Based upon changes to the local cost policy, below is an illustration of how EXIM Bank structures local cost financial support in conjunction with support for U.S. exports.

EXIM Bank Content Policy:

To be eligible for EXIM Bank financing, goods and services must be shipped from the United States to a foreign buyer. EXIM Bank will support the lesser of 85% of the Net Contract Price or 100% of the US content.

EXIM Bank Local Cost Policy:
EXIM Bank can support up to 30% of the Net Contract Price for locally originated and/or manufactured goods and services. For additional information on availability and eligibility, refer to the Local Cost Policy page here.


A U.S. exporter has been awarded a $150 million contract to build a gas power plant in China. The U.S. exporter is responsible for providing the turbines from the U.S. while its subsidiary in China is responsible for providing the foundation work (local concrete and local labor) for the U.S. equipment.


  1. The U.S. Supply Contract is $150 million.
  2. The ineligible foreign content is $20 million.
  3. The local costs included in or related to the U.S. exporter's scope of work is $50 million.
  4. The Net Contract Price is $80 million.
  5. The U.S. content is $70 million.
  6. The eligible foreign content included in the Net Contract Price is $10 million.

The long-term transaction is structured as follows:


U.S. Supply Contract$150,000,000
U.S. Content $70,000,000
Eligible Foreign Content$10,000,000
Net Contract Price (70mm + 10mm)$80,000,000
Cash Payment (15% of $80mm)$12,000,000
Amount of Net Contract Price financed$68,000,000
Amount of local cost in the Supply Contract:$50,000,000
Amount of local cost financed (30% of $80mm)$24,000,000
Total EXIM Bank Financing support$92,000,000


The Net Contract Price includes US content and eligible foreign content (and excludes ineligible foreign content and local costs). This amount consists of 85% of the Net Contract Price (maximum support) plus 30% of the Net Contract Price (maximum support for local costs).

 Terms, Definitions and CalculationsUSD
Supply Contract/ Purchase Order(s) 
This amount consists of the aggregate price of all Goods and Services in the Supply Contract/Purchase Oder(s), which includes US content, eligible foreign content (i.e., goods shipped from the United States), ineligible goods and services, and local costs.
BExcluded Goods and Services
The aggregate price of all Goods and Services that are not eligible for (or excluded from) EXIM Bank support (e.g., goods not shipped from the U.S.)
CContract Price
(A minus B)
DLocal Costs
The aggregate price of all Goods originated/manufactured in the Purchaser's country and all Services provided by residents of the Purchaser's country.     
ENet Contract Price 
(C minus D)
FForeign Content 
The aggregate cost to the Exporter of any Goods (or components thereof) that were produced or manufactured outside the U.S., Services provided by third country-resident personnel, and foreign freight costs and foreign insurance included in the Net Contract Price for Goods exported from the U.S. (Such amount shall not include any Local Costs.)
GU.S. Content
(E minus F)
H.U.S. Content Percentage
(G divided by E, expressed as a percentage.)
IDisbursement Percentage
The lower of (i) 85% and (ii) the percentage in H. 


*EXIM can support a maximum of 30% of the Net Contract Price in local costs, which in this case is $24,000,000. The remaining $26,000,000 of local costs will fall outside of EXIM Bank support.