ITA Successfully Assists Chart Industries Inc. Enter the Japanese Market
February 28, 2013
(ITA)
The Department of Commerce’s International Trade Administration (ITA) helped the
Ball Ground, Georgia facility of Chart Industries Inc. (Chart), overcome a
testing standard that would have prevented it from entering the Japanese
market.
Why it Matters
Without ITA's assistance, Chart would have faced unnecessary Japanese
trade-restrictive testing procedures for its fueling system designed for
liquefied natural gas (LNG). Chart’s product would have had to be redesigned in
order to be used in Japan. This would have made market entry impossible for
Chart since it would not have been to compete in the country.
The Problem
Chart manufactures LNG vehicle fueling systems. A Japanese standard published by
the Japan Gas Association (JGA) included a vibration performance standard which
Chart believed to be more severe than typical U.S. standards for vibration
performance requirements. Chart attempted testing under the JGA standard for
their LNG products and concluded that compliance would require a total redesign
of its products. Such a change would have compromised thermal performance to the
point that the advantages of LNG over compressed natural gas would have been
eliminated. Thus, the JGA standard would have effectively eliminated LNG vehicle
fuel systems from competing in the Japanese market. The WTO Agreement on
Technical Barriers to Trade requires that conformity assessment procedures not
create unnecessary obstacles to trade.
The Solution
ITA specialists proposed a solution during meetings with representatives of
Japan’s Ministry of Economy, Trade, and Industry (METI), suggesting that the
High Pressure Gas Safety Institute of Japan review Chart's U.S. testing records
and product safety history to satisfy certification requirements. METI
encouraged the Institute to adopt this solution, which it supported and
subsequently certified Chart products. As a result, Chart will no longer have to
go through the Japanese vibration test and its product will now be available in
Japan without modifications.
Working closely with U.S. companies, ITA creates, expands, and defends market
access for U.S. goods and services overseas through the Trade Agreements
Compliance Program. “We promote policy that develops a more favorable business
climate for U.S. companies in global markets; we employ commercial diplomacy to
resolve trade barriers; and we leverage our bilateral and multilateral trade
agreements to ensure our trading partners live up to their commitments so that
our businesses can compete on a level playing-field.” - Assistant Secretary for
Market Access and Compliance, Michael C. Camuñez.
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