U.S. Flag Shipping Requirements
Ex-Im Bank's shipping requirements are based on Public Resolution 17 of the 73rd Congress (PR-17) concerning U.S. flag shipping of certain U.S. government agency supported export cargos.
Shipping on U.S. flag vessels is required for the following Ex-Im Bank transactions:
- Direct loans regardless of term or amount; and
- Guarantees in excess of $20,000,000 (excluding Ex-Im Bank Exposure Fee) or the repayment period of greater than seven (7) years.
The following transactions are exempt from U.S. flag shipping requirements:
- Credit Guarantee Facilities, regardless of amount;
- Short-term insurance, regardless of amount;
- Medium-Term Insurance, regardless of amount or term;
- Guarantees of up to $20,000,000 (excluding Ex-Im Bank Exposure Fee) and the repayment period of seven (7) years or less; and
- Guarantees of up to $20,000,000 under the Environmental Exports Program, Transportation Security Export Program, or Medical Equipment Initiative, regardless of term.
The U.S. Maritime Administration (MarAd) offers facilitation services to assist exporters and foreign buyers with obtaining suitable shipping arrangements on U.S.-flag vessels. MarAd may (as part of the facilitation process) work with shippers and U.S.-flag carriers to identify any flexibility in schedules, rates, routes and capacity that would facilitate U.S.-flag vessel availability. In particular, Ex-Im Bank and MarAd encourage the use of Advance Shipping Plans, Booking Subject to Completion and Service Contracts; please refer to a description of these options in www.marad.dot.gov/MarAdShippingGuidanceEx-ImBank.
U.S.-flag shipping costs are eligible for Ex-Im Bank financing support as a U.S. services export.
Ex-Im Bank strongly encourages exporters and foreign buyers who anticipate receiving a financing commitment from Ex-Im Bank to contact U.S. flag carriers as early as possible to obtain bids for transporting their ocean-bound cargos in order to obtain the most favorable rates and shipping schedule, and to request MarAd facilitation and assistance in identifying available U.S.-flag carriage. Under some limited circumstances, Ex-Im Bank may approve financing of goods shipped on foreign-flag vessels pursuant to a MarAd certification of unavailability of U.S.-flag carriage or other MarAd determination. Shippers should submit requests for such a certification or determination to MarAd pursuant to the criteria and procedures set forth at www.marad.dot.gov/MarAdShippingGuidanceEx-ImBank. Note that foreign flag shipments eligible for financing under a MarAd reachback determination are limited to 10% of the US ocean-going cargo and financed at 80% of what Ex-Im Bank would ordinarily allow; accordingly, Ex-Im Bank encourages exporters/shippers to enter into compensatory shipping commitments in respect of any previously shipped foreign-flag cargos.
Only exports shipped on ocean-going vessels must follow the U.S. shipping requirements since the purpose of PR-17 is to maintain a viable U.S. merchant marine.
- For more information: Maritime Adminstration (MARAD)
- www.marad.dot.gov/MarAdShippingGuidanceEx-ImBank
Ex-Im Bank's shipping requirements are based on Public Resolution 17 of the 73rd Congress (PR-17) concerning U.S. flag shipping of certain U.S. government agency supported export cargos.
Shipping on U.S. flag vessels is required for the following Ex-Im Bank transactions:
- Direct loans regardless of term or amount; and
- Guarantees in excess of $20,000,000 (excluding Ex-Im Bank Exposure Fee) or the repayment period of greater than seven (7) years.
The following transactions are exempt from U.S. flag shipping requirements:
- Credit Guarantee Facilities, regardless of amount;
- Short-term insurance, regardless of amount;
- Medium-Term Insurance, regardless of amount or term;
- Guarantees of up to $20,000,000 (excluding Ex-Im Bank Exposure Fee) and the repayment period of seven (7) years or less; and
- Guarantees of up to $20,000,000 under the Environmental Exports Program, Transportation Security Export Program, or Medical Equipment Initiative, regardless of term.
The U.S. Maritime Administration (MarAd) offers facilitation services to assist exporters and foreign buyers with obtaining suitable shipping arrangements on U.S.-flag vessels. MarAd may (as part of the facilitation process) work with shippers and U.S.-flag carriers to identify any flexibility in schedules, rates, routes and capacity that would facilitate U.S.-flag vessel availability. In particular, Ex-Im Bank and MarAd encourage the use of Advance Shipping Plans, Booking Subject to Completion and Service Contracts; please refer to a description of these options in www.marad.dot.gov/MarAdShippingGuidanceEx-ImBank.
U.S.-flag shipping costs are eligible for Ex-Im Bank financing support as a U.S. services export.
Ex-Im Bank strongly encourages exporters and foreign buyers who anticipate receiving a financing commitment from Ex-Im Bank to contact U.S. flag carriers as early as possible to obtain bids for transporting their ocean-bound cargos in order to obtain the most favorable rates and shipping schedule, and to request MarAd facilitation and assistance in identifying available U.S.-flag carriage. Under some limited circumstances, Ex-Im Bank may approve financing of goods shipped on foreign-flag vessels pursuant to a MarAd certification of unavailability of U.S.-flag carriage or other MarAd determination. Shippers should submit requests for such a certification or determination to MarAd pursuant to the criteria and procedures set forth at www.marad.dot.gov/MarAdShippingGuidanceEx-ImBank. Note that foreign flag shipments eligible for financing under a MarAd reachback determination are limited to 10% of the US ocean-going cargo and financed at 80% of what Ex-Im Bank would ordinarily allow; accordingly, Ex-Im Bank encourages exporters/shippers to enter into compensatory shipping commitments in respect of any previously shipped foreign-flag cargos.
Only exports shipped on ocean-going vessels must follow the U.S. shipping requirements since the purpose of PR-17 is to maintain a viable U.S. merchant marine.
- For more information: Maritime Adminstration (MARAD)
- www.marad.dot.gov/MarAdShippingGuidanceEx-ImBank