15 C.F.R. § 701.4 Procedures.
Title 15 - Commerce and Foreign Trade
(a) To avoid double counting, firms should report only offset transactions for which they are directly responsible for reporting to the foreign customer (i.e., prime contractors should report for their subcontractors if the subcontractors are not a direct party to the offset agreement). (b) Reports should be delivered to the Offsets Program Manager, U.S. Department of Commerce, Office of Strategic Industries and Economic Security, Bureau of Industry and Security, Room 3878, 14th Street and Pennsylvania Avenue, N.W., Washington DC 20230. The first industry reports should be submitted to the Bureau of Industry and Security not later than March 15, 1995 and should cover offset transactions completed during the calendar year 1993, as well as information regarding unfulfilled offset agreements. After this initial submission, companies should provide information once yearly not later than June 15 covering the preceding calendar year. All submissions should include a point of contact (name and telephone number) and should be by a company official authorized to provide such information. (c) Companies may submit this information in computerized spreadsheet/database format (e.g., Lotus 1–2–3, Quattro Pro, dbase IV) using a 3.5 inch 1.44 megabyte diskette, accompanied by a printed copy. (d) Offset Transaction Reporting. (1) Reports should include an itemized list of offset transactions completed during the reporting period, including the following data elements (Estimates are acceptable when actual figures are unavailable; estimated figures should be followed by the letter “E”): (i) Name of Country—Country of entity purchasing the weapon system, defense item or service subject to offset. (ii) Name or Description of Weapon system, Defense Item, or Service Subject to Offset. (iii) Name of Offset Fulfilling Entity—Entity fulfilling offset transaction (including first tier subcontractors). (iv) Name of Offset Receiving Entity—Entity receiving benefits from offset transaction. (v) Offset Credit Value—Dollar value credits claimed by fulfilling entity including any intangible factors/multipliers. (vi) Actual Offset Value—Dollar value of the offset transaction without multipliers/intangible factors. (vii) Description of Offset Product/Service—Short description of the type of offset (e.g., coproduction, technology transfer, subcontract activity, training, purchase, cash payment, etc.). (viii) Broad Industry Category—Broad classification of the industry in which the offset transaction was fulfilled (e.g., aerospace, electronics, chemicals, industrial machinery, textiles, etc.). Firms may request a list of the Standard Industry Classification (SIC) codes to assist in identifying an appropriate industry category. Forward such requests to the Offsets Program Manager, U.S. Department of Commerce, Office of Strategic Industries and Economic Security, Bureau of Industry and Security, Room 3878, 14th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20230 or Fax 202–482–5650. (ix) Direct or Indirect Offset—Specify whether the offset transaction was direct or indirect offset. (x) Name of Country in Which Offset was Fulfilled—United States, purchasing country, or third country. (2) Offset transactions of the same type (same fulfilling entity, receiving entity, and offset product/service) completed during the same reporting period may be combined. (3) Any necessary comments or explanations relating to the above information should be footnoted and supplied on separate sheets attached to the report. (e) Reporting on Offset Agreements Entered Into. (1) In addition to the itemized list of offset transactions completed during the year as specified above, U.S. firms should provide information regarding new offset agreements entered into during the year, including the following elements: (i) Name of Country—Country of entity purchasing the weapon system, defense item, or service subject to offset; (ii) Name or Description of Weapon System, Defense Item, or Service Subject to Offset; (iii) Names/Titles of Signatories to the Offset Agreement; (iv) Value of Export Sale Subject to Offset (approximate); (v) Total Value of the Offset Agreement; (vi) Term of Offset Agreement (months); (vii) Description of Performance Measures—(e.g., “Best Efforts,” Liquidated Damages, (describe)). (2) [Reserved]
Title 15: Commerce and Foreign Trade
PART 701—REPORTING OF OFFSETS AGREEMENTS IN SALES OF WEAPON SYSTEMS OR DEFENSE-RELATED ITEMS TO FOREIGN COUNTRIES OR FOREIGN FIRMS
§ 701.4 Procedures.
