[Federal Register Volume 73, Number 137 (Wednesday, July 16, 2008)]
[Notices]
[Pages 40846-40848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-15838]


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DEPARTMENT OF COMMERCE

International Trade Administration


Mission Statement; Aerospace Supplier Development Mission to 
China; October 26-November 4, 2008

AGENCY: Department of Commerce.

ACTION: Notice.

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Mission Description

    The Aerospace Supplier Development Mission to China was developed 
in response to requests from many small and medium-sized enterprises 
(SMEs) supplying the aviation industry, and is intended to include 
representatives from a variety of U.S. aerospace industry manufacturers 
and service providers. The mission will introduce these suppliers to 
end-users and prospective partners whose needs and capabilities are 
targeted to each U.S. participant's strengths. Participating in an 
official U.S. industry delegation will enhance the companies' ability 
to secure meetings in China. The mission will include appointments and 
briefings in Beijing, Shanghai, Suzhou, and Guangzhou, some of China's 
major aerospace industry hubs, as well as participation in Airshow 
China in Zhuhai to conclude the mission. The mission participants will 
also have opportunities to interact extensively with CS China aviation 
specialists.

Commercial Setting

    The Chinese aerospace sector ranks among the world's most dynamic, 
going far beyond the country's massive investment in aircraft (mainland 
carriers anticipate doubling the size of their fleets to 1,500 by 2010, 
reaching 4,000 by 2025). Chinese aerospace companies have rapidly 
developed into serious players in the industry's global value chain. 
Chinese aerospace firms, including those linked to U.S. and European 
``primes,'' now frequently make their own sourcing decisions, 
participate as ``risk sharing partners'' in new airframe and engine 
development programs, or take on the role of first-tier suppliers on 
Chinese programs.
    The evolution of China's aerospace industry is part of a broader 
industry

[[Page 40847]]

trend toward supply chain consolidation and the embrace of lean 
manufacturing. Many traditional Tier 1 supplier responsibilities are 
being pushed down the supply chain to second- and third-tier suppliers. 
As the larger firms move into aerospace system integration, the lower-
tier suppliers have little choice but to globalize themselves. This 
involves supplying China with products and services that might 
historically have been provided to U.S. and European suppliers that 
have since shifted production. In many cases, once established in 
China, the first-tier firms require their supply chain partners to 
begin dealing directly with Chinese members of the supply chain. While 
extremely challenging for SME suppliers, these new relationships bring 
an added benefit--the opportunity for additional sales with other 
aerospace companies doing business in China.
    China Aviation Industry Corporation I and II (AVIC I and II), 
conglomerates of hundreds of companies, control the country's aerospace 
industry. Over the years, the main AVIC companies have formed joint-
venture companies with key Western aerospace partners. The larger AVIC 
companies also have so-called ``foreign divisions'' engaged in 
manufacturing, design and engineering for Western customers on a semi-
autonomous basis.

Mission Goals

    The goals of the Aerospace Supply Chain Development Mission to 
China are threefold: (1) To introduce U.S. companies to Chinese joint-
venture groups and Western original equipment manufacturers (OEMs); (2) 
to explore supplier opportunities under other aerospace programs 
(including Chinese programs and Western programs with Chinese firms 
``risk sharing''); and (3) to facilitate an effective U.S. presence at 
Airshow China.

Mission Scenario

    The mission's first stop is Beijing, home to AVIC's headquarters 
and the China National Aero-Technology Import and Export Corporation 
(CATIC), AVIC's trading and purchasing division. The second and third 
stops are Shanghai and nearby Suzhou, home to many AVIC companies 
(including the former MD-88 assembly site), AVIC joint-ventures, and 
autonomous Western OEMs. The fourth stop, Guangzhou, provides the 
opportunity to focus on Guangzhou Aircraft Maintenance Engineering 
Company Limited (GAMECO) as an example of a maintenance/repair/overhaul 
operation and a meeting with China Southern Airlines. The mission will 
conclude in nearby Zhuhai, at the China International Aviation and 
Aerospace Exhibition (known as Airshow China), the only Chinese 
aerospace exhibition endorsed by the Chinese central government. The 
last Airshow China, in 2006, showcased 52 aircraft and attracted some 
550 exhibitors from more than 33 countries, as well as 90,000 trade 
visitors and 1,500 journalists. CS Guangzhou will provide entry to the 
trade show, manage a booth, and organize one half day of meetings with 
business and industry contacts for each of the mission participants.
    Matchmaking efforts will involve coordination with the American 
Chamber of Commerce in China's U.S.-China Aviation Cooperation Program 
(ACP), a public/private partnership promoting technical, policy and 
commercial cooperation between the two countries' aviation sectors, and 
with other relevant groups, such as the Suzhou Economic Development 
Zone. Also, through an exclusive arrangement with Airshow China 
exhibition organizers, the mission participants will gain access to VIP 
receptions and additional assistance with matchmaking appointments at 
the show. U.S. participants will be counseled before, during, and after 
the mission by U.S. Export Assistance Center trade specialists, 
primarily by members of the Aerospace and Defense Technology Team.
    Participation in the Aerospace Supply Chain Development Mission to 
China will include the following:
     Pre-travel briefings/webinar on subjects ranging from 
Chinese business practices to security;
     Pre-scheduled meetings with potential partners, 
distributors, end users, or local industry contacts in Beijing, 
Shanghai, Suzhou, Guangzhou, and at Airshow China in Zhuhai;
     Transportation to airports in Beijing and Shanghai;
     Coach class airline ticket between Beijing and Shanghai;
     Bus transportation between Shanghai and Suzhou;
     Coach class airline ticket between Shanghai and Guangzhou;
     One Airshow China entry pass per company representative;
     Participation in industry receptions at Airshow China;
     Meetings with CS China aviation industry specialists in 
Beijing, Shanghai and Guangzhou.

                           Proposed Timetable
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Sunday, October 26, 2008.....  Participants arrive in Beijing on their
                                own schedule.
                               Afternoon briefing at Kerry Centre Hotel.
Monday, October 27, Tuesday,   Pre-scheduled matchmaking appointments,
 October 28.                    focusing on contacts at AVIC 1 and
                                CATIC.
                               Briefing on Civil Aviation Administration
                                of China (CAAC) standards and
                                regulations.
                               Roundtable with the ACP.
                               Networking reception.
Wednesday, October 29........  Flight to Shanghai.
                               Single Company Promotion/U.S. Aerospace
                                Suppliers' Technical Sales Forum.
                               Half day of one-on-one meetings.
Thursday, October 30.........  One-on-one appointments, visits to major
                                Shanghai Aerospace firms (e.g., SAIC).
                               Afternoon bus travel to nearby Suzhou.
                               Appointments, coordinated with the Suzhou
                                Economic Development Zone.
Friday, October 31...........  Appointments continue.
Saturday, November 1.........  Follow-up appointments, as needed, and
                                optional sightseeing.
Sunday, November 2...........  Flight to Guangzhou.
Monday, November 3...........  Networking breakfast with the American
                                Chamber of Commerce.
                               Meeting with GAMECO's Procurement
                                Department and China Southern Airlines'
                                Procurement Department, with technical
                                tour of the facilities.
                               Afternoon bus trip to Zhuhai
                                (approximately 1 hour).
                               Attend Airshow China's official opening
                                (early evening).
Tuesday, November 4..........  Pre-scheduled appointments at Airshow
                                China.
                               VIP reception (by special invitation).
                               Mission concludes in evening.

[[Page 40848]]

 
                               Participants free to depart Zhuhai via
                                the ferry to Hong Kong.
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Participation Requirements

    All parties interested in participating in the Aerospace Supplier 
Development Mission to China must complete and submit an application 
for consideration by the Department of Commerce. All applicants will be 
evaluated on their ability to meet certain conditions and best satisfy 
the selection criteria as outlined below. The mission will open on a 
first come first served basis to 10 qualified U.S. companies.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The participation fee will be $5,000 for large firms 
and $4,150 for a small or medium-sized enterprise (SME), which includes 
one principal representative.\*\ The fee for each additional firm 
representative (large firm or SME) is $600. Expenses for lodging, some 
meals, incidentals, and travel (except for in-country arrangements 
previously noted) will be the responsibility of each mission 
participant.
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    * An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing schedule reflects the Commercial Service's user fee 
schedule that became effective May 1, 2008 (for additional 
information see http://www.export.gov/newsletter/march2008/initiatives.html).
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Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least fifty-one percent U.S. content.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of a company's products or services to the 
mission's goals
     Consistency of the company's goals and objectives with the 
stated scope of the trade mission
     Timeliness of company's signed application and 
participation agreement
     Timely and adequate provision of information on company's 
products/services and market objectives, in order to facilitate 
appropriate matching with potential business partners
    Any partisan political activities (including political 
contributions) of an applicant are entirely irrelevant to the selection 
process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet Web sites, press releases to general and 
trade media, direct mail, broadcast fax, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows. Recruitment for the 
mission will begin immediately and conclude no later than August 29, 
2008. Applications received after that date will be considered only if 
space and scheduling constraints permit.

Contacts

    Mr. Eric Nielsen, ITA Aerospace and Defense Technology Team, 
Arizona U.S. Export Assistance Center, Tel: (520) 670-5808, E-mail: 
[email protected];
    Mr. William Lawton, ITA Aerospace and Defense Technology Team, 
Miami U.S. Export Assistance Center, Tel: (305) 526-7425, ext. 26, E-
mail: [email protected].

Eric Nielsen,
Director, Arizona U.S. Export Assistance Center.
[FR Doc. E8-15838 Filed 7-15-08; 8:45 am]
BILLING CODE 3510-DS-P