[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
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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