Products & Policies | Ex-Im Bank Policies

Shipping Requirements (MARAD)

Ex-Im Bank's shipping regulations are subject to Public Resolution 17 of the 73rd Congress (PR-17), which indicates that for certain Ex-Im Bank support a provision be made that the supported products are carried exclusively on U.S. vessels. The purpose of PR-17 is to support the U.S. strategic objective of maintaining a merchant marine sufficient to carry a substantial portion of its waterborne export and import foreign commerce.

The following transactions are subject to the provisions of PR 17:

1. Direct loans regardless of term or amount; and
2. Guarantees in excess of $20,000,000 (excluding Ex-Im Bank Exposure Fee) or the repayment period of greater than seven (7) years.

The following transactions are not subject to the provisions of PR 17:

1. Credit Guarantee Facilities, regardless of amount;
2. Short-term insurance, regardless of amount;
3. Medium-Term Insurance, regardless of amount or term;
4. Guarantees of up to $20,000,000 (excluding Ex-Im Bank Exposure Fee) and the repayment period of seven (7) years or less; and
5. Guarantees of up to $20,000,000 under the Environmental Exports Program, Transportation Security Export Program, or Medical Equipment Initiative, regardless of term.

Requests for Waivers of PR-17 may be submitted to the Maritime Administration, a branch of the U.S. Department of Transportation. Waivers can be obtained for a variety of reasons (e.g. if a U.S. vessel is unavailable or unsuitable, etc.); however, obtaining a waiver may be difficult as MARAD explicitly tries to keep waiver issuances to a minimum. If a waiver is obtained, goods shipped on vessels of non-U.S. registry are eligible for financing by Ex-Im Bank.

Only exports shipped on ocean-going vessels must follow the U.S. shipping requirements since the purpose of PR-17 is to maintain a viable U.S. merchant marine.

• For more information: Maritime Adminstration (MARAD)

Last updated: July 2010