SUB-51% U.S. CONTENT CRITERIA
EXIM's mission is to support U.S. jobs through direct exports.
So the less U.S. content in your export, the more EXIM needs your help to justify the support.
Only for Transformational Export Area transactions involving <51% U.S. content, EXIM needs your help in two areas.
- Does your specific transaction meet at least one of the seven factors below?
- How will this specific transaction help you meaningfully expand U.S.-based jobs over the next 3-5 years?
For Transformational Export Area transactions involving <51% U.S. content, your specific transaction must meet at least 1 of the 7 Factors below.
Does the foreign project or procurement opportunity include a significant dollar value of exports of U.S. goods or services?
The specific opportunity is at least $100 million dollars or 5% of an exporter's annual sales.
Does the foreign project or procurement opportunity provide a substantial probability of future exports of U.S. goods or services by the applicant and/or other exporters?
Future expected U.S. export contracts; expected or contracted follow-on U.S. export sales; U.S.-based operations & maintenance or other service contracts. Future exports do not necessarily have to be financed by EXIM (though EXIM financing may be requested if appropriate).
Note: Further follow-on sales with less than 51% U.S. content may not be supported by EXIM unless at least one of the seven factors also applies to the new case. Any transaction, including follow-on sales with more than 51% U.S. content, must also qualify for financing based on standard EXIM criteria (e.g., creditworthiness, additionality, etc.). Approving one application with sub-51% U.S. content in no way obligates EXIM to approve follow-on sales with sub-51% U.S. content.
Does the foreign project or procurement opportunity provide a substantial benefit to the U.S. industrial base or technological capabilities in the industry, for example by helping to ensure that the United States maintains the capacity to produce a key product or service?
Examples: The transaction would keep a specific factory or factory line open; transaction utilizes the sole U.S. producer of a good or service.
Note: EXIM may seek input from outside stakeholders, as appropriate, to assess the impact on U.S. industrial base or technological capability. EXIM may accept written attestation from other government agencies that the deal will provide required substantial benefit to industrial base or technological capabilities.
Is the potential for U.S. export content for the foreign project or procurement opportunity limited, for example by reason of restrictions or conditions imposed by the terms of the project or procurement opportunity, or because of the economic infeasibility of sourcing particular goods or services from the United States?
Terms and conditions of project: These may include, but are not limited to, requirements for the use of certain technologies, standards, or suppliers that are not available in the United States.
Economic infeasibility: If the cost of sourcing from a large business in the United States raises prices by 20%, it will be considered economically infeasible to use such sources. If the cost of sourcing from a U.S. small business raises prices by 30%, it will be considered economically infeasible.
Does the foreign project or procurement opportunity provide export opportunities for small and medium-sized enterprises that might not otherwise be available?
EXIM will use the SBA small business definition for assessing this criteria. Transactions that are at least 51% small business by dollar volume will be presumed to meet this factor.
Were other sources of co-financing or reinsurance to cover non-U.S. content required by the project or procurement opportunity insufficient after due consideration?
Lack of co-financing with relevant foreign ECA; lack of private sector insurance appetite.
Does the foreign project have the potential to contribute to the establishment of a strategic U.S. export foothold in a key foreign market, as determined by EXIM, by demonstrating a successful implementation of a flagship project in markets that are dominated or otherwise detrimentally influenced by foreign competition?
Foreign competitor has significant market-share in the end-user country; U.S. company has limited sales currently to that country.
For Transformational Export Area transactions involving <51% U.S. content, EXIM needs an actionable written plan that describes a pathway to expand meaningfully its U.S.-based jobs in the supported sector in the subsequent 3-5 years.
As examples, this could include:
- Descriptions of the quantity of new hires made possible by this transaction
- Plausible plans to shift sourcing and/or relocate related supply chains to the U.S. from an offshore market
- Plausible plans to move away from a proposed plan to offshore jobs or procurement.
- Plans for investment in new U.S.-based facilities
If deemed appropriate, EXIM may share with and seek the Department of Commerce's feedback on the job creation plans submitted by U.S. exporters.
A company's substantial compliance with their plan may be a prerequisite to continued eligibility for the flexibilities set forth under the CTEP Program.