Nation P also assigns a credit value for each type of offset offered by Company S. The value of the credit for clearing bonds is not “real value” but “real value” by a multiplier expressing the degree of interest of Nation P (buyer) for the proposed offsets. In other words, something that is considered very valuable by Nation P will have a great multiplier that expresses the significance and value of this kind of shift to Nation P. The multiplier (z.B 2, 5 or 7) reflects the attached value of Nation P as a credit value, which is ultimately declared to meet the agreed amount of $480 million (120% of the offset); It is obvious that without multipliers, 120% offset would be absurd. Most offset packages are divided into direct and indirect offsets. Here is a hypothetical and complex offset offer, divided into direct and indirect offsets in Nation P. Although widely practiced, some, such as the U.S. government, view these agreements as “market-distorting and ineffective.” On April 16, 1990, a statement of the policy of the President of the United States was issued, which stated that “the decision whether or not to participate in offsets […] ” No U.S. government authority can directly encourage, involve or compel U.S. companies to enter into a compensation agreement for the sale of defense products or services to foreign governments.”  The legal division must be consulted at an early stage to examine ways of structuring the underlying agreement and compensation obligations. This may require separation or restructuring to resolve issues of transparency, accountability or revenue recognition, or so that due diligence may be a condition of the agreement.
Nation P controls not only the delivery of military systems or services, but also the implementation of offsets in accordance with the offset agreement, which includes or is bound to the main delivery contract. This control is the responsibility of the Minister of Defence and/or the Ministry of Economy and Finance or the Ministry of Industry and Trade. Often, nations that import weapons create special agencies to track defence compensation.  1) Since 1990, under a specific directive by President George Bush, no member of the U.S. Federal Police or member of the U.S. government can be associated with the offset. For each press release relating to an FMS (or FMS documents), there is a standard disclaimer: “There are no known offset agreements that are proposed as part of this (potential) sale.”  Barter – A transaction related to a single contract that provides for the exchange of selected goods or services for another product of equivalent value.