Support Desired From the International Trade Administration (ITA) for Overseas Air/Defense Trade Shows

SUMMARY: This notice seeks comments from U.S. firms, professional show

organizers, trade associations, and any other entities or persons to

help ITA formulate a uniform, equitable program for supporting U.S.

exhibitors at overseas air/defense shows. These shows entail unique

elements such as government-to-government sales support, regulatory

considerations, assistance with foreign military/buyer delegations,

multi agency coordination, high level advocacy support, costly space

requirements, and working with multiple private organizers in dispersed

U.S. pavilions. Consequently, ITA is requesting information on the best

mix of services, representation, and promotional activities that can be

provided by ITA and show organizers at these events. Under applicable

legal principles, ITA may be required to charge organizers or

exhibitors a fee for some of the services provided. The notice provides

specific lists of fee and non-fee services for consideration.

Respondents are asked to comment on the lists and also on the need for

a unified, centralized, or official American identity at air/defense

shows, as well as how ITA can best achieve this where needed.

DATES: Written comments should be received on or before cob October 30,

1998.

ADDRESSES: Direct all written comments to Export Promotion Services,

``Air/Defense Show RFI,'' Room 2116, U.S. Department of Commerce, 14th

& Constitution Ave., N.W., Washington, D.C. 20230. Faxed comments

should be sent to (202) 482-0115. E-mail comments to [email protected].

FOR FURTHER INFORMATION CONTACT: Donald Huber, U.S. Department of

Commerce, 14th & Constitution Ave., N.W., Washington, D.C. 20230.

Telephone: (202) 482-2525. Fax: (202) 482-0115. E-mail:

[email protected].

SUPPLEMENTARY INFORMATION: The International Trade Administration

(ITA), a U.S. Department of Commerce (USDOC) agency responsible for

trade promotion and development, is requesting information and comments

from U.S. companies, exhibitors, show organizers, trade associations

and other interested parties concerning appropriate ITA support at

major international air and defense shows. This information will be

used to formulate a policy of how to provide support that will meet the

objectives of exhibitors, the trade show and aerospace/defense

industry, and ITA in an equitable, consistent, and cost-effective

manner.

ITA has privatized the recruitment, organization, and management of

most U.S. pavilions at international trade shows. However, overseas

sales in the air/defense industry still require government involvement

at these shows to provide appropriate officials, market/regulatory

knowledge, key contacts, agency coordination, exhibitor counseling,

equipment support, etc. With fewer resources, ITA must provide

government support within limited appropriated funding and cost-

recovery requirements. Consequently, ITA is seeking to identify what

functions and activities industry places the highest priority on,

bearing in mind that applicable legal principles may require exhibitors

or organizers to pay for such activities from ITA on a cost recovery or

contributory basis. ITA also seeks comments on the activities that

should be undertaken by organizers.

List A outlines those activities/functions that ITA believes are

basic government support activities, are important, and likely could be

provided at no direct additional cost to exhibitors/organizers. List B

outlines those government support services/activities that likely would

be provided on a cost recovery basis. List C outlines items that ITA

believes are appropriate for show organizers to provide. ITA seeks

comments on the content of lists A, B, and C; the priority rankings of

the items on the lists; and which items should go into a standard

package of ITA support services for air/defense shows.

ITA support and services for these shows are currently handled

through the Trade Fair Certification (TFC) program for certified shows,

or for the Paris Air Show, via a Request For Proposal (RFP). Air/

defense shows are unique in various aspects and can entail extensive

government support. They are large, complex operations involving

government-to-government product sales, regulatory and licensing

considerations, interaction and coordination with many foreign

military/buyer delegations, multi agency interaction, host government

coordination, advocacy support from high level government officials,

operational government space requirements, complex logistical efforts,

and multiple private organizers in several dispersed U.S. pavilions,

with each organizer often requesting different services. Consequently,

the expense for ITA support at these shows can be more than the Trade

Fair Certification fee ($1,500) provides. It is estimated that

providing list B services can entail direct costs to ITA of $5,000 to

$20,000 per show, exclusive of the official reception. These costs

would be recovered through fees from an air/defense show support

program under consideration by ITA. The fee for this program would vary

for each show depending on the cost and amount of support required.

Comments are also requested on the need for, if any, of a more

centralized or unified USA presence at these events, as well as how

best to achieve this. Whereas many countries have a single, official

national pavilion at air/defense shows, U.S. companies can exhibit at

any one of several privately organized ``USA'' pavilions in various

exhibit halls, or independently. Though these privately organized

groupings of U.S. companies often use some form of USA identification,

they have no official status or connection with the U.S. Government

(USG) or foreign governments. ITA's certification of a private exhibit

manager to organize and manage a United States pavilion and the RFP

process do provide an official status and government partnership

recognized by foreign buyers, but do not provide any certainty of a

unified American presence or identity, especially if all of the

pavilions are not certified or are widely dispersed. We would like

comments on the value, if any, and the feasibility of providing a more

unified, centralized, or official United States identity at air/defense

shows.

ITA is looking to develop a uniform, but flexible, package of

services, policies, and fees that can be adapted to each air/defense

show depending on U.S. national interest, size, attendance, support

needed, number of organizers, etc. We feel there should be an

appropriate, balanced role for exhibitors, organizers, ITA,

associations, and other parties that fosters the best combination of

support for increasing the success of U.S. exhibitors at these shows.

In conclusion, ITA would appreciate your comments concerning--

1. ITA's proposed lists (see A,B,C following) of services for these

shows.

[[Page 50735]]

2. What additional services, functions, and support you feel ITA

should provide.

3. What policies, procedures, official recognition, and funding

arrangements ITA should follow to best serve U.S. exhibitors at air/

defense shows.

4. If needed, how to provide a more unified, centralized, or

official U.S. identity at these shows.

Information submitted in response to this RFI may be subject to

public disclosure. Any information that you believe is business

confidential, the disclosure of which would cause substantial

competitive harm to your firm, should be so marked.

(Authority: 15 U.S.C. 4721.)

List A: Basic ITA Air/Defense Show Support Activities

Since the organization and management of most U.S. pavilions in

overseas trade shows has been privatized, overseas USDOC Commercial

Sections in local U.S. Embassies do not have appropriated budget funds

for extensive support of trade shows. The level or amount of basic

support activities shown below will vary depending on resources

available and what the USG feels is necessary and appropriate support

for each show. The list below outlines show support that may be

provided without cost recovery fees to exhibitors/organizers. However,

for any of these activities to be carried out on-site, organizer(s)

must provide adequate operational space at no cost.

1. A level of official government representation appropriate for

the show. Representation may range from numerous high-level officials

to no representation at all. Includes officials from DOC, ITA, Bureau

of Export Administration (BXA), the embassy, other agencies, the White

House, etc., for activities such as an opening ceremony, obtaining

industry/product information, representing U.S. interests at official

functions/events, industry discussions, etc.

2. Official advocacy--at the show or follow-up company/project

support where appropriate.

3. Basic foreign delegation facilitation--providing officially

available information on foreign delegations and their schedules to

exhibitors. (Does not include providing pre-show identification of

individual exhibitor products/interests to delegations, obtaining

delegation member identification/interests, delegation matchmaking,

coordination of delegation visits, delegation escorting, introductions,

etc.)

4. Information concerning any official events, ceremonies, or

meetings in connection with the show. Includes U.S. Information Agency

press information.

5. Briefing/coordination/scheduling/hosting for visiting high level

USG officials.

6. Invitations to appropriate local foreign government officials

for official functions.

7. Coordination of government operations/messages, distribution of

USG event information, inter/intra agency communications/coordination,

etc. (Space for these operations would be donated by organizers/

exhibitors.)

8. Facilitation requests to fair authorities, host government, or

other official agencies as appropriate.

List B: Value-Added, Cost-Recovery Air/Defense Show Services

1. Individual matchmaking with local firms/buyers for exhibitors

prior to/at the show.

2. Pre-show and at-show customized foreign delegation facilitation,

matching, and support--includes pre-show identification and

distribution of individual exhibitor's products/interests to

delegations, identification of delegation members and their interests,

delegation information gathering/support from U.S. commercial sections

in other countries, at-show tracking/coordination of delegation visits,

language facilitation, delegation briefings, meeting arrangements with

individual delegation members, escorting delegations through U.S.

pavilions, delegation introductions to U.S. exhibitors, regional/

worldwide pre-show marketing/letters and promotion, follow-up contacts

with local/regional governments/buyers, etc.

3. Counseling and Information services--

Operation of a full Business Information Office (BIO)

booth in the organizers' pavilion to provide ITA services/program

information, staff assistance, expert country/market/company

counseling, official ITA presence and endorsement of the organizer;

collect results data; etc. The BIO will be staffed a reasonable number

of hours each day by professional U.S. Embassy representatives

knowledgeable about the industry, market, and business practices in the

region, as well as knowledgeable about all ITA services.

Business counseling/assistance--Visits to exhibitor

booths/meetings by post staff to provide specific company counseling,

exchange information, advise on specific contacts, etc.

4. Expanded Operational Support/Meeting Space--

For government/industry group meetings/discussions, agency

briefings, government-industry information exchanges, etc.

For individual company matchmaking, delegation member

meetings, and private meetings with government officials.

For private counseling appointments with post, ITA/Trade

Development (TD), and other government experts.

For USG operations/coordination, inter/intra agency

support, delegation coordination, etc.

For industry/market briefing

For specially arranged social events

Meeting space may be combined where appropriate.

5. Pre-show local host-country promotion/publicity to local

industry buyers/distributors, calls, mailings, ads--general or

highlighting U.S. exhibitors.

6. Organizer use of Trade Fair Certification logo or other official

air/defense show emblem as an endorsement or indication of an official

qualifying/U.S. pavilion status.

7. Embassy industry/market briefing for exhibitors on local

regulations, business practices, market situation, etc.

8. General or customized market research/trade data for exhibitor/

organizer use.

9. Promotional/marketing support letters to potential exhibitors;

Presidential/Secretarial letters for the organizer.

10. Official reception or other government hospitality/introduction

functions for exhibitors. (Funded by ticket sales and managed by post.)

11. Embassy pre-show press releases; notice in post commercial

newsletter to local industry and other official venues in-country or

regionally.

12. Official invitations to specified attendees for government/

organizer/exhibitor events, seminars, meetings, receptions, etc.,

13. US&FCS domestic office network promotion/event information

distribution.

14. Pre-show notification to domestic offices to arrange counseling

for exhibitors.

15. US&FCS Washington based U.S. pre-show publicity--press

releases; notices in Business America; to the National Association of

State Development Agencies and National League of Cities; ITA Websites,

STAT-USA, etc.

16. Pre-show and at-show publicity/support from other regional U.S.

embassies.

17. Special briefings on standards, consortiums, regional

regulations, etc.

[[Page 50736]]

18. ITA industry mailing lists to organizers.

19. TD Aerospace Product Literature Center operations (funded by

participant fees through the Trade Events Deposit Fund).

20. Unified catalog/directory of all U.S. exhibitors with welcoming

letters.

21. Additional staffing (interns, translators, hosts) and overtime.

22. Official identification/signage--emblems, flags, banners,

agency logos, passes/tickets, badges, for ceremonies, meetings, etc.,

for reproduction or use when necessary.

23. Travel beyond local commuting by staff or other government

experts/officials.

24. Locator service.

25. Arranging U.S. sponsorship support/courtesy services; fair

service facilitation.

26. Post-show marketing follow-up activities--buyer matchmaking

meetings with exhibitors, small group matchmaking tour to other cities

in the region, or other specially arranged events.

27. Assistance for firms/organizers with commercial show-related

problems normally handled by private firms such as customs clearance,

etc. if needed.

List C: What U.S. Show Organizers Should Provide

1. The capability and experience to fully advertise, market, and

recruit U.S. exhibitors and foreign visitors/buyers to air/defense

trade shows.

2. Ability to provide an attractive, high-quality U.S. Pavilion

area (inside and outside.) --includes the capability and experience to

organize/manage a U.S. Pavilion, contract for space, construct exhibit

booths/stands, and provide related signage, decorations, utilities,

services, etc.

3. Adequate promotional plan that also targets New-To-Market and

Small/Medium size firms.

4. Cost-recovery fees, as appropriate.

5. Space/booth for U.S. Government Business Information Office.

6. Recruitment of at least 10 U.S. firms.

7. A reliable contact to coordinate with the U.S. Government.

8. Valid contract/agreement/letter for space with the fair

authority/owner.

9. Professional promotional literature

10. Exhibitor directory.

11. End of show surveys/data.

12. Reasonable booth/stand pricing.

13. Regular contact with local ITA program and U.S. Embassy staff

13. Coordination with fair authority.

14. Coordination with other U.S. show organizers when necessary.

15. Reproduction of government logos and sponsorship identification

when appropriate.

Mary Fran Kirchner,

Chairman, Air/Defense Show Review Committee, Deputy Assistant

Secretary, Export Promotion Services, International Trade

Administration.

Ellis R. Mottur,

Member, Air/Defense Show Review Committee, Deputy Assistant Secretary,

for Technology & Aerospace Industries, International Trade

Administration.

[FR Doc. 98-25249 Filed 9-21-98; 8:45 am]

BILLING CODE 3510-FP-P