Defense Offsets Reporting due June 15

The Defense Production Act of 1950 (DPA) mandates that the President submit an annual report to Congress regarding the impact of offsets on the U.S. defense industrial base. The Secretary of Commerce is responsible for preparing this report and developing regulations for the collection of offsets data from U.S. defense exporters.

Offsets are compensation practices required for purchasing defense articles or services, which can include training assistance, technology transfers, or other non-monetary compensation. U.S. firms must report information on contracts subject to offsets agreements exceeding $5,000,000 in value and annually report information on completed offsets transactions with a claimed credit of $250,000 or more.

The Bureau of Industry and Security (BIS) will not publicly disclose individual firm information received through offsets reporting, unless authorized by the firm. The collected information is organized into an aggregate report that does not disclose company-specific information.

For the next annual offset report reflecting calendar year 2022 data, U.S. firms must submit the required information on offsets agreements and transactions from calendar year 2022 to BIS by June 15, 2023.   FR Document: 2023-07291