The international trading system is critical to U.S. economic and national security. Consequently, the U.S. government gives high priority to programs that bolster the security of systems that support the movement of passengers and cargo between countries.
The Export-Import Bank of the United States (EXIM Bank) has responded to the challenge with the Transportation Security Exports Program (T-SEP). This initiative provides enhanced financing support for U.S. exports that are related to international transportation security.
Specifically, EXIM Bank will provide the following enhancements to its normal support for eligible transportation security transactions under its medium- and long-term insurance, guarantee and loan programs:
- Local cost¹ coverage up to 30 percent of the Net Contract Value².
- Maximum allowable repayment terms permissible under OECD guidelines (unless restricted by the EXIM Bank Country Limitation Schedule).
These enhancements are intended to facilitate additional purchases of U.S. exports related to transportation security by international buyers. Eligible exports fall in one of two categories: (1) "Transportation Security Exports" or (2) exports related to "Foreign Transportation Security Projects."
Transportation Security Exports
These products and services are designed specifically to enhance and support the security of international transportation systems and include machinery, equipment, goods and services designed to:
- Screen, analyze and identify risks related to cargo, containers, baggage, and passengers being moved through the international transportation system;
- Collect, analyze, monitor, and report information related to security of international transportation of passengers and cargo;
- Identify and examine high-risk containers, assuring in-transit integrity, and providing advance electronic information on containers to customs, port, and shipping officials as early as possible in the supply chain; and/or
- Combat international aircraft and ship piracy and enhance airport and port security.
Examples of products and services that may be eligible for T-SEP include:
- Equipment related to the identification, tagging, and screening of cargo;
- Vehicles and protection equipment designed for the secure transport of cargo;
- Fingerprint and facial recognition technology; biometric technology; and digital identification solutions that integrate image and data capture;
- Explosives detection equipment; x-ray inspections systems for persons, cargo and parcels; security x-ray scanners and detectors; and optoelectronic security devices;
- Security systems integration;
- Products used to provide bar code labeling, personal identification and specialty printing solutions for enhanced transportation security; and
- Security solutions for computer systems, including virus protection, firewalls, and virtual private networks, vulnerability management and intrusion detection as related to foreign transportation security projects.
¹Local costs are the value of goods and services originating in the country of the buyer or end-user.
²Net Contract Value is equal to the exporter's contract value less the value of items not shipped from the U.S. and less any Local Costs included in the contract value.
Foreign Transportation Security Projects
These are foreign projects designed to improve the security of international transportation of passengers and cargo. Transactions are generally not limited by size. Eligibility is subject to existing EXIM Bank policies, including foreign content guidelines and adherence to the prohibition of EXIM Bank support for defense articles and defense services. Other limitations may apply in cases where the buyer is determined to be a security force (i.e., a law enforcement agency such as the national or municipal police, or an entity operating under the authority of the military or defense ministry).