense F 0 ProductionActof1950(theAct).TheActnow  ]1 requiresthatU.S.firmsenteringintocontractsforthe  $2 saleofdefensearticlesordefenseservicestoforeign  3 countriesorforeignfirmsthataresubjecttooffset b 4 agreementsexceeding$5,000,000invaluetofurnish )y 5 informationregardingsuchsalestotheSecretaryof @ 6 Commerce(theSecretary).TheActalsonowrequires  7 theSecretarytoestablishregulationstocollectthis ~ 8 informationandtoprotectitfrompublicdisclosure E 9 unlesspublicdisclosureisspecificallyauthorizedby  \ : thefirmfurnishingtheinformation.TheActfurther #; requirestheSecretarytoserveasthePresident's < executiveagentinpreparinganannualreportto a= CongressontheimpactofoffsetsontheUnited (x> States. ?? ЀThisreportwillincludeanaggregatedsummaryof @ informationprovidedtotheSecretarybyU.S. }A industrypursuanttotheregulationprovidedhere.It DB willaddresstheimpactofoffsetsonthedefense  [C preparedness,industrialcompetitiveness, "D employment,andtradeoftheUnitedStates. E   H comments,suggestions,information,oradvice I relativetotheproposedregulation.20responseswere |J receivedcommentingontheproposedrule.Thetwo CK majorcommentsconcernedtherequirementsto  ZL submitsemiannualreportsandtoreporteach  !M individualtransactionundertakentofulfillanoffset !N commitment.Therulehasbeenamendedtoaddress _"O theseconcerns. &#vP 33 RulemakingRequirements  $6 S 33Ӏ1.Thisrulehasbeendeterminedtobe %/!U  significant'forpurposesofExecutiveOrder12866. &!V         ݀2.Thisruleinvolvescollectionsofinformation m'"W subjecttothePaperworkReductionActof1980(44 4(#X U.S.C.3501etseq.).Thesecollectionshavebeen (K$Y approvedbytheOfficeofManagementandBudget )%Z undercontrolnumber9403644212.Publicreporting *%[ burdenforthiscollectionofinformationisestimated P+&\ tobe5to60hoursperresponse,withanaverageof ,g'] 10hours,includingtimeforreviewinginstructions, ,.(^ searchingexistingdatasources,gatheringand -(_ maintainingthedataneeded,andcompletingand  reviewingthecollectionofinformation. w Ѐ3.Thisruledoesnotcontainpolicieswith > Federalismimplicationssufficienttowarrant U preparationofaFederalismassessmentunder  ExecutiveOrder12612.  Ѐ4.TheGeneralCounseloftheDepartmentof Z  CommercehascertifiedtotheChiefCounselfor ! q AdvocacyoftheSmallBusinessAdministrationthat  8 thisrulewillnothaveasignificanteconomicimpact    onasubstantialnumberofsmallentities.Itis v   anticipatedthattherulewillprimarilyaffectlarge =   defensecontractorsthatengageinoffsetagreements T  withforeigngovernments.Moreover,theruleisnot   expectedtoposeaburdenbecausefirmsengagingin   offsettransactionsalreadymustprepareperiodic Y  accountsofprogresstowardfulfillmentofoffset  p  obligationsfortheforeignentitythatispartytothe 7  offsetagreement.Theinformationtobecollected   pursuanttotheseregulationsislessthanthatrequired u bytheseforeignparties.With < regardtonewoffsetagreementsenteredinto,the S informationrequestedisreadilyavailableandwill  takeaminimumamountoftimetoassemblebythe  partiesinvolved. X    &%&d %%&      33ListofSubjectsin15CFRPart701 6 "sno    da  %&d da    33ӀAdministrationpracticeandprocedure,Armsand  munitions,Exports,Offsets,Reportingrequirements. d ЀAccordingly,theNationalSecurityIndustrialBase +{ Regulations(15CFRparts700709)areamendedby B addingpart701toreadasfollows:    PART701REPORTINGOFOFFSETS G! AGREEMENTSINSALESOFWEAPON ^" SYSTEMSORDEFENSERELATEDITEMSTO %# FOREIGNCOUNTRIESORFOREIGNFIRMS   $ Sec. *"z& 701.1Purpose. "A' 701.2Definitions. #( 701.3ApplicabilityandScope. $) 701.4Procedures. F% * 701.5Confidentiality.  &]!+ Ѐ Authority: TitleI,sec.124,Pub.L102558,106 &$", Stat.4207(50U.S.CApp.2099). '"-  Sec.701.1Purpose.  ))y$/ ЀTheDefenseProductionActAmendmentsof1992 )@%0 requiretheSecretaryofCommercetopromulgate *&1 regulationsforU.S.firmsenteringintocontractsfor ~+&2 thesaleofdefensearticlesordefenseservicesto E,'3 foreigncountriesorforeignfirmsthataresubjectto  -\(4 offsetagreementsexceeding$5,000,000invalueto -#)5 furnishinformationregardingsuchagreements.The 5 SecretaryofCommercehasdesignatedtheBureauof w6 ExportAdministrationastheorganizationresponsible >7 forimplementingthisprovision.Theinformation U8 providedbyU.S.firms 9 willbeaggregatedandusedtodeterminetheimpact : ofoffsettransactionsonthedefensepreparedness, Z ; industrialcompetitiveness,employment,andtradeof ! q< theUnitedStates.Summaryreportswillbesubmitted  8= annuallytotheCongresspursuantSection309ofthe  > DefenseProductionActof1950,asamended. v ?  Sec.701.2Definitions.  T A Ѐ(a)OffsetsCompensationpracticesrequiredasa  B conditionofpurchaseineithergovernmentto  C governmentorcommercialsalesofdefensearticles Y D and/ordefenseservicesasdefinedbytheArms  p E ExportControlActandtheInternationalTrafficin 7 F ArmsRegulations.  G Ѐ(b)MilitaryExportSalesExportsthatareeither uH ForeignMilitarySales(FMS)orcommercial(direct) <I salesofdefensearticlesand/ordefenseservicesas SJ definedbytheArmsExportControlActand K InternationalTrafficinArmsRegulations. L Ѐ(c)PrimeContractorAfirmthathasasales XM contractwithaforeignentityorwiththeU.S. oN Governmentformilitaryexportsales. 6O Ѐ(d)UnitedStatesIncludesthe50states,the P DistrictofColumbia,PuertoRico,andU.S. tQ territories. ;R Ѐ(e)OffsetAgreementAnyoffsetasdefinedabove RS thattheU.S.firmagreestoinordertoconcludea T militaryexportsalescontract.Thisincludesall U offsets,whethertheyare``besteffort''agreementsor WV aresubjecttopenaltyclauses. nW Ѐ(f)OffsetTransactionAnyactivityforwhichthe 5X U.S.firmclaimscreditforfullorpartialfulfillmentof  Y theoffsetagreement.Activitiestoimplementoffset s!Z agreementsmayinclude,butarenotlimitedto,co :"[ production,licensedproduction,subcontractor #Q\ production,overseasinvestment,technologytransfer #] countertrade,barter,counterpurchase,andbuyback. $^ Ѐ(g)DirectOffsetContractualarrangementsthat V% _ involvedefensearticlesandservicesreferencedinthe &m!` salesagreementformilitaryexports. &4"a Ѐ(h)IndirectOffsetContractualarrangementsthat '"b involvedefensegoodsandservicesunrelatedtothe r(#c exportsreferencedinthesalesagreement. 9)$d  Sec.701.3Applicabilityandscope.  *&f Ѐ(a)ThisruleappliestoU.S.firmsentering +&g contractsforthesaleofdefensearticlesordefense U,'h services(asdefinedintheArmsExportControlAct -l(i andInternationalTrafficinArmsRegulations)toa -3)j foreigncountryorforeignfirmforwhichthecontract  issubjecttoanoffset w agreementexceeding$5,000,000invalue. > Ѐ(b)Thisruleappliestoalloffsettransactions U completedinperformanceofexistingoffset  commitmentssinceJanuary1,1993forwhichoffset  creditof$250,000ormorehasbeenclaimedfromthe Z  foreignrepresentative,andnewoffsetagreements ! q enteredintosince  8 thattime.     Sec.701.4Procedures.  =   Ѐ(a)Toavoiddoublecounting,firmsshouldreport T  onlyoffsettransactionsforwhichtheyaredirectly   responsibleforreportingtotheforeigncustomer(i.e.,   primecontractorsshouldreportfortheir Y  subcontractorsifthesubcontractorsarenotadirect  p  partytotheoffsetagreement). 7  Ѐ(b)ReportsshouldbedeliveredtotheOffsets   ProgramManager,U.S.DepartmentofCommerce, u OfficeofStrategicIndustriesandEconomicSecurity, < BureauofExportAdministration,Room3878,14th S StreetandPennsylvaniaAvenue,N.W.,Washington  DC20230.Thefirstindustryreportsshouldbe  submittedtotheBureauofExportAdministrationnot X laterthanMarch15,1995andshouldcoveroffset o transactionscompletedduringthecalendaryear1993, 6 aswellasinformationregardingunfulfilledoffset  agreements.Afterthisinitial t submission,companiesshouldprovideinformation ; onceyearlynotlaterthanJune15coveringthe R precedingcalendaryear.Allsubmissionsshould  includeapointofcontact(nameandtelephone   number)andshouldbebyacompanyofficial W! authorizedtoprovidesuchinformation. n" Ѐ(c)Companiesmaysubmitthisinformationin 5# computerizedspreadsheet/databaseformat(e.g.,  $ Lotus123,QuattroPro,dbaseIV)usinga3.5inch s!% 1.44megabytediskette,accompaniedbyaprinted :"& copy. #Q' Ѐ(d)OffsetTransactionReporting. #( Ѐ(1)Reportsshouldincludeanitemizedlistofoffset $) transactionscompletedduringthereportingperiod, V% * includingthefollowingdataelements(Estimatesare &m!+ acceptablewhenactualfiguresareunavailable; &4", estimatedfiguresshouldbefollowedbytheletter '"- ``E''): r(#. Ѐ(i)NameofCountryCountryofentitypurchasing 9)$/ theweaponsystem,defenseitemorservicesubjectto *P%0 offset. *&1 Ѐ(ii)NameorDescriptionofWeaponsystem, +&2 DefenseItem,orServiceSubjecttoOffset. U,'3 Ѐ(iii)NameofOffsetFulfillingEntityEntity -l(4 fulfillingoffsettransaction(includingfirsttier -3)5 subcontractors). 5 Ѐ(iv)NameofOffsetReceivingEntityEntity w6 receivingbenefitsfromoffsettransaction. >7 Ѐ(v)OffsetCreditValueDollarvaluecredits U8 claimedbyfulfillingentityincludinganyintangible 9 factors/multipliers. : Ѐ(vi)ActualOffsetValueDollarvalueoftheoffset Z ; transactionwithoutmultipliers/intangiblefactors. ! q< (vii)DescriptionofOffsetProduct/ServiceShort  8= descriptionofthetypeofoffset(e.g.,coproduction,  > technologytransfer,subcontractactivity,training, v ? purchase,cashpayment,etc.). = @ Ѐ(viii)BroadIndustryCategoryBroad T A classificationoftheindustryinwhichtheoffset  B transactionwasfulfilled(e.g.,aerospace,electronics,  C chemicals,industrialmachinery,textiles, Y D etc.).FirmsmayrequestalistoftheStandard  p E IndustryClassification(SIC)codestoassistin 7 F identifyinganappropriateindustrycategory.Forward  G suchrequeststotheOffsetsProgramManager,U.S. uH DepartmentofCommerce,OfficeofStrategic <I IndustriesandEconomicSecurity,BureauofExport SJ Administration,Room3878,14thStreetand K PennsylvaniaAvenue,N.W.,Washington,D.C. L 20230orFax2024825650. XM Ѐ(ix)DirectorIndirectOffsetSpecifywhetherthe oN offsettransactionwasdirectorindirectoffset. 6O Ѐ(x)NameofCountryinWhichOffsetwas P FulfilledUnitedStates,purchasingcountry,orthird tQ country. ;R Ѐ(2)Offsettransactionsofthesametype(same RS fulfillingentity,receivingentity,andoffset T product/service)completedduringthesamereporting U periodmaybecombined. WV Ѐ(3)Anynecessarycommentsorexplanations nW relatingtotheaboveinformationshouldbefootnoted 5X andsuppliedonseparatesheetsattachedtothereport.  Y     Sec.701.5Confidentiality.   Ѐ(a)AsprovidedbySec.309(c)oftheDefense  ProductionActof1950,asamended,BXAshallnot Z  publiclydisclosetheinformationitreceivespursuant ! q tothisPart,unlessthefirmfurnishingtheinformation  8 subsequentlyspecificallyauthorizespublic    disclosure. v   ̀(b)Publicdisclosuremustbeauthorizedinwriting w  byanofficialofthefirmcompetenttomakesuchan >  authorization. U  Ѐ(c)Nothinginthisprovisionshallpreventtheuse  ofdataaggregatedfrominformationprovided  pursuanttothispartinthesummaryreporttothe Z  CongressdescribedinSec.701.1. ! q   Dated:November28,1994.     SueE.Eckert,  =  AssistantSecretaryforExportAdministration. T  [FRDoc.9429645Filed12194;8:45am]   BILLINGCODE3510DTP    p      x   Y  (X(Xx<X33&    &%XXx<&d %%&        & A   &d % %&d&d % %&d        & A   &d % %&d&d % %&d        & A   &d % %&d&d % %&d        & A   &d % %&d&d % %&d             a\T