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Foreign Sales Offset Credits and ATIcourses Technical Training

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ATIcourses has over 150 technical training courses that are International Traffic in Arms Regulations (ITAR) compliant to satisfy foreign offset training requirements. These courses are based on open source materials and textbooks, and therefore satisfy ITAR rules. ATIcourses has been used by large defense contractors, including Raytheon and Northrop Grumman, as a full-service provider of foreign offset training in defense and systems engineering. ATIcourses will work with your company to provide the required training in an ITAR compliant manner. Technical training that ranges from 2 days to 10 weeks have been provided under subcontract for foreign sales offset credit. ATIcourses instructors offer a high-quality and a ITAR safe option to present the offset training.

Background

Offsets are the practice by which the award of defense contracts by foreign governments or companies is conditioned upon commitments from the defense contractor to provide some form of compensation to the purchaser, typically a foreign government. In defense trade, offsets can include activities such as mandatory co-production, credit assistance, licensed production, subcontractor production, technology transfer, purchases, training, and foreign investment. The defense contractor must be careful to protect its defense secrets and to follow all ITAR rules, or face severe penalties. http://pmddtc.state.gov/regulations_laws/itar_official.html

The use of offsets is commonplace in global defense trade. Today, virtually all of United States’ defense trading partners impose some type of offset requirement. Countries require offsets for a variety of reasons including easing the burden of large defense purchases on their economy, increasing or preserving domestic employment, obtaining desired technology or promoting industrial sectors. Technical training is a common way to satisfy offset credit requirements.

What is an offset agreement and an offset transaction?

An offset agreement includes an offset agreed to by a U.S. firm in order to conclude a military export sales contract. The agreement is normally reflected in a contract that specifies the percentage of the total defense-related export sale to be offset, the forms of industrial compensation required, the duration of the offset agreement.

Training: Generally includes training related to the production or maintenance of the exported defense item. Training, which can be either direct or indirect, may be required in unrelated areas, such as computer training or engineering capabilities. Training is a common and high value method ( with a high multiplier factor) of satisfying foreign offset credits. The training can be on specific procedures to maintain and repair the equipment purchased by the procuring country, or more general based on the science and engineering of the underlining defense or space technology.

http://www.bis.doc.gov/offsetguidance.htm

ATI training is based on open-literature sources.

A common restriction of the DoD export license states: The training course material will not contain the following information; lessons-learned from development of specific systems or examples from the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, processing or use of specific weapon systems. That places a high restriction on allowable materials for the selling defense contractor. There is a risk that knowledgeable company employees may inadvertently provide prohibited information and violate ITAR rules. The ATI instructors have not been involved in the manufacture, production, assembly, and testing of the specific military systems being sold and can teach an ITAR compliant course. Furthermore the ATIcourses materials are taught several times per year in open enrollment courses, so the materials have been updated and audience-tested for clarity and accuracy.
Please contact me for more information at 443-472-2444 c or 410-956-8805. email jim.jenkins@aticourses.com. List of courses

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