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.

Items offered as part of an offset transaction may require an export license from the relevant U.S. Government agency. For items that require an export license, such as items controlled for Missile Technology (MT) reasons, exporters are advised to consult with the Departments of Commerce, Defense, and State to obtain export control policy guidance prior to offering such items as part of an offset transaction.

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:

Twenty-first Report to Congress, 12/16

Twentieth Offset Report to Congress 3/16

Offsets Reporting Regulations 3/1/2016

Final Rule on Reporting Offset Agreements, 12/09

Recommended Format for Reporting Offset Activities

Nineteenth Report to Congress, 3/15

Offset Definitions

Guidance for Reporting on Offset Agreements

Offsets in Defense Trade: FAQs

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

Eighteenth Report to Congress, 12/13

Seventeenth Report to Congress 2/13

Sixteenth Report to Congress, 1/12

Fifteenth Report to Congress, 1/11

Fourteenth Report to Congress, 1/10

Thirteenth Report to Congress, 12/08

Twelfth Report to Congress, 12/07

Eleventh Report to Congress, 2/07

Tenth Report to Congress, 1/06 | Appendices

Ninth Report to Congress, 3/05 | Appendices

Offsets in Defense Trade and The U.S. Subcontractor Base Report, 8/04 | Appendices

Eighth Report to Congress, 7/04 | Appendices | Appendix E

Seventh Report to Congress, 7/03 | Appendices

Sixth Report to Congress, 2/03 | Appendices | Appendix D

Fifth Report to Congress, 5/01

Fourth Report to Congress, 12/99

Third Report to Congress, 8/98

Second Report to Congress, 8/97

First Report to Congress, 5/96

1990 Presidential Policy on Offsets


Strategic Industries and Economic Security Resources  

Strategic Industries & Economic Security
Michael Vaccaro, Director

Eric Longnecker, Director
Strategic Analysis Division and Acting Director Defense Programs Division

 Todd Willis, Director
Munitions Control Division

Phone: 202-482-4506
Fax: 202-482-5650

Mailing Address:
U.S. Department of Commerce
Bureau of Industry and Security
14th and Constitution Avenue NW, Room 3876
Washington, DC 20230

© BIS 2016