The following Fact Sheet applies to all medium and long-term transactions
EXIM Bank's mission is to support U.S. jobs through exports. To fulfill its jobs mandate, EXIM Bank relies on U.S content as a proxy to evidence support for U.S jobs. Accordingly, there are foreign content eligibility criteria and limitations on the level of foreign content that may be included in EXIM Bank's financing package.
Eligibility
To be eligible for EXIM Bank financing, goods and services in a U.S. export contract must be shipped from the United States to a foreign buyer. Eligible goods and services in a U.S. export contract are those:
- Produced/originated entirely in the U.S.;
- Containing U.S.- or foreign-originated components; and
- Produced/originated entirely in a foreign country (other than the buyers country). 1
1 Please see Financing Fees for Ancillary Services regarding transaction-related banking, financial advisor, or technical and legal services that originate in a foreign country but may also be eligible for support.
Level of Support
The total level of support for a export contract will generally be the lesser of:
- 85% of the value of all eligible goods and services in the U.S. export contract; or
- 100% of the U.S. content in all eligible goods and services in the U.S. export contract.
For all transactions in the Congressionally defined Transformational Export Areas, EXIM may provide full financing as allowed by the OECD Arrangement if the proposed transaction is at least 51% U.S. content. For such transactions all content of People Republic of China (PRC) origin is deemed ineligible for EXIM financing.
The OECD Arrangement occasionally allows for deviations from the standard requirement of 15% cash payment. In such cases, EXIM support for eligible transactions may support more than 85% of the net contract price as long the transaction is at least 85% U.S. content.
EXIM Bank support for individual disbursements/shipments is based on the aggregate U.S. and foreign content percentages represented in an up-front Exporter's Certificate, irrespective of the relative amounts of U.S. and foreign content in any specific disbursement/shipment request. Goods transshipped from another country through the U.S. (including entry through a bonded warehouse) are Excluded Goods and are not considered eligible foreign content.
Note: Material changes in the amount of foreign content from the up-front certification must be notified to EXIM Bank and future disbursements will be adjusted so that only the value of the U.S. content is supported by EXIM Bank. Please contact Ex-Im Bank for additional information on this point.
An Example of EXIM's Bank's Medium- and Long-Term Foreign Content Policy (non-Transformational Export area)
This foreign content policy illustration is based on a hypothetical agricultural project with a $10.3 million U.S. export contract, of which $8.0 million is U.S. content and $2.3 million is foreign content. Of the Foreign Content, $2.0 million is eligible foreign content and the remaining $0.3 million is ineligible foreign content (because it was not shipped from the U.S.). Therefore, by adding the U.S. content ($8.0 million) with the eligible foreign content ($2.0 million), then the total eligible U.S. export contract is $10.0 million. EXIM Bank can guarantee or insure up to $8.0 million in financing for these exports.
For this transaction, aggregation by U.S. export contract means that EXIM Bank will disburse 80% (which is the U.S. share of the eligible portion of the U.S. export contract) of the invoice value(s) for each disbursement request, irrespective of the relative amounts of U.S. and foreign content in each disbursement request.
| Goods and Services in the U.S. Export Contract | U.S. Content | Foreign Content | Foreign Content Shipped from the U.S.? | Is Foreign Content Eligible for Inclusion in Ex-Im Bank's Financing Package |
|---|---|---|---|---|
| 1. Grain silo | $300,000 | $800,000 | Yes | Yes |
| 2. Combine harvester | $5,000,000 | $300,000 | Yes | Yes |
| 3. Dump Truck a. U.S. produced b. Foreign produced | $100,000 - 0 - | - 0 - $300,000 | N/A No | N/A No, because the good was not shipped from the U.S. |
| 4. Tractor | $1,000,000 | $800,000 | Yes | Yes |
| 5. Cameras | $1,600,000 | - 0 - | N/A | N/A |
| 6. Air Freight | - 0 - | $100,000 | N/A | Yes |
| Total: | $8,000,000 | $2,300,000 | (of which $300,000 is ineligible foreign content) | |
More information
For more information on EXIM Bank's Foreign Content Policy, please contact the Policy Group at 202.565.3762.
For information on EXIM Bank and its other products or policies, contact Business Development at 202.565.3946.