Facebook pixel

 

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.

Example 
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. 

More information 

For more information on annual average content certification pre-export, please contact the Engineering and Environment Division at 202.565.3570.