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How To: Calculate U.S. Content for Small Business Products (pt.1)
May 23, 2017 Tatiana Bertolo, Office of Small Business

EXIM Bank's mission is to help grow U.S. jobs through exports. The U.S. content in EXIM supported exports helps ensure that U.S. jobs benefit from the Bank's products. EXIM offers two short-term (i.e., one year products) - export credit insurance and the working capital loan guarantee. To qualify for our short-term programs, a small business must meet the following criteria:

  • Each product must be shipped from the U.S. to a foreign buyer; and
  • Each product must have more than 50% U.S. content based on all direct and indirect costs, including but not limited to labor, materials, research and administrative costs, exclusive of profit; or
  • The aggregate content of all products in an invoice* must be more than 50% U.S. based on all direct and indirect costs, including but not limited to labor, materials, research, and administrative costs, exclusive of profit.; or
  • If the U.S. content of any product or aggregate U.S. content of all products in an invoice is 50% or less, only the U.S. content is eligible.

Please Note: Value that is added after export from the U.S., as well as foreign charges such as import duties, taxes, and inland freight are excluded from cover.

If the product or the aggregate products in a single invoice meets the more than 50% U.S. content eligibility threshold described above, the entire gross invoice value (sales price) is normally eligible for coverage at the applicable percentage.

Calculation Example

Below is an example on how to calculate U.S. content for products:

 

Labor, Materials and
Direct Overhead

Total Labor,
Materials and
Direct Overhead

Indirect Costs

Total
U.S. Costs

All Costs

Sales Price
(incl. profit)

Item

Made in?

U.S.
Labor & 
Materials

Foreign Labor
& Materials

U.S.
Marketing

Misc
Foreign 

stethoscopes

U.S.

$6,000

$5,000

$11,000

$3,000

$500

$9,000

$14,500

$17,400

Small Business: This item is eligible for 100% of the Sales Price ($17,400) because eligible U.S. content** ($9,000/$14,500=62%) is more than 50%.

Many companies self-certify to determine if they meet EXIM’s U.S. content policy; however, there are companies that do a supply chain analysis to help determine U.S. content - https://www.certified.bz/

Learn More

EXIM Bank provides financing solutions to help your small business increase its foreign sales while mitigating the risk when dealing with foreign transactions. To speak to your local EXIM about whether your small business is eligible for EXIM Bank products or if you have U.S. content questions, please click below:

Get a Free Export Finance Consultation Today!

*If the small business exporter opts to aggregate multiple products in a single invoice, a Content Report is required.
** Small Business Content Eligibility: The content calculation to determine eligibility includes all costs.