Guidelines to an Industrial Benefits and Offsets Program in the Netherlands
Ministry of Economic Affairs
OBJECTIVES AND PRINCIPLES:
Offset policy is an integral part of the industry policy of the Ministry of Economic
Affairs. The results of offset policy are reported annually by the Ministry of
Economic Affairs to Parliament.
The general objective of the offset policy of the Netherlands government is to contribute to the industrial base of the Netherlands through technological advancement, thereby broadening its technological capabilities, improving its level of quality, expanding its markets and enhancing employment within the Netherlands. In stimulating activities of industrial enterprises and R&D institutes in the Netherlands, offset can bear both a military and a civil character.
The first objective is the involvement of Netherlands defence related industries and R&D institutes in the development and production of defence equipment and related services. Whenever the Netherlands Ministry of Defence (MoD) places an order for the delivery of defence materiel (equipment and related services, training, documentation, spare parts, etc.) in the amount of - or exceeding – five (5) million Euros (as from January 18th, 2005) which is (mainly) produced and delivered by a foreign supplier, an offset agreement is required.
The foreign supplier is obliged to offer offsets for 100% of the contract value. The Ministry of Economic Affairs identifies offset possibilities with all potential suppliers. Prior to the signature of the procurement contract by the MoD, the negotiations between the Ministry of Economic Affairs and potential suppliers have to be concluded resulting in a signed offset agreement.
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