The Cutting Edge™ - February 2004

International Business Development

Since February 1989, the US Department of Commerce has granted anti-trust protection for members of the WMMA® that elect to be covered under the WMMA® Export Trade Certificate (ETC).

Each year, the WMMA® goes through an amendment procedure that allows those members that are not currently ETC members to join. (Current members must complete a separate form being mailed to them directly). There is no cost to sign up. Interested members must complete the form found on the WMMA® website (click here), required by the US Department of Commerce, and return it to Harold Zassenhaus, WMMA® Export Director, no later than March 1, 2004.

Background The Export Trade Certificate is issued under the Export Trading Company Act of 1981. Under a provision of the ETC Act, which is implemented by the US Department of Commerce, US exporters can obtain anti trust immunity from federal and state criminal and civil prosecution for export activities. The Act also can provide reduced anti trust liability in private actions against exporters.

Practical Application The WMMA® is the sponsor of the WMMA® Certificate. Under the protective umbrella of the ETC, firms that are listed under the certificate can join together, without the threat of most anti trust regulations, to reduce export related costs and/or increase effectiveness in export operations. The following are examples of activities that can be initiated with a competitor company listed under the WMMA® Certificate:

Joint Bidding and Selling Arrangements Any number of ETC members may join together even if they are domestic competitors and submit a single bid on a particular export project or tender. They can use the same overseas representative, agree to sell separate products as a unit, prepare joint catalogs, and allocate sales that result from joint bidding or selling arrangements.

Pricing Policies Two or more members may agree to establish minimum uniform prices for particular products. They may engage in joint negotiations on prices and terms of sale with foreign buyers.

Service and Promotional Activities Certificate members may jointly engage in a variety of activities that will promote or support their export sales. These can include establishing joint warranty service and training centers, conducting joint trade shows or missions and joint advertising.

If you would like to add your name, please click here, complete the form and return to Harold Zassenhaus. All information is held in strict confidence.

Click here for last month’s Export article, Tips on Translation.

For more information on WMMA®’s international business development endeavors, click here.