---
kind: "section"
citation: "15 C.F.R. § 701.3"
title: "15"
number: "701.3"
heading: "Applicability and scope."
url: "https://uscodex.org/cfr/15/701.3"
---

# §701.3. Applicability and scope.

- (a) This part applies to U.S. firms entering contracts that are subject to an offset agreement exceeding $5,000,000 in value and that are for the sale to a foreign country or foreign firm of:
  - (1) Defense articles and/or defense services as defined by the Arms Export Control Act and International Traffic in Arms Regulations; or
  - (2) Items controlled under an Export Control Classification Number (ECCN) that has the numeral “6” as its third character in the Commerce Control List found in supplement no. 1 to [part 774](/cfr/15/part774.md) of this chapter other than semi-submersible and submersible vessels specially designed for cargo transport and parts, components, accessories and attachments specially designed therefor controlled under ECCN 8A620.b; test, inspection and production equipment controlled in ECCN 8B620.b; software controlled in ECCN 8D620.b and technology controlled in ECCN 8E620.b.
- (b) This rule applies to all offset transactions completed in performance of existing offset commitments since January 1, 1993 for which offset credit of $250,000 or more has been claimed from the foreign representative, and new offset agreements entered into since that time.

## Notes

### Amendments

[59 FR 61796, Dec. 2, 1994, as amended at 81 FR 10474, Mar. 1, 2016]

### Authority

Authority: 50 U.S.C. 4568; E.O. 12919, 59 FR 29525, 3 CFR, 1994 Comp., p. 901; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.

### Source

Source: 59 FR 61796, Dec. 2, 1994, unless otherwise noted.

### Amendments

[59 FR 61796, Dec. 2, 1994, as amended at 81 FR 10474, Mar. 1, 2016]