The U.S. appears to have ended certain cost exemptions for South Korea under a weapons sales program. 

According to Yonhap News, the Trump administration notified Seoul around August that it would discontinue the exemptions and begin charging “non-recurring costs” when selling military equipment through its government-to-government foreign military sales program.

Sources said the same position has been conveyed to Japan, Australia and NATO member states.

Non-recurring costs refer to one-time expenses incurred by U.S. defense contractors during the development or production of weapons, including the initial development, design and testing phases.

The U.S. Department of War has waived those costs in certain cases, such as preferential treatment for specific allies or to avoid disadvantaging U.S. bids in international arms competitions.

South Korea, which had previously been exempt as a NATO-equivalent ally, is now expected to bear the development costs whenever it acquires U.S. weapons through the program.