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The registerExecutive Order 13177
E.O.13177

National Commission on the Use of Offsets in Defense Trade and President's Council on the Use of Offsets in Commercial Trade

Signed December 4, 2000·William J. Clinton·65 FR 76558

Source

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Plain-language summary

Auto-generated summaryWritten by claude-sonnet-5 from the order’s own text · prompt v4 ·

Implements a federal law by detailing the membership, duties, and administration of the National Commission on the Use of Offsets in Defense Trade, an 11-member body including private-sector, academic, and executive branch representatives, chaired by the Office of Management and Budget. The Commission is directed to study foreign offset requirements in defense purchasing, their effects on industry and national security, and to report to Congress within 12 months, after which it terminates. The order also establishes a parallel President's Council on the Use of Offsets in Commercial Trade, made up of the same members or their designees, to review and report to the President on offsets in commercial trade and their impact on the defense and commercial industrial base. The Department of Defense is directed to provide administrative support and funding for both bodies, and federal agencies must supply requested information to the Council, which terminates when its report is transmitted.'

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Claimed authority

By the authority vested in the President by the Constitution and the laws of the United States of America, including Public Law 106-113 and the Federal Advisory Committee Act, as amended (5 U.S.C. App. 2), and in order to implement section 1247 of Public Law 106-113 (113 Stat. 1501A-502) and to create a parallel “President's Council on the Use of Offsets in Commercial Trade,” it is hereby ordered

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Disposition

Revoked (in part) by: EO 13316, September 17, 2003

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The order, in full

Executive Order 13177 of December 4, 2000

National Commission on the Use of Offsets in
Defense Trade and President's Council on the Use of
Offsets in Commercial Trade

By the authority vested in the President by the
Constitution and the laws of the United States of
America, including Public Law 106-113 and the Federal
Advisory Committee Act, as amended (5 U.S.C. App. 2),
and in order to implement section 1247 of Public Law
106-113 (113 Stat. 1501A-502) and to create a parallel
“President's Council on the Use of Offsets in
Commercial Trade,” it is hereby ordered as follows:

Section 1. Membership. Pursuant to Public Law 106-113,
the “National Commission on the Use of Offsets in
Defense Trade” (Commission) comprises 11 members
appointed by the President with the concurrence of the
Majority and Minority Leaders of the Senate and the
Speaker and the Minority Leader of the House of
Representatives. The Commission membership includes:
(a) representatives from the private sector, including
one each from (i) a labor organization, (ii) a United
States defense manufacturing company dependent on
foreign sales, (iii) a United States company dependent
on foreign sales that is not a defense manufacturer,
and (iv) a United States company that specializes in
international investment; (b) two members from academia
with widely recognized expertise in international
economics; and (c) five members from the executive
branch, including a member from the: (i) Office of
Management and Budget, (ii) Department of Commerce,
(iii) Department of Defense, (iv) Department of State,
and (v) Department of Labor. The member from the Office
of Management and Budget will serve as Chairperson of
the Commission and will appoint, and fix the
compensation of, the Executive Director of the
Commission.

Sec. 2. Duties. The Commission will be responsible for
reviewing and reporting on: (a) current practices by
foreign governments in requiring offsets in purchasing
agreements and the extent and nature of offsets offered
by United States and foreign defense industry
contractors; (b) the impact of the use of offsets on
defense subcontractors and nondefense industrial
sectors affected by indirect offsets; and (c) the role
of offsets, both direct and indirect, on domestic
industry stability, United States trade
competitiveness, and national security.

Sec. 3. Commission Report. Not later than 12 months
after the Commission is established, it will report to
the appropriate congressional committees. In addition
to the items described in section 2 of this order, the
report will include: (a) an analysis of (i) the
collateral impact of offsets on industry sectors that
may be different than those of the contractor paying
offsets, including estimates of contracts and jobs lost
as well as an assessment of damage to industrial
sectors; (ii) the role of offsets with respect to
competitiveness of the United States defense industry
in international trade and the potential damage to the
ability of United States contractors to compete if
offsets were prohibited or limited; and (iii) the
impact on United States national security, and upon
United States nonproliferation objectives, of the use
of co-production, subcontracting, and technology
transfer with foreign governments or companies, that
results from fulfilling offset requirements, with
particular emphasis on the question of dependency upon
foreign nations for the supply of critical components
or technology; (b) proposals for unilateral, bilateral,
or multilateral measures aimed at reducing any
detrimental

effects of offsets; and (c) an identification of the
appropriate executive branch agencies to be responsible
for monitoring the use of offsets in international
defense trade.

Sec. 4. Administration, Compensation, and Termination.
(a) The Department of Defense will provide
administrative support and funding for the Commission
and Federal Government employees may be detailed to the
Commission without reimbursement.

    (b) Members of the Commission who are not officers
or employees of the Federal Government will be
compensated at a rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including
travel time) during which such member is engaged in
performance of the duties of the Commission. Members of
the Commission who are officers or employees of the
Federal Government will serve without compensation in
addition to that received for their services as
officers or employees of the Federal Government.
    (c) Members of the Commission will be allowed
travel expenses, including per diem in lieu of
subsistence, under subchapter 1 of chapter 57 of title
5, United States Code, while on business in the
performance of services for the Commission.
    (d) The Commission will terminate 30 days after
transmitting the report required in section 1248(b) of
Public Law 106-113 (113 Stat. 1501A-505).

Sec. 5. Establishment and Membership. (a) There is
established, pursuant to the Federal Advisory Committee
Act, as amended (5 U.S.C. App.), the “President's
Council on the Use of Offsets in Commercial Trade”
(Council).

    (b) The Council shall be composed of the appointed
members of the Commission or their designees.

Sec. 6. Duties and Report of the Council. The Council
shall review and report to the President, through the
Director of the Office of Management and Budget, on the
use of offsets in commercial trade, including their
impact on the United States defense and commercial
industrial base. The Council shall consult with and, as
appropriate, provide information to the Commission.

Sec. 7. Administration. (a) The Department of Defense
shall provide administrative support and funding for
the Council.

    (b) The heads of executive departments and agencies
shall, to the extent permitted by law, provide to the
Council such information as it may require for the
purpose of carrying out its duties.
    (c) Members of the Council shall serve without
compensation.

Sec. 8. General. (a) Notwithstanding any other
Executive Order, the functions of the President under
the Federal Advisory Committee Act, as amended, except
that of reporting to the Congress, that are applicable
to the Council, shall be performed by the Department of
Defense in accordance with guidelines that have been
issued by the Administrator of General Services.

    (b) The Council shall terminate on the date of the
transmission of the report required by section 1248(b)
of Public Law 106-113 (113 Stat. 1501A-505).

    (Presidential Sig.)

THE WHITE HOUSE,

    December 4, 2000.

Reproduced from the Federal Register plain-text record, signed December 4, 2000. Typesetting artifacts are removed; no wording is changed.