[Federal Register Volume 78, Number 214 (Tuesday, November 5, 2013)]
[Notices]
[Pages 66333-66336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-26400]


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DEPARTMENT OF COMMERCE

International Trade Administration


Aviation Trade Mission to Brazil From May 12-16, 2014

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration (ITA), U.S. and Foreign Commercial Service (CS) and 
Industry and Analysis are organizing an Aerospace and Aviation Trade 
Mission to Brazil from May 12-16, 2014. The purpose of the mission is 
to introduce U.S. firms to Brazil's rapidly expanding market for 
aerospace and aviation products and services, including airport 
equipment, air traffic management products and services, and aerospace 
equipment and parts, and to assist U.S. companies in the pursuit of 
export

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opportunities in this sector. The mission to Brazil is designed for 
U.S. aviation and aerospace manufacturers and service providers, 
particularly small- and medium-sized enterprises (SMEs), interested in 
long-term business opportunities in Brazil, as well as the trade 
associations/organizations that represent them. Target sectors holding 
high potential for U.S exporters include: aircraft parts (particularly 
for the aftermarket), business aviation, general aviation and 
helicopters, airspace and air traffic flow management, ground support 
equipment, baggage handling systems, meteorological information 
management, surveillance and satellite navigation, and airport/aviation 
security.
    Trade mission participants will have two days of one-on-one 
business appointments arranged by the CS in S[atilde]o Paulo, the 
business capital of Brazil. Trade mission participants will then have 
the option to have additional meetings arranged in Rio de Janeiro, Belo 
Horizonte, or Brasilia, where CS offices can arrange meetings with both 
private sector representatives and state and local government 
officials.
    The mission supports President Obama's National Export Initiative 
(NEI) and his goal of strengthening the U.S. economy and U.S. 
competitiveness through meaningful job creation. The mission will help 
new to market companies learn about the Brazilian aviation market and 
make initial contacts. The mission will help U.S. companies already 
doing business in Brazil to increase their footprint and deepen their 
business interests. The mission will also support the U.S.-Brazil 
Aviation Partnership, which was established to strengthen and expand 
the civil aviation relationship between the two countries.
    The mission will help participating firms and associations/
organizations gain market insights, make industry contacts, solidify 
business strategies, and advance specific projects, with the goal of 
increasing U.S. exports of products and services to Brazil. The mission 
will include one-on-one business appointments with pre-screened 
potential buyers, agents, distributors and joint venture partners; 
meetings with state and local government officials and industry 
leaders; and networking events. Participating in an official U.S. 
industry delegation, rather than traveling to Brazil on their own, will 
enhance the participants' ability to secure meetings in Brazil.

Commercial Setting

    Brazil has an established aerospace manufacturing sector and 
produces a wide range of aerospace products. Perhaps best known for 
producing regional jets, Brazilian manufacturers also make turboprops, 
military aircraft, agricultural aircraft, business aircraft, 
helicopters, and other general aviation aircraft. The most well-known 
Brazilian manufacturer is Embraer, which has delivered more regional 
jets than its only competitor (Canada's Bombardier) each year since 
2006. Brazilian firms are highly integrated into the global aerospace 
supply chain and have embarked on risk-sharing projects and joint 
ventures with foreign firms both in Brazil and abroad.
    Brazil is a major supplier to the United States' market, though it 
competes more in sales of final aircraft than in sales of parts and 
components. Indeed, Brazilian manufacturers claim to import a 
significant amount of parts and components from non-Brazilian 
suppliers, including suppliers in the United States. However, it was 
only in the 2000s that Brazil consistently became one of the top ten 
U.S. export markets for aerospace equipment, likely due to the 
increasing success of Embraer's regional jet and business aircraft 
programs. In 2012, U.S. firms exported $6.8 billion worth of aerospace 
products to Brazil.
    Brazil also has a complex domestic aviation industry, including a 
growing network of airports and services for commercial aviation and 
business aviation. Due to growing demand for all forms of air travel, 
as well the infrastructure demands of the 2014 World Cup and 2016 
Olympics, Brazil is launching improvements to about 270 regional 
airports. Brazilian states and cities also have specific plans to 
develop infrastructure for helicopters, in part because of the growth 
of the domestic oil and gas industry. Regional infrastructure projects 
are expected to begin in 2014. Information about additional 
infrastructure opportunities can be found at: http://export.gov/industry/aerospace/eg_main_059003.asp

S[atilde]o Paulo/S[atilde]o Jos[eacute] dos Campos

    With almost 20 million people, S[atilde]o Paulo is the largest city 
in Brazil, the largest city in the southern hemisphere and Americas, 
and the world's seventh largest city by population. It is the country's 
economic and financial center and traditional access point for 
companies entering the Brazilian market. S[atilde]o Paulo's Guarulhos 
airport is a major hub for international passenger traffic into Brazil 
and is home to maintenance organizations for several Brazilian and 
international airlines. The S[atilde]o Paulo metropolitan area is also 
home to major airlines AZUL and LATAM, a pan-Latin America airline 
formed in 2012 after the merger of Brazilian airline TAM and Chilean 
airline group LAN.
    50 miles from S[atilde]o Paulo is S[atilde]o Jos[eacute] dos 
Campos, a major Brazilian industrial center and home to Embraer, 
producer of commercial, military, and executive aircraft. In 2012, 
Embraer delivered 205 aircraft and closed the year with firm orders of 
185 aircraft valued at US$12.5 billion. The city is also home to one of 
Brazil's top engineering schools, the Aeronautical Institute of 
Technology, and several research institutions dedicated to aviation and 
space. More information about the aerospace cluster in S[atilde]o 
Jos[eacute] can be found at: http://www.aerospacecluster-brasil.com.br/english/default.aspx

Rio de Janeiro

    Rio de Janeiro will host the 2016 Summer Olympics Games. This will 
be the first Summer Olympics held during the host city's wintertime, as 
well as the first time a South American city will host the event. 
Unlike in London, the percentage of investments dedicated to 
transportation will be higher than investments dedicated to Olympic 
sports projects such as arenas and stadiums. Rio is also home to the 
Department of Airspace Control (DECEA), the branch of the Ministry of 
Defense responsible for all air traffic in Brazil, including civil and 
commercial traffic. Finally, Rio is home to Petrobras, Brazil's largest 
company and a significant global producer of oil and energy products.

Belo Horizonte

    Belo Horizonte is the capital of Minas Gerais, and Greater Belo 
Horizonte is the third largest metropolitan area in Brazil, after 
S[atilde]o Paulo and Rio. Belo Horizonte is a major industrial center 
with production centered on steel and steel products, since Minas 
Gerias is an iron and metal-rich area. Tancredo Neves, the states' main 
airport, is expected to become the third largest international gateway 
to Brazil and is enacting a 3-phase $2 billion plan to expand the 
runway system and terminal space. Belo Horizonte is also home to Lider 
Aviac[atilde]o, an air taxi, maintenance, and aircraft sales firm and 
the procurement and maintenance divisions of GOL, a major airline.

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Brasilia

    Brasilia is the capital of Brazil and is home to many government 
institutions responsible for the aerospace and aviation industries. 
These agencies include INFRAERO, a government agency that manages 63 
airports, 23 Aeronautical Telecommunication Station, 38 Units 
Techniques aeronautics and 34 cargo logistics terminals in Brazil; the 
Agencia Nactional de Aviacao Civil (ANAC), the civil aviation 
authority; and the Secretaria de Avia[ccedil][atilde]o Civil (SAC), a 
new entity that coordinates and supervises the other Brazilian civil 
aviation entities. In 2013, INFRAERO's new subsidiary, INFRAERO 
Services, will become operational. The new company's main goal is to 
support state and local governments in the management of regional 
airports.

Mission Goals

    The goals of the Aerospace and Aviation Trade Mission to Brazil are 
to provide U.S. participants with first-hand market information, and 
one-on-one meetings with business contacts, including potential end 
users and partners, so that they can position themselves to enter or 
expand their presence in the Brazilian market. As such, the mission 
will focus on helping U.S. companies and trade associations/
organizations obtain market information, establish business and 
government contacts, solidify business strategies, and/or advance 
specific projects.

Mission Scenario

    The mission will start in S[atilde]o Paulo with an opening briefing 
and a no-host dinner on Monday, May 12. The next day the participants 
will attend Gold Key business meetings and participate in an evening 
reception. On Wednesday, they will have additional Gold Key sessions. 
On Thursday, the delegates will have the option of traveling to a 
second city (Rio de Janeiro, Belo Horizonte, or Brasilia) for 
additional business meetings. U.S. participants will be counseled 
before and after the mission by CS Brazil staff.
    Participation in the mission will include the following:
     Pre-travel briefings on subjects from business practices 
in Brazil to security;
     Pre-scheduled meetings with government officials, 
potential partners, distributors, agents, end users and local industry 
contacts in S[atilde]o Paulo;
     Airport transfers in S[atilde]o Paulo;
     Participation in a networking reception in S[atilde]o 
Paulo.

Mission Timetable

Monday, May 12, 2014

     Country briefing by U.S. Embassy staff on programs and 
opportunities in the Brazilian aviation sector.
     No-host dinner with mission participants.

Tuesday, May 13, 2014

     Business meetings in S[atilde]o Paulo.
     Evening reception with Brazilian and U.S. industry 
representatives.

Wednesday, May 14, 2014

     Site visits and business meetings in S[atilde]o Paulo and/
or S[atilde]o Jos[eacute] dos Campos.

Thursday, May 15, 2014

     Optional travel to a second destination.
     Business meetings.

Friday, May 16, 2014

     Business meetings.
     Mission concludes.

Participation Requirements

    All parties interested in participating in the trade mission must 
complete and submit an application package for consideration by the 
DOC. All applicants will be evaluated, on a rolling basis, on their 
ability to meet certain conditions and best satisfy the selection 
criteria as outlined below. A minimum of 15 and maximum of 20 firms 
and/or trade associations or organizations will be selected to 
participate in the mission from the applicant pool.

Fees and Expenses

    After a firm or trade association/organization 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 for 
the Trade Mission will be $2,950.00 for a small or medium-sized 
enterprise (SME) \1\ and trade associations/organization; and $3,230.00 
for large firms. The fee for each additional firm representative (large 
firm or SME/trade organization) is $600. Expenses for travel, lodging, 
meals, and incidentals will be the responsibility of each mission 
participant. Interpreter and driver services can be arranged by the CS 
for additional cost. Delegation members will be able to take advantage 
of U.S. Embassy rates for hotel rooms.
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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 
(see http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). 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 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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Exclusions

    The mission fee does not include any personal travel expenses such 
as lodging, most meals, local ground transportation, except as stated 
in the proposed timetable, or air transportation from the U.S. to the 
mission sites and return to the United States. Business visas may be 
required. Government fees and processing expenses to obtain such visas 
are also not included in the mission costs. However, the U.S. 
Department of Commerce will provide instructions to each participant on 
the procedures required to obtain necessary business visas.

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. 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 certify that the products and services it seeks 
to export through the mission are either produced in the United States, 
or, if not, are marketed under the name of a U.S. firm and have at 
least fifty-one percent U.S. content. In the case of a trade 
association or organization, the applicant must certify that for each 
company to be represented by the association/organization, the products 
and/or services the represented company seeks to export 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.
    Each applicant must also certify that the products and services 
that it wishes to market through the mission would be in compliance 
with U.S. export controls and regulations. In the case of a trade 
association/organization, the applicant must certify that for each 
company to be represented by the association/organization, the products 
and services the represented company seeks to export through the 
mission would be in compliance with U.S. export controls and 
regulations.
    In addition, each applicant must:

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     Certify that it has identified to the Department of 
Commerce for its evaluation any business pending before the Department 
that may present the appearance of a conflict of interest;
     Certify that it has identified any pending litigation 
(including any administrative proceedings) to which it is a party that 
involves the Department of Commerce; and
     Sign and submit an agreement that it and its affiliates 
(1) have not and will not engage in the bribery of foreign officials in 
connection with a company's/participant's involvement in this mission, 
and (2) maintain and enforce a policy that prohibits the bribery of 
foreign officials.

Participation Criteria

    Targeted mission participants are U.S. companies or trade 
associations/organizations providing aviation equipment, technology and 
services that have an interest in learning more about the Brazilian 
market. Target sectors holding high potential for U.S exporters include 
aircraft parts (particularly for the aftermarket), business aviation, 
general aviation and helicopters, airspace and air traffic flow 
management, ground support equipment, baggage handling systems, 
meteorological information management, surveillance and satellite 
navigation, and airport/aviation security.
    The following criteria will be evaluated in selecting participants:
     Suitability of the company's (or, in the case of a trade 
association or trade organization, represented companies') products or 
services for the Brazilian market;
     Company's (or, in the case of a trade association or trade 
organization, represented companies') potential for business in Brazil, 
including likelihood of exports resulting from the mission;
     Consistency of company's (or, in the case of a trade 
association or trade organization, represented companies') products or 
services with the scope and desired outcome of the mission's goals.
    Additional factors, such as diversity of participant company size, 
type, location, and demographics, may also be considered during the 
review process. 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.

Timeline 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://export.gov/trademissions) and 
other Internet Web sites, press releases to general and trade media, 
direct mail, 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 March 5, 2014. The U.S. 
Department of Commerce will review applications and make selection 
decisions on a rolling basis. Applications received after March 5, 
2014, will be considered only if space and scheduling constraints 
permit.

Contacts

Industry and Analysis Washington DC, Alexis Haakensen, Aerospace 
Industry Specialist, Office of Transportation and Machinery, Phone: 
202-482-6235; [email protected];
U.S. Commercial Service Brazil, Marina Konno, U.S. Commercial Service, 
Sao Paolo, Brazil, Tel: + 55 +11-5186-7033, Email: 
[email protected].

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-26400 Filed 11-4-13; 8:45 am]
BILLING CODE 3510-DR-P