Offset Agreement Translate

Offsets are of a different duration. They can be planned for 1 or 2 years, but 8-10 year plans are very common; An exceptional lag is the Al Yamamah programme, a BAE-UK offset in Saudi Arabia, in force since 1987. Clients (sovereign countries) have mechanisms in place to monitor their implementations and certify milestones in their offset programmes. An offset supervisory authority certifies the evolution of offset financial statements in percentage terms and issues offset certificates. [22] These certificates may be issued to principal contractors who fulfil their compensation contract, but also to enforcement executives who have awarded the employment of principal contractors and who, as such, are registered abroad. If there are multipliers, these certificates spend the completion percentage in „credit value“ („value“ X-multiplier). Offset contractors contract offset certificates through contracts or sub-contracts with the main contractor. More recently, given the importance and growth of offset practices around the world, offset measures can „sell“ their certificates to other major contractors than their original contractors, as long as they have national offset commissions. In this profitable niche of the defence industry, manufactured by offset specialists, lawyers and companies – there is also a „currency“ and a „trade“ of offset certificates.

The European compensation policy is still governed by the Treaty establishing the European Community. Article 223 of the Treaty of Rome (1958), [82], then Article 296 of the EU Treaty of Amsterdam (1999); [83] Since December 2009, the Lisbon Treaty (Article 346) has protected the production of arms and trade by Member States against the competition rules of the European common market. Despite 50 years of European history, Article 223 (Rome) and Article 346 (Lisbonne) are virtually identical. Today, the hinge of the European compensation policy is still the same article, that is, Article 346 of the Lisbon Treaty. This article preserves national law on state secrecy in relation to its own security and military production and supply. This is the relevant part of Article 346: compensation schemes are set by government resolution 9-2005. The Ministry of Trade and Industry is responsible for industrial cooperation (also through an offset commission). The minimum market value is CZK 500 million. The minimum replacement is 100%. No multipliers are used.

Offset focuses on new technologies, cooperation and technology transfer. At least 20% of direct offset. The Compensation Commission issues annual reports on the status of compensation. One of the biggest offset controversies in the Czech Republic concerns the purchase of General Dynamics Pandur II between 2003 and 2009. In February 2010, the anti-corruption police opened an investigation.