Certified Trade Mission Program

SUMMARY: This notice adjusts the Certified Trade Mission Program (CTM),

that currently requires organizers (federal agencies, industry

associations, agencies of state and local governments, chambers of

commerce and other organizations) to process their applications through

the U.S. Department of Commerce (the Department) in Washington for

approval. Effective September 1, 1995, all entities with the exception

of federal government agencies, should deal directly with our Embassy

Commercial Sections (posts) overseas to arrange event approval,

including, but not limited to, timing, scheduling, budgets, etc. In

unique or special circumstances, such as governor or Congressionally

led missions, Washington staff will be available to provide assistance

as necessary. Federal government agencies seeking certification should

continue to coordinate their events through the Trade Promotion

Coordinating Committee (TPCC) events working group. Otherwise, all

contact should be between the sponsoring organizer and overseas

post(s). These events henceforth will be called Commercial Service

Certified Trade Missions.

DATES: These adjustments will take place effective September 1, 1995.

ADDRESSES: Office of Export Promotion Services, International Trade

Administration, U.S. Department of Commerce, Room H2810, 14th and

Constitution Ave, NW., Washington, DC 20230. Tel: (202) 482-4231 or

Fax: (202) 482-0872.

FOR FURTHER INFORMATION CONTACT: Brenda Coleman, Certified Trade

Mission Product Manager, Office of Public/Private Initiatives, U.S.

Department of Commerce, Room H2116, 14th and Constitution Avenue, NW.,

Washington, DC 20230. Tel: (202) 482-3973 or Fax: (202) 482-0872.

SUPPLEMENTARY INFORMATION: Certified Trade Mission are overseas events

planned, organized and led by federal agencies or non-federal export

promotion organizations, such as associations, state and local

governments, chambers of commerce and other export-orientated groups,

under the sponsorship of the Department of Commerce. Currently, to

receive Department approval, an application must be submitted through

the Department in Washington. With the effective date of this

announcement, it will be incumbent upon the organizer to contact the

post directly, sufficiently ahead of schedule (approximately 6 months),

to receive approval of the post. Negotiations between both parties may

be required to meet mutual objectives. In some cases it may be

necessary to put the organizer in touch with a local contractor if the

post is not in a position to provide overall management of the event.

The Conditions of Participation which outline the program's criteria as

well as the responsibilities of all involved parties and the

Application for Status which must be completed and sent to the post(s)

approximately 6 months in advance of scheduled mission are set forth

below. This program operates under legal authority of 15 USC 1512 et

seq. and the various collections associated with it have been cleared

under Office of Management and Budget Control No. 0625-0215, 0625-0034,

0625-0147, and 0625-0217.

For additional information, please contact your nearest U.S.

Department of Commerce Domestic Office or call 202-482-3973.

John Klingelhut,

Acting Director, Office of Public/Private Initiatives, Export Promotion

Services.

Commercial Service Certified Trade Mission Program Conditions of

Participation

A. Overview

Commercial Service (formally) referred to as the U.S. and

Foreign Commercial Service) Certified Trade Missions are overseas

events planned, organized, and led by federal agencies or non-

federal export promotion organizations (such as industry trade

associations, agencies of state and local governments, chambers of

commerce, regional groups, and other export-oriented groups), in

partnership with the U.S. Department of Commerce. The Certified

Trade Missions program provides a flexible and adaptable format in

which to conduct overseas business. U.S. companies can be provided

with face to face meetings with potential agents, distributors,

joint venture partners, licensees, relevant businesses and

government contacts. Seminars on local business practices with

participation by banks, lawyers, and other authorities can be

arranged. Special working level events are also available to further

enhance the event. Also, it may include plant and factory tours or

may follow a seminar format for technical products. Within the

mission's framework, Commercial Service overseas posts provide

guidance and support to mission organizers and participating

companies on the mission.

B. Criteria

To qualify for Commercial Service certification, the mission

must have, as a primary objective, the promotion of U.S.-produced

goods and services and/or the establishment of marketing

representation abroad. Goods and/or services promoted must:

1. Be manufactured or produced in the United States, or

2. If manufactured or produced outside of the United States, be

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

goods or services.

Products/services represented on the mission must be a

compatible group within a product theme (or themes) that, in the

Commercial Service's determination, offers substantial market

opportunities. One-industry theme (vertical) missions are preferable

because promotional efforts can be targeted more effectively toward

appropriate end-user audiences. Advance concurrence of the overseas

posts on the product mix of the mission and its itinerary and timing

is required.

To participate in a Commercial Service Certified Trade Mission,

the organizer must enter into a participation agreement that

incorporates the following ``Conditions of Participation''. Any

changes to the conditions outlined here should be in writing and

made a part of this document prior to signing. Sponsoring

organizations should apply by submitting an ``Application for

Certified Trade Mission Status'' to the appropriate overseas

post(s).

Federal Government agencies seeking certification will

coordinate through the Trade Promotion Coordinating Committee (TPCC)

events working group prior to approaching the overseas Commercial

Service post(s).

For additional information, please contact your nearest U.S.

Department of Commerce Domestic Office, or call 202/482-3973.

C. Conditions

A. Responsibilities of the Organizer

The organizer shall:

1. Submit to the appropriate overseas post(s) a typed and signed

``Application for Certified Trade Mission Status'' (Department of

Commerce Form ITA-4127P; OMB No. 0625-0215) as early as 12 months

but no later than 6 months prior to the departure of the mission

(see attached form). Note: In unusual circumstances and when it is

advantageous to the USG, the Commercial Service Post in question may

alter this requirement.

2. Upon notification of approval of the ``Application for

Certified Trade Mission Status'' by the Commercial Service post

involved, enter into a binding Participation Agreement (Department

of Commerce Form ITA-4008P; OMB No. 0625-0147) that incorporates the

Conditions of Participation. A separate ``Conditions of

Participation'' must be signed for each Commercial Service post

involved.

3. Provide, at its expense, and identify to the overseas post a

project officer, an advance officer, and a mission director not

later than 90 days prior to the departure of the mission.

[[Page 43951]]

Further, ensure that the advance officer and mission director carry out

the responsibilities set forth in Sections C and D, below. Note:

This requirement may be adjusted to meet the preferences of the

Commercial Service post in question. Such adjustment will be agreed

in writing between the organizer and the Commercial Service Post

involved and made a part of the Conditions of Participation.

4. Work directly with the affected Commercial Service post to

develop a comprehensive budget for the mission. It is understood and

agreed that the budget will cover all services required to meet the

needs of the mission.

5. Submit to the Department (either to the overseas post(s) or

the Office of Public/Private Initiatives), complete payment of

mission-related costs that the Commercial Service post(s) have

agreed to incur overseas on the mission's behalf, not later than 60

days prior to the departure of the mission. Such costs may include,

for example, costs incurred for: mission promotion, translation

services, appointment scheduling, site rentals, secretarial

assistance, overtime of Commercial Service personnel, hospitality

and transportation. Costs incurred directly by the sponsoring

organization in connection with the mission will not be reimbursed

by the Department.

6. Submit to the overseas office a final list of mission

participants, product/service data, and precise business objectives

of the mission participants, (including any relevant company

brochures) not later than 60 days prior to the departure of the

mission. Note: At the discretion of the Commercial Service post this

requirement may be adjusted provided it is agreed in writing between

the organizer and the Commercial Service post and made a part of the

``Conditions of Participation.''

7. With guidance from the Commercial Service post, assure that

printed mission directories in appropriate quantities are received

by the Commercial Service post 45 days prior to departure of the

mission. The Commercial Service post will advise whether or not

these should be translated into the language of the country.

8. Ensure that mission participation includes a minimum of eight

U.S.-based firms with the maximum number of participants to be

determined in agreement between the organizer and the Commercial

Service post and made a part of the ``Conditions of Participation.''

9. Comply, as appropriate, with the financial provisions of

Section E and the bonding provisions of Section F, below.

10. Ensure that fee arrangements with participants do not

include a commission on eventual sales or quantifiable results

generated by the mission.

11. Ensure that all products and services promoted by mission

participants are:

(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, with U.S. content

representing at least fifty-one percent of the value of the finished

goods or services.

12. Carry out the mission as described in the ``Application for

Certification Trade Mission Status'' unless otherwise approved by

the Commercial Service post in writing.

13. Hold the U.S. Government harmless from liability for any

illness, injury, loss of life, or damage or loss of property

occasioned by or connected with the mission, participation therein

by any person, and support provided by the Department, and its

employees, agents and contractors.

14. Provide the Department with a completed ``Mission Organizer

Survey'' (Department of Commerce Form ITA-4122P; OMB No. 0625-0217)

and final mission report, if applicable, within 30 days after the

conclusion of the mission.

B. Responsibilities of the Commercial Service

The Certified Trade Mission Program is administered and managed

by the Commercial Service at the overseas post(s). All decisions

regarding the proposed mission are at the discretion of the

Commercial Service.

The Commercial Service post shall, within the limits of the

agreed budget and personnel resources:

1. Designate the mission as an official Certified Trade Mission,

recognizing the services of the sponsoring organization and of the

mission participants in helping to increase the international

commerce of the United States.

2. Assure that the Certified Trade Mission is placed on the

``official'' Export Promotion Calendar of trade promotions events

carried in the ``National Trade Data Bank'' (NTDB) and ``Economic

Bulletin Board'' (EBB) as well as ``Internet'' through the NTDB.

3. Provide advice and assistance from the planning stage to the

conclusion of the mission.

4. Provide available economic, commercial and political data to

aid the partnership organization in its selection of an itinerary

that offers the best marketing potential for the products, services,

or investment opportunities to be promoted, and update such

information as necessary prior to departure of the mission.

5. Provide assistance to the advance officer designated by the

partnership organization; e.g., lists of local-hire personnel,

translators, hotels and caterers.

6. Assist in arranging business appointments for each mission

participant; or, if resources are limited, assist a contractor of

the sponsoring organization, working under the supervision of the

affected overseas post(s), in identifying prospective customers,

agents, distributors, investors and key government officials with

whom business appointments can be made.

7. Arrange for commercial, economic, and political briefings,

and assist in arranging relevant tours, inspections and seminars.

8. Facilitate use of the Embassy Press Office to publicize the

mission abroad.

9. Collect a Mission/Exhibition Evaluation Report, (Form ITA

4075P, OMB No. 0625-0034) from each participant before they depart

the country. Note: Participants are not required to complete this

form, but they will be encouraged to do so.

C. Responsibilities of the Sponsoring Organizer's Advance Officer

Where it is agreed between the Commercial Service post and the

sponsoring organization that an advance officer is necessary, the

advance officer shall:

1. Arrange a time in writing beneficial to both the affected

Commercial Service post(s) and the partnership organization to begin

his or her advance travel. Generally this will be approximately 90

days prior to departure of the mission.

2. Confirm to each affected overseas post of his or her specific

itinerary and travel schedule not later than 15 days prior to his or

her departure.

3. Carry information and product literature for each mission

participant in sufficient quantities to leave at least one set at

each affected overseas post.

4. Carry funds and international credit cards, with full

authority to commit funds for mission expenses.

5. Work directly with each affected overseas post to develop the

mission program and finalize the mission budget at each stop.

D. Responsibilities of the Mission Director

The sponsoring organization's mission director shall:

1. Ensure that mission participants adhere to the mission

program and promptly keep all individual appointments at each stop.

2. Carry additional mission funds and international credit cards

to ensure that all mission expenses not previously deposited with

the Commercial Service post are paid before leaving each stop, and

that mission participants' bills are similarly paid.

3. Ensure that each mission participant:

(a) is fully responsible for his or her individual travel and

personal expenses;

(b) makes all necessary arrangements for entry permit visas and

other travel documentation;

(c) is an active member or representative of his or her firm;

and (d) is qualified and authorized to quote prices and negotiate

sales and other terms on behalf of his or her firm.

E. Financial Provisions

1. Sponsoring organizations that are federal agencies or quasi

federal agencies shall:

(a) describe at the time of application where individual

participation fees will be deposited e.g. with the sponsoring agency

or Commercial Service;

(b) describe at the time of application the method of payment to

be used. Options include:

(i) full payment by check (made payable to the U.S. Department

of Commerce) with submission of Participation Agreement;

(ii) cable from agency to overseas post(s) transferring payment

and authorizing spending; or

(iii) inter-agency transfer of funds with submission of

Participation Agreement and Memorandum of Understanding; and

(c) provide original copies of payment documents to the

Department for processing not less than 60 days prior to mission

departure.

2. Sponsoring state organizations that are legally prohibited

from providing prepayment as described in Section A shall provide to

the Department not less than 60 days prior to mission departure a

legally binding document, such as a purchase order in U.S. dollars

or a letter of intent, committing to provide 50 percent of the

[[Page 43952]]

mission budget, within 5 working days of the conclusion of the mission.

The remaining balance is due upon receipt of final invoice(s) from

the affected overseas post(s). Sponsoring organizations should

contact the overseas post(s) for prior approval of language that

purports to legally bind the organization.

3. All other sponsoring organizations will handle payment as

described in C.A.5 and C.D.2 above unless agreed in writing and made

a part of the ``Conditions of Participation.''

F. Bonding Provisions

1. For-profit sponsoring organizations shall obtain a bond from

a surety company holding a certificate of authority from the U.S.

Department of the Treasury, Office of Financial Management Service,

as periodically published in the Federal Register.

2. The bond will ensure that a mission participant can recover a

participation fee paid to the sponsoring organization, as well as

any other reasonable pre-paid transportation costs, should the

sponsoring organization fail to meet its obligations to the mission

participant concerning the mission.

The amount of the bond must be sufficient to cover these fees

and estimated transportation costs.

3. The bonding agreement must be signed by the sponsoring

organization (principal) and a bonding company (surety). A bond

beneficiary is defined as an individual or entity from which, or on

behalf of which, the principal receives and retains a participant

fee for the mission.

4. Bonds will be reviewed on a case by case basis, as there is

no standard form agreement.

5. An executed and pre-paid-in-full bond must be completed, and

a copy of this bonding document shall be presented to the Commercial

Service post before approval of the trade mission will be granted.

6. A copy of the bond must be made available to mission

participants either by the sponsoring organization or the bonding

company.

7. The bond requirement does not constitute a guarantee by the

Department of reimbursement for financial losses to mission

participants in connection with the mission.

8. Should either party terminate the bond agreement, the

terminating party must notify the Department and make a reasonable

effort to notify the bond beneficiaries. Therefore, the organizer

must provide a listing of all mission participants, including valid

mailing addresses, to the bonding company no later than 30 days

prior to departure of the mission.

G. Cancellations

1. All notice of cancellations must be in writing. Upon written

notice of cancellation of the mission, the Department will secure an

accounting by the affected overseas post(s) of costs incurred by

them in connection with the mission. Such costs may include those

incurred for fax/phone, postage, personnel overtime, printing, and

contract services. If such costs exceed the amount previously

received, or if no funds have been received, the Department will

bill the sponsoring organization for the amount of the excess or its

costs, as applicable.

Acceptance of Terms

On behalf of the partnership organization named in the attached

Participation Agreement, I certify that I have read and understand

these Conditions of Participation, which are incorporated into and

form a part of such Agreement.

By:--------------------------------------------------------------------

Organization:----------------------------------------------------------

Title:-----------------------------------------------------------------

Date:------------------------------------------------------------------

[OMB No. 0625-0215]

Expire: 8/31/96.

Commercial Service Certified Trade Missions Program Application For

Status

Please print or type response to the information requested below

on organizational letterhead. Fax or mail a completed Application

for Status to each Commercial Service post in question.

1. Name, address, telephone and fax numbers of sponsoring

organization.

2. Name, address, telephone & fax numbers of mission sponsor,

i.e. (trade association, state or local government, regional group,

etc.). Please also list any co-sponsoring organizations, if

applicable.

3. Name of proposed Trade Mission.

4. Please provide a description of your mission. Outline your

goals and objectives and indicate names of VIP leaders, if

appropriate.

5. Proposed itinerary. (Please give as much detail as possible.)

6. Services/Assistance requested from the post if status is

approved, (i.e. one-on-one business appointments, plant visits,

translators, reception, hotel and transportation arrangements,

etc.).

7. Projected number of participants/companies.

8. Product categories/industries to be promoted.

9. Target date of advance trip, name of advance officer, and

proposed itinerary.

Public reporting burden for this collection of information is

estimated to average 1 hour per response, including the time for

reviewing instructions, searching existing data sources, gathering

and maintaining the data needed, and completing and reviewing the

collection of information. Send comments regarding this burden

estimate or any other aspect of this collection of information,

including suggestions for reducing this burden, to Reports Clearance

Officer, International Trade Administration, Room 4001, U.S.

Department of Commerce, Washington, DC 20230.

10. Name, address, phone and fax numbers of contact(s) currently

assisting in mission organization overseas, if applicable.

11. List any specific organizations, from the private and public

sectors, with whom you know you wish to meet.

12. Outline of promotional campaign to be conducted in

recruiting mission, (i.e. mailing, fax campaign, brochure

distribution at other trade events, radio spots, etc.). Be as

specific as possible and include target dates, when available.

13. Deadline for accepting applications from participants.

14. Proof, such as a copy of letter of invitation, that your

mission has a host organization in countries that require such an

arrangement e.g., China. Give host's name, address, telephone & fax

and contact name(s).

15. Specify any special space and/or equipment for audio-visual

presentations or technical programs.

16. APPLICANT MUST TYPE THE FOLLOWING STATEMENT ON APPLICATION

AND SIGN: I hereby agree to abide by all ``Conditions of

Participation'' set forth by the U.S. Department of Commerce (see

attached) and guarantee to provide funds to finance all overseas

costs incurred on my mission's behalf.

Signature--------------------------------------------------------------

Date-------------------------------------------------------------------

Name/Title-------------------------------------------------------------

[FR Doc. 95-20868 Filed 8-22-95; 8:45 am]

BILLING CODE 3510-FP-P