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10 U.S.C. § 4852 — Offset policy; notification
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment of Offset Policy.—** The President shall establish, consistent with the requirements of this section, a comprehensive policy with respect to contractual offset arrangements in connection with the purchase of defense equipment or supplies which addresses the following:
(1) Transfer of technology in connection with offset arrangements.
(2) Application of offset arrangements, including cases in which United States funds are used to finance the purchase by a foreign government.
(3) Effects of offset arrangements on specific subsectors of the industrial base of the United States and for preventing or ameliorating any serious adverse effects on such subsectors.
**(b) Technology Transfer.—**
(1) No official of the United States may enter into a memorandum of understanding or other agreement with a foreign government that would require the transfer of United States defense technology to a foreign country or a foreign firm in connection with a contract that is subject to an offset arrangement if the implementation of such memorandum or agreement would significantly and adversely affect the defense industrial base of the United States and would result in a substantial financial loss to a United States firm.
(2) Paragraph (1) shall not apply in the case of a memorandum of understanding or agreement described in paragraph (1) if the Secretary of Defense, in consultation with the Secretary of Commerce and the Secretary of State, determines that a transfer of United States defense technology pursuant to such understanding or agreement will result in strengthening the national security of the United States and so certifies to Congress.
(3) If a United States firm is required under the terms of a memorandum of understanding, or other agreement entered into by
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Source location: Title 10, Chapter 385, § 4852; chapter-385-other-technology-base-policies-and-programs.md
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**(a) Establishment of Offset Policy.—** The President shall establish, consistent with the requirements of this section, a comprehensive policy with respect to contractual offset arrangements in connection with the purchase of defense equipment or supplies which addresses the following:
(1) Transfer of technology in connection with offset arrangements.
(2) Application of offset arrangements, including cases in which United States funds are used to finance the purchase by a foreign government.
(3) Effects of offset arrangements on specific subsectors of the industrial base of the United States and for preventing or ameliorating any serious adverse effects on such subsectors.
**(b) Technology Transfer.—**
(1) No official of the United States may enter into a memorandum of understanding or other agreement with a foreign government that would require the transfer of United States defense technology to a foreign country or a foreign firm in connection with a contract that is subject to an offset arrangement if the implementation of such memorandum or agreement would significantly and adversely affect the defense industrial base of the United States and would result in a substantial financial loss to a United States firm.
(2) Paragraph (1) shall not apply in the case of a memorandum of understanding or agreement described in paragraph (1) if the Secretary of Defense, in consultation with the Secretary of Commerce and the Secretary of State, determines that a transfer of United States defense technology pursuant to such understanding or agreement will result in strengthening the national security of the United States and so certifies to Congress.
(3) If a United States firm is required under the terms of a memorandum of understanding, or other agreement entered into by the United States with a foreign country, to transfer defense technology to a foreign country, the United States firm may protest the determination to the Secretary of Defense on the grounds that the transfer of such technology would adversely affect the defense industrial base of the United States and would result in substantial financial loss to the protesting firm. The Secretary of Defense, in consultation with the Secretary of Commerce and the Secretary of State, shall make the final determination of the validity of the protesting firm’s claim.
**(c) Notification Regarding Offsets.—** If at any time a United States firm enters into a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm and such contract is subject to an offset arrangement exceeding $50,000,000 in value, such firm shall notify the Secretary of Defense of the proposed sale. Notification shall be made under this subsection in accordance with regulations prescribed by the Secretary of Defense in consultation with the Secretary of Commerce.
**(d) Definitions.—** In this section:
(1) The term “United States firm” means a business entity that performs substantially all of its manufacturing, production, and research and development activities in the United States.
(2) The term “foreign firm” means a business entity other than a United States firm.
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Federal law — U.S. Code and appendices · legal_authorities
### Statutory Notes
#### Prior Provisions
A prior section 2505 was renumbered [section 4852 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4852&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Overall trade negotiating objectives** The overall trade negotiating objectives of the United States are to obtain—
(1) more open, equitable, and reciprocal market access;
(2) the reduction or elimination of barriers and other trade-distorting policies and practices; and
(3) a more effective system of international trading disciplines and procedures.
**(b) Principal trade negotiating objectives**
(1) **Dispute settlement** — The principal negotiating objectives of the United States with respect to dispute settlement are—
(A) to provide for more effective and expeditious dispute settlement mechanisms and procedures; and
(B) to ensure that such mechanisms within the GATT and GATT agreements provide for more effective and expeditious resolution of disputes and enable better enforcement of United States rights.
(2) **Improvement of the GATT and multilateral trade negotiation agreements** — The principal negotiating objectives of the United States regarding the improvement of GATT and multilateral trade negotiation agreements are—
(A) to enhance the status of the GATT;
(B) to improve the operation and extend the coverage of the GATT and such agreements and arrangements to products, sectors, and conditions of trade not adequately covered; and
(C) to expand country participation in particular agreements or arrangements, where appropriate.
(3) **Transparency** — The principal negotiating objective of the United States regarding transparency is to obtain broader application of the principle of transparency and clarification of the costs and benefits of trade policy actions through the observance of open and equitable procedures in trade matters by Contracting Parties to the GATT.
(4) **Developing countries** — The principal negotiating objectives of
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Defense Acquisition System.—** In this part, the term “defense acquisition system” means—
(1) the workforce engaged in carrying out the acquisition of property and services for the Department of Defense;
(2) the management structure responsible for directing and overseeing the acquisition of property and services for the Department of Defense; and
(3) the statutory, regulatory, and policy framework that guides the acquisition of property and services for the Department of Defense.
**(b) Element of the Defense Acquisition System.—** In this part, the term “element of the defense acquisition system” means an organization that—
(1) employs members of the acquisition workforce;
(2) carries out acquisition functions; and
(3) focuses primarily on acquisition.
**(c) Acquisition.—** In this part, the term “acquisition” has the meaning provided in [section 131 of title 41](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section131&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
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Federal law — U.S. Code and appendices · legal_authorities
Page 2886
TITLE 10—ARMED FORCES
§ 4852
1989—Pub. L. 101–189 inserted ‘‘and related agree-
ments’’ after ‘‘understanding’’ in section catchline and
amended text generally. Prior to amendment, text read
as follows: ‘‘In the negotiation and renegotiation of
each memorandum of understanding between the Sec-
retary of Defense, acting on behalf of the United
States, and one or more foreign countries (or any in-
strumentality of a foreign country) relating to re-
search, development, or production of defense equip-
ment, the Secretary of Defense shall—
‘‘(1) consider the effect of such proposed memo-
randum of understanding on the defense industrial
base of the United States; and
‘‘(2) regularly solicit and consider information or
recommendations from the Secretary of Commerce
with respect to the effect on the United States indus-
trial base of such memorandum of understanding.’’
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Amendment by Pub. L. 116–283 effective Jan. 1, 2022,
with additional provisions for delayed implementation
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
DEFENSE TRADE RECIPROCITY
Pub. L. 108–375, div. A, title VIII, § 831, Oct. 28, 2004,
118 Stat. 2017, provided that:
‘‘(a) POLICY.—It is the policy of Congress that pro-
curement regulations used in the conduct of trade in
defense articles and defense services should be based on
the principle of fair trade and reciprocity consistent
with United States national security, including the
need to ensure comprehensive manufacturing capa-
bility in the United States defense industrial base.
‘‘(b) REQUIREMENT.—The Secretary of Defense shall
make every effort to ensure that the pol
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