The Export-Import Bank's mission is to support U.S. jobs by facilitating U.S. exports through loans, loan guarantees, and insurance.
According to its policy, the Bank generally cannot finance defense goods and services unless they are nonlethal and primarily used for civilian rather than military purposes. The Bank monitors these "dual-use" items to ensure they are used mostly for civilian purposes.
We report each year on these dual-use exports. The bank did not finance any new dual-use exports in FY 2021. It continued to monitor use of two satellites sold to Mexico and received documents showing Mexico was in compliance with policy.
What GAO Found
As of August 2022, the Export-Import Bank (EXIM) was monitoring the end use of a single transaction that it had continued to finance in fiscal year 2020, as summarized below:
- Two satellites for the government of Mexico. EXIM had provided financing to the government of Mexico for (1) a fixed-service satellite that launched in December 2012 and became operational in February 2013 and (2) a mobile-service satellite that launched in October 2015 and became operational in December 2015. In 2022, 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 2021, according to EXIM authorization data and EXIM officials.
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 such dual-use 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 2020, as of August 2022, and (2) identifies any new dual-use exports that EXIM financed in fiscal year 2021. To address these objectives, GAO reviewed EXIM documentation and data on dual-use exports and interviewed EXIM officials.
For more information, contact Kimberly Gianopoulos at (202) 512-8612 or email@example.com.