IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 31 Mar 2011 | Removal date: open ended
Still in force

Trade finance

On 9 February 2011, the UK Export Finance authority announced it would introduce new export support measures. These included:
 
Introduction of the Bond Support Scheme
On 31 March 2011, the UK government introduced its Bond Support Scheme providing partial guarantees to UK banks for export financing. In cases where banks issue bonds for export contracts, the scheme will guarantee up to 80% of the bond value. The facility will be managed by the UK Export Finance authority (UKEF).
The official statements by the government did not mention the size of the guarantees, nor did they specify any minimum or maximum value of the bonds. However, the concerned exporters will be required to carry out business within the UK and the export contract have to contain at least 20% UK content.
 
Introduction of the Export Working Capital Scheme
Furthermore, the Export Working Capital Scheme was introduced. It assists exporting companies to obtain working capital finance by partially (maximum 80%) guaranteeing the credit risks associated with the export working capital facilities. The eligibility criteria of the programme include operating in the UK as well the export contract containing at least 20% UK content. 
This programme was updated on 10 July 2015 to also include those entities supplying the exporting companies (cf. Related Measures).
 
Development of the Foreign Exchange Credit Support Scheme
The announcement of 9 February 2011 also included the development of a "foreign exchange credit support scheme to facilitate exporters' management of their exposure to foreign exchange rate movements, where exporters have taken out another ECGD 'Export Credits Guarantee Department' product, by sharing risks with banks."
In the Annual Report 2010-2011 of the ECGD (p.19), it has been mentioned that the programme has been launched. However, the report does not provide any further details.
 
Expansion of the Short Term Credit Insurance Product
Finally, the short term credit insurance product was extended to include a larger scope of exports. Previously, only the programme was restricted to exports of capital and semi-capital goods with that limitation being scrapped.
The scheme allows exporters to insure themselves against the risk of not being paid under an export contract. The programme applies to contracts with a maximum duration of 2 years. Exports to EU and high income countries (except for Greece) are not eligible for this product.
 
The list of affected tariff lines and sectors is based on the industries mentioned in the ECGD 2010-2011 report.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

120 Crude petroleum & natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271111 Natural gas
271121 Natural gas
142 Non-ferrous metal ores & concentrates
2606 Aluminium ores and concentrates.
260600 Aluminium ores and concentrates.
321 Pulp, paper & paperboard
4802 Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non perforated punch cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 48.01 or 48.03
480220 Paper and paperboard of a kind used as a base for photosensitive, heatsensitive or electrosensitive paper or paperboard
480240 Wallpaper base
480254 Weighing less than 40 g/m²
480255 Weighing 40 g/m² or more but not more than 150 g/m², in rolls
480256 Weighing 40 g/m² or more but not more than 150 g/m², in sheets with one side not exceeding 435 mm and the other side not exceeding 297 mm in the unfolded state
480257 Other, weighing 40 g/m² or more but not more than 150 g/m²
480258 Weighing more than 150 g/m²
480261 In rolls
480262 In sheets with one side not exceeding 435 mm and the other side not exceeding 297 mm in the unfolded state
480269 Other
331 Coke & semi-coke of coal, of lignite or of peat; retort carbon
2704 Coke and semicoke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
270400 Coke and semicoke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
334 Petroleum gases & other gaseous hydrocarbons, except natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271112 Propane
271113 Butanes
271114 Ethylene, propylene, butylene and butadiene
271119 Other
271129 Other
335 Petroleum jelly, coke or bitumen; paraffin wax & similar products
2712 Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured.
271210 Petroleum jelly
271290 Other
2713 Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals.
271311 Not calcined
271312 Calcined
271320 Petroleum bitumen
271390 Other residues of petroleum oils or of oils obtained from bituminous minerals
431 Engines & turbines & parts
8406 Steam turbines and other vapour turbines.
840610 Turbines for marine propulsion
840681 Of an output exceeding 40 MW
840682 Of an output not exceeding 40 MW
840690 Parts
8411 Turbojets, turbopropellers and other gas turbines.
841111 Of a thrust not exceeding 25 kN
841112 Of a thrust exceeding 25 kN
841121 Of a power not exceeding 1,100 kW
841122 Of a power exceeding 1,100 kW
841181 Of a power not exceeding 5,000 kW
841182 Of a power exceeding 5,000 kW
841191 Of turbojets or turbopropellers
841199 Other
435 Lifting & handling equipment & parts
8709 Works trucks, selfpropelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the fore
870911 Electrical
870919 Other
870990 Parts
442 Machine-tools & parts
8465 Machinetools (including machines for nailing, stapling, glueing or otherwise assembling) for working wood, cork, bone, hard rubber, hard plastics or similar hard materials.
846510 Machines which can carry out different types of machining operations without tool change between such operations
846591 Sawing machines
481 Medical & surgical equipment & orthopaedic appliances
9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scintigraphic apparatus, other electromedical apparatus and sighttesting instruments.
901811 Electrocardiographs
901812 Ultrasonic scanning apparatus
901813 Magnetic resonance imaging apparatus
901819 Other
901820 Ultraviolet or infrared ray apparatus
901831 Syringes, with or without needles
901832 Tubular metal needles and needles for sutures
901839 Other
901841 Dental drill engines, whether or not combined on a single base with other dental equipment
901849 Other
901850 Other ophthalmic instruments and appliances
901890 Other instruments and appliances
496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880212 Of an unladen weight exceeding 2,000 kg
880220 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg
8803 Parts of goods of heading 88.01 or 88.02.
880310 Propellers and rotors and parts thereof
880320 Undercarriages and parts thereof
880330 Other parts of aeroplanes or helicopters
880390 Other

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