U.S. contractors are overwhelmingly disappointed with India’s draft Defence Production Policy (DPP-2020), reviewed in CTO 7 dated April 6. The general consensus is that the draft adds yet further complexity and confusion to India’s offset policy while lowering multipliers and raising indigenous content quotas. “I’ve honestly not heard a single positive thing from [U.S] industry...” Indian government officials are equally confused.
Turkey’s Presidency of Defence Industries (SSB) is allowing obligors to extend the performance periods of offset contracts because of the effects of COVID-19. The government has passed Memorandum No. 2020/5 to allow contractors whose contracts have been temporarily, permanently, or partially affected, or are absolutely impossible to perform because of the virus, to apply to...
An emergency bill presented to Poland’s parliament will allow contractors with offset commitments to claim extensions to performance periods because of the COVID-19 pandemic. The lower chamber has approved Bill No. 330, entitled “Special support instruments in connection with the spread of the SARS-CoV-2 virus”. The upper chamber was due to pass the bill, possibly with minor amendments, as we went to press.
The Office of the United States Trade Representative has named the offset programs of numerous countries as areas of concern. Several countries are said to attract particular disquiet because of their effect on U.S. contractors. They include the UAE, Canada, India, Israel, Turkey, and Greece.
Mike Kalms, a partner at KPMG Australia, has warned contractors that the government’s approach to the Australian Industry Content Policy (AICP) is changing, and that the “good old days” no longer exist. Kalms told the Australian Manufacturing Forum...