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entitled 'Export Promotion: The Export-Import Bank's Financing of Dual-
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GAO-10-1052R: 

United States Government Accountability Office: 
Washington, DC 20548: 

September 15, 2010: 

Congressional Committees: 

Subject: Export Promotion: The Export-Import Bank's Financing of Dual- 
Use Exports: 

Since October 1994, the Export-Import Bank of the United States (Ex-
Im) has had statutory authority[Footnote 1] to provide loans, 
guarantees, and insurance to help finance U.S. exports of defense 
articles and services, provided that it determines these items are 
nonlethal and meant primarily for civilian use (dual-use).[Footnote 2] 
These exports, referred to as "dual-use" exports, include such items 
as vehicles that are used by the military primarily for civilian or 
humanitarian purposes. Legislation providing this authority requires 
us to report annually on the end uses of the dual-use exports financed 
by Ex-Im during the second preceding fiscal year. This report covers 
Ex-Im financing for dual-use exports in fiscal years 2007 through 2009. 

Ex-Im Did Not Finance Dual-Use Exports in 2007, 2008, or 2009: 

Ex-Im did not finance any dual-use exports in fiscal years 2007, 2008, 
or 2009. According to Ex-Im's Vice President of the Engineering and 
Environment Division, and our review of relevant data on Ex-Im 
authorizations, Ex-Im last financed dual-use exports in fiscal year 
2002. 

Agency Comments: 

We provided a copy of the draft version of this correspondence to Ex- 
Im. The agency commented orally that the information in the 
correspondence is accurate. 

Scope and Methodology: 

To determine the extent of financing and end uses of the dual-use 
exports financed in fiscal years 2007-2009, we reviewed Ex-Im data on 
dual-use determinations. In addition, we interviewed an Ex-Im official 
who monitors end user compliance with dual-use requirements, the Vice 
President of the Engineering and Environment Division. We determined 
that Ex-Im data on the end uses of dual-use exports financed by Ex-Im 
are sufficiently reliable for this review. 

We conducted our work from July 2010 to September 2010 in accordance 
with all sections of GAO's Quality Assurance Framework that are 
relevant to our objectives. The framework requires that we plan and 
perform the engagement to obtain sufficient and appropriate evidence 
to meet our stated objectives and to discuss any limitations in our 
work. We believe that the information and data obtained, and the 
analysis conducted, provide a reasonable basis for any findings and 
conclusions. 

We are sending copies of this report to interested congressional 
committees. We will also send copies to the President and Chairman of 
Ex-Im, the Secretary of Defense, and the Secretary of State. We will 
also make copies available to others upon request. In addition, this 
report will be available at no charge on the GAO Web site at 
[hyperlink, http://www.gao.gov]. 

If you or your staff has any questions about this report, please 
contact me at (202) 512-4347 or yagerl@gao.gov. Key contributors to 
this report were Celia Thomas, Assistant Director; Jennifer Young; 
David Dornisch; and Ernie Jackson. 

Signed by: 

Loren Yager:
Director, International Affairs and Trade: 

List of Committees: 

The Honorable Christopher J. Dodd:
Chairman:
The Honorable Richard C. Shelby:
Ranking Member:
Committee on Banking, Housing, and Urban Affairs:
United States Senate: 

The Honorable Patrick Leahy:
Chairman:
The Honorable Judd Gregg:
Ranking Member:
Subcommittee on the Department of State, Foreign Operations, and 
Related Programs:
Committee on Appropriations:
United States Senate: 

The Honorable Barney Frank:
Chairman:
The Honorable Spencer Bachus:
Ranking Member:
Committee on Financial Services:
House of Representatives: 

The Honorable Nita M. Lowey:
Chair:
The Honorable Kay Granger:
Ranking Member:
Subcommittee on State, Foreign Operations, and Related Programs:
Committee on Appropriations:
House of Representatives: 

[End of section] 

Footnotes: 

[1] The Export-Import Bank Reauthorization Act of 2006 (P.L. 109-438, 
Dec. 20, 2006) extended through September 30, 2011 provisions in 1994 
legislation (P.L. 103-428, Oct. 31, 1994) authorizing Ex-Im to finance 
certain dual-use exports. Under this legislation, Ex-Im can use up to 
10 percent of its total annual loan, guarantee, and insurance 
authority to support the sale of these dual-use exports. 

[2] According to Ex-Im, a dual-use export is eligible for financing if 
convincing evidence exists that the export is nonlethal in nature, the 
export will be used mainly for civilian activities, and the buyer or 
end-user provides certification to that effect. 

[End of section] 

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