[Federal Register Volume 75, Number 98 (Friday, May 21, 2010)]
[Notices]
[Pages 28547-28548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12205]


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DEPARTMENT OF COMMERCE

International Trade Administration


Aerospace Supplier Mission to Russia

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The U.S. Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service, is organizing an 
Aerospace Supplier Mission to Moscow, October 3-5, 2010 and to 
Ulyanovsk October 5-7 (returning to Moscow on October 8th for departure 
to the United States). This aerospace mission, to be led by a senior 
U.S. Department of Commerce official, is designed to provide U.S. 
aerospace companies (particularly Small and Medium-Sized Enterprises) 
with a highly efficient and cost-effective opportunity to establish 
profitable commercial relationships with prospective agents, 
distributors and end-users in Russia's aerospace market. Participating 
U.S. companies will receive market intelligence briefings by Russian 
industry experts, information on how to do business in Russia, 
networking opportunities and most importantly, pre-scheduled, one-on-
one meetings with Russian aerospace company representatives. Mission 
participants will also benefit from visiting key local aerospace 
original equipment manufacturers and will have the opportunity to speak 
with procurement managers about supply chain opportunities. This 
mission is an ideal opportunity for U.S. aerospace companies to gain 
valuable international business experience in a rapidly growing market. 
This mission presents strong potential for success with the ongoing 
support of the U.S. Commercial Service in Russia.

Commercial Setting

    With over 140 million consumers, a growing middle class, and 
significant infrastructure needs, Russia remains one of the most 
promising markets for U.S. exporters. In 2009, per capita personal 
disposable income ($4,830) and GDP ($15,200) were the highest among the 
BRIC countries. Prior to the global economic crisis, during which 2009 
GDP declined 7.9%, Russia had a nine-year run of continuous rapid 
economic expansion, with GDP growing approximately 7% annually. Most 
domestic and international experts believe that Russia emerged from 
recession in the third quarter of 2009; forecasts for 2010 growth in 
GDP range from 3.3% to 6.2%. Experts also expect that market conditions 
for U.S. and other exporters will improve as the recovery picks up 
speed.

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                                                                                                       2010
                           $ millions                                  2008            2009         (estimate)
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Total Market Size...............................................           2,812           4,287           6,067
Total Local Production..........................................           3,100           3,777           4,476
Total Exports...................................................           2,326           2,288           2,250
Total Imports...................................................           2,038           2,798           3,841
Imports from the U.S............................................             513             597             694
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    The Russian aviation industry remains an important strategic 
industry and a promising market for foreign suppliers of aircraft 
equipment. In 2009, state financing of the industry increased twenty-
fold as compared with 2004. The Russian government plays an active role 
in supporting the industry. United Aircraft Corporation (UAC), a state-
controlled corporation established in 2006, spearheads the development 
of the national aviation industry.
    In 2009, the Russian government allocated 19.45 billion rubles 
($644 million) to the development of the industry under a federal 
program. In addition to traditional types of support, such as direct 
contributions to UAC's authorized capital and interest rate subsidies 
on modernization loans, the government also extended new subsidies for 
loans to support innovation and investment projects. This all signals 
an increased interest by Russian OEMs and tier suppliers to consider 
new procurement, which in turn opens broad prospects for U.S. suppliers 
of aircraft systems, components, machine tools and materials.
    Since the Russian aviation industry consists of several intertwined 
industries (airframe, helicopter, engine building) and submarkets 
(OEMs, tier suppliers, distributors), opportunities for U.S. suppliers 
are not limited simply to a certain type of product, but cut across a 
variety of products along the production chain. These opportunities 
range from advanced machine tools and aviation materials to software, 
small and large components and spare parts, and complete on-board 
systems.

Mission Goals

    The trade mission's goal is to introduce U.S. exporters of 
aerospace supply chain products to potential end-users and partners, 
including potential agents, distributors, and licensees, with the aim 
of creating business partnerships that will contribute to increasing 
U.S. exports to the Russian aerospace market, particularly the aircraft 
and aircraft parts market. The trade mission's purpose is to advance 
ITA's goal to broaden and deepen the U.S. exporter base by providing 
individual participants with opportunities to achieve aerospace export 
success in Russia.

Mission Scenario

    Participants in the mission to Russia will benefit from a full 
range of business facilitation and trade promotion services provided by 
the U.S. Commercial Service in Russia, including: Meetings with 
individuals from both the public sector and private business. 
Participants will receive a briefing by Russian experts on the local 
aerospace market, as well as an overview of the country's economic and 
political environment and how to do business in the complex Russian 
market. The mission will include one-to-one business meetings between 
U.S. participants and potential Russian end-users and partners, and 
site visits to aircraft manufacturing facilities and aerospace original 
aerospace

[[Page 28548]]

manufacturers, where companies will have the opportunity to meet senior 
OEM representatives and learn about planned projects and expected 
procurement needs. A networking event will be planned as well, if time 
and budget considerations allow.

Timetable

    The proposed schedule allows for about two days in Moscow and 
possibly two days in Ulyanovsk.

October 3 (Sunday) Mission members arrive in Moscow
Moscow Sightseeing and Group Dinner
October 4 (Monday) Morning: U.S. Embassy/Commercial Service Briefing
Moscow Presentations by local experts
    Afternoon: Individual Meetings with potential Russian partners
    Evening: Possible Networking Event
October 5 Morning: Individual Meetings with potential Russian partners
(Tuesday) Afternoon: Site Visits
Moscow Evening: Depart for Ulyanovsk
October 6 Morning: Presentation by Ulyanovsk Regional Government
(Wednesday) Afternoon: Site Visits
Ulyanovsk Evening: Cultural program
October 7 Morning: Individual company meetings
(Thursday) Afternoon: Individual company meetings
Ulyanovsk Evening: Depart for Moscow
October 8 (Friday) Debriefing at U.S. Commercial Service Office
Moscow Departure for Airport

Participation Requirements

    All parties interested in participating in the Commercial Service 
Aerospace Supplier Development Mission to Russia must complete and 
submit an application package 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. A minimum of ten and a maximum of fifteen companies will be 
selected to participate in the mission from the applicant pool.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
participation fee paid to the U.S. Department of Commerce is required. 
The participation fee for one company representative will be $5,250 for 
small or medium-sized enterprises (SME) \1\ and $6,575 for large 
companies, which will cover one representative.\2\ The fee for each 
additional firm representative (large firm or SME) is $250. Expenses 
for travel-airfare, lodging, in-country transportation (except for 
airport transfers and bus transportation to/from group meetings and air 
travel from Moscow to Ulyanovsk and back to Moscow), meals and 
incidentals will be the responsibility of each mission participant.
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations.
    \2\ Parent companies, affiliates, and subsidiaries will be 
considered when determining business size. The dual pricing reflects 
the Commercial Service's user fee schedule that became effective May 
1, 2008.
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Conditions for Participation

     An applicant must submit a completed and signed mission 
Participation Agreement and a completed Market Interest Questionnaire, 
which must include adequate information on the company's products and/
or services, primary market objectives, and goals for participation. If 
the Department of Commerce receives an incomplete application, the 
Department may reject the application, request additional information, 
or take the lack of information into account when evaluating the 
applications.
     Each applicant must also certify that the products and 
services to be promoted through the mission are either produced in the 
United States or marketed under the name of a U.S. firm and have at 
least 51 percent U.S. content of the value of the finished product or 
service.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of the company's products or services for the 
Russian aerospace market;
     Applicant's potential for business in Russia, including 
the likelihood of exports resulting from the mission;
     Consistency in the applicant's goals and objectives with 
the stated scope of the mission.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during 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, e-mail, direct mail, broadcast fax, notices by industry 
trade associations and other multiplier groups, and publicity at 
industry meetings, symposia, conferences, and trade shows. CS Moscow 
will conduct a webinar on aerospace opportunities in the Russian market 
in May 2010; the mission will be promoted during the webinar as well. 
The International Trade Administration will explore and welcome 
outreach assistance from other interested organizations, including 
other U.S. Government agencies.
    Recruitment for the mission will begin immediately and will close 
on June 30, 2010. The U.S. Department of Commerce will review all 
applications immediately after the deadline. We will inform applicants 
of selection decisions as soon as possible after June 30, 2010. 
Applications received after the deadline will be considered only if 
space and scheduling constraints permit.
    Information can also be obtained by contacting the mission contacts 
listed below:

Contacts

    U.S. Commercial Service:

Diane Mooney, Director, Seattle USEAC, Tel: 206-553-5615, ext. 236, 
FAX: 206-553-7253, E-mail: [email protected];
Vladislav Borodulin, Commercial Specialist, CS Moscow, Tel: 7 (495) 728 
5235, FAX: 7 (495) 728 5585, [email protected];
Ilona Shtrom, Commercial Officer, CS Moscow, Tel: 7 (495) 728 5306, 
Tel: 7 (495) 728 5585.

Natalia Susak,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-12205 Filed 5-20-10; 8:45 am]
BILLING CODE 3510-FP-P