BIS Proposes Offset Reporting Requirements for Certain Controlled Exports

The Bureau of Industry and Security is proposing new requirements to report offset agreements for exports now controlled under the “600 series” of the Export Administration Regulations (EAR) Commerce Control List. Reporting to BIS of offset agreements -- compensation to the purchaser as a condition of sales of defense articles, including coproduction, technology transfer, subcontracting, credit assistance, training, licensed production, investment, and other purchases – has been required since the 1990s for exports of articles listed on the U.S. Munitions List. With the transfer of certain items from the USML to the CCL’s 600-series under export control reform, BIS is proposing to continue offset reporting for those transferred items. Offset reporting would also be required for items added to the 600-series that were not previously listed on the USML. It would not be required for submersible and semi-submersible cargo transport vessels and related items that are not on control lists of any of the multilateral export control regimes that count the U.S. as a member. Comments on the proposed rule are due Feb. 1.