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Supplement, a nonrecurring cost' charge shall be retroactively applied to such sale.
(d) When major defense equipment are sold at a reduced price due to age or condition, the nonrecurring cost recoupment charge shall be reduced by the same percentage reduction.
(e) The full amount of "special" research, development, test, and evaluation and nonrecurring production costs incurred for the benefit of particular customers shall be paid by those customers. However, when a subsequent purchaser requests the same specialized features that resulted from the added "special" research, development, test, and evaluation and nonrecurring production costs, a pro rata share of those costs may be paid by the subsequent purchaser and transferred to the original customer if those special nonrecurring cost exceed 50 million dollars. The pro rata share may be a unit charge determined by the DoD Component as a result of distribution of the total costs divided by the total production. Such reimbursements shall not be collected after 10 years have elapsed since acceptance of DD Form 1513, "U.S. DoD Offer and Acceptance," by the original customer, unless otherwise authorized by the Defense Security Assistance Agency. The U.S. Government shall not be charged any nonrecurring costs recoupment charge if it adopts the features for its own use or provides equipment with such features under a U.S. Grant Aid or similar program.
(f) For coproduction, codevelopment and cooperative development, or cooperative production DoD agreements, the policy set forth in this part generally shall determine the allocation basis for recouping from the third party purchasers the investment costs of the participants. Such DoD agreements shall provide for the application of the policies in this part to sales to third parties by any of the parties to the agreement and for the distribution of recoupments among the parties to the agreement.
(g) A contractor as the seller or licenser of the item to be used for military purposes to any customer other than the U.S. Government is responsible for payment of the recoupment charge to the Department of Defense. In the event, the Department of Defense is the licenser, the non- U.S. licensee is responsible for the payment of the recoupment charge to the Department of Defense. To avoid double payment of a recoupment charge, the seller may request the Defense Security Assistance Agency to deduct from the recoupment charge a charge paid by another contractor as a first tier subcontractor.
Sec. 165.7 Waivers (including reductions).
(a) The "Arms Export Control Act," Public Law No. 90-629, as amended, requires the recoupment of a proportionate amount of nonrecurring cost of major defense equipment from foreign military sales customers but authorizes consideration of reductions or waivers for particular sales which, if made, significantly advance U.S. Government interests and the furtherance of mutual defense treaties between the United States and certain countries. Waiver for direct commercial sales to foreign purchasers shall be based upon the same
considerations.
(b) Requests for waivers should originate with the foreign government and shall provide information on the extent of standardization to be derived as a result of the waiver and other benefits that would accrue to the U.S. Government as a result of that sale. That request shall contain a summary statement of the facts on the program, benefits expected and justification thereto, and any calculations necessary to quantify the waiver and the