Defence offsets management

Offsets management and compliance advisory 

We advise and assist A&D original equipment manufacturers (OEMs) in:

• Structuring offset and banking proposals
• Preparing and submitting documentation relating to discharging offset obligations
• Coordinating with Indian offset partners (IOPs) for collecting and managing relevant documentation
• Following up with Defence Offsets Management Wing (DOMW) for claims submitted by BAE and responding to queries/ issues raised by the officials
• Modification of offset proposal
• Change in IOPs including partner search and due-diligence

Supply chain management for discharging offset obligations

We assist our clients in development of a supply chain structure which:

• Compliant with Indian regulations and contract requirements
• Takes into account business need of customer satisfaction
• Takes into account contractual obligations under main and offset contract
• Capable of bringing cost savings by building in efficiency through –
          i. Integrating main and offset programmes for cost efficiency
          ii. Optimising tax considerations (permanent establishment (PE)/VAT/tax exemptions and more.)

Offset partner search

We assist our clients in finding a suitable partner for offsets

• Develop screening criteria in discussion with the Management
• Prepare an initial list of partners operating in the A&D sector from secondary sources and through proprietary databases
• Develop a list of potential partner companies by applying the agreed filters
• Assess interest levels of shortlisted partners and arranging meetings with the client
• Due-diligence of potential partners (financial, tax, forensic, commercial, regulatory)

PwC has developed an integrated “Offset Management Tool”

• A web-based online application to help OEMs automate their offset compliance monitoring and management process, thus making it more effective and efficient
• Eases the management of complex and cumbersome regulatory/compliance requirements in discharging offset obligations or in banking credits under Indian defence offset policies which tend to be revised regularly
• Reduces and streamlines the amount of coordination with multiple Indian Offset Partners (IOPs) for different programs under different offset policies
• Customisable to suit your requirements
• Automatically generates the periodic offset compliance reports, offset proposal documents, offset banking offer documents and customised MIS reports to efficiently monitor, control and manage the entire offset compliance process
• Reduces the offset management cost of the OEMs

Explore: PwC's Integrated Defence Offsets Management Tool