2011 Budget Justification--pg83

ITC 2011 Budget Justification.pdf

2010 337 Exclusion Order Review

2011 Budget Justification--pg83

OMB: 3117-0220

Document [pdf]

Download: pdf | pdf

Table of Contents
Alphabetical Listing of Abbreviations.............................................................................................................. iv
Fiscal Year 2011 Budget Justification for the U.S. International Trade Commission............................1

General Statement................................................................................................................................................................ 1
Mission................................................................................................................................................................................... 1
Activities in Brief................................................................................................................................................................... 2

Fiscal Year 2011 Budget Highlights....................................................................................................................3

The Elevated Caseload for Intellectual Property-Based Import Investigations Required the Acquisition of an
Additional Courtroom . ................................................................................................................................................... 5
The Commission is Addressing Challenges to its Internal Operations.............................................................................. 7

Management Initiatives for FY 2010–2011.........................................................................................................9

Financial Management Issues Are Being Addressed.......................................................................................................... 9
Mandatory Continuity of Operations Plans Require Significant Resource Allocation.................................................... 10
Open Government Initiatives Will Improve Public Access and Mission Accomplishment............................................. 11
Strategic Human Capital Planning to Assure Continued High Performance................................................................. 12

Fiscal Year 2011 Requested Appropriation Language for the
U.S. International Trade Commission.........................................................................................................14
Strategic Operation No. 1: Import Injury Investigations.............................................................................15

Antidumping and Countervailing Duty Investigations .................................................................................................. 16
Sunset Reviews.................................................................................................................................................................... 17
Other Import Injury Investigations.................................................................................................................................... 19
Litigation.............................................................................................................................................................................. 20
Resource Requirements and Workload for Import Injury Investigations........................................................................ 21
Strategic Operation No. 1: Import Injury Investigations Resource Requirements, Fiscal Years 2009, 2010, 2011...... 22
Strategic Operation No. 1: Import Injury Investigations Caseload.................................................................................. 23

Strategic Operation No. 2: Intellectual Property-Based Import Investigations....................................24

Resource Requirements and Workload for Intellectual Property-Based Import Investigations.................................... 26
Strategic Operation No. 2: Intellectual Property-Based Import Investigations Resource Requirements,
Fiscal Years 2009, 2010, 2011....................................................................................................................................... 28
Strategic Operation No. 2: Intellectual Property-Based Import Investigations Caseload.............................................. 29

Strategic Operation No. 3: Industry and Economic Analysis......................................................................30

Statutory Investigations..................................................................................................................................................... 30
Other Industry and Economic Analysis Activities............................................................................................................ 35
Workload Expectations in FY 2010 and 2011.................................................................................................................... 37
Resource Requirements and Workload for Industry and Economic Analysis.................................................................. 38
Strategic Operation No. 3: Industry and Economic Analysis Resource Requirements,
Fiscal Years 2009, 2010, 2011....................................................................................................................................... 39
Strategic Operation No. 3: Industry and Economic Analysis Investigations Caseload................................................... 40

Strategic Operation No. 4: Tariff and Trade Information Services...........................................................41

Maintenance of the Harmonized Tariff Schedule of the United States........................................................................... 41
Legislative Reports.............................................................................................................................................................. 43
Interactive Tariff and Trade DataWeb ............................................................................................................................. 43
International Trade Data System...................................................................................................................................... 45
Resource Requirements for Tariff and Trade Information Services................................................................................. 45
Strategic Operation No. 4: Tariff and Trade Information Services Resource Requirements,
Fiscal Years 2009, 2010, 2011....................................................................................................................................... 46

Strategic Operation 5: Trade Policy Support.................................................................................................47

Resource Requirements for Trade Policy Support............................................................................................................. 49
Strategic Operation No. 5: Trade Policy Support Resource Requirements, Fiscal Years 2009, 2010, 2011.................. 50

Information Technology .....................................................................................................................................51

Major Ongoing Information Technology Initiatives.......................................................................................................... 52

Indirect Costs.........................................................................................................................................................56

Office of the Inspector General .........................................................................................................................58
Budget Data

Dollar Cost: Comparison by Object Classification, Fiscal Years 2009, 2010, 2011......................................................... 59
Budget Formulation by Object Classification, Fiscal Years 2009, 2010, 2011................................................................. 60

Analysis of Change

Analysis of Change by Object Classification, Fiscal Years 2009, 2010, 2011.................................................................. 61
Summary of Increases/Decreases Presented in Analysis of Change (Fiscal Years 2010 and 2011)............................... 62

Operation Costs

Dollar Cost: Comparison by Strategic Operation, Fiscal Years 2009, 2010, 2011........................................................... 64
Workyears: Comparison by Strategic Operation, Fiscal Years 2009, 2010, 2011............................................................ 65
Budget Summary by Strategic Operation, Fiscal Years 2009, 2010, 2011...................................................................... 66
Workyears by Activity and Office, Fiscal Year 2009......................................................................................................... 67

Human Resources Data

Fiscal Year 2009 U.S. International Trade Commission Organization........................................................................... 68
Commission Approved Staffing Plan, Fiscal Years 2009, 2010, 2011.............................................................................. 69
Total Labor Cost/Workyears by Office, Fiscal Year 2009.................................................................................................. 70

United States International Trade Commission
Fiscal Year 2010 and 2011 Performance Plans..........................................................................................71

iii

Alphabetical Listing of Abbreviations
AD

Antidumping

HTSA

Harmonized Tariff Schedule of the
United States Annotated

ALJs

Administrative Law Judges

CIT

U.S. Court of International Trade

Information Technology

Commerce

Department of Commerce

ITDS

International Trade Data System

Commission

U.S. International Trade Commission

JICE

Journal of International Commerce
and Economics

COOP

Continuity of Operations

Customs

U.S. Customs and Border Protection

MTBs

Miscellaneous Tariff Bills

CVD

Countervailing Duty

NAFTA

North American Free Trade Agreement

DataWeb

Interactive Tariff and Trade DataWeb

OCIO

Office of the Chief Information Officer

EDIS

Electronic Document Information
System

OEEO

Office of Equal Employment
Opportunity

Federal
Circuit

U.S. Court of Appeals for the
Federal Circuit

OGC

Office of the General Counsel

OIG

Office of the Inspector General

FISMA

Federal Information Security
Management Act

OMB

Office of Management and Budget

OPM

Office of Personnel Management

FTAs

Free Trade Agreements

OUII

Office of Unfair Import Investigations

Fiscal Year

SHCP

Strategic Human Capital Plan

GATT

General Agreement on Tariffs and
Trade

The Byrd
Continued Dumping and Subsidy
Amendment Offset Act

GSP

Generalized System of Preferences

USTR

United States Trade Representative

HTS

Harmonized Tariff Schedule of the
United States

WTO

World Trade Organization

Fiscal Year 2011 Budget Justification for the
U.S. International Trade Commission
General Statement
The U. S. International Trade Commission (Commission) is an independent, quasi-judicial Federal
agency with broad investigative responsibilities on matters of trade. The Commission investigates
the effects of dumped and subsidized imports on domestic industries and conducts global safeguard
investigations. The Commission also adjudicates cases involving imported goods that are alleged to
infringe intellectual property rights. Through such proceedings, the Commission facilitates a rulesbased international trading system. The Commission also serves as a Federal resource where trade
data and other trade policy related information are gathered and analyzed. The information and
analysis are provided to the President, the Office of the U. S. Trade Representative (USTR), and the
Congress to facilitate the development of sound and informed U.S. trade policy. The Commission
makes most of its information and analysis available to the public to promote understanding of
international trade issues.

Mission
The mission of the Commission is to: 1) administer U.S. trade remedy laws within its mandate in
a fair and objective manner, 2) provide the President, USTR, and the Congress with independent,
quality analysis, information, and support on matters relating to tariffs and international trade
and competitiveness, and 3) maintain the Harmonized Tariff Schedule of the United States (HTS).
In so doing, the Commission serves the public by implementing U.S. law and contributing to the
development of sound and informed U.S. trade policy.

Activities in Brief
As the role of international trade in the U.S. economy has expanded, the work of the Commission has
had a broader impact on many aspects of the U.S. economy. With this trend in mind, the Commission
recognizes the importance of striving for excellence in all aspects of its mission, particularly objectivity,
thoroughness, clarity of analysis, and timeliness in the performance of its investigative duties. This
effort allows the Commission to meet more effectively the needs of policymakers in both the legislative
and executive branches, parties to Commission proceedings, and the general public.
The Commission has five major strategic Operations that serve its customers: 1) Import Injury
Investigations, 2) Intellectual Property-Based Import Investigations, 3) Industry and Economic
Analysis, 4) Tariff and Trade Information Services, and 5) Trade Policy Support. Detailed goals for
each strategic Operation are presented in the Fiscal Year 2010 and 2011 Performance Plans (see
attached).
Import injury investigations and intellectual property-based import investigations are distinct
investigative regimes with specific and detailed procedures provided in authorizing legislation.
Industry and economic analysis, tariff and trade information services, and trade policy support are
based upon general authorizing legislation with broad discretion delegated to the Commission. The
Commission conducts import injury investigations and industry and economic analysis by assigning
an interdisciplinary team to each investigation, thereby combining the skills of the Commission’s
investigators, international trade analysts, economists, auditors, lawyers, and statisticians. The
knowledge, skills, and abilities developed and maintained in the analytical and data strategic
Operations (3, 4, and 5) and those developed and maintained in the primarily investigative strategic
Operations (1 and 2) reinforce one another. Commission personnel frequently contribute to activities
in more than one operation.

Fiscal Year 2011 Budget Highlights
For fiscal year (FY) 2011, the Commission requests $87.0 million to support its authorized strategic
Operations. The FY 2011 request represents a 5.2 percent increase over the FY 2010 appropriation
request of $82.7 million, and a 6.3 percent increase over the FY 2010 final appropriation of $81.9
million. The increase is primarily due to the acquisition of additional space to meet workload demands
and implementation of legislative requirements for a Continuity of Operations (COOP) Plan, as well as
required increases in salaries and benefits.
The Commission’s FY 2011 appropriation request consists of salaries (52.6 percent), benefits (13.7
percent), rent (12.4 percent), various support services (12.6 percent), and other (8.8 percent). (See
Dollar Cost: Comparison by Object Classification, p. 59.)
The Commission projects that salaries of permanent personnel will increase by 5.5 percent, or $2.3
million over the FY 2010 Expenditure Plan based on: 1) a projected locality-adjusted 3 percent Federal
pay raise for FY 2011, 2) normal promotions and within grade increases, and 3) ongoing recruitment
efforts to fill vacancies in key areas.
The Commission has made significant progress in filling key positions in response to an increase in
its intellectual property caseload, and in reducing the targeted size of certain offices. It has reduced
its vacancy rate from an unsustainable FY 2006–2008 average of about 14 percent to less than 10
percent by the end of FY 2009. At the same time, it has reduced the number of positions in certain
offices after a thorough review of its Strategic Human Capital Plan (SHCP).
Assuming it obtains its requested FY 2011 appropriation, the Commission anticipates it can reduce
its vacancy rate to 5 percent, which reflects normal turnover. The Commission will achieve the
reduction by filling critical positions and continuing to eliminate unneeded positions. Recruitment
and training of new staff is particularly important to succession planning efforts since over one third
of the Commission’s permanent personnel is within five years of retirement eligibility.

The Commission projects benefits costs in FY 2011 to increase by 6.7 percent, or $746,000, due to
the Federal pay raise, increases in health care costs, higher staffing levels, and a continuing shift from
the Civil Service Retirement System to the more expensive (to the Commission) Federal Employees
Retirement System.
The Commission has succeeded in procuring new space on the second floor of its building to support
the expanding intellectual property caseload. The Commission’s rent obligation for FY 2010 will be
lower than projected by about $825,000 because annual lease costs were less than anticipated and
the Commission will not acquire the additional space until at least midyear FY 2010, rather than the
beginning of FY 2010.
The reallocation of the $825,000 is necessary to address pressing financial management needs identified
by the FY 2009 independent financial statement audit. Administrative services for FY 2010 have
increased significantly over last year’s projections to support financial management review, internal
controls development, and human capital planning for the Office of Administration. Additionally,
some of these funds have been redistributed to Office of the Chief Information Officer (OCIO) services
and equipment cost centers to facilitate the implementation of long-delayed but critical hardware,
software, and security upgrades. The Commission expects to see residual costs from these initiatives
into FY 2011.
Rent is projected to increase by 6.9 percent, or $700,000, in FY 2011 to fund a full year’s rent for
the second floor. Renovations of the second floor, including the development and build-out of the
additional courtroom, will be funded in FY 2010. However, renovation costs will remain elevated in
FY 2011 as the Commission addresses overcrowding throughout its building.
The Commission’s costs are predominantly recurring and non-discretionary. Thus, inadequate
funding would force reductions that could threaten the Commission’s ability to fully and effectively
fulfill its mission at a time when the Commission’s workload is expected to increase.

The Elevated Caseload for Intellectual Property-Based Import Investigations Required the
Acquisition of an Additional Courtroom
The intellectual property-based import investigations caseload has more than tripled since FY 2000.
The caseload reached a historic high in FY 2008 and has remained at an elevated level since that time.
This elevated caseload is attributable, in substantial part, to greater appreciation among intellectual
property owners and their counsel of the level of expertise that the Commission possesses in the area
of complex intellectual property litigation. The Commission’s commitment to prompt resolution of
patent cases, usually completing the entire administrative process within 18 months of the filing of the
complaint, makes these proceedings very attractive to patent holders in areas of rapid technological
change. The Commission can also provide meritorious complainants with injunctive relief that is
increasingly difficult to obtain in other fora, including the unique remedy of excluding articles from
entry into the United States.

Operation 2: Intellectual Property-Based Import Investigations: Caseload and Resource Allocation,
Fiscal Years 2000–2011
60
50
40
30
20
10

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

Average Active Cases Per Month

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

Percentage of Total Budget

FY 2011

The rapid increase in the caseload, along with difficulties in hiring and retaining qualified administrative
law judges (ALJs), put a serious strain on the Commission in recent years. Thanks to the support
of the Congress, the Commission was able to hire additional ALJs to handle the increased caseload.
The Commission remains concerned about potential ALJ retirements, a declining applicant pool,
and difficulties in obtaining highly qualified candidates for these specialized ALJ positions under the
current recruitment and hiring constraints of the Office of Personnel Management (OPM) process. The
nature of this process, and the concomitant difficulties the Commission has experienced in filling ALJ
positions, suggests that the Commission may need statutory or regulatory relief from the constraints
of the OPM system for recruiting and hiring ALJs.
Once the additional ALJs were hired, the Commission tackled the next challenge—the capacity
constraint of office space and courtrooms. Again with support from the Congress, funds were made
available in FY 2008 to expand the ALJ suite to accommodate the doubling of staff. This required
other offices to shrink, at least temporarily, until additional space could be acquired, preferably in the
Commission’s current building. The acquisition of additional space was difficult and took more time
as this required coordinated efforts with General Services Administration (GSA) and negotiations with
the building owner, Boston Properties.
The Commission has occupied space at 500 E Street SW since the building was constructed in 1987.
Until FY 1995, the Commission occupied the first seven floors. Due to declining workload and a cut
in funding, in 1995 the Commission vacated the second floor where there were additional courtrooms,
the Office of the ALJ, and some other smaller units. At that time, the Commission had only three
ALJs and between 10 to 15 active section 337 proceedings and was able to operate with the two ALJ
courtrooms on the ground floor. As noted above, the Commission now has six ALJs and has averaged
over 50 active cases per month since January 2008. With more judges and more cases, lack of
available courtroom space to hold trials and other proceedings hinders the Commission’s ability to
complete cases in a timely manner.
The Commission now has a lease for the second floor space and will take possession of that space and
begin renovating it by the end of FY 2010. The Commission could not have accomplished this without
strong support from the Congress. The additional funds provided in FY 2010 will allow the Commission
to pay the increased rent, as well as the cost of building out the space for a third courtroom and other
offices. The precise timing of that transfer depends on the timing of the current tenant’s departure
6

(sometime between March 1 and September 1, 2010). Nonetheless, by the beginning of FY 2011, the
Commission will incur a full year’s rent for the second floor space (just over $1.5 million per year).
While the renovations to the second floor space and the development of the courtroom will be funded
in FY 2010, related renovations will be necessary to rebalance space on other overcrowded floors
as some offices relocate to the second floor in FY 2011. Thus, the Commission projects additional
one-time renovation costs of about $600,000 will be incurred in FY 2011.

The Commission is Addressing Challenges to its Internal Operations
The Commission has a long record of fiscal restraint and prudent use of taxpayer funds. Increased
funding requests have been reasonable and tied to the statutory mission, specific workload challenges,
and specific projects. When the Congress has provided funds, the Commission has met its challenges
and completed its projects. For example, the Commission has received significant increased funds in
recent years to address its increased intellectual property workload, major infrastructure improvements
to the Electronic Document Information System (EDIS), and the purchase of a new financial system.
While each of these efforts posed challenges in implementation, the Commission has always used
the additional funds to meet the challenges that justified the increased funding. Moreover, when the
anticipated challenges did not materialize, such as the projected increase in import injury caseload
during FY 2005–2006 due to the peak of the sunset cycle, the Congress was promptly notified of
the change in circumstances and the Commission’s pending appropriation request was reduced
accordingly.
In the last several years, the major challenges faced by the Commission have been external—increased
caseload and the information technology (IT) infrastructure used to manage those cases and interact
with parties to Commission proceedings. Now that the intellectual property caseload has stabilized
and personnel have been rebalanced to meet that challenge, the Commission needs to focus on critical
internal challenges that have been deferred due to the increased caseload. These challenges include
network operations, financial management, and continuity planning. Funding for these activities has
been deferred due to budget constraints and more mission-critical priorities.

The FY 2010 expenditure plan and the FY 2011 appropriation request represent a significant
commitment to meeting these internal challenges. Funding is provided in FY 2010, and is requested
in FY 2011, to rebuild the Commission’s aging network infrastructure, improve security, and complete
the replacement of desktop equipment. Similarly, the Commission is aggressively addressing financial
management challenges in FY 2010 by providing additional resources to monitor and evaluate
financial performance and to ensure timely production of clean financial statements. Further, the
Commission is developing an enhanced and rigorous system of internal control that will include
financial operations, but also security and program operations. Finally, the FY 2011 appropriation
request seeks almost $1 million in funding to begin addressing a major challenge to the Commission’s
operations—the lack of a comprehensive COOP Plan and an alternate facility for reconstitution of the
Commission’s network infrastructure and essential functions. This deficiency has been noted by the
Inspector General in annual information security reviews for several years, but requires a significant
commitment of resources over several years to remedy.

Management Initiatives for FY 2010–2011
The Commission’s management initiatives, intended to improve the quality of its performance and
delivery of services to the Commission’s customers, are: 1) Financial Management, 2) Continuity of
Operations Planning, 3) Open Government Initiatives, and 4) Strategic Human Capital Planning. The
Commission has addressed each initiative with an approach to maximize its value.

Financial Management Issues Are Being Addressed
Prior to this year, the Commission received clean financial statement opinions from independent
outside auditors in each year after the Accountability of Tax Dollars Act of 2002 implemented the
current Inspector General financial statement audit process. In FY 2009 the Commission experienced
difficulties in transitioning to a new system for recording, monitoring, and reconciling its financial
transactions. As a result, the Commission was unable to generate year-end financial statements
within the tight time constraints required by Office of Management and Budget (OMB). The inability
to obtain timely and sufficient financial statements meant the auditors could not express an opinion
on the FY 2009 financial statement. Thus, the Commission received a disclaimer for its financial
statements for FY 2009.
The Commission is committed to the integrity of its financial information, including the principles and
objectives of the Federal Managers’ Financial Integrity Act and the Accountability of Tax Dollars Act of
2002, the accounting principles approved by the Federal Accounting Standards Advisory Board, and
the guidance provided in OMB Circulars A-123 (Management’s Responsibility for Internal Control)
and A-136 (Financial Reporting Requirements).
The Commission has implemented a compliance action plan to complete the closeout of its FY 2009
books and to take corrective actions intended to remedy the identified weaknesses in its internal
controls and financial systems. With these efforts, the Commission intends to return to good standing
during FY 2010 and to ensure that its future financial statements are timely and accurate. The
Commission is preparing for a re-audit of the FY 2009 financial statements and anticipates completion
of the audit by the end of March 2010. The Commission is currently soliciting bids on a contract to
9

evaluate the Commission’s current internal controls and develop a comprehensive internal control
system that complies with guidance in OMB Circular A-123 and other applicable financial laws and
regulations. Furthermore, the Commission is undertaking a review of its organizational structure to
ensure that adequate resources are allocated to financial management. Meanwhile, the Commission
is using contractors to fill temporary gaps in functions.

Mandatory Continuity of Operations Plans Require Significant Resource Allocation
The most significant new project requiring funding in FY 2011 is implementation of a COOP Plan.
Federal departments and agencies are under a Federal Information Security Management Act (FISMA)
mandate to develop and implement COOP Plans and capabilities. The Commission has one facility
and one network. Any disaster that would render the facility or network unusable would prevent
the Commission from accomplishing its mission. A COOP Plan is designed to address this problem.
The completion of this project has been delayed for several years due to lack of funding and has
been noted as a significant deficiency in the Commission’s annual FISMA review. The Commission’s
COOP planning contemplates a phased approach to implementation of actionable plans. As both
initial setup and ongoing operations are incremental to the Commission’s routine operations, taking
a phased approach permits spreading the burden of expenses and resource commitments over time.
In FY 2010 the Commission will address two major components of an effective COOP capability. First,
the Commission will identify critical IT and operational infrastructure. This identified infrastructure
includes an expanded capacity to support telecommuting, an off-site space suitable to host a backup
network, and space to process document filings. Second, the Commission will recruit a full-time
COOP Coordinator to produce the Commission’s comprehensive COOP Plan. The COOP Plan will
address risk analysis, identification of the key functions directly supporting mission goals and their
continuity requirements, response procedures, and chain of command and reconstitution scenarios.
Full funding for this project is needed in FY 2011 to: 1) finalize the Commission’s draft COOP Plan,
2) engage in theoretical and physical testing of the plan, 3) acquire an alternate operating facility, and
4) acquire and install a backup network capability. Full compliance with COOP mandates will require
several years of significantly higher resource allocations.
10

Open Government Initiatives Will Improve Public Access and Mission Accomplishment
The Commission considers open government goals during the initiation phase of every major IT project
and in its investment review process. The Commission embraces technological solutions that improve
customer service and streamline internal processes. In FY 2009 the Commission achieved open
government improvements through three major technological initiatives: 1) release of a reengineered
EDIS, 2) deployment of the HTS Online Reference Tool, and 3) deployment of a redesigned Commission
website.
EDIS is the central repository for all documents filed in support of investigations conducted by the
Commission. EDIS offers a secure facility for electronic submission of documents not required to be
filed in paper form under Commission regulations. Paper documents are scanned and entered into
EDIS by Commission personnel. EDIS also offers public access to the history of filings and related
summary information, with extensive safeguards to protect confidential and privileged information.
In FY 2009 a newly reengineered EDIS delivered significant improvements in overall performance,
usability, and reliability to the Commission and to public users. The revised EDIS added a new home
page on the Web which provides centralized access to all EDIS functions, allows users to subscribe
to automatic notifications of new document submissions on a case-by-case basis, and incorporates
enhancements to the document approval process for improving case management. In FY 2010 the
Commission will continue enhancing EDIS in the critical area of security, and will consider rule
changes to expand the categories of documents eligible for electronic submission.
In FY 2009 the HTS Online Reference Tool provided users a web-based source for HTS-related
information, substantially improving electronic access to the 3,000-page HTS. Features include:
1) direct links to classification rulings by U.S. Customs and Border Protection (Customs),
2) cross references which enable users to move from an HTS item in chapters 1–97 to the temporary,
seasonal, or special situation tariff that applies for that item as listed in Chapter 99, and 3) direct links
to footnotes, allowing users to move from the footnote number in the text directly to the footnote
itself. Search improvements include lookup by word, word combinations, or HTS number, and an
extensible thesaurus permitting cross-referencing and common language lookup. In FY 2010 further

enhancements to HTS will include a database upgrade to improve security, speed, and efficiency,
along with additional improvements to content and search capabilities, notably, the ability to search
previous versions of the HTS.
The redesign of the public website (http://www.usitc.gov) in FY 2009 has demonstrably improved
user satisfaction, with enhanced navigation and search facilities. Additionally, expanded use of new
technology for website management allows web content managers in Commission offices to update
and refresh published data with improved accuracy and timeliness, and without extensive reliance
on IT resources.
The Commission is aggressively implementing OMB’s Open Government Directive. The Directive
contains a number of requirements and deadlines, including the identification and online publication
of three new data sets not previously published and development of a plan to achieve open government
objectives. Historically, the Commission has maintained an open posture, with extensive publication
of wide-ranging information on nearly every aspect of its operations. Nevertheless, the Commission
is developing plans to identify and publish three new “high-value data sets” in conformance with
the Directive. This information will relate to key Commission functions and will be information that
can: 1) be used to increase accountability and responsiveness, 2) improve public knowledge of the
Commission and its operations, 3) further the core mission of the Commission, and 4) respond to
needs and demands of public customers. This effort will be led by senior executives of the Commission
who will be accountable for the quality and objectivity of all public data and will participate in interagency working groups established by OMB.

Strategic Human Capital Planning to Assure Continued High Performance
The Commission’s ability to accomplish its mission is directly tied to the quality and competency of
its workforce, which includes many highly skilled professionals. Personnel costs account for almost
70 percent of the Commission’s budget. Therefore, it is critically important that the Commission
manage its human capital strategically. The SHCP is an essential component of the Commission’s
strategic planning. It serves to: 1) define human capital goals, 2) summarize the projected changes
in the workforce assets, 3) identify strategies to achieve the human capital goals, and 4) present an
action plan for implementing the intervention strategies. The purpose of the SHCP is to help the
12

Commission anticipate future human capital issues and begin taking steps today to resolve those
issues or to be prepared to better respond to them when they arise. These initiatives will ensure that
the key priorities described in the plan are achieved.
The Commission expects the SHCP to be a living, evolving document that will be modified as the
Commission reevaluates its mission in light of experience and changing external circumstances.
Accordingly, the Commission’s Strategic Planning Committee, which is composed of senior managers,
completed a bi-annual review of the SHCP in FY 2009 and recommended a number of changes to the
plan. Among the recommendations was a reduction in permanent staffing, organizational changes to
provide for better management and oversight of various functions, and a comprehensive independent
consultant’s analysis of the intellectual property strategic Operation. The Commission is currently
reviewing the consultant’s report and intends to implement certain recommendations by the end of
March 2010. Upon completion of this review, the Commission will undertake a similar review of
administrative functions. To facilitate this ongoing process, the Commission has allocated FY 2010
funds to develop options specific to its Office of Administration. The Commission will notify the
Congress in advance of proposed organizational changes as necessary.

Fiscal Year 2011 Requested Appropriation Language
for the U.S. International Trade Commission
Salaries and Expenses

“For necessary expenses of the U.S. International Trade Commission,
including hire of passenger motor vehicles and services as authorized
by 5 U.S.C. 3109, and not to exceed $2,500 for official reception and
representation expenses, $87,000,000 to remain available until expended.”

Strategic Operation No. 1: Import Injury
Investigations
Strategic Operation No. 1 covers the Commission’s investigations into the effects of unfairly traded
imports or an increase in imports on a U.S. industry and appellate litigation to defend Commission
decisions. These include:
• Antidumping and Countervailing Duty (AD/CVD) investigations, five year (sunset) reviews,
and changed circumstances reviews under title VII of the Tariff Act of 1930;
• global safeguard and market disruption investigations under sections 202, 204, 406, 421,
and 422 of the Trade Act of 1974;
• safeguard investigations pursuant to various statutes implementing free trade agreements
(FTAs) (e.g., sections 302 and 312 of the North American Free Trade Agreement (NAFTA)
Implementation Act of 1994); and
• World Trade Organization (WTO) consistency proceedings requested by USTR, as provided
in section 129(a)(4) of the Uruguay Round Agreements Act.
All but one of the Commission’s import injury caseload in FY 2009 consisted of investigations falling
under title VII. The one exception was a China safeguard investigation under section 421.
New import injury investigations usually are initiated in response to a petition for relief filed on behalf
of a domestic industry. Reviews of outstanding AD/CVD orders are conducted every five years as
long as the orders remain in effect. Overall caseload for import injury investigations averaged around
13 active cases per month from FY 2007 through 2009. New investigations increased as a result of
economic weakness during the second half of FY 2009. As virtually all of these new investigations
resulted in affirmative determinations, their return for final investigations, along with the return of
transition sunset cases, is expected to increase caseload for FY 2010 and 2011 relative to recent
years.
15

Antidumping and Countervailing Duty Investigations
In AD/CVD investigations, the Commission is required to determine whether an industry in the
United States is materially injured or threatened with material injury, or whether the establishment of
an industry in the United States is materially retarded, by reason of imports of the merchandise that
are under investigation. The Department of Commerce (Commerce) is required to determine whether
imported merchandise is being sold in the United States at less than fair value (AD investigations), or
whether a countervailable subsidy is being provided for the manufacture, production, or exportation
of merchandise imported into the United States (CVD investigations).
Under the current law, the Commission makes a preliminary determination under a “reasonable
indication” standard within 45 days of the filing of the petition. If the Commission’s preliminary
determination is affirmative, Commerce must continue its investigation and make preliminary and
final determinations concerning the alleged unfair trade practice. If Commerce’s final determination
is affirmative, the Commission must complete its ongoing investigation and make a final injury
determination. The Commission conducts all AD/CVD investigations in accordance with statutes
that implement U.S. international obligations.
In FY 2008 and 2009 the number of preliminary AD/CVD investigations, which reflect new filings,
was more than double the number in FY 2006 and equal to or higher than the level in FY 2007. The
Commission experienced an increase in new filings in the second half of FY 2009, with 12 of the
15 new filings occurring during that time. This is consistent with observed increases in new filings
historically during periods of economic weakness. The Commission projects new filings in FY 2010
and 2011 to remain at levels similar to that in FY 2009 and completed investigations in FY 2010
to be higher than in FY 2009 reflecting the completion of cases filed late in FY 2009. In FY 2009
the Commission instituted 15 preliminary and 8 final AD/CVD investigations and completed 10
preliminary and 13 final investigations. Most notable among the final investigations instituted in
FY 2009 were the AD/CVD investigations concerning oil country tubular goods from China which
involved a U.S. market valued at $11.6 billion in 2008. The Commission projects a caseload of 16
preliminary and 15 final investigations instituted and 16 preliminary and 15 final investigations

completed both in FY 2010 and 2011. (See Strategic Operation No. 1: Import Injury Investigations
Caseload, p. 23.) The Commission charged 28.5 workyears of direct labor to AD/CVD investigations in
FY 2009. (See Workyears by Activity and Office, p. 67.)

Sunset Reviews
In sunset reviews, the Commission evaluates whether material injury to a U.S. industry would likely
continue, or recur, if the AD/CVD order under review were to be revoked. A review must be conducted
on each AD/CVD order every five years as long as the order remains in effect. Reviews may be
terminated by Commerce because of the domestic industry’s lack of response to the notice of initiation.
When a review is terminated, the underlying order is revoked. If the review is not terminated, the
Commission will conduct either an expedited or a full review. The Commission may conduct expedited
reviews when it finds that responses of domestic and/or foreign interested parties to the notice of
institution are inadequate. A full review occurs when there is adequate participation from both sides
or when the Commission otherwise finds a full review is warranted. Generally, the Commission must
complete expedited reviews within five months of institution and full reviews within 12 months of
institution. The workload in expedited reviews is most intense during the final two months, while the
workload in full reviews is most intense during the final six months.
When the requirement for sunset review was first established, during the transition period from 1999
to 2001, more than 300 AD/CVD orders issued prior to 1995 (transition orders) were reviewed by the
Commission. The transition orders that remained in effect as a result of the first round of reviews
returned for the second round of reviews beginning in January 2004. The number of transition sunset
reviews reached sustained high levels in FY 2005 and 2006, and ended in January 2007, with more
than 150 orders reviewed by the Commission. During FY 2008 there were no transition sunset
reviews. The third round of transition sunset reviews began in FY 2009 and will continue through
FY 2011. While the number of transition orders to be reviewed has decreased, as compared to the
first and second rounds, the total number of review cases in FY 2010 and 2011 will rise because the
number of non-transition cases will be higher than in the previous rounds.

During FY 2009 the Commission instituted 11 grouped sunset reviews. In addition, three reviews were
terminated by Commerce, and the orders revoked because of no domestic industry response. For
the remaining cases, the Commission determined to conduct eight full reviews and three expedited
reviews. The Commission completed five full reviews and four expedited reviews during the year. (See
Strategic Operation No. 1: Import Injury Investigations Caseload, p. 23.) Two notable five year reviews
conducted by the Commission in FY 2009 involved steel concrete reinforcing bar (rebar) from Turkey
and carbon steel plate from China, Russia, and Ukraine. The U.S. markets for these products were
$5.8 billion in 2007 for rebar and $8.8 billion in 2009 for carbon steel plate. The Commission charged
11.8orkyears of direct labor to sunset reviews in FY 2009. (See Workyears by Activity and Office, p. 67.)
Sunset reviews must be instituted five years after an AD/CVD order is issued or continued;
consequently, the sunset caseload can be projected with relative accuracy five years in advance.
While sunset caseload is reasonably certain, the conduct of each individual proceeding (full review,
expedited review, or termination because of no domestic industry) is not. Thirteen of the 21 reviews
that will be instituted in FY 2010 will be non-transition reviews; that is, reviews of orders issued after
1995. However, the majority of reviews that will be instituted in FY 2011 will be transition reviews. In
planning resource allocations for sunset reviews, the Commission assumes that the same type of review
(expedited or full) will occur in the second or third round as occurred in the previous round, unless the
order at issue has never been the subject of a full review. For initial reviews, the Commission follows
historical trends and assumes that multi-country orders will receive full review and the remainder
will be split between expedited reviews and those that are terminated because of no domestic interest.
Applying this estimation method to the scheduled reviews, the Commission anticipates institution of
14 full reviews and 7 expedited reviews in FY 2010. In FY 2011 the Commission expects to institute
36 reviews, with 26 being full and 10 being expedited. (See Strategic Operation No. 1: Import Injury
Investigations Caseload, p. 23.) The Commission assumes that on average about two reviews per year
will be revoked by Commerce due to lack of domestic interest. Reviews initiated in FY 2010 will cover
53 orders and those initiated in FY 2011 will cover 80 orders.

Other Import Injury Investigations
Other import injury investigations include safeguard investigations, changed circumstances reviews,
remands with reopened records, and WTO consistency proceedings. Safeguard investigations are
conducted pursuant to sections 202, 204, 406, 421, and 422 of the Trade Act of 1974 and statutory
provisions in FTAs (e.g., sections 302 and 312 of the NAFTA Implementation Act). In section 204
investigations the Commission monitors industry adjustment efforts; reports to the President on
the probable economic effect of the reduction, modification, termination, or extension of any relief
that is in effect; or evaluates the effectiveness of any relief provided after its termination. In section
421 investigations the Commission determines whether increased imports from China cause market
disruption to the U.S. industry. In changed circumstances reviews the Commission evaluates whether,
in light of changed circumstances, material injury to a U.S. industry would likely continue, or recur,
if the AD/CVD order under review is revoked. In remands with reopened records the Commission
collects and analyzes new information in response to an order from one of its reviewing courts or
bodies.
There have been no new global safeguard petitions filed under section 201 of the Trade Act of 1974
in the last six years. In FY 2009 the Commission did not initiate any global safeguard investigations
or any changed circumstances reviews. However, in FY 2009 the Commission did conduct one China
safeguard investigation, in addition to two remand investigations in which the record was reopened.
The China safeguard investigation covered certain passenger and light truck tires. The U.S. market
for those tires is valued at $16.5 billion. The Commission charged 1.8 workyears of direct labor to
other import injury investigations in FY 2009. (See Workyears by Activity and Office, p. 67.) Based on
historical averages, the Commission anticipates reopening the record in a limited number of remands
in both FY 2010 and 2011. (See Strategic Operation No. 1: Import Injury Investigations Caseload, p. 23.)

Litigation
If an appeal challenging a Commission title VII determination is filed in the U.S. Court of International
Trade (CIT), or before a binational review panel under NAFTA, the Office of the General Counsel (OGC)
defends the Commission’s determination. OGC also represents the Commission in appeals of CIT
decisions to the U.S. Court of Appeals for the Federal Circuit (Federal Circuit). If there is a dispute
brought before the WTO involving a Commission import injury determination, OGC assists USTR in
defending that determination.
In FY 2009, 14 new cases were filed in the CIT or the Federal Circuit involving challenges to Commission
determinations in injury investigations and sunset reviews. This number of new appeals was in keeping
with the number of new appeals filed in FY 2008, when 13 appeals challenging the Commission’s
title VII determinations were filed in the Federal courts. In addition to these appeals, 12 new appeals
challenging the actions of the Commission and Customs under the Continued Dumping and Subsidy
Offset Act (the “Byrd Amendment”) were filed in Federal courts in FY 2009. This is a decline from the
number of new appeals under the Byrd Amendment in FY 2008, when 21 such appeals were filed, and
likely reflects the repeal of the Byrd Amendment effective for subject imports entered after October 1,
2007.
During FY 2009 OGC filed 17 major briefs and two remand determinations. Also during FY 2009
OGC represented the Commission in five oral arguments in AD/CVD cases before U.S. courts. OGC
also assisted USTR in the preparation of a number of filings in WTO disputes concerning dumping
and subsidization. The Commission charged 4.8 workyears of direct labor to import injury litigation
before either domestic courts or international panels in FY 2009. (See Workyears by Activity and
Office, p. 67.) As of September 2009, 69 appeals involving Commission title VII determinations were
pending at the CIT and the Federal Circuit. In addition, two disputes involving the Commission’s title
VII determinations were pending before NAFTA panels, and three disputes were pending before the
WTO. The number of appeals pending in these venues at the end of September 2009 remained at the
historically high levels seen in September 2008, when 67 such appeals were pending in the Federal
courts and six disputes were pending before NAFTA or WTO panels.

Resource Requirements and Workload for Import Injury Investigations
In the aggregate, Strategic Operation No. 1 utilized 28.6 percent of the Commission’s resources in FY
2009 (see Dollar Cost: Comparison by Strategic Operation, p. 64), amounting to $21.5 million (see Budget
Summary by Strategic Operation, p. 66). In FY 2009 Strategic Operation No. 1 accounted for direct
costs of $12.5 million and 75 workyears. (See Strategic Operation No. 1: Import Injury Investigations
Resource Requirements, p. 22.) In FY 2009 five offices together accounted for approximately 80 percent
of the direct workyears. The Office of Investigations, the Commissioners’ offices, and OGC contributed
19.6, 15.8 and 10.8 workyears, respectively, while the Office of Economics and the Office of Industries
contributed 8.2 and 5.2 workyears, respectively. (See Workyears by Activity and Office, p. 67.)
During FY 2009 the Commission instituted 36 grouped import injury investigations, including sunset
reviews, and completed 35. The Commission projects that 54 investigations will be instituted and 47
will be completed in FY 2010, and that 69 will be instituted and 58 will be completed in FY 2011. As
of December 2009, there were 13 active import injury investigations pending at the Commission. (See
Strategic Operation No. 1: Import Injury Investigations Caseload, p. 23.)
In its Fiscal Year 2010 and 2011 Performance Plans (see attached), the Commission has set goals
designed to improve its performance in conducting import injury investigations. The Commission
regularly issues user surveys, soliciting feedback from the trade bar regarding process improvements.
The Commission will continue to seek to improve public access to information about its procedures,
primarily through design enhancements to its website, and will ensure that procedures are fair and
properly implemented and proceedings are completed on time. For example, process enhancements
have yielded improvements in timely availability of case filings. As a result, the Commission has
exceeded the targets set in its Performance Plan for posting information on EDIS. In addition, in
FY 2009 the Commission released a reengineered version of EDIS. The new hardware architecture
and an updated software suite, which is more user-friendly and maintainable, have improved the
overall performance of the system. To date, the new version of EDIS has been a more reliable and
stable system than its predecessor. The Commission launched a redesign of its entire website in
late FY 2009 with a focus on improving the search and navigation capabilities during FY 2009. The
Commission expects that these improvements will benefit the agency and outside parties, particularly
as caseload levels increase in FY 2010 and 2011.
21

Strategic Operation No. 1: Import Injury Investigations Resource Requirements,
Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Category of Obligation

FY 2009 Actual
Workyears

FY 2010 Estimate

Dollars

Workyears

FY 2011 Estimate

Dollars

Workyears

FY 2010–11 Change

Dollars

Workyears

Dollars

A. Direct Costs 2
Personnel Compensation

$8,708

$8,995

$9,595

$600

Benefits

2,172

2,304

2,486

182

Rent

1,602

1,623

1,637

Travel and Transportation
Subtotal
B. Indirect Costs

$12,510

$12,963

$13,768

$805

Personnel Compensation

$3,520

$3,645

$3,666

$20

Benefits

878

935

941

Rent

718

727

732

Travel and Transportation

139

144

148

Training

150

135

167

Equipment, Equipment Rental, Communication

629

752

889

138

Printing, Reproduction, Postage

145

139

140

105

-15

2,552

2,984

3,028

Land and Structures
Services
Supplies
Subtotal
Total Resource Requirements

251

255

261

$9,012

$9,821

$10,062

$241

108

$21,523

109

$22,784

111

$23,830

$1,046

Totals may not add up due to rounding.
Direct costs include personnel costs directly attributed to the five strategic Operations including the Commissioners and Information Technology Services, as well as space rental and travel charged directly
to the five strategic Operations in the Commission’s Strategic Plan.
3
Indirect costs include personnel costs such as OEEO and general administration support services. Indirect costs also include virtually all non-personnel costs, such as contractual services, supplies, and
equipment, as well as space rental, travel and training, labor, union, and OSHA. Most indirect costs are allocated to operations according to the percentage of total costs directly charged to each operation.
1
2

Source: Actual costs derived from the Labor Cost Reporting System and Accounting System. Estimates provided by the Cost Center Managers and Office Directors.

Strategic Operation No. 1: Import Injury Investigations Caseload
80
70

Summary of Import Injury Investigations, FY 2006–2011
Instituted Investigations, FY 2006–2011

60
50
40
30
20
10
0

2006 2007 2008 2009 2010* 2011*

Completed Investigations, FY 2006–2011
60

Type and Status

FY 2006
actual

FY 2007
actual

FY 2008
actual

FY 2009
actual

FY 2010
estimate

FY 2011
estimate

Import Injury Investigations
Instituted
Preliminary Title VII1......................5
Final Title VII1. ...............................4
Other2............................................1
Full Sunset3................................. 11
Expedited Sunset3.........................7
Total.........................................28

13
6
2
7
6
34

13
16
3
6
5
43

15
8
2
8
3
36

16
15
2
14
7
54

16
15
2
26
10
69

Completed
Preliminary Title VII1......................6
Final Title VII1. ...............................6
Other2............................................3
Full Sunset...................................22
Expedited Sunset........................13
Total.........................................50

9
3
3
10
6
31

18
12
2
7
4
43

10
13
3
5
4
35

16
15
2
8
6
47

16
15
2
14
11
58

1
The data shown for preliminary and final title VII investigations group antidumping and countervailing duty investigations together since
these investigations generally run concurrently and are handled by the same investigative team.
2
Other includes section 201 Safeguard review, section 421 China Safeguard, remands with reopened records, and other investigations.
3
Does not include reviews that were terminated without Commission determination.

Active† Import Injury Investigations, by month, for October 2006 through December 2009

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

20
15

10
0

5
0

2006 2007 2008 2009 2010* 2011*

* Estimate

†

OND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND

Active during the month

Source: Office of Investigations

Strategic Operation No. 2: Intellectual Property-Based
Import Investigations
Section 337 of the Tariff Act of 1930, as amended, authorizes the Commission to investigate alleged
unfair methods of competition and unfair acts in the importation of articles into the United States, or
in their sale. Most of these investigations involve allegations relating to infringement of U.S. patents
and trademarks. If the Commission finds a violation, it may issue an exclusion order barring the
imported product from entry into the United States, and it may also direct a respondent to cease and
desist from engaging in the unfair practices. The violation of a cease and desist order can be punished
by civil penalties of up to $100,000 a day or twice the domestic value of the articles entered or sold.
The President may, for policy reasons, disapprove Commission exclusion and/or cease and desist
orders within 60 days of their issuance. Commission determinations may be appealed to the Federal
Circuit.
Section 337 investigations normally are instituted after a private party files a complaint. Most phases
of these trial type investigations must be conducted in conformity with the formal adjudication
provisions of the Administrative Procedure Act. The Commission is required to determine whether
there has been a violation of section 337 and, if so, the appropriate remedy to be imposed. The
Commission endeavors to conclude section 337 investigations as expeditiously as possible, preferably
less than 18 months after institution.
The Commission’s ALJs, with the assistance of their staff, conduct conferences and trials, issue
initial determinations, and facilitate and approve settlement agreements. The Office of Unfair Import
Investigations (OUII) represents the public interest, investigates the factual and legal bases for
allegations presented in section 337 complaints, develops evidence through discovery, and participates
in trials. The determinations of the ALJs are subject to discretionary review or adoption by the
Commission. OGC provides advice to the Commissioners during the review process and defends the
final Commission decision during any subsequent appeal.

Section 337 investigations usually involve complex factual and legal determinations. The spectrum
of products and intellectual property rights that have been the subject of section 337 investigations
is very broad. Nevertheless, almost 60 percent of the 85 investigations active in FY 2009 involved
integrated circuit, computer, telecommunications, and other electronic technologies, including laser
diodes, liquid crystal displays, and cellular telephones. Chemical compositions and processes, surgical
systems, construction equipment, and wind turbines were among the many other technologies at issue
in section 337 investigations this year. A variety of consumer items, ranging from ink cartridges to
refrigerators, were also the focus of investigations conducted during FY 2009.
The number of new section 337 proceedings commenced in FY 2009 was in keeping with the elevated
level of new proceedings experienced in the years since FY 2004, but below the record level reached
in FY 2008. The Commission expects the section 337 caseload will continue at a high level in FY
2010 and 2011. The average number of new section 337 matters commenced during the five year
period from FY 2000–2004 rose from an average of 22 new proceedings to an average of 38 new
proceedings per year in the period from FY 2005–2009, or by more than 70 percent. As the number
of new matters per year has increased, so has the total number of section 337 matters active during
the course of a year. Whereas 44 matters were active during all of FY 2004, a total of 85 matters
were active during the course of FY 2009. (See Strategic Operation No. 2: Intellectual Property-Based
Import Investigations Caseload, p. 29.) Although the number of new matters commenced in FY 2009
was below the record level of the previous year, the level of new matters remained consistent with the
elevated levels of new proceedings the Commission experienced in FY 2006 and 2007.
During FY 2009 the Commission instituted 36 new investigations and ancillary proceedings.
Specifically, during FY 2009 the Commission instituted 29 investigations on the basis of new
complaints of violations of the statute, as well as seven new ancillary proceedings relating to prior
investigations. Another 44 investigations and ancillary proceedings carried over from FY 2008. In FY
2009 Commission personnel spent 44.2 workyears on section 337 investigations and 4.3 workyears on
section 337 litigation. (See Workyears by Activity and Office, p. 67.) As a result of this heavy investigative
caseload, the amount of appellate litigation is also expected to remain high in FY 2010 and 2011.
The doubling of the caseload between FY 2004 and 2008 led the Commission to approve the addition
of a sixth ALJ position and related staff in 2008. The addition of the sixth ALJ, who began work
at the Commission in December 2008, was intended to allow for a more reasonable distribution
25

of the increased caseload among the ALJs and facilitate the expeditious resolution of section 337
investigations. However, scheduling of proceedings has been hampered by a lack of courtroom space.
To address this constraint, the Commission has leased the second floor of its building and will take
possession during FY 2010 (sometime between March 1 and September 1, 2010, depending on the
current tenant’s departure plans). The lease is coterminous with the Commission’s lease of the rest
of the building and will expire in 2017. The Commission plans to build a third courtroom as soon as
it takes possession of this space.

Resource Requirements and Workload for Intellectual Property-Based Import Investigations
In the aggregate, Strategic Operation No. 2 utilized 26.0 percent of the Commission’s resources in
FY 2009 (see Dollar Cost: Comparison by Strategic Operation, p. 64), amounting to $19.6 million (see
Budget Summary by Strategic Operation, p. 66). In terms of direct costs, Strategic Operation No. 2
accounted for $11.0 million in FY 2009, with 63 workyears charged to it. (See Strategic Operation No.
2: Intellectual Property Based Import Investigations Resource Requirements, p. 28.) Offices charging
direct workyears to this strategic Operation in FY 2009 included OUII (19.7 workyears), the Office of
the ALJs (17.7 workyears), and OGC (11.1 workyears). (See Workyears by Activity and Office, p. 67.)
During October 2009, 49 section 337 proceedings were active at the Commission as compared to 50
in October 2008. The Commission projects that approximately 42 new investigations and ancillary
proceedings will be instituted in both FY 2010 and 2011. During FY 2009 the Commission completed
40 investigations and ancillary proceedings. The Commission projects the completion of approximately
45 investigations and ancillary proceedings in both FY 2010 and 2011. (See Strategic Operation No.
2: Intellectual Property-Based Import Investigations Caseload, p. 29.)
At the end of FY 2009, 26 appeals from 14 section 337 determinations were pending before the
Federal Circuit. Forty other appeals were litigated to completion, dismissed for jurisdictional reasons,
or voluntarily dismissed by appellants during FY 2009. The average number of pending appeals of
section 337 appeals during this fiscal year increased over the already high number in FY 2008. The
Federal Circuit held oral argument in seven section 337 cases. Six cases related to Commission
section 337 investigations were pending in the U.S. district courts during FY 2009, and oral argument
was held in two of these. The average number of pending appeals of section 337 determinations
26

during FY 2009 remained above historical levels, reflecting the increased number and complexity of
section 337 investigations filed in recent years. In FY 2009 the Commission charged 4.3 workyears to
section 337 appellate litigation. (See Workyears by Activity and Office, p. 67.)
In its Fiscal Year 2010 and 2011 Performance Plans (see attached), the Commission has set goals
designed to improve its performance in conducting intellectual property-based import investigations.
The Commission will continue to seek to complete proceedings expeditiously, increase the effectiveness
of agency orders, and enhance the provision of information to the public about the section 337 process.
The Commission will work to ensure that deadlines in section 337 proceedings are met and that such
proceedings are completed as quickly as possible. To assist in meeting the challenges of its increased
section 337 workload, the Commission has: 1) hired a sixth ALJ in FY 2009, 2) acquired additional
space which will include a third courtroom in FY 2010, 3) launched a pilot mediation program in
FY 2009 to help reduce the number of cases that are fully litigated, and 4) retained a consultant to
perform a comprehensive independent review of Strategic Operation No. 2.
In FY 2009 the Commission launched a redesign of its entire website in an effort to improve public
access to information about its section 337 proceedings. Also in FY 2009 the Commission reengineered
EDIS which resulted in improved performance in terms of the speed with which documents are made
available for viewing.
During FY 2009 Commission personnel provided scheduling information relating to the issuance of
exclusion orders to Customs on a periodic basis, and will continue to do so in FY 2010.

Strategic Operation No. 2: Intellectual Property-Based Import Investigations
Resource Requirements, Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Category of Obligation

FY 2009 Actual
Workyears
Dollars

FY 2010 Estimate
Workyears
Dollars

FY 2011 Estimate
Workyears
Dollars

FY 2010–11 Change
Workyears
Dollars

A. Direct Costs 2
Personnel Compensation

$7,504

$7,750

$8,343

$593

Benefits

1,872

1,984

2,165

180

Rent

1,604

2,410

2,925

516

Travel and Transportation
Subtotal
B. Indirect Costs

$11,007

$12,181

$13,478

$1,297

$3,356

$3,481

$3,777

$297

Personnel Compensation
Benefits

837

894

984

Rent

718

924

1,056

132

103

Training

126

111

144

Equipment, Equipment Rental, Communication

607

1,463

1,605

142

Printing, Reproduction, Postage

146

747

657

-90

Services

2,432

2,843

2,862

Supplies

252

324

361

Travel and Transportation

Land and Structures

Subtotal

$8,600

$10,911

$11,586

$675

Total Resouce Requirements

$19,607

$23,092

101

$25,064

$1,972

Source: Actual costs derived from the Labor Cost Reporting System and Accounting System. Estimates provided by the Cost Center Managers and Office Directors.

Strategic Operation No. 2: Intellectual Property-Based Import Investigations
Caseload
50

Summary of Intellectual Property-Based Import Investigations and Ancillary Proceedings,
FY 2006–2011

Instituted Investigations, FY 2006–2011

Status

FY 2006
actual

FY 2007
actual

FY 2008
actual

FY 2009
actual

FY 2010
estimate

FY 2011
estimate

Instituted................................................. 40

Active...................................................... 70

Completed.............................................. 30

2006

2007

2008

Active† Intellectual Property-Based Import Investigations and Ancillary Proceedings,
by month, for October 2006 through December 2009

2009 2010* 2011*

Completed Investigations, FY 2006–2011

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

50
40

40
30

30
20

0
0

2006

* Estimate

2007

2008

OND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND

2009 2010* 2011*
†

Active during the month

Source: Office of Unfair Import Investigations

Strategic Operation No. 3: Industry and Economic
Analysis
The industry and economic analysis provided by the Commission supports trade negotiators and
trade policymakers in the legislative and executive branches through timely and objective analytic
reports and other products. By maintaining the highest level of industry, economic, and regional
trade expertise, the Commission is a recognized leader in independent research and analysis of
international trade and industry competitiveness. Commission efforts in this strategic Operation take
two forms. In statutory investigations, the Commission responds to statutorily authorized requests
of the legislative and executive branches. These requests result in official investigative reports that
present Commission analysis and findings on the requested topic. The Commission’s industry and
economic experts also conduct other (non-statutory) research and analysis in areas of significant
importance to the U.S. economy. These efforts focus on developing the expertise necessary to support
statutory work in Strategic Operation Nos. 1, 3, and 4, as well as technical support provided under
Strategic Operation No. 5. The work in this area contributes to future work requested under statutory
authority and often culminates in published staff papers and articles.

Statutory Investigations
Statutory investigations conducted by the Commission under Strategic Operation No. 3 generally fall
into three broad categories:
• General Factfinding and Analytical Investigations, which include non-recurring and recurring
investigations conducted pursuant to section 332 of the Tariff Act of 1930;
• Probable Economic Effect Investigations, which include investigations required by section
131 of the Trade Act of 1974 and by section 103 requirements of various trade agreement
implementation acts; and
• Assessments of Negotiated Trade Agreements, which include investigations regarding the
effects of negotiated FTAs, as mandated by section 2104 of the Trade Act of 2002.
30

In addition, the Commission conducts other types of statutory investigations. The Commission
publishes The Year in Trade: Operation of the Trade Agreements Program annually, as required by
section 163(c) of the Trade Act of 1974.
Statutory investigations often involve: 1) public hearings, 2) written or telephone surveys of U.S.
producers, importers, and consumers, 3) domestic and foreign fieldwork, 4) interviews with industry,
government, and academic experts, 5) extensive literature reviews, 6) data compilation, and 7) analysis.
Investigations typically last 3 to 12 months, but can vary considerably outside that range as a result
of the complexity or urgency of the subject matter pursuant to the request. Likewise, staffing can vary
considerably, from a few to 50 or more team members consisting of trade analysts, economists, and
attorneys.
During FY 2009 the Commission had 22 active investigations, completed 10 investigations, and
instituted 9 new investigations. (See Strategic Operation No. 3: Industry and Economic Analysis
Investigations Caseload, p. 40.) The number of active investigations per month declined from a high
of 25 in April 2008 to 8 by January 2009 and averaged 10 for all of FY 2009. As a result workyears
charged to these investigations decreased from 51.3 in FY 2008 to 32.6 in FY 2009. (See Workyears
by Activity and Office, p. 67.) A temporary decline in workload in this strategic Operation is common in
a presidential election year or when there is a change in administrations, but is not expected to signal
a declining need for the Commission’s economic analysis in FY 2010 and 2011.

General Factfinding and Analytical Investigations
The Commission conducts general factfinding and analytical investigations regarding trade, tariff, and
competitiveness issues pursuant to section 332(g) of the Tariff Act of 1930. This provision authorizes:
1) the President through the USTR, 2) the House Committee on Ways and Means, or 3) the Senate
Committee on Finance to direct the Commission to conduct specific trade-related investigations and
to report its findings. The Commission is also authorized to self-initiate investigations and studies on
trade matters under section 332(b). Section 332 investigations can take several forms and approaches,
such as:
• examining specific foreign industries or countries for the purpose of identifying existing
foreign tariffs, nontariff barriers, and other background information to assist U.S. trade
negotiators;
31

• monitoring and reporting on specific countries or regions regarding economic and trade
activities as specified by the requestor; and
• analyzing specific industries and products and providing information regarding the conditions
of competition in U.S. and foreign markets, trade levels and trends, and government policies
affecting the industries.
USTR and the Congress often request one-time industry and economic analysis investigations
that include time critical information on current economic issues. Requests can also take the form
of recurring or multi-year investigations. In those cases, reports may be delivered over a specific
timeframe, such as yearly, over five years, or until terminated. In FY 2009 Commission staff charged
27.7 workyears to general factfinding and analytical investigations.
The Commission completed four non-recurring investigations during FY 2009, down from 12 in FY
2008. Highlights of these selected studies follow:
• Advice Concerning Possible Modifications to the U.S. Generalized System of
Preferences, 2008 Review of Additions and Removals, Inv. No. 332-500 (Pub. 4057,
January 2009). This report provides advice on how competing U.S. industries may be affected
by the addition of 11 HTS subheadings to the list of articles eligible for the Generalized
System of Preference (GSP) and the removal of two HTS subheadings from duty-free status
from certain beneficiary developing countries.
• Property and Casualty Insurance Services: Competitive Conditions in Foreign
Markets, Inv. No. 332-499 (Pub. 4068, March 2009). This report provides an overview of
the global market for property and casualty insurance services; examines the nature and
extent of trade in property and casualty insurance services; and identifies and examines
policies and practices that affect U.S. firms’ access to, and competitiveness in, foreign
markets for such services.
• Advice Concerning Possible Modifications to the U.S. Generalized System of
Preferences, 2008 Review of Competitive Need Limit Waivers, Inv. No. 332-506 (Pub.
4074, April 2009). This report provides advice as to the impact of granting a waiver to the
competitive need limit for Indonesia for PET resin, to Argentina for certain full-grain unsplit
bovine (not buffalo) and equine leather; and to Turkey for copper wire strand.
32

• Sub-Saharan African Textile and Apparel Inputs: Potential for Competitive
Production, Inv. No. 332-502 (Pub. 4078, May 2009). This report identifies yarns, fabrics,
and other textile and apparel inputs that can be produced competitively in beneficiary
sub-Saharan African countries through new or increased investment or other measures.
The Commission completed reports on nine multi–year (recurring) investigations in FY 2009.
• Ethyl Alcohol for Fuel Use: Determination of the Base Quantity of Imports, Inv. No.
332-288 (December 2008)
• Shifts in U.S. Merchandise Trade 2007 Annual Report, Inv. No. 332-345T (Pub.4044,
December 2008)
• Monitoring of U.S. Imports of Tomatoes, Inv. No. 332-350 (Pub. 4048, November 2008)
• Monitoring of U.S. Imports of Peppers, Inv. No. 332-351 (Pub. 4049, November 2008)
• Sub-Saharan Africa: Effects of Infrastructure Conditions on Export Competitiveness,
Third Annual Report, Inv. No. 332-477 (Pub. 4071, April 2009)
• Recent Trends in U.S. Services Trade 2009 Annual Report, Inv. No. 332-345R (Pub.
4084, June 2009)
• Shifts in U.S. Merchandise Trade 2008 Annual Report, Inv. No. 332-345T (Pub. 4089,
July 2009)
• The Economic Effects of Significant U.S. Import Restraints, Sixth Update 2009, Inv.
No. 332-325 (Pub. 4094, August 2009)
• The Impact of the Caribbean Basin Economic Recovery Act, Inv. No. 332-227 (Pub.
4102, September 2009)

Probable Economic Effect Investigations
The Commission assesses the potential impact of proposed FTAs on specific sectors of the economy
and for specific line items in the HTS. These investigations are conducted primarily under the
authority of: 1) section 131 of the Trade Act of 1974, 2) section 2104(b)(2) of the Trade Act of 2002,
33

and 3) section 103 of certain FTA implementation acts, such as the NAFTA Implementation Act. In
FY 2009 Commission staff charged 1.2 workyears to this activity, a decrease from 2.1 workyears in
FY 2008.
Section 131 investigations involve line item advice for U.S. negotiators as they prepare for trade
negotiations. Section 2104(b)(2) investigations involve advice to negotiators regarding the impact
of liberalizing trade for sensitive agricultural products. The Commission consolidates these two
investigations for negotiations into one report on probable economic effects for negotiators. Section
103 investigations analyze the likely effect of modification to the rules of origin under specific trade
agreements.
The Commission completed three Section 103 rules-of-origin investigations during FY 2009.
• Viscose Rayon Staple Fiber: Probable Effect of Modification of U.S.-Australia Free
Trade Agreement Rules of Origin, Inv. No. 103-21 (Pub. 4041, October 2008)
• Probable Economic Effect of Certain Modifications to the United States-Chile Free
Trade Agreement Rules of Origin, Inv. No. 103-19 (Pub. 4042, October 2008)
• Certain Yarns and Fabrics, Fiscal Year 2009: Effects of Modification of U.S.-Singapore
FTA Rules of Origin, Inv. No. 103-22 (Pub. 4096, August 2009)

Assessments of Negotiated Trade Agreements
The Commission assesses the likely economywide and selected sectoral effects of negotiated FTAs as
mandated by section 2104(f) of the Trade Act of 2002. The act requires the Commission to analyze
the likely effects of negotiated trade agreements on the U.S. economy and on specific U.S. economic
sectors, including the effects on U.S. gross domestic product, trade, employment, and consumers.
USTR is required to request the study at least 90 days prior to the signing of a trade agreement. The
Commission is required to submit its report to the Congress and USTR no later than 90 days after
signing. Hence, these reports are often referred to as “90 90” studies. The Commission was not tasked
with and therefore did not complete investigations regarding FTAs during FY 2009 or FY 2008.

Other Statutory Investigations
In addition to the three major types of statutory investigations, the Commission conducts an annual
investigation regarding the Operation of the Trade Agreements Program each year as required by
section 163(c) of the Trade Act of 1974. See The Year in Trade 2008: Operation of the Trade Agreements
Program, Inv. No. 163-001 (Pub. 4091, July 2009). During FY 2009 the Commission charged 1.8
workyears to this activity, down from 5.3 workyears in FY 2008, when there were three studies.

Other Industry and Economic Analysis Activities
Other industry and economic analysis activities include the production of an extensive array of
staff publications on topical and emerging trade issues, and the delivery of presentations to many
government agencies and private groups. Commission industry analysts and research economists
must maintain expert knowledge of the U.S. and global economies and have a high level of industry,
regional, and economic expertise. This expertise is frequently called upon by trade policymakers
in the executive and legislative branches for informal assistance and counsel. Staff publications
and presentations are intended to keep the Commission and trade policymakers informed of the
latest developments in the international trade arena that potentially affect specific U.S. industries.
Preparation of trade publications, formal presentations, and participation in supporting activities are
essential to maintaining staff knowledge, skills, and abilities.
Staff research initiatives include articles in the Journal of International Commerce and Economics
(JICE), staff research studies, conference/working papers, and research notes/publications. The
number of completed initiatives increased from 93 in FY 2008 to 99 in FY 2009. The time spent on
these activities shifted from producing JICE articles, conference/working papers and publications
toward producing industry summaries and concise, analytical products (specifically, a new category
of Executive Briefings on Trade). Staff produced 40 Executive Briefings on Trade, primarily intended
to inform the Commissioners on select trade-related topics. Commission staff increased its efforts on
research and expertise-building initiatives from 19.0 workyears in FY 2008 to 35.8 workyears in FY
2009. (See Workyears by Activity and Office, p. 67.) In FY 2009 the largest workyear increases were in
industry and trade summaries (up from 1.6 in FY 2008 to 5.7 workyears in FY 2009), staff studies and
35

working papers (up from 4.6 in FY 2008 to 8.7 workyears in FY 2009), India/India services, Executive
Briefings on Trade, and energy and environment (all new in FY 2009 with 2.7, 2.0 and 1.5 workyears,
respectively).
The Commission employs numerous approaches to analyze the effects of any changes in U.S.
trade policies on the U.S. economy in specific industrial, agricultural, or service sectors. These
methods include survey methods and statistical, econometric, and simulation analyses. In FY 2009
Commission staff charged 1.0 workyear to activities related to developing and refining technical
analytic models, data collections, and analysis. In particular, Commission personnel continue to
refine and further develop the Commission’s simulation model of the U.S. economy—the U.S. Applied
General Equilibrium (USAGE) model—and its underlying database. These efforts contributed directly
and indirectly to statutory studies such as The Economic Effects of Significant Import Restraints:
Sixth Update, and various technical assistance efforts. During FY 2009 the Commission continued
significant independent research to assess the abilities of its current models to capture accurately
the effects of trade policy changes. The Commission regularly uses contract resources to supplement
in-house resources and keep its modeling capabilities and databases current.
The Commission’s analysts and economists maintain a very high level of knowledge with regard to
their respective portfolios by attending conferences and conducting field work to obtain information
from primary sources. Maintaining a robust research and monitoring capability and developing
expertise in a variety of emerging trade areas ensures that the Commission is able to provide formal
reports to the Congress and the USTR on relatively short notice, thereby meeting increasingly time
sensitive demands of trade policymakers.
The Commission continues to develop expertise in new and existing areas. Areas of development
continue to include the analysis of linkages in goods and services, trade, investment, intellectual
property rights, and labor, with a new focus on energy and the environment. Other areas of ongoing
development include examining the U.S.-China trade relationship and trade-related policies in India,
Brazil, and Mexico. These efforts require the use of highly disaggregated official customs data from
the U.S., Chinese, and Mexican governments. Other developmental efforts include tracking sectoral
and regional effects of trade policy changes and quantifying nontariff measures affecting trade. The
expertise acquired by staff through research activities is used extensively in support of Strategic
Operation Nos. 1, 4, and 5, as well as for Commission reports generated under Strategic Operation
36

No. 3. For example, the Commission is frequently called upon to provide timely assistance to the
legislative and executive branches in the form of staff-to-staff assistance. Commission personnel also
serve as in-house experts on the products subject to various import injury investigations conducted
by the Commission.

Workload Expectations in FY 2010 and 2011
For FY 2010 and 2011 the Commission expects workload levels to return to normal levels, addressing
a wide range of trade-related topics. Examples of investigations currently underway in FY 2010
include requests to:
• examine the probable economic effects of modifications to the U.S. Generalized System of
Preferences, 2009 Review of Additions and Removals;
• assess the competitiveness of small and medium-sized enterprises (three reports);
• monitor textile and apparel imports; and
• examine the economic impacts of the U.S.-Association of Southeast Asian Nations (ASEAN)
Trade and Investment Framework Agreement (TIFA).
The Commission has developed and begun to apply unique capabilities to measure barriers in services
trade and to measure and quantify the trade impacts of nontariff measures. The Commission also
anticipates initiating the building of an extensive database on foreign direct investment and services
trade to complement its already existing expertise in merchandise trade.

Resource Requirements and Workload for Industry and Economic Analysis
In the aggregate, Strategic Operation No. 3 utilized 35.2 percent of the Commission’s resources in
FY 2009 (see Dollar Cost: Comparison by Strategic Operation, p. 65), amounting to $26.5 million (see
Budget Summary by Strategic Operation, p. 66). In terms of direct costs, Strategic Operation No. 3
accounted for $14.3 million in FY 2009, with 94 workyears charged to it. (See Strategic Operation
No. 3: Industry and Economic Analysis Investigations Caseload, p. 40.) The Office of Industries and
the Office of Economics accounted for 73.6 percent of the direct workyears charged to this strategic
Operation in FY 2009, with 47.3 and 21.6 workyears, respectively. (See Workyears by Activity and
Office, p. 67.) Studies produced under Strategic Operation No. 3 are conducted primarily by industry
analysts in the Office of Industries who specialize in areas such as agriculture and forest products,
textiles, electronics, transportation, chemicals, natural resources, and services; and economists in
the Office of Economics with regional or analytical specialties.
As discussed above, during FY 2009 the Commission completed 10 investigations and instituted 9 new
investigations. The Commission projects institution of 15 new investigations in FY 2010 and 16 new
investigations in 2011. (See Strategic Operation No. 3: Industry and Economic Analysis Investigations
Caseload, p. 40.)
As reflected in its Fiscal Year 2010 and 2011 Performance Plans (see attached), the Commission’s
goals are to provide sound research products in an objective and timely manner that contribute to
more informed public debate and improved trade policymaking. The Commission expects to develop
and improve efficient and effective research methods and expand capacity to anticipate and address
new research issues and areas as they emerge. The Commission also will work with its customers
to ensure that they understand the agency’s capabilities and are able to benefit from its expertise.
Finally, the Commission will continue to strengthen its regional economic expertise in China, India,
Brazil, and NAFTA through ongoing analysis of the international trade and investment flows and
impacts in global markets.

Strategic Operation No. 3: Industry and Economic Analysis Resource
Requirements, Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Category of Obligation

FY 2009 Actual
Workyears
Dollars

FY 2010 Estimate
Workyears
Dollars

FY 2011 Estimate
Workyears
Dollars

FY 2010–11 Change
Workyears
Dollars

A. Direct Costs2
Personnel Compensation

$9,501

$9,860

$10,472

$611

Benefits

2,370

2,534

2,720

186

Rent

2,400

2,426

2,443

Travel and Transportation
Subtotal

$14,310

$14,876

$15,701

$825

$5,032

$5,218

$5,524

$307

B. Indirect Costs

Personnel Compensation
Benefits

1,255

1,340

1,433

Rent

1,075

1,088

1,097

Travel and Transportation

142

149

156

Training

191

169

217

Equipment, Equipment Rental, Communication

801

937

1,146

209

Printing, Reproduction, Postage

218

211

213

120

105

-15

Services

3,079

3,720

3,786

Supplies

376

380

386

Land and Structures

Subtotal
Total Resouce Requirements

$12,212

$13,333

$14,064

$731

144

$26,522

144

$28,209

147

$29,765

$1,556

Source: Actual costs derived from the Labor Cost Reporting System and Accounting System. Estimates provided by the Cost Center Managers and Office Directors.

Strategic Operation No. 3: Industry and Economic Analysis Investigations
Caseload1
25

Summary of Industry and Economic Analysis Investigations, FY 2006–2011

Instituted Investigations, FY 2006–2011

Status

FY 2006
actual

FY 2007
actual

FY 2008
actual

Instituted................................................. 12

Active...................................................... 26

Completed.............................................. 14

FY 2009
actual

FY 2010
estimate

FY 2011
estimate

2006

2008

Active† Industry and Economic Analysis Investigations, by month,
for October 2006 through December 2009

2009 2010* 2011*

Completed Investigations, FY 2006–2011

0
2006

* Estimate
1

2007

2008

2009 2010* 2011*
†

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

OND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND

Active during the month

Source: Office of Industries

Includes investigations conducted under section 332 of the Tariff Act of 1930, sections 103, 131, and 163(c) of the Trade Act of 1974 and section 2104 of the Trade Act of 2002.

Strategic Operation No. 4: Tariff and Trade
Information Services
Tariff and trade information services include maintenance and publication of the HTS, preparation of
legislative reports for the Congress, drafting of implementing annexes to trade agreements negotiated
by USTR, maintenance of the online Interactive Tariff and Trade DataWeb (DataWeb), and management
of Commission trade databases. Services also include contributions to the development of the interagency International Trade Data System (ITDS), maintenance of U.S. commitments under Schedule XX
of the General Agreement on Tariffs and Trade/World Trade Organization (GATT/WTO), maintenance
of the electronic version of the U.S. Schedule of Services Commitments under the General Agreement
on Trade in Services (GATS), preparation of the electronic database that supports U.S. submissions
to the WTO Integrated Database, and related information gathering, processing, and dissemination
activities.

Maintenance of the Harmonized Tariff Schedule of the United States
The HTS is a comprehensive list of duties imposed on goods imported into the United States. The
Harmonized Tariff Schedule of the United States Annotated (HTSA) consists of the HTS, its statistical
annotations, and other related information. The HTS is used by Customs to assess duties on imports,
by economists and industry analysts as a statistical tool for tracking imports, and by commercial
firms in planning their import programs. Maintenance of the HTS/HTSA includes several closely
related functions:
• publishing the HTSA, i.e., preparing annual hardcopy versions for printing by the
Government Printing Office, and posting an electronic copy and electronic revisions, as
necessary, on the Commission website in accordance with section 1207 of the Omnibus
Trade and Competitiveness Act of 1988;

• fulfilling the Commission’s responsibilities for statistical annotation of the HTS, in
coordination with Customs and the Bureau of the Census, under section 484 of the Tariff
Act of 1930;
• participating in the work of the Harmonized System Committee, its Review Sub Committee,
and the Scientific Sub Committee of the World Customs Organization in maintaining the
international Harmonized System of tariff nomenclature, as directed by section 1210 of
the 1988 Act (a Commission staff member leads the U.S. Delegation to the Review Sub
Committee); and
• preparing the list of U.S. commitments under Schedule XX of the GATT/WTO (i.e., U.S. tariff
concessions with respect to trade in goods) in the appropriate legal language conforming to
the international Harmonized System of tariff nomenclature.
When amendments or modifications to the HTSA are proclaimed or ordered by the President, enacted
by the Congress, or adopted by the Committee for Statistical Annotation of the Tariff Schedule,
the Commission usually incorporates them into the online PDF version of the HTSA within one or
two working days. Immediate access to the up-to-date HTSA online has proven to be very useful to
Commission personnel, as well as to Customs and the trade community. This utility is enhanced by
the fact that the product is viewable and searchable and is available for downloading by individual
HTSA chapter. During the year the Commission also publishes one or more hardcopy supplements
to the HTSA to reflect any amendments arising during the calendar year. The Commission generally
publishes a hardcopy, midyear supplement to the HTS effective on July 1 of each year, primarily to
reflect the annual GSP review.
In February 2009 the Commission launched the online HTS reference tool. This is a user-friendly
web browser interface for viewing the HTS. The tool includes sophisticated navigation, search, and
thesaurus features, and represents a substantial improvement over the previous online method of
viewing the HTS. The tool includes links to relevant Customs websites, import data, and detailed tariff
information. The reference tool received over three million hits during the first seven months after
launch.

The Commission spent 7.1 workyears on the HTS and nomenclature activities in FY 2009. (See
Workyears by Activity and Office, p. 67.)

Legislative Reports
The House Committee on Ways and Means and the Senate Committee on Finance regularly ask
the Commission for comments on legislation, primarily reports on miscellaneous tariff bills (MTBs).
These reports provide tariff nomenclature and technical drafting assistance and include revenue loss
estimates for the Congressional Budget Office. Commission personnel routinely prepare such draft
reports and information on MTBs in anticipation of Congressional consideration. The Commission
spent 1.3 workyears providing advice on 67 MTBs during FY 2009. (See Workyears by Activity and
Office, p. 67.) In FY 2010 this figure will be much higher, given that over 800 new bills were introduced
in the Senate in October 2009. In the last five years workyears have ranged from a high of 6.4 in
FY 2006 to a low of 1.1 in FY 2007. The extent of resources devoted to this activity in FY 2011 will
depend largely on the number of new MTBs introduced during the 112th Congress, which will begin
in January 2011.

Interactive Tariff and Trade DataWeb
The DataWeb gives government officials, the international trade community, and the general public
direct access to U.S. tariff and trade data. Available via the Internet (http://dataweb.usitc.gov), the
DataWeb is interactive and able to respond rapidly to user defined queries. The system allows both
expert and non-expert users to make and save their own customized country and product data for
future use. The system guides users through the numerous options available in working with tariff
and trade data, allowing them to construct complex statistical queries against hundreds of tables.
DataWeb adds business value by integrating up-to-date international trade transactions with complex
tariff and customs treatment. It also provides information to users regarding the relationship between
the HTS and other classification systems such as Standard Industrial Classification, Standard
International Trade Classification, or North American Industrial Classification System.

System use has grown substantially from its inception in April 1999, more than tripling from 319,000
data reports in FY 2000 to more than 1.1 million data reports in FY 2009 (see Figure 1 below). The
system now has nearly 130,000 registered users. Although use by the general public has shown the
most growth, U.S. Government personnel use the system extensively and account for 15 percent of
the reports generated (see Figure 2 below). The continuation of this public service will ensure that
Federal government entities, foreign government and international organizations, and the general
public will have free access to U.S. trade data.
Figure 1. DataWeb Performance, FY 2005–2009

Figure 2. DataWeb Reports to non-ITC Users, FY 2005–2009

1,200,000

Number of reports

1,000,000

General Public
61%

800,000
600,000
Universities
12%

400,000
200,000
0

2005

2006

2007

2008

2009

Foreign Government and
International Organizations 12%

U.S. Government
15%

Source: Office of the Chief Information Officer.

The Commission estimates the operational and maintenance costs for DataWeb and related trade
data systems at $525,000 and 1.1 workyears in both FY 2010 and 2011. Internal support and
maintenance efforts for DataWeb are supplemented by contractors.

International Trade Data System
Commission personnel participate in a multi-agency initiative to develop a Government-wide system
for the electronic collection, use, and dissemination of international trade and transportation data.
ITDS will provide the means for harmonizing and consolidating all import and export data required
for port clearance into a single data system. It will also provide data needed to support analyses of
trade policy development and trade promotion by government agencies. In addition, as detailed in the
Security and Accountability For Every Port Act of 2006, ITDS will provide the trading public with a
“single window” for reporting foreign trade transactions to the U.S. Government. The system is being
developed in conjunction with the development of the new Automated Commercial Environment at
Customs. The implementation of the online HTS reference tool in February 2009 has improved the
availability of tariff information for import brokers and Customs’ officials in the ports, and is also
available to the trade and general public on the Commission’s website. During FY 2010 or early in FY
2011 the Commission hopes to complete development of new software that will use the XML format of
the HTS reference tool to prepare and publish the HTSA in the future. This will allow the transfer of
key tariff information to and from external databases at Customs and within the Commission.

Resource Requirements for Tariff and Trade Information Services
In the aggregate, Strategic Operation No. 4 utilized 4.8 percent of the Commission’s resources in FY
2009 (see Dollar Cost: Comparison by Strategic Operation, p. 64), amounting to $3.6 million (see Budget
Summary by Strategic Operation, p. 66). In terms of direct costs, Strategic Operation No. 4 accounted
for $1.9 million in FY 2009 with 13 workyears charged to it. (See Strategic Operation No. 4: Tariff
and Trade Information Services Resource Requirements, p. 46.) Providing timely and accurate trade
information services to Commission customers requires coordination and effort across Commission
organization lines. Expertise is provided by personnel from the Offices of Tariff Affairs and Trade
Agreements, Industries, and the OCIO. The Office of Tariff Affairs and Trade Agreements and the
Office of Industries accounted for about 76.6 percent of the direct workyears charged to this strategic
Operation in FY 2009 with 8.1 and 1.7 direct workyears, respectively. (See Workyears by Activity and
Office, p. 67.) In its Fiscal Year 2010 and 2011 Performance Plans (see attached), the Commission has
set goals designed to improve its performance in the provision of tariff and trade information services.
45

Strategic Operation No. 4: Tariff and Trade Information Services Resource
Requirements, Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Category of Obligation

FY 2009 Actual
Workyears
Dollars

FY 2010 Estimate
Workyears
Dollars

FY 2011 Estimate
Workyears
Dollars

FY 2010–11 Change
Workyears
Dollars

A. Direct Costs2
Personnel Compensation

$1,247

$1,303

$1,312

Benefits

311

337

340

Rent

327

331

333

Travel and Transportation
Subtotal

$1,890

$1,979

$1,995

$16

$684

$714

$719

B. Indirect Costs

Personnel Compensation
Benefits

171

185

186

Rent

146

148

150

Travel and Transportation

Training

117

134

167

Equipment, Equipment Rental, Communication
Printing, Reproduction, Postage
Land and Structures

-3

Services

459

564

575

Supplies

Subtotal
Total Resource Requirements

$1,711

$1,886

$1,945

$59

$3,602

$3,864

$3,940

$76

Source: Actual costs derived from the Labor Cost Reporting System and Accounting System. Estimates provided by the Cost Center Managers and Office Directors.

Strategic Operation 5: Trade Policy Support
Trade policy support by the Commission provides trade policymakers with technical expertise,
accurate information, and objective analysis on international trade and competitiveness issues.
The Commission’s capability to provide prompt trade policy support to both the legislative and
executive branches complements and draws on work in other strategic Operations, most notably
Strategic Operation No. 3, Industry and Economic Analysis. Such support includes information and
analysis on current issues related to trade and competitiveness, technical advice on draft legislation,
informal briefings and meetings, temporary details of personnel, and assistance to trade delegations
and negotiating teams. To implement legislation on trade policy decisions that modify the HTS, the
Commission also drafts Presidential proclamations, memoranda, executive orders, and final decisions
by various agencies.
The Commission continually engages in efforts to improve its service to, and support for, trade
policymakers. Over the past several years, these efforts have resulted in an increasing trend in the
number of requests for technical assistance. However, in FY 2009 the Commission provided expertise
on 94 trade policy issues, down significantly from 129 unique issues in 2008. At the same time,
resources committed to this strategic Operation increased by almost 20 percent in FY 2009 after
reaching a seven-year low in FY 2008. These diverging trends for FY 2009 can be attributed to
multiple requests on certain subjects (sometimes from different customers) and completion of several
in-depth, resource intensive products during the year. These large projects, primarily delivered to
USTR, reflect discussions with the Commission’s customers about expanding the scope of assistance
that can be provided through this strategic Operation.
Commission assistance during the past fiscal year, in terms of resources committed, has focused on
providing support related to USTR’s work on the operation of the GSP program, initiatives related to
sub-Saharan Africa and the African Growth and Opportunity Act (AGOA), and analysis of rules of
origin treatment and harmonization. A significant amount of work supported U.S. responsibilities
related to WTO negotiations, panels, notifications, committees, and reviews. Technical assistance
efforts for Congressional customers focused on China’s international trade and economy, the nature
and impact of government policies related to beef trade, and pending FTAs.
47

The Commission anticipates that its trade policy support in FY 2010 and 2011 will continue to
respond to the lines of inquiry in the past fiscal year, with increasing interest in the role of small and
medium businesses in trade, trade and economic issues in African countries, and the interaction
between trade policies and environmental and labor issues. The Commission continues to try to
anticipate policymakers’ needs and develop expertise to meet anticipated requests for assistance.
The Commission also provides trade policy support by detailing personnel with relevant expertise to
USTR and the Commission’s authorizing committees. These details provide Commission staff with
a better understanding of the needs of these primary customers and contribute to closer working
relationships, resulting in more efficient and effective support to trade policymakers in Strategic
Operation Nos. 3, 4, and 5. During FY 2008 and 2009 Commission workload and staffing levels
presented challenges to supplying such full-time assistance. As a result, the Commission reduced
the levels of resources committed to details. To reduce the impact of this reduction, the Commission
initiated several “virtual” details, e.g., employees dedicated part-time to supporting certain USTR
programs from the Commission, allowing them to meet USTR needs while concurrently contributing
to other Commission work.
In FY 2010 and 2011 the Commission anticipates a slight increase in resources dedicated to external
details. This increase is expected to result from increased interest by its oversight committees. In
FY 2010 the Commission anticipates that trade issues will figure more prominently on the legislative
agenda than was the case in FY 2009, resulting in increased requests for assistance and support,
supplied in the forms of details, data, and written products.

Resource Requirements for Trade Policy Support
In the aggregate, Strategic Operation No. 5 utilized 5.4 percent of the Commission’s resources in
FY 2009 (see Dollar Cost: Comparison by Strategic Operation, p. 64), amounting to $4.1 million (see
Budget Summary by Strategic Operation, p. 66). In terms of direct costs, Strategic Operation No. 5
accounted for $2.3 million and 13 workyears in FY 2009. (See Strategic Operation No. 5: Trade Policy
Support Resource Requirements, p. 50.) The Office of Industries and the Office of Economics accounted
for most of the direct workyears charged to this Strategic Operation in FY 2009 with 4.1 and 2.3
direct workyears, respectively. The Office of Tariff Affairs and Trade Agreements and the Office of
External Relations contributed 1.5 and 1.7 workyears to Strategic Operation No. 5, respectively. (See
Workyears by Activity and Office, p. 67.)
As reflected in its Fiscal Year 2010 and 2011 Performance Plans (see attached), the Commission is
working to enhance its performance in the provision of trade policy support. To accomplish this,
the Commission sets goals that relate to: 1) providing enhanced real-time, efficient, and effective
technical information and analysis to support organizations involved in trade policy formulation, and
2) improving the Commission’s communications with its customers to ensure that they understand
the agency’s capabilities and are able to benefit from its expertise.

Strategic Operation No. 5: Trade Policy Support Resource Requirements,
Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Category of Obligation

FY 2009 Actual
Workyears
Dollars

FY 2010 Estimate
Workyears
Dollars

FY 2011 Estimate
Workyears
Dollars

FY 2010–11 Change
Workyears
Dollars

A. Direct Costs 2
Personnel Compensation

$1,576

$1,625

$1,633

Benefits

393

416

418

Rent

340

344

346

Travel and Transportation
Subtotal
B. Indirect Costs

$2,314

$2,392

$2,406

$15

$707

$733

$738

Personnel Compensation
Benefits

176

188

190

Rent

152

154

155

Travel and Transportation

Training

123

139

168

-3

Services

485

576

586

Supplies

Equipment, Equipment Rental, Communication
Printing, Reproduction, Postage
Land and Structures

Subtotal
Total Resource Requirements

$1,788

$1,943

$1,995

$52

$4,102

$4,335

$4,401

$66

Source: Actual costs derived from the Labor Cost Reporting System and Accounting System. Estimates provided by the Cost Center Managers and Office Directors.

Information Technology
The Commission is an information intensive enterprise. Its core competency is the collection, analysis,
dissemination and stewardship of data, information, knowledge, and processes that can be used in
investigations, trade analysis, and other operations. IT applications and systems help the Commission
continue to improve program performance in a cost efficient manner and meet agency and customer
needs in both the short- and long-term. The Commission plans investments in IT systems that will
achieve goals defined in the Information Resource Management Strategic Plan. The Commission has
six high-level IT strategic goals:
• consolidate (in terms of eliminating redundancy) and improve IT services to provide effective
means to achieve business results and improve operational efficiency;
• manage IT expenses and investments from an agencywide perspective;
• incorporate best practices in IT management as appropriate for the Commission’s business
model;
• provide reliable, agile and adaptable services to accommodate the Commission’s evolving
business needs;
• maintain an active security program for information and information systems that protects
Commission activities from unauthorized access or use, thereby ensuring their integrity
and availability; and
• build the IT infrastructure to sustain a productive workforce that has access to information
and services wherever and whenever they are working
During FY 2010 and 2011 the Commission will continue to pursue the Government-wide vision for
improved electronic services to citizens, businesses, and other stakeholders. The Commission strives
to manage change, deliver cost effective and securely configured IT solutions, focus on incrementally

and continuously improving its technology infrastructure, and ensure that Commission personnel are
trained and equipped with the IT tools needed to accomplish its mission. Continued progress requires
full funding of the Commission’s budget request. Federal mandates that require funding include:
• Federal Enterprise Architecture (FEA) implementation,
• Homeland Security Presidential Directive (HSPD)-12 implementation,
• Trusted Internet Connection (TIC), and
• Implementation of the COOP Plan capability.

Major Ongoing Information Technology Initiatives
Information Security and Infrastructure Management
The Commission’s information security program includes protections for national security information,
confidential business information, business proprietary information, privileged information and
personally identifiable information (PII). The Commission’s information security posture continues to
strengthen through the following activities:
• specific, tailored guidance to personnel;
• continual education of the user community regarding the protection of the Commission’s
information in users’ care;
• alerting information infrastructure personnel of cyber threats, to implement countermeasures
in a timely manner, so vulnerabilities are not exploited; and
• updating the user community on computer security threats pertinent to the environment.
Information security at the Commission is managed through risk-based activities, based on OMB
policy and guidance issued by the National Institute of Standards and Technology (NIST).

OCIO information security goals include:
• finalizing the draft Commission COOP Plan documentation and making significant progress
in developing test scenarios and preparing the alternate work site;
• strengthening the Commission’s overall information security posture through continuous
monitoring activities, including the effective use of automated monitoring and logging tools;
• further developing the security awareness and training program to ensure that educational
initiatives are commensurate with individual roles and responsibilities; and
• reviewing, updating, and enhancing the process for Plan of Action and Milestones (POA&M)
review and reporting for each of the Commission’s major information systems.

Electronic Document Information System
EDIS serves as the Commission’s repository for documents on record for investigations and is
considered one of the Commission’s most mission critical information systems. In March 2009 the
OCIO E-Business Division completed the initial phase of an ongoing project to reengineer EDIS. The
existing EDIS software and hardware technologies were outdated and beyond their useful life, leading
to numerous reliability and security issues. Therefore, as a strategic initiative, the EDIS software
was rewritten, and deployed on all new hardware configured with updated operating systems. The
new application meets all Federal security mandates and ensures high performance, reliability, and
functionality for all users of the system.
Because of the scope of this effort, the Commission is reengineering EDIS in phases. The Commission
will continue to develop and implement additional requirements requested by the EDIS user community
in FY 2010. The Commission will schedule software releases on a three-month cycle through FY
2011. Key features include:
• integration of bar code scanners for use during document intake,
• augmenting performance statistics reports,
• automating the generation of motion numbers,
53

• maintaining relationships between motions and their response order, and
• electronic service of documents to authorized external users.

The Enterprise Portal
In FY 2005 the Commission set an ambitious agenda of establishing its Internet website as an enterprise
portal where customers can access the web-based services and information most important to them
through a single Internet location. As this one-stop portal, the Commission’s website incorporates
access to all of its major information systems including EDIS, DataWeb and the new HTS Online
Reference Tool, while also supporting navigation through information pertaining to all of the major
strategic Operations of the Commission. The primary business objective of this approach is to increase
the availability of, and broaden access to, the information and services that the Commission makes
available online to the general public and to Commission employees. A second objective of the portal
is to allow customers to find the information faster and more efficiently. As a result of a total overhaul
to the Commission’s website in FY 2009, public customers as well as Commission personnel benefited
from an updated look-and-feel, improved navigation, and enhanced search functionality. To meet the
needs of disabled users, the updated website incorporates added accessibility features in compliance
with Section 508 of the Rehabilitation Act.

HTS Online Reference Tool
In FY 2009 the Commission completed development and implemented significant improvements to
the online version of the HTS. Improvements to the HTS Online Reference Tool include an enhanced
search capability with an HTS thesaurus, improved user interface, and direct access to the most recent
classification rulings. In conjunction, the OCIO continues to support the Office of Tariff Affairs and
Trade Agreements with maintaining the HTS data through implementation and training on updating
the data in XML format via a XML-specific editor to allow for integrating data changes more efficiently
into the HTS Search technology.

Commission Intranet
In FY 2010 the Commission plans to move forward with an ambitious effort to overhaul its Intranet
site. The existing Intranet site does not employ many of the most current technologies for managing
website content, thus making it difficult to maintain. The Intranet site will be redesigned and
re-implemented to make Commission information more accessible to internal users and to foster
a more collaborative environment for exchanging information relating to Commission activities. It
will allow for more efficient and active management of the content available on the Intranet site.
This approach will also complement and support the Commission’s efforts to implement its records
management program such that disposition schedules can be established and carried out.

Indirect Costs
Indirect costs consist of costs that are not directly attributed to the five strategic Operations in the
Strategic Plan. Most indirect costs are allocated to the five strategic Operations by one of two formulas.
For offices that charge time directly to one or more strategic Operations, administrative costs are
allocated based on the proportion of direct labor charged to each operation by that office. These costs
are referred to as operating administrative costs. For offices that do not charge time to any strategic
Operation, administrative costs are allocated based on the agencywide average allocation. These costs
are referred to as general administrative costs.
General administrative costs include the costs of the Office of Administration, and the subordinate
offices of Finance, Facilities Management, and Human Resources. They also include the costs of
administrative legal advice provided by the OGC and the costs of administrative litigation. General
administrative costs are less than 7 percent of total labor costs.
The Office of the Director of Administration compiles the Commission’s annual budget, prepares the
appropriation and authorization requests, and closely monitors budget execution. The Commission’s
strategic budgeting approach encompasses all phases of the budget development process, including
justifying requests for personnel, services, and IT through linkage to strategic goals. The format of the
Budget Justification continues to parallel the Strategic Plan and addresses the annual Performance
Plan. The Office of the Director of Administration also is responsible for physical and personnel security.
The Office of the Director of Administration is allocated six full-time positions in the Commission’s
Staffing Plan. (See Commission Approved Staffing Plan, p. 69.)
The Office of Finance provides professional financial services that ensure proper stewardship of the
Commission’s resources in carrying out its statutory responsibilities. These services include the
operation of the accounting system (including payroll, obligations, disbursements, reporting, and
travel). The Office of Finance has supporting liaison responsibilities with the Department of Treasury
and other Federal agencies on financial matters. The Office of Finance is allocated six full-time
positions in the Commission’s Staffing Plan. (See Commission Approved Staffing Plan, p. 69.)

The Office of Human Resources facilitates the Commission’s recruitment, training, and human
capital management efforts to align human resource practices more closely with its strategic mission.
Through a contractual agreement with OPM, the Office of Human Resources has obtained technical
expertise in strategic workforce planning, training and development, and organizational development.
In FY 2010 and 2011 the Commission will continue implementing the programs, processes, and
strategies necessary to accomplish the goals and objectives outlined in the Strategic Human Capital
Management Plan. The Office of Human Resources is allocated eight full-time positions in the
Commission’s Staffing Plan. (See Commission Approved Staffing Plan, p. 69.)
The Office of Facilities Management administers building services (including building maintenance,
physical security, mail, and cleaning services), acquires general office equipment and supplies, and
provides procurement services. In FY 2010 and 2011 the Office of Facilities Management plans to
renovate the newly acquired space on the second floor, build an additional courtroom for section 337
proceedings, and make adjustments in currently occupied space once relocation occurs. The Office
of Facilities Management is allocated 10 full-time positions in the Commission’s Staffing Plan. (See
Commission Approved Staffing Plan, p. 69.)
The Office of Equal Employment Opportunity (OEEO) manages the Commission’s affirmative action
program and advises the Chairman and managers on all equal employment opportunity and related
issues. The OEEO will continue its efforts through FY 2010 to acquire automated software to
computerize and streamline office processes in compliance with EEOC MD-715 and the No FEAR
Act. The goal will be to complete the initiative during FY 2011. Implementation will be coordinated
with the Office of Human Resources and OGC. The OEEO continues to ensure that Commission
programs fulfill the letter and intent of laws and regulations that affect hiring and retention of Federal
employees. The OEEO is allocated two full-time positions in the Commission’s Staffing Plan. (See
Commission Approved Staffing Plan, p. 69.)

Office of the Inspector General
The Office of the Inspector General (OIG) provides audit, inspection, and investigative support
services covering all Commission programs and strategic Operations. The mission of the OIG is to
promote and preserve the effectiveness, efficiency, and integrity of the Commission. Activities are
planned and conducted based on requirements of laws and regulations, requests from management
officials, and allegations received from Commission personnel and other sources. The requested level
of resources is necessary to continue ongoing activities and to maintain an appropriate level of audit,
inspection, and investigative services. The operations and accomplishments of the OIG are described
in semiannual reports submitted to the Congress in October and April of each year. The OIG has
requested and is allocated four full-time positions in the Commission’s Staffing Plan, assuming it
is able to obtain independent legal counsel through an inter-agency agreement or private sector
contract. (See Commission Approved Staffing Plan, p. 69.) In addition, the OIG has requested, and will
be allocated, $180,000 for audit and legal services in FY 2010 and $140,000 in FY 2011. For both
fiscal years the OIG has requested, and will be allocated, $12,000 for training, $12,000 to support the
Council of the Inspectors General on Integrity and Efficiency, and $9,000 for travel. Midway through
FY 2011 the OIG will reevaluate its staffing and workload to determine whether additional resources
are needed.

Dollar Cost: Comparison by Object Classification, Fiscal Years 2009, 2010, 2011
FY 2009: $75,356

(Dollar Amounts in Thousands)

1: Personnel Compensation

Other 6.6%
Services 12.0%

2: Benefits
3: Rent
4: Services

Personnel
Compensation
55.5%

5: Other2

Rent: 12.1%

Benefits 13.9%

FY 2010: $82,2853

FY 2011: $87,0003

Other 8.5%

Services 12.5%

Services 13.0%
Personnel
Compensation
52.6%

Other 8.8%

Personnel
Compensation
52.6%

Rent 12.4%

Benefits 13.5%

Rent 12.4%

Benefits 13.7%

Services include IT service contracts and helpdesk support; building maintenance and security; mailroom and general laborers; and consulting services for financial management, economic modeling, human
capital and strategic planning, IT security, and procurement.
2
Other includes supplies, equipment, travel, training, communications and equipment rental, transportation, postage and contractual mail, land and structures, and printing and reproduction.
3
Estimate
1

Source: Actual costs derived from the Accounting System. Estimates based on approved requests.

Budget Formulation by Object Classification, Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
FY 2009 Actual Obligations

FY 2010 Expenditure Plan

FY 2011 Budget Request

Permanent Employees

$39,255

$41,416

$43,710

Temporary Employees

605

550

600

Term Employees

653

800

Total Salaries

$40,513

$42,766

$45,110

Overtime

1,266

500

600

Total Benefits

$10,437

$11,118

$11,864

Total Salaries and Benefits

$52,273

$54,444

$57,644

$9,081

$10,175

$10,875

Awards

Total Rent
CIO Services

$5,570

$6,750

$7,153

Facilities Management Services

1,361

1,550

1,650

Administration Services

1,837

2,175

1,850

EEO Services
IG Services

216

192

152

$9,007

$10,687

$10,835

Supplies

$984

$1,064

$1,115

Equipment

Total Services

1,679

2,725

3,226

Travel

488

553

600

Training

530

472

600

Communications and Equipment Rental

597

700

750

Transportation

177

200

Land and Structures

114

1,000

875

Printing and Reproduction

393

240

250

$4,995

$6,979

$7,646

Total Non-Personnel

$23,083

$27,841

$29,356

Total Obligations

$75,356

$82,285

$87,000

Postage and Contractual Mail

Total Other

Totals may not add up due to rounding.

Source: Accounting System.

Analysis of Change by Object Classification, Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Permanent Employees

FY 2009
Actual Obligations
$39,255

FY 2010
Expenditure Plan
$41,416

FY 2011
Budget Request
$43,710

FY 2010-2011
Change
$2,294

Temporary Employees

605

550

600

9.1%

Term Employees
Total Salaries
Overtime

Percentage
Change
5.5%

653

800

0.0%

$40,513

$42,766

$45,110

$2,344

5.5%

16.7%

1,266

500

600

100

20.0%

Total Benefits

$10,437

$11,118

$11,864

$746

6.7%

Total Salaries and Benefits

$52,273

$54,444

$57,644

$3,200

5.9%

$9,081

$10,175

$10,875

$700

6.9%

Awards

Total Rent
CIO Services

$5,570

$6,750

$7,153

$403

6.0%

Facilities Management Services

1,361

1,550

1,650

100

6.5%

Administration Services

1,837

2,175

1,850

(325)

-14.9%

50.0%

216

192

152

(40)

-20.8%

EEO Services
IG Services

$9,007

$10,687

$10,835

$148

1.4%

Supplies

Total Services

$984

$1,064

$1,115

$51

4.8%

Equipment

1,679

2,725

3,226

501

18.4%

Travel

488

553

600

8.5%

Training

530

472

600

128

27.1%

Communications and Equipment Rental

597

700

750

7.1%
20.0%

Transportation

Postage and Contractual Mail

177

200

0.0%

Land and Structures

114

1,000

875

(125)

-12.5%

Printing and Reproduction

393

240

250

4.2%

$4,995

$6,979

$7,646

$667

9.6%

Total Non-Personnel Costs

$23,083

$27,841

$29,356

$1,515

5.4%

Total Obligations

$75,356

$82,285

$87,000

$4,715

5.7%

Total Other

Totals may not add up due to rounding.
Source: Accounting System.
1

Summary of Increases/Decreases Presented in Analysis of Change
(Fiscal Years 2010 and 2011)
(Dollar Amounts in Thousands)

Personnel Cost Change

Permanent Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +2,294
Salaries will increase by 5.5 percent based on a projected Federal pay raise, normal
cost of promotions and within–grade increases, and ongoing recruitment efforts to fill
vacancies in key areas.

Temporary Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +50
Costs for temporary employees will increase marginally.

Overtime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +10
Overtime costs will increase marginally.

Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +100
Awards costs will increase marginally.

Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +746
Since retirement benefits are incurred as a percentage of salary, as salary costs increase,
retirement benefits costs increase. In addition, benefits costs increase at a higher rate
than compensation due to rising health insurance costs and the shifting demographics
of the workforce. This shift results in an increased percentage of Commission employees
covered by the Federal Employees Retirement System. Those benefits are almost triple
the cost of Civil Service Retirement System benefits to the Commission.

Net Personnel Cost Changes

+3,200

(Dollar Amounts in Thousands)

Non–Personnel Cost Changes

Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +700
Rent costs will increase by 6.9 percent to cover a full year’s rent for the Commission’s
newly-acquired space on the second floor.

Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +148
Services costs will increase marginally by 1.4 percent.

Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +51
Supplies costs will increase marginally.

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +501
Equipment costs will increase by 18.6 percent to cover the costs of upgrades and
replacement of critical IT infrastructure as well as implementation of phase 1 of the
Continuity of Operations Plan.

Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +47
Travel costs will increase marginally.

Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +128
Training costs will increase by 27.1 percent to support training initiatives resulting from
the OPM audit.

Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +50
Communications costs will increase marginally to support increased use of wireless
technology.

Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +5
Transportation costs will increase marginally.

Land and Structures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -125
Land and structures costs will decrease by 12.5 percent due to completion of major
renovations associated with the second floor in FY 2010.

Printing and Reproduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +10
Printing and Reproduction costs will increase marginally.

Net Non–Personnel Cost Changes

+1,515

Total Adjustment to Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +4,715
63

Dollar Cost: Comparison by Strategic Operation, Fiscal Years 2009, 2010, 2011
FY 2009: $75,356

(Dollar Amounts in Thousands)

Operation 5: 5.4%
Operation 4: 4.8%

Operation 1:
28.6%

Strategic Operation No. 1: Import Injury Investigations
Strategic Operation No. 2: Intellectual Property-Based
Import Investigations
Strategic Operation No. 3: Industry and Economic Analysis

Operation 3:
35.2%

Strategic Operation No. 4: Tariff and Trade Information Services
Strategic Operation No. 5: Trade Policy Support

FY 2010: $82,2851
Operation 1:
27.7%

Operation 2:
26.0%

FY 2011: $87,0001

Operation 5: 5.3%
Operation 4: 4.7%

Operation 1:
27.4%

Operation 5: 5.1%
Operation 4: 4.5%

Operation 3:
34.3%

Operation 3:
34.2%

Operation 2:
28.0%

Operation 2:
28.8%

Estimate

Source: Actual Costs derived from the Labor Cost Reporting System and the Accounting System. Estimates provided by Cost Center Managers and Office Directors.

Workyears: Comparison by Strategic Operation, Fiscal Years 2009, 2010, 2011
FY 2009: 388 FTE

Operation 5: 5.1%
Operation 4: 5.1%

Operation 1:
27.9%

Strategic Operation No. 1: Import Injury Investigations
Strategic Operation No. 2: Intellectual Property-Based
Import Investigations

Operation 3:
37.1%

Strategic Operation No. 3: Industry and Economic Analysis
Strategic Operation No. 4: Tariff and Trade Information Services
Strategic Operation No. 5: Trade Policy Support
Operation 2:
24.8%

FY 2010: 3941
Operation 1:
27.7%

FY 2011: 4021

Operation 5: 5.1%
Operation 4: 5.8%

Operation 5: 5.0%

Operation 1:
27.6%

Operation 3:
36.5%

Operation 3:
36.6%

Operation 2:
25.1%

Operation 2:
24.9%

Operation 4: 5.7%

Estimate

Source: Actual Costs derived from the Labor Cost Reporting System and the Accounting System. Estimates provided by Cost Center Managers and Office Directors.

Budget Summary by Strategic Operation, Fiscal Years 2009, 2010, 2011
(Dollar Amounts in Thousands)1
Operation

FY 2009 Actual
Workyears
Dollars

FY 2010 Estimate
Workyears
Dollars

FY 2011 Estimate
Workyears
Dollars

FY 2010–11 Change
Workyears
Dollars

A. Direct Costs2
1: Import Injury Investigations

$12,510

$12,963

$13,768

$805

2: Intellectual Property-Based Import Investigations

11,007

12,181

13,478

1,297

3: Industry and Economic Analysis

14,310

14,876

15,701

825

4: Tariff and Trade Information Services

1,890

1,979

1,995

5: Trade Policy Support

2,314

2,392

2,406

257

$42,032

264

$44,390

270

$47,348

$2,958

1: Import Injury Investigations

$9,012

$9,821

$10,062

$241

2: Intellectual Property-Based Import Investigations

8,600

10,911

11,586

675

3: Industry and Economic Analysis

12,212

13,333

14,064

731

1,711

1,886

1,945

7
131

1,788
$33,324

7
130

1,943
$37,894

7
132

1,995
$39,652

0
2

52
$1,757

108

$21,523

109

$22,784

111

$23,830

$1,046

Subtotal
B. Indirect Costs3

4: Tariff and Trade Information Services
5: Trade Policy Support
Subtotal
C. Total Costs
1: Import Injury Investigations
2: Intellectual Property-Based Import Investigations
3: Industry and Economic Analysis
4: Tariff and Trade Information Services
5: Trade Policy Support

Total

19,607

23,092

101

25,064

1,972

144

26,522

144

28,209

147

29,765

1,556

3,602

3,864

3,940

4,102

4,335

4,401

388

$75,356

394

$82,285

402

$87,000

$4,715

Totals may not add up due to rounding.
Direct costs include personnel costs directly attributed to the five strategic Operations including the Commissioners and Information Technology Services, as well as space rental and travel charged directly
to the five strategic Operations in the Commissioner’s Strategic Plan.
3
Indirect Costs include personnel costs such as OEEO and general administration support services. Indirect costs also include virtually all non-personnel costs such as contractual services, supplies, and
equipment, as well as rent, travel and training, labor, union, and OSHA. Most indirect costs are allocated to operations according to the percentage of total costs directly charged to each operation.
1
2

Source: Actual Costs derived from the Labor Cost Reporting System and the Accounting System. Estimates provided by Cost Center Managers and Office Directors.

Workyears by Activity and Office, Fiscal Year 2009
Office/Division
Operation 1: Import Injury Investigations
Title VII Investigations
Sunset Investigations
Other Investigations
Litigation
Operational Support1
Executive Direction
Operation 2: Intellectual Property-Based
Investigations
Section 337 Investigations
Section 337 Litigation
Operational Support1
Executive Direction
Operation 3: Industry and Economic
Analysis
Statutory Investigations
Other Industry and Economic Analysis
Operational Support1
Executive Direction
Operation 4: Tariff and Trade Information
Services
Harmonized Tariff Schedule
Legislative Reports
Trade Database Management
Operational Support1
Executive Direction
Operation 5: Trade Policy Support
Technical Assistance to Congress
Technical Assistance to Executive
Operational Support1
Executive Direction
Leave/ Holidays
Administrative Overhead
Total2

COMM

15.8

0.2

IG
0.0

0.2

ALJ

EEO

0.0

10.8
3.5
1.4
0.1
4.8
1.0

2.7
1.6
1.1

11.1

0.6

17.7

6.8
4.3
0.1

0.6

17.7

0.4

0.1

0.4

0.1

OP
0.0

INV
19.6
13.1
5.0
0.8

OUII
0.0

0.7

TATA

8.2
5.3
2.1
0.4
0.1
0.3

0.2
0.1

0.0

0.1

CIO

5.2
2.8
1.7
0.3

11.9
2.1
0.5

0.4

9.3

0.0

9.5

74.6
28.5
11.8
1.8
4.8
11.9
15.8

0.0

62.8

15.8
3.9

0.3

0.0

0.3

0.0

19.7
19.2
0.5

44.2
4.3
10.4
3.9

9.5

3.9
5.3

0.0

6.7

0.9

0.7
1.7
4.3

0.5
0.4

0.0

0.1

0.0

21.6

0.1

47.3

11.3

8.9
11.8
0.9

0.1

21.6
21.6
4.0

0.4
0.2
10.7

0.0

8.1

1.7

2.1

6.3
1.0
0.8

0.7
0.3
0.3
0.4

2.3
0.2
0.5
1.6

1.5
0.2
1.2
0.1

4.1
0.2
2.5
1.3

1.7

7.9
7.5
47.6

2.7
0.5
13.1

15.1
11.4
84.7

6.4
1.1
44.0

0.0

0.1

0.0

0.1
0.1
0.8
0.5

0.5
1.8
0.0
28.2

1.7
0.9
0.8
0.1

0.0

1.0
1.8
5.2

0.2
1.3
1.5

0.5
0.2
0.2
0.1

0.0

8.6
6.0
37.6

1.0
2.6
7.0

0.0

0.6

0.0

0.6

Operational support includes all activity codes not listed above, to include direct IT support.
Totals may not add up due to rounding.
Source: Actual costs derived from the Labor Cost Reporting System.

3.2
1.1
22.0

1
2

0.5
1.7
2.1

2.7
3.1
12.5

5.7
4.5
31.4

4.0
0.8
24.5

93.6
32.6
35.8
19.9
5.3

5.3
0.8

TOTAL

0.0

0.8
1.3
0.0

1.7
5.1
22.9
28.0

12.8
7.1
1.3
1.1
2.5
0.8
13.0
1.8
5.3
5.9
0.5
65.8
66.4
388.0

Fiscal Year 2010 U.S. International Trade Commission Organization
Chairman
COMMISSION

Office of the
Administrative
Law Judges

Office of the
Director of
Operations

Office of the
General
Counsel

Office of
Economics

Office of
Industries

Office of
Investigations

Office of
Tariff Affairs
and Trade
Agreements

Office of
Unfair Import
Investigations

Office of
External
Relations

Chief
Information
Officer

Office of
Information
Technology
Services

Office of the
Director of
Administration

Office of
Human
Resources

Office of the
Secretary

Office of Equal
Employment
Opportunity

Office of
Facilities
Management

Office of
Finance

Office of the
Inspector
General

Commission Approved Staffing Plan, Fiscal Years 2009, 2010, 2011
FY 2009

Office
Commissioners’ Offices
Administrative Law Judges
External Relations
General Counsel
Inspector General
Equal Employment Opportunity
Secretary
Subtotal Independent Offices
Operations, Director
Analysis and Research Services1
Investigations
Unfair Import Investigations
Economics
Tariff Affairs and Trade Agreements
Industries
Subtotal Operations
Chief Information Officer
Information Technology Services
Enterprise Security Management2
Subtotal Chief Information Officer
Administration, Director
Facilities Management3
Human Resources
Finance
Procurement3
Dockets2
Subtotal Administration
Commission Total

Perm.

31
16
5
43
4
2
7
108
15
37
21
45
14
100
232
5
20
6
31
5
7
7
5
4
9

37
408

Term

FY 2010
Total

4
1

1
3

4
4
4
1

1
14

Perm.

31
20
5
44
4
2
7
113
15

31
18
5
43
4
2
7
110
5
12
35
21
38
14
91
216
5
21
6
32
6
6
8
6
4
12
42

38
21
48
14
100
236
5
24
6
35
6
7
7
5
4
9

38
422

Reorganization pending. Positions currently in Operations, Investigation and Economics.

Reorganization pending. Positions currently in OCIO.

Reorganization pending. Procurement currently part of Facilities Management.

400

FY 2011

Term

Total
4

6
1
1
2

2
2

31
22
5
43
4
2
7
114
5
12
35
21
44
14
91
222
5
22
7
34
6
6
8
6
4
14
44

414

Perm.

31
18
5
43
4
2
7
110
5
12
35
21
38
14
91
216
5
21
6
32
6
6
8
6
4
12
42

400

Term

Total
4

6
1
1
2

2
2

31
22
5
43
4
2
7
114
5
12
35
21
44
14
91
222
5
22
7
34
6
6
8
6
4
14
44

414

Total Labor Cost/Workyears by Office, Fiscal Year 2009
(Dollar Amounts in Thousands)

FTE on Board by Grade (as of 9/30/2009)
EX
FY 2009 Actual

SES
Office
Commissioners’ Offices
Administrative Law Judges
External Relations
General Counsel
Inspector General
Equal Employment Opportunity
Secretary
Operations, Director
Investigations
Unfair Import Investigations
Economics
Tariff Affairs and Trade Agreements
Industries
Chief Information Officer
Administration
Commission Total

ALJ
GS15
GS14
GS13
GS12
GS11
GS10
GS9
GS8
GS7

Workyears2
27.3
21.1
5.0
39.4
1.5
2.1
6.7
12.0
31.1
23.6
45.3
13.1
84.7
41.1
28.6
382.8

Salaries and
Benefits3
$4,648.6
2,841.9
847.0
6,143.9
229.6
259.1
779.6
1,422.5
4,283.7
4,148.2
6,190.5
1,727.6
10,835.6
4,826.3
3,089.0
$52,273.1

The Commission FY 2009 Approved Staffing Plan includes permanent (408) and term (14) positions.

Total workyears includes overtime, but excludes temporary employees.

Salaries and Benefits total does not include workers’ compensation or commuter subsidy costs.

GS6
0

Commission
Staffing Plan1
31
20
5
44
4
2
7
15
38
21
48
14
100
44
29
422

100
Source: Labor Cost Reporting System.

Average Cost
Salaries and Benefits
$170.4
134.7
168.0
156.0
148.4
120.6
116.0
118.1
137.5
176.0
136.6
132.3
128.0
117.4
108.1
$136.6

United States International Trade Commission
Fiscal Year 2010 and 2011 Performance Plans
The following presents the elements of the Commission’s final Performance Plan for fiscal year (FY)
2010 and the initial Plan for FY 2011 that are not addressed in the body of the agency’s Budget
Justification. Together, the justification and the plans form the Commission’s Performance Budget.
The Commission’s performance planning is carried out in accordance with the provisions of the
Government Performance and Results Act (GPRA or Results Act). The Plans are based on the seventh
edition of the agency’s Strategic Plan, which was issued in September 2009.

Mission statement
The mission of the U.S. International Trade Commission (Commission) is to: (1) administer U.S.
trade remedy laws within its mandate in a fair and objective manner; (2) provide the President,
the United States Trade Representative (USTR), and Congress with independent, quality analysis,
information, and support on matters relating to tariffs and international trade and competitiveness;
and (3) maintain the Harmonized Tariff Schedule of the United States.
In so doing, the Commission serves the public by implementing U.S. law and contributing to the
development of sound and informed U.S. trade policy.

Introduction
The Commission has one program activity set forth in the Budget of the United States, but has,
for the purposes of its Strategic Plan and Performance Budget, divided the agency’s functions into
five strategic Operations: (1) import injury investigations, (2) intellectual property related import
investigations, (3) industry and economic analysis, (4) tariff and trade information services, and (5)
trade policy support. The organization of the Budget along operational lines shows how the agency’s
goals relate to the costs of achieving targeted levels of performance. The Performance Plan portion
71

of the Budget sets out what the agency intends to accomplish in the coming years by establishing
goals to define the level of performance to be achieved by each strategic Operation in FY 2010 and
2011. The Commission has determined that the goals set in the Performance Plans are appropriate
and reasonable. As encouraged by the Results Act, the Commission has sought to express those
performance goals in an objective, quantifiable, and measurable form. To the extent practicable,
the Commission has established outcome-oriented goals. Output-oriented goals appear in the Plans
only if they constitute relevant and significant measures of performance. The Performance Plans
reproduce the strategic and performance goals that are set out in the Commission’s Strategic Plan,
as revised, and establish FY 2010 and 2011 annual goals corresponding to each performance goal.
For the purposes of the Results Act, each annual goal serves both as a performance goal to define
the level of performance to be achieved, and a performance indicator to measure outputs, service
levels, and outcomes. For each annual goal, the staff offices responsible for measurement are noted
in parentheses.
Consistent with the E-Government Act of 2002, the Plans include performance measures that
demonstrate how electronic government enables progress toward agency objectives, goals, and
mandates. The Plans also discuss the agency’s performance during FY 2005, 2006, 2007, 2008, and
2009. The Budget Justification describes, with respect to each strategic Operation, the operational
processes, skills and technology, and the human, capital, information, or other resources required to
meet the performance goals.
The Commission performs an annual verification and validation of measured values. For each
strategic Operation, a senior agency manager serves as Operation Coordinator. Among the duties of
the Operation Coordinators is the responsibility to coordinate that verification and validation, under
the general oversight of the Strategic Planning Committee. That process involves review of the logs
and reports generated by staff offices to monitor annual goal achievement, and such other procedures
as the Operation Coordinators determine to implement, including the use of existing record keeping
processes, and automated systems such as the Electronic Document Information System (EDIS). The
Commission plans to develop written procedures on how verification and validation are conducted so
as to reflect agency practice.

The Commission made progress in FY 2005, 2006, 2007, 2008, and 2009 toward the achievement of
the goals set out in the Performance Plans for those periods. The Operation Coordinators developed
a variety of customer surveys and logs to measure the agency’s success at meeting those goals. The
Commission issued an FY 2009 Performance and Accountability Report in November 2009.

The Strategic Plan
In September 2009, the Commission issued the seventh edition of its Strategic Plan. As noted above,
these Performance Plans are based on that edition. The current Strategic Plan covers the period FY
2009–14, and has been updated and enhanced on the basis of the Commission’s past experience in
strategic planning.

Guide to abbreviations used in the Plans
Abbreviations

Meanings

ACE
AD
ALJ
APO
Blue Book
CVD
EDIS
EC
ER
GC
HR
HTS
ID
IND
INV
ITS
NTM
OAD
OMB
OP
OUII
Red Book
SE
TATA
TEO
URAA
USTR
WCO
WTO

Automated Commercial Environment
Antidumping
Administrative Law Judge
Administrative protective order
Antidumping and Countervailing Duty Handbook
Countervailing duty
Electronic Document Information System
Office of Economics
Office of External Relations
Office of the General Counsel
Office of Human Resources
Harmonized Tariff Schedule of the United States
Initial determination by an ALJ
Office of Industries
Office of Investigations
Information Technology Services
Non–tariff measure
Office of Administration
Office of Management and Budget
Office of Operations
Office of Unfair Import Investigations
An Introduction to Administrative Protective Order Practice in Import Injury Investigations
Office of the Secretary
Office of Tariff Affairs and Trade Agreements
Temporary exclusion order
Uruguay Round Agreements Act
United States Trade Representative
World Customs Organization
World Trade Organization

STRATEGIC OPERATION NO. 1: Import Injury Investigations
In FY 2010 and 2011, the Commission will seek to improve its performance in conducting import injury
investigations by increasing public access to information about the process. The Commission will also
monitor and, if necessary, modify its procedures to ensure that they continue to be fair and properly
implemented, and will continue to complete proceedings on time. To those ends, the Commission
plans to update informational materials and, as appropriate, develop new ones, seek feedback from
participants and promptly provide them with investigative data, perform internal reviews of draft
investigation and litigation documents, meet deadlines, and undertake regular reviews and assessments
of the import injury program or its components to identify areas for potential improvement. External
factors affecting performance within Strategic Operation No. 1 include industry decisions on whether
to file cases, Commerce Department determinations, judicial and panel reviews, and changes in
legislation. The Commission will continue to consult as necessary with the Department of Commerce
on the two agencies’ distinct roles in the antidumping and countervailing duty investigative process.

Strategic Goal
The Commission’s strategic goal in conducting import injury investigations is to support a rules-based
international trading system by producing high-quality and timely import injury determinations
based on the following:
• an effective exchange of information between the Commission and interested parties,
• an appropriate investigative record, and
• transparent, fair, and equitably-implemented procedures.

Performance and Annual Goals
Performance Goal No. 1: Improve the quality and efficiency of the investigative process by conducting
internal reviews, including review of draft investigation and litigation documents.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Achieve 80 % positive Commissioner comments on sufficiency of the
information in the record (INV/GC).

a. Achieve 85 % positive Commissioner comments on sufficiency of
the information in the record (INV/GC).

b. Ensure that staff reports, legal issues memoranda, opinions, and
briefs are produced with review by and input from all appropriate
investigative team members (INV/GC).

Performance Goal No. 2: Meet statutory, court, and administrative deadlines.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Submit all reports, determinations, memoranda, draft opinions, and
briefs on time (INV/GC).

a. Submit all reports, determinations, memoranda, draft opinions,
and briefs on time (INV/GC).

Performance Goal No. 3: Improve the development of investigative records.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Make progress on improving methods of gathering and processing
investigative data, taking into account results of biannual survey of
investigation participants regarding investigative procedures (INV/
ITS).

a. Make progress on improving methods of gathering and
processing investigative data (INV/ITS).

Performance Goal No. 4: Improve the scope, quality, and transparency of information regarding
investigations, both to investigative participants and the public.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Achieve 1 point improvement over FY 2009 level of satisfaction
reported by users of ITC import injury Web pages (ITS).

a. Achieve 1 point improvement over FY 2010 level of satisfaction
reported by users of ITC import injury Web pages (ITS).

b. Make available 75 % of documents filed on EDIS within 24 hours, and
85 % within 48 hours (OAD).

b. Make available 80 % of documents filed on EDIS within 24
hours, and 90 % within 48 hours (OAD).

Note: In annual goals, the offices shown in parentheses are the staff offices responsible for measurement.

The Commission will employ the following strategies to contribute to the fulfillment of its goals.
1. Effectively allocate and enhance human resources.
2. Continually assess and adapt new technologies and revise business processes as needed.
3. Review programs and procedures in light of changing needs of investigation participants and
technological developments.

Performance
During FY 2005, 2006, 2007, 2008, and 2009 the Commission generally met the performance goals
of its Performance Plans:
-- In FY 2005, the Commission enhanced the design and content of its Web site, providing a
separate page for each active and recently completed import injury investigation, showing key
dates of interest to the public, contact information for assigned staff, and links to all relevant
Commission and Commerce notices, questionnaires, transcripts, service lists, news releases,
and public reports, available for downloading and printing. Also added were information pages
on the major types of import injury investigations and the Byrd Amendment, and links to
resources such as relevant sections of trade statutes, the Commission’s Rules of Practice and
Procedure, statutory timetables, historical import injury case statistics, Commerce’s Import
Administration, the Sunset Reviews Web site, outstanding AD/CVD orders, ITC publications
on import injury cases, EDIS, the Antidumping and Countervailing Duty Handbook (the
77

Blue Book), and An Introduction to Administrative Protective Order Practice in Import Injury
Investigations (the Red Book). The Commission also released an enhanced search tool for EDIS
in FY 2005. This tool provided improved access to public documents, including multiple search
options, faster retrieval, and more user–friendly results. In addition, the Commission updated
the Blue Book; conducted appropriate internal review of draft documents, including opinions;
and issued all determinations and related documents on time.
-- In FY 2006, pursuant to comments submitted by the trade bar in connection with its fourth
user survey, the Commission reviewed procedures related to the issuance of questionnaires
and access to documents on EDIS and took steps toward process improvements in those
areas. The Commission conducted appropriate internal review of draft documents, including
opinions; and issued all determinations and related documents on time. Semi-annual reviews
were conducted related to the content of the import injury Web pages, and a baseline was
established for the level of satisfaction reported by users of those pages. System modifications
to EDIS were implemented to allow for the electronic acceptance of confidential documents.
-- In FY 2007, pursuant to comments submitted by the trade bar in connection with its fourth
user survey, the Commission began on a regular basis to issue import injury questionnaires in
MS Word format for ease of use by responding parties. The Commission created templates of
questionnaires in MS Word using form fields so that respondents could enter data into those
fields electronically and staff could block-copy data into spreadsheets and other formats, thereby
reducing data entry errors. The Commission updated the Blue Book; conducted appropriate
internal review of draft documents, including opinions; and issued all determinations and
related documents on time. Semi-annual reviews were conducted related to the content of the
import injury Web pages, and significant enhancements were made to the design and content
of those pages.
-- In FY 2008, the Commission published a notice in the Federal Register seeking comments
on proposed changes to the conduct of five-year reviews, specifically shortening the period
available to interested parties to respond to questions in the notice of institution, seeking
additional information from interested parties through the notice of institution and, in certain
circumstances, seeking information from purchasers during the adequacy phase of five-year
reviews. In addition, the Commission conducted appropriate internal review of draft documents,
including opinions; and issued all determinations and related documents on time. Semi-annual
reviews were conducted related to the content of the import injury Web pages, and significant
enhancements were made to the design and content of those pages. The Blue Book will be
78

updated in FY 2009. The Commission began using a content management system to allow
appropriate staff to easily and efficiently manage Web page content. In particular, content
management workflows were implemented allowing import injury investigation documents and
related information to be regularly posted to the import injury Web pages in order to keep
content up-to-date. Finally, the Commission released a new EDIS Coding Manual to all users
of EDIS to define more clearly the guidelines for describing the documents being submitted,
thus reducing the number of errors associated with document submissions.
-- In FY 2009, the Commission accomplished the following—
• The Commission performed an in-depth internal review of its practices and procedures
with regard to import injury investigations. Changes to standard questionnaire templates
and report structures were made to enhance the quality of the reports and to expand data
collection efforts on issues raised in recent court determinations.
• Pursuant to an examination of potential changes with regard to conducting five-year
reviews, the Commission began to collect additional information from interested parties
through the notice of institution and from purchasers through questionnaires. This
enhancement provides the Commission with an improved record upon which to make
adequacy determinations.
• With respect to safeguards, the Commission completed the first investigation since 2005
conducted under section 421 of the Trade Act of 1974, concerning Certain Passenger Vehicle
and Light Truck Tires from China.
• A re-engineered version of EDIS was released at the end of first quarter of calendar year
2009. The new hardware architecture and an updated software suite, which is more user
friendly and maintainable, have improved the overall performance of the system and will
benefit both the Commission and outside parties.
• A new public Web site was deployed during the year with the goal of improving the ease
of use and navigation; the Commission will continue to monitor the level of satisfaction
reported by users of the ITC import injury Web page as more users experience the new Web
page.
• The Commission has furthered its efforts in the area of improving the ease of responding to
questionnaires, as all questionnaires for import injury investigations are issued in MS Word
format. The agency allows responding firms to electronically enter the data and return the
questionnaires via email if they desire. Such electronic submissions result in processing

efficiencies for the Commission by reducing data entry. While firms have not utilized this
capability as much as anticipated, the Commission will continue to gauge how best to
gather data to reduce the burden on outside parties and to increase efficiency internally.
• The Commission made improvements with regard to internal document exchange (in
particular the process of using scanned questionnaires) which greatly reduced the internal
flow of paper. In addition, the Commission expanded its practice of releasing data under
APO though the use of CDs, which resulted in a significant reduction in paper volume.
• The Commission reviewed the Blue Book and made updates where appropriate; conducted
appropriate internal review of draft documents, including opinions; and issued all
determinations and related documents on time.

STRATEGIC OPERATION NO. 2: Intellectual Property–Based Import
Investigations
The Commission plans to undertake activities during FY 2010 and 2011 to measure and enhance
performance with respect to three central concerns in the Section 337 area: the expeditious completion
of proceedings, the effectiveness of the agency’s orders, and the provision of information to the public
about the section 337 process. The Commission will collect and analyze data regarding the length
of investigations and ancillary proceedings and the Commission’s compliance with key statutory
and administrative deadlines. The Commission will also ensure that new filings are entered into
EDIS in a timely manner and that additional types of information are made available to the public.
During FY 2000, the agency surveyed complainants who obtained exclusion orders regarding whether
imports subject to exclusion had stopped and then developed recommendations in light of survey
results. This survey was repeated in late FY 2005 in order to obtain further feedback from the public,
and during 2006 a Commission working group compiled and analyzed the responses, and a goal
providing for semiannual meetings with members of the Intellectual Property Rights (IPR) Branch of
U.S. Customs and Border Protection (Customs) was added to the Commission’s Performance Plan
to facilitate communications between Commission and Customs personnel regarding enforcement
of Section 337 remedial orders. The Commission plans to conduct a similar survey during FY 2010
to obtain current feedback from the public regarding the enforcement of exclusion orders. External
factors affecting performance of this function include the size and complexity of the Section 337
docket, which is dependent on the decisions of businesses to file cases; judicial review; legislative
changes; and Customs enforcement of exclusion orders.

Strategic Goal
The Commission’s strategic goal is to conduct intellectual property-based import investigations in an
expeditious, technically sound, and transparent manner, and provide for effective relief when relief
is warranted, to support a rules-based international trading system.

Performance and Annual Goals
Performance Goal No. 1: Meet statutory and key administrative and court deadlines, conclude Section
337 investigations expeditiously, and reduce the average time to conclude ancillary proceedings.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Institute investigations; set target dates; file TEO and final IDs, TEO
and final determinations, and court briefs on time (OUII/GC).

a. Institute investigations; set target dates; file TEO and final IDs,
TEO and final determinations, and court briefs on time (OUII/
GC).

b. Conclude investigations into alleged section 337 violations within
time frames that are consistent with the URAA (OUII/GC).

c. Ensure that the average length of ancillary proceedings is:
(1) modification – 6 mos.
(2) advisory – 12 mos.
(3) enforcement – 12 mos.
(4) consolidated ancillaries – 15 mos. (OUII/GC).

Performance Goal No. 2: Improve the scope, quality, and transparency of information regarding
investigations provided both to investigative participants and the public.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Achieve 1 point improvement over FY 2009 level of satisfaction
reported by users of ITC intellectual property infringement Web pages
(ITS).

a. Achieve 1 point improvement over FY 2010 level of satisfaction
reported by users of ITC intellectual property infringement Web
pages (ITS).

b. Make available 75 % of documents filed on EDIS within 24 hours, and
85 % within 48 hours (OAD).

b. Make available 80 % of documents filed on EDIS within 24
hours, and 90 % within 48 hours (OAD).

Performance Goal No. 3: Actively facilitate enforcement of exclusion orders.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Issue seizure and forfeiture orders approximately 60 days after receipt
of notification letters from Customs (GC).

a. Issue seizure and forfeiture orders approximately 60 days after
receipt of notification letters from Customs (GC).

b. Provide scheduling information regarding section 337 proceedings to
Customs on a quarterly basis (OUII/GC).

b. Provide scheduling information regarding section 337
proceedings to Customs on a quarterly basis (OUII/GC).

c. Conduct a survey regarding the effectiveness of outstanding exclusion
orders (OUII).

c. Formulate recommendations regarding enforcement in view of
survey results and implement any such recommendations adopted
by the Commission (OUII).

Performance Goal No. 4: Improve the Commission’s physical and information infrastructure in order
to meet the demand and requirements for expeditious adjudication of often-complex intellectual
property disputes.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Acquire additional space for conferences and hearings (SE/OAD).

a. Complete renovations to adapt additional space for conferences
and hearings (SE/OAD).

Note: In annual goals, the offices shown in parentheses are the staff offices responsible for measurement.

Performance
During FY 2005, 2006, 2007, 2008, and 2009 the Commission generally met the performance goals
of its Performance Plans:
83

-- During FY 2005, the Section 337 workload increased, with the number of matters active during
the year more than 25 percent above that of FY 2004. The Commission continued to meet
deadlines and issue virtually all documents on time. During the year, the Commission did not
meet its goals regarding electronic access to filed documents and determined that organizational
realignment of the Office of the Chief Information Officer and continued system enhancements
to EDIS were necessary. The Commission completed a reorganization of the Office of the Chief
Information Officer, whereby the dockets function, formerly a service maintained by Office of
the Secretary, became the Docket Division of the Office of Information Technology Services.
The intent of this realignment was to accelerate the transformation of the docket function
to a predominantly electronic service. System modifications were implemented to enhance
access to public documents, including faster retrieval, and more user–friendly search results.
The Commission sent out survey questionnaires regarding the effectiveness of outstanding
exclusion orders in the last quarter of FY 2005.
-- During FY 2006, the Section 337 caseload continued to climb, with new matters increasing by
nearly 40 percent as compared to the prior year and the total number of matters active during
the course of the year increasing by more than 20 percent. Nevertheless, the Commission
continued to meet deadlines and issue virtually all documents on time. During the year, the
enforcement working group collected and analyzed responses to the exclusion order survey and
prepared recommendations for the Commission’s consideration in view of the survey results.
The working group also began providing Section 337 scheduling information to Customs on
a quarterly basis. System modifications to EDIS were implemented to allow for the electronic
acceptance of confidential documents.
-- During FY 2007, the Section 337 area was again extremely active, with the number of
investigations before the Commission during the year exceeding the record level experienced
in FY 2006. Overall, the number of active cases in FY 2007 was nearly 80 percent higher than
the number of active cases four years earlier. Moreover, the Office of ALJs not only shouldered
an exceptionally heavy workload, but also had to adjust to the retirement of two ALJs and the
extended absence of another during the year. Although the Commission continued to meet its
deadlines for the institution of new investigations and the issuance of final decisions, interim
deadlines for the establishment of target dates and the issuance of initial determinations
regarding violation were missed in a handful of investigations. Also, the average length of time
taken to reach a final decision on the merits increased to 16.6 months as compared to an
average length of investigations of less than 15 months in the preceding four years. Members
of the enforcement working group met with representatives from the IPR Branch of Customs to
84

discuss matters relating to exclusion order enforcement, and the enforcement working group
continued to provide Section 337 scheduling information to Customs on a quarterly basis.
System modifications to EDIS were implemented during FY 2007 to allow for the electronic
notification of document submissions to internal users and to allow search results to be viewed
in a tabular format and sorted more easily.
-- During FY 2008, the number of new Section 337 complaint filings and the number of Section
337 matters active during the year reached new record levels. In total, the number of new
investigations and new ancillary proceedings rose by nearly 50 percent as compared to FY 2007,
and the number of matters active during the course of the year was nearly 20 percent higher
than in FY 2007. To meet its record-high caseload, the Commission hired two new ALJs to bring
the total to five ALJs. The Commission also appointed a Chief Administrative Law Judge. The
Commission continued to meet its deadlines for the institution of new investigations and the
issuance of final decisions, and to meet interim deadlines for the establishment of target dates.
The ALJs also met their deadlines for the issuance of initial determinations regarding violation.
However, deadlines for the establishment of target dates were missed in a few instances. As in
FY 2007, the average length of time taken to reach a final decision on the merits was between
16 and 17 months. Members of the enforcement working group continued to meet with
representatives from the IPR Branch of Customs to discuss matters relating to exclusion order
enforcement, and the enforcement working group continued to provide Section 337 scheduling
information to Customs on a quarterly basis. The goals regarding the availability of documents
on EDIS were also met this year. Additionally, the Commission released a new EDIS Coding
Manual to all EDIS users to define more clearly the guidelines for describing the documents
being submitted, thus reducing the number of errors associated with document submissions.
-- In FY 2009, the Commission accomplished the following—
• The level of new Section 337 complaint filings remained high, but receded from the record
level of new filings experienced in FY 2008, while the number of matters active during the
course of the year approximated that of FY 2008. The Commission hired a sixth ALJ.
• The Commission continued to meet its deadlines for the institution of new investigations
and the issuance of final decisions, and the ALJs also met their deadlines for the issuance
of initial determinations regarding violation and the establishment of target dates. However,
the average length of time to reach a final decision by the Commission on the merits in
Section 337 investigations increased in FY 2009 to slightly less than 18 months.
85

• During the year, the Commission initiated a voluntary pilot mediation program in an effort
to facilitate more settlements in section 337 investigations although no investigations have
yet entered the mediation program. Members of the enforcement working group continued
to meet with representatives from the IPR Branch of Customs to discuss matters relating to
exclusion order enforcement.
• The Commission released a re-engineered version of EDIS during the second quarter of
FY 2009, and the Commission exceeded its metrics for making documents available on
EDIS under the previous system. The Commission acquired and utilized temporary space
to enhance its ability to schedule timely hearings. An updated version of the popular
publication, “Frequently Asked Questions about Section 337” was released, and numerous
enhancements were made to the Commission Web site in FY 2009.

STRATEGIC OPERATION NO. 3: Industry and Economic Analysis
The Commission continues its statutory mission to provide expert analysis and information to Congress
and the executive branch in both formal reports and informal technical assistance. The Commission’s
goal is to provide sound, objective, value-added analytical products in a timely manner that lead to
more informed public debate on trade policy issues. External factors affecting the performance of
this strategic Operation include customer requests for studies and legislative initiatives. Commission
experts are regularly called upon for information and analysis on current and future trade issues and
proposed trade legislation, and are in frequent demand as technical experts to Congressional staff,
interagency policy committees, and trade negotiating teams.
In 2008 the Commission began using a phone survey to follow up with statutory report clients, asking
for insights on client satisfaction, and developed a baseline. The Commission is using FY 2008 data
as a benchmark for analysis of future performance.

Strategic Goal
The Commission’s strategic goal is to enhance the quality and timeliness of its industry and economic
analysis to support sound and informed trade policy formulation.

Performance and Annual Goals
Performance Goal No. 1: Develop and improve efficient and effective research methods.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Obtain 2 % improvement over FY 2009 responses from executive
branch and congressional staff categorizing delivered statutory reports
as useful (EC).

a. Obtain 2 % improvement over FY 2010 responses from executive
branch and congressional staff categorizing delivered statutory
reports as useful (EC).

b. Deliver all section 332 reports to requesters on time (EC).

Performance Goal No. 2: Expand the Commission’s capacity to anticipate and address new research
issues and areas as they emerge.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Produce more than 60 staff-initiated articles, working papers, research
notes, and presentations at professional meetings/conferences, as
resources and mandatory work permit (OP).

a. Produce more than 64 staff-initiated articles, working papers,
research notes, and presentations at professional meetings/
conferences, as resources and mandatory work permit (OP).

b. Respond to customer requests using two new types of analysis or
subject areas (EC).

c. Expand economic modeling and analytical capabilities. Focus for
FY 2010 will be: (a) continuation of model validation process to
monitor USITC general equilibrium model performance; (b) continued
expansion of the development and use of new tools/ databases related
to NTMs, services and foreign direct investment to inform trade policy
activities; (c) extend the USAGE dynamic database to latest I/O table
and transform database to NAICS nomenclature; and (d) updating the
USAGE add-on modules for state level and occupational break outs
(EC).

c. Expand economic modeling and analytical capabilities. Focus
for FY 2011 will be (a) continuation of model validation process
to monitor USITC general equilibrium model performance; (b)
continued expansion of the development and use of new tools/
databases related to NTMs, services and foreign direct investment
to inform trade policy activities; (c) extend USAGE model to
incorporate investment behavior (d) development of new sources
of data to further understand global trade patterns.

Performance Goal No. 3: Improve the Commission’s communications with its customers to ensure
that they understand the agency’s capabilities and are able to benefit from its expertise.
88

FY 2010 Annual Goals

FY 2011 Annual Goals

a. Achieve 2 point improvement over FY 2009 level of satisfaction
reported by users of ITC Industry and Economic Analysis Web pages
(ITS/EC).

a. Achieve 1 point improvement over FY 2010 level of satisfaction
reported by users of ITC Industry and Economic Analysis Web
pages (ITS/EC).

b. Increase use of ITC Web site (including EDIS) to facilitate public
involvement in studies and to disseminate information. Special efforts
in FY 2010 include broadcasting Commission industry and economic
analysis and highlighting independent research more widely on the
Web site (EC).

b. Increase use of ITC Web site to facilitate public involvement in
studies and to disseminate and collect information. Special efforts
in FY 2011 include promoting products or product features on
Web site (EC).

c. Provide training on briefing skills to at least 30 employees to enhance
small group communication with both internal and statutory customers
(ID/EC).

c. Provide training on briefing skills to an additional 20 employees
to enhance small group communication with both internal and
statutory customers (ID/EC).

Note: In annual goals, the offices shown in parentheses are the staff offices responsible for measurement.

Performance
During FY 2005, 2006, 2007, 2008, and 2009, the Commission generally met the performance goals
of its Performance Plans:
-- In FY 2005, the Commission established a baseline for satisfaction of its Web users for Strategic
Operation No. 3. The Commission continued to focus on improving delivery of its reports via
the Web site. During FY 2005, the Commission delivered a number of innovative reports to
Congress and USTR such as The Impact of Trade Agreements Implemented Under Trade Promotion
Authority; Foundry Products: Competitive Conditions in the U.S. Market; Logistic Services: An
Overview of the Global Market and Potential Effects of Removing Trade Impediments; U.S. Trade
89

and Investment with Sub–Saharan Africa: Fifth Annual Report; Remediation and Nature and
Landscape Protection Services: an Examination of U.S. and Foreign Markets; and U.S.–Bahrain
Free Trade Agreement: Potential Economywide and Selected Sectoral Effects.
-- In FY 2006, the Commission initiated e-mail subscription lists to provide customers with
automatic updates and information about its reports. Relative to the 2005 benchmark, the Web
satisfaction survey indicated that the agency had improved in 10 out of 11 surveyed areas. The
Commission also made significant progress toward its corporate research agenda: research
focusing on U.S. foreign direct investment resulted in one staff paper on the topic; research
continued on Chinese trade and development, resulting in a paper on U.S.-China trade and
another on the impact of Chinese demand on world commodities; and ongoing research on
NTMs resulted in a paper regarding the price effect of banking NTMs, as well as the use of this
research in statutory reports on Colombia and Korea. In addition, the Commission delivered
four studies on future and potential FTAs to USTR (U.S. Korea Free Trade Agreement: Advice
Concerning the Probable Economic Effect of Providing Duty-Free Treatment for Imports; U.S.Malaysia Free Trade Agreement: Advice Concerning the Probable Economic Effect of Providing
Duty-Free Treatment for Imports; U.S.-Oman Free Trade Agreement: Potential Economywide and
Selected Sectoral Effects; U.S.-Peru Trade Promotional Agreement: Potential Economywide and
Selected Sectoral Effects). Other special accomplishments in 2006 include delivering innovative
reports (Economy-wide Simulation Modeling: Technical Analysis of the Doha Round; Conditions
of Competition for Certain Oranges and Lemons in the U.S. Fresh Market; NAFTA: Woven Cotton
Boxers and Shorts: Probable Effect of Modifications on NAFTA Rules of Origin for Goods of
Canada and Mexico; Probable Effect of Certain Modifications to the North American Free Trade
Agreement Rules of Origin).
-- In FY 2007, the Commission spent considerable energy on its corporate research agenda, in
addition to its increased statutory work load. In the area of foreign direct investment, staff made
considerable progress on deepening in-house knowledge by publishing two papers (“Competitive
Conditions of Foreign Direct Investment in India”; and “Inbound and Outbound U.S. Direct
Investment with Leading Partner Countries”). In model validation, staff incorporated data on
trade in new varieties. These data are the foundation for ongoing work on understanding the
extent to which tariff reductions and FTAs resulted in new trade in previously nontraded goods
that are not addressed in our current models. In addition, the Commission delivered three studies
to USTR on trade agreements: U.S.-Colombia Free Trade Agreement: Potential Economywide
and Selected Sectoral Effects; U.S.-Panama Free Trade Agreement: Potential Economywide and
Selected Sectoral Effects; and U.S.-Korea Free Trade Agreement: Potential Economywide and
90

Selected Sectoral Effects. Other special accomplishments in 2007 include delivering innovative
reports (Medical Devices and Equipment: Competitive Conditions Affecting U.S. Trade in Japan
and Other Principal Foreign Markets; Certain Textile Articles: Probable Effect of Modification of
NAFTA Rules of Origin for Goods of Canada and Mexico and for Goods of Canada; Sub-Saharan
Africa: Factors Affecting Trade Patterns of Selected Industries, First Annual Report; and U.S.
Agricultural Sales to Cuba: Certain Economic Effects of Restraints). In FY 2007, Congress
amended the African Growth and Opportunity Act to create a new statutory requirement with
respect to the commercial availability of fabrics and yarns in beneficiary Sub-Saharan African
countries. As a result, the Commission issued interim rules and conducted an investigation
on Commercial Availability of Fabric and Yarns in AGOA Countries: Certain Denim.
-- In FY 2008, the Commission experienced a heavy statutory workload and delivered innovative
reports to Congress and USTR such as: Industrial Biotechnology: Development and Adaptation
by the U.S. Chemical and Biofuel Industries; Sub-Saharan Africa: Factors Affecting Trade
Patterns of Selected Industries: Second Annual Report; Global Beef Trade: Effects of Animal
Health, Sanitary, Food Safety, and Other Measures on U.S. Beef Exports; and Wood Flooring
and Hardwood Plywood: Competitive Conditions Affecting the U.S. Industries. In addition, the
Commission made significant progress with its industry and economic analysis research agenda
and updates to various analytical tools. The Commission spent significant efforts developing
its models, especially the USAGE model by including more detailed industry specification, in
particular in the sweetener and ethanol sectors. One major model development was redefining
the data base using NAICS-based Input-Output accounts, which allows consistency with
future national income data. These model enhancements will be used for the latest update of
the Import Restraints study requested by USTR. In addition, the China trade project continues
to examine issues in U.S.-China bilateral trade, making use of highly disaggregated data
from China, United States and Hong Kong. Three important papers were completed this year
on China: the first developed an analytical approach to estimate the use of imported and
domestically produced intermediate inputs in Chinese exports; the second estimated vertical
specialization of China’s exports; the third examined the role of tax and tariff erosion and money
laundering in explaining the U.S.-China trade data discrepancy. The model validation project
continues work in two separate efforts: one project looks at the implications of tariff rates on
nontraded and newly traded varieties of goods to more accurately reflect the restrictiveness
of tariffs; the other effort uses the USAGE model to generate historical forecasts for detailed
U.S. commodities and compares these forecasts to actual outcomes. Finally, Commission staff
91

expanded its NTM research efforts, incorporating into a Congressionally-mandated study of
the U.S.-Korea Free Trade Agreement new methods of connecting price data with policy data to
assess the market impact of particular NTMs.
-- In FY 2009, the Commission accomplished the following—
• Staff delivered innovative reports to Congress and USTR and continued to focus on corporate
research as the statutory workload shifted back to a pre-2007 level. Notable reports
include: Property-Casualty Insurance Services: Competitive Conditions in Foreign Markets;
Sub-Saharan Africa: Effects of Infrastructure Conditions on Export Competitiveness, Third
Annual Report (the last report in the series); and Sub-Saharan African Textile and Apparel
Inputs: Potential for Competitive Production.
• In addition, the Commission delivered two studies to USTR on trade agreements: Viscose
Rayon Staple Fiber: Probable Effect of Modification of U.S.-Australia Free Trade Agreement
Rules of Origin and Probable Economic Effect of Certain Modifications to the U.S. - Chile Free
Trade Agreement Rules of Origin. In addition, the Commission completed its final report on
Monitoring of U.S. Imports of Tomatoes, and Monitoring of U.S. Imports of Peppers. Corporate
research has included executive briefings, data investigations and staff working papers.
• Over the past 18 months, the Executive Briefings on Trade effort has produced a variety of
two-page briefings on timely international trade and economic issues. Initially produced
to brief the Commission, many of these briefing documents have been posted to the USITC
Web site for public use.
• The Commission has continued to advance its research on quantifying NTMs and to
incorporate this research in its statutory investigations. Furthermore, the NTM database
has been updated to reflect recent catalogs of NTMs as reported by the United States and
other countries. In conjunction with UNCTAD and MAST, the Commission has launched a
collaborative (“Wiki”) Web page for NTM research.

STRATEGIC OPERATION NO. 4: Tariff and Trade Information Services
During FY 2010 and 2011, the Commission plans to enhance its performance in providing tariff
and trade information services by increasing the utility of various services for its customers and by
providing timely and effective nomenclature and other services to Congress and the Administration.
Central to this strategic Operation is the publication of the HTS and various types of tariff and
trade information which are available on the Commission’s Web site. The Commission actively seeks
feedback on customer satisfaction, and has established goals and indicators to account for such
feedback. External factors affecting performance of this function include legislative changes and
customer requests for assistance.

Strategic Goal
The Commission’s strategic goal is to improve the availability of and access to high-quality and
up-to-date tariff and international trade information and technical expertise to support the executive
and legislative branches, the broader trade community, and the public.

Performance and Annual Goals
Performance Goal No. 1: Increase the utility and improve the dissemination of tariff and trade
information services to customers.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Obtain 5 % increase in number of Trade DataWeb and Tariff Database
reports provided (TATA).

a. Obtain 5 % increase in number of Trade DataWeb and Tariff
Database reports provided (TATA).

b. Achieve 5 % increase in usage over FY 2009 of HTS page of ITC Web
site (TATA).

b. Achieve 5 % increase in usage over FY 2010 of HTS page of ITC
Web site (TATA).

c. Achieve 2 point improvement over FY 2009 level of positive feedback
from users of ITC’s tariff and trade Web pages (ITS).

c. Achieve 1 point improvement over FY 2010 level of positive
feedback from users of ITC’s tariff and trade Web pages (ITS).

Performance Goal No. 2: Provide timely, effective, and responsive nomenclature and related technical
services to customers.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Obtain 95 % positive results on product feedback assessments (TATA).

a. Obtain 95 % positive results on product feedback assessments
(TATA).

b. Provide timely and accurate responses to all e-mail requests for tariff
advice (TATA).

b. Provide timely and accurate responses to all e-mail requests for
tariff advice (TATA).

Note: In annual goals, the offices shown in parentheses are the staff offices responsible for measurement.

Performance
During FY 2005, 2006, 2007, 2008, and 2009 the Commission generally met the performance goals
of its Performance Plans:
-- In FY 2005, the 2005 edition of the HTS and a mid-year supplement were published in hard
copy, and the electronic version on the Commission Web site was updated accordingly.
Work continued on streamlining the production of the HTS in order to facilitate updating the
Dataweb, the Automated Commercial Environment database and other databases employing
HTS codes. The Commission Web site was reconfigured to make it simpler to access the HTS,
Dataweb and other tariff–related Web pages. The report on Inv. No. 1205-6 (Preliminary),
Proposed Modifications to the Harmonized Tariff Schedule of the United States, was submitted
to USTR. An ITC staff member chaired two separate committees of the WCO and was re-elected
to chair the Harmonized System Committee sessions to be held during FY 2006. Commission
94

representatives led or participated in the U.S. delegations to the WCO, and many U.S. proposals
and positions, vetted with U.S. industry and other Government agencies, were accepted by our
trading partners. More than 600 miscellaneous tariff bills were introduced in the FY by the
109th Congress, and by the end of the FY, the Commission had approved factual reports on
more than 200 of them and forwarded them to the Congress. Communications with USTR,
Congressional Committees, and the private sector all indicated positive feedback on the ITC’s
activities in their behalf during the FY.
-- In FY 2006, the 2006 edition of the HTS and a mid-year supplement were published in hard copy
and made available on-line. In addition, four electronic revisions were posted to the Commission
Web site to reflect implementation of certain free-trade agreements and Congressional tariff
legislation. The ITC also generated and published, on USTR’s behalf, appendices to Presidential
Proclamations implementing free-trade agreements between the United States and Morocco,
Bahrain and certain Central American countries. The final report on Inv. No. 1205-6 was
submitted to USTR and, subsequently, to Congress for a statutory layover period, which was
still ongoing at the end of FY 2006. In this connection, the ITC worked closely with USTR and
Customs to update staged-duty-rate-reduction tables and rules of origin for existing free trade
agreements, as well as for certain pending FTAs. Commission staff led and/or participated
in three separate committees of the WCO. One staff member chaired both sessions of the
Harmonized System Committee (HSC) during the fiscal year and was re-elected to chair the
HSC sessions scheduled during FY 2007. During FY 2006 the Commission prepared an
unprecedented number (nearly 900) of reports on miscellaneous tariff bills and forwarded them
to Congress. About 260 provisions were enacted in P.L. 109-280, the Pension Protection Act
of 2006, and the rest were set aside for Congressional consideration in early FY 2007. During
FY 2006, a Memorandum of Agreement was signed between Customs and the ITC. Under
this data exchange agreement, the ITC will provide tariff data to Customs in exchange for
trade transaction data needed for AD/CVD investigations. During the fiscal year, significant
advancements were made in the proposed re-design of the process for preparing, updating and
publishing the HTS in a manner intended to accelerate and streamline the transfer of tariff
information from the HTS to the ITC Tariff Database, the ACE database and other external
databases employing HTS-based tariff information. In addition, automated programs were
being developed by Customs and the ITC to expedite the preparation and upload into Customs
border systems of annual staged rate reductions for FTAs and the introduction of new FTAs

as they are implemented. Communications with USTR, Congressional Committees and the
private sector all revealed positive feedback in the Commission’s activities under Strategic
Operation No. 4 during the fiscal year.
-- In FY 2007, a preliminary version of the 2007 edition of the HTS, effective January 1, 2007, was
posted on line to indicate changes in staged duty rates under various free trade agreements.
An electronic revision, effective January 5, 2007, was posted to reflect the implementation
of several hundred duty suspensions and duty reductions enacted by P.L. 109-432, the Tax
Relief and Health Care Act of 2006. Amendments arising from Inv. No. 1205-6 could not be
implemented before February 3, 2007, because of the unpredictable nature of the Congressional
layover required before such implementation. At that point, the “final basic” version of the
2007 HTS was published in hard copy and posted on line. The usual mid-year supplement
was delayed in anticipation of the implementation of the U.S.-Oman Free Trade Agreement.
However, that implementation was not proclaimed by the President before the end of the fiscal
year; as such, a second electronic revision to the 2007 HTS was posted on the Commission Web
site to reflect mid-year GSP amendments and 484(f) Committee changes. TATA staff continued
to work with NAFTA partners to update the rules of origin for that agreement. Commission
staff led and/or participated in three separate committees of the WCO. One staff member
chaired both sessions of the Harmonized System Committee during the fiscal year. During
the FY, substantial advancements were made in the proposed re-design of the process for
preparing, updating and publishing the HTS in a manner designed to accelerate and streamline
the transfer of tariff information from the HTS to the ITC Tariff Database, the ACE database
and other external databases employing HTS-based tariff information. Communications with
USTR, Congressional Committees and the private sector all revealed positive feedback for the
Commission’s activities under Strategic Operation No. 4 during the fiscal year.
-- In FY 2008, the 2008 edition of the HTS and a mid-year supplement were published in hard
copy and made available online. In addition, two electronic revisions were posted to the Web
site, and a possible third revision was being contemplated near the end of the fiscal year.
There was also substantial progress on the development of an online, interactive HTS reference
tool designed for import brokers and Customs officers, but which will be available for public
access on the ITC Web site. Further progress was also made on developing a more streamlined
approach to updating and preparing the HTS for publication. Both these projects are targeted
for full implementation in FY 2009. Commission staff led and/or participated in three separate
committees of the WCO. During the latter half of FY 2008, the Commission prepared some
775 reports on miscellaneous tariff bills and forwarded them to the House of Representatives;
96

as of the end of the fiscal year, the Senate had not yet begun entertaining new bills for the
110th Congress. Staff also assisted in updating rules of origin for existing FTAs (including
NAFTA) in order to reflect changes in the international HS, which became effective in 2007.
Communications with USTR, Congressional Committees and the private sector all revealed
positive feedback in the Commission’s activities under Strategic Operation No. 4 during the
fiscal year.
-- In FY 2009, the Commission accomplished the following—
• The 2009 edition of the HTS and a mid-year supplement were published in hard copy and
made available online. In addition, one electronic revision was posted to the Web site.
• During the fiscal year, an online, interactive HTS reference tool designed for import brokers
and Customs officers was implemented and made available for public access on the ITC Web
site. While the reference tool was very well received by our customers, further improvements
of the tool are foreseen.
• Further progress was also made on the possible utilization of the online reference tool
directly for updating and printing the HTS on a regular basis; in the long run, this would
represent a sea change in the methods historically (and currently) used for maintaining
and publishing the HTS, but for the short run, the Commission will work with two parallel
systems.
• Commission staff led and/or participated in the U.S. delegations to three separate
committees of the WCO in Brussels, Belgium.
• Towards the end of FY 2009, the 111th Congress still had not yet taken formal action to
assemble miscellaneous tariff legislation for enactment, but the prospect for doing so seemed
imminent; in the meantime, the Commission worked behind the scenes with Congressional
Committees, as well as with individual Members’ offices, both on the 775 bills reported on
for the 110th Congress and on proposed new bills for the 111th Congress.
• Staff also assisted in updating rules of origin for existing FTAs (including NAFTA) in order
to reflect the 2007 amendments to the international HS.
• Staff worked directly with USTR on proposed Presidential proclamations concerning GSP
and the proposed revision of additional duties applied on certain goods imported from the
EU.
Communications with USTR, Congressional Committees and private sector all revealed positive
feedback for the Commission’s activities under Strategic Operation No. 4 during the fiscal year.
97

STRATEGIC OPERATION NO. 5: Trade Policy Support
During FY 2010 and 2011, the Commission plans to improve its performance in the provision of
expert knowledge and analysis regarding trade related issues to the Congress and the executive
branch. The Commission will work to improve the timeliness, complexity, and scope of support
provided to Congress and the Administration, to seek improved feedback from customers, and to
deliver new products and services that meet the situational needs of its customers. External factors
affecting performance of this function include customer requests for assistance, staffing levels and
legislative changes.

Strategic Goal
The Commission’s strategic goal is to provide enhanced support to the development of well-informed
U.S. international trade policy by quickly responding to executive and legislative branch policymakers’
needs for technical support, data, and analysis.

Performance and Annual Goals
Performance Goal No. 1: Provide enhanced real-time, efficient, and effective technical information and
analysis to support organizations involved in trade policy formulation.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Support 87 trade policy issues by ITC analysis (~2 % increase from
previous goal) (ID).

a. Support 89 trade policy issues by ITC analysis (~2 % increase
from previous year) (ID).

b. Resolve technical issues and implement system to enhance secure
delivery of unclassified technical assistance products (ER/ITS).

b. Establish capability and procedures to enhance delivery of
classified products (ER/ITS).

c. Analyze information collected by new electronic tracking system to
identify potential quality and efficiency improvements (ID).

c. Begin to implement quality and efficiency improvements (ID).

Note: Requests for support will be influenced by the annual trade policy agenda set by the Administration as well as by Congressional activity. Ability to respond to all
requests for support will be dependent on staffing levels and the level of other, higher priority statutory work in Strategic Operation Nos. 1, 3, and 4.

Performance Goal No. 2: Improve the Commission’s communications with its customers to ensure
that they understand the agency’s capabilities and are able to benefit from its expertise.
FY 2010 Annual Goals

FY 2011 Annual Goals

a. Conduct a briefing program to proactively inform Congressional
oversight committee staff regarding ITC capabilities (ER).

a. Evaluate scope of briefing program to identify and enact
enhancements (ER).

b. Provide training on briefing skills to at least 30 employees to enhance
small group communication with both internal and statutory customers
(ID/EC).

b. Provide training on briefing skills to an additional 20 employees
to enhance small group communication with both internal and
statutory customers (ID/EC).

Note: In annual goals, the offices shown in parentheses are the staff offices responsible for measurement.

Performance
During FY 2005, 2006, 2007, 2008, and 2009, the Commission generally met the performance goals
of its Performance Plans:
-- In FY 2005, there was a significant increase in the number of trade policy issue areas for which
the executive branch and congressional committees sought support from the Commission.
In FY 2005, staff regularly sought targeted feedback from customers; staff was able to
conduct briefing/feedback meetings with USTR in connection with most studies. Feedback
was overwhelmingly positive from both USTR and Congress, with some suggestions of how
lessons learned in successful studies could be applied in the future. The primary means of
feedback from Congress was by telephone and e-mail, and was more product-specific. Hill staff
in particular expressed appreciation for timely and quick-turnaround responses.
-- In FY 2006, the Commission demonstrated its wide ranging expertise by responding to
requests from congressional oversight committees and USTR which involved well over 100
discrete trade, legal, or competitiveness issues. Efforts to better serve these primary customers
resulted in more timely analysis, as staff sought opportunities to provide information using
streamlined procedures that minimize bureaucratic steps. These improvements were shaped
by staff initiatives to seek timely product-specific feedback from customers. The Commission
also dedicated staff to focusing on areas USTR identified as having significant ongoing need,
including the Generalized System of Preferences, negotiation support in the Services and
99

Non-Agricultural Market Access sectors, and trade capacity building. The Commission also
significantly increased its commitment of resources to aid USTR’s litigation requirements in
international fora.
-- In FY 2007, agency staff continued to respond to requests from USTR and the Commission’s
congressional oversight committees for information to support decision-making on a wide variety
of trade policy issues. Despite declining staffing levels during the year in the offices primarily
responsible for OP 5 activities, the Commission again responded with information on over 100
different trade issues. Efforts to provide more substantive pre-decisional products through this
strategic Operation led to the development of complex work products examining issues such
as post-FTA shifts in trade, the historical and projected impact of preferential duty programs,
trade in environmental goods and services, and market access concerns. A pilot program to
develop an electronic repository for trade negotiation documents was demonstrated to USTR
staff. Based on their interest, a second phase of the pilot, involving NAFTA documentation, was
initiated to develop a broader basis for USTR to evaluate the system’s usefulness and their long
term interest in the effort. The Commission continued to provide dedicated personnel to support
USTR and the oversight committees, balancing the contributions in this strategic Operation
with competing demands brought on by high levels of work in other strategic Operations,
especially Strategic Operation No. 3.
-- In FY 2008, Strategic Operation No. 5 work again included both more complex products and
more limited, quick turnaround products. Some of these more complex products involved
follow-on work associated with reports delivered pursuant to statutory requests under Strategic
Operation No. 3, such as additional information on Chinese trade policies, detailed information
on the performance of the GSP program, ongoing activities concerning the U.S./Peru FTA and
several other potential trade agreements including the ongoing Doha Round negotiations. In
addition, staff provided information on the European Union/Sub-Saharan Africa Partnership
Agreements, information to support deliberations on the New Partnership for Development
Act, information on state-level employment effects of the proposed U.S./Colombia FTA, and
simulation modeling to support USTR trade negotiators. The Commission continued to provide
dedicated personnel to support USTR and Congress, but high workloads in other strategic
Operations limited this type of activity. In order to more efficiently and effectively address
requests, the Commission formed a small cross-office team to coordinate Strategic Operation
No. 5 activities.

100

-- In FY 2009, the Commission provided significant assistance to support notification
requirements for various multi-national organizations, addressing a variety of programs and
products. Assistance to support the analysis of policy actions taken, or contemplated, by
trading partners addressed both collaborative and retaliatory efforts, including tariff preference
programs, retaliatory tariff scenarios, and the impact of changes in regulatory frameworks. In
some cases, this assistance included economic modeling to provide quantitative estimates,
at national or state levels, on which to base policy decisions. Significant resources were
dedicated to supporting decision makers responsible for guiding the policies governing the
U.S. Generalized System of Preferences. Comparative analysis of rules-of-origin contained in
numerous trade agreements, for a variety of electronic and chemical products, also required
significant resources.

101

File Type	application/pdf
File Modified	2010-02-01
File Created	2010-02-01