Notice2026-10521
Reporting for Calendar Year 2025 on Offsets Agreements Related to Sales of Defense Articles or Defense Services to Foreign Countries or Foreign Firms
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 27, 2026
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
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 an 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 2025 and must be submitted to Commerce no later than June 15, 2026.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 101 (Wednesday, May 27, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 101 (Wednesday, May 27, 2026)]
[Notices]
[Page 31406]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10521]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 260521-0133]
XRIN: 0694-XC146
Reporting for Calendar Year 2025 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.
-----------------------------------------------------------------------
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 an 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 2025 and must be submitted to
Commerce no later than June 15, 2026.
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), 1401 Constitution Ave NW Washington, DC
20230, Room 3876, Washington, DC 20230.'' Submit electronic copies to
<a href="/cdn-cgi/l/email-protection#db94bdbda8beaf89beabb4a9af9bb9b2a8f5bfb4b8f5bcb4ad"><span class="__cf_email__" data-cfemail="9cd3fafaeff9e8cef9ecf3eee8dcfef5efb2f8f3ffb2fbf3ea">[email protected]</span></a>.
DATES: Reports must include relevant information from calendar year
2025 and must be submitted to Commerce no later than June 15, 2026.
FOR FURTHER INFORMATION CONTACT: Stephen Astle, Office of Strategic
Industries and Economic Security, Bureau of Industry and Security, U.S.
Department of Commerce, telephone: 202-482-4506; email:
<a href="/cdn-cgi/l/email-protection#39765f5f4a5c4d6b5c49564b4d795b504a175d565a175e564f"><span class="__cf_email__" data-cfemail="eaa58c8c998f9eb88f9a85989eaa888399c48e8589c48d859c">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Section 723(a)(1) of the Defense Production Act of 1950, as amended
(DPA) (50 U.S.C. 4568), 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) of the DPA 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 15
CFR part 701 (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
(EAR).
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 an 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
Regulations and the DPA (50 U.S.C. 4568). 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 offsets report reflecting
calendar year 2025 data, affected U.S. firms must submit required
information on offsets agreements and offsets transactions from
calendar year 2025 to BIS no later than June 15, 2026.
Jessica Curyto,
Deputy Assistant Secretary for Technology Security.
[FR Doc. 2026-10521 Filed 5-26-26; 8:45 am]
BILLING CODE 3510-33-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on May 27, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.