83_FR_23985 83 FR 23885 - Reporting for Calendar Year 2017 on Offsets Agreements Related to Sales of Defense Articles or Defense Services to Foreign Countries or Foreign Firms

83 FR 23885 - Reporting for Calendar Year 2017 on Offsets Agreements Related to Sales of Defense Articles or Defense Services to Foreign Countries or Foreign Firms

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 100 (May 23, 2018)

Page Range23885-23885
FR Document2018-11074

This notice is to remind the public that U.S. firms are required to report annually to the Department of Commerce (Commerce) information on contracts for the sale of defense articles or defense 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 information 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. This year, such reports must include relevant information from calendar year 2017 and must be submitted to Commerce no later than June 15, 2018.

Federal Register, Volume 83 Issue 100 (Wednesday, May 23, 2018) 
[Federal Register Volume 83, Number 100 (Wednesday, May 23, 2018)]
[Notices]
[Page 23885]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11074]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 180402338-8338-01]
RIN 0694-XC044


Reporting for Calendar Year 2017 on Offsets Agreements Related to 
Sales of Defense Articles or Defense Services to Foreign Countries or 
Foreign Firms

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

ACTION: Notice; annual reporting requirements.

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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) 
information on contracts for the sale of defense articles or defense 
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 information 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. This year, such reports must include relevant 
information from calendar year 2017 and must be submitted to Commerce 
no later than June 15, 2018.

ADDRESSES: Submit reports in both hard copy and electronically. Address 
the hard copy to ``Offsets Program Manager, U.S. Department of 
Commerce, Office of Strategic Industries and Economic Security, Bureau 
of Industry and Security (BIS), Room 3878, Washington, DC 20230''. 
Submit electronic copies to [email protected].

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; 
email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 723(a)(1) of the Defense Production Act of 1950, as amended 
(DPA) (50 U.S.C. 4568 (2015)) requires the President to submit an 
annual report to Congress on the impact of offsets on the U.S. defense 
industrial base. Section 723(a)(2) directs the Secretary of Commerce 
(Secretary) to prepare the President's report and 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 
delegated to the Under Secretary of Commerce for Industry and Security. 
The regulations associated with offsets reporting are set forth in part 
701 of title 15 of the Code of Federal Regulations (Offsets 
Regulations). 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 (22 U.S.C. 2778) and the International Traffic 
in Arms Regulations (22 CFR 120-130). Offsets are also applicable to 
certain items controlled on the Commerce Control list (CCL) and with an 
Export Control Classification Number (ECCN) including the numeral ``6'' 
as its third character. The CCL is found in Supplement No. 1 to part 
774 of the Export Administration Regulations.
    An example of an offset is as follows: A company that is selling a 
fleet of military aircraft to a foreign government may agree to offset 
the cost of the aircraft by providing training assistance to plant 
managers in the purchasing country. Although this distorts the true 
price of the aircraft, the foreign government may require this sort of 
extra compensation as a condition of awarding the contract to purchase 
the aircraft. As described in the Offsets Regulations, U.S. firms are 
required to report information on contracts for the sale of defense 
articles or defense 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 information 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.
    Commerce's annual report to Congress includes an aggregated summary 
of the data reported by industry in accordance with the offsets 
regulation and the DPA (50 U.S.C. 4568 (2015)). As provided by section 
723(c) of the DPA, BIS will not publicly disclose individual firm 
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.
    To enable BIS to prepare the next annual offset report reflecting 
calendar year 2017 data, affected U.S. firms must submit required 
information on offsets agreements and offsets transactions from 
calendar year 2017 to BIS no later than June 15, 2018.

    Dated: May 18, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-11074 Filed 5-22-18; 8:45 am]
 BILLING CODE 3510-JT-P

Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices 23885 Est. frequency Estimated avg. Estimated of responses Total annual number of Estimated total Respondent number per responses hours per hours respondent respondent response Total Estimated Reporting Burden ........................ 110,268 10.017 1,104,583 0.226043 238,786 Recordkeeping: State agencies .............................................................. 56 50 2,800 0.17976 503 School Food Authorities ............................................... 19,240 10 192,400 0.083 15,969.20 Schools ......................................................................... 90,972 360 32, 749,920 0.110 3,602,491.20 Total Estimated Recordkeeping Burden ............... 110,268 295.1368 32,945,120 0.108837 3,618,963.40 Total of Reporting and Recordkeeping: Reporting ...................................................................... 110,268 10.017 1,104,583 0.226043 238,786 Recordkeeping .............................................................. 110,268 295.137 32,945,120 0.108837 3,618,963.40 Total ....................................................................... ........................ ........................ 34,049,703 ........................ 3,857,749 Brandon Lipps, FOR FURTHER INFORMATION CONTACT: to plant managers in the purchasing Administrator, Food and Nutrition Service. Ronald DeMarines, Office of Strategic country. Although this distorts the true [FR Doc. 2018–11073 Filed 5–22–18; 8:45 am] Industries and Economic Security, price of the aircraft, the foreign BILLING CODE 3410–30–P Bureau of Industry and Security, U.S. government may require this sort of Department of Commerce, telephone: extra compensation as a condition of 202–482–3755; fax: 202–482–5650; awarding the contract to purchase the DEPARTMENT OF COMMERCE email: ronald.demarines@bis.doc.gov. aircraft. As described in the Offsets SUPPLEMENTARY INFORMATION: Regulations, U.S. firms are required to Bureau of Industry and Security report information on contracts for the Background [Docket No. 180402338–8338–01] sale of defense articles or defense Section 723(a)(1) of the Defense services to foreign countries or foreign RIN 0694–XC044 Production Act of 1950, as amended firms that are subject to offsets (DPA) (50 U.S.C. 4568 (2015)) requires Reporting for Calendar Year 2017 on agreements exceeding $5,000,000 in the President to submit an annual report Offsets Agreements Related to Sales value. U.S. firms are also required to to Congress on the impact of offsets on of Defense Articles or Defense report annually information on offsets the U.S. defense industrial base. Section Services to Foreign Countries or transactions completed in performance 723(a)(2) directs the Secretary of Foreign Firms Commerce (Secretary) to prepare the of existing offsets commitments for President’s report and to develop and which offsets credit of $250,000 or more AGENCY: Bureau of Industry and has been claimed from the foreign Security, Department of Commerce. administer the regulations necessary to collect offsets data from U.S. defense representative. ACTION: Notice; annual reporting requirements. exporters. Commerce’s annual report to Congress The authorities of the Secretary includes an aggregated summary of the SUMMARY: This notice is to remind the regarding offsets have been delegated to data reported by industry in accordance public that U.S. firms are required to the Under Secretary of Commerce for with the offsets regulation and the DPA report annually to the Department of Industry and Security. The regulations (50 U.S.C. 4568 (2015)). As provided by Commerce (Commerce) information on associated with offsets reporting are set section 723(c) of the DPA, BIS will not contracts for the sale of defense articles forth in part 701 of title 15 of the Code publicly disclose individual firm or defense services to foreign countries of Federal Regulations (Offsets information it receives through offsets or foreign firms that are subject to Regulations). Offsets are compensation reporting unless the firm furnishing the offsets agreements exceeding $5,000,000 practices required as a condition of information specifically authorizes in value. U.S. firms are also required to purchase in either government-to- public disclosure. The information report annually to Commerce government or commercial sales of collected is sorted and organized into an information on offsets transactions defense articles and/or defense services, aggregate report of national offsets data, completed in performance of existing as defined by the Arms Export Control and therefore does not identify offsets commitments for which offsets Act (22 U.S.C. 2778) and the credit of $250,000 or more has been company-specific information. International Traffic in Arms claimed from the foreign representative. Regulations (22 CFR 120–130). Offsets To enable BIS to prepare the next This year, such reports must include are also applicable to certain items annual offset report reflecting calendar relevant information from calendar year controlled on the Commerce Control list year 2017 data, affected U.S. firms must 2017 and must be submitted to (CCL) and with an Export Control submit required information on offsets Commerce no later than June 15, 2018. Classification Number (ECCN) including agreements and offsets transactions from ADDRESSES: Submit reports in both hard the numeral ‘‘6’’ as its third character. calendar year 2017 to BIS no later than copy and electronically. Address the The CCL is found in Supplement No. 1 June 15, 2018. daltland on DSKBBV9HB2PROD with NOTICES hard copy to ‘‘Offsets Program Manager, to part 774 of the Export Administration Dated: May 18, 2018. U.S. Department of Commerce, Office of Regulations. Strategic Industries and Economic An example of an offset is as follows: Richard E. Ashooh, Security, Bureau of Industry and A company that is selling a fleet of Assistant Secretary for Export Security (BIS), Room 3878, Washington, military aircraft to a foreign government Administration. DC 20230’’. Submit electronic copies to may agree to offset the cost of the [FR Doc. 2018–11074 Filed 5–22–18; 8:45 am] OffsetReport@bis.doc.gov. aircraft by providing training assistance BILLING CODE 3510–JT–P VerDate Sep<11>2014 17:33 May 22, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4703 Sfmt 9990 E:\FR\FM\23MYN1.SGM 23MYN1


Document Created: 2018-05-22 23:48:56
Document Modified: 2018-05-22 23:48:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice; annual reporting requirements.
ContactRonald 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; email: [email protected]
FR Citation83 FR 23885 
RIN Number0694-XC04
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