GAO-24-107589 EXIM Bank Dual-Use Exports
441 G St. N.W.
Washington, DC 20548
August 29, 2024
Report to Congressional Committees
Export-Import Bank: Monitoring of Exports with Dual Military and Civilian Uses as of 2024
The mission of the Export-Import Bank of the United States (EXIM) is to support the export of
U.S. goods and services through loans, loan guarantees, and insurance, thereby supporting
U.S. jobs. EXIM’s charter contains a general prohibition on support for defense articles and
services, with limited exceptions. In 1994, Congress gave EXIM statutory authority to support
exports of defense articles and services with both civilian and military uses, known as dual-use
exports, provided that EXIM determines the items are nonlethal and primarily for civilian use.
1
For example, in 2011, EXIM directly loaned about $64 million to a French company to finance a
dual-use export—a geosynchronous satellite,
2
mainly intended to supply civilian services such
as direct-to-home TV and broadband.
3
The Further Consolidated Appropriations Act, 2020 extended EXIM’s authority to finance dual-
use exports until December 31, 2026, when EXIM’s operating authority expires under 12 U.S.C.
§ 635f.
4
The law that granted EXIM’s dual-use authority in 1994 included a provision for GAO, in
consultation with EXIM, to report annually on the end uses of dual-use exports supported by
EXIM during the second preceding fiscal year.
5
This report (1) examines the status of EXIM’s
monitoring of dual-use exports that it continued to finance in fiscal year 2022, as of August
2024, and (2) identifies any new dual-use exports that EXIM financed in fiscal year 2023.
To address these objectives, we reviewed EXIM guidance and database records as well as
EXIM documentation related to an existing dual-use transaction. This documentation included a
1
Pub. L. No. 103-428, § 1(a), 108 Stat. 4375 (Oct. 31, 1994), codified at 12 U.S.C. § 635(b)(6)(I). This authority was
initially set to expire in 1997, but Congress has subsequently extended it.
2
A geosynchronous, or geostationary, satellite travels in earth’s orbit but remains in the same place over the earth.
3
According to EXIM’s Military Policy, the terms “defense articles” and “defense services” (including for dual-use
exports) are defined by using criteria based on the identity of the foreign end user, the nature of the item, and the use
to which the item will be put. If the items are sold to a military entity or designed primarily for military use, they are
presumed to be defense articles, unless proven otherwise. These exclusions apply even in the case of exports
associated with a military end user. For example, humanitarian items (such as ambulances and hospital supplies) are
not considered defense articles, even if sold to a military end user. In addition, even if an export is determined to be a
defense article, there are two statutory exceptions to the prohibition on EXIM’s support of defense articles that are
incorporated into EXIM’s Military Policy. The first exception applies to the dual-use exports exception discussed in
this report. It provides that any export that has been determined to be a defense article is eligible for financing as a
dual-use item if convincing evidence exists that the export is nonlethal in nature and will be used primarily for civilian
activities. 12 U.S.C. § 635(b)(6)(I). The second exception permits EXIM support for certain defense article or service
exports that are sold primarily for antinarcotics purposes. 12 U.S.C. § 635(b)(6)(B).
4
Further Consolidated Appropriations Act, 2020, Pub. L. No. 116-94, Div. I, Title IV, § 401(a), 133 Stat. 2534, 3021
(Dec. 20, 2019).
5
Pub. L. No. 103-428, § 1(a). GAO is required to report annually on the end uses of dual-use exports supported by
EXIM, which includes dual-use exports financed during the extended time frame established in the Further
Consolidated Appropriations Act, 2020.
