TNAG-2404-FCO40-3491-Hong-Kong-defence-and-public-order-1992 — Page 44

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NONRECURRING COST (NC) RECOUPMENT CHARGE! POLICY CHANGE. June 1992, the Deputy Secretary of Defense signed a revised Department of Defense (DOD) Directive 2140.2, "Recoupment of Nonrecurring Coats (NC) on Sales or Licensing of U.S. Items." this directive, the policies have been revised to recoup DOD'■ NC investment in only Major Defense Equipment (MDE). These policies apply to all prospective Foreign Military Sales (FMS) and to prospective commercial sales of MDE for military use. A proposed new rule for public comment was published on 2 July 1992 in the Federal Register to eliminate NC recoupment charges on all MDE sold commercially. Also the Bush Administration will initiate a legislative proposal to eliminate the statutory recoupment

The intent by DOD and State requirement for MDE sold via FMS. Department is to treat FMS and commercial sales equally on NC collections.

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