Washington to not provide waiver for costs on arms purchases to Seoul
Sources indicate that the US communicated in August that it would end the exemption for "non-recurring" costs (NCs), which are one-time expenses associated with the research, development, or production of specific defense equipment.
Under the US Arms Export Control Act, the Pentagon is required to recover NCs for weapons sold through the Foreign Military Sales (FMS) program, as these initial development costs are covered by US taxpayers. The law allows these charges to be waived in select cases, such as promoting interoperability with allies like South Korea, Japan, and Australia, or preventing the potential loss of a weapons sale.
South Korea has previously benefited from this waiver, but its removal is expected to increase costs, particularly as Seoul plans to spend $25 billion on US military equipment by 2030. Reports suggest that Japan, Australia, and other allies have also been informed about the end of the waiver.
The Pentagon has declined to provide a comment on the decision.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
