The Acom designation was created by Acom and was first used in 1980. In order to qualify for the designation, a company must show that they have developed an export process or method for goods, which has been specifically designed and developed to export to the United States. It is also important to note that it does not require a company to be exporting goods specifically to the United States. A company may still export goods that are primarily to other countries and may still have export records available to the USTO.
Because of the Acom designation, companies can become eligible for export benefits if they meet the specific requirements. These include having a facility or manufacturing plant that is capable of creating the goods being exported, and have all of the requisite equipment and records necessary to export those goods. A company will also be required to show that they have a specific export plan for each product that they are exporting, as well as providing the USTO with a detailed explanation of what their plan includes.
Acom Designations is one of the more commonly applied trade aid programs for exports of goods to other countries, although they are not one of the largest exporters. The Acom Designation is most commonly used to aid in the consideration of goods, manufactured in the United States, that are exported to third countries, especially for export to developing countries.
The Acom Designation program is very effective in helping to expedite the processing of export documents and in helping to provide information to the U.S. Trade Representative, but the USTO is not the only agency that can use the Acom Designation in the process of approving an export. Companies can also use the Acom Designation to submit their export applications to the United Nations and can also provide USTR assistance if they believe that a U.S. export is in violation of U.N. laws. There are also export benefits available to exporters that are in the process of obtaining a Trade Facilitation Agreement, which means that the Acom Designation will become available in that country’s export control regulations.
The Acom Designation Program was not created to provide a means of subsidizing exports to the United States. Rather, it was created to ensure that the U.S. Exports to other countries can be considered by those exporting, by allowing the USTO to access the pertinent information regarding the manufacturing processes and procedures, facilities, and records of companies in the United States.
An important aspect of the Acom Designation program is that it allows exporters to show that the goods being exported to meet the requirements of the U.S. Export Administration (USE) standards, so that they can be assured that their products will be received by their intended recipient. Because the designation is administered by an independent agency, the standards of the Acom Designation cannot be changed without the express approval of the Secretary of Commerce, and the use of a U.S. export agent or middleman is required.
While the Acom designation is not designed to directly provide monetary benefits to American exporters, it does make it easier for exporters to export their products. Since many exporters will seek the designation due to the cost of employing a U.S. exporter in the process, the designation may be used in conjunction with other exporters to obtain a higher percentage of the U.S. tax credit.