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Section 2(e)(5) of the Export Import Bank Act of 1945, as amended, requires the Bank to submit, on an annual basis, a list to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, which designates sensitive commercial sectors and products with respect to which the provision of financing support by the Bank is deemed unlikely by the President of the Bank due to the significant potential for a determination that such financing support would result in an adverse economic impact on the United States. Pursuant to that requirement, the Bank submitted its Sensitive Commercial Sectors and Products List to Congress on July 10, 2014.

Sensitive Commercial Sectors And Products List

This list is issued in compliance with Section 2(e)(5) of the Export-Import Bank Act of 1945, as amended.


Steel: Additions to global raw steel-making capacity 1

Basis for inclusion on the list: General view that long-term surplus in raw steel-making capacity exists globally.


DRAM semiconductors: Additions to global DRAM semiconductor-making capacity.

Basis for inclusion on the List: Lack of consensus exists among industry observers on long-term forecasts of supply and demand for DRAM.In the past, DRAM experienced extended cyclical imbalance where supply exceeded demand over an extended period. Industry observers disagree about the sustainability of recent improvements in the supply/demand balance for DRAM.

Transaction Characteristics

U.S. market-oriented: Products associated with projects where a significant portion of the output directly produced by the project is destined for the U.S. market and will compete directly with U.S. production. Examples include flat glass and automotive engine parts produced in Mexico.

Basis for inclusion on the list: Likely net negative trade flow implication. 2

Note: Section 2(e)2 of EXIM Bank's charter prohibits the Bank from supporting transactions that will result in the production of a good subject to applicable trade measures. 3 To obtain EXIM Bank's economic impact procedures and a list of countries and products subject to applicable trade measures, please refer to the following websites:


1 As a general rule, transactions which involve replacing existing capacity are not subject to economic impact analysis beyond a check for applicable trade measures.

2 The U.S. market-oriented limitation may be mitigated based on a Market-Based Supplemental Analysis (MBSA) as contemplated by the April 2013 Economic Impact Procedures and Methodological Guidelines. Learn More >

3 Applicable trade measures include: (i) Final Antidumping or Countervailing Duty Orders; (ii) Suspension Agreements Arising from Antidumping or Countervailing Duty Injury Duty Investigations; and (iii) Section 201 Injury Determinations.

Questions and Answers on the Sensitive Commercial Sector and Product List

1. What criteria does EXIM Bank use in compiling this List?

This List comprises sectors, products, and transaction characteristics, which, based on EXIM Bank's experience with economic impact analysis would likely have a net negative impact on the U.S. economy. And for this reason, may not qualify for EXIM Bank' support.

2. How will EXIM Bank add items to the Sensitive Commercial Sector and Product List?

EXIM Bank staff monitors the effects of comments it receives from interested parties on transactions subject to economic impact analysis. When such comments are a contributing factor to stopping EXIM Bank financing, EXIM Bank staff will record: (i) the sector/product; (ii) relevant transaction characteristics (e.g., whether the markets targeted by the foreign producer are significant markets for U.S. producers, or whether the new production is coming online during a peak or trough in the business cycle); and (iii) the basis for objection cited by interested parties (e.g., potential displacement of U.S. production, or surpluses in global production capacity). The sensitive sector/product list is reviewed annually to determine if the list requires revision.

3. How will EXIM Bank remove items from the Sensitive Commercial and Products List?

EXIM Bank regularly reviews the list to determine if the reasons for including a sector or product on the list continue to exist. For example, EXIM Bank considers industry analyst' reports and consults industry experts to determine if a sector or product will continue to be in global oversupply.

4. What are the implications for obtaining EXIM Bank financing if a transaction establishes or expands production of a sector or product deemed to be sensitive?

Transactions that will establish or expand production of items included on the Sensitive Commercial Sector and Product List will be subject to significant scrutiny. While EXIM Bank support is not prohibited, applicable transactions have a lower likelihood of receiving EXIM Bank support and the case processing time is likely to be prolonged.