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Builder 8567 Hi Res Desktop Printing[1] .pdf


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Trade Agreements Compliance Program

ITA Helps Small Exporter Deliver on Big
Sale
Introduction
The Department of Commerce’s International Trade Administration (ITA)
recently helped Klinge Corporation, a small company based in York,
Pennsylvania, overcome inconsistent certification requirements that threatened
to exclude it from the Chinese market.

Trade Agreement: WTO TBT
Trade Barrier: Standards
Industry: Machinery
Company: Klinge Corp., PA

Why it Matters
$8.5 million in export sales was in jeopardy because China imposed overly restrictive certification requirements on a
small company. Had China refused to certify Klinge’s refrigerated transportation containers and the paint to be applied
to them before they were re-exported to Australia, Klinge could have lost the $8.5 million contract and potential
future sales.

The Problem
In the midst of fulfilling an $8.5 million contract, Klinge Corp. ran into problems with Chinese customs officials, who
improperly impounded a key paint component, claiming it failed to meet Chinese certification requirements. In
addition, Chinese officials determined that Klinge’s refrigerator and generator units, who had previously been exempt
from China’s Compulsory Certification (CCC) requirements, were suddenly subject to the CCC requirements.

The Solution
After a series of unproductive meetings with Chinese freight forwarders and customs officers, Klinge contacted ITA.
In response, ITA invited representatives of Klinge to join other U.S. industry representatives in an ITA-sponsored
roundtable in Ningbo, China, where the China Certification and Accreditation Administration (CNCA) committed itself
to intervene on behalf of the company. Concurrently, the ITA team raised the issue with Chinese officials, emphasizing
China’s World Trade Organization (WTO) obligations. In a matter of months after the initial contact with ITA, Klinge
obtained the necessary certification for the paint and received certification exemptions for the refrigerators and
generators. China’s fulfilling its obligation under the WTO will also benefit other U.S. exporters to China who may face
similar certification-related obstacles to trade.

Have You Encountered a Foreign Government-Imposed Trade Barrier?
Contact us today! Trade.Gov/TANC

“The support provided by the Department of Commerce was critical in overcoming
trade barriers with China.”
Henrik Klinge, CEO, Klinge Corp.
1207-00-02-08


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