December 3, 2021

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Export-Import Bank: Status of End-Use Monitoring of Dual-Use Exports as of August 2021

13 min read
<div>Why GAO Did This Study EXIM's mission is to support the export of U.S. goods and services overseas through loans, loan guarantees, and insurance, thereby supporting U.S. jobs. In 1994, Congress passed legislation authorizing EXIM to facilitate the financing of U.S. exports of defense articles and services with both commercial and military applications, provided that the bank determines these items are nonlethal and primarily meant for civilian end use. Included in the same act was a provision for GAO, in conjunction with EXIM, to report annually on the end uses of dual-use exports financed by EXIM during the second preceding fiscal year. This report (1) examines the status of EXIM's monitoring of dual-use exports that it continued to finance in fiscal year 2019, as of August 2021; and (2) identifies any new dual-use exports that EXIM financed in fiscal year 2020. To address these objectives, GAO reviewed EXIM documentation and data on dual-use exports and interviewed EXIM officials. What GAO Found As of August 2021, the Export-Import Bank (EXIM) was monitoring the end use of a single transaction that it continued to finance in fiscal year 2019, as summarized below: Two satellites for the government of Mexico. A fixed service satellite was launched in December 2012 and became operational in February 2013, and a mobile service satellite was launched in October 2015 and became operational in December 2015. For 2021, EXIM received all documents from the government of Mexico on time and subsequently determined that Mexico was in compliance with the bank's dual-use policy. EXIM did not finance any new exports under its dual-use authority in fiscal year 2020, according to EXIM authorization data and EXIM officials. For more information, contact Kimberly Gianopoulos at (202) 512-8612 or gianopoulosk@gao.gov.</div>

Why GAO Did This Study

EXIM’s mission is to support the export of U.S. goods and services overseas through loans, loan guarantees, and insurance, thereby supporting U.S. jobs. In 1994, Congress passed legislation authorizing EXIM to facilitate the financing of U.S. exports of defense articles and services with both commercial and military applications, provided that the bank determines these items are nonlethal and primarily meant for civilian end use. Included in the same act was a provision for GAO, in conjunction with EXIM, to report annually on the end uses of dual-use exports financed by EXIM during the second preceding fiscal year.

This report (1) examines the status of EXIM’s monitoring of dual-use exports that it continued to finance in fiscal year 2019, as of August 2021; and (2) identifies any new dual-use exports that EXIM financed in fiscal year 2020. To address these objectives, GAO reviewed EXIM documentation and data on dual-use exports and interviewed EXIM officials.

What GAO Found

As of August 2021, the Export-Import Bank (EXIM) was monitoring the end use of a single transaction that it continued to finance in fiscal year 2019, as summarized below:

  • Two satellites for the government of Mexico. A fixed service satellite was launched in December 2012 and became operational in February 2013, and a mobile service satellite was launched in October 2015 and became operational in December 2015. For 2021, EXIM received all documents from the government of Mexico on time and subsequently determined that Mexico was in compliance with the bank’s dual-use policy.

EXIM did not finance any new exports under its dual-use authority in fiscal year 2020, according to EXIM authorization data and EXIM officials.

For more information, contact Kimberly Gianopoulos at (202) 512-8612 or gianopoulosk@gao.gov.

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