Rules Relaxed for U.S. Pavilion Exhibitors

For years, the U.S. Department of Commerce has helped U.S. manufacturers take part in foreign trade shows by offsetting costs for the booths, translators and business services that were in a U.S. Pavilion.

But to participate in a pavilion, apparel companies and other businesses had to produce goods that had 51 percent of their content coming from the United States.That proved challenging for many apparel manufacturers who did all their design and administrative work in the United States but manufactured all or part of their goods outside of America.

That rule changed in mid-April. Now, if the company is incorporated in the United States, it can participate in a U.S. Pavilion even if its goods are made in Mexico, China or elsewhere.

Furthermore, U.S. companies that are owned by foreign businesses can also take advantage of the U.S. Commercial Services’ export assistance programs, as can companies that manufacture products in the United States using primarily imported parts. The USCS’ program does not extend to foreign companies with U.S. offices or simply a U.S. distributor. Likewise, the program does not apply to foreign-made goods made from U.S. components.

The California Fashion Association and its executive director, Ilse Metchek, were among the organizations and individuals that helped bring about the USCS rule change.“This is very exciting. I have been fighting for this since 1997,” Metchek said. “It certainly allows a California manufacturer to show their entire line and is no longer confined to those items that had 51 percent U.S. input.”

She also noted that it allows apparel manufacturers to use the Commerce Department’s Gold Key program, which helps gather information about doing business overseas and helps locate distributors in foreign countries.

From June 28 to July 1, the Commerce Department will organize a U.S. Pavilion at the Satilde;o Paulo Surf & Beach Show. The cost for U.S. manufacturers and businesses to have a booth, a translator and business services is $3,400, a reduction from the normal price.

California companies interested in participating can call Bobby Hines at the downtown Los Angeles U.S. Export Assistance Center at (213) 894-4231.

—Deborah Belgum