[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Proposed Rules]
[Pages 49904-49908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17414]


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DEPARTMENT OF COMMERCE

International Trade Administration

15 CFR Chapter III

[Docket No.: 160606489-6489-01]
RIN 0625-AB07


Clarification and Update of the Trade Fair Certification Program

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Advance notice of proposed rulemaking (ANPRM).

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SUMMARY: The U.S. Department of Commerce (Commerce) is intending to 
update the Trade Fair Certification Program, which recognizes and 
endorses U.S. participation in selected, privately organized, foreign 
trade fairs, in the coming months. Proposed changes will be announced 
through the Federal Register and comments will be solicited and 
reviewed before a final rule is issued. This ANPRM solicits feedback on 
some of the concepts Commerce is considering for the update, and 
reiterates the requirements, procedures, and application review 
criteria of the current Trade Fair Certification Program, originally 
published April 30, 1993. The purpose of this document is to reiterate 
existing terms in the 1993 document in order to inform the public of 
proposed guidelines. The concepts being considered for updating the 
program can be found in the last section of the Supplementary 
Information section of this document.

DATES: Comments on the proposed changes to the Program are due 20 days 
upon the date of publication in the Federal Register.

[[Page 49905]]


ADDRESSES: You may submit comments, identified by the regulations.gov 
docket number ITA-2016-0005, by any of the following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal. Go to www.regulations.gov/#!docketDetail;D=ITA-2016-0005 click the ``Comment Now'' icon, complete 
the required fields, and enter or attach your comments.
     Mail: Vidya Desai, Senior Advisor, Trade Promotion 
Programs, U.S. Department of Commerce, 1300 Pennsylvania Ave NW., 
Mezzanine Level Suite 800, Washington, DC 20004.
    Instructions: You must submit comments by one of the above methods 
to ensure that Commerce Department receives the comments and considers 
them. Comments sent by any other method, to any other address or 
individual, or received after the end of the comment period, may not be 
considered. All comments received are a part of the public record and 
will generally be posted to http://www.regulations.gov without change. 
All Personal Identifying Information (for example, name, address, etc.) 
voluntarily submitted by the commenter may be publicly accessible. Do 
not submit Confidential Business Information or otherwise sensitive or 
protected information.
    Commerce Department will accept anonymous comments (enter ``N/A'' 
in the required fields if you wish to remain anonymous). Attachments to 
electronic comments will be accepted in Microsoft Word, Excel, 
WordPerfect, or Adobe PDF file formats only.

FOR FURTHER INFORMATION CONTACT: Vidya Desai, Senior Advisor, Trade 
Promotion Programs, International Trade Administration, U.S. Department 
of Commerce, 1300 Pennsylvania Ave. NW., Ronald Reagan Building, Suite 
800M--Mezzanine Level--Atrium North, Washington, DC 20004; Telephone 
(202) 482-2311; Facsimile: (202) 482-7800; Email: [email protected].

SUPPLEMENTARY INFORMATION: A summary of the points from the 1993 
document (58 FR 26116, April 30, 1993) in this document are below in 
Section I. However, comments are specifically being requested on 
Potential Concepts for Program Changes found in Section II.

Section I: Summary

     A $2,000 non-refundable participation fee \1\ is required 
within 10 days of notification of Certification. This fee covers 
support from the local U.S. & Foreign Commercial Service (USFCS) office 
in the location of the fair, logistical and organizational services 
from the Trade Fair Certification staff at headquarters, and support 
provided by Commerce staff and resources generally. Additional value 
added services, such as coordination of business to government 
meetings, will be assessed an additional fee determined based on the 
costs attributed to coordinating such services and having the 
appropriate Commerce staff present to fulfill such activities.
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    \1\ While the level of this fee is not reflected in the TFC 
document, 58 FR 26116 of April 30, 1993, it has continually been 
announced to the public on the Web page Trade Fair Certification 
Program Description & Benefits at http://export.gov/tradefairs/eg_main_018560.asp.
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     Applications must be received no later than 9 months prior 
to the commencement of the fair for which Certification is sought, but 
no earlier than the conclusion of the prior event.
     Overseas trade fairs must commit to recruiting a minimum 
of 10 U.S. exhibitors for Trade Fair Certification consideration.
     The USFCS logo will be authorized for use by a Certified 
Trade Fair to aid in recruitment of U.S. exhibitors.
     For fairs occurring in cities or locales where there is no 
USFCS Office, or where the Commerce staff responsible for the industry 
theme of such if fair is not local, the presence of Commerce staff at 
the fair may be considered a value added service and incur additional 
fees for the organizer.
     First time and horizontal fairs are not eligible for 
Certification.
     Applicants applying for Certification of an existing trade 
fair must have experience in recruiting U.S. exhibitors for that show 
or another show with the same industry theme.
     Applications for Certification must include satisfactory 
documentation, in English, of the commitment of necessary exhibit space 
by the owner or lessor of the facility in which the fair will be held. 
Documentation should consist of: (1) A lease or letter from the owner 
or lessor stating that the applicant holds the necessary exhibition 
space, or (2) a letter demonstrating an offer of specific exhibition 
space by the owner or lessor of the facility; and a letter indicating 
the applicant's acceptance of the terms.
     Only applications submitted by U.S. persons or entities 
will be considered. For this purpose, the U.S. subsidiary, branch or 
agent of a foreign firm is considered a U.S. person or entity. 
Applications for fairs in which the applicant does not lease exhibit 
space directly, but relies on their parent foreign fair organizer to 
obtain exhibit space, must be submitted by the foreign fair organizer 
and co-signed by the U.S. subsidiary, branch or agent.
     Certified fair organizers must provide a list of recruited 
U.S. exhibitors to the Commerce Project Officer. The list should 
include the exhibitor's name, address, products displayed and the name, 
email address and phone number of the exhibitor's international sales 
contact.\2\ The list must be received 45 days prior to the event.
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    \2\ If disclosure of this information is in violation of an 
organization's written privacy policy agreement with its members, 
the Show Organizer may opt out of providing this information.
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     In order for the fair organizer to consider a participant 
a U.S. exhibitor, the participant must be (1) a U.S. citizen, U.S. 
corporation, or a foreign corporation that is more than 95% U.S.-owned 
and (2) the products it exhibits at the fair must be: (a) manufactured 
or produced in the United States, or (b) if manufactured or produced 
outside of the United States, marketed under the name of a U.S. firm 
and have U.S. content representing at least fifty-one percent of the 
value of the finished good or service.
    The following reiterates the Trade Fair Certification (TFC) Program 
as set out in 58 FR 26116 of April 30, 1993:
    The Department of Commerce established the TFC Program in 1983 to 
encourage qualified private sector fair organizers to recruit U.S. 
exhibitors for overseas trade fairs. The Program provides the private 
sector with greater opportunities to work with Commerce in support of 
U.S. participation in overseas trade fairs. Private sector organizers 
of a Certified Trade Fair assume the responsibilities of organizing the 
fair, or U.S. participation in it. Certification assures the private 
sector organizer of Commerce recognition and support of its efforts to 
recruit U.S. exporters.
    Certification provides a means for U.S. exporters to verify that a 
particular trade fair will be a good promotional medium providing good 
export opportunities. Prospective U.S. exhibitors at Certified Trade 
Fairs know that Commerce personnel will be available to assist them and 
to counsel them about export matters that may arise before, during or 
after the show. Certification thus indirectly serves the U.S. 
manufacturer or service provider seeking export opportunities.
    Certification is for one fair only; fairs that have been certified 
previously must apply for certification again for any future 
anticipated event. This allows Commerce to evaluate the latest market 
conditions in determining whether to

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certify each fair. Commerce does not provide any financial assistance 
to organizers or to exhibitors at Certified Trade Fairs.
    There is no fee required to submit an application. If Certification 
is approved, a participation fee of $2,000 is required. The 
participation fee is due within 10 days of notification of acceptance 
into the program.
    Certification indicates that Commerce has found the applicable fair 
to be a good export opportunity warranting participation by U.S. 
exporters. Certification indicates that the fair and the organizer have 
met basic criteria and that the organizer is qualified to perform in a 
manner supportive of Commerce's objectives. However, Certification does 
not constitute a guarantee of the fair's success or of the organizer's 
or exhibitor's performance. Commerce limits Certification to fairs that 
in its judgment, most clearly meet the program objectives and selection 
criteria set out herein.
    Eligibility: All international/overseas trade events are eligible 
to apply for Trade Fair Certification, through a U.S. agent (person or 
entity).
    Exclusions: Trade shows that are either first-time or horizontal 
(non-industry specific) events generally will not be considered. For 
the purposes of the TFC program, a first-time fair is a distinct, 
separate trade fair that has not been held before in the relevant 
country. The term ``first-time event'' does not refer to a fair 
different in name only from a previous, identical fair. A fair 
developed for the first time as a ``breakout'' from an existing trade 
fair will be considered a first-time fair. Applications for a fair that 
occurs in different countries on a rotating basis under the same title 
will be considered provided the fair has occurred in the relevant 
country during the preceding five years.
    General Evaluation Criteria: Commerce will evaluate shows for Trade 
Fair Certification using the following criteria:
    (a) The fair must be a good export opportunity for the featured 
industry or industries. The fair must have good potential for U.S. 
export promotion. In applying this criterion, Commerce will consider 
such factors as: Whether the fair's industry theme is included in 
Commerce's Top Market reports, Country Commercial Guides, and input 
from US&FCS offices in the relevant region;
    (b) The degree to which the fair provides promise of foreign market 
exposure for the latest technology or techniques in an industry or in a 
commercially recognized category of goods or services in the sector or 
field promoted by the fair;
    (c) Whether the fair provides a unique opportunity for export 
promotion within a particular market;
    (d) The appropriateness of the fair for a minimum of 10 U.S. 
exhibitors, ideally located in an identifiable U.S. pavilion within the 
show; and
    (e) Whether U.S. exhibitors are likely to exhibit goods or services 
representing U.S. industry in the particular field involved.
    (f) The theme, timing and location of the fair; previous 
exhibitors' experience with the organizer; the USFCS office's 
familiarity with the fair (and if applicable, its recommendation in its 
end-of-show report for the previous event); and whether Commerce's 
support would contribute to the enhancement of the U.S. exhibitor's 
export potential.
    In order for a fair organizer to consider a participant a U.S. 
exhibitor, the participant must be (1) a U.S. citizen, U.S. 
corporation, or a foreign corporation that is more than 95% U.S.-owned 
and (2) the products it exhibits at the fair must be: (a) Manufactured 
or produced in the United States, or (b) if manufactured or produced 
outside of the United States, marketed under the name of a U.S. firm 
and have U.S. content representing at least fifty-one percent of the 
value of the finished good or service.
    Application Requirements: Applicants submitting applications for 
Trade Fair Certification must submit: (1) A narrative statement 
addressing each question in the application, Form ITA 4100P (found at 
www.export.gov/tradefairs); (2) a signed statement that ``The 
information submitted in this application is correct and the applicant 
will abide by the terms set forth in the Participation Agreement and 
Conditions of Participation;'' (3) any other relevant information. All 
application materials must be submitted via email to [email protected] no 
later than 270 days (9 months) prior to the first day of the fair, and 
no earlier than the conclusion of the prior occurrence of the event. 
There is no fee required to apply.
    Certified Trade Fair Organizer Responsibilities:
    Applicants will be notified via email 4-6 weeks from the date of 
application submission as to their selection status.
    A Certified Trade Fair Organizer is expected to:
    (a) Pay the $2,000 non-refundable participation fee for Trade Fair 
Certification to Commerce within 10 business days of notice that the 
fair has been certified;
    (b) Designate an individual on the organizer's staff to act as the 
point-of-contact for Commerce staff on all aspects of the show with 
Commerce personnel;
    (c) Provide the following exhibition services:
     Display space comparable with industry standards for 
similar trade events;
     Freight forwarding and exhibit set-up services including, 
but not limited to, the unloading of participants' equipment at the 
exhibition site, delivery to the participants' booths, unpacking, 
placement in display area, storing packing crates, repacking and 
loading for onward shipment, customs clearance, and any other services 
required to assure the prompt and orderly receipt and dispatch of 
material in and out of the exhibition site;
     Installation of a display system, chairs, tables, standard 
company identification and standard opening identification signs;
     Utilities and hook-up services; and
     Assistance in hiring interpreters, clerical personnel or 
booth attendants as required by participants.
    All fees to be charged to participants for standard and 
supplementary services must be stated in the organizer's application 
and be within reasonable range of such charges in the market as can be 
verified by Commerce's post in-country.
    (d) Undertaking, as appropriate, a comprehensive promotional 
campaign, such as in-country pre-show press conferences and meetings to 
reach importers, distributors, agents, buyers and end-users;
    (e) Provide, at no cost to the Post, space and a furnished booth 
for use as the Business Information Office (BIO). If a U.S. pavilion is 
utilized, the BIO should be co-located with the exhibitors in the U.S. 
pavilion.
    (f) In keeping with Commerce's mandate, show evidence of efforts to 
target infrequent exporters (new-to-market firms) and small and medium 
sized firms in its recruitment efforts.
    (g) If the fair is located at a site where there is no US&FCS 
office or where the Commerce staff responsible for the show's industry 
theme is not local, pay the per-diem and travel-related expenses that 
exceed the allocation for such expenses in the participation fee, 
subject to Commerce's guidelines.
    (h) Provide a list of recruited U.S. exhibitors to the Commerce 
project officer 45 days prior to the commencement of the fair.
    (i) Certify that the products and services the recruited U.S. 
exhibitors seek to market at the fair:

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    1. Are manufactured or produced in the United States, or
    2. If manufactured or produced outside of the United States, are 
marketed under the name of a U.S. firm and have U.S. content 
representing at least 51 percent of the value of the finished good or 
service.
    (j) Prominently display the US&FCS logo or International Trade 
Administration (ITA) emblem on event promotional materials, exhibition 
booth fascia, and throughout the U.S. pavilion, if one is organized, in 
accordance with applicable Commerce Department logo use policies.
    The Trade Fair Certification Program is the principal program 
Commerce uses to support private sector recruitment and organization of 
overseas trade fairs. As a condition of using the US&FCS logo or ITA 
emblem for a Certified Trade Fair, it must be the dominant logo used to 
promote the fair to U.S. exhibitors;
     If other U.S. Government or non-government logos are used, 
they must appear smaller than the US&FCS logo or ITA emblem and may not 
be co-mingled with the US&FCS logo or ITA emblem.
     Documentation of the use of the US&FCS logo or ITA emblem 
should be sent to Commerce for recordkeeping. Advance review of the use 
is not required. Fair organizers are encouraged to ask Commerce for 
guidance on the proper use of its logos/emblems.
     Failure to abide by Commerce policies on the proper use of 
its logos/emblems may result in the fair being de-certified.
    Commerce reserves the right to ``decertify'' a fair at any time 
after Certification is granted if the organizer has not or is not 
likely to fulfill its responsibilities as a Certified Trade Fair 
organizer. In such an event, the organizer shall remain solely 
responsible for its obligations to the recruited U.S. exhibitors. 
Commerce may withdraw all assistance and support, including the right 
of the organizer to use the US&FCS logo or ITA emblem.
    Department of Commerce Services and Responsibilities:
    Commerce support provided for Certified Trade Fairs will generally 
be the same for all certified fairs, but minor variances may exist, 
depending on the circumstances of the fair, and the specific needs of 
the organizer and of Commerce.
    For a Certified Trade Fair, Commerce is expected to:
    (a) Provide a certificate designating that the fair as being 
certified by the U.S. Department of Commerce;
    (b) Authorize the use of the US&FCS logo and the ITA emblem on 
appropriate fair publicity materials, in accordance with applicable 
Commerce Department logo use policies;
    (c) Provide authorization for the use of other Commerce-approved 
references that indicate the Department recognizes and supports the 
fair, in accordance with Commerce policies;
    (d) Provide a designated project officer to assist the organizer 
and act as a Commerce point-of-contact;
    (e) Provide the organizer, upon request, with relevant public 
Commerce reports and publications;
    (f) Encourage potential U.S. exhibitors, through Commerce's normal 
course of export counseling or through contacts with business and trade 
associations, to consider participation in the Certified Trade Fair and 
refer inquiries to the show organizer; and
    (j) Upon request and to the extent available, arrange counseling 
for U.S. exhibitors by U.S. Export Assistance Center Trade Specialists 
and Industry and Analysis Industry Analysts in advance of the fair.
    Local US&FCS Office Services and Responsibilities:
    In addition to the general Commerce support listed above, the 
designated US&FCS office for the Certified Trade Fair is expected to:
    (a) Furnish the organizer with a list of key local associations, 
distributors, agents, government entities, and other relevant 
information;
    (b) Promote the fair locally by including an announcement of the 
event in its commercial newsletter or the equivalent;
    (c) Upon request and subject to the availability of resources, 
provide staff at a Business Information Office to counsel U.S. 
exhibitors, facilitate contacts between exhibitors and visitors, and 
promote US&FCS services. The BIO cannot be used for any other purpose, 
unless agreed to by the US&FCS office; and
    (d) Upon request and subject to the availability of resources, 
provide additional services, such as: A U.S. exhibitor briefing; 
reception; promotional mailing; ribbon-cutting ceremony; press 
conference; etc. If the costs of these additional services exceed the 
allocation of the participation fee for the US&FCS Office, the 
organizer will incur an additional fee. Such costs will be determined 
by the Senior Commercial Officer at the designated US&FCS Office.
    Legal Authority:
    Authority for the Trade Fair Certification Program is provided by 
15 U.S.C. 4721, which authorizes US&FCS to promote U.S. exports and 
support U.S. commercial interests abroad, and the Mutual Educational 
and Cultural Exchange Act (MECEA) of 1961 (22 U.S.C. 2455(f) and 
2458(c)), as incorporated into ITA's annual appropriations act, Public 
Law 114-113, 129 Stat. 2287.

Section II. Potential Concepts for Program Changes

    The Department of Commerce intends to make significant changes to 
the Trade Fair Certification Program in the future. Some of the 
potential concepts under consideration may include, but are not limited 
to, the bulleted list below. We welcome public comments on these 
concepts.
     The Department is considering changing the application 
timeframe from rolling applications to an annual application period, 
meaning applications will be collected during a 45-60 day application 
period held once a year.
     The Department is considering increasing the price of the 
Program.
     The Department is considering offering Trade Show 
Organizers an a la carte menu of services instead of one standard 
service. Prices will be associated with each service option.
     The Department is considering tiers of service with 
different levels of Departmental engagement priced at different levels.
     The Department is considering raising the minimum number 
of U.S. exhibitors from 10 to 25 or more.
     The Department is considering changing the minimum number 
of U.S. exhibitors from 10 exhibitors to a set percentage of the total 
number of exhibitors.
     The Department is considering issuing a formal Memorandum 
of Agreement, outlining the responsibilities of both parties and signed 
by both parties, for selected shows.
    Electronic Submission of Comments: Interested persons are invited 
to submit comments regarding this advance notice of proposed rulemaking 
according to these instructions. Commenters should make online 
submissions using http://www.regulations.gov. Comments should be 
submitted under ITA-2016-0005. To find this docket, enter the docket 
number in the ``Enter Keyword or ID'' Window at the http://www.regulations.gov home page and click ``Search.'' The site will 
provide a search-results page listing all documents associated with the 
docket number. Find a reference to this document by selecting 
``Proposed Rule'' under ``Document Type'' on the search-results

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page, and click on the link entitled ``Submit a Comment.'' The http://www.regulations.gov Web site provides the option of making submissions 
by filling in a comments field, or by attaching a document. ITA prefers 
submissions to be provided in an attached document. (For further 
information on using http://www.regulations.gov, please consult the 
resources provided on the Web site by clicking on the ``Help'' tab.) 
Please do not attach separate cover letters to electronic submissions; 
rather, include any information that might appear in a cover letter in 
the comments themselves. Similarly, to the extent possible, please 
include any exhibits, annexes, or other attachments in the same file as 
the submission itself, not as separate files.
    All comments submitted in response to this document will be made 
available to the public so should not include any privileged or 
confidential business information. The file name should begin with the 
character ``P'' (signifying that the comments contain no privileged or 
confidential business information and can be posted publicly), followed 
by the name of the person or entity submitting the comments.

Frank Spector,
Senior Advisor for Trade Missions, Trade Promotion Programs.
[FR Doc. 2016-17414 Filed 7-28-16; 8:45 am]
 BILLING CODE 3510-DR-P