FMS Non-Recurring Cost (NRC) Waivers
DoD must charge FMS customer a pro-rata share of NRC of R&D and Production for MDE [§21(e)(1)(B), AECA]
- Similar policy requirement for DCS/FMS non-MDE was dropped in 1992
In FY 78, reduction or waiver of charges is authorized for NATO, Australia, New Zealand, and Japan [§21(e)(2)(A), AECA]
After FY 89, no NRC charges for fully FMFP-funded cases [§21(e)(1)(B), AECA]
After FY 96, conditional waiver is authorized for other FMS cases if determined that:
- a sale may be lost if NRC is imposed, or
- economies of scale would reduce U.S. costs for such items, and savings would offset lost revenue [§21(e)(2)(B), AECA]