[Code of Federal Regulations]
[Title 15, Volume 1]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR21.3]

[Page 197-198]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
PART 21--ADMINISTRATIVE OFFSET--Table of Contents
 
Sec. 21.3  Department responsibilities.

    (a) Each Departmental unit which has delinquent debts owed under its 
program is responsible for collecting its claims by means of 
administrative offset when appropriate and best suited to further and 
protect all the Government's interests.
    (b) The Departmental unit head (or designee) will determine the 
feasibility

[[Page 198]]

and cost effectiveness of collection by administrative offset on a case-
by-case basis, exercising sound discretion in pursuing such offsets, and 
will consider the following:
    (1) The debtor's financial condition;
    (2) Whether offset would substantially interfere with or defeat the 
purposes of the Federal program authorizing the payments against which 
offset is comtemplated; and
    (3) Whether offset best serves to further and protect all of the 
interests of the United States.
    (c) Before advising the debtor that the delinquent debt will be 
subject to administrative offset, the Departmental unit workout group 
shall review the claim and determine that the debt is valid and overdue. 
In the case where a debt arises under the programs of two or more 
Department of Commerce units, or in such other instances as the 
Assistant Secretary for Administration or his/her designee may deem 
appropriate, the Assistant Secretary, or his or her designee, may 
determine which Departmental unit workout group or official(s) shall 
have responsibility for carrying out the provisions of this subpart.
    (d) Administrative offset shall be considered by Department units 
only after attempting to collect a claim under section 3(a) of the 
Federal Claims Collection Act of 1966, as amended; except that no claim 
under this Act that has been outstanding for more than 10 years after 
the debt first accrued may be collected by means of administrative 
offset, unless facts, material to the right to collect the debt, were 
not known and could not reasonably have been known by the official of 
the Department who was charged with the responsibility to discover and 
collect such debts. When the debt first accrued should be determined 
according to existing laws regarding the accrual of debts, such as under 
28 U.S.C. 2415.