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.
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, War, and State to obtain export control policy guidance prior to offering such items as part of an offset transaction.
This website includes a wide range of offsets in defense trade resources, including the Offset Reporting regulations, guidance and recommended format for reporting offset activities, frequently asked questions on offsets, and copies of recent reports to Congress and the Presidential Policy on Offsets.
Offset program resources
Notice and regulations
- Offsets in Defense Trade Regulation
- Final Rule on Export Control Reform: Conforming Change to Defense Sales Offset Reporting Requirements - March 2016
- Final Rule on Reporting Offset Agreements in Sales of Weapon Systems or Defense-Related Items to Foreign Countries or Foreign Firms - December 2009
- Changes in Offset Reporting Regulations Presentation - February 2010
- 1990 Presidential Policy on Offsets
- Reminder of Offset Reporting Requirements for Calendar Year 2022
Reporting offsets
- Guidance for Reporting on Offset Agreements and Transactions
- Format for Reporting Offset Activities
- Offset Reporting Definitions
- FAQs
Reports
- Twenty-eighth Report to Congress - May 2024
- Twenty-seventh Report to Congress - May 2023
- Twenty-sixth Report to Congress - August 2022
- Twenty-fifth Report to Congress - July 2021
- Twenty-fourth Report to Congress - July 2020
- Twenty-third Report to Congress - April 2019
- Twenty-second Report to Congress - June 2018
- Twenty-first Report to Congress - December 2016
- Twentieth Offset Report to Congress - March 2016
- Nineteenth Report to Congress - March 2015
- Eighteenth Report to Congress - December 2013
- Seventeenth Report to Congress - February 2013
- Sixteenth Report to Congress - January 2012
- Fifteenth Report to Congress January 2011
- Fourteenth Report to Congress - January 2010
- Thirteenth Report to Congress - December 2008
- Twelfth Report to Congress - December 2007
- Eleventh Report to Congress - February 2007
- Tenth Report to Congress - January 2006 | Appendices
- Ninth Report to Congress - March 2005 | Appendices
- Offsets in Defense Trade and The U.S. Subcontractor Base Report - August 2004 | Appendices
- Eighth Report to Congress - July 2004 | Appendices | Appendix E
- Seventh Report to Congress - July 2003 | Appendices
- Sixth Report to Congress - February 2003 | Appendices | Appendix D
- Fifth Report to Congress - May 2001
- Fourth Report to Congress - December 1999
- Third Report to Congress - August 1998
- Second Report to Congress - August 1997
- First Report to Congress - May 1996