Committee Approves Ex-Im Bank Bill on Textile Exports, Domestic Content, Etc.
On June 22, 2011, the House Financial Services Committee amended and approved H.R. 2072, a bill to reauthorize the Export-Import Bank through September 30, 2015, require it to promote textile and apparel component exports, ban certain Iran assistance, and develop domestic content guidelines. H.R. 2072 would also provide the bank with authority to finance certain non-lethal defense exports. Although the Committee ordered H.R. 2072 reported, the written Committee report has not yet been issued.
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Would Require Support for Textile & Apparel Component Exports, Etc.
One of the amendments adopted by the Committee at the mark-up would increase the Ex-Im Bank’s focus on textile industry assistance. This amendment would require textile industry representation on Ex-Im Bank’s Advisory Committee and require the Advisory Committee to Bank to consider ways to promote financing for the textile industry (including support for exports of textile components or inputs made in the U.S., etc.).
The amendment would also require the Bank to conduct a study of the extent to which the products offered by the Bank are available and used by manufacturers in the U.S. that export U.S. manufactured goods used a components in the global textile and apparel supply chains. In addition, the amendment would require a description of the Bank’s success in providing financing to the U.S. textile and apparel industry for exports of U.S. manufactured goods that are used as components in global textile and apparel supply chains.
Would Prohibit Financing for Projects Involving Certain Entities Involved with Iran
Another amendment adopted by the Committee at the mark-up was one to prohibit Ex-Im Bank assistance for projects involving an entity that has recently engaged in certain prohibited activities with respect to Iran.
Would Require Domestic Content Guide, Allow Non-Lethal Defense Articles, Etc.
In addition to the amendments adopted by the Committee and described above, the “Securing American Jobs Through Exports Act (H.R. 2072), would, among other things:
- require the Bank to establish, after notice, comment, etc., clear and comprehensive domestic content guidelines. (According to the Bank’s domestic content requirements, financing is provided for the lesser of 85% of the Net Contract Price or 100% of the U.S. content.);
- extend authority to provide financing for the export of non-lethal defense articles or services the primary end use of which will be for civilian purposes.
- give the Bank authority to use a portion (1.25%, subject to certain limits) of its surplus each FY to update its information technology systems;
- extend the authorization for the Bank’s Sub-Saharan Africa Advisory Committee for an additional 4 years; and
- increase the Bank’s financing cap from the current $100 billion to $160 billion for FY 2014 and each FY thereafter.
(See ITT’s Online Archives or 06/03/11 news, 11060324, for BP summary of Subcommittee-approved version of H.R. 2072 with links to other summaries on Ex-Im Bank reauthorization.)
H.R. 2072 as introduced available here
Amendments adopted at Committee mark-up available here