The Aerospace Industries Association praised Illinois Congressmen Don Manzullo on Friday for his efforts in clarifying rules that made it hard for U.S. manufacturers of civil aircraft, parts and components to sell overseas.

Since the Export Administration Act of 1979 expired in 2001, the State Department – which has jurisdiction over exports of military items – lumped many commercial aircraft parts in with military hardware. The latter requires much more stringent review and a special export license. As a result, American manufacturers incurred significant costs and delays trying to interpret federal regulations, putting them at a competitive disadvantage with foreign companies.

Particularly vulnerable were parts designed for commercial applications that the government said could be altered for military uses, Manzullo spokesman Rich Carter said.

“The problem is the Department of State has been extremely reluctant to give up authority, and we’ve gotten into a tug-of-war between the Department of State and the Department of Commerce,” Carter said. “[Part of the Act] was being interpreted wrongly by the administration. Don met with the State and Commerce departments and explained that by doing this, they were slowing down our exports; and our aerospace exports really are what’s driving our economy right now.”

Section 17(c) of the Act states that any product that is standard equipment – certified by the Federal Aviation Administration in civil aircraft and that is an integral part of those aircraft – and is exported to friendly nations, still is subject to certain export controls. While this does not affect any McHenry County company directly, Carter said, it does affect aviation part suppliers such as Guardian Electric in Woodstock.

“Two or three years ago, it really started being more and more of a problem as you had new cases of how the State Department chose to interpret things,” said Remy Nathan, assistant vice president of international affairs for Aerospace Industries Association in Arlington, Va. “You started having companies pass down the liability risk; please assure me that whatever you send me is Commerce controlled and not State Department controlled. … If you are a small manufacturer, how do you wait until someone tells you?”

Classification of a product as a military item results in significant licensing and compliance requirements that affected its use and the operation of any aircraft in which it is installed, Carter said. Nathan added that failure to get the necessary clearance could result in fines, even jail.

“For the longest time, this was the kind of issue that people thought, ‘We’re never going to get anywhere,’ ” Nathan said. “In so many ways, the administration defers to Congress.”

Manzullo, R-Egan, co-chaired the Export Controls Working Group with Reps. Joe Crowley, D-N.Y., and Earl Blumenauer, D-Ore.

-Drew

High quality youtube video here

Stadard quality youtube video here

The problem is the Chinese government is illegally subsidizing Chinese manufactures to dump OTR tires (sell at below market prices), creating a uncompetitive trade situation that costs American jobs. Manzullo commented, ” I’m confident that the workers at Freeport’s Titan Tire plant can produce and sell the most affordable and highest quality tire if given the chance to compete fairly, but right now they are not competing on a level playing field.”

Following the testimony of Manzullo and other law-makers, the Commerce Department raised tariffs on the illegally subsidezed tires 210 percent. Manzullo expressed thanks:

Nearly 200 workers are on-call ready to come back to work in Freeport to meet the growing domestic demand for these specialized tires. China illegally subsidizes its industries and manipulates its currency to unfairly give an advantage to its manufacturers over American workers, and those Chinese companies must be punished in this case. I thank the Commerce Department for its final determination and urge the ITC to confirm their initial findings so we can slap tariffs on these offending Chinese companies that are threatening American jobs.

To read more, visit the Right of the Star blog here.

Additionally, last year Congressman Manzullo passionately defended American trade and jobs on the house floor. see video

Manzullo understands the big picture, and that’s what counts when it comes to American jobs.

sources:
U.S. tire manufacturers upset over Chinese imports, Chicago Tribune, 7/9/08
The Hill’s Congress Blog, 7/9/08