August 2013

GUIDELINES TO UK TRADE & INVESTMENT TRADE SHOW ACCESS PROGRAMME (TAP)

GRANT SUPPORTED INTERNATIONAL TRADE SHOWS FROM AUGUST 2013 ONWARDS

(FASHION & ACCESSORIES)

CHANGES HAVE BEEN MADE TO THE GRANT SCHEME AGAIN – SO PLEASE READ THIS BEFORE APPLYING FOR A GRANT.

The UK Trade & Investment rules on the TAP (Tradeshow Access Programme) grant eligibility can seem complicated.

We have summarised and condensed them into two pages. If anything is still unclear please don’t hesitate to call us on 020 7843 9460.

THE TAP SCHEME FROM AUGUST 2013 ONWARDS

In April 2009 the slate was wiped clean and eligible companies can now receive a lifetime global allocation of 6 grants in the main markets (EUROPE AND THE USA). This no longer has to be over at least two markets.

There is now an entitlement to a further 6 grants, but these must be in “emerging and high growth markets” and are also counted from April 2009. On the UKFT programme the following shows will now be grant supported on this basis: Chic in China, The Hub in Hong Kong and CPM Moscow in Russia.

To be eligible for a grant, companies must:

a)be a UK based business (but you don’t have to be a limited company)

b)be a small or medium size enterprise (SME) as defined below

c)be a new exporter as defined below OR have exported for no more than 10 years *

d)not have received grants of any kind totaling more than €200,000 over any rolling 3 year period

e)not receive any other contributions from public funds towards the costs of exhibiting

f)not have been fully committed to showing prior to seeking the UKTI grant

g)demonstrate, if required, that they are selling products originating substantially in the UK or that they are adding significant value to a product of non-UK origin or are enhancing their competitiveness and providing tangible economic benefit to the UK from this trade development activity.

h)must not have received (since April 09), been offered, or have a pending application for more than 5 grants prior to the grant currently being applied for.

i)must take up any non-chargeable offers of assistance made by the Trade Association or the UKTI regional network that are intended to be complementary to the offer of trade show support.

j)own the brand they are selling or prove that they have permission to export the brand

* If you have been exporting for more than 10 years and have total exports of above 25% of your turnover, you will still qualify for a grant if you have not shown at the previous edition of the event. For example, if this applies to you and you would like to apply for a grant to show at PittiUomo in June 2013, you may do so if you did not show at the January 2013 edition.

Special note for start ups: Whilst there are no hard and fast rules in the TAP scheme against supporting brand new businesses (“start ups”), in practice some of the UKTI regions are reluctant to agree to grants for brand new companies because they have no track record. Some regions may take prior commercial experience in the industry into account but other

regions may not. UKFT is working with UKTI to clarify and resolve this issue. In the meantime, if you who have a brand new business please contact us before filling in your

grant application forms as you will need to put together a strong case for support, including a business plan. We will help to support this wherever possible.

DEFINITIONS

An outline of the definitions follows. Please call us if you have any questions. Full UKTI Terms & Conditions are also available on request.

  • An SME (Small or Medium Sized Enterprise):-

a) Has fewer than 250 employees

b) Has an annual turnover not exceeding 50m Euros or an annual balance sheet total not exceeding 43m Euros

UKTI reserves the right to review the eligibility of businesses that are distinct and independently operated, but are part of or owned by an organisation itself larger than an SME.

  • NEW EXPORTERS are defined as having to less than 10% of turnover resulting from proactive exports during the last 12 months (sales to new overseas customers that have been actively identified by the business) and no more than 25% of turnover resulting from a combination of proactive and reactive exports. Reactive exports would normally result from unplanned approaches from potential overseas customers and from UK-based third parties, or from overseas responses to UK-focused web sites.

WHAT IS THE GRANT?

  • For shows from 1st August 2013: the grant rate will go up to £1,500 for shows in Europe and £2,000 for shows in the USA.
  • For shows in so-called “emerging or high growth markets” the rate is £2,500. For companies exhibiting at these events for the first time, it is £3,000. As far as the UKFT

programme is concerned, this refers to the following shows: Chic in China, The Hub in Hong Kong and CPM Moscow in Russia.

Companies must provide evidence of eligible expenditure amounting to at least the amount of the grant after the show. In the event that the stand payment alone is insufficient to qualify for a grant, related expenses, such as transportation of samples and stand and display items, furniture, stand design, display aids/graphics, promotional material etc. may also be taken into consideration (but not accommodation or travel). Please ask us for clarification on this. The matched funding requirement is no longer in place.

HOW DOES THE SYSTEM WORK?

  • You must apply for a grant as soon as you know you want to show, (ideally around 3 months beforehand). Do not wait until you have received confirmation of space from the relevant show organisers. There is a limited number of grants for each event so you are urged to apply as early as possible. The deadline for applicants new to the scheme is 8 weeks before the start of the show (5 weeks before the show if you have previously been approved for a TAP grant). In most cases if you leave it until then there will be no grants left! If you do not get space, we can withdraw your grant application, but last minute applications are not possible.
  • You complete the UKFT application form, together with the UK Trade & Investment TAP grant application form, and send them both back to UKFT with your payment (see below). We forward the latter to a UKTI International Trade Team Advisor (ITA) in your region. The ITA will contact you to discuss your eligibility and will then give us a “no” or a provisional “yes”. We then send your form to the UKTI Head Office in Glasgow who will double check your eligibility and let us have an answer.
  • At each event, UKFT will be conducting marketing activities to promote the British exhibitors for which a charge per company of £250 + VAT will be made. This must be sent together with the application. If UK Trade & Investment deems you are not eligible and/or if you do not get space at the show (and let us know at least 6 weeks before the event), this fee will be returned to you. The marketing fee is agreed with UK Trade & Investment in advance. It enables us to promote the British exhibitors at overseas shows.
  • Government support takes the form of a reimbursement so you must pay for your stand in advance. After the exhibition you must provide us with proof of payment (for at least amount of the grant) within one month of the exhibition and you will be required to complete a brief questionnaire on-line, also within one month after the close of the exhibition. The reimbursement should come through, at the latest, around 3 months after the exhibition has taken place; earlier if all participants provide us with proof of payment promptly.

Important note: When sending applications to show organisers, please be sure to read all their contracts and terms & conditions. There have been a number of cases where UK companies have sent completed application forms to organisers without payment, not realising that they had signed a potentially legally binding contract. If you sign a contract to show and you then pull out, you will be liable not only for the deposit, but for the full cost, whether or not you show and, of course, in that circumstance, you would not be able to claim a UKTI grant.