Export-Import Bank: Status of Dual-Use Exports as of August 2016
Fast Facts
The Export-Import Bank helps U.S. companies export their goods abroad by providing loans or loan guarantees, thereby sustaining U.S. jobs. Some of these goods could be used for both defense and civilian purposes ("dual-use"), but the Bank can only fund exports that are primarily used for civilian purposes. The Bank monitors those exports and annually determines whether they comply with its dual-use policies.
We found that the Bank is generally monitoring dual-use exports, but that it didn't make its determinations in a timely manner. Bank officials told us they were taking steps to address this issue.
Photo of Export-Import Bank headquarters.
Photo of Export-Import Bank headquarters.
Highlights
What GAO Found
The Export-Import Bank of the United States (Ex-Im) received five of six reports required by Ex-Im credit agreements on time for the three dual-use exports—goods that could be used for either defense or civilian purposes, such as satellites or construction equipment—it continued to finance in fiscal year 2014, and mostly followed its own guidance when the sixth report was not submitted on time. However, as of August 2016, Ex-Im had not made its annual determinations for the two dual-use exports for which a determination should be made. Ex-Im officials told GAO that they were taking steps to address the issues GAO identified. Ex-Im did not finance any new exports under its dual-use authority in fiscal year 2015.
Why GAO Did This Study
The mission of Ex-Im is to support the export of U.S. goods and services overseas through loans, loan guarantees, and insurance, thereby supporting U.S. jobs. Since 1994, Ex-Im has had authority to facilitate the financing of U.S. exports of defense articles and services, provided that it determines these items are non-lethal and primarily meant for civilian end use. GAO is required to report annually on the end uses of dual-use exports financed by Ex-Im during the second preceding fiscal year. This report (1) examines the status of Ex-Im’s monitoring of dual-use exports that it continued to finance in fiscal year 2014, as of August 2016; and (2) identifies any new dual-use exports that Ex-Im financed in fiscal year 2015.
Recommendations
GAO is not making any recommendations in this report.