Export-Import Bank: Status of Dual-Use Exports as of August 2016

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.