Executive-led Aerospace and Defense Industry Trade Mission to Turkey-Notification, 3739-3742 [2012-1435]
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Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Notices
Tax Programs
• Income Tax Preferences for FIEs
• Income Tax Preferences for
Enterprises in Industrial Zones
• Income Tax Refund for
Reinvestment By FIEs
• Import Duty Exemptions on Imports
of Goods for Encouraged Projects
• Import Duty Exemptions for Raw
Materials for Exported Goods
• Import Duty Preferences for FIEs,
Including Goods to Create Fixed Assets
& Raw Materials 1
For a description of each of these
programs, see the Petition. For
discussion of the Department’s decision
to initiate an investigation of these
programs, see Initiation Checklist.
Respondent Selection
For this investigation, the Department
expects to select respondents based on
U.S. Customs and Border Protection
(CBP) data for U.S. imports during the
POI. We intend to make our decision
regarding respondent selection within
20 days of publication of this Federal
Register notice. The Department will
release CBP data under Administrative
Protective Order shortly after the
signature date of this notice. The
Department invites comments regarding
the CBP data and respondent selection
to be submitted to the Department
within seven calendar days of
publication of this Federal Register
notice.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to
representatives of the GOV. Because of
the large number of producers/exporters
identified in the Petition, the
Department considers the service of the
public version of the Petition to the
foreign producers/exporters satisfied by
the delivery of the public version to the
GOV, consistent with 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 702(d)
of the Act.
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Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
1 Initially, Petitioners separately alleged the
following three programs, Import Duty Preferences
for FIEs, Import Duty Exemptions for FIEs Using
Imported Goods to Create Fixed Assets, and Import
Duty Exemption on Raw Materials for FIEs
Operating in Designated Areas. In their January 9,
2012, filing Petitioners subsumed the two latter
programs into the Import Duty Preferences for FIEs
program.
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the Petition was filed, whether there is
a reasonable indication that imports of
subsidized garment hangers from
Vietnam are causing material injury, or
threatening to cause material injury, to
a U.S. industry. See section 703(a)(2) of
the Act. A negative ITC determination
will result in the investigation being
terminated; otherwise, the investigation
will proceed according to statutory and
regulatory time limits.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under
administrative protective orders in
accordance with 19 CFR 351.305. On
January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures, 73 FR 3634. Parties
wishing to participate in this
investigation should ensure that they
meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.
See section 782(b) of the Act. Parties are
hereby reminded that revised
certification requirements are in effect
for company/government officials as
well as their representatives in all
segments of any antidumping duty or
countervailing duty proceedings
initiated on or after March 14, 2011. See
Certification of Factual Information to
Import Administration during
Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR
7491 (February 10, 2011) (Interim Final
Rule) amending 19 CFR 351.303(g)(1)
and (2). The formats for the revised
certifications are provided at the end of
the Interim Final Rule. See also
Certification of Factual Information To
Import Administration During
Antidumping and Countervailing Duty
Proceedings: Supplemental Interim
Final Rule, 76 FR 54697 (September 2,
2011). The Department intends to reject
factual submissions in any proceeding
segments initiated on or after March 14,
2011, if the submitting party does not
comply with the revised certification
requirements.
This notice is issued and published
pursuant to section 777(i) of the Act.
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3739
Dated: January 18, 2012.
Paul Piquado,
Assistant Secretary for Import
Administration.
Appendix I—Scope of the Investigation
The merchandise subject to the
investigation is steel wire garment hangers,
fabricated from carbon steel wire, whether or
not galvanized or painted, whether or not
coated with latex or epoxy or similar
gripping materials, and/or whether or not
fashioned with paper covers or capes (with
or without printing) and/or nonslip features
such as saddles or tubes. These products may
also be referred to by a commercial
designation, such as shirt, suit, strut, caped,
or latex (industrial) hangers.
Specifically excluded from the scope of the
investigation are (a) wooden, plastic, and
other garment hangers that are not made of
steel wire; (b) steel wire garment hangers
with swivel hooks; (c) steel wire garment
hangers with clips permanently affixed; and
(d) chrome-plated steel wire garment hangers
with a diameter of 3.4mm or greater.
The products subject to the investigation
are currently classified under U.S.
Harmonized Tariff Schedule (‘‘HTSUS’’)
subheadings 7326.20.0020 and 7323.99.9080.
Although the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
merchandise is dispositive.
[FR Doc. 2012–1531 Filed 1–24–12; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Executive-led Aerospace and Defense
Industry Trade Mission to Turkey—
Notification
International Trade
Administration, Department of
Commerce.
ACTION: Notice.
AGENCY:
Mission Description
The United States Department of
Commerce, International Trade
Administration, U.S. and Foreign
Commercial Service (CS) is organizing a
U.S.—Turkey Aerospace and Defense
Industry Trade Mission to Ankara and
Istanbul December 3–7, 2012. This
mission will be led by a Senior
Commerce Department official. The
mission’s goal is to introduce a variety
of U.S. aerospace and defense industry
manufacturers and service providers to
end-users and prospective partners
whose needs and capabilities are
targeted to each U.S. participant’s
strengths. Participating in an official
U.S. industry delegation, rather than
traveling to Turkey on their own, will
enhance the companies’ ability to secure
meetings in Ankara and Istanbul. Trade
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mission participants will have the
opportunity to interact extensively with
CS Turkey officers and specialists as
well as State Department and U.S.
Office of Defense Cooperation personnel
to discuss industry developments,
opportunities, and sales strategies.
During the mission, U.S. delegation
members will learn about policies and
opportunities in Turkey’s aerospace and
defense industry. Most industry
manufacturers and component
suppliers, distributors and agents are
based in Ankara or Istanbul, offering the
opportunity for good matchmaking and
networking. In addition to government
briefings, matchmaking and networking
opportunities, the trade mission will
include three site visits to company
facilities and production centers in both
Ankara and Istanbul.
Commercial Setting
Turkey is at the crossroads of Europe,
between the Middle East and Asia and
an emerging aerospace and defense hub
for markets in Europe, the Caucasus,
and the Middle East and North Africa
(MENA). With a population of over 70
million people, it has the world’s sixth
largest army with 720,000 soldiers. This
is the second largest army in NATO
after the United States. The Turkish Air
Force (TAF) is the world’s third largest
operator of the F–16, following the
United States and Israel.
Turkey’s defense industry is financed
primarily by the national budget and
Defense Industry Support Fund, and
partially by military loans. In Fiscal
Year 2011 over $11 billion was allocated
to the Ministry of Defense (MOD)
spending, 47.5 percent of which was
allocated to procurement of goods and
services. There is an emphasis on R&D
capabilities and the advancement of the
national industrial capability. Joint
production and technological
cooperation are preferred to foreign
military sales (FMS) and off the shelf
procurements.
The Turkish market is particularly
promising for U.S. suppliers seeking
joint-venture opportunities. There are
increased opportunities for U.S. smalland medium-sized enterprises within a
Turkish partnership framework to
enable the modernization of the Turkish
Armed Forces. Within the next 25 years,
a large portion of the Turkish Armed
Forces ‘combat weapons and equipment
will need to be replaced or modernized.
A focal point of the trade mission will
be the Turkish Armed Forces
Foundation (TuAFF). Created after the
1974 US embargo over the Cyprus issue,
the TuAFF enables a defense base for
Turkey that creates indigenous or
partnered projects, ensuring an
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independence from a U.S.-only defense
environment. It is critical therefore to
work with Turkish partners and with
the TuAFF where U.S. projects are
concerned. The Commercial Service and
the Office of Defense Cooperation can
assist with appropriate commercial
access to assist U.S. companies
participating in this partnering
endeavor.
The TuAFF is managed by a Board of
Trustees consisting of the Minister of
National Defense, the Deputy Chief of
the General Staff, the Undersecretary of
the Ministry of National Defense and the
Minister of National Defense
Undersecretary of Defense Industry.
Opportunities with the major TuAFF
affiliates and subsidiaries will be a
primary point of interest for mission
participants. The major TuAFF affiliates
and subsidiaries are:
• ASELSAN: Communication and
information technologies, radars,
electronic warfare and intelligence
systems and defense systems
technologies
• Turkish Aerospace Industries (TAI):
Aero structures and space, integrated
helicopter systems, integrated aircraft
systems, training and consultancy
• HAVELSAN: Software and systems
related to C4ISR, naval combat systems,
air defense systems, management
information systems, simulation and
training systems, homeland security
systems and energy management
systems
• ROKETSAN: Rocket and missile
technologies—structural, thermal,
mechanical design; internal ballistics;
guidance-control, weapon systems,
aerodynamic, composite structures,
propellant systems and warhead
technologies
• ISBIR: Alternators, frequency
convertors, gensets
• ASPILSAN: battery pack and Ni-Cd
aircraft batteries
• Tusas Engine Industries (TEI): Parts
and module production, engine
assembly and test maintenance, repair
and overhaul services, engine design
and product development
• DITAS: Ship owner/ship
management, brokering/chartering, ship
and tugboat management, vetting and
ship vetting
• MIKES: Electronic warfare, radar
warning receivers, electronic counter
measure systems, chaff flare dispensing
systems, electronic support measures,
software solutions, avionics
TuAFF organizes the biannual
International Defense Industry Fair
(IDEF) in Istanbul. IDEF is certified by
the U.S. Department of Commerce as a
platform vehicle for U.S. firms to enter
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and expand sales in the Turkish defense
market. As the premier defense
exhibition for Turkey and the region, in
2011 IDEF hosted 575 exhibitors from
44 countries and over 40,000 visitors.
The U.S. Department of Commerce,
Commercial Service, supported 21 U.S.
participants and the U.S. Pavilion at
IDEF 2011.
Civil Aviation
Turkey, a large country with a
growing economy, is the size of Texas
and is strategically located three hours
by plane to 1.5 billion people and $23
trillion of GDP as it is surrounded by
developed (Europe) and emerging
(Russia, Caucasus and MENA. As a
result of Turkey’s growing economy and
population, Turks have come to rely on
domestic and international air service
increasingly over the past years.
International and domestic passenger
numbers in 2009 in Turkey totaled 85
million. An important growth factor for
the Turkish aviation industry is the
growth of the overall economyexpected at 7–8 percent for 2010. This
economic growth has given Turks more
money to travel. Turkey’s per capita
gross national income more than tripled
between 2002 and 2009, to $8,730,
according to World Bank figures. DHMI,
the State Airport Authority is under the
umbrella of the Ministry of
Transportation. DHMI is responsible
and has the final authority for licensing,
tendering, building and operating of
airports, air traffic management and
control, airport management, ground
services, airlines and air safety.
Presently, there are 44 commercial
airports in operation in Turkey. With a
work force of more than 7,500
employees, DHMI is the largest Turkish
procurement authority with respect to
air traffic control (ATC) equipment,
navigation aids, airside airport
infrastructure, and airport security
systems.
DHMI expects to procure safety and
security equipment, ground control
equipment, perimeter security,
communications, runway and landing
lighting as well as automated landing
systems. Specifically mentioned are
bomb detection equipment by nuclear
and chemical detection equipment, xray machine upgrades, next generation
door detectors, fingerprint access to
restricted areas and airport perimeter
security.
Turkey’s aerospace industry has
experienced rapid growth over the past
decade. In 2010, Turkey’s aerospace
import market size was $4.2 billion, a
compound annual growth rate of 12.5
percent since 2000. In 2010, Turkey’s
aerospace imports from the U.S. were
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Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Notices
$2.7 billion (64 percent of the market).
U.S. aerospace companies have a strong
presence in Turkey that is expected to
continue.
Turkey’s strategic location ensures
unrivaled advantages in airline,
maintenance, repair and overhaul
(MRO), cargo and air taxi services in the
region. With the addition of Ordu and
Mersin airports, the number of civil
airports in Turkey grew to 46 in 2010.
Istanbul is considering adding a 3rd
international airport. In 2009, 19
airlines (including 3 cargo airlines) and
61 air taxi operation companies were
active (more recent data is not
available). The increase of regional
airlines will ensure further growth in
the industry. A good example of this
growth is that in 2002, Turkish Airlines
(then a monopoly) flew to 25 locations
from two hubs, total annual domestic
passenger traffic of approximately 8.7
million. Today, over 16 passenger
airlines carry 41 million domestic
passengers and 44 million international
passengers from 7 hubs. These figures
show the diversification and growth of
the civil aviation market. This rapid
growth presents immediate and longterm opportunities for U.S. firms.
Since 2002, there has been a 372
percent increase in domestic passenger
traffic, a 77 percent increase in
international passenger traffic and a 153
percent increase in total (domestic &
international) passenger traffic. There
are a total of 329 private airline
Monday, December 3 .........................................
Tuesday, December 4 ........................................
companies operating in the Turkish
aerospace industry, 17 of which are
Turkish. These companies are creating
demand for aircraft parts (new and
used) as well as safety equipment,
training and management. An example
of airline growth in Turkey is Turkish
Airlines. Turkish Airlines has grown
15–20 percent on average over the past
10 years. Currently Turkish Airlines is
the 4th largest airline in Europe with
142 aircraft (including 64 new aircraft
orders), 159 destinations (38 domestic
and + 121 international) and was named
the Best Airline in Europe at the 2011
Paris Air Show World Airline Awards.
Mission Goals
The goal of the U.S.–Turkey
Aerospace and Defense Industry Trade
Mission is to (1) introduce U.S.
companies to Turkish business partners
and industry representatives; and (2)
introduce U.S. companies to Turkish
government officials to learn about
various U.S.-Turkish and Turkish
aerospace and defense program
opportunities.
Mission Scenario
The trade mission will visit Ankara
and Istanbul, Turkey, December 3–7,
2012.
Trade mission members will meet
with officials from the Ministry of
Defense (UnderSecretary of Defense
Industries/SSM), DHMI, and Turkish
Armed Forces Foundation, and will take
part in business matchmaking
•
•
•
•
•
•
•
Thursday, December 6 ......................................
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•
Friday, December 7 ...........................................
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•
Wednesday, December 5 ...................................
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Participation Requirements
All parties interested in participating
in the Executive-led U.S.–Turkey
Aerospace/Defense Industry Trade
Mission must complete and submit an
application 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
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3741
appointments with private-sector
entities. In addition, participants will
attend an Embassy briefing and
networking events with U.S. and
Turkish government officials and
various Turkish companies, participate
in at least three site visits and multiple
one-on-one business matchmaking
appointments.
Matchmaking efforts will involve
relevant networking groups such as: the
Defense Industry Manufacturers
Association (SASAD), Turkey’s primary
association for producers of defense
systems and equipment, and the two
American Chambers of Commerce in
Turkey. U.S. participants will be
counseled before and after the mission
by U.S. Export Assistance Center trade
specialists, primarily by members of the
Aerospace and Defense Technology
Team. Participation in the mission will
include the following:
• Pre-travel briefings/webinar on
subjects ranging from business practices
in Turkey to security;
• Pre-scheduled meetings with
potential partners, distributors, end
users, and local industry contacts in
Ankara;
• Transportation to/from the hotel to
meetings for the duration of the mission;
• Meetings with key U.S. and Turkish
government officials; and
• Participation in industry
networking receptions.
Proposed Timetable
Trade Mission Participants Arrive in Ankara.
Dinner with CS/ODC/PMA Staff.
Welcome briefing by U.S. Embassy country team.
Presentations by selected trade mission participants to UnderSecretary of Defense Industries (SSM) Murad Bayar (TBC).
Lunch hosted by SASAD, Association of Turkish Defense Industry Companies (TBC).
One-on-One business matchmaking appointments.
Networking Reception with members of Ankara Business Community at Ambassador’s
Residence (TBC).
One-on-one matchmaking appointments.
Lunch and Site visit at Turkish Aerospace Industries (TAI) (TBC).
Fly to Istanbul.
One-on-one business matchmaking appointments.
Lunch hosted by American Business Forum in Turkey (TBC).
Site visit (Turkish Technic MRO with Aerospace companies/Istanbul shipyards for Defense companies) (TBC).
Late afternoon/evening networking event hosted by TABA (TBC).
Trade Mission Participants Depart.
outlined below. Recruitment for the
mission is open on a rolling basis
starting January 16, 2012 and will be
open until we have reached our limit of
15–20 qualified U.S. companies.
form of a participation fee is required.
The participation fee will be $4,850.00
for large firms and $3,435.00 for a small
or medium-sized enterprise (SME),*
Fees and Expenses
* An SME is defined as a firm with 500 or fewer
employees or that otherwise qualifies as a small
business under SBA regulations (see https://
www.sba.gov/services/contracting opportunities/
sizestandardstopics/). Parent companies,
After a company has been selected to
participate on the mission, a payment to
the Department of Commerce in the
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Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Notices
which includes one principal
representative. The fee for each
additional firm representative (large
firm or SME) is $500. Expenses for
lodging, some meals, incidentals, and
airfare to/from Turkey (including the
domestic flight from Ankara to Istanbul)
will be the responsibility of each
mission participant.
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 also certify
that the products and services it seeks
to export through the mission 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.
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Selection Criteria for Participation
Selection will be based on the
following criteria:
• Suitability of a company’s products
or services to the mission’s goals
• Applicant’s potential for business
in Turkey, including likelihood of
exports resulting from the trade mission
• Consistency of the applicant’s goals
and objectives with the stated scope of
the trade mission
Any partisan political activities
(including political contributions) of an
applicant are entirely irrelevant to 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 (https://www.trade.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
affiliates, and subsidiaries will be considered when
determining business size. The dual pricing
schedule reflects the Commercial Service’s user fee
schedule that became effective May 1, 2008 (for
additional information see https://www.export.gov/
newsletter/march2008/initiatives.html).
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18:09 Jan 24, 2012
Jkt 226001
trade shows. The timeline for
recruitment of this mission will allow
for vetting and selection decisions on a
rolling basis beginning January 17, 2012
until the maximum of 15–20
participants are selected or until the
application period ends on September
28, 2012. Although applications will be
accepted through September 28, 2012,
applications received after that date will
be considered only if space and
scheduling constraints permit. All
interested U.S. firms are encouraged to
submit their applications as soon as
possible. We will inform applicants of
selection decisions as soon as possible
after they are internally reviewed.
Contacts
U.S. Commercial Service Turkey: Mr.
Thomas Bruns, Commercial Officer,
(until July 15, 2012), Email:
Thomas.Bruns@trade.gov, Tel: (90)
(312) 455–5555, Fax: (90) 312–467–1.
U.S. Commercial Service Aerospace
and Defense Technology Team: Mark A.
Cooper, Director, U.S. Department of
Commerce, U.S. Export Assistance
Center—Indiana, 1–(317) 582–2300,
Email: mark.cooper@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012–1435 Filed 1–24–12; 8:45 am]
BILLING CODE 3510–FP–P
DEPARTMENT OF COMMERCE
International Trade Administration
India Infrastructure Business
Development Mission—Clarification
and Amendment
International Trade
Administration, Department of
Commerce.
ACTION: Notice.
AGENCY:
The United States Department
of Commerce, International Trade
Administration, U.S. and Foreign
Commercial Service (CS) is publishing
this supplement to the Notice of the
India Infrastructure Business
Development Mission, 76 FR, No. 247,
December 23, 2011, to amend the Notice
to revise the dates of the application
deadline from January 25, 2012 to the
new deadline of February 1, 2012.
SUPPLEMENTARY INFORMATION:
SUMMARY:
has been determined that an additional
week is needed to allow for additional
recruitment and marketing in support of
the mission. Applications will be now
be accepted through February 1, 2012
(and after that date if space remains and
scheduling constraints permit),
interested U.S. infrastructure firms and
trade organizations which have not
already submitted an application are
encouraged to do so as soon as possible.
Amendments
1. For the reasons stated above, the
Timeframe for Recruitment and
Applications section of the Notice of the
India Infrastructure Business
Development Mission, 76 FR, No. 247,
December 23, 2011, is amended to read
as follows:
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 (https://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 this
mission will conclude no later than
February 1, 2012. The U.S. Department
of Commerce will review applications
and make selection decisions on a
rolling basis beginning August 31, 2011.
We will inform all applicants of
selection decisions no later than
February 15, 2012. Applications
received after the February 15 deadline
will be considered only if space and
scheduling constraints permit.
FOR FURTHER INFORMATION CONTACT:
Jennifer Andberg, Office of Business
Liaison, Phone: (202) 482–1360; Fax:
(202) 482–4054, Email:
businessliaison@doc.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012–1436 Filed 1–24–12; 8:45 a.m.]
BILLING CODE 3510–FP–P
Amendments To Revise the Dates and
Provide for Selection of Applicants on
a Rolling Basis
Background
Recruitment for this Mission began in
December 2011. Due to the holidays, it
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]]>Agencies
[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3739-3742]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1435]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
Executive-led Aerospace and Defense Industry Trade Mission to
Turkey--Notification
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
-----------------------------------------------------------------------
Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS) is organizing
a U.S.--Turkey Aerospace and Defense Industry Trade Mission to Ankara
and Istanbul December 3-7, 2012. This mission will be led by a Senior
Commerce Department official. The mission's goal is to introduce a
variety of U.S. aerospace and defense industry manufacturers and
service providers to end-users and prospective partners whose needs and
capabilities are targeted to each U.S. participant's strengths.
Participating in an official U.S. industry delegation, rather than
traveling to Turkey on their own, will enhance the companies' ability
to secure meetings in Ankara and Istanbul. Trade
[[Page 3740]]
mission participants will have the opportunity to interact extensively
with CS Turkey officers and specialists as well as State Department and
U.S. Office of Defense Cooperation personnel to discuss industry
developments, opportunities, and sales strategies.
During the mission, U.S. delegation members will learn about
policies and opportunities in Turkey's aerospace and defense industry.
Most industry manufacturers and component suppliers, distributors and
agents are based in Ankara or Istanbul, offering the opportunity for
good matchmaking and networking. In addition to government briefings,
matchmaking and networking opportunities, the trade mission will
include three site visits to company facilities and production centers
in both Ankara and Istanbul.
Commercial Setting
Turkey is at the crossroads of Europe, between the Middle East and
Asia and an emerging aerospace and defense hub for markets in Europe,
the Caucasus, and the Middle East and North Africa (MENA). With a
population of over 70 million people, it has the world's sixth largest
army with 720,000 soldiers. This is the second largest army in NATO
after the United States. The Turkish Air Force (TAF) is the world's
third largest operator of the F-16, following the United States and
Israel.
Turkey's defense industry is financed primarily by the national
budget and Defense Industry Support Fund, and partially by military
loans. In Fiscal Year 2011 over $11 billion was allocated to the
Ministry of Defense (MOD) spending, 47.5 percent of which was allocated
to procurement of goods and services. There is an emphasis on R&D
capabilities and the advancement of the national industrial capability.
Joint production and technological cooperation are preferred to foreign
military sales (FMS) and off the shelf procurements.
The Turkish market is particularly promising for U.S. suppliers
seeking joint-venture opportunities. There are increased opportunities
for U.S. small- and medium-sized enterprises within a Turkish
partnership framework to enable the modernization of the Turkish Armed
Forces. Within the next 25 years, a large portion of the Turkish Armed
Forces `combat weapons and equipment will need to be replaced or
modernized.
A focal point of the trade mission will be the Turkish Armed Forces
Foundation (TuAFF). Created after the 1974 US embargo over the Cyprus
issue, the TuAFF enables a defense base for Turkey that creates
indigenous or partnered projects, ensuring an independence from a U.S.-
only defense environment. It is critical therefore to work with Turkish
partners and with the TuAFF where U.S. projects are concerned. The
Commercial Service and the Office of Defense Cooperation can assist
with appropriate commercial access to assist U.S. companies
participating in this partnering endeavor.
The TuAFF is managed by a Board of Trustees consisting of the
Minister of National Defense, the Deputy Chief of the General Staff,
the Undersecretary of the Ministry of National Defense and the Minister
of National Defense Undersecretary of Defense Industry.
Opportunities with the major TuAFF affiliates and subsidiaries will
be a primary point of interest for mission participants. The major
TuAFF affiliates and subsidiaries are:
ASELSAN: Communication and information technologies,
radars, electronic warfare and intelligence systems and defense systems
technologies
Turkish Aerospace Industries (TAI): Aero structures and
space, integrated helicopter systems, integrated aircraft systems,
training and consultancy
HAVELSAN: Software and systems related to C4ISR, naval
combat systems, air defense systems, management information systems,
simulation and training systems, homeland security systems and energy
management systems
ROKETSAN: Rocket and missile technologies--structural,
thermal, mechanical design; internal ballistics; guidance-control,
weapon systems, aerodynamic, composite structures, propellant systems
and warhead technologies
ISBIR: Alternators, frequency convertors, gensets
ASPILSAN: battery pack and Ni-Cd aircraft batteries
Tusas Engine Industries (TEI): Parts and module
production, engine assembly and test maintenance, repair and overhaul
services, engine design and product development
DITAS: Ship owner/ship management, brokering/chartering,
ship and tugboat management, vetting and ship vetting
MIKES: Electronic warfare, radar warning receivers,
electronic counter measure systems, chaff flare dispensing systems,
electronic support measures, software solutions, avionics
TuAFF organizes the biannual International Defense Industry Fair (IDEF)
in Istanbul. IDEF is certified by the U.S. Department of Commerce as a
platform vehicle for U.S. firms to enter and expand sales in the
Turkish defense market. As the premier defense exhibition for Turkey
and the region, in 2011 IDEF hosted 575 exhibitors from 44 countries
and over 40,000 visitors. The U.S. Department of Commerce, Commercial
Service, supported 21 U.S. participants and the U.S. Pavilion at IDEF
2011.
Civil Aviation
Turkey, a large country with a growing economy, is the size of
Texas and is strategically located three hours by plane to 1.5 billion
people and $23 trillion of GDP as it is surrounded by developed
(Europe) and emerging (Russia, Caucasus and MENA. As a result of
Turkey's growing economy and population, Turks have come to rely on
domestic and international air service increasingly over the past
years. International and domestic passenger numbers in 2009 in Turkey
totaled 85 million. An important growth factor for the Turkish aviation
industry is the growth of the overall economy- expected at 7-8 percent
for 2010. This economic growth has given Turks more money to travel.
Turkey's per capita gross national income more than tripled between
2002 and 2009, to $8,730, according to World Bank figures. DHMI, the
State Airport Authority is under the umbrella of the Ministry of
Transportation. DHMI is responsible and has the final authority for
licensing, tendering, building and operating of airports, air traffic
management and control, airport management, ground services, airlines
and air safety. Presently, there are 44 commercial airports in
operation in Turkey. With a work force of more than 7,500 employees,
DHMI is the largest Turkish procurement authority with respect to air
traffic control (ATC) equipment, navigation aids, airside airport
infrastructure, and airport security systems.
DHMI expects to procure safety and security equipment, ground
control equipment, perimeter security, communications, runway and
landing lighting as well as automated landing systems. Specifically
mentioned are bomb detection equipment by nuclear and chemical
detection equipment, x-ray machine upgrades, next generation door
detectors, fingerprint access to restricted areas and airport perimeter
security.
Turkey's aerospace industry has experienced rapid growth over the
past decade. In 2010, Turkey's aerospace import market size was $4.2
billion, a compound annual growth rate of 12.5 percent since 2000. In
2010, Turkey's aerospace imports from the U.S. were
[[Page 3741]]
$2.7 billion (64 percent of the market). U.S. aerospace companies have
a strong presence in Turkey that is expected to continue.
Turkey's strategic location ensures unrivaled advantages in
airline, maintenance, repair and overhaul (MRO), cargo and air taxi
services in the region. With the addition of Ordu and Mersin airports,
the number of civil airports in Turkey grew to 46 in 2010. Istanbul is
considering adding a 3rd international airport. In 2009, 19 airlines
(including 3 cargo airlines) and 61 air taxi operation companies were
active (more recent data is not available). The increase of regional
airlines will ensure further growth in the industry. A good example of
this growth is that in 2002, Turkish Airlines (then a monopoly) flew to
25 locations from two hubs, total annual domestic passenger traffic of
approximately 8.7 million. Today, over 16 passenger airlines carry 41
million domestic passengers and 44 million international passengers
from 7 hubs. These figures show the diversification and growth of the
civil aviation market. This rapid growth presents immediate and long-
term opportunities for U.S. firms.
Since 2002, there has been a 372 percent increase in domestic
passenger traffic, a 77 percent increase in international passenger
traffic and a 153 percent increase in total (domestic & international)
passenger traffic. There are a total of 329 private airline companies
operating in the Turkish aerospace industry, 17 of which are Turkish.
These companies are creating demand for aircraft parts (new and used)
as well as safety equipment, training and management. An example of
airline growth in Turkey is Turkish Airlines. Turkish Airlines has
grown 15-20 percent on average over the past 10 years. Currently
Turkish Airlines is the 4th largest airline in Europe with 142 aircraft
(including 64 new aircraft orders), 159 destinations (38 domestic and +
121 international) and was named the Best Airline in Europe at the 2011
Paris Air Show World Airline Awards.
Mission Goals
The goal of the U.S.-Turkey Aerospace and Defense Industry Trade
Mission is to (1) introduce U.S. companies to Turkish business partners
and industry representatives; and (2) introduce U.S. companies to
Turkish government officials to learn about various U.S.-Turkish and
Turkish aerospace and defense program opportunities.
Mission Scenario
The trade mission will visit Ankara and Istanbul, Turkey, December
3-7, 2012.
Trade mission members will meet with officials from the Ministry of
Defense (UnderSecretary of Defense Industries/SSM), DHMI, and Turkish
Armed Forces Foundation, and will take part in business matchmaking
appointments with private-sector entities. In addition, participants
will attend an Embassy briefing and networking events with U.S. and
Turkish government officials and various Turkish companies, participate
in at least three site visits and multiple one-on-one business
matchmaking appointments.
Matchmaking efforts will involve relevant networking groups such
as: the Defense Industry Manufacturers Association (SASAD), Turkey's
primary association for producers of defense systems and equipment, and
the two American Chambers of Commerce in Turkey. U.S. participants will
be counseled before and after the mission by U.S. Export Assistance
Center trade specialists, primarily by members of the Aerospace and
Defense Technology Team. Participation in the mission will include the
following:
Pre-travel briefings/webinar on subjects ranging from
business practices in Turkey to security;
Pre-scheduled meetings with potential partners,
distributors, end users, and local industry contacts in Ankara;
Transportation to/from the hotel to meetings for the
duration of the mission;
Meetings with key U.S. and Turkish government officials;
and
Participation in industry networking receptions.
Proposed Timetable
------------------------------------------------------------------------
------------------------------------------------------------------------
Monday, December 3........... Trade Mission Participants
Arrive in Ankara.
Dinner with CS/ODC/PMA Staff.
Tuesday, December 4.......... Welcome briefing by U.S. Embassy
country team.
Presentations by selected trade
mission participants to UnderSecretary
of Defense Industries (SSM) Murad Bayar
(TBC).
Lunch hosted by SASAD,
Association of Turkish Defense Industry
Companies (TBC).
One-on-One business matchmaking
appointments.
Networking Reception with
members of Ankara Business Community at
Ambassador's Residence (TBC).
Wednesday, December 5........ One-on-one matchmaking
appointments.
Lunch and Site visit at Turkish
Aerospace Industries (TAI) (TBC).
Fly to Istanbul.
Thursday, December 6......... One-on-one business matchmaking
appointments.
Lunch hosted by American
Business Forum in Turkey (TBC).
Site visit (Turkish Technic MRO
with Aerospace companies/Istanbul
shipyards for Defense companies) (TBC).
Late afternoon/evening
networking event hosted by TABA (TBC).
Friday, December 7........... Trade Mission Participants
Depart.
------------------------------------------------------------------------
Participation Requirements
All parties interested in participating in the Executive-led U.S.-
Turkey Aerospace/Defense Industry Trade Mission must complete and
submit an application 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.
Recruitment for the mission is open on a rolling basis starting January
16, 2012 and will be open until we have reached our limit of 15-20
qualified U.S. companies.
Fees and Expenses
After a company 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 will be $4,850.00 for large
firms and $3,435.00 for a small or medium-sized enterprise (SME),\*\
[[Page 3742]]
which includes one principal representative. The fee for each
additional firm representative (large firm or SME) is $500. Expenses
for lodging, some meals, incidentals, and airfare to/from Turkey
(including the domestic flight from Ankara to Istanbul) will be the
responsibility of each mission participant.
---------------------------------------------------------------------------
\*\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see https://www.sba.gov/services/contracting opportunities/
sizestandardstopics/). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing schedule reflects the Commercial Service's user fee
schedule that became effective May 1, 2008 (for additional
information see https://www.export.gov/newsletter/march2008/initiatives.html).
---------------------------------------------------------------------------
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 also certify that the products and
services it seeks to export through the mission 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.
Selection Criteria for Participation
Selection will be based on the following criteria:
Suitability of a company's products or services to the
mission's goals
Applicant's potential for business in Turkey, including
likelihood of exports resulting from the trade mission
Consistency of the applicant's goals and objectives with
the stated scope of the trade mission
Any partisan political activities (including political
contributions) of an applicant are entirely irrelevant to 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 (https://www.trade.gov.trade-missions)
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. The timeline for recruitment of this
mission will allow for vetting and selection decisions on a rolling
basis beginning January 17, 2012 until the maximum of 15-20
participants are selected or until the application period ends on
September 28, 2012. Although applications will be accepted through
September 28, 2012, applications received after that date will be
considered only if space and scheduling constraints permit. All
interested U.S. firms are encouraged to submit their applications as
soon as possible. We will inform applicants of selection decisions as
soon as possible after they are internally reviewed.
Contacts
U.S. Commercial Service Turkey: Mr. Thomas Bruns, Commercial
Officer, (until July 15, 2012), Email: Thomas.Bruns@trade.gov, Tel:
(90) (312) 455-5555, Fax: (90) 312-467-1.
U.S. Commercial Service Aerospace and Defense Technology Team: Mark
A. Cooper, Director, U.S. Department of Commerce, U.S. Export
Assistance Center--Indiana, 1-(317) 582-2300, Email:
mark.cooper@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-1435 Filed 1-24-12; 8:45 am]
BILLING CODE 3510-FP-P
