Publicly available (non-fee-based) export promotion assistance is defined as: All statutory CS assistance that is generally available to the U.S. public free of charge and does NOT confer special benefits to any single U.S. business. This includes general counseling and market research, information that is regularly provided to the public/other members of the same industry, such as: off-the-shelf market intelligence, market entry requirements, standards/regulations and other basic export information.
- A U.S. entity seeking non-fee-based export promotion assistance is eligible2 if it is:
- a United States citizen; or
- a corporation, partnership or other association created under the laws of the United States or of any of its States, the District of Columbia, or any commonwealth, territory, or possession of the United States; or
- a foreign corporation, partnership, or other association, more than 95 percent of which is owned by persons described in (a) and (b) above;
THAT
- exports, or seeks to export, to a foreign market.
Please note that Commercial Advocacy is only available for qualified applicants; please see the Commercial Advocacy Assistance section of this document for the eligibility requirements.
2 Special considerations: Meeting these eligibility requirements gives U.S. entities access to free-of-charge CS market research and information. However, it is the decision of the client account manager as to how much and/or how often to provide free business counseling based on the entity’s export readiness, timing, resource availability, and other considerations.
Fee-based export promotion assistance is defined as all CS client assistance performed at the request or for the convenience of the recipient that confers special benefits to any single U.S. business beyond that which is provided to the general public. For example, this includes the CS Gold Key Matchmaking Service, which matches eligible U.S. businesses with foreign buyers.
To be eligible for fee-based export promotion assistance3, the following two criteria must be met:
Criterion I: Must be a U.S. exporter as defined below:
- a United States citizen; or
- a corporation, partnership or other association created under the laws of the United States or of any of its States, the District of Columbia, or any commonwealth, territory, or possession of the United States; or
- a foreign corporation, partnership, or other association, more than 95 percent of which is owned by persons described in (a) and (b) above;
THAT
Criterion II: exports, or seeks to export, a good or service produced in the United States as defined below:
- The product/service is of U.S. origin; or
- The product/service is at least 51% U.S. content based on the following calculation:
U.S. content for manufactured goods = (ex-factory price of a good) minus (aggregate value contributed by non-U.S. or foreign sources (e.g., costs or payments to foreign suppliers/providers/employees not resident in the United States)).
Example:
| Ex-factory price of good | | $100 |
|---|
| | Manufacturing costs (payment to foreign contract
manufacturer) | -$25 |
|---|
| | Value of all foreign-supplied parts/inputs/materials | -$20 |
|---|
| - aggregate value contributed by non-U.S. or foreign sources | Foreign administrative costs | -$2 |
|---|
| | Foreign transportation and logistics costs (up to factory door) | -$2 |
|---|
| | Licenses, royalties, and fees paid for foreign intellectual
property | -$0 |
|---|
| = U.S. content | | $51 |
|---|
U.S. content for services = (contract value of the service whether delivered in the U.S. or overseas) minus (aggregate value contributed by non-U.S. or foreign sources (i.e., costs or payments to foreign suppliers/providers/employees not resident in the United States)).
Example:
Contract value of the
service | | $100 |
|---|
| | Staffing costs of foreign subcontractor | -$25 |
|---|
| - aggregate value contributed by non-U.S. or foreign sources | Value of foreign inputs/materials used to execute contract | -$15 |
|---|
| | Foreign based legal and administrative costs | -$9 |
|---|
| = U.S. content | | $51 |
|---|
Please note that an eligibility determination must be performed for each product or service for which a client seeks fee-based export promotion assistance; a favorable determination for one product or service does not transfer to other products or services for which the client seeks assistance.
3 Limitations for tobacco or tobacco-related products, controlled substances such as marijuana/cannabis, munitions, and sexually related products or services apply. CS may decline assistance if a product or service raises significant concerns for the potential for use or misuse to commit a gross violation of human rights (GVHR) or violation of civil and political rights by a foreign government or foreign government-sponsored private entities in the potential target market. Please consult your Trade Specialist for details.
Commercial Diplomacy Assistance is defined as: CS work on behalf of a U.S. business, or industry, or in support of broader national economic and commercial interests, that is directed at foreign authorities and carried out in an official U.S. government capacity.
- A business entity4 seeking commercial diplomacy assistance is eligible if:
- it is
- a United States citizen; or
- a corporation, partnership, or other association created under the laws of the United States or of its States, the District of Columbia, or any commonwealth, territory, or possession of the United States; or
- a foreign corporation, partnership, or other association, with substantial United States ownership;
AND
- It does, or seeks to do, business in a foreign market, pending a foreign official decision or action needed to permit or facilitate that, or to remove impediments or threats to the business.
Special considerations: Meeting these eligibility requirements does not automatically mean that a Commercial Diplomacy Case must be opened. That is the decision of the client account manager (in consultation with other U.S. Government agencies), and based on the nature of the case, circumstances, timing, resource availability, and broader U.S. Government considerations.
4 May also refer to individual U.S. citizens, educational institutions, or other U.S. government agencies.
The goal of U.S. Government (USG) Commercial Advocacy is to help level the playing field on behalf of U.S. exporters, including U.S. businesses and workers, competing in foreign government projects or procurements against foreign firms and to promote the growth of exports of U.S. goods and services around the world. The Advocacy Center approves the provision of commercial advocacy for a bid or proposal if it determines that commercial advocacy is in the U.S. national interest. This is a short summary of commercial advocacy assistance. For a more detailed explanation, please see the USG Advocacy Policy.
U.S. Export Content: Commercial advocacy is presumed to be in the U.S. national interest if the bid or proposal meets a 50 percent U.S. content threshold. Bids with less than 50 percent U.S. export content may still be determined to be in the national interest.
In making its national interest determination in instances when not presumed, the Advocacy Center will consider, in addition to the percentage of total U.S. content (goods and services), the following:
- Whether the bid or proposal includes a significant dollar value of exports of U.S. goods or services (despite falling below the 50 percent U.S. content threshold);
- Whether the foreign project or procurement opportunity provides a substantial probability of future exports of U.S. goods or services by the applicant and/or other exporters;
- Whether the foreign project or procurement opportunity provides a substantial benefit to the U.S. industrial base or technological capabilities in the industry or industries concerned, for example by helping to ensure that the United States maintains the capacity to produce a key product or service;
- Whether the potential for U.S. export content for the foreign project or procurement opportunity is limited, for example by reason of restrictions or conditions imposed by the terms of the project or procurement opportunity, or because of the economic unfeasibility of sourcing particular goods or services from the United States; and
- Whether the foreign project or procurement opportunity provides export opportunities for small and medium-sized enterprises that might not otherwise be available.
Special Notes
- Multiple U.S. Applicants: Advocacy will be provided for all U.S. exporters who have applied for advocacy and their cases were deemed in the U.S. national interest.
- Foreign Ownership: Foreign ownership of U.S. exporters may be considered if the country of the foreign ownership limits or prohibits U.S. exports of the good or service subject to the bid to that country.
- Anti-Bribery Agreement: Applicants for commercial advocacy must agree that they have not and will not engage in the bribery of foreign public officials in connection with the project they wish to bid on and that they maintain and enforce a policy that prohibits the bribery of foreign public officials.
- Commercial Advocacy Vis-à-vis Other U.S. Policy Goals: Commercial advocacy must not be detrimental to achieving broader USG goals.
To request Commercial Advocacy assistance please apply through the Advocacy Center’s web portal, which contains the U.S. Government Advocacy Policy.
Investment Promotion Assistance is defined as fee- and non-fee-based client-facing services provided under the SelectUSA program and aimed at facilitating, attracting and retaining business investment in the United States. These services include facilitating new, expansion, and reshoring investment projects. SelectUSA assists:
- U.S. Economic Development Organizations (EDOs) to compete globally for investment by providing information, a platform for international marketing, and high-level advocacy, and
- International and U.S. business investors of all sizes to find the information they need to make decisions, connect to the right people at the local level, and navigate the federal regulatory system.
SelectUSA represents the entire United States and adheres to strict geographic neutrality. This means that while the program assists specific localities with individual promotional activities on a first-come, first-served basis, SelectUSA does not direct investment to one U.S. location over another U.S. location. SelectUSA also does not engage in activities that encourage foreign direct investment into the United States by state-owned entities, which are entities owned or controlled by any of the eleven foreign governments of countries that are currently designated under the U.S. unfair trade laws5 as non-market economies. A description of all SelectUSA investment promotion services is available on the SelectUSA website, along with contact information for SelectUSA’s international and domestic Portfolio Managers.
5 19 U.S.C. §1677(18).
GM/US&FCS, consistent with the broader United States Government (USG) foreign policy to promote human rights throughout the world, will decline export promotion, advocacy, and commercial diplomacy assistance when designated GM staff determines that a product or service raises significant concerns of potential for use or misuse to commit a gross violation of human rights (GVHR) or violation of civil and political rights by a foreign government or foreign government-sponsored private entities in the potential target market.
The term GVHR may refer to one or more of the following: Torture, Extrajudicial killing, Forced disappearance, and Rape under color of law. The term “Violation of Civil and Political Human Rights” refers to the denial of one or more of the following: protection from discrimination; freedom of thought, speech, religion, press, assembly, and movement; right to a fair trial and due process; and the following rights, as stated in the International Labor Organization (ILO) Declaration on Rights at Work: 6
- freedom of association;
- the effective recognition of the right to collective bargaining;
- the elimination of all forms of forced or compulsory labor;
- the effective abolition of child labor; and
- the elimination of discrimination with respect to employment and occupation.
Furthermore, in accordance with ITA’s Client Eligibility Policy (CEP), GM will review and may deny any requests for export promotion, commercial diplomacy, and/or advocacy assistance that involves products with potential risk for undermining U.S. foreign policy objectives, including those advancing national security objectives.
6As recognized in the Agreement between the United States of America, the United Mexican States, and Canada (commonly referred to as USMCA) Art. 23.3:1.
