Every country and obligor has their own definitions of these terms. Strictly defined "Direct" offset obligations consist of the local foreign supplier producing or servicing the actual products being sold into the country. Some countries support a broader definition that covers aerospace and defense related production opportunities. This might also include technology transfer and training that supports the country s military requirements.
In general,  one may define "Indirect" offsets as everything else that a governmental offset authority may decide to credit. Some specific examples are manufacturing opportunities offered by the obligor from other seller s business units, suppliers, and global partners. These exports need to be high technology oriented and show potential for job expansion and export growth. Technology transfer is acceptable as long as work (POs) are linked to such activities.
KMR is most helpful in assisting obligors to satisfy indirect obligations, leaving the obligor  to source their work themselves.

KMR clients are looking to find new sources for their aerospace and defense products.

KMR works with all the following players; obligors, local companies, third party implementers  to identify and develop successful offset projects.

KMR visits the country to survey local companies and start a dialogue with the offset authorities to determine the local needs and capabilities.

KMR matches local capabilities to our clients that are looking for international low cost, competitive suppliers. We work with the local suppliers to insure that they have the desire and the tools to be successful.

Lastly, KMR works with all the parties to implement the project and earn the offset credits for the designated obligors.


Every country and obligor has their own definitions of these terms. Strictly defined "Direct" offset obligations consist of the local foreign supplier producing or servicing the actual products being sold into the country. Some countries support a broader definition that covers aerospace and defense related production opportunities. This might also include technology transfer and training that supports the country s military requirements.
In general,  one may define "Indirect" offsets as everything else that a governmental offset authority may decide to credit. Some specific examples are manufacturing opportunities offered by the obligor from other seller s business units, suppliers, and global partners. These exports need to be high technology oriented and show potential for job expansion and export growth. Technology transfer is acceptable as long as work (POs) are linked to such activities.
KMR is most helpful in assisting obligors to satisfy indirect obligations, leaving the obligor  to source their work themselves.

KMR clients are looking to find new sources for their aerospace and defense products.

KMR works with all the following players; obligors, local companies, third party implementers  to identify and develop successful offset projects.

KMR visits the country to survey local companies and start a dialogue with the offset authorities to determine the local needs and capabilities.

KMR matches local capabilities to our clients that are looking for international low cost, competitive suppliers. We work with the local suppliers to insure that they have the desire and the tools to be successful.

Lastly, KMR works with all the parties to implement the project and earn the offset credits for the designated obligors.


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