Exporters have the ﬂexibility, in consultation with EXIM Bank staff, to utilize annual average content certiﬁcation for recurring export sales. Using annual average content certiﬁcation, U.S. exporters may choose to calculate the average foreign content for each export (from a speciﬁc location) which is based on projected level of foreign costs. This calculation would then be applied to EXIM ﬁnancing for that speciﬁc export for the following year.
The beneﬁt to this methodology is that it provides exporters with increased effiency and reliability in estimating the amount of support the Bank may provide. Not only does this approach streamline the content-related documentary requirements for U.S. exporters, it also brings dependability to the content certiﬁcation process by helping facilitate the completion of the Exporter’s Certiﬁcate at the time of disbursement.
A half-dozen exporters already use the annual average content certiﬁcation ﬂexibility. Within this group each exporter has developed its own approach to the annual average content certiﬁcation process by working with EXIM Bank staff. Exports that have beneﬁtted from this approach include aircraft, agricultural equipment, and construction equipment.
A U.S. exporter of agricultural equipment has recurring export sales of its X5 tractor with EXIM Bank support. The X5 tractor is built at its manufacturing facility in Springﬁeld, Illinois, as well as at the exporter's facility in Portland, Oregon. The U.S. exporter would like to establish annual average content certiﬁcation for all X5 tractors that are manufactured in its Springﬁeld plant.
Based on the exporter’s experience last year, and its anticipated supply chain sourcing for the coming year, the exporter can conﬁrm that all parts of the tractor are originated/manufactured in the U.S. except the transmission, which is procured in a foreign country, but is installed in the tractor in Springﬁeld prior to shipment.
- Average eligible foreign content (cost of the foreign transmission) = $100,000
For medium- and long-term transactions that involve the export of the X5 produced in Springﬁeld, EXIM Bank would consider $100,000 of the sales price of the X5 as eligible foreign content.
Note that the annual average content certiﬁcation for the Springﬁeld-made X5 will not apply to the Portland manufactured X5 as it would require its own separate annual average content certiﬁcation.
For more information on annual average content certiﬁcation pre-export, please contact the Engineering and Environment Division at 202.565.3570.