Offsets in Defense Trade

Impact of Offsets in Defense Trade

The Bureau of Industry and Security (BIS) prepares an annual report to Congress on the impact of offsets in defense trade pursuant to Section 723 of the Defense Production Act of 1950, as amended.

Offsets in defense trade encompass a range of industrial compensation arrangements required by foreign governments as a condition of the purchase of defense articles and services from a non-domestic source.

BIS collects data annually from U.S. firms involved in defense exports with associated offset agreements in order to assess the impact of offsets in defense trade. BIS updated the Reporting of Offsets Agreements in Sales of Weapon Systems or Defense-Related Items to Foreign Countries or Foreign Firms regulation (15 CFR Part 701) in 2009.

BIS also participates in an interagency team established to consult with foreign nations on limiting the adverse effects of offsets in defense procurement.

This Web site includes a wide range of offsets in defense trade resources, including the Offset Reporting regulations, recommended format for reporting offset activities, frequently asked questions on offsets, and copies of recent reports to Congress and the Presidential Policy on Offsets.

For other resources, see below:

Final Rule on Reporting Offset Agreements, 12/09

Offsets Reporting Requirement for Calendar Year 2011

Recommended Format for Reporting Offset Activities

Offset Definitions

Guidance for Reporting on Offset Agreements

Offsets in Defense Trade: FAQs

Changes in Offset Reporting Regulations -- Feb. 3rd Presentation

Sixteenth Report to Congress, 1/12

Fifteenth Report to Congress, 1/11

Fourteenth Report to Congress, 1/10

Thirteenth Report to Congress, 12/08