Healthcare Trade Mission to Russia, June 3-7, 2013, 77032-77035 [2012-31425]

Download as PDF 77032 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Notices On July 30, 2012, all remaining parties that had requested an administrative review during the instant POR withdrew their requests for review given petitioners’ filing of a request for a ‘‘no interest’’ changed circumstances review, seeking revocation of the Order. Period of Review The POR is December 1, 2010, through November 30, 2011. Scope of the Order The merchandise covered by the order is honey from Argentina. The products covered are natural honey, artificial honey containing more than 50 percent natural honey by weight, preparations of natural honey containing more than 50 percent natural honey by weight, and flavored honey. The subject merchandise includes all grades and colors of honey whether in liquid, creamed, comb, cut comb, or chunk form, and whether packaged for retail or in bulk form. The merchandise is currently classifiable under subheadings 0409.00.00, 1702.90.90, and 2106.90.99 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the Department’s written description of the merchandise under the order is dispositive. mstockstill on DSK4VPTVN1PROD with Rescission of Antidumping Duty Administrative Review As the Order on honey from Argentina is being revoked, effective as of the first day of this administrative review period (i.e., December 1, 2010),14 the Department is rescinding this administrative review consistent with 19 CFR 351.213(d)(4) and 351.222(g)(4). Assessment Instructions Given the revocation of the Order, the Department will instruct CBP to terminate suspension of liquidation effective December 1, 2010. The Department will instruct CBP to liquidate without regard to antidumping duties, all unliquidated entries of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after December 1, 2010. In accordance with section 778 of the Act, we will also instruct CBP to pay interest on and refund any AD deposits with respect to the subject merchandise entered, or withdrawn from warehouse, for consumption on or after December 1, 2010, the first day of this administrative review period, which is now terminated by virtue of the effective date of the 14 See notice of final results of changed circumstances review of honey from Argentina signed concurrently with this notice. VerDate Mar<15>2010 21:28 Dec 28, 2012 Jkt 229001 revocation. The Department intends to issue appropriate assessment instructions to CBP 15 days after the date of publication of this notice of rescission of administrative review. Notification Regarding Administrative Protective Orders This notice serves as a reminder to parties subject to administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. We are issuing and publishing this notice in accordance with sections 751(a)(1) and 777(i)(1) of the Tariff Act of 1930, as amended, and 19 CFR 351.213(d)(4). Dated: December 20, 2012. Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2012–31450 Filed 12–28–12; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration Healthcare Trade Mission to Russia, June 3–7, 2013 International Trade Administration, Department of Commerce. ACTION: Notice. AGENCY: Mission Description The U.S. Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service (CS), is organizing a Healthcare Trade Mission to Moscow and St. Petersburg, Russia from June 3–7, 2013 which will be led by a senior Commerce official. Russia, with 140 million consumers and rapidly growing demand for healthcare products and services, presents lucrative opportunities for U.S. companies. Equipment, technologies, and investments are needed in the healthcare sector, specifically in the medical equipment, dental equipment and biotechnology sub-sectors. This healthcare mission will directly contribute to the National Export Initiative (NEI) by assisting U.S. businesses in entering the Russian healthcare market and increasing U.S. exports. It will also be a deliverable for PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 the U.S.-Russia Bilateral Presidential Commission Business Development and Economic Relations Working Group. The mission will help participants gain market insights, make industry contacts, solidify business strategies, and advance specific projects with the goal of increasing U.S. exports to Russia. The mission will include one-on-one business appointments with prescreened potential partners, market briefings, and networking events. Joining this official U.S. delegation will provide participating companies an opportunity to assess the Russian healthcare market. Commercial Setting Russia is one of the world’s fastest growing economies and its healthcare system is evolving rapidly with a promising outlook for U.S. healthcare exports, particularly in the medical equipment, dental equipment and biotechnology subsectors. Russia’s National Health Project aims at improving access and funding for healthcare and improving Russia’s healthcare sector, and has created opportunities for increased U.S. exports in the healthcare sector. Approximately 20% of overall health care spending is covered out-of- pocket by patients. Voluntary healthcare insurance programs currently account for approximately one-third of total private healthcare expenditures. According to future reform plans, mandatory insurance funds will serve as the main source of healthcare funding and will provide transparency and monetary control within the system. The National Health Project was signed by President Putin in 2005 and was designed to significantly improve Russian healthcare. From 2011–2013, $15.4 billion was allocated from both the federal budget and the Mandatory Healthcare Insurance Fund [to the National Health Project?]. The Program of Modernization in Healthcare 2011– 2012, aimed at renovating and upgrading healthcare facilities, was financed at $11 billion. The significant funding reflects the current need for new modern technologies for diagnostics and treatment. Russian patients are becoming more aware of modern medical technologies around the world and expect the same types of treatment in Russia. In addition to these programs that are currently being implemented, the Ministry of Health has recently developed a draft government program called ‘‘Development of Healthcare in the Russian Federation.’’ This document is currently under review for approval. It contains the principles of preventive E:\FR\FM\31DEN1.SGM 31DEN1 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Notices medicine, quality of provided healthcare services, education of medical personnel, and overall changes in the healthcare infrastructure. The Ministry of Industry and Trade is also currently developing a strategy for the development of the medical industry through 2020. With continued growth in this sector, World Trade Organization (WTO) accession, and government plans to modernize and invest in Russian healthcare through 2020, American companies should be poised to make significant contributions to the Russian healthcare market. mstockstill on DSK4VPTVN1PROD with Medical Equipment The medical equipment sector is one of the fastest-growing sectors of the economy. There is a relatively stable macroeconomic situation in Russia with much unsatisfied deferred demand for medical equipment across the country. In addition, the Russian government is focused on this sector and has increased government financing for the purchase of medical equipment. For example, the Program of High-Tech Medical Assistance 2011–2013 was financed at $4 billion. In 2011, the market for medical equipment was estimated at $4.9 billion. During the next nine years, experts expect yearly market growth to be 13.5%. The most promising market segments include diagnostics and visualization, cardiovascular, ophthalmology, orthopedics, laboratory diagnostics and urology equipment and technology. For example, the average annual increase from 2006–2011 in market share for diagnostics and visualization equipment was 18% and in medical IT 10%. Since commercialization of medical equipment manufactured in Russia remains low, the market for medical equipment is heavily dependent on imports. The average annual increase in the import market for medical equipment from 2006 to 2011 was approximately 23%. Medical equipment imports in 2006 were $14.2 billion, with steady growth to $41 billion in 2011. Membership in the WTO will also benefit foreign exports to Russia. After full implementation of the WTO accession and Permanent Normal Trade Relations, tariffs for medical equipment are estimated to range from 0% to 7%. Currently, tariffs range as high as 15% to 20%. Dental Equipment The Russian dental market is also a sector that is expanding and showing good growth potential. In 2011, total world imports into Russia for dental equipment were approximately $500 VerDate Mar<15>2010 21:28 Dec 28, 2012 Jkt 229001 million, reflecting the need for dental equipment for use in the large market for dental services in Russia, which was approximately $6 billion in 2011. The number of clinics, practicing dentists, technicians and patient visits are all on the rise. There are over 9,500 dental units operating in Moscow, with 3,000 state clinics and over 6,500 private clinics. There are 670 municipal dental clinics and 2900 dental departments within those clinics. The highest level of dental industry privatization is in the Moscow region. The number of practicing dentists in Russia is 68,000, of which 35,000 are members of the Russian Dental Association. The number of patient visits is approximately 150 million a year. However, the ratio of dentists to patients in Russia is still only 45/ 100,000 people, which is below levels in the United States and most European countries. In the United States, the ratio of patients to dentists is 60/100,000. The dental market is one of the most organized markets in Russia. The largest associations are the Russian Dental Association, which has 69 regional divisions and the Dental Industry (DI ROSI) which has 45 member companies. These associations play an important role in the introduction of new technologies and practices, actively participate in trade events, and regularly publish in professional journals. As a result, they have a large impact on the industry. The two major dental universities are Moscow State Medical and Dental University and the Sechenov Medical Academy in Moscow. Domestic production of dental equipment is insufficient for the Russian market and very few new products are produced domestically. Local manufacturers such as Averon, VladMiVa, Raduga Rossii, Geosoft, Stomadent Omega, and Tselit produce a wide range of dental equipment. Since Russia’s domestic dental production level meets only 20% of total demand, imports play a significant role in the market. The majority of dental equipment is supplied from the United States, Germany, France, Switzerland, Japan, and other countries. Many large U.S. and international companies have offices in Russia, including Densply, 3M, Nobel Biocare, Mileston, Midmarek, 3i, Sirona, Kavo, Colgate, Kodak-Eastman, PhilipsSonicare, Discuss Dental (now owned by Philips), Oral B, and Wrigley Adeck. There are about 500 distributors of dental equipment in Russia. The major distributors are located in Moscow and work in other regions through smaller local distributors or through regional representatives. Import customs PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 77033 clearances are executed more easily in larger cities like Moscow and St. Petersburg. There are strict product registration and certification procedures necessary for the release of dental equipment into the market. The registration and certification process can be complicated, time-consuming, and expensive. It may require a regular market presence by the manufacturer or an authorized representative with competent Russian language skills and knowledge of the local market to be able to complete the process. Biotechnology In the last several years, Russia has been developing an innovative modern economy by focusing on information technologies and nanotechnologies. The biotechnologies area has large potential and is underdeveloped, but is evolving because of the need to extend life expectancies within the country. LargeU.S. multinational companies like Celgene, Amgen, and Genzyme are established in the market and are already working in the biotechnology field. Despite the fact that major companies from Europe and the U.S. have already entered the market, there is still room for small innovative companies in the biotechnology area. Good examples include two small U.S. biotechnology companies, Bind and Selecta, which have recently opened offices in Russia to start research and development, which is a priority of the Russian government. The Government Commission on High Technologies and Innovations signed a decision in April, 2011 to create a State Coordination Program for the Development of Biotechnology in the Russian Federation through 2020. The Ministry of Economic Development is responsible for this State Coordination Program, which focuses on several areas including biopharmaceuticals and biomedicine. 1. Biopharmaceuticals (essential medicines, including biogenerics, hormones, cytokines, therapeutic monoclonal antibodies, peptides, phytomedicines, new generation vaccines, antibiotics and bacteriophages) 2. Biomedicine (molecular diagnostics, personalized medicine, engineered cell and tissue for therapeutic purposes, biocompatible materials) The Russian market for biopharmaceuticals in 2010 was estimated at $2.2 billion, of which $1.3 billion was dedicated to cytokines, genetically engineered hormones (including insulin), coagulants and therapeutic enzymes, monoclonal E:\FR\FM\31DEN1.SGM 31DEN1 77034 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Notices antibodies ($350 million), and vaccines ($350 million). For example, the sales of antibodies and vaccines are expected to rise to $480 million and $370 million respectively by the year 2015. The Russian biotechnology market is focused on the development and manufacturing of products for the diagnosis and treatment of human diseases and for the prevention of harmful effects of the environment on humans. The world market for biotechnology (used for molecular genetics diagnostic technologies) was $13.5 billion in 2010, and is expected to be $33.3 billion by 2015. The access to credible data for the Russian market is low because the segment has not been fully developed, but it is expected to mature in the near future. Biotechnology is a large part of the overall pharmaceutical sector. According to industry experts, Russia is currently one of the ten largest pharmaceutical markets in the world. In 2011, the pharmaceutical market volume amounted to $26 billion in end user prices, which is 12% higher than in 2010. An important recent trend was the planning and formation of ‘‘pharmaceutical clusters’’. This was due in part to the completion of the ‘‘Strategy of Development of the Pharmaceutical Industry- 2020’’, developed by the Ministry of Industry and Trade which outlines some government priorities. The Russian pharmaceutical market is import driven with 76% of drugs taken in Russia produced abroad. The only domestic manufacturer in the top 20 leading players in the Russian pharmaceutical market is Pharmstandart. Mission Goals The goal of the Healthcare Trade Mission to Russia is to promote the export of U.S. goods and services by: (1) Introducing U.S. companies to industry representatives and potential clients and partners; and (2) introducing U.S. companies to industry experts to learn about policy initiatives that will impact the Russian healthcare industry in general as well as the medical equipment, dental equipment and biotechnology sectors. Mission Scenario In Moscow, trade mission members will participate in an Embassy briefing from industry experts and take part in one-on-one business appointments with private-sector organizations. In addition, they will enjoy a networking event with industry leaders and potential partners. In St. Petersburg, all of the delegates will have customized one-on-one business appointments and attend another networking reception. Matchmaking efforts will involve partners such as the Association of International Pharmaceutical Manufacturers (AIPM), Innovative Pharma, Association of International Manufacturers of Medical Devices (IMEDA), the American Chamber of Commerce in Russia, and the Russian Dental Association. U.S. participants will be counseled before, during, and after the mission by CS Russia staff actively involved in the healthcare trade mission. PROPOSED TIME TABLE Monday, June 3, Day 1 ............................. Tuesday, June 4, Day 2 ............................ Wednesday, June 5, Day 3 ....................... Thursday, June 6, Day 4 ........................... Friday, June 7, Day 5 ................................ Moscow. Briefing by the U.S. Embassy and industry experts. Site Visits in afternoon. Moscow. One-on-one business appointments. Networking reception. Depart for St. Petersburg. Travel day and free evening in St. Petersburg. St. Petersburg. One-on-one business appointments. Networking reception. St. Petersburg. Additional meetings and follow-up appointments. Departure for the United States (Friday evening or Saturday, June 8). mstockstill on DSK4VPTVN1PROD with Participation Requirements All parties interested in participating in the trade mission must be active in the healthcare sector and complete and submit an application package 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. A minimum of 10 and maximum of 13 companies will be selected to participate in the mission from the applicant pool. Applicants that are U.S. companies already doing business in Russia as well as those seeking to enter the Russian market for the first time may apply. Fees and Expenses After a company has been selected to participate in the mission, a payment to VerDate Mar<15>2010 21:28 Dec 28, 2012 Jkt 229001 the Department of Commerce in the form of a participation fee is required. The participation fee will be $5950 for large firms and $5350 for a small or medium-sized enterprise (SME) trade association, which will cover one representative.* 1 The fee for an additional representative (SME/trade association or large company) is $750, which will cover one representative. The fee for an additional representative (SME or large company) is $750. 1 An SME is defined as a firm with 500 or fewer employees or that otherwise qualifies as a small business under SBA regulations (see http:// www.sba.gov/services/contractingopportunities/ sizestandardstopics/index.html). Parent companies, affiliates, and subsidiaries will be considered when determining business size. The dual pricing reflects the Commercial Service’s user fee schedule that became effective May 1, 2008 (see http:// www.export.gov/newsletter/march2008/ initiatives.html for additional information). PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 Expenses for travel, lodging, meals, and incidentals will be the responsibility of each mission participant. Delegation members will be able to take advantage of U.S. Embassy rates for hotel rooms beginning Sunday, June 2 in Moscow and through Saturday, June 8 in St. Petersburg. Please note that the trade mission begins in Moscow and ends in St. Petersburg. Early arrival nights in Moscow, return transportation to Moscow from St. Petersburg, or the extension of stay in St. Petersburg will be the responsibility of the participants. 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 E:\FR\FM\31DEN1.SGM 31DEN1 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Notices 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 51 percent U.S. content of the value of the finished product or service. In the case of a trade association, the applicant must certify that for each company to be represented by the association, the products and/or services the represented company seeks to export are either produced in the United States or, if not, marketed under the name of a U.S. firm and have at least fifty-one percent U.S. content. mstockstill on DSK4VPTVN1PROD with Criteria for Participation Selection will be based on the following criteria: • Suitability of the company’s (or in the case of a trade association, member companies’) products or services to the market. • Applicant’s (or in the case of a trade association, member companies’) potential for business in Russia and in the region, including likelihood of exports resulting from the mission. • Consistency of the applicant’s (or in the case of a trade association, member companies’) goals and objectives with the stated scope of the mission. Diversity of company size, sector or subsector, and location may also be considered during the review process. Referrals from political organizations and any documents containing references to partisan political activities (including political contributions) will be removed from an applicant’s submission and not considered during the selection process. 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 (http://www.ita.doc.gov/ doctm/tmcal.html) 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 U.S. Department of Commerce will begin reviewing applications and making VerDate Mar<15>2010 21:28 Dec 28, 2012 Jkt 229001 selection decisions on a rolling basis beginning on December 28, 2012 until the maximum of 20 participants is selected. Applications received after March 15, 2013 will be considered only if space and scheduling constraints permit. Contacts Jessica Arnold, U.S. Commercial Service, Washington, DC, Tel: (202) 482–2026, Jessica.Arnold@trade.gov. Timothy Cannon, U.S. Commercial Service, U.S. Embassy, Moscow, Tel: +7 495 528 55 32, Timothy.Cannon@trade.gov. Yuliya Vinogradova, U.S. Commercial Service, U.S. Embassy, Moscow, Tel: +7 495 728 55 86, Yuliya.Vinogradova@trade.gov. 77035 71778, first column, correct the subject heading of the notice to read: U.S. Infrastructure Trade Mission to Colombia and Panama; Bogota, Columbia and Panama City, Panama, May 13–16, 2013. Dated: December 13, 2012 Elnora Moye, Trade Program Assistant. [FR Doc. 2012–31426 Filed 12–28–12; 8:45 am] BILLING CODE 3510–FP–P DEPARTMENT OF COMMERCE National Institute of Standards and Technology Elnora Moye, Trade Program Assistant. Proposed Information Collection; Comment Request; Malcolm Baldrige National Quality Award and Examiner Applications [FR Doc. 2012–31425 Filed 12–28–12; 8:45 am] AGENCY: BILLING CODE 3510–FP–P National Institute of Standards and Technology (NIST), Commerce. ACTION: Notice. DEPARTMENT OF COMMERCE SUMMARY: International Trade Administration U.S. Infrastructure Trade Mission to Colombia and Panama; Bogota, Columbia and Panama City, Panama, May 13–16, 2012; Correction International Trade Administration, Department of Commerce. ACTION: Notice; Correction. AGENCY: The United States Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service published a document in the Federal Register of December 4, 2012 regarding the U.S. Infrastructure Trade Mission to Colombia and Panama May 13–16, 2013. The subject heading of the document incorrectly indicated the year 2012 instead of 2013. All other information in the December 4, 2012 Notice, including the February 15, 2013 application deadline, is correct. FOR FURTHER INFORMATION CONTACT: Arica N Young, Commercial Service Trade Missions Program, Tel: 202–482– 6219, Fax: 202–482–9000, Email: arica.young@trade.gov; or Carlos Suarez, U.S. Commercial Service Colombia, Tel: 57–1–2752519, Email: carlos.suarez@trade.gov; or Enrique Tellez, U.S. Commercial Service Panama, Tel: 507–317–5080, Email: enrique.tellez@trade.gov. SUMMARY: Correction In the Federal Register of December 4, 2012, in FR Doc. 2012–29306 on page PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. DATES: Written comments must be submitted on or before March 1, 2013. ADDRESSES: Direct all written comments to Jennifer Jessup, Departmental Paperwork Clearance Officer, Department of Commerce, Room 6616, 14th and Constitution Avenue NW., Washington, DC 20230 (or via the Internet at jjessup@doc.gov). FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the information collection instrument and instructions should be directed to Dawn Bailey, Baldrige Performance Excellence Program, 100 Bureau Drive, Stop 1020, National Institute of Standards and Technology, Gaithersburg, Maryland 20899–1020; telephone (301) 975–3074, fax (301) 948–3716, email dawn.bailey@nist.gov. SUPPLEMENTARY INFORMATION: I. Abstract The Department of Commerce is responsible for the Baldrige Performance Excellence Program (BPEP) and the Malcolm Baldrige National Quality (BNQP) Award. Directly associated with this Award is the Board of Examiners, an integral volunteer workforce for BPEP (managed by NIST). An applicant for the MBNQA is E:\FR\FM\31DEN1.SGM 31DEN1

Agencies

[Federal Register Volume 77, Number 250 (Monday, December 31, 2012)]
[Notices]
[Pages 77032-77035]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31425]


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DEPARTMENT OF COMMERCE

International Trade Administration


Healthcare Trade Mission to Russia, June 3-7, 2013

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

-----------------------------------------------------------------------

Mission Description

    The U.S. Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service (CS), is organizing 
a Healthcare Trade Mission to Moscow and St. Petersburg, Russia from 
June 3-7, 2013 which will be led by a senior Commerce official.
    Russia, with 140 million consumers and rapidly growing demand for 
healthcare products and services, presents lucrative opportunities for 
U.S. companies. Equipment, technologies, and investments are needed in 
the healthcare sector, specifically in the medical equipment, dental 
equipment and biotechnology sub-sectors. This healthcare mission will 
directly contribute to the National Export Initiative (NEI) by 
assisting U.S. businesses in entering the Russian healthcare market and 
increasing U.S. exports. It will also be a deliverable for the U.S.-
Russia Bilateral Presidential Commission Business Development and 
Economic Relations Working Group.
    The mission will help participants gain market insights, make 
industry contacts, solidify business strategies, and advance specific 
projects with the goal of increasing U.S. exports to Russia. The 
mission will include one-on-one business appointments with pre-screened 
potential partners, market briefings, and networking events. Joining 
this official U.S. delegation will provide participating companies an 
opportunity to assess the Russian healthcare market.

Commercial Setting

    Russia is one of the world's fastest growing economies and its 
healthcare system is evolving rapidly with a promising outlook for U.S. 
healthcare exports, particularly in the medical equipment, dental 
equipment and biotechnology subsectors. Russia's National Health 
Project aims at improving access and funding for healthcare and 
improving Russia's healthcare sector, and has created opportunities for 
increased U.S. exports in the healthcare sector.
    Approximately 20% of overall health care spending is covered out-
of- pocket by patients. Voluntary healthcare insurance programs 
currently account for approximately one-third of total private 
healthcare expenditures. According to future reform plans, mandatory 
insurance funds will serve as the main source of healthcare funding and 
will provide transparency and monetary control within the system.
    The National Health Project was signed by President Putin in 2005 
and was designed to significantly improve Russian healthcare. From 
2011-2013, $15.4 billion was allocated from both the federal budget and 
the Mandatory Healthcare Insurance Fund [to the National Health 
Project?]. The Program of Modernization in Healthcare 2011-2012, aimed 
at renovating and upgrading healthcare facilities, was financed at $11 
billion. The significant funding reflects the current need for new 
modern technologies for diagnostics and treatment. Russian patients are 
becoming more aware of modern medical technologies around the world and 
expect the same types of treatment in Russia.
    In addition to these programs that are currently being implemented, 
the Ministry of Health has recently developed a draft government 
program called ``Development of Healthcare in the Russian Federation.'' 
This document is currently under review for approval. It contains the 
principles of preventive

[[Page 77033]]

medicine, quality of provided healthcare services, education of medical 
personnel, and overall changes in the healthcare infrastructure.
    The Ministry of Industry and Trade is also currently developing a 
strategy for the development of the medical industry through 2020. With 
continued growth in this sector, World Trade Organization (WTO) 
accession, and government plans to modernize and invest in Russian 
healthcare through 2020, American companies should be poised to make 
significant contributions to the Russian healthcare market.

Medical Equipment

    The medical equipment sector is one of the fastest-growing sectors 
of the economy. There is a relatively stable macroeconomic situation in 
Russia with much unsatisfied deferred demand for medical equipment 
across the country. In addition, the Russian government is focused on 
this sector and has increased government financing for the purchase of 
medical equipment. For example, the Program of High-Tech Medical 
Assistance 2011-2013 was financed at $4 billion.
    In 2011, the market for medical equipment was estimated at $4.9 
billion. During the next nine years, experts expect yearly market 
growth to be 13.5%. The most promising market segments include 
diagnostics and visualization, cardiovascular, ophthalmology, 
orthopedics, laboratory diagnostics and urology equipment and 
technology. For example, the average annual increase from 2006-2011 in 
market share for diagnostics and visualization equipment was 18% and in 
medical IT 10%.
    Since commercialization of medical equipment manufactured in Russia 
remains low, the market for medical equipment is heavily dependent on 
imports. The average annual increase in the import market for medical 
equipment from 2006 to 2011 was approximately 23%. Medical equipment 
imports in 2006 were $14.2 billion, with steady growth to $41 billion 
in 2011.
    Membership in the WTO will also benefit foreign exports to Russia. 
After full implementation of the WTO accession and Permanent Normal 
Trade Relations, tariffs for medical equipment are estimated to range 
from 0% to 7%. Currently, tariffs range as high as 15% to 20%.

Dental Equipment

    The Russian dental market is also a sector that is expanding and 
showing good growth potential. In 2011, total world imports into Russia 
for dental equipment were approximately $500 million, reflecting the 
need for dental equipment for use in the large market for dental 
services in Russia, which was approximately $6 billion in 2011.
    The number of clinics, practicing dentists, technicians and patient 
visits are all on the rise. There are over 9,500 dental units operating 
in Moscow, with 3,000 state clinics and over 6,500 private clinics. 
There are 670 municipal dental clinics and 2900 dental departments 
within those clinics. The highest level of dental industry 
privatization is in the Moscow region.
    The number of practicing dentists in Russia is 68,000, of which 
35,000 are members of the Russian Dental Association. The number of 
patient visits is approximately 150 million a year. However, the ratio 
of dentists to patients in Russia is still only 45/100,000 people, 
which is below levels in the United States and most European countries. 
In the United States, the ratio of patients to dentists is 60/100,000.
    The dental market is one of the most organized markets in Russia. 
The largest associations are the Russian Dental Association, which has 
69 regional divisions and the Dental Industry (DI ROSI) which has 45 
member companies. These associations play an important role in the 
introduction of new technologies and practices, actively participate in 
trade events, and regularly publish in professional journals. As a 
result, they have a large impact on the industry. The two major dental 
universities are Moscow State Medical and Dental University and the 
Sechenov Medical Academy in Moscow.
    Domestic production of dental equipment is insufficient for the 
Russian market and very few new products are produced domestically. 
Local manufacturers such as Averon, VladMiVa, Raduga Rossii, Geosoft, 
Stomadent Omega, and Tselit produce a wide range of dental equipment. 
Since Russia's domestic dental production level meets only 20% of total 
demand, imports play a significant role in the market. The majority of 
dental equipment is supplied from the United States, Germany, France, 
Switzerland, Japan, and other countries.
    Many large U.S. and international companies have offices in Russia, 
including Densply, 3M, Nobel Biocare, Mileston, Midmarek, 3i, Sirona, 
Kavo, Colgate, Kodak-Eastman, Philips-Sonicare, Discuss Dental (now 
owned by Philips), Oral B, and Wrigley Adeck.
    There are about 500 distributors of dental equipment in Russia. The 
major distributors are located in Moscow and work in other regions 
through smaller local distributors or through regional representatives. 
Import customs clearances are executed more easily in larger cities 
like Moscow and St. Petersburg. There are strict product registration 
and certification procedures necessary for the release of dental 
equipment into the market. The registration and certification process 
can be complicated, time-consuming, and expensive. It may require a 
regular market presence by the manufacturer or an authorized 
representative with competent Russian language skills and knowledge of 
the local market to be able to complete the process.

Biotechnology

    In the last several years, Russia has been developing an innovative 
modern economy by focusing on information technologies and 
nanotechnologies. The biotechnologies area has large potential and is 
underdeveloped, but is evolving because of the need to extend life 
expectancies within the country. LargeU.S. multinational companies like 
Celgene, Amgen, and Genzyme are established in the market and are 
already working in the biotechnology field. Despite the fact that major 
companies from Europe and the U.S. have already entered the market, 
there is still room for small innovative companies in the biotechnology 
area. Good examples include two small U.S. biotechnology companies, 
Bind and Selecta, which have recently opened offices in Russia to start 
research and development, which is a priority of the Russian 
government.
    The Government Commission on High Technologies and Innovations 
signed a decision in April, 2011 to create a State Coordination Program 
for the Development of Biotechnology in the Russian Federation through 
2020. The Ministry of Economic Development is responsible for this 
State Coordination Program, which focuses on several areas including 
biopharmaceuticals and biomedicine.
    1. Biopharmaceuticals (essential medicines, including biogenerics, 
hormones, cytokines, therapeutic monoclonal antibodies, peptides, 
phytomedicines, new generation vaccines, antibiotics and 
bacteriophages)
    2. Biomedicine (molecular diagnostics, personalized medicine, 
engineered cell and tissue for therapeutic purposes, biocompatible 
materials)
    The Russian market for biopharmaceuticals in 2010 was estimated at 
$2.2 billion, of which $1.3 billion was dedicated to cytokines, 
genetically engineered hormones (including insulin), coagulants and 
therapeutic enzymes, monoclonal

[[Page 77034]]

antibodies ($350 million), and vaccines ($350 million). For example, 
the sales of antibodies and vaccines are expected to rise to $480 
million and $370 million respectively by the year 2015.
    The Russian biotechnology market is focused on the development and 
manufacturing of products for the diagnosis and treatment of human 
diseases and for the prevention of harmful effects of the environment 
on humans. The world market for biotechnology (used for molecular 
genetics diagnostic technologies) was $13.5 billion in 2010, and is 
expected to be $33.3 billion by 2015. The access to credible data for 
the Russian market is low because the segment has not been fully 
developed, but it is expected to mature in the near future.
    Biotechnology is a large part of the overall pharmaceutical sector. 
According to industry experts, Russia is currently one of the ten 
largest pharmaceutical markets in the world. In 2011, the 
pharmaceutical market volume amounted to $26 billion in end user 
prices, which is 12% higher than in 2010.
    An important recent trend was the planning and formation of 
``pharmaceutical clusters''. This was due in part to the completion of 
the ``Strategy of Development of the Pharmaceutical Industry- 2020'', 
developed by the Ministry of Industry and Trade which outlines some 
government priorities.
    The Russian pharmaceutical market is import driven with 76% of 
drugs taken in Russia produced abroad. The only domestic manufacturer 
in the top 20 leading players in the Russian pharmaceutical market is 
Pharmstandart.

Mission Goals

    The goal of the Healthcare Trade Mission to Russia is to promote 
the export of U.S. goods and services by: (1) Introducing U.S. 
companies to industry representatives and potential clients and 
partners; and (2) introducing U.S. companies to industry experts to 
learn about policy initiatives that will impact the Russian healthcare 
industry in general as well as the medical equipment, dental equipment 
and biotechnology sectors.

Mission Scenario

    In Moscow, trade mission members will participate in an Embassy 
briefing from industry experts and take part in one-on-one business 
appointments with private-sector organizations. In addition, they will 
enjoy a networking event with industry leaders and potential partners. 
In St. Petersburg, all of the delegates will have customized one-on-one 
business appointments and attend another networking reception.
    Matchmaking efforts will involve partners such as the Association 
of International Pharmaceutical Manufacturers (AIPM), Innovative 
Pharma, Association of International Manufacturers of Medical Devices 
(IMEDA), the American Chamber of Commerce in Russia, and the Russian 
Dental Association. U.S. participants will be counseled before, during, 
and after the mission by CS Russia staff actively involved in the 
healthcare trade mission.

                                               Proposed Time Table
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Monday, June 3, Day 1............................................  Moscow.
                                                                      Briefing by the U.S. Embassy and industry
                                                                       experts.
                                                                      Site Visits in afternoon.
Tuesday, June 4, Day 2...........................................  Moscow.
                                                                      One-on-one business appointments.
                                                                      Networking reception.
Wednesday, June 5, Day 3.........................................  Depart for St. Petersburg.
                                                                      Travel day and free evening in St.
                                                                       Petersburg.
Thursday, June 6, Day 4..........................................  St. Petersburg.
                                                                      One-on-one business appointments.
                                                                      Networking reception.
Friday, June 7, Day 5............................................  St. Petersburg.
                                                                      Additional meetings and follow-up
                                                                       appointments.
                                                                      Departure for the United States (Friday
                                                                       evening or Saturday, June 8).
----------------------------------------------------------------------------------------------------------------

Participation Requirements

    All parties interested in participating in the trade mission must 
be active in the healthcare sector and complete and submit an 
application package 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. A 
minimum of 10 and maximum of 13 companies will be selected to 
participate in the mission from the applicant pool. Applicants that are 
U.S. companies already doing business in Russia as well as those 
seeking to enter the Russian market for the first time may apply.

Fees and Expenses

    After a company has been selected to participate in the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The participation fee will be $5950 for large firms 
and $5350 for a small or medium-sized enterprise (SME) trade 
association, which will cover one representative.* \1\ The fee for an 
additional representative (SME/trade association or large company) is 
$750, which will cover one representative. The fee for an additional 
representative (SME or large company) is $750. Expenses for travel, 
lodging, meals, and incidentals will be the responsibility of each 
mission participant. Delegation members will be able to take advantage 
of U.S. Embassy rates for hotel rooms beginning Sunday, June 2 in 
Moscow and through Saturday, June 8 in St. Petersburg. Please note that 
the trade mission begins in Moscow and ends in St. Petersburg. Early 
arrival nights in Moscow, return transportation to Moscow from St. 
Petersburg, or the extension of stay in St. Petersburg will be the 
responsibility of the participants.
---------------------------------------------------------------------------

    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
---------------------------------------------------------------------------

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

[[Page 77035]]

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 51 percent U.S. content of the value of the finished product or 
service. In the case of a trade association, the applicant must certify 
that for each company to be represented by the association, the 
products and/or services the represented company seeks to export are 
either produced in the United States or, if not, marketed under the 
name of a U.S. firm and have at least fifty-one percent U.S. content.

Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of the company's (or in the case of a trade 
association, member companies') products or services to the market.
     Applicant's (or in the case of a trade association, member 
companies') potential for business in Russia and in the region, 
including likelihood of exports resulting from the mission.
     Consistency of the applicant's (or in the case of a trade 
association, member companies') goals and objectives with the stated 
scope of the mission.
    Diversity of company size, sector or subsector, and location may 
also be considered during the review process.
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

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 (http://www.ita.doc.gov/doctm/tmcal.html) 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 U.S. Department of Commerce will 
begin reviewing applications and making selection decisions on a 
rolling basis beginning on December 28, 2012 until the maximum of 20 
participants is selected. Applications received after March 15, 2013 
will be considered only if space and scheduling constraints permit.

Contacts

Jessica Arnold, U.S. Commercial Service, Washington, DC, Tel: (202) 
482-2026, Jessica.Arnold@trade.gov.
Timothy Cannon, U.S. Commercial Service, U.S. Embassy, Moscow, Tel: +7 
495 528 55 32, Timothy.Cannon@trade.gov.
Yuliya Vinogradova, U.S. Commercial Service, U.S. Embassy, Moscow, Tel: 
+7 495 728 55 86, Yuliya.Vinogradova@trade.gov.

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-31425 Filed 12-28-12; 8:45 am]
BILLING CODE 3510-FP-P