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AAIA members looking for tools to increase export sales should consider participation in the AAIA Export Trade Certificate (ETC) program. Congress created the ETC program in 1982 to provide the means for exporters to gain a competitive edge in global sales. It does this by providing participating firms what is in effect an "insurance policy" geared to encourage joint export activities that achieve economies of scale and risk diversification.
The Automotive Service Industry Association had obtained an ETC for its members' benefit in the early 1990s, and in the consolidation with the Automotive Parts & Accessories Association (APAA), AAIA has assumed the role of certificate holder.
While some members are already involved in the program, there are many more that could be taking advantage of the ETC antitrust shield. Under the certificate, companies are immune from federal and state antitrust actions, both criminal and civil. And, in private antitrust suits, companies under the certificate gain many advantages, especially a reduction in maximum liability from treble to single damages, a presumption of legality, and the chance for prevailing defendants to recoup attorneys' fees.
Firms covered by a certificate can undertake joint exporting activities, such as offering a full line of complementary aftermarket products, setting prices, allocating customers or markets, sharing product information, operating joint facilities overseas, and sharing costs in areas like market research, insurance, transportation and after-sales service.
Unlike most government programs, there is almost no extra paperwork required of participating firms. AAIA, as the certificate holder, files an annual report with data on a few limited items, such as total export sales and ETC-related export sales, using aggregate numbers gathered from a quick one-page AAIA survey of member participants.
For more information or to participate, contact Lee Kadrich at 301-654-6664, or by e-mail.
© AAIA 2000. Aftermarket Insider, vol. 7.
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