Lockheed Martin is committed to compliance with the trade laws and regulations of the United States and all countries where we do business, and maintains an integrated team of hundreds of professionals engaged in trade compliance throughout the enterprise.
Due to the nature of our business, we sell our products and services around the globe and sometimes through intermediaries. We are committed to follow all applicable domestic and international regulations regarding the sales of our products and services. At times, international sales of Lockheed Martin defense products and services occur on a government-to-government basis via Foreign Military Sales (FMS) programs, and at other times through Direct Commercial Sales from Lockheed Martin to our customers. Export transactions are authorized by the Arms Export Control Act (AECA), the Export Control Reform Act of 2018 (ECRA) and the Atomic Energy Act (AEA). The FMS program is funded by administrative charges to the customer and is operated at no cost to taxpayers. The Defense Security Cooperation Agency (DSCA) manages FMS sales for the DoD. The U.S. Executive Branch—and Congress, under certain conditions—reviews and approves the proposed exports to ensure they support U.S. national security and foreign policy objectives.
The U.S. Executive Branch establishes the U.S. Conventional Arms Transfer Policy and reviews international sales from this policy framework to consider the risk that an arms transfer might contribute to abuses of human rights. We also have the discretion not to bid on a contract for any reason, if we so choose. Refer to the Foreign Assistance Act, the International Traffic in Arms Regulations (ITAR) and the U.S. Conventional Arms Transfer Policy for more information on regulatory and policy guidelines and requirements.
With international sales, it is common to have an industrial participation agreement, sometimes referred to as offset agreements—meaning contracts with purchasing countries require Lockheed Martin to buy or invest in resources from that country. Lockheed Martin has a dedicated organization that monitors and oversees the company’s industrial participation programs. Some countries allow and may require commitments in the form of direct foreign investment, technology transfer, or other business relationships with non-defense economic sectors. We view these obligations as an opportunity to contribute to sustainable development initiatives globally. Commensurate U.S. business activities are subject to multiple policies, procedures and contractual obligations, including but not limited to those itemized in Lockheed Martin’s human rights policy and related codes of conduct.