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Table of Contents

Alphabetical Listing of Abbreviations ............................................................................................................. iv

Fiscal Year 2011 Budget Justification for the U.S. International Trade Commission ...........................1General Statement ............................................................................................................................................................... 1Mission .................................................................................................................................................................................. 1Activities in Brief .................................................................................................................................................................. 2

Fiscal Year 2011 Budget Highlights ...................................................................................................................3The Elevated Caseload for Intellectual Property-Based Import Investigations Required the Acquisition of an

Additional Courtroom .................................................................................................................................................... 5The Commission is Addressing Challenges to its Internal Operations ............................................................................. 7

Management Initiatives for FY 2010–2011 ........................................................................................................9Financial Management Issues Are Being Addressed ......................................................................................................... 9Mandatory Continuity of Operations Plans Require Significant Resource Allocation ................................................... 10Open Government Initiatives Will Improve Public Access and Mission Accomplishment ............................................ 11Strategic 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 ............................................................................15Antidumping and Countervailing Duty Investigations .................................................................................................. 16Sunset Reviews ................................................................................................................................................................... 17Other Import Injury Investigations ................................................................................................................................... 19Litigation ............................................................................................................................................................................. 20Resource Requirements and Workload for Import Injury Investigations ....................................................................... 21Strategic Operation No. 1: Import Injury Investigations Resource Requirements, Fiscal Years 2009, 2010, 2011 ..... 22Strategic Operation No. 1: Import Injury Investigations Caseload ................................................................................. 23

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Strategic Operation No. 2: Intellectual Property-Based Import Investigations ...................................24Resource Requirements and Workload for Intellectual Property-Based Import Investigations ................................... 26Strategic Operation No. 2: Intellectual Property-Based Import Investigations Resource Requirements,

Fiscal Years 2009, 2010, 2011 ...................................................................................................................................... 28Strategic Operation No. 2: Intellectual Property-Based Import Investigations Caseload ............................................. 29

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

Fiscal Years 2009, 2010, 2011 ...................................................................................................................................... 39Strategic Operation No. 3: Industry and Economic Analysis Investigations Caseload .................................................. 40

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

Fiscal Years 2009, 2010, 2011 ...................................................................................................................................... 46

Strategic Operation 5: Trade Policy Support ................................................................................................47Resource Requirements for Trade Policy Support ............................................................................................................ 49Strategic Operation No. 5: Trade Policy Support Resource Requirements, Fiscal Years 2009, 2010, 2011 ................. 50

Information Technology ....................................................................................................................................51Major Ongoing Information Technology Initiatives ......................................................................................................... 52

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

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Office of the Inspector General ........................................................................................................................58

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

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

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

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

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

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Alphabetical Listing of AbbreviationsAD AntidumpingALJs AdministrativeLawJudgesCIT U.S.CourtofInternationalTradeCommerce DepartmentofCommerceCommission U.S.InternationalTradeCommissionCOOP ContinuityofOperationsCustoms U.S.CustomsandBorderProtectionCVD CountervailingDutyDataWeb InteractiveTariffandTradeDataWebEDIS ElectronicDocumentInformation System

Federal U.S.CourtofAppealsfortheCircuit FederalCircuit

FISMA FederalInformationSecurity ManagementAct

FTAs FreeTradeAgreementsFY FiscalYearGATT GeneralAgreementonTariffsand Trade

GSP GeneralizedSystemofPreferencesHTS HarmonizedTariffScheduleofthe UnitedStates

HTSA HarmonizedTariffScheduleofthe UnitedStatesAnnotated

IT InformationTechnologyITDS InternationalTradeDataSystemJICE JournalofInternationalCommerce andEconomics

MTBs MiscellaneousTariffBillsNAFTA NorthAmericanFreeTradeAgreementOCIO OfficeoftheChiefInformationOfficerOEEO OfficeofEqualEmployment Opportunity

OGC OfficeoftheGeneralCounselOIG OfficeoftheInspectorGeneralOMB OfficeofManagementandBudgetOPM OfficeofPersonnelManagementOUII OfficeofUnfairImportInvestigationsSHCP StrategicHumanCapitalPlanTheByrd ContinuedDumpingandSubsidyAmendment OffsetAct

USTR UnitedStatesTradeRepresentativeWTO WorldTradeOrganization

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Fiscal Year 2011 Budget Justification for the U.S. International Trade Commission

General Statement

TheU.S.InternationalTradeCommission(Commission) isanindependent,quasi-judicialFederalagencywithbroad investigative responsibilitiesonmattersof trade.TheCommission investigatestheeffectsofdumpedandsubsidizedimportsondomesticindustriesandconductsglobalsafeguardinvestigations.TheCommissionalsoadjudicatescasesinvolvingimportedgoodsthatareallegedtoinfringeintellectualpropertyrights.Throughsuchproceedings,theCommissionfacilitatesarules-basedinternationaltradingsystem.TheCommissionalsoservesasaFederalresourcewheretradedata and other trade policy related information are gathered and analyzed. The information andanalysisareprovidedtothePresident,theOfficeoftheU.S.TradeRepresentative(USTR),andtheCongress to facilitate thedevelopmentof soundand informedU.S. tradepolicy.TheCommissionmakesmost of its information and analysis available to the public to promote understanding ofinternationaltradeissues.

Mission

ThemissionoftheCommissionisto:1)administerU.S.traderemedylawswithinitsmandate ina fairandobjectivemanner,2)providethePresident,USTR,andtheCongresswith independent,quality analysis, information, and support on matters relating to tariffs and international tradeandcompetitiveness,and3)maintaintheHarmonizedTariffScheduleoftheUnitedStates(HTS).Insodoing, theCommissionserves thepublicby implementingU.S. lawandcontributing to thedevelopmentofsoundandinformedU.S.tradepolicy.

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Activities in Brief

AstheroleofinternationaltradeintheU.S.economyhasexpanded,theworkoftheCommissionhashadabroaderimpactonmanyaspectsoftheU.S.economy.Withthistrendinmind,theCommissionrecognizestheimportanceofstrivingforexcellenceinallaspectsofitsmission,particularlyobjectivity,thoroughness,clarityofanalysis,andtimelinessintheperformanceofitsinvestigativeduties.ThiseffortallowstheCommissiontomeetmoreeffectivelytheneedsofpolicymakersinboththelegislativeandexecutivebranches,partiestoCommissionproceedings,andthegeneralpublic.

The Commission has five major strategic Operations that serve its customers: 1) Import InjuryInvestigations, 2) Intellectual Property-Based Import Investigations, 3) Industry and EconomicAnalysis,4)TariffandTradeInformationServices,and5)TradePolicySupport.DetailedgoalsforeachstrategicOperationarepresented in theFiscalYear2010and2011PerformancePlans (seeattached).

Import injury investigations and intellectual property-based import investigations are distinctinvestigative regimes with specific and detailed procedures provided in authorizing legislation.Industryandeconomicanalysis,tariffandtradeinformationservices,andtradepolicysupportarebasedupongeneralauthorizinglegislationwithbroaddiscretiondelegatedtotheCommission.TheCommissionconductsimportinjuryinvestigationsandindustryandeconomicanalysisbyassigningan interdisciplinary team to each investigation, therebycombining the skills of theCommission’sinvestigators, international trade analysts, economists, auditors, lawyers, and statisticians. Theknowledge, skills, and abilities developed and maintained in the analytical and data strategicOperations(3,4,and5)andthosedevelopedandmaintainedintheprimarilyinvestigativestrategicOperations(1and2)reinforceoneanother.Commissionpersonnelfrequentlycontributetoactivitiesinmorethanoneoperation.

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Fiscal Year 2011 Budget HighlightsForfiscalyear(FY)2011,theCommissionrequests$87.0milliontosupportitsauthorizedstrategicOperations.TheFY2011requestrepresentsa5.2percentincreaseovertheFY2010appropriationrequestof$82.7million,anda6.3percentincreaseovertheFY2010finalappropriationof$81.9million.TheincreaseisprimarilyduetotheacquisitionofadditionalspacetomeetworkloaddemandsandimplementationoflegislativerequirementsforaContinuityofOperations(COOP)Plan,aswellasrequiredincreasesinsalariesandbenefits.

TheCommission’sFY2011appropriationrequestconsistsofsalaries(52.6percent),benefits(13.7percent),rent(12.4percent),varioussupportservices(12.6percent),andother(8.8percent). (SeeDollarCost:ComparisonbyObjectClassification,p.59.)

TheCommissionprojectsthatsalariesofpermanentpersonnelwillincreaseby5.5percent,or$2.3millionovertheFY2010ExpenditurePlanbasedon:1)aprojectedlocality-adjusted3percentFederalpayraiseforFY2011,2)normalpromotionsandwithingradeincreases,and3)ongoingrecruitmenteffortstofillvacanciesinkeyareas.

TheCommissionhasmadesignificantprogressinfillingkeypositionsinresponsetoanincreaseinitsintellectualpropertycaseload,andinreducingthetargetedsizeofcertainoffices.IthasreduceditsvacancyratefromanunsustainableFY2006–2008averageofabout14percenttolessthan10percentbytheendofFY2009.Atthesametime,ithasreducedthenumberofpositionsincertainofficesafterathoroughreviewofitsStrategicHumanCapitalPlan(SHCP).

AssumingitobtainsitsrequestedFY2011appropriation,theCommissionanticipatesitcanreduceits vacancy rate to 5 percent, which reflects normal turnover. The Commission will achieve thereductionbyfillingcriticalpositionsandcontinuingtoeliminateunneededpositions.RecruitmentandtrainingofnewstaffisparticularlyimportanttosuccessionplanningeffortssinceoveronethirdoftheCommission’spermanentpersonneliswithinfiveyearsofretirementeligibility.

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TheCommissionprojectsbenefitscostsinFY2011toincreaseby6.7percent,or$746,000,duetotheFederalpayraise,increasesinhealthcarecosts,higherstaffinglevels,andacontinuingshiftfromtheCivilServiceRetirementSystemtothemoreexpensive(totheCommission)FederalEmployeesRetirementSystem.

TheCommissionhassucceededinprocuringnewspaceonthesecondfloorofitsbuildingtosupporttheexpandingintellectualpropertycaseload.TheCommission’srentobligationforFY2010willbelowerthanprojectedbyabout$825,000becauseannualleasecostswerelessthananticipatedandtheCommissionwillnotacquiretheadditionalspaceuntilatleastmidyearFY2010,ratherthanthebeginningofFY2010.

Thereallocationofthe$825,000isnecessarytoaddresspressingfinancialmanagementneedsidentifiedby theFY2009 independentfinancialstatementaudit. Administrativeservices forFY2010haveincreasedsignificantlyoverlastyear’sprojectionstosupportfinancialmanagementreview,internalcontrolsdevelopment,andhumancapitalplanning for theOfficeofAdministration. Additionally,someofthesefundshavebeenredistributedtoOfficeoftheChiefInformationOfficer(OCIO)servicesandequipmentcostcentersto facilitatethe implementationof long-delayedbutcriticalhardware,software,andsecurityupgrades.TheCommissionexpectstoseeresidualcostsfromtheseinitiativesintoFY2011.

Rentisprojectedtoincreaseby6.9percent,or$700,000,inFY2011tofundafullyear’srentforthesecondfloor.Renovationsofthesecondfloor,includingthedevelopmentandbuild-outoftheadditionalcourtroom,willbefundedinFY2010.However,renovationcostswillremainelevatedinFY2011astheCommissionaddressesovercrowdingthroughoutitsbuilding.

The Commission’s costs are predominantly recurring and non-discretionary. Thus, inadequatefundingwouldforcereductionsthatcouldthreatentheCommission’sabilitytofullyandeffectivelyfulfillitsmissionatatimewhentheCommission’sworkloadisexpectedtoincrease.

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The Elevated Caseload for Intellectual Property-Based Import Investigations Required the Acquisition of an Additional Courtroom

Theintellectualproperty-basedimportinvestigationscaseloadhasmorethantripledsinceFY2000.ThecaseloadreachedahistorichighinFY2008andhasremainedatanelevatedlevelsincethattime.Thiselevatedcaseloadisattributable,insubstantialpart,togreaterappreciationamongintellectualpropertyownersandtheircounselofthelevelofexpertisethattheCommissionpossessesintheareaof complex intellectualproperty litigation.TheCommission’scommitment toprompt resolutionofpatentcases,usuallycompletingtheentireadministrativeprocesswithin18monthsofthefilingofthecomplaint,makestheseproceedingsveryattractivetopatentholdersinareasofrapidtechnologicalchange. TheCommission can also providemeritorious complainantswith injunctive relief that isincreasinglydifficulttoobtaininotherfora,includingtheuniqueremedyofexcludingarticlesfromentryintotheUnitedStates.

Operation 2: Intellectual Property-Based Import Investigations: Caseload and Resource Allocation, Fiscal Years 2000–2011

Average Active Cases Per Month Percentage of Total Budget

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20

30

40

50

60

FY 2011FY 2010FY 2009FY 2008FY 2007FY 2006FY 2005FY 2004FY 2003FY 2002FY 2001FY 2000

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Therapidincreaseinthecaseload,alongwithdifficultiesinhiringandretainingqualifiedadministrativelawjudges(ALJs),putaseriousstrainontheCommissioninrecentyears.ThankstothesupportoftheCongress,theCommissionwasabletohireadditionalALJstohandletheincreasedcaseload.TheCommission remains concerned about potential ALJ retirements, a declining applicant pool,anddifficultiesinobtaininghighlyqualifiedcandidatesforthesespecializedALJpositionsunderthecurrentrecruitmentandhiringconstraintsoftheOfficeofPersonnelManagement(OPM)process.Thenatureofthisprocess,andtheconcomitantdifficultiestheCommissionhasexperiencedinfillingALJpositions,suggeststhattheCommissionmayneedstatutoryorregulatoryrelieffromtheconstraintsoftheOPMsystemforrecruitingandhiringALJs.

Once the additional ALJs were hired, the Commission tackled the next challenge—the capacityconstraintofofficespaceandcourtrooms.AgainwithsupportfromtheCongress,fundsweremadeavailableinFY2008toexpandtheALJsuitetoaccommodatethedoublingofstaff.Thisrequiredotherofficestoshrink,atleasttemporarily,untiladditionalspacecouldbeacquired,preferablyintheCommission’scurrentbuilding.TheacquisitionofadditionalspacewasdifficultandtookmoretimeasthisrequiredcoordinatedeffortswithGeneralServicesAdministration(GSA)andnegotiationswiththebuildingowner,BostonProperties.

TheCommissionhasoccupiedspaceat500EStreetSWsincethebuildingwasconstructedin1987.UntilFY1995,theCommissionoccupiedthefirstsevenfloors.Duetodecliningworkloadandacutinfunding,in1995theCommissionvacatedthesecondfloorwheretherewereadditionalcourtrooms,theOfficeoftheALJ,andsomeothersmallerunits.Atthattime,theCommissionhadonlythreeALJsandbetween10to15activesection337proceedingsandwasabletooperatewiththetwoALJcourtroomsonthegroundfloor.Asnotedabove,theCommissionnowhassixALJsandhasaveragedover50active casespermonth sinceJanuary2008. Withmore judges andmore cases, lack ofavailablecourtroomspacetoholdtrialsandotherproceedingshinderstheCommission’sabilitytocompletecasesinatimelymanner.

TheCommissionnowhasaleaseforthesecondfloorspaceandwilltakepossessionofthatspaceandbeginrenovatingitbytheendofFY2010.TheCommissioncouldnothaveaccomplishedthiswithoutstrongsupportfromtheCongress.TheadditionalfundsprovidedinFY2010willallowtheCommissiontopaytheincreasedrent,aswellasthecostofbuildingoutthespaceforathirdcourtroomandotheroffices.Theprecisetimingofthattransferdependsonthetimingofthecurrenttenant’sdeparture

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(sometimebetweenMarch1andSeptember1,2010).Nonetheless,bythebeginningofFY2011,theCommissionwillincurafullyear’srentforthesecondfloorspace(justover$1.5millionperyear).WhiletherenovationstothesecondfloorspaceandthedevelopmentofthecourtroomwillbefundedinFY2010, related renovationswillbenecessary to rebalancespaceonotherovercrowdedfloorsassomeofficesrelocatetothesecondfloorinFY2011.Thus,theCommissionprojectsadditionalone-timerenovationcostsofabout$600,000willbeincurredinFY2011.

The Commission is Addressing Challenges to its Internal Operations

TheCommissionhasalongrecordoffiscalrestraintandprudentuseoftaxpayerfunds.Increasedfundingrequestshavebeenreasonableandtiedtothestatutorymission,specificworkloadchallenges,andspecificprojects.WhentheCongresshasprovidedfunds,theCommissionhasmetitschallengesandcompleteditsprojects.Forexample,theCommissionhasreceivedsignificantincreasedfundsinrecentyearstoaddressitsincreasedintellectualpropertyworkload,majorinfrastructureimprovementstotheElectronicDocumentInformationSystem(EDIS),andthepurchaseofanewfinancialsystem.Whileeachof theseeffortsposedchallenges in implementation,theCommissionhasalwaysusedtheadditionalfundstomeetthechallengesthatjustifiedtheincreasedfunding.Moreover,whentheanticipatedchallengesdidnotmaterialize,suchastheprojectedincreaseinimportinjurycaseloadduringFY2005–2006due to thepeakof thesunsetcycle, theCongresswaspromptlynotifiedofthe change in circumstances and the Commission’s pending appropriation request was reducedaccordingly.

Inthelastseveralyears,themajorchallengesfacedbytheCommissionhavebeenexternal—increasedcaseloadandtheinformationtechnology(IT)infrastructureusedtomanagethosecasesandinteractwithpartiestoCommissionproceedings.Nowthattheintellectualpropertycaseloadhasstabilizedandpersonnelhavebeenrebalancedtomeetthatchallenge,theCommissionneedstofocusoncriticalinternalchallengesthathavebeendeferredduetotheincreasedcaseload.Thesechallengesincludenetworkoperations,financialmanagement,andcontinuityplanning.Fundingfortheseactivitieshasbeendeferredduetobudgetconstraintsandmoremission-criticalpriorities.

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The FY 2010 expenditure plan and the FY 2011 appropriation request represent a significantcommitmenttomeetingtheseinternalchallenges.FundingisprovidedinFY2010,andisrequestedinFY2011,torebuildtheCommission’sagingnetworkinfrastructure,improvesecurity,andcompletethereplacementofdesktopequipment.Similarly,theCommissionisaggressivelyaddressingfinancialmanagement challenges in FY 2010 by providing additional resources to monitor and evaluatefinancialperformanceandtoensuretimelyproductionofcleanfinancialstatements.Further,theCommission is developing an enhanced and rigorous system of internal control thatwill includefinancialoperations,butalsosecurityandprogramoperations.Finally,theFY2011appropriationrequestseeksalmost$1millioninfundingtobeginaddressingamajorchallengetotheCommission’soperations—thelackofacomprehensiveCOOPPlanandanalternatefacilityforreconstitutionoftheCommission’snetworkinfrastructureandessentialfunctions.ThisdeficiencyhasbeennotedbytheInspectorGeneralinannualinformationsecurityreviewsforseveralyears,butrequiresasignificantcommitmentofresourcesoverseveralyearstoremedy.

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Management Initiatives for FY 2010–2011TheCommission’smanagementinitiatives,intendedtoimprovethequalityofitsperformanceanddeliveryofservicestotheCommission’scustomers,are:1)FinancialManagement,2)ContinuityofOperationsPlanning,3)OpenGovernmentInitiatives,and4)StrategicHumanCapitalPlanning.TheCommissionhasaddressedeachinitiativewithanapproachtomaximizeitsvalue.

Financial Management Issues Are Being Addressed

Prior to this year, theCommission received cleanfinancial statement opinions from independentoutsideauditorsineachyearaftertheAccountabilityofTaxDollarsActof2002implementedthecurrentInspectorGeneralfinancialstatementauditprocess.InFY2009theCommissionexperienceddifficultiesintransitioningtoanewsystemforrecording,monitoring,andreconcilingitsfinancialtransactions. Asa result, theCommissionwasunable togenerateyear-endfinancial statementswithinthetighttimeconstraintsrequiredbyOfficeofManagementandBudget(OMB).Theinabilitytoobtaintimelyandsufficientfinancialstatementsmeanttheauditorscouldnotexpressanopinionon theFY2009financial statement.Thus, theCommission receivedadisclaimer for itsfinancialstatementsforFY2009.

TheCommissioniscommittedtotheintegrityofitsfinancialinformation,includingtheprinciplesandobjectivesoftheFederalManagers’FinancialIntegrityActandtheAccountabilityofTaxDollarsActof2002,theaccountingprinciplesapprovedbytheFederalAccountingStandardsAdvisoryBoard,andtheguidanceprovidedinOMBCircularsA-123(Management’sResponsibility forInternalControl)andA-136(FinancialReportingRequirements).

TheCommissionhasimplementedacomplianceactionplantocompletethecloseoutofitsFY2009booksand to takecorrectiveactions intended to remedy the identifiedweaknesses in its internalcontrolsandfinancialsystems.Withtheseefforts,theCommissionintendstoreturntogoodstandingduringFY2010and to ensure that its futurefinancial statementsare timelyandaccurate. TheCommissionispreparingforare-auditoftheFY2009financialstatementsandanticipatescompletionoftheauditbytheendofMarch2010.TheCommissioniscurrentlysolicitingbidsonacontractto

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evaluatetheCommission’scurrentinternalcontrolsanddevelopacomprehensiveinternalcontrolsystemthatcomplieswithguidanceinOMBCircularA-123andotherapplicablefinanciallawsandregulations.Furthermore,theCommissionisundertakingareviewofitsorganizationalstructuretoensurethatadequateresourcesareallocatedtofinancialmanagement.Meanwhile,theCommissionisusingcontractorstofilltemporarygapsinfunctions.

Mandatory Continuity of Operations Plans Require Significant Resource Allocation

ThemostsignificantnewprojectrequiringfundinginFY2011isimplementationofaCOOPPlan.FederaldepartmentsandagenciesareunderaFederalInformationSecurityManagementAct(FISMA)mandatetodevelopandimplementCOOPPlansandcapabilities.TheCommissionhasonefacilityandonenetwork. AnydisasterthatwouldrenderthefacilityornetworkunusablewouldpreventtheCommissionfromaccomplishingitsmission.ACOOPPlanisdesignedtoaddressthisproblem.Thecompletionof thisprojecthasbeendelayed forseveralyearsdue to lackof fundingandhasbeennotedasasignificantdeficiencyintheCommission’sannualFISMAreview.TheCommission’sCOOPplanning contemplates a phased approach to implementation of actionable plans.AsbothinitialsetupandongoingoperationsareincrementaltotheCommission’sroutineoperations,takingaphasedapproachpermitsspreadingtheburdenofexpensesandresourcecommitmentsovertime.

InFY2010theCommissionwilladdresstwomajorcomponentsofaneffectiveCOOPcapability.First,theCommissionwillidentifycriticalITandoperationalinfrastructure.Thisidentifiedinfrastructureincludesanexpandedcapacitytosupporttelecommuting,anoff-sitespacesuitabletohostabackupnetwork,andspace toprocessdocumentfilings. Second, theCommissionwill recruita full-timeCOOPCoordinator to produce theCommission’s comprehensiveCOOPPlan. TheCOOPPlanwilladdressriskanalysis,identificationofthekeyfunctionsdirectlysupportingmissiongoalsandtheircontinuityrequirements,responseprocedures,andchainofcommandandreconstitutionscenarios.

FullfundingforthisprojectisneededinFY2011to:1)finalizetheCommission’sdraftCOOPPlan,2)engageintheoreticalandphysicaltestingoftheplan,3)acquireanalternateoperatingfacility,and4)acquireandinstallabackupnetworkcapability.FullcompliancewithCOOPmandateswillrequireseveralyearsofsignificantlyhigherresourceallocations.

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Open Government Initiatives Will Improve Public Access and Mission Accomplishment

TheCommissionconsidersopengovernmentgoalsduringtheinitiationphaseofeverymajorITprojectandinitsinvestmentreviewprocess.TheCommissionembracestechnologicalsolutionsthatimprovecustomer service and streamline internal processes. In FY 2009 the Commission achieved opengovernmentimprovementsthroughthreemajortechnologicalinitiatives:1)releaseofareengineeredEDIS,2)deploymentoftheHTSOnlineReferenceTool,and3)deploymentofaredesignedCommissionwebsite.

EDISisthecentralrepositoryforalldocumentsfiledinsupportofinvestigationsconductedbytheCommission.EDISoffersasecurefacilityforelectronicsubmissionofdocumentsnotrequiredtobefiledinpaperformunderCommissionregulations.PaperdocumentsarescannedandenteredintoEDISbyCommissionpersonnel.EDISalsoofferspublicaccesstothehistoryoffilingsandrelatedsummaryinformation,withextensivesafeguardstoprotectconfidentialandprivilegedinformation.InFY2009anewlyreengineeredEDISdeliveredsignificant improvements inoverallperformance,usability,andreliabilitytotheCommissionandtopublicusers.TherevisedEDISaddedanewhomepageontheWebwhichprovidescentralizedaccesstoallEDISfunctions,allowsuserstosubscribetoautomaticnotificationsofnewdocumentsubmissionsonacase-by-casebasis,andincorporatesenhancementstothedocumentapprovalprocessforimprovingcasemanagement.InFY2010theCommissionwill continue enhancingEDIS in the critical area of security, andwill consider rulechangestoexpandthecategoriesofdocumentseligibleforelectronicsubmission.

In FY 2009 the HTS Online Reference Tool provided users a web-based source for HTS-relatedinformation, 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)crossreferenceswhichenableuserstomovefromanHTSiteminchapters1–97tothetemporary,seasonal,orspecialsituationtariffthatappliesforthatitemaslistedinChapter99,and3)directlinksto footnotes,allowingusers tomove fromthe footnotenumber in the textdirectly to the footnoteitself.Search improvements include lookupbyword,wordcombinations,orHTSnumber,andanextensiblethesauruspermittingcross-referencingandcommonlanguagelookup.InFY2010further

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enhancements toHTSwill includeadatabaseupgrade to improvesecurity,speed,andefficiency,alongwithadditionalimprovementstocontentandsearchcapabilities,notably,theabilitytosearchpreviousversionsoftheHTS.

Theredesignof thepublicwebsite (http://www.usitc.gov) inFY2009hasdemonstrably improvedusersatisfaction,withenhancednavigationandsearchfacilities.Additionally,expandeduseofnewtechnologyforwebsitemanagementallowswebcontentmanagersinCommissionofficestoupdateandrefreshpublisheddatawithimprovedaccuracyandtimeliness,andwithoutextensiverelianceonITresources.

The Commission is aggressively implementing OMB’s Open Government Directive. The Directivecontainsanumberofrequirementsanddeadlines,includingtheidentificationandonlinepublicationofthreenewdatasetsnotpreviouslypublishedanddevelopmentofaplantoachieveopengovernmentobjectives.Historically,theCommissionhasmaintainedanopenposture,withextensivepublicationofwide-ranginginformationonnearlyeveryaspectofitsoperations.Nevertheless,theCommissionisdevelopingplans to identifyandpublish threenew “high-valuedatasets” inconformancewiththeDirective.ThisinformationwillrelatetokeyCommissionfunctionsandwillbeinformationthatcan:1)beusedtoincreaseaccountabilityandresponsiveness,2)improvepublicknowledgeoftheCommissionanditsoperations,3)furtherthecoremissionoftheCommission,and4)respondtoneedsanddemandsofpubliccustomers.ThiseffortwillbeledbyseniorexecutivesoftheCommissionwhowillbeaccountableforthequalityandobjectivityofallpublicdataandwillparticipateininter-agencyworkinggroupsestablishedbyOMB.

Strategic Human Capital Planning to Assure Continued High Performance

TheCommission’sabilitytoaccomplishitsmissionisdirectlytiedtothequalityandcompetencyofitsworkforce,whichincludesmanyhighlyskilledprofessionals.Personnelcostsaccountforalmost70 percent of theCommission’s budget. Therefore, it is critically important that theCommissionmanageitshumancapitalstrategically.TheSHCPisanessentialcomponentoftheCommission’sstrategicplanning.Itservesto:1)definehumancapitalgoals,2)summarizetheprojectedchangesintheworkforceassets,3)identifystrategiestoachievethehumancapitalgoals,and4)presentanactionplan for implementingthe interventionstrategies. Thepurposeof theSHCPis tohelpthe

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Commissionanticipatefuturehumancapital issuesandbegintakingstepstodaytoresolvethoseissuesortobepreparedtobetterrespondtothemwhentheyarise.Theseinitiativeswillensurethatthekeyprioritiesdescribedintheplanareachieved.

TheCommissionexpects theSHCPtobea living,evolvingdocument thatwillbemodifiedas theCommission reevaluates itsmission in light of experience and changing external circumstances.Accordingly,theCommission’sStrategicPlanningCommittee,whichiscomposedofseniormanagers,completedabi-annualreviewoftheSHCPinFY2009andrecommendedanumberofchangestotheplan.Amongtherecommendationswasareductioninpermanentstaffing,organizationalchangestoprovideforbettermanagementandoversightofvariousfunctions,andacomprehensiveindependentconsultant’sanalysisoftheintellectualpropertystrategicOperation.TheCommissioniscurrentlyreviewingtheconsultant’sreportandintendstoimplementcertainrecommendationsbytheendofMarch2010. Uponcompletionofthisreview,theCommissionwillundertakeasimilarreviewofadministrativefunctions.Tofacilitatethisongoingprocess,theCommissionhasallocatedFY2010funds to develop options specific to itsOffice of Administration. TheCommissionwill notify theCongressinadvanceofproposedorganizationalchangesasnecessary.

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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.”

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Strategic Operation No. 1: Import Injury Investigations

StrategicOperationNo.1coverstheCommission’sinvestigationsintotheeffectsofunfairlytradedimportsoranincreaseinimportsonaU.S.industryandappellatelitigationtodefendCommissiondecisions.Theseinclude:

• AntidumpingandCountervailingDuty(AD/CVD)investigations,fiveyear(sunset)reviews,andchangedcircumstancesreviewsundertitleVIIoftheTariffActof1930;

• globalsafeguardandmarketdisruptioninvestigationsundersections202,204,406,421,and422oftheTradeActof1974;

• safeguardinvestigationspursuanttovariousstatutesimplementingfreetradeagreements(FTAs)(e.g.,sections302and312oftheNorthAmericanFreeTradeAgreement(NAFTA)ImplementationActof1994);and

• WorldTradeOrganization(WTO)consistencyproceedingsrequestedbyUSTR,asprovidedinsection129(a)(4)oftheUruguayRoundAgreementsAct.

AllbutoneoftheCommission’simportinjurycaseloadinFY2009consistedofinvestigationsfallingundertitleVII.TheoneexceptionwasaChinasafeguardinvestigationundersection421.

Newimportinjuryinvestigationsusuallyareinitiatedinresponsetoapetitionforrelieffiledonbehalfofadomestic industry.ReviewsofoutstandingAD/CVDordersareconductedeveryfiveyearsaslongastheordersremainineffect.Overallcaseloadforimportinjuryinvestigationsaveragedaround13activecasespermonthfromFY2007through2009.NewinvestigationsincreasedasaresultofeconomicweaknessduringthesecondhalfofFY2009.Asvirtuallyallofthesenewinvestigationsresultedinaffirmativedeterminations,theirreturnforfinalinvestigations,alongwiththereturnoftransitionsunsetcases, isexpected to increasecaseload forFY2010and2011relative to recentyears.

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Antidumping and Countervailing Duty Investigations

In AD/CVD investigations, the Commission is required to determinewhether an industry in theUnitedStatesismateriallyinjuredorthreatenedwithmaterialinjury,orwhethertheestablishmentofanindustryintheUnitedStatesismateriallyretarded,byreasonofimportsofthemerchandisethatareunderinvestigation.TheDepartmentofCommerce(Commerce)isrequiredtodeterminewhetherimportedmerchandiseisbeingsoldintheUnitedStatesatlessthanfairvalue(ADinvestigations),orwhetheracountervailablesubsidyisbeingprovidedforthemanufacture,production,orexportationofmerchandiseimportedintotheUnitedStates(CVDinvestigations).

Under the current law, theCommissionmakes a preliminary determinationunder a “reasonableindication” standardwithin 45 days of the filing of the petition. If theCommission’s preliminarydeterminationisaffirmative,Commercemustcontinueitsinvestigationandmakepreliminaryandfinaldeterminationsconcerningtheallegedunfairtradepractice.IfCommerce’sfinaldeterminationis affirmative, the Commissionmust complete its ongoing investigation andmake a final injurydetermination. TheCommission conducts all AD/CVD investigations in accordancewith statutesthatimplementU.S.internationalobligations.

InFY2008and2009thenumberofpreliminaryAD/CVDinvestigations,whichreflectnewfilings,wasmorethandoublethenumberinFY2006andequaltoorhigherthanthelevelinFY2007.TheCommissionexperiencedan increase innewfilings in thesecondhalfofFY2009,with12of the15newfilingsoccurringduringthattime.Thisisconsistentwithobservedincreasesinnewfilingshistoricallyduringperiodsofeconomicweakness.TheCommissionprojectsnewfilingsinFY2010and2011toremainat levelssimilartothat inFY2009andcompleted investigations inFY2010tobehigherthaninFY2009reflectingthecompletionofcasesfiledlateinFY2009.InFY2009the Commission instituted 15 preliminary and 8 final AD/CVD investigations and completed 10preliminary and13final investigations.Mostnotable among thefinal investigations instituted inFY2009weretheAD/CVDinvestigationsconcerningoilcountrytubulargoodsfromChinawhichinvolvedaU.S.marketvaluedat$11.6billionin2008.TheCommissionprojectsacaseloadof16preliminary and 15 final investigations instituted and 16 preliminary and 15 final investigations

17

completedbothinFY2010and2011.(SeeStrategicOperationNo.1:ImportInjuryInvestigationsCaseload,p.23.)TheCommissioncharged28.5workyearsofdirectlabortoAD/CVDinvestigationsinFY2009.(SeeWorkyearsbyActivityandOffice,p.67.)

Sunset Reviews

Insunsetreviews,theCommissionevaluateswhethermaterialinjurytoaU.S.industrywouldlikelycontinue,orrecur,iftheAD/CVDorderunderreviewweretoberevoked.Areviewmustbeconductedon each AD/CVD order every five years as long as the order remains in effect. Reviewsmay beterminatedbyCommercebecauseofthedomesticindustry’slackofresponsetothenoticeofinitiation.Whenareviewisterminated,theunderlyingorder isrevoked. If thereviewisnotterminated,theCommissionwillconducteitheranexpeditedorafullreview.TheCommissionmayconductexpeditedreviewswhenitfindsthatresponsesofdomesticand/orforeigninterestedpartiestothenoticeofinstitutionareinadequate.AfullreviewoccurswhenthereisadequateparticipationfrombothsidesorwhentheCommissionotherwisefindsafullreviewiswarranted.Generally,theCommissionmustcompleteexpeditedreviewswithinfivemonthsof institutionandfullreviewswithin12monthsofinstitution.Theworkloadinexpeditedreviewsismostintenseduringthefinaltwomonths,whiletheworkloadinfullreviewsismostintenseduringthefinalsixmonths.

Whentherequirementforsunsetreviewwasfirstestablished,duringthetransitionperiodfrom1999to2001,morethan300AD/CVDordersissuedpriorto1995(transitionorders)werereviewedbytheCommission.ThetransitionordersthatremainedineffectasaresultofthefirstroundofreviewsreturnedforthesecondroundofreviewsbeginninginJanuary2004.ThenumberoftransitionsunsetreviewsreachedsustainedhighlevelsinFY2005and2006,andendedinJanuary2007,withmorethan 150 orders reviewed by theCommission. During FY 2008 therewere no transition sunsetreviews.ThethirdroundoftransitionsunsetreviewsbeganinFY2009andwillcontinuethroughFY2011.Whilethenumberoftransitionorderstobereviewedhasdecreased,ascomparedtothefirstandsecondrounds,thetotalnumberofreviewcasesinFY2010and2011willrisebecausethenumberofnon-transitioncaseswillbehigherthaninthepreviousrounds.

18

DuringFY2009theCommissioninstituted11groupedsunsetreviews.Inaddition,threereviewswereterminatedbyCommerce,andtheordersrevokedbecauseofnodomesticindustryresponse.Fortheremainingcases,theCommissiondeterminedtoconducteightfullreviewsandthreeexpeditedreviews.TheCommissioncompletedfivefullreviewsandfourexpeditedreviewsduringtheyear.(SeeStrategicOperationNo.1:ImportInjuryInvestigationsCaseload,p.23.)TwonotablefiveyearreviewsconductedbytheCommissioninFY2009involvedsteelconcretereinforcingbar(rebar)fromTurkeyandcarbonsteelplatefromChina,Russia,andUkraine.TheU.S.marketsfortheseproductswere$5.8billionin2007forrebarand$8.8billionin2009forcarbonsteelplate.TheCommissioncharged11.8orkyearsofdirectlabortosunsetreviewsinFY2009.(SeeWorkyearsbyActivityandOffice,p.67.)

Sunset reviews must be instituted five years after an AD/CVD order is issued or continued;consequently, the sunset caseload can be projectedwith relative accuracy five years in advance.Whilesunsetcaseloadisreasonablycertain,theconductofeachindividualproceeding(fullreview,expeditedreview,orterminationbecauseofnodomesticindustry)isnot.Thirteenofthe21reviewsthatwillbeinstitutedinFY2010willbenon-transitionreviews;thatis,reviewsofordersissuedafter1995.However,themajorityofreviewsthatwillbeinstitutedinFY2011willbetransitionreviews.Inplanningresourceallocationsforsunsetreviews,theCommissionassumesthatthesametypeofreview(expeditedorfull)willoccurinthesecondorthirdroundasoccurredinthepreviousround,unlesstheorderatissuehasneverbeenthesubjectofafullreview.Forinitialreviews,theCommissionfollowshistoricaltrendsandassumesthatmulti-countryorderswillreceivefullreviewandtheremainderwillbesplitbetweenexpeditedreviewsandthosethatareterminatedbecauseofnodomesticinterest.Applyingthisestimationmethodtothescheduledreviews,theCommissionanticipatesinstitutionof14fullreviewsand7expeditedreviewsinFY2010.InFY2011theCommissionexpectstoinstitute36reviews,with26beingfulland10beingexpedited.(SeeStrategicOperationNo.1:ImportInjuryInvestigationsCaseload,p.23.)TheCommissionassumesthatonaverageabouttworeviewsperyearwillberevokedbyCommerceduetolackofdomesticinterest.ReviewsinitiatedinFY2010willcover53ordersandthoseinitiatedinFY2011willcover80orders.

19

Other Import Injury Investigations

Otherimportinjuryinvestigationsincludesafeguardinvestigations,changedcircumstancesreviews,remandswith reopened records, andWTO consistency proceedings. Safeguard investigations areconductedpursuanttosections202,204,406,421,and422oftheTradeActof1974andstatutoryprovisions inFTAs (e.g., sections302and312of theNAFTA ImplementationAct). Insection204investigations the Commissionmonitors industry adjustment efforts; reports to the President ontheprobableeconomiceffectofthereduction,modification,termination,orextensionofanyreliefthatisineffect;orevaluatestheeffectivenessofanyreliefprovidedafteritstermination.Insection421investigationstheCommissiondetermineswhetherincreasedimportsfromChinacausemarketdisruptiontotheU.S.industry.InchangedcircumstancesreviewstheCommissionevaluateswhether,inlightofchangedcircumstances,materialinjurytoaU.S.industrywouldlikelycontinue,orrecur,if theAD/CVDorderunderreviewisrevoked.InremandswithreopenedrecordstheCommissioncollectsandanalyzesnewinformation inresponsetoanorder fromoneof itsreviewingcourtsorbodies.

Therehavebeennonewglobalsafeguardpetitionsfiledundersection201oftheTradeActof1974inthelastsixyears.InFY2009theCommissiondidnotinitiateanyglobalsafeguardinvestigationsoranychangedcircumstancesreviews.However,inFY2009theCommissiondidconductoneChinasafeguardinvestigation,inadditiontotworemandinvestigationsinwhichtherecordwasreopened.TheChinasafeguardinvestigationcoveredcertainpassengerandlighttrucktires.TheU.S.marketforthosetiresisvaluedat$16.5billion.TheCommissioncharged1.8workyearsofdirectlabortootherimportinjuryinvestigationsinFY2009.(SeeWorkyearsbyActivityandOffice,p.67.)Basedonhistoricalaverages,theCommissionanticipatesreopeningtherecordinalimitednumberofremandsinbothFY2010and2011.(SeeStrategicOperationNo.1:ImportInjuryInvestigationsCaseload,p.23.)

20

Litigation

IfanappealchallengingaCommissiontitleVIIdeterminationisfiledintheU.S.CourtofInternationalTrade(CIT),orbeforeabinationalreviewpanelunderNAFTA,theOfficeoftheGeneralCounsel(OGC)defends theCommission’sdetermination.OGCalso represents theCommission inappealsofCITdecisionstotheU.S.CourtofAppealsfortheFederalCircuit(FederalCircuit).IfthereisadisputebroughtbeforetheWTOinvolvingaCommissionimportinjurydetermination,OGCassistsUSTRindefendingthatdetermination.

InFY2009,14newcaseswerefiledintheCITortheFederalCircuitinvolvingchallengestoCommissiondeterminationsininjuryinvestigationsandsunsetreviews.ThisnumberofnewappealswasinkeepingwiththenumberofnewappealsfiledinFY2008,when13appealschallengingtheCommission’stitleVIIdeterminationswerefiledintheFederalcourts.Inadditiontotheseappeals,12newappealschallengingtheactionsoftheCommissionandCustomsundertheContinuedDumpingandSubsidyOffsetAct(the“ByrdAmendment”)werefiledinFederalcourtsinFY2009.ThisisadeclinefromthenumberofnewappealsundertheByrdAmendmentinFY2008,when21suchappealswerefiled,andlikelyreflectstherepealoftheByrdAmendmenteffectiveforsubjectimportsenteredafterOctober1,2007.

DuringFY2009OGCfiled17majorbriefsandtworemanddeterminations.AlsoduringFY2009OGCrepresentedtheCommissioninfiveoralargumentsinAD/CVDcasesbeforeU.S.courts.OGCalsoassistedUSTRinthepreparationofanumberoffilingsinWTOdisputesconcerningdumpingandsubsidization.TheCommissioncharged4.8workyearsofdirectlabortoimportinjurylitigationbefore eitherdomestic courtsor internationalpanels inFY2009. (SeeWorkyearsbyActivityandOffice,p.67.)AsofSeptember2009,69appealsinvolvingCommissiontitleVIIdeterminationswerependingattheCITandtheFederalCircuit.Inaddition,twodisputesinvolvingtheCommission’stitleVIIdeterminationswerependingbeforeNAFTApanels,andthreedisputeswerependingbeforetheWTO.ThenumberofappealspendinginthesevenuesattheendofSeptember2009remainedatthehistoricallyhighlevelsseeninSeptember2008,when67suchappealswerependingintheFederalcourtsandsixdisputeswerependingbeforeNAFTAorWTOpanels.

21

Resource Requirements and Workload for Import Injury Investigations

Intheaggregate,StrategicOperationNo.1utilized28.6percentoftheCommission’sresourcesinFY2009(seeDollarCost:ComparisonbyStrategicOperation,p.64),amountingto$21.5million(seeBudgetSummarybyStrategicOperation,p.66).InFY2009StrategicOperationNo.1accountedfordirectcostsof$12.5millionand75workyears.(SeeStrategicOperationNo.1:ImportInjuryInvestigationsResourceRequirements,p.22.)InFY2009fiveofficestogetheraccountedforapproximately80percentofthedirectworkyears.TheOfficeofInvestigations,theCommissioners’offices,andOGCcontributed19.6,15.8and10.8workyears,respectively,whiletheOfficeofEconomicsandtheOfficeofIndustriescontributed8.2and5.2workyears,respectively.(SeeWorkyearsbyActivityandOffice,p.67.)

DuringFY2009theCommissioninstituted36groupedimportinjuryinvestigations,includingsunsetreviews,andcompleted35.TheCommissionprojectsthat54investigationswillbeinstitutedand47willbecompletedinFY2010,andthat69willbeinstitutedand58willbecompletedinFY2011.AsofDecember2009,therewere13activeimportinjuryinvestigationspendingattheCommission.(SeeStrategicOperationNo.1:ImportInjuryInvestigationsCaseload,p.23.)

InitsFiscalYear2010and2011PerformancePlans(seeattached),theCommissionhassetgoalsdesigned to improve itsperformance in conducting import injury investigations. TheCommissionregularlyissuesusersurveys,solicitingfeedbackfromthetradebarregardingprocessimprovements.TheCommissionwillcontinuetoseektoimprovepublicaccesstoinformationaboutitsprocedures,primarilythroughdesignenhancementstoitswebsite,andwillensurethatproceduresarefairandproperlyimplementedandproceedingsarecompletedontime.Forexample,processenhancementshave yielded improvements in timely availability of casefilings.As a result, theCommissionhasexceeded the targets set in itsPerformancePlan forposting informationonEDIS. Inaddition, inFY2009theCommissionreleasedareengineeredversionofEDIS.Thenewhardwarearchitectureandanupdatedsoftwaresuite,which ismoreuser-friendlyandmaintainable,have improvedtheoverallperformanceofthesystem.Todate,thenewversionofEDIShasbeenamorereliableandstablesystemthan itspredecessor. TheCommission launchedaredesignof itsentirewebsite inlateFY2009withafocusonimprovingthesearchandnavigationcapabilitiesduringFY2009.TheCommissionexpectsthattheseimprovementswillbenefittheagencyandoutsideparties,particularlyascaseloadlevelsincreaseinFY2010and2011.

22

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

Category of ObligationFY 2009 Actual FY 2010 Estimate FY 2011 Estimate FY 2010–11 Change

Workyears Dollars Workyears Dollars Workyears Dollars Workyears Dollars

A. Direct Costs 2

Personnel Compensation 75 $8,708 76 $8,995 78 $9,595 2 $600

Benefits 2,172 2,304 2,486 182

Rent 1,602 1,623 1,637 14

Travel and Transportation 28 41 50 9

Subtotal 75 $12,510 76 $12,963 78 $13,768 2 $805

B. Indirect Costs 3


Benefits 878 935 941 6

Rent 718 727 732 6


Training 150 135 167 32

Equipment, Equipment Rental, Communication 629 752 889 138

Printing, Reproduction, Postage 145 139 140 1

Land and Structures 29 105 90 -15

Services 2,552 2,984 3,028 42

Supplies 251 255 261 6

Subtotal 33 $9,012 33 $9,821 33 $10,062 0 $241

Total Resource Requirements 108 $21,523 109 $22,784 111 $23,830 2 $1,046 1 Totals may not add up due to rounding.2 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.

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

23

Strategic Operation No. 1: Import Injury Investigations Caseload

Instituted Investigations, FY 2006–2011

0

10

20

30

40

50

60

70

80

2011*2010*2009200820072006

Completed Investigations, FY 2006–2011

0

10

20

30

40

50

60

2011*2010*2009200820072006

* Estimate

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

0

5

10

15

20

25

30

DNOSAJJMAMFJDNOSAJJMAMFJDNOSAJJMAMFJDNOSAJJMAMFJDNO

† Active during the month Source: Office of Investigations

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

Summary of Import Injury Investigations, FY 2006–2011

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Type and Status actual actual actual actual estimate estimateImport Injury InvestigationsInstituted

Preliminary Title VII1 ......................5 13 13 15 16 16Final Title VII1 ................................4 6 16 8 15 15Other2 ............................................1 2 3 2 2 2Full Sunset3 .................................11 7 6 8 14 26Expedited Sunset3 ........................7 6 5 3 7 10

Total.........................................28 34 43 36 54 69Completed

Preliminary Title VII1 ......................6 9 18 10 16 16Final Title VII1 ................................6 3 12 13 15 15Other2 ............................................3 3 2 3 2 2Full Sunset ..................................22 10 7 5 8 14Expedited Sunset........................13 6 4 4 6 11

Total.........................................50 31 43 35 47 581 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.

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

Section337oftheTariffActof1930,asamended,authorizestheCommissiontoinvestigateallegedunfairmethodsofcompetitionandunfairactsintheimportationofarticlesintotheUnitedStates,orintheirsale.MostoftheseinvestigationsinvolveallegationsrelatingtoinfringementofU.S.patentsandtrademarks. If theCommissionfindsaviolation, itmay issueanexclusionorderbarring theimportedproductfromentryintotheUnitedStates,anditmayalsodirectarespondenttoceaseanddesistfromengagingintheunfairpractices.Theviolationofaceaseanddesistordercanbepunishedbycivilpenaltiesofupto$100,000adayortwicethedomesticvalueofthearticlesenteredorsold.ThePresidentmay, forpolicyreasons,disapproveCommissionexclusionand/orceaseanddesistorderswithin60daysoftheirissuance.CommissiondeterminationsmaybeappealedtotheFederalCircuit.

Section337investigationsnormallyareinstitutedafteraprivatepartyfilesacomplaint.Mostphasesof these trial type investigations must be conducted in conformity with the formal adjudicationprovisionsoftheAdministrativeProcedureAct.TheCommissionisrequiredtodeterminewhetherthere has been a violation of section 337 and, if so, the appropriate remedy to be imposed. TheCommissionendeavorstoconcludesection337investigationsasexpeditiouslyaspossible,preferablylessthan18monthsafterinstitution.

The Commission’s ALJs, with the assistance of their staff, conduct conferences and trials, issueinitialdeterminations,andfacilitateandapprovesettlementagreements.TheOfficeofUnfairImportInvestigations (OUII) represents the public interest, investigates the factual and legal bases forallegationspresentedinsection337complaints,developsevidencethroughdiscovery,andparticipatesin trials. The determinations of the ALJs are subject to discretionary review or adoption by theCommission.OGCprovidesadvicetotheCommissionersduringthereviewprocessanddefendsthefinalCommissiondecisionduringanysubsequentappeal.

25

Section337investigationsusuallyinvolvecomplexfactualandlegaldeterminations.Thespectrumofproductsandintellectualpropertyrightsthathavebeenthesubjectofsection337investigationsisverybroad.Nevertheless,almost60percentof the85 investigationsactive inFY2009involvedintegratedcircuit,computer,telecommunications,andotherelectronictechnologies,includinglaserdiodes,liquidcrystaldisplays,andcellulartelephones.Chemicalcompositionsandprocesses,surgicalsystems,constructionequipment,andwindturbineswereamongthemanyothertechnologiesatissueinsection337investigationsthisyear.Avarietyofconsumeritems,rangingfrominkcartridgestorefrigerators,werealsothefocusofinvestigationsconductedduringFY2009.

Thenumberofnewsection337proceedingscommencedinFY2009wasinkeepingwiththeelevatedlevelofnewproceedingsexperiencedintheyearssinceFY2004,butbelowtherecordlevelreachedinFY2008.TheCommissionexpectsthesection337caseloadwillcontinueatahigh level inFY2010and2011.Theaveragenumberofnewsection337matterscommencedduringthefiveyearperiod fromFY2000–2004 rose fromanaverageof22newproceedings toanaverageof38newproceedingsperyearintheperiodfromFY2005–2009,orbymorethan70percent.Asthenumberofnewmattersperyearhasincreased,sohasthetotalnumberofsection337mattersactiveduringthecourseofayear.Whereas44matterswereactiveduringallofFY2004,atotalof85matterswereactiveduringthecourseofFY2009.(SeeStrategicOperationNo.2:IntellectualProperty-BasedImportInvestigationsCaseload,p.29.)AlthoughthenumberofnewmatterscommencedinFY2009wasbelowtherecordlevelofthepreviousyear,thelevelofnewmattersremainedconsistentwiththeelevatedlevelsofnewproceedingstheCommissionexperiencedinFY2006and2007.

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 newcomplaintsofviolationsofthestatute,aswellassevennewancillaryproceedingsrelatingtopriorinvestigations.Another44investigationsandancillaryproceedingscarriedoverfromFY2008.InFY2009Commissionpersonnelspent44.2workyearsonsection337investigationsand4.3workyearsonsection337litigation.(SeeWorkyearsbyActivityandOffice,p.67.)Asaresultofthisheavyinvestigativecaseload,theamountofappellatelitigationisalsoexpectedtoremainhighinFY2010and2011.

ThedoublingofthecaseloadbetweenFY2004and2008ledtheCommissiontoapprovetheadditionofasixthALJpositionandrelatedstaff in2008.Theadditionof thesixthALJ,whobeganworkat theCommission inDecember 2008,was intended to allow for amore reasonable distribution

26

of the increasedcaseloadamongtheALJsand facilitate theexpeditiousresolutionofsection337investigations.However,schedulingofproceedingshasbeenhamperedbyalackofcourtroomspace.Toaddressthisconstraint,theCommissionhasleasedthesecondfloorofitsbuildingandwilltakepossessionduringFY2010(sometimebetweenMarch1andSeptember1,2010,dependingonthecurrenttenant’sdepartureplans).TheleaseiscoterminouswiththeCommission’sleaseoftherestofthebuildingandwillexpirein2017.TheCommissionplanstobuildathirdcourtroomassoonasittakespossessionofthisspace.

Resource Requirements and Workload for Intellectual Property-Based Import Investigations

Intheaggregate,StrategicOperationNo.2utilized26.0percentoftheCommission’sresourcesinFY2009(seeDollarCost:ComparisonbyStrategicOperation,p.64),amountingto$19.6million(seeBudgetSummarybyStrategicOperation,p.66).Intermsofdirectcosts,StrategicOperationNo.2accountedfor$11.0millioninFY2009,with63workyearschargedtoit.(SeeStrategicOperationNo.2:IntellectualPropertyBasedImportInvestigationsResourceRequirements,p.28.)OfficeschargingdirectworkyearstothisstrategicOperationinFY2009includedOUII(19.7workyears),theOfficeoftheALJs(17.7workyears),andOGC(11.1workyears).(SeeWorkyearsbyActivityandOffice,p.67.)

DuringOctober2009,49section337proceedingswereactiveattheCommissionascomparedto50inOctober2008.TheCommissionprojectsthatapproximately42newinvestigationsandancillaryproceedingswillbeinstitutedinbothFY2010and2011.DuringFY2009theCommissioncompleted40investigationsandancillaryproceedings.TheCommissionprojectsthecompletionofapproximately45investigationsandancillaryproceedingsinbothFY2010and2011.(SeeStrategicOperationNo.2:IntellectualProperty-BasedImportInvestigationsCaseload,p.29.)

At the end of FY 2009, 26 appeals from14 section 337 determinationswere pending before theFederalCircuit.Fortyotherappealswerelitigatedtocompletion,dismissedforjurisdictionalreasons,orvoluntarilydismissedbyappellantsduringFY2009.Theaveragenumberofpendingappealsofsection337appealsduringthisfiscalyearincreasedoverthealreadyhighnumberinFY2008.TheFederal Circuit held oral argument in seven section 337 cases. Six cases related toCommissionsection337investigationswerependingintheU.S.districtcourtsduringFY2009,andoralargumentwasheld in two of these. The averagenumber of pending appeals of section337determinations

27

duringFY2009remainedabovehistoricallevels,reflectingtheincreasednumberandcomplexityofsection337investigationsfiledinrecentyears.InFY2009theCommissioncharged4.3workyearstosection337appellatelitigation.(SeeWorkyearsbyActivityandOffice,p.67.)

InitsFiscalYear2010and2011PerformancePlans(seeattached),theCommissionhassetgoalsdesignedtoimproveitsperformanceinconductingintellectualproperty-basedimportinvestigations.TheCommissionwillcontinuetoseektocompleteproceedingsexpeditiously,increasetheeffectivenessofagencyorders,andenhancetheprovisionofinformationtothepublicaboutthesection337process.TheCommissionwillworktoensurethatdeadlinesinsection337proceedingsaremetandthatsuchproceedingsarecompletedasquicklyaspossible.Toassistinmeetingthechallengesofitsincreasedsection337workload,theCommissionhas:1)hiredasixthALJinFY2009,2)acquiredadditionalspacewhichwill includeathirdcourtroominFY2010,3) launchedapilotmediationprograminFY2009tohelpreducethenumberofcasesthatarefullylitigated,and4)retainedaconsultanttoperformacomprehensiveindependentreviewofStrategicOperationNo.2.

InFY2009theCommissionlaunchedaredesignofitsentirewebsiteinanefforttoimprovepublicaccesstoinformationaboutitssection337proceedings.AlsoinFY2009theCommissionreengineeredEDISwhichresultedinimprovedperformanceintermsofthespeedwithwhichdocumentsaremadeavailableforviewing.

DuringFY2009CommissionpersonnelprovidedschedulinginformationrelatingtotheissuanceofexclusionorderstoCustomsonaperiodicbasis,andwillcontinuetodosoinFY2010.

28

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


Workyears Dollars Workyears Dollars Workyears Dollars Workyears DollarsA. Direct Costs 2


Benefits 1,872 1,984 2,165 180

Rent 1,604 2,410 2,925 516


Subtotal 63 $11,007 65 $12,181 67 $13,478 2 $1,297

B. Indirect Costs 3


Benefits 837 894 984 90

Rent 718 924 1,056 132


Training 126 111 144 33

Equipment, Equipment Rental, Communication 607 1,463 1,605 142



Services 2,432 2,843 2,862 20

Supplies 252 324 361 37

Subtotal 33 $8,600 33 $10,911 34 $11,586 1 $675

Total Resouce Requirements 96 $19,607 98 $23,092 101 $25,064 3 $1,972 1 Totals may not add up due to rounding.2 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




29

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

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


0

10

20

30

40

50

2011*2010*2009200820072006


0

10

20

30

40

50

2011*2010*2009200820072006

* Estimate

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

0

10

20

30

40

50

60


† Active during the month Source: Office of Unfair Import Investigations

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

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Status actual actual actual actual estimate estimate

Instituted ................................................ 40 33 50 36 42 42

Active ..................................................... 70 73 88 85 85 85

Completed ............................................. 30 35 39 40 45 45

30

Strategic Operation No. 3: Industry and Economic Analysis

The industryandeconomicanalysisprovidedby theCommissionsupports tradenegotiatorsandtradepolicymakersinthelegislativeandexecutivebranchesthroughtimelyandobjectiveanalyticreportsandotherproducts.Bymaintaining thehighest level of industry, economic, and regionaltrade expertise, the Commission is a recognized leader in independent research and analysis ofinternationaltradeandindustrycompetitiveness.CommissioneffortsinthisstrategicOperationtaketwoforms.Instatutoryinvestigations,theCommissionrespondstostatutorilyauthorizedrequestsofthelegislativeandexecutivebranches.TheserequestsresultinofficialinvestigativereportsthatpresentCommissionanalysisandfindingsontherequestedtopic.TheCommission’sindustryandeconomicexpertsalso conductother (non-statutory) researchandanalysis inareasof significantimportancetotheU.S.economy.TheseeffortsfocusondevelopingtheexpertisenecessarytosupportstatutoryworkinStrategicOperationNos.1,3,and4,aswellastechnicalsupportprovidedunderStrategicOperationNo.5.Theworkinthisareacontributestofutureworkrequestedunderstatutoryauthorityandoftenculminatesinpublishedstaffpapersandarticles.

Statutory Investigations

StatutoryinvestigationsconductedbytheCommissionunderStrategicOperationNo.3generallyfallintothreebroadcategories:

• General Factfinding and Analytical Investigations,whichincludenon-recurringandrecurringinvestigationsconductedpursuanttosection332oftheTariffActof1930;

• Probable Economic Effect Investigations,whichinclude investigationsrequiredbysection131oftheTradeActof1974andbysection103requirementsofvarioustradeagreementimplementationacts;and

• Assessments of Negotiated Trade Agreements,whichincludeinvestigationsregardingtheeffectsofnegotiatedFTAs,asmandatedbysection2104oftheTradeActof2002.

31

In addition, the Commission conducts other types of statutory investigations. The CommissionpublishesThe Year in Trade: Operation of the Trade Agreements Programannually,asrequiredbysection163(c)oftheTradeActof1974.

Statutory investigations often involve: 1) public hearings, 2)written or telephone surveys ofU.S.producers,importers,andconsumers,3)domesticandforeignfieldwork,4)interviewswithindustry,government,andacademicexperts,5)extensiveliteraturereviews,6)datacompilation,and7)analysis.Investigationstypicallylast3to12months,butcanvaryconsiderablyoutsidethatrangeasaresultofthecomplexityorurgencyofthesubjectmatterpursuanttotherequest.Likewise,staffingcanvaryconsiderably,fromafewto50ormoreteammembersconsistingoftradeanalysts,economists,andattorneys.

During FY 2009 the Commission had 22 active investigations, completed 10 investigations, andinstituted 9 new investigations. (See Strategic Operation No. 3: Industry and Economic AnalysisInvestigationsCaseload,p.40.)Thenumberofactiveinvestigationspermonthdeclinedfromahighof25inApril2008to8byJanuary2009andaveraged10forallofFY2009.Asaresultworkyearschargedtotheseinvestigationsdecreasedfrom51.3inFY2008to32.6inFY2009.(SeeWorkyearsbyActivityandOffice,p.67.)AtemporarydeclineinworkloadinthisstrategicOperationiscommoninapresidentialelectionyearorwhenthereisachangeinadministrations,butisnotexpectedtosignaladecliningneedfortheCommission’seconomicanalysisinFY2010and2011.

General Factfinding and Analytical Investigations

TheCommissionconductsgeneralfactfindingandanalyticalinvestigationsregardingtrade,tariff,andcompetitivenessissuespursuanttosection332(g)oftheTariffActof1930.Thisprovisionauthorizes:1)thePresidentthroughtheUSTR,2)theHouseCommitteeonWaysandMeans,or3)theSenateCommitteeonFinancetodirecttheCommissiontoconductspecifictrade-relatedinvestigationsandtoreportitsfindings.TheCommissionisalsoauthorizedtoself-initiateinvestigationsandstudiesontrademattersundersection332(b).Section332investigationscantakeseveralformsandapproaches,suchas:

• examiningspecific foreign industriesorcountries for thepurposeof identifyingexistingforeign tariffs,nontariffbarriers,andotherbackground information toassistU.S. tradenegotiators;

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• monitoringandreportingonspecificcountriesor regionsregardingeconomicand tradeactivitiesasspecifiedbytherequestor;and

• analyzingspecificindustriesandproductsandprovidinginformationregardingtheconditionsofcompetitioninU.S.andforeignmarkets,tradelevelsandtrends,andgovernmentpoliciesaffectingtheindustries.

USTR and the Congress often request one-time industry and economic analysis investigationsthatincludetimecriticalinformationoncurrenteconomicissues.Requestscanalsotaketheformof recurring ormulti-year investigations. In those cases, reportsmaybedelivered over a specifictimeframe,suchasyearly,overfiveyears,oruntilterminated.InFY2009Commissionstaffcharged27.7workyearstogeneralfactfindingandanalyticalinvestigations.

TheCommissioncompletedfournon-recurringinvestigationsduringFY2009,downfrom12inFY2008.Highlightsoftheseselectedstudiesfollow:

• Advice Concerning Possible Modifications to the U.S. Generalized System ofPreferences,2008ReviewofAdditionsandRemovals, Inv.No.332-500 (Pub.4057,January2009).ThisreportprovidesadviceonhowcompetingU.S.industriesmaybeaffectedbytheadditionof11HTSsubheadingstothe listofarticleseligible for theGeneralizedSystemofPreference(GSP)andtheremovaloftwoHTSsubheadingsfromduty-freestatusfromcertainbeneficiarydevelopingcountries.

• Property and Casualty Insurance Services: Competitive Conditions in ForeignMarkets,Inv.No.332-499(Pub.4068,March2009).Thisreportprovidesanoverviewoftheglobalmarketforpropertyandcasualtyinsuranceservices;examinesthenatureandextentoftradeinpropertyandcasualtyinsuranceservices;andidentifiesandexaminespolicies and practices that affect U.S. firms’ access to, and competitiveness in, foreignmarketsforsuchservices.

• Advice Concerning Possible Modifications to the U.S. Generalized System ofPreferences,2008ReviewofCompetitiveNeedLimitWaivers,Inv.No.332-506(Pub.4074,April2009).ThisreportprovidesadviceastotheimpactofgrantingawaivertothecompetitiveneedlimitforIndonesiaforPETresin,toArgentinaforcertainfull-grainunsplitbovine(notbuffalo)andequineleather;andtoTurkeyforcopperwirestrand.

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• Sub-Saharan African Textile and Apparel Inputs: Potential for CompetitiveProduction,Inv.No.332-502(Pub.4078,May2009).Thisreportidentifiesyarns,fabrics,and other textile and apparel inputs that can be produced competitively in beneficiarysub-SaharanAfricancountriesthroughneworincreasedinvestmentorothermeasures.

TheCommissioncompletedreportsonninemulti–year(recurring)investigationsinFY2009.

• EthylAlcoholforFuelUse:DeterminationoftheBaseQuantityofImports,Inv.No.332-288(December2008)

• ShiftsinU.S.MerchandiseTrade2007AnnualReport,Inv.No.332-345T(Pub.4044,December2008)

• MonitoringofU.S.ImportsofTomatoes,Inv.No.332-350(Pub.4048,November2008)

• MonitoringofU.S.ImportsofPeppers,Inv.No.332-351(Pub.4049,November2008)

• Sub-SaharanAfrica:EffectsofInfrastructureConditionsonExportCompetitiveness,ThirdAnnualReport,Inv.No.332-477(Pub.4071,April2009)

• RecentTrendsinU.S.ServicesTrade2009AnnualReport,Inv.No.332-345R(Pub.4084,June2009)

• ShiftsinU.S.MerchandiseTrade2008AnnualReport,Inv.No.332-345T(Pub.4089,July2009)

• TheEconomicEffectsofSignificantU.S.ImportRestraints,SixthUpdate2009,Inv.No.332-325(Pub.4094,August2009)

• The Impactof theCaribbeanBasinEconomicRecoveryAct, Inv.No.332-227 (Pub.4102,September2009)

Probable Economic Effect Investigations

TheCommissionassessesthepotentialimpactofproposedFTAsonspecificsectorsoftheeconomyand for specific line items in the HTS. These investigations are conducted primarily under theauthorityof:1)section131oftheTradeActof1974,2)section2104(b)(2)oftheTradeActof2002,

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and3)section103ofcertainFTAimplementationacts,suchastheNAFTAImplementationAct.InFY2009Commissionstaffcharged1.2workyearstothisactivity,adecreasefrom2.1workyearsinFY2008.

Section 131 investigations involve line item advice forU.S. negotiators as they prepare for tradenegotiations. Section 2104(b)(2) investigations involve advice to negotiators regarding the impactof liberalizing trade for sensitive agricultural products. The Commission consolidates these twoinvestigationsfornegotiationsintoonereportonprobableeconomiceffectsfornegotiators.Section103investigationsanalyzethelikelyeffectofmodificationtotherulesoforiginunderspecifictradeagreements.

TheCommissioncompletedthreeSection103rules-of-origininvestigationsduringFY2009.

• ViscoseRayonStapleFiber:ProbableEffectofModificationofU.S.-AustraliaFreeTradeAgreementRulesofOrigin,Inv.No.103-21(Pub.4041,October2008)

• ProbableEconomicEffectofCertainModificationstotheUnitedStates-ChileFreeTradeAgreementRulesofOrigin,Inv.No.103-19(Pub.4042,October2008)

• CertainYarnsandFabrics,FiscalYear2009:EffectsofModificationofU.S.-SingaporeFTARulesofOrigin,Inv.No.103-22(Pub.4096,August2009)

Assessments of Negotiated Trade Agreements

TheCommissionassessesthelikelyeconomywideandselectedsectoraleffectsofnegotiatedFTAsasmandatedbysection2104(f)oftheTradeActof2002.TheactrequirestheCommissiontoanalyzethelikelyeffectsofnegotiatedtradeagreementsontheU.S.economyandonspecificU.S.economicsectors,includingtheeffectsonU.S.grossdomesticproduct,trade,employment,andconsumers.

USTRisrequiredtorequestthestudyatleast90dayspriortothesigningofatradeagreement.TheCommissionisrequiredtosubmititsreporttotheCongressandUSTRnolaterthan90daysaftersigning.Hence,thesereportsareoftenreferredtoas“9090”studies.TheCommissionwasnottaskedwithandthereforedidnotcompleteinvestigationsregardingFTAsduringFY2009orFY2008.

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Other Statutory Investigations

Inadditiontothethreemajortypesofstatutoryinvestigations,theCommissionconductsanannualinvestigation regarding theOperation of the Trade Agreements Program each year as required bysection163(c)oftheTradeActof1974.SeeThe Year in Trade 2008: Operation of the Trade Agreements Program, Inv.No.163-001 (Pub.4091,July2009).DuringFY2009 theCommissioncharged1.8workyearstothisactivity,downfrom5.3workyearsinFY2008,whentherewerethreestudies.

Other Industry and Economic Analysis Activities

Other industry and economic analysis activities include the production of an extensive array ofstaffpublicationsontopicalandemergingtradeissues,andthedeliveryofpresentationstomanygovernmentagenciesandprivategroups.Commission industryanalystsandresearcheconomistsmustmaintainexpertknowledgeoftheU.S.andglobaleconomiesandhaveahighlevelofindustry,regional, and economic expertise. This expertise is frequently called upon by trade policymakersin the executive and legislative branches for informal assistance and counsel. Staff publicationsand presentations are intended to keep theCommission and trade policymakers informed of thelatestdevelopmentsintheinternationaltradearenathatpotentiallyaffectspecificU.S.industries.Preparationoftradepublications,formalpresentations,andparticipationinsupportingactivitiesareessentialtomaintainingstaffknowledge,skills,andabilities.

Staff research initiatives include articles in theJournal of International Commerce and Economics(JICE), staff research studies, conference/working papers, and research notes/publications. Thenumberofcompletedinitiativesincreasedfrom93inFY2008to99inFY2009.Thetimespentontheseactivitiesshifted fromproducingJICEarticles,conference/workingpapersandpublicationstowardproducingindustrysummariesandconcise,analyticalproducts(specifically,anewcategoryofExecutiveBriefingsonTrade).Staffproduced40ExecutiveBriefingsonTrade,primarilyintendedtoinformtheCommissionersonselecttrade-relatedtopics.Commissionstaffincreaseditseffortsonresearchandexpertise-buildinginitiativesfrom19.0workyearsinFY2008to35.8workyearsinFY2009.(SeeWorkyearsbyActivityandOffice,p.67.)InFY2009thelargestworkyearincreaseswereinindustryandtradesummaries(upfrom1.6inFY2008to5.7workyearsinFY2009),staffstudiesand

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workingpapers(upfrom4.6inFY2008to8.7workyearsinFY2009),India/Indiaservices,ExecutiveBriefingsonTrade,andenergyandenvironment(allnewinFY2009with2.7,2.0and1.5workyears,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. Thesemethodsincludesurveymethodsandstatistical,econometric,andsimulationanalyses.InFY2009Commission staff charged 1.0 workyear to activities related to developing and refining technicalanalyticmodels, data collections, and analysis. In particular, Commission personnel continue torefineandfurtherdeveloptheCommission’ssimulationmodeloftheU.S.economy—theU.S.AppliedGeneralEquilibrium(USAGE)model—anditsunderlyingdatabase.Theseeffortscontributeddirectlyand indirectly to statutory studies such as The Economic Effects of Significant Import Restraints: Sixth Update,andvarioustechnicalassistanceefforts.DuringFY2009theCommissioncontinuedsignificantindependentresearchtoassesstheabilitiesofitscurrentmodelstocaptureaccuratelytheeffectsoftradepolicychanges.TheCommissionregularlyusescontractresourcestosupplementin-houseresourcesandkeepitsmodelingcapabilitiesanddatabasescurrent.

TheCommission’sanalystsandeconomistsmaintainaveryhighlevelofknowledgewithregardtotheirrespectiveportfoliosbyattendingconferencesandconductingfieldworktoobtaininformationfrom primary sources. Maintaining a robust research and monitoring capability and developingexpertiseinavarietyofemergingtradeareasensuresthattheCommissionisabletoprovideformalreportstotheCongressandtheUSTRonrelativelyshortnotice,therebymeetingincreasinglytimesensitivedemandsoftradepolicymakers.

TheCommission continues to develop expertise innewand existing areas.Areas of developmentcontinue to include theanalysisof linkages ingoodsandservices, trade, investment, intellectualpropertyrights,andlabor,withanewfocusonenergyandtheenvironment.OtherareasofongoingdevelopmentincludeexaminingtheU.S.-Chinatraderelationshipandtrade-relatedpoliciesinIndia,Brazil,andMexico.TheseeffortsrequiretheuseofhighlydisaggregatedofficialcustomsdatafromtheU.S.,Chinese,andMexicangovernments.Otherdevelopmentaleffortsincludetrackingsectoralandregionaleffectsoftradepolicychangesandquantifyingnontariffmeasuresaffectingtrade.Theexpertise acquired by staff through research activities is used extensively in support of StrategicOperationNos.1,4,and5,aswellasforCommissionreportsgeneratedunderStrategicOperation

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No.3.Forexample, theCommission is frequentlycalledupon toprovide timelyassistance to thelegislativeandexecutivebranchesintheformofstaff-to-staffassistance.Commissionpersonnelalsoserveasin-houseexpertsontheproductssubjecttovariousimportinjuryinvestigationsconductedbytheCommission.

Workload Expectations in FY 2010 and 2011

ForFY2010and2011theCommissionexpectsworkloadlevelstoreturntonormallevels,addressingawide range of trade-related topics. Examples of investigations currently underway in FY 2010includerequeststo:

• examinetheprobableeconomiceffectsofmodificationstotheU.S. Generalized System of Preferences, 2009 Review of Additions and Removals;

• assessthecompetitivenessofsmallandmedium-sizedenterprises(threereports);

• monitortextileandapparelimports;and

• examinetheeconomicimpactsoftheU.S.-AssociationofSoutheastAsianNations(ASEAN)TradeandInvestmentFrameworkAgreement(TIFA).

TheCommissionhasdevelopedandbeguntoapplyuniquecapabilitiestomeasurebarriersinservicestradeandtomeasureandquantifythetradeimpactsofnontariffmeasures.TheCommissionalsoanticipatesinitiatingthebuildingofanextensivedatabaseonforeigndirectinvestmentandservicestradetocomplementitsalreadyexistingexpertiseinmerchandisetrade.

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Resource Requirements and Workload for Industry and Economic Analysis

Intheaggregate,StrategicOperationNo.3utilized35.2percentoftheCommission’sresourcesinFY2009(seeDollarCost:ComparisonbyStrategicOperation,p.65),amountingto$26.5million(seeBudgetSummarybyStrategicOperation,p.66).Intermsofdirectcosts,StrategicOperationNo.3accountedfor$14.3millioninFY2009,with94workyearschargedtoit.(SeeStrategicOperationNo.3:IndustryandEconomicAnalysisInvestigationsCaseload,p.40.)TheOfficeofIndustriesandtheOfficeofEconomicsaccountedfor73.6percentofthedirectworkyearschargedtothisstrategicOperationinFY2009,with47.3and21.6workyears,respectively.(SeeWorkyearsbyActivityandOffice,p.67.)StudiesproducedunderStrategicOperationNo.3areconductedprimarilybyindustryanalystsintheOfficeofIndustrieswhospecializeinareassuchasagricultureandforestproducts,textiles,electronics,transportation,chemicals,naturalresources,andservices;andeconomistsintheOfficeofEconomicswithregionaloranalyticalspecialties.

Asdiscussedabove,duringFY2009theCommissioncompleted10investigationsandinstituted9newinvestigations.TheCommissionprojectsinstitutionof15newinvestigationsinFY2010and16newinvestigationsin2011.(SeeStrategicOperationNo.3:IndustryandEconomicAnalysisInvestigationsCaseload,p.40.)

AsreflectedinitsFiscalYear2010and2011PerformancePlans(seeattached),theCommission’sgoalsaretoprovidesoundresearchproductsinanobjectiveandtimelymannerthatcontributetomoreinformedpublicdebateandimprovedtradepolicymaking.TheCommissionexpectstodevelopandimproveefficientandeffectiveresearchmethodsandexpandcapacitytoanticipateandaddressnewresearchissuesandareasastheyemerge.TheCommissionalsowillworkwithitscustomerstoensurethattheyunderstandtheagency’scapabilitiesandareabletobenefitfromitsexpertise.Finally,theCommissionwillcontinuetostrengthenitsregionaleconomicexpertiseinChina,India,Brazil, andNAFTA throughongoinganalysis of the international tradeand investmentflowsandimpactsinglobalmarkets.

39

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


Workyears Dollars Workyears Dollars Workyears Dollars Workyears DollarsA. Direct Costs2


Benefits 2,370 2,534 2,720 186

Rent 2,400 2,426 2,443 17


Subtotal 94 $14,310 95 $14,876 97 $15,701 2 $825

B. Indirect Costs3


Benefits 1,255 1,340 1,433 93

Rent 1,075 1,088 1,097 9


Training 191 169 217 48

Equipment, Equipment Rental, Communication 801 937 1,146 209



Services 3,079 3,720 3,786 66

Supplies 376 380 386 6

Subtotal 50 $12,212 49 $13,333 50 $14,064 1 $731

Total Resouce Requirements 144 $26,522 144 $28,209 147 $29,765 3 $1,556 1 Totals may not add up due to rounding.2 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




40

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


0

5

10

15

20

25

2011*2010*2009200820072006


0

3

6

9

12

15

2011*2010*2009200820072006

* Estimate

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

0

5

10

15

20

25


† Active during the month Source: Office of Industries

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

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

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Status actual actual actual actual estimate estimate

Instituted ................................................ 12 22 10 9 15 16

Active ..................................................... 26 33 30 22 18 25

Completed ............................................. 14 14 14 10 14 15

1 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.

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Strategic Operation No. 4: Tariff and Trade Information Services

TariffandtradeinformationservicesincludemaintenanceandpublicationoftheHTS,preparationoflegislativereportsfortheCongress,draftingofimplementingannexestotradeagreementsnegotiatedbyUSTR,maintenanceoftheonlineInteractiveTariffandTradeDataWeb(DataWeb),andmanagementofCommissiontradedatabases.Servicesalsoincludecontributionstothedevelopmentoftheinter-agencyInternationalTradeDataSystem(ITDS),maintenanceofU.S.commitmentsunderScheduleXXoftheGeneralAgreementonTariffsandTrade/WorldTradeOrganization(GATT/WTO),maintenanceoftheelectronicversionoftheU.S.ScheduleofServicesCommitmentsundertheGeneralAgreementonTradeinServices(GATS),preparationoftheelectronicdatabasethatsupportsU.S.submissionstotheWTOIntegratedDatabase,andrelatedinformationgathering,processing,anddisseminationactivities.

Maintenance of the Harmonized Tariff Schedule of the United States

TheHTSisacomprehensivelistofdutiesimposedongoodsimportedintotheUnitedStates.TheHarmonizedTariffScheduleoftheUnitedStatesAnnotated(HTSA)consistsoftheHTS,itsstatisticalannotations,andotherrelatedinformation.TheHTSisusedbyCustomstoassessdutiesonimports,byeconomistsandindustryanalystsasastatistical tool fortracking imports,andbycommercialfirms in planning their import programs.Maintenance of theHTS/HTSA includes several closelyrelatedfunctions:

• publishing the HTSA, i.e., preparing annual hardcopy versions for printing by theGovernmentPrintingOffice, andposting an electronic copy and electronic revisions, asnecessary,ontheCommissionwebsiteinaccordancewithsection1207oftheOmnibusTradeandCompetitivenessActof1988;

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• fulfilling the Commission’s responsibilities for statistical annotation of the HTS, incoordinationwithCustomsandtheBureauoftheCensus,undersection484oftheTariffActof1930;

• participatingintheworkoftheHarmonizedSystemCommittee,itsReviewSubCommittee,andtheScientificSubCommitteeoftheWorldCustomsOrganizationinmaintainingtheinternationalHarmonizedSystemof tariffnomenclature, asdirectedby section1210ofthe1988Act (aCommissionstaffmember leads theU.S.Delegation to theReviewSubCommittee);and

• preparingthelistofU.S.commitmentsunderScheduleXXoftheGATT/WTO(i.e.,U.S.tariffconcessionswithrespecttotradeingoods)intheappropriatelegallanguageconformingtotheinternationalHarmonizedSystemoftariffnomenclature.

WhenamendmentsormodificationstotheHTSAareproclaimedororderedbythePresident,enactedby the Congress, or adopted by the Committee for Statistical Annotation of the Tariff Schedule,theCommissionusuallyincorporatesthemintotheonlinePDFversionoftheHTSAwithinoneortwoworkingdays.Immediateaccesstotheup-to-dateHTSAonlinehasproventobeveryusefultoCommissionpersonnel,aswellastoCustomsandthetradecommunity.ThisutilityisenhancedbythefactthattheproductisviewableandsearchableandisavailablefordownloadingbyindividualHTSAchapter.DuringtheyeartheCommissionalsopublishesoneormorehardcopysupplementstotheHTSAtoreflectanyamendmentsarisingduringthecalendaryear.TheCommissiongenerallypublishesahardcopy,midyearsupplementtotheHTSeffectiveonJuly1ofeachyear,primarilytoreflecttheannualGSPreview.

InFebruary2009theCommissionlaunchedtheonlineHTSreferencetool.This isauser-friendlywebbrowserinterfaceforviewingtheHTS.Thetoolincludessophisticatednavigation,search,andthesaurusfeatures,andrepresentsasubstantialimprovementoverthepreviousonlinemethodofviewingtheHTS.ThetoolincludeslinkstorelevantCustomswebsites,importdata,anddetailedtariffinformation.Thereferencetoolreceivedoverthreemillionhitsduringthefirstsevenmonthsafterlaunch.

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The Commission spent 7.1 workyears on the HTS and nomenclature activities in FY 2009. (SeeWorkyearsbyActivityandOffice,p.67.)

Legislative Reports

TheHouseCommittee onWays andMeans and the SenateCommittee on Finance regularly asktheCommissionforcommentsonlegislation,primarilyreportsonmiscellaneoustariffbills(MTBs).ThesereportsprovidetariffnomenclatureandtechnicaldraftingassistanceandincluderevenuelossestimatesfortheCongressionalBudgetOffice.CommissionpersonnelroutinelypreparesuchdraftreportsandinformationonMTBsinanticipationofCongressionalconsideration.TheCommissionspent1.3workyearsprovidingadviceon67MTBsduringFY2009.(SeeWorkyearsbyActivityandOffice,p.67.)InFY2010thisfigurewillbemuchhigher,giventhatover800newbillswereintroducedintheSenateinOctober2009.Inthelastfiveyearsworkyearshaverangedfromahighof6.4inFY2006toalowof1.1inFY2007.TheextentofresourcesdevotedtothisactivityinFY2011willdependlargelyonthenumberofnewMTBsintroducedduringthe112thCongress,whichwillbegininJanuary2011.

Interactive Tariff and Trade DataWeb

TheDataWebgivesgovernmentofficials,theinternationaltradecommunity,andthegeneralpublicdirectaccesstoU.S.tariffandtradedata.AvailableviatheInternet(http://dataweb.usitc.gov),theDataWebisinteractiveandabletorespondrapidlytouserdefinedqueries.Thesystemallowsbothexpertandnon-expertuserstomakeandsavetheirowncustomizedcountryandproductdataforfutureuse.Thesystemguidesusersthroughthenumerousoptionsavailableinworkingwithtariffandtradedata,allowingthemtoconstructcomplexstatisticalqueriesagainsthundredsoftables.DataWebaddsbusinessvaluebyintegratingup-to-dateinternationaltradetransactionswithcomplextariffandcustomstreatment.Italsoprovidesinformationtousersregardingtherelationshipbetweenthe HTS and other classification systems such as Standard Industrial Classification, StandardInternationalTradeClassification,orNorthAmericanIndustrialClassificationSystem.

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SystemusehasgrownsubstantiallyfromitsinceptioninApril1999,morethantriplingfrom319,000datareportsinFY2000tomorethan1.1milliondatareportsinFY2009(seeFigure1below).Thesystemnowhasnearly130,000registeredusers.Althoughusebythegeneralpublichasshownthemostgrowth,U.S.Governmentpersonnelusethesystemextensivelyandaccountfor15percentofthereportsgenerated(seeFigure2below).ThecontinuationofthispublicservicewillensurethatFederal government entities, foreign government and international organizations, and the generalpublicwillhavefreeaccesstoU.S.tradedata.

Figure 1. DataWeb Performance, FY 2005–2009

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

20092008200720062005

Num

ber o

f rep

orts

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

Foreign Government and International Organizations 12%

U.S. Government 15%

Universities 12%

General Public61%

Source: Office of the Chief Information Officer.

TheCommissionestimates theoperationalandmaintenancecosts forDataWebandrelated tradedata systems at $525,000 and 1.1 workyears in both FY 2010 and 2011. Internal support andmaintenanceeffortsforDataWebaresupplementedbycontractors.

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International Trade Data System

Commissionpersonnelparticipateinamulti-agencyinitiativetodevelopaGovernment-widesystemfortheelectroniccollection,use,anddisseminationofinternationaltradeandtransportationdata.ITDSwillprovidethemeansforharmonizingandconsolidatingallimportandexportdatarequiredforportclearanceintoasingledatasystem.Itwillalsoprovidedataneededtosupportanalysesoftradepolicydevelopmentandtradepromotionbygovernmentagencies.Inaddition,asdetailedintheSecurityandAccountabilityForEveryPortActof2006,ITDSwillprovidethetradingpublicwitha“singlewindow”forreportingforeigntradetransactionstotheU.S.Government.ThesystemisbeingdevelopedinconjunctionwiththedevelopmentofthenewAutomatedCommercialEnvironmentatCustoms.TheimplementationoftheonlineHTSreferencetoolinFebruary2009hasimprovedtheavailabilityoftariff informationfor importbrokersandCustoms’officials intheports,andisalsoavailabletothetradeandgeneralpublicontheCommission’swebsite.DuringFY2010orearlyinFY2011theCommissionhopestocompletedevelopmentofnewsoftwarethatwillusetheXMLformatoftheHTSreferencetooltoprepareandpublishtheHTSAinthefuture.ThiswillallowthetransferofkeytariffinformationtoandfromexternaldatabasesatCustomsandwithintheCommission.

Resource Requirements for Tariff and Trade Information Services

Intheaggregate,StrategicOperationNo.4utilized4.8percentoftheCommission’sresourcesinFY2009(seeDollarCost:ComparisonbyStrategicOperation,p.64),amountingto$3.6million(seeBudgetSummarybyStrategicOperation,p.66).Intermsofdirectcosts,StrategicOperationNo.4accountedfor$1.9millioninFY2009with13workyearschargedtoit.(SeeStrategicOperationNo.4:TariffandTradeInformationServicesResourceRequirements,p.46.)ProvidingtimelyandaccuratetradeinformationservicestoCommissioncustomersrequirescoordinationandeffortacrossCommissionorganization lines.Expertise isprovidedbypersonnel from theOfficesofTariffAffairsandTradeAgreements,Industries,andtheOCIO.TheOfficeofTariffAffairsandTradeAgreementsandtheOfficeofIndustriesaccountedforabout76.6percentofthedirectworkyearschargedtothisstrategicOperationinFY2009with8.1and1.7directworkyears,respectively.(SeeWorkyearsbyActivityandOffice,p.67.)InitsFiscalYear2010and2011PerformancePlans(seeattached),theCommissionhassetgoalsdesignedtoimproveitsperformanceintheprovisionoftariffandtradeinformationservices.

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




Benefits 311 337 340 3

Rent 327 331 333 3


Subtotal 13 $1,890 15 $1,979 15 $1,995 0 $16

B. Indirect Costs3

Personnel Compensation 7 $684 8 $714 8 $719 0 $5

Benefits 171 185 186 1

Rent 146 148 150 1


Training 28 25 32 8




Services 459 564 575 11

Supplies 51 51 52 1

Subtotal 7 $1,711 8 $1,886 8 $1,945 0 $59

Total Resource Requirements 20 $3,602 23 $3,864 23 $3,940 0 $76 1 Totals may not add up due to rounding.2 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




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Strategic Operation 5: Trade Policy SupportTrade 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 andexecutive branches complements anddraws onwork in other strategicOperations,mostnotablyStrategicOperationNo.3,IndustryandEconomicAnalysis.Suchsupportincludesinformationandanalysisoncurrentissuesrelatedtotradeandcompetitiveness,technicaladviceondraftlegislation,informalbriefingsandmeetings,temporarydetailsofpersonnel,andassistancetotradedelegationsandnegotiatingteams.ToimplementlegislationontradepolicydecisionsthatmodifytheHTS,theCommissionalsodraftsPresidentialproclamations,memoranda,executiveorders,andfinaldecisionsbyvariousagencies.

The Commission continually engages in efforts to improve its service to, and support for, tradepolicymakers.Overthepastseveralyears,theseeffortshaveresultedinanincreasingtrendinthenumberofrequestsfortechnicalassistance.However,inFY2009theCommissionprovidedexpertiseon94tradepolicy issues,downsignificantly from129unique issues in2008. Atthesametime,resourcescommitted to thisstrategicOperation increasedbyalmost20percent inFY2009afterreaching a seven-year low in FY 2008. These diverging trends for FY 2009 can be attributed tomultiplerequestsoncertainsubjects(sometimesfromdifferentcustomers)andcompletionofseveralin-depth,resourceintensiveproductsduringtheyear.Theselargeprojects,primarilydeliveredtoUSTR,reflectdiscussionswiththeCommission’scustomersaboutexpandingthescopeofassistancethatcanbeprovidedthroughthisstrategicOperation.

Commissionassistanceduringthepastfiscalyear,intermsofresourcescommitted,hasfocusedonprovidingsupportrelatedtoUSTR’sworkontheoperationoftheGSPprogram,initiativesrelatedtosub-SaharanAfricaandtheAfricanGrowthandOpportunityAct (AGOA),andanalysisofrulesoforigin treatmentandharmonization.AsignificantamountofworksupportedU.S. responsibilitiesrelated toWTOnegotiations, panels, notifications, committees, and reviews. Technical assistanceeffortsforCongressionalcustomersfocusedonChina’sinternationaltradeandeconomy,thenatureandimpactofgovernmentpoliciesrelatedtobeeftrade,andpendingFTAs.

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The Commission anticipates that its trade policy support in FY 2010 and 2011will continue torespondtothelinesofinquiryinthepastfiscalyear,withincreasinginterestintheroleofsmallandmediumbusinesses in trade, tradeandeconomic issues inAfricancountries,andthe interactionbetween trade policies and environmental and labor issues. TheCommission continues to try toanticipatepolicymakers’needsanddevelopexpertisetomeetanticipatedrequestsforassistance.

TheCommissionalsoprovidestradepolicysupportbydetailingpersonnelwithrelevantexpertisetoUSTRandtheCommission’sauthorizingcommittees.ThesedetailsprovideCommissionstaffwithabetterunderstandingof theneedsof theseprimarycustomersandcontribute tocloserworkingrelationships, resulting inmore efficient and effective support to trade policymakers in StrategicOperationNos.3,4,and5. DuringFY2008and2009Commissionworkloadandstaffing levelspresentedchallengestosupplyingsuchfull-timeassistance.Asaresult,theCommissionreducedthelevelsofresourcescommittedtodetails.Toreducetheimpactofthisreduction,theCommissioninitiated several “virtual” details, e.g., employees dedicated part-time to supporting certainUSTRprogramsfromtheCommission,allowingthemtomeetUSTRneedswhileconcurrentlycontributingtootherCommissionwork.

InFY2010and2011theCommissionanticipatesaslightincreaseinresourcesdedicatedtoexternaldetails.Thisincreaseisexpectedtoresultfromincreasedinterestbyitsoversightcommittees.InFY2010theCommissionanticipatesthattradeissueswillfiguremoreprominentlyonthelegislativeagendathanwasthecaseinFY2009,resultinginincreasedrequestsforassistanceandsupport,suppliedintheformsofdetails,data,andwrittenproducts.

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Resource Requirements for Trade Policy Support

In theaggregate,StrategicOperationNo.5utilized5.4percentof theCommission’s resources inFY2009(seeDollarCost:ComparisonbyStrategicOperation,p.64),amountingto$4.1million(seeBudgetSummarybyStrategicOperation,p.66).Intermsofdirectcosts,StrategicOperationNo.5accountedfor$2.3millionand13workyearsinFY2009.(SeeStrategicOperationNo.5:TradePolicySupportResourceRequirements,p.50.)TheOfficeofIndustriesandtheOfficeofEconomicsaccountedformostof thedirectworkyearschargedto thisStrategicOperation inFY2009with4.1and2.3directworkyears, respectively.TheOfficeofTariffAffairsandTradeAgreementsand theOfficeofExternalRelationscontributed1.5and1.7workyearstoStrategicOperationNo.5,respectively.(SeeWorkyearsbyActivityandOffice,p.67.)

AsreflectedinitsFiscalYear2010and2011PerformancePlans(seeattached),theCommissionisworking to enhance itsperformance in theprovisionof tradepolicy support. Toaccomplish this,theCommission sets goals that relate to: 1) providing enhanced real-time, efficient, and effectivetechnicalinformationandanalysistosupportorganizationsinvolvedintradepolicyformulation,and2)improvingtheCommission’scommunicationswithitscustomerstoensurethattheyunderstandtheagency’scapabilitiesandareabletobenefitfromitsexpertise.

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


Workyears Dollars Workyears Dollars Workyears Dollars Workyears DollarsA. Direct Costs 2


Benefits 393 416 418 2

Rent 340 344 346 3


Subtotal 13 $2,314 13 $2,392 13 $2,406 0 $15

B. Indirect Costs 3

Personnel Compensation 7 $707 7 $733 7 $738 0 $4

Benefits 176 188 190 1

Rent 152 154 155 1


Training 35 32 39 7




Services 485 576 586 9

Supplies 53 53 54 1

Subtotal 7 $1,788 7 $1,943 7 $1,995 0 $52

Total Resource Requirements 20 $4,102 20 $4,335 20 $4,401 0 $66 1 Totals may not add up due to rounding.2 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




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Information Technology TheCommissionisaninformationintensiveenterprise.Itscorecompetencyisthecollection,analysis,disseminationandstewardshipofdata,information,knowledge,andprocessesthatcanbeusedininvestigations,tradeanalysis,andotheroperations.ITapplicationsandsystemshelptheCommissioncontinuetoimproveprogramperformanceinacostefficientmannerandmeetagencyandcustomerneedsinboththeshort-andlong-term.TheCommissionplansinvestmentsinITsystemsthatwillachievegoalsdefinedintheInformationResourceManagementStrategicPlan.TheCommissionhassixhigh-levelITstrategicgoals:

• consolidate(intermsofeliminatingredundancy)andimproveITservicestoprovideeffectivemeanstoachievebusinessresultsandimproveoperationalefficiency;

• manageITexpensesandinvestmentsfromanagencywideperspective;

• incorporatebestpracticesinITmanagementasappropriatefortheCommission’sbusinessmodel;

• providereliable,agileandadaptableservicestoaccommodatetheCommission’sevolvingbusinessneeds;

• maintainanactivesecurityprogramforinformationandinformationsystemsthatprotectsCommissionactivities fromunauthorizedaccessoruse, therebyensuring their integrityandavailability;and

• buildtheITinfrastructuretosustainaproductiveworkforcethathasaccesstoinformationandserviceswhereverandwhenevertheyareworking

DuringFY2010and2011theCommissionwillcontinuetopursuetheGovernment-widevisionforimprovedelectronicservicestocitizens,businesses,andotherstakeholders.TheCommissionstrivestomanagechange,delivercosteffectiveandsecurelyconfiguredITsolutions,focusonincrementally

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andcontinuouslyimprovingitstechnologyinfrastructure,andensurethatCommissionpersonnelaretrainedandequippedwiththeITtoolsneededtoaccomplishitsmission.ContinuedprogressrequiresfullfundingoftheCommission’sbudgetrequest.Federalmandatesthatrequirefundinginclude:

• FederalEnterpriseArchitecture(FEA)implementation,

• HomelandSecurityPresidentialDirective(HSPD)-12implementation,

• TrustedInternetConnection(TIC),and

• ImplementationoftheCOOPPlancapability.

Major Ongoing Information Technology Initiatives

Information Security and Infrastructure Management

TheCommission’sinformationsecurityprogramincludesprotectionsfornationalsecurityinformation,confidential business information, business proprietary information, privileged information andpersonallyidentifiableinformation(PII).TheCommission’sinformationsecurityposturecontinuestostrengthenthroughthefollowingactivities:

• specific,tailoredguidancetopersonnel;

• continualeducationoftheusercommunityregardingtheprotectionoftheCommission’sinformationinusers’care;

• alertinginformationinfrastructurepersonnelofcyberthreats,toimplementcountermeasuresinatimelymanner,sovulnerabilitiesarenotexploited;and

• updatingtheusercommunityoncomputersecuritythreatspertinenttotheenvironment.

Informationsecurityat theCommission ismanaged throughrisk-basedactivities,basedonOMBpolicyandguidanceissuedbytheNationalInstituteofStandardsandTechnology(NIST).

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OCIOinformationsecuritygoalsinclude:

• finalizingthedraftCommissionCOOPPlandocumentationandmakingsignificantprogressindevelopingtestscenariosandpreparingthealternateworksite;

• strengtheningtheCommission’soverallinformationsecurityposturethroughcontinuousmonitoringactivities,includingtheeffectiveuseofautomatedmonitoringandloggingtools;

• furtherdevelopingthesecurityawarenessandtrainingprogramtoensurethateducationalinitiativesarecommensuratewithindividualrolesandresponsibilities;and

• reviewing,updating,andenhancingtheprocessforPlanofActionandMilestones(POA&M)reviewandreportingforeachoftheCommission’smajorinformationsystems.

Electronic Document Information System

EDIS serves as the Commission’s repository for documents on record for investigations and isconsideredoneoftheCommission’smostmissioncriticalinformationsystems.InMarch2009theOCIOE-BusinessDivisioncompletedtheinitialphaseofanongoingprojecttoreengineerEDIS.TheexistingEDISsoftwareandhardwaretechnologieswereoutdatedandbeyondtheirusefullife,leadingtonumerousreliabilityandsecurityissues.Therefore,asastrategicinitiative,theEDISsoftwarewasrewritten,anddeployedonallnewhardwareconfiguredwithupdatedoperatingsystems.ThenewapplicationmeetsallFederalsecuritymandatesandensureshighperformance,reliability,andfunctionalityforallusersofthesystem.

Becauseofthescopeofthiseffort,theCommissionisreengineeringEDISinphases.TheCommissionwillcontinuetodevelopandimplementadditionalrequirementsrequestedbytheEDISusercommunityinFY2010. TheCommissionwillschedulesoftwarereleasesona three-monthcycle throughFY2011.Keyfeaturesinclude:

• integrationofbarcodescannersforuseduringdocumentintake,

• augmentingperformancestatisticsreports,

• automatingthegenerationofmotionnumbers,

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• maintainingrelationshipsbetweenmotionsandtheirresponseorder,and

• electronicserviceofdocumentstoauthorizedexternalusers.

The Enterprise Portal

InFY2005theCommissionsetanambitiousagendaofestablishingitsInternetwebsiteasanenterpriseportalwherecustomerscanaccesstheweb-basedservicesandinformationmostimportanttothemthroughasingleInternetlocation.Asthisone-stopportal,theCommission’swebsiteincorporatesaccess toallof itsmajor informationsystems includingEDIS,DataWebandthenewHTSOnlineReferenceTool,whilealsosupportingnavigationthroughinformationpertainingtoallofthemajorstrategicOperationsoftheCommission.Theprimarybusinessobjectiveofthisapproachistoincreasetheavailabilityof,andbroadenaccessto,theinformationandservicesthattheCommissionmakesavailableonlinetothegeneralpublicandtoCommissionemployees.Asecondobjectiveoftheportalistoallowcustomerstofindtheinformationfasterandmoreefficiently.AsaresultofatotaloverhaultotheCommission’swebsiteinFY2009,publiccustomersaswellasCommissionpersonnelbenefitedfromanupdatedlook-and-feel,improvednavigation,andenhancedsearchfunctionality.Tomeettheneedsofdisabledusers,theupdatedwebsiteincorporatesaddedaccessibilityfeaturesincompliancewithSection508oftheRehabilitationAct.

HTS Online Reference Tool

InFY2009theCommissioncompleteddevelopmentandimplementedsignificantimprovementstotheonlineversionoftheHTS.ImprovementstotheHTSOnlineReferenceToolincludeanenhancedsearchcapabilitywithanHTSthesaurus,improveduserinterface,anddirectaccesstothemostrecentclassificationrulings.Inconjunction,theOCIOcontinuestosupporttheOfficeofTariffAffairsandTradeAgreementswithmaintainingtheHTSdatathroughimplementationandtrainingonupdatingthedatainXMLformatviaaXML-specificeditortoallowforintegratingdatachangesmoreefficientlyintotheHTSSearchtechnology.

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Commission Intranet

InFY2010theCommissionplanstomoveforwardwithanambitiousefforttooverhaulitsIntranetsite.TheexistingIntranetsitedoesnotemploymanyofthemostcurrenttechnologiesformanagingwebsite content, thus making it difficult to maintain. The Intranet site will be redesigned andre-implemented tomakeCommission informationmore accessible to internalusers and to fosteramorecollaborativeenvironmentforexchanginginformationrelatingtoCommissionactivities. Itwill allow formore efficient andactivemanagement of the content available on the Intranet site.ThisapproachwillalsocomplementandsupporttheCommission’seffortstoimplementitsrecordsmanagementprogramsuchthatdispositionschedulescanbeestablishedandcarriedout.

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Indirect CostsIndirectcostsconsistofcoststhatarenotdirectlyattributedtothefivestrategicOperationsintheStrategicPlan.MostindirectcostsareallocatedtothefivestrategicOperationsbyoneoftwoformulas.Foroffices thatcharge timedirectly tooneormorestrategicOperations,administrativecostsareallocatedbasedontheproportionofdirectlaborchargedtoeachoperationbythatoffice.Thesecostsarereferredtoasoperatingadministrativecosts.ForofficesthatdonotchargetimetoanystrategicOperation,administrativecostsareallocatedbasedontheagencywideaverageallocation.Thesecostsarereferredtoasgeneraladministrativecosts.

GeneraladministrativecostsincludethecostsoftheOfficeofAdministration,andthesubordinateoffices of Finance, FacilitiesManagement, andHumanResources. They also include the costs ofadministrativelegaladviceprovidedbytheOGCandthecostsofadministrativelitigation.Generaladministrativecostsarelessthan7percentoftotallaborcosts.

TheOfficeoftheDirectorofAdministrationcompilestheCommission’sannualbudget,preparestheappropriationandauthorizationrequests,andcloselymonitorsbudgetexecution.TheCommission’sstrategicbudgetingapproachencompassesallphasesofthebudgetdevelopmentprocess,includingjustifyingrequestsforpersonnel,services,andITthroughlinkagetostrategicgoals.TheformatoftheBudgetJustificationcontinuestoparalleltheStrategicPlanandaddressestheannualPerformancePlan.TheOfficeoftheDirectorofAdministrationalsoisresponsibleforphysicalandpersonnelsecurity.TheOfficeoftheDirectorofAdministrationisallocatedsixfull-timepositionsintheCommission’sStaffingPlan.(SeeCommissionApprovedStaffingPlan,p.69.)

TheOfficeofFinanceprovidesprofessionalfinancialservicesthatensureproperstewardshipoftheCommission’s resources in carrying out its statutory responsibilities. These services include theoperation of the accounting system (including payroll, obligations, disbursements, reporting, andtravel).TheOfficeofFinancehassupportingliaisonresponsibilitieswiththeDepartmentofTreasuryand other Federal agencies on financialmatters. TheOffice of Finance is allocated six full-timepositionsintheCommission’sStaffingPlan.(SeeCommissionApprovedStaffingPlan,p.69.)

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The Office of Human Resources facilitates the Commission’s recruitment, training, and humancapitalmanagementeffortstoalignhumanresourcepracticesmorecloselywithitsstrategicmission.ThroughacontractualagreementwithOPM,theOfficeofHumanResourceshasobtainedtechnicalexpertiseinstrategicworkforceplanning,traininganddevelopment,andorganizationaldevelopment.In FY 2010 and 2011 theCommissionwill continue implementing the programs, processes, andstrategiesnecessarytoaccomplishthegoalsandobjectivesoutlinedintheStrategicHumanCapitalManagement Plan. The Office of Human Resources is allocated eight full-time positions in theCommission’sStaffingPlan.(SeeCommissionApprovedStaffingPlan,p.69.)

TheOfficeofFacilitiesManagementadministersbuildingservices(includingbuildingmaintenance,physicalsecurity,mail,andcleaningservices),acquiresgeneralofficeequipmentandsupplies,andprovidesprocurementservices.InFY2010and2011theOfficeofFacilitiesManagementplanstorenovatethenewlyacquiredspaceonthesecondfloor,buildanadditionalcourtroomforsection337proceedings,andmakeadjustmentsincurrentlyoccupiedspaceoncerelocationoccurs.TheOfficeofFacilitiesManagementisallocated10full-timepositionsintheCommission’sStaffingPlan.(SeeCommissionApprovedStaffingPlan,p.69.)

TheOfficeofEqualEmploymentOpportunity(OEEO)managestheCommission’saffirmativeactionprogramandadvisestheChairmanandmanagersonallequalemploymentopportunityandrelatedissues. The OEEO will continue its efforts through FY 2010 to acquire automated software tocomputerizeandstreamlineofficeprocesses incompliancewithEEOCMD-715andtheNoFEARAct.ThegoalwillbetocompletetheinitiativeduringFY2011.ImplementationwillbecoordinatedwiththeOfficeofHumanResourcesandOGC. TheOEEOcontinuestoensure thatCommissionprogramsfulfilltheletterandintentoflawsandregulationsthataffecthiringandretentionofFederalemployees.TheOEEO isallocated two full-timepositions in theCommission’sStaffingPlan. (SeeCommissionApprovedStaffingPlan,p.69.)

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Office of the Inspector General The Office of the Inspector General (OIG) provides audit, inspection, and investigative supportservicescoveringallCommissionprogramsandstrategicOperations.ThemissionoftheOIGistopromoteandpreserve the effectiveness, efficiency, and integrity of theCommission.Activitiesareplannedandconductedbasedonrequirementsoflawsandregulations,requestsfrommanagementofficials,andallegationsreceivedfromCommissionpersonnelandothersources.Therequestedlevelofresourcesisnecessarytocontinueongoingactivitiesandtomaintainanappropriatelevelofaudit,inspection,andinvestigativeservices.TheoperationsandaccomplishmentsoftheOIGaredescribedinsemiannualreportssubmittedtotheCongress inOctoberandAprilofeachyear.TheOIGhasrequestedand isallocated four full-timepositions in theCommission’sStaffingPlan,assuming itis able to obtain independent legal counsel through an inter-agency agreement or private sectorcontract.(SeeCommissionApprovedStaffingPlan,p.69.)Inaddition,theOIGhasrequested,andwillbeallocated,$180,000forauditandlegalservicesinFY2010and$140,000inFY2011.ForbothfiscalyearstheOIGhasrequested,andwillbeallocated,$12,000fortraining,$12,000tosupporttheCounciloftheInspectorsGeneralonIntegrityandEfficiency,and$9,000fortravel.MidwaythroughFY2011theOIGwillreevaluateitsstaffingandworkloadtodeterminewhetheradditionalresourcesareneeded.

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Dollar Cost: Comparison by Object Classification, Fiscal Years 2009, 2010, 2011(Dollar Amounts in Thousands) FY 2009: $75,356

PersonnelCompensation

55.5%

Benefits 13.9%

Rent: 12.1%

Services 12.0%

Other 6.6%

FY 2011: $87,0003


52.6%

Benefits 13.7%

Rent 12.4%

Services 12.5%

Other 8.8%

1: Personnel Compensation

2: Benefits

3: Rent

4: Services1

5: Other2

FY 2010: $82,2853


52.6%

Benefits 13.5%

Rent 12.4%

Services 13.0%

Other 8.5%

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

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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 653 800 800

Total Salaries $40,513 $42,766 $45,110 Overtime 56 60 70 Awards 1,266 500 600

Total Benefits $10,437 $11,118 $11,864 Total Salaries and Benefits $52,273 $54,444 $57,644 Total Rent $9,081 $10,175 $10,875

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 23 20 30 IG Services 216 192 152

Total Services $9,007 $10,687 $10,835 Supplies $984 $1,064 $1,115 Equipment 1,679 2,725 3,226 Travel 488 553 600 Training 530 472 600 Communications and Equipment Rental 597 700 750 Transportation 34 25 30 Postage and Contractual Mail 177 200 200 Land and Structures 114 1,000 875 Printing and Reproduction 393 240 250

Total Other $4,995 $6,979 $7,646 Total Non-Personnel $23,083 $27,841 $29,356 Total Obligations $75,356 $82,285 $87,000 1 Totals may not add up due to rounding.

Source: Accounting System.

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

FY 2009 Actual Obligations

FY 2010Expenditure Plan

FY 2011Budget Request

FY 2010-2011Change

PercentageChange

Permanent Employees $39,255 $41,416 $43,710 $2,294 5.5%Temporary Employees 605 550 600 50 9.1%Term Employees 653 800 800 - 0.0%

Total Salaries $40,513 $42,766 $45,110 $2,344 5.5%Overtime 56 60 70 10 16.7%Awards 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%Total Rent $9,081 $10,175 $10,875 $700 6.9%

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%EEO Services 23 20 30 10 50.0%IG Services 216 192 152 (40) -20.8%

Total Services $9,007 $10,687 $10,835 $148 1.4%Supplies $984 $1,064 $1,115 $51 4.8%Equipment 1,679 2,725 3,226 501 18.4%Travel 488 553 600 47 8.5%Training 530 472 600 128 27.1%Communications and Equipment Rental 597 700 750 50 7.1%Transportation 34 25 30 5 20.0%Postage and Contractual Mail 177 200 200 - 0.0%Land and Structures 114 1,000 875 (125) -12.5%Printing and Reproduction 393 240 250 10 4.2%

Total Other $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%

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

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

Personnel Cost Change (Dollar Amounts in Thousands)

Permanent Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +2,294Salarieswill increaseby5.5percentbasedonaprojectedFederalpay raise,normalcostofpromotionsandwithin–gradeincreases,andongoingrecruitmenteffortstofillvacanciesinkeyareas.

Temporary Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .+50Costsfortemporaryemployeeswillincreasemarginally.

Overtime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .+10Overtimecostswillincreasemarginally.

Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +100Awardscostswillincreasemarginally.

Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +746Sinceretirementbenefitsareincurredasapercentageofsalary,assalarycostsincrease,retirementbenefitscostsincrease.Inaddition,benefitscostsincreaseatahigherratethancompensationduetorisinghealthinsurancecostsandtheshiftingdemographicsoftheworkforce.ThisshiftresultsinanincreasedpercentageofCommissionemployeescoveredbytheFederalEmployeesRetirementSystem.ThosebenefitsarealmosttriplethecostofCivilServiceRetirementSystembenefitstotheCommission.

Net Personnel Cost Changes +3,200

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Non–Personnel Cost Changes (Dollar Amounts in Thousands)

Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +700Rentcostswillincreaseby6.9percenttocoverafullyear’srentfortheCommission’snewly-acquiredspaceonthesecondfloor.

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +148Servicescostswillincreasemarginallyby1.4percent.

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .+51Suppliescostswillincreasemarginally.

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +501Equipment costs will increase by 18.6 percent to cover the costs of upgrades andreplacementof critical IT infrastructureaswellas implementationofphase1of theContinuityofOperationsPlan.

Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .+47Travelcostswillincreasemarginally.

Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +128Trainingcostswillincreaseby27.1percenttosupporttraininginitiativesresultingfromtheOPMaudit.

Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .+50Communications costswill increasemarginally to support increaseduse ofwirelesstechnology.

Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .+5Transportationcostswillincreasemarginally.

Land and Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -125Landandstructurescostswilldecreaseby12.5percentdue tocompletionofmajorrenovationsassociatedwiththesecondfloorinFY2010.

Printing and Reproduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +10PrintingandReproductioncostswillincreasemarginally.

Net Non–Personnel Cost Changes +1,515

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

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Dollar Cost: Comparison by Strategic Operation, Fiscal Years 2009, 2010, 2011(Dollar Amounts in Thousands) FY 2009: $75,356

Operation 1: 28.6%

Operation 3:35.2%

Operation 4: 4.8%Operation 5: 5.4%

Operation 2: 26.0%

FY 2011: $87,0001

Operation 1: 27.4%

Operation 3:34.2%


Operation 2: 28.8%





Strategic Operation No. 5: Trade Policy Support

FY 2010: $82,2851

Operation 1: 27.7%

Operation 3:34.3%


Operation 2: 28.0%

1 Estimate

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

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

Operation 1: 27.9%

Operation 3:37.1%


Operation 2: 24.8%

FY 2011: 4021

Operation 1: 27.6%

Operation 3:36.6%

Operation 4: 5.7%

Operation 5: 5.0%

Operation 2: 25.1%





Strategic Operation No. 5: Trade Policy Support

FY 2010: 3941

Operation 1: 27.7%

Operation 3:36.5%


Operation 2: 24.9%

1 Estimate


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

OperationFY 2009 Actual FY 2010 Estimate FY 2011 Estimate FY 2010–11 Change


1: Import Injury Investigations 75 $12,510 76 $12,963 78 $13,768 2 $805 2: Intellectual Property-Based Import Investigations 63 11,007 65 12,181 67 13,478 2 1,297 3: Industry and Economic Analysis 94 14,310 95 14,876 97 15,701 2 825 4: Tariff and Trade Information Services 13 1,890 15 1,979 15 1,995 0 16 5: Trade Policy Support 13 2,314 13 2,392 13 2,406 0 15

Subtotal 257 $42,032 264 $44,390 270 $47,348 6 $2,958 B. Indirect Costs3

1: Import Injury Investigations 33 $9,012 33 $9,821 33 $10,062 0 $241 2: Intellectual Property-Based Import Investigations 33 8,600 33 10,911 34 11,586 1 675 3: Industry and Economic Analysis 50 12,212 49 13,333 50 14,064 1 7314: Tariff and Trade Information Services 7 1,711 8 1,886 8 1,945 0 59 5: Trade Policy Support 7 1,788 7 1,943 7 1,995 0 52

Subtotal 131 $33,324 130 $37,894 132 $39,652 2 $1,757

C. Total Costs1: Import Injury Investigations 108 $21,523 109 $22,784 111 $23,830 2 $1,046 2: Intellectual Property-Based Import Investigations 96 19,607 98 23,092 101 25,064 3 1,9723: Industry and Economic Analysis 144 26,522 144 28,209 147 29,765 3 1,5564: Tariff and Trade Information Services 20 3,602 23 3,864 23 3,940 0 765: Trade Policy Support 20 4,102 20 4,335 20 4,401 0 66

Total 388 $75,356 394 $82,285 402 $87,000 8 $4,7151 Totals may not add up due to rounding.2 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.


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Workyears by Activity and Office, Fiscal Year 2009Office/Division COMM ER IG GC SE ALJ EEO OP INV OUII EC TATA ID CIO AD TOTALOperation 1: Import Injury Investigations 15.8 0.2 0.0 10.8 2.7 0.0 0.0 0.0 19.6 0.0 8.2 0.2 5.2 11.9 0.0 74.6Title VII Investigations 3.5 1.6 13.1 5.3 0.1 2.8 2.1 28.5Sunset Investigations 1.4 1.1 5.0 2.1 1.7 0.5 11.8Other Investigations 0.1 0.8 0.4 0.1 0.3 1.8Litigation 4.8 0.1 4.8Operational Support1 0.2 1.0 0.7 0.3 0.4 9.3 11.9Executive Direction 15.8 15.8Operation 2: Intellectual Property-Based Investigations 3.9 0.3 0.0 11.1 0.6 17.7 0.0 0.0 0.0 19.7 0.0 0.0 0.0 9.5 0.0 62.8

Section 337 Investigations 6.8 0.6 17.7 19.2 44.2Section 337 Litigation 4.3 4.3Operational Support1 0.3 0.1 0.5 9.5 10.4Executive Direction 3.9 3.9Operation 3: Industry and Economic Analysis 5.3 0.0 0.0 0.4 0.1 0.0 0.0 6.7 0.9 0.0 21.6 0.1 47.3 11.3 0.0 93.6

Statutory Investigations 0.4 0.1 0.7 0.5 8.9 21.6 0.4 32.6Other Industry and Economic Analysis 1.7 0.4 11.8 0.1 21.6 0.2 35.8Operational Support1 4.3 0.9 4.0 10.7 19.9Executive Direction 5.3 5.3Operation 4: Tariff and Trade Information Services 0.8 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0 8.1 1.7 2.1 0.0 12.8Harmonized Tariff Schedule 0.1 6.3 0.7 7.1Legislative Reports 1.0 0.3 1.3Trade Database Management 0.1 0.3 0.8 1.1Operational Support1 0.8 0.4 1.3 2.5Executive Direction 0.8 0.8Operation 5: Trade Policy Support 0.5 1.7 0.0 0.5 0.0 0.0 0.0 0.0 0.6 0.0 2.3 1.5 4.1 1.7 0.0 13.0Technical Assistance to Congress 0.9 0.2 0.2 0.2 0.2 1.8Technical Assistance to Executive 0.8 0.2 0.5 1.2 2.5 5.3Operational Support1 0.1 0.1 0.6 1.6 0.1 1.3 1.7 5.9Executive Direction 0.5 0.5Leave/ Holidays 1.8 1.0 0.2 8.6 1.0 3.2 0.5 2.7 5.7 4.0 7.9 2.7 15.1 6.4 5.1 65.8Administrative Overhead 0.0 1.8 1.3 6.0 2.6 1.1 1.7 3.1 4.5 0.8 7.5 0.5 11.4 1.1 22.9 66.4

Total2 28.2 5.2 1.5 37.6 7.0 22.0 2.1 12.5 31.4 24.5 47.6 13.1 84.7 44.0 28.0 388.01 Operational support includes all activity codes not listed above, to include direct IT support.2 Totals may not add up due to rounding.Source: Actual costs derived from the Labor Cost Reporting System.

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Fiscal Year 2010 U.S. International Trade Commission Organization

COMMISSION

Chairman

Office of theAdministrativeLaw Judges

Office of theDirector ofOperations

Office of theGeneralCounsel

Office ofExternalRelations

ChiefInformation

Officer

Office of theDirector of

Administration

Office of theInspectorGeneral

Office of EqualEmploymentOpportunity

Office of theSecretary

Office ofHuman

Resources

Office ofFacilities

Management

Office ofFinance

Office ofInformationTechnology

Services

Office ofEconomics

Office ofIndustries

Office ofInvestigations

Office ofTariff Affairsand Trade

Agreements

Office ofUnfair ImportInvestigations

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

Office FY 2009 FY 2010 FY 2011

Perm. Term Total Perm. Term Total Perm. Term Total Commissioners’ Offices 31 31 31 31 31 31Administrative Law Judges 16 4 20 18 4 22 18 4 22External Relations 5 5 5 5 5 5General Counsel 43 1 44 43 43 43 43Inspector General 4 4 4 4 4 4Equal Employment Opportunity 2 2 2 2 2 2Secretary 7 7 7 7 7 7

Subtotal Independent Offices 108 5 113 110 4 114 110 4 114Operations, Director 15 15 5 5 5 5Analysis and Research Services1 12 12 12 12Investigations 37 1 38 35 35 35 35Unfair Import Investigations 21 21 21 21 21 21Economics 45 3 48 38 6 44 38 6 44Tariff Affairs and Trade Agreements 14 14 14 14 14 14Industries 100 100 91 91 91 91

Subtotal Operations 232 4 236 216 6 222 216 6 222Chief Information Officer 5 5 5 5 5 5Information Technology Services 20 4 24 21 1 22 21 1 22Enterprise Security Management2 6 6 6 1 7 6 1 7

Subtotal Chief Information Officer 31 4 35 32 2 34 32 2 34Administration, Director 5 1 6 6 6 6 6Facilities Management3 7 7 6 6 6 6Human Resources 7 7 8 8 8 8Finance 5 5 6 6 6 6Procurement3 4 4 4 4 4 4Dockets2 9 9 12 2 14 12 2 14

Subtotal Administration 37 1 38 42 2 44 42 2 44Commission Total 408 14 422 400 14 414 400 14 4141 Reorganization pending. Positions currently in Operations, Investigation and Economics.2 Reorganization pending. Positions currently in OCIO.3 Reorganization pending. Procurement currently part of Facilities Management.

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

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

Office

FY 2009 Actual

Commission Staffing Plan1 Workyears2

Salaries and Benefits3

Average Cost Salaries and Benefits

Commissioners’ Offices 31 27.3 $4,648.6 $170.4 Administrative Law Judges 20 21.1 2,841.9 134.7External Relations 5 5.0 847.0 168.0General Counsel 44 39.4 6,143.9 156.0Inspector General 4 1.5 229.6 148.4Equal Employment Opportunity 2 2.1 259.1 120.6Secretary 7 6.7 779.6 116.0Operations, Director 15 12.0 1,422.5 118.1 Investigations 38 31.1 4,283.7 137.5 Unfair Import Investigations 21 23.6 4,148.2 176.0 Economics 48 45.3 6,190.5 136.6 Tariff Affairs and Trade Agreements 14 13.1 1,727.6 132.3 Industries 100 84.7 10,835.6 128.0Chief Information Officer 44 41.1 4,826.3 117.4Administration 29 28.6 3,089.0 108.1Commission Total 422 382.8 $52,273.1 $136.6

1 The Commission FY 2009 Approved Staffing Plan includes permanent (408) and term (14) positions.2 Total workyears includes overtime, but excludes temporary employees.3 Salaries and Benefits total does not include workers’ compensation or commuter subsidy costs.

0 20 40 60 80 100

GS6

GS7

GS8

GS9

GS10

GS11

GS12

GS13

GS14

GS15

ALJ

SES

EX

Source: Labor Cost Reporting System.

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

ThefollowingpresentstheelementsoftheCommission’sfinalPerformancePlanforfiscalyear(FY)2010and the initialPlan forFY2011 thatarenotaddressed in thebodyof theagency’sBudgetJustification.Together,thejustificationandtheplansformtheCommission’sPerformanceBudget.The Commission’s performance planning is carried out in accordance with the provisions of theGovernmentPerformanceandResultsAct(GPRAorResultsAct).ThePlansarebasedontheseventheditionoftheagency’sStrategicPlan,whichwasissuedinSeptember2009.

Mission statement

Themission of the U.S. International Trade Commission (Commission) is to: (1) administer U.S.trade remedy lawswithin itsmandate in a fair and objectivemanner; (2) provide the President,theUnitedStatesTradeRepresentative (USTR),andCongresswith independent,qualityanalysis,information,andsupportonmattersrelatingtotariffsandinternationaltradeandcompetitiveness;and(3)maintaintheHarmonizedTariffScheduleoftheUnitedStates.

Insodoing, theCommissionserves thepublicby implementingU.S. lawandcontributing to thedevelopmentofsoundandinformedU.S.tradepolicy.

Introduction

TheCommissionhas oneprogramactivity set forth in theBudget of theUnitedStates, buthas,forthepurposesofitsStrategicPlanandPerformanceBudget,dividedtheagency’sfunctionsintofive strategic Operations: (1) import injury investigations, (2) intellectual property related importinvestigations,(3)industryandeconomicanalysis,(4)tariffandtradeinformationservices,and(5)tradepolicysupport.TheorganizationoftheBudgetalongoperationallinesshowshowtheagency’sgoalsrelatetothecostsofachievingtargetedlevelsofperformance.ThePerformancePlanportion

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oftheBudgetsetsoutwhattheagencyintendstoaccomplishinthecomingyearsbyestablishinggoalstodefinethelevelofperformancetobeachievedbyeachstrategicOperationinFY2010and2011.TheCommissionhasdeterminedthatthegoalssetinthePerformancePlansareappropriateand reasonable.As encouragedby theResultsAct, theCommissionhas sought to express thoseperformance goals in an objective, quantifiable, andmeasurable form. To the extent practicable,theCommissionhasestablishedoutcome-orientedgoals.Output-orientedgoalsappearinthePlansonly if they constitute relevant and significantmeasures of performance. The Performance PlansreproducethestrategicandperformancegoalsthataresetoutintheCommission’sStrategicPlan,asrevised,andestablishFY2010and2011annualgoalscorrespondingtoeachperformancegoal.ForthepurposesoftheResultsAct,eachannualgoalservesbothasaperformancegoaltodefinethe levelofperformancetobeachieved,andaperformance indicator tomeasureoutputs,servicelevels,andoutcomes.Foreachannualgoal,thestaffofficesresponsibleformeasurementarenotedinparentheses.

Consistent with the E-Government Act of 2002, the Plans include performance measures thatdemonstrate how electronic government enables progress toward agency objectives, goals, andmandates.ThePlansalsodiscusstheagency’sperformanceduringFY2005,2006,2007,2008,and2009.TheBudgetJustificationdescribes,withrespecttoeachstrategicOperation,theoperationalprocesses,skillsandtechnology,andthehuman,capital,information,orotherresourcesrequiredtomeettheperformancegoals.

The Commission performs an annual verification and validation of measured values. For eachstrategicOperation,asenioragencymanagerservesasOperationCoordinator.AmongthedutiesoftheOperationCoordinatorsistheresponsibilitytocoordinatethatverificationandvalidation,underthegeneraloversightoftheStrategicPlanningCommittee.Thatprocessinvolvesreviewofthelogsandreportsgeneratedbystaffofficestomonitorannualgoalachievement,andsuchotherproceduresastheOperationCoordinatorsdeterminetoimplement,includingtheuseofexistingrecordkeepingprocesses,andautomatedsystemssuchastheElectronicDocumentInformationSystem(EDIS).TheCommissionplanstodevelopwrittenproceduresonhowverificationandvalidationareconductedsoastoreflectagencypractice.

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TheCommissionmadeprogressinFY2005,2006,2007,2008,and2009towardtheachievementofthegoalssetoutinthePerformancePlansforthoseperiods.TheOperationCoordinatorsdevelopedavarietyofcustomersurveysandlogstomeasuretheagency’ssuccessatmeetingthosegoals.TheCommissionissuedanFY2009PerformanceandAccountabilityReportinNovember2009.

The Strategic Plan

InSeptember2009,theCommissionissuedtheseventheditionofitsStrategicPlan.Asnotedabove,thesePerformancePlansarebasedonthatedition.ThecurrentStrategicPlancoverstheperiodFY2009–14,andhasbeenupdatedandenhancedonthebasisoftheCommission’spastexperienceinstrategicplanning.

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Guide to abbreviations used in the Plans

Abbreviations Meanings

ACE Automated Commercial EnvironmentAD AntidumpingALJ Administrative Law JudgeAPO Administrative protective orderBlue Book Antidumping and Countervailing Duty HandbookCVD Countervailing dutyEDIS Electronic Document Information SystemEC Office of EconomicsER Office of External RelationsGC Office of the General CounselHR Office of Human Resources HTS Harmonized Tariff Schedule of the United StatesID Initial determination by an ALJIND Office of IndustriesINV Office of InvestigationsITS Information Technology ServicesNTM Non–tariff measureOAD Office of AdministrationOMB Office of Management and BudgetOP Office of OperationsOUII Office of Unfair Import InvestigationsRed Book An Introduction to Administrative Protective Order Practice in Import Injury InvestigationsSE Office of the SecretaryTATA Office of Tariff Affairs and Trade AgreementsTEO Temporary exclusion orderURAA Uruguay Round Agreements ActUSTR United States Trade RepresentativeWCO World Customs OrganizationWTO World Trade Organization

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STRATEGIC OPERATION NO. 1: Import Injury Investigations

InFY2010and2011,theCommissionwillseektoimproveitsperformanceinconductingimportinjuryinvestigationsbyincreasingpublicaccesstoinformationabouttheprocess.TheCommissionwillalsomonitorand,ifnecessary,modifyitsprocedurestoensurethattheycontinuetobefairandproperlyimplemented,andwillcontinue tocompleteproceedingsontime.To thoseends, theCommissionplanstoupdateinformationalmaterialsand,asappropriate,developnewones,seekfeedbackfromparticipants andpromptly provide themwith investigative data, perform internal reviews of draftinvestigationandlitigationdocuments,meetdeadlines,andundertakeregularreviewsandassessmentsoftheimportinjuryprogramoritscomponentstoidentifyareasforpotentialimprovement.ExternalfactorsaffectingperformancewithinStrategicOperationNo.1includeindustrydecisionsonwhetherto file cases, Commerce Department determinations, judicial and panel reviews, and changes inlegislation.TheCommissionwillcontinuetoconsultasnecessarywiththeDepartmentofCommerceonthetwoagencies’distinctrolesintheantidumpingandcountervailingdutyinvestigativeprocess.

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:

• aneffectiveexchangeofinformationbetweentheCommissionandinterestedparties,

• anappropriateinvestigativerecord,and

• transparent,fair,andequitably-implementedprocedures.

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Performance and Annual Goals

PerformanceGoalNo.1:Improvethequalityandefficiencyoftheinvestigativeprocessbyconductinginternalreviews,includingreviewofdraftinvestigationandlitigationdocuments.

FY 2010 Annual Goals FY 2011 Annual Goals

a. Achieve 80 % 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).

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).

PerformanceGoalNo.2:Meetstatutory,court,andadministrativedeadlines.


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).

PerformanceGoalNo.3:Improvethedevelopmentofinvestigativerecords.


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).

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Performance Goal No. 4: Improve the scope, quality, and transparency of information regardinginvestigations,bothtoinvestigativeparticipantsandthepublic.


a. Achieve 1 point improvement over FY 2009 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).

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


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

TheCommissionwillemploythefollowingstrategiestocontributetothefulfillmentofitsgoals.

1. Effectivelyallocateandenhancehumanresources.

2. Continuallyassessandadaptnewtechnologiesandrevisebusinessprocessesasneeded.

3. Review programs and procedures in light of changing needs of investigation participants andtechnologicaldevelopments.

Performance

DuringFY2005,2006,2007,2008,and2009theCommissiongenerallymettheperformancegoalsofitsPerformancePlans:

- InFY2005, theCommissionenhanced thedesignandcontentof itsWebsite,providingaseparatepageforeachactiveandrecentlycompletedimportinjuryinvestigation,showingkeydatesofinteresttothepublic,contactinformationforassignedstaff,andlinkstoallrelevantCommissionandCommercenotices,questionnaires,transcripts,servicelists,newsreleases,andpublicreports,availablefordownloadingandprinting.Alsoaddedwereinformationpageson themajor types of import injury investigations and theByrdAmendment, and links toresourcessuchasrelevantsectionsoftradestatutes,theCommission’sRulesofPracticeandProcedure,statutory timetables,historical import injurycasestatistics,Commerce’s ImportAdministration,theSunsetReviewsWebsite,outstandingAD/CVDorders,ITCpublicationson import injury cases, EDIS, the Antidumping and Countervailing Duty Handbook (the

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Blue Book), andAn Introduction to Administrative Protective Order Practice in Import Injury Investigations(theRedBook).TheCommissionalsoreleasedanenhancedsearchtoolforEDISinFY2005.Thistoolprovidedimprovedaccesstopublicdocuments,includingmultiplesearchoptions,fasterretrieval,andmoreuser–friendlyresults.Inaddition,theCommissionupdatedtheBlueBook;conductedappropriateinternalreviewofdraftdocuments,includingopinions;andissuedalldeterminationsandrelateddocumentsontime.

- InFY2006,pursuanttocommentssubmittedbythetradebarinconnectionwithitsfourthusersurvey,theCommissionreviewedproceduresrelatedtotheissuanceofquestionnairesand access to documents on EDIS and took steps toward process improvements in thoseareas.TheCommissionconductedappropriateinternalreviewofdraftdocuments,includingopinions;andissuedalldeterminationsandrelateddocumentsontime.Semi-annualreviewswereconducted related to thecontentof the import injuryWebpages,andabaselinewasestablishedforthelevelofsatisfactionreportedbyusersofthosepages.SystemmodificationstoEDISwereimplementedtoallowfortheelectronicacceptanceofconfidentialdocuments.

- InFY2007,pursuanttocommentssubmittedbythetradebarinconnectionwithitsfourthusersurvey,theCommissionbeganonaregularbasistoissueimportinjuryquestionnairesinMSWordformatforeaseofusebyrespondingparties.TheCommissioncreatedtemplatesofquestionnairesinMSWordusingformfieldssothatrespondentscouldenterdataintothosefieldselectronicallyandstaffcouldblock-copydataintospreadsheetsandotherformats,therebyreducingdataentryerrors.TheCommissionupdatedtheBlueBook;conductedappropriateinternal review of draft documents, including opinions; and issued all determinations andrelateddocumentsontime.Semi-annualreviewswereconductedrelatedtothecontentoftheimportinjuryWebpages,andsignificantenhancementsweremadetothedesignandcontentofthosepages.

- InFY2008, theCommissionpublishedanotice in theFederalRegister seekingcommentsonproposedchanges to the conductoffive-year reviews, specifically shortening theperiodavailable to interested parties to respond to questions in the notice of institution, seekingadditionalinformationfrominterestedpartiesthroughthenoticeofinstitutionand,incertaincircumstances,seekinginformationfrompurchasersduringtheadequacyphaseoffive-yearreviews.Inaddition,theCommissionconductedappropriateinternalreviewofdraftdocuments,includingopinions;andissuedalldeterminationsandrelateddocumentsontime.Semi-annualreviewswereconductedrelatedtothecontentoftheimportinjuryWebpages,andsignificantenhancementsweremadetothedesignandcontentofthosepages.TheBlueBookwillbe

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updatedinFY2009.TheCommissionbeganusingacontentmanagementsystemtoallowappropriatestaff toeasilyandefficientlymanageWebpagecontent. Inparticular,contentmanagementworkflowswereimplementedallowingimportinjuryinvestigationdocumentsandrelated information tobe regularlyposted to the import injuryWebpages inorder tokeepcontentup-to-date.Finally,theCommissionreleasedanewEDISCodingManualtoallusersofEDIStodefinemoreclearlytheguidelinesfordescribingthedocumentsbeingsubmitted,thusreducingthenumberoferrorsassociatedwithdocumentsubmissions.

- InFY2009,theCommissionaccomplishedthefollowing—• TheCommissionperformed an in-depth internal review of its practices andprocedures

withregardtoimportinjuryinvestigations.Changestostandardquestionnairetemplatesandreportstructuresweremadetoenhancethequalityofthereportsandtoexpanddatacollectioneffortsonissuesraisedinrecentcourtdeterminations.

• Pursuant to an examination of potential changes with regard to conducting five-yearreviews, theCommissionbegan to collectadditional information from interestedpartiesthrough the notice of institution and from purchasers through questionnaires. Thisenhancement provides the Commission with an improved record upon which to makeadequacydeterminations.

• Withrespecttosafeguards,theCommissioncompletedthefirstinvestigationsince2005conductedundersection421oftheTradeActof1974,concerningCertainPassengerVehicleandLightTruckTiresfromChina.

• Are-engineeredversionofEDISwasreleasedattheendoffirstquarterofcalendaryear2009.Thenewhardwarearchitectureandanupdatedsoftwaresuite,whichismoreuserfriendlyandmaintainable,haveimprovedtheoverallperformanceofthesystemandwillbenefitboththeCommissionandoutsideparties.

• AnewpublicWebsitewasdeployedduringtheyearwiththegoalofimprovingtheeaseofuseandnavigation;theCommissionwillcontinuetomonitorthelevelofsatisfactionreportedbyusersoftheITCimportinjuryWebpageasmoreusersexperiencethenewWebpage.

• TheCommissionhasfurthereditseffortsintheareaofimprovingtheeaseofrespondingtoquestionnaires,asallquestionnairesforimportinjuryinvestigationsareissuedinMSWordformat.Theagencyallowsrespondingfirmstoelectronicallyenterthedataandreturnthequestionnairesviaemailiftheydesire.Suchelectronicsubmissionsresultinprocessing

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efficienciesfortheCommissionbyreducingdataentry.Whilefirmshavenotutilizedthiscapability asmuch as anticipated, theCommissionwill continue to gauge howbest togatherdatatoreducetheburdenonoutsidepartiesandtoincreaseefficiencyinternally.

• The Commission made improvements with regard to internal document exchange (inparticulartheprocessofusingscannedquestionnaires)whichgreatlyreducedtheinternalflowofpaper.Inaddition,theCommissionexpandeditspracticeofreleasingdataunderAPOthoughtheuseofCDs,whichresultedinasignificantreductioninpapervolume.

• TheCommissionreviewedtheBlueBookandmadeupdateswhereappropriate;conductedappropriate internal review of draft documents, including opinions; and issued alldeterminationsandrelateddocumentsontime.

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STRATEGIC OPERATION NO. 2: Intellectual Property–Based Import Investigations

TheCommissionplanstoundertakeactivitiesduringFY2010and2011tomeasureandenhanceperformancewithrespecttothreecentralconcernsintheSection337area:theexpeditiouscompletionofproceedings,theeffectivenessoftheagency’sorders,andtheprovisionofinformationtothepublicaboutthesection337process.TheCommissionwillcollectandanalyzedataregardingthelengthof investigations and ancillary proceedings and the Commission’s compliance with key statutoryand administrative deadlines. TheCommissionwill also ensure that new filings are entered intoEDISinatimelymannerandthatadditionaltypesofinformationaremadeavailabletothepublic.DuringFY2000,theagencysurveyedcomplainantswhoobtainedexclusionordersregardingwhetherimportssubject toexclusionhadstoppedandthendevelopedrecommendations in lightofsurveyresults.ThissurveywasrepeatedinlateFY2005inordertoobtainfurtherfeedbackfromthepublic,andduring2006aCommissionworkinggroupcompiledandanalyzed the responses,andagoalprovidingforsemiannualmeetingswithmembersoftheIntellectualPropertyRights(IPR)BranchofU.S.CustomsandBorderProtection (Customs)wasaddedtotheCommission’sPerformancePlanto facilitate communicationsbetweenCommissionandCustomspersonnel regardingenforcementofSection337remedialorders.TheCommissionplanstoconductasimilarsurveyduringFY2010toobtaincurrentfeedbackfromthepublicregardingtheenforcementofexclusionorders.Externalfactors affecting performance of this function include the size and complexity of theSection337docket,whichisdependentonthedecisionsofbusinessestofilecases; judicialreview; legislativechanges;andCustomsenforcementofexclusionorders.

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.

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PerformanceGoalNo.1:Meetstatutoryandkeyadministrativeandcourtdeadlines,concludeSection337investigationsexpeditiously,andreducetheaveragetimetoconcludeancillaryproceedings.


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).

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 regardinginvestigationsprovidedbothtoinvestigativeparticipantsandthepublic.


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).


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PerformanceGoalNo.3:Activelyfacilitateenforcementofexclusionorders.


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).

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

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).

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

PerformanceGoalNo.4:ImprovetheCommission’sphysicalandinformationinfrastructureinorderto meet the demand and requirements for expeditious adjudication of often-complex intellectualpropertydisputes.


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






Performance


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- DuringFY2005,theSection337workloadincreased,withthenumberofmattersactiveduringtheyearmore than25percentabove thatofFY2004.TheCommissioncontinued tomeetdeadlinesandissuevirtuallyalldocumentsontime.Duringtheyear,theCommissiondidnotmeetitsgoalsregardingelectronicaccesstofileddocumentsanddeterminedthatorganizationalrealignmentoftheOfficeoftheChiefInformationOfficerandcontinuedsystemenhancementstoEDISwerenecessary.TheCommissioncompletedareorganizationoftheOfficeoftheChiefInformationOfficer,wherebythedocketsfunction,formerlyaservicemaintainedbyOfficeoftheSecretary,becametheDocketDivisionoftheOfficeofInformationTechnologyServices.The intent of this realignmentwas to accelerate the transformation of the docket functionto a predominantly electronic service. Systemmodifications were implemented to enhanceaccesstopublicdocuments,includingfasterretrieval,andmoreuser–friendlysearchresults.TheCommission sent out survey questionnaires regarding the effectiveness of outstandingexclusionordersinthelastquarterofFY2005.

- DuringFY2006,theSection337caseloadcontinuedtoclimb,withnewmattersincreasingbynearly40percentascomparedtotheprioryearandthetotalnumberofmattersactiveduringthe course of the year increasing bymore than20 percent.Nevertheless, theCommissioncontinuedtomeetdeadlinesandissuevirtuallyalldocumentsontime.Duringtheyear,theenforcementworkinggroupcollectedandanalyzedresponsestotheexclusionordersurveyandpreparedrecommendationsfortheCommission’sconsiderationinviewofthesurveyresults.TheworkinggroupalsobeganprovidingSection337schedulinginformationtoCustomsonaquarterlybasis.SystemmodificationstoEDISwereimplementedtoallowfortheelectronicacceptanceofconfidentialdocuments.

- During FY 2007, the Section 337 area was again extremely active, with the number ofinvestigationsbeforetheCommissionduringtheyearexceedingtherecordlevelexperiencedinFY2006.Overall,thenumberofactivecasesinFY2007wasnearly80percenthigherthanthenumberofactivecasesfouryearsearlier.Moreover,theOfficeofALJsnotonlyshoulderedanexceptionallyheavyworkload,butalsohadtoadjusttotheretirementoftwoALJsandtheextendedabsenceofanotherduringtheyear.AlthoughtheCommissioncontinuedtomeetitsdeadlinesfortheinstitutionofnewinvestigationsandtheissuanceoffinaldecisions,interimdeadlines for the establishment of target dates and the issuance of initial determinationsregardingviolationweremissedinahandfulofinvestigations.Also,theaveragelengthoftimetaken to reachafinaldecisionon themerits increased to16.6monthsascompared toanaveragelengthofinvestigationsoflessthan15monthsintheprecedingfouryears.MembersoftheenforcementworkinggroupmetwithrepresentativesfromtheIPRBranchofCustomsto

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discussmattersrelatingtoexclusionorderenforcement,andtheenforcementworkinggroupcontinued toprovideSection337scheduling information toCustomsonaquarterlybasis.SystemmodificationstoEDISwere implementedduringFY2007toallowfortheelectronicnotificationofdocumentsubmissionstointernalusersandtoallowsearchresultstobeviewedinatabularformatandsortedmoreeasily.

- DuringFY2008,thenumberofnewSection337complaintfilingsandthenumberofSection337mattersactiveduringtheyearreachednewrecordlevels. Intotal,thenumberofnewinvestigationsandnewancillaryproceedingsrosebynearly50percentascomparedtoFY2007,andthenumberofmattersactiveduringthecourseoftheyearwasnearly20percenthigherthaninFY2007.Tomeetitsrecord-highcaseload,theCommissionhiredtwonewALJstobringthetotaltofiveALJs.TheCommissionalsoappointedaChiefAdministrativeLawJudge.TheCommissioncontinuedtomeetitsdeadlinesfortheinstitutionofnewinvestigationsandtheissuanceoffinaldecisions,andtomeetinterimdeadlinesfortheestablishmentoftargetdates.TheALJsalsomettheirdeadlinesfortheissuanceofinitialdeterminationsregardingviolation.However,deadlinesfortheestablishmentoftargetdatesweremissedinafewinstances.AsinFY2007,theaveragelengthoftimetakentoreachafinaldecisiononthemeritswasbetween16 and 17 months. Members of the enforcement working group continued to meet withrepresentativesfromtheIPRBranchofCustomstodiscussmattersrelatingtoexclusionorderenforcement,andtheenforcementworkinggroupcontinuedtoprovideSection337schedulinginformationtoCustomsonaquarterlybasis.ThegoalsregardingtheavailabilityofdocumentsonEDISwerealsometthisyear.Additionally,theCommissionreleasedanewEDISCodingManualtoallEDISuserstodefinemoreclearlytheguidelinesfordescribingthedocumentsbeingsubmitted,thusreducingthenumberoferrorsassociatedwithdocumentsubmissions.

- InFY2009,theCommissionaccomplishedthefollowing—• ThelevelofnewSection337complaintfilingsremainedhigh,butrecededfromtherecord

levelofnewfilingsexperiencedinFY2008,whilethenumberofmattersactiveduringthecourseoftheyearapproximatedthatofFY2008.TheCommissionhiredasixthALJ.

• TheCommissioncontinuedtomeetitsdeadlinesfortheinstitutionofnewinvestigationsandtheissuanceoffinaldecisions,andtheALJsalsomettheirdeadlinesfortheissuanceofinitialdeterminationsregardingviolationandtheestablishmentoftargetdates.However,theaveragelengthoftimetoreachafinaldecisionbytheCommissiononthemerits inSection337investigationsincreasedinFY2009toslightlylessthan18months.

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• Duringtheyear,theCommissioninitiatedavoluntarypilotmediationprograminanefforttofacilitatemoresettlementsinsection337investigationsalthoughnoinvestigationshaveyetenteredthemediationprogram.MembersoftheenforcementworkinggroupcontinuedtomeetwithrepresentativesfromtheIPRBranchofCustomstodiscussmattersrelatingtoexclusionorderenforcement.

• TheCommission releaseda re-engineeredversionofEDISduring thesecondquarterofFY2009,and theCommissionexceeded itsmetrics formakingdocumentsavailableonEDISundertheprevioussystem.TheCommissionacquiredandutilizedtemporaryspaceto enhance its ability to schedule timely hearings. An updated version of the popularpublication,“FrequentlyAskedQuestionsaboutSection337”wasreleased,andnumerousenhancementsweremadetotheCommissionWebsiteinFY2009.

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STRATEGIC OPERATION NO. 3: Industry and Economic Analysis

TheCommissioncontinuesitsstatutorymissiontoprovideexpertanalysisandinformationtoCongressandtheexecutivebranchinbothformalreportsandinformaltechnicalassistance.TheCommission’sgoalistoprovidesound,objective,value-addedanalyticalproductsinatimelymannerthatleadtomoreinformedpublicdebateontradepolicyissues.ExternalfactorsaffectingtheperformanceofthisstrategicOperationincludecustomerrequestsforstudiesandlegislativeinitiatives.Commissionexpertsareregularlycalleduponforinformationandanalysisoncurrentandfuturetradeissuesandproposedtradelegislation,andareinfrequentdemandastechnicalexpertstoCongressionalstaff,interagencypolicycommittees,andtradenegotiatingteams.

In2008theCommissionbeganusingaphonesurveytofollowupwithstatutoryreportclients,askingforinsightsonclientsatisfaction,anddevelopedabaseline.TheCommissionisusingFY2008dataasabenchmarkforanalysisoffutureperformance.

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.

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PerformanceGoalNo.1:Developandimproveefficientandeffectiveresearchmethods.


a. Obtain 2 % improvement over FY 2009 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).

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).

PerformanceGoalNo.2:ExpandtheCommission’scapacitytoanticipateandaddressnewresearchissuesandareasastheyemerge.


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).

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).

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 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.

PerformanceGoalNo.3:ImprovetheCommission’scommunicationswithitscustomerstoensurethattheyunderstandtheagency’scapabilitiesandareabletobenefitfromitsexpertise.

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a. Achieve 2 point improvement over FY 2009 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).

c. Provide training on briefing skills to at least 30 employees to enhance small group communication with both internal and statutory customers (ID/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 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 an additional 20 employees to enhance small group communication with both internal and statutory customers (ID/EC).






Performance

DuringFY2005,2006,2007,2008,and2009,theCommissiongenerallymettheperformancegoalsofitsPerformancePlans:

- InFY2005,theCommissionestablishedabaselineforsatisfactionofitsWebusersforStrategicOperationNo.3.TheCommissioncontinuedtofocusonimprovingdeliveryofitsreportsviatheWebsite.DuringFY2005,theCommissiondeliveredanumberof innovativereportstoCongressandUSTRsuchasThe 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

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and Investment with Sub–Saharan Africa: Fifth Annual Report; Remediation and Nature and Landscape Protection Services: an Examination of U.S. and Foreign Markets;andU.S.–Bahrain Free Trade Agreement: Potential Economywide and Selected Sectoral Effects.

- In FY 2006, the Commission initiated e-mail subscription lists to provide customers withautomaticupdatesandinformationaboutitsreports.Relativetothe2005benchmark,theWebsatisfactionsurveyindicatedthattheagencyhadimprovedin10outof11surveyedareas.TheCommissionalsomadesignificantprogresstowarditscorporateresearchagenda:researchfocusingonU.S.foreigndirectinvestmentresultedinonestaffpaperonthetopic;researchcontinuedonChinesetradeanddevelopment,resultinginapaperonU.S.-Chinatradeandanotheronthe impactofChinesedemandonworldcommodities;andongoingresearchonNTMsresultedinapaperregardingthepriceeffectofbankingNTMs,aswellastheuseofthisresearchinstatutoryreportsonColombiaandKorea.Inaddition,theCommissiondeliveredfourstudiesonfutureandpotentialFTAstoUSTR(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).Otherspecialaccomplishmentsin2006includedeliveringinnovativereports(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).

- InFY2007,theCommissionspentconsiderableenergyonitscorporateresearchagenda,inadditiontoitsincreasedstatutoryworkload.Intheareaofforeigndirectinvestment,staffmadeconsiderableprogressondeepeningin-houseknowledgebypublishingtwopapers(“CompetitiveConditionsofForeignDirectInvestmentinIndia”;and“InboundandOutboundU.S.DirectInvestmentwithLeadingPartnerCountries”).Inmodelvalidation,staffincorporateddataontradeinnewvarieties.ThesedataarethefoundationforongoingworkonunderstandingtheextenttowhichtariffreductionsandFTAsresultedinnewtradeinpreviouslynontradedgoodsthatarenotaddressedinourcurrentmodels.Inaddition,theCommissiondeliveredthreestudiestoUSTRontradeagreements:U.S.-Colombia Free Trade Agreement: Potential Economywide and Selected Sectoral Effects;U.S.-Panama Free Trade Agreement: Potential Economywide and Selected Sectoral Effects; andU.S.-Korea Free Trade Agreement: Potential Economywide and

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Selected Sectoral Effects.Otherspecialaccomplishmentsin2007includedeliveringinnovativereports(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;andU.S. Agricultural Sales to Cuba: Certain Economic Effects of Restraints). In FY 2007, CongressamendedtheAfricanGrowthandOpportunityActtocreateanewstatutoryrequirementwithrespecttothecommercialavailabilityoffabricsandyarnsinbeneficiarySub-SaharanAfricancountries.Asaresult,theCommissionissuedinterimrulesandconductedaninvestigationonCommercial Availability of Fabric and Yarns in AGOA Countries: Certain Denim.

- InFY2008,theCommissionexperiencedaheavystatutoryworkloadanddeliveredinnovativereportstoCongressandUSTRsuchas: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;andWood Flooring and Hardwood Plywood: Competitive Conditions Affecting the U.S. Industries.Inaddition,theCommissionmadesignificantprogresswithitsindustryandeconomicanalysisresearchagendaandupdatestovariousanalyticaltools.TheCommissionspentsignificanteffortsdevelopingitsmodels,especiallytheUSAGEmodelbyincludingmoredetailedindustryspecification,inparticularinthesweetenerandethanolsectors.Onemajormodeldevelopmentwasredefiningthe data base using NAICS-based Input-Output accounts, which allows consistency withfuturenationalincomedata.ThesemodelenhancementswillbeusedforthelatestupdateoftheImportRestraintsstudyrequestedbyUSTR.Inaddition,theChinatradeprojectcontinuesto examine issues in U.S.-China bilateral trade, making use of highly disaggregated datafromChina,UnitedStatesandHongKong.Threeimportantpaperswerecompletedthisyearon China: the first developed an analytical approach to estimate the use of imported anddomesticallyproducedintermediateinputsinChineseexports;thesecondestimatedverticalspecializationofChina’sexports;thethirdexaminedtheroleoftaxandtarifferosionandmoneylaunderinginexplainingtheU.S.-Chinatradedatadiscrepancy.Themodelvalidationprojectcontinuesworkintwoseparateefforts:oneprojectlooksattheimplicationsoftariffratesonnontradedandnewlytradedvarietiesofgoodstomoreaccuratelyreflecttherestrictivenessoftariffs;theothereffortusestheUSAGEmodeltogeneratehistoricalforecastsfordetailedU.S.commoditiesandcomparestheseforecaststoactualoutcomes.Finally,Commissionstaff

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expanded itsNTMresearchefforts, incorporating intoaCongressionally-mandatedstudyoftheU.S.-KoreaFreeTradeAgreementnewmethodsofconnectingpricedatawithpolicydatatoassessthemarketimpactofparticularNTMs.

- InFY2009,theCommissionaccomplishedthefollowing—• StaffdeliveredinnovativereportstoCongressandUSTRandcontinuedtofocusoncorporate

research as the statutory workload shifted back to a pre-2007 level. Notable reportsinclude:Property-Casualty Insurance Services: Competitive Conditions in Foreign Markets;Sub-Saharan Africa: Effects of Infrastructure Conditions on Export Competitiveness, Third Annual Report(thelastreportintheseries);andSub-Saharan African Textile and Apparel Inputs: Potential for Competitive Production.

• Inaddition,theCommissiondeliveredtwostudiestoUSTRontradeagreements:Viscose Rayon Staple Fiber: Probable Effect of Modification of U.S.-Australia Free Trade Agreement Rules of OriginandProbable Economic Effect of Certain Modifications to the U.S. - Chile Free Trade Agreement Rules of Origin.Inaddition,theCommissioncompleteditsfinalreportonMonitoring of U.S. Imports of Tomatoes,andMonitoring of U.S. Imports of Peppers.Corporateresearchhasincludedexecutivebriefings,datainvestigationsandstaffworkingpapers.

• Overthepast18months,theExecutiveBriefingsonTradeefforthasproducedavarietyoftwo-pagebriefingsontimelyinternationaltradeandeconomicissues.InitiallyproducedtobrieftheCommission,manyofthesebriefingdocumentshavebeenpostedtotheUSITCWebsiteforpublicuse.

• The Commission has continued to advance its research on quantifying NTMs and toincorporatethisresearchinitsstatutoryinvestigations.Furthermore,theNTMdatabasehasbeenupdatedtoreflectrecentcatalogsofNTMsasreportedbytheUnitedStatesandothercountries.InconjunctionwithUNCTADandMAST,theCommissionhaslaunchedacollaborative(“Wiki”)WebpageforNTMresearch.

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STRATEGIC OPERATION NO. 4: Tariff and Trade Information Services

During FY2010 and2011, theCommissionplans to enhance its performance in providing tariffandtradeinformationservicesbyincreasingtheutilityofvariousservicesforitscustomersandbyprovidingtimelyandeffectivenomenclatureandotherservicestoCongressandtheAdministration.Central to this strategic Operation is the publication of the HTS and various types of tariff andtradeinformationwhichareavailableontheCommission’sWebsite.TheCommissionactivelyseeksfeedbackon customer satisfaction, andhas established goals and indicators to account for suchfeedback. External factors affecting performance of this function include legislative changes andcustomerrequestsforassistance.

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 Goal No. 1: Increase the utility and improve the dissemination of tariff and tradeinformationservicestocustomers.


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).

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

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

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

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

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PerformanceGoalNo.2:Providetimely,effective,andresponsivenomenclatureandrelatedtechnicalservicestocustomers.


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).

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).






Performance


- InFY2005,the2005editionoftheHTSandamid-yearsupplementwerepublishedinhardcopy, and the electronic version on the Commission Web site was updated accordingly.WorkcontinuedonstreamliningtheproductionoftheHTSinordertofacilitateupdatingtheDataweb,theAutomatedCommercialEnvironmentdatabaseandotherdatabasesemployingHTScodes.TheCommissionWebsitewasreconfiguredtomakeitsimplertoaccesstheHTS,Dataweb and other tariff–relatedWeb pages. The report on Inv. No. 1205-6 (Preliminary),Proposed Modifications to the Harmonized Tariff Schedule of the United States,wassubmittedtoUSTR.AnITCstaffmemberchairedtwoseparatecommitteesoftheWCOandwasre-electedtochairtheHarmonizedSystemCommitteesessionstobeheldduringFY2006.Commission

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representativesledorparticipatedintheU.S.delegationstotheWCO,andmanyU.S.proposalsandpositions,vettedwithU.S.industryandotherGovernmentagencies,wereacceptedbyourtradingpartners.Morethan600miscellaneoustariffbillswereintroducedintheFYbythe109thCongress,andbytheendoftheFY,theCommissionhadapprovedfactualreportsonmorethan200of themand forwardedthemto theCongress.CommunicationswithUSTR,CongressionalCommittees,andtheprivatesectorallindicatedpositivefeedbackontheITC’sactivitiesintheirbehalfduringtheFY.

- InFY2006,the2006editionoftheHTSandamid-yearsupplementwerepublishedinhardcopyandmadeavailableon-line.Inaddition,fourelectronicrevisionswerepostedtotheCommissionWebsitetoreflect implementationofcertainfree-tradeagreementsandCongressionaltarifflegislation.TheITCalsogeneratedandpublished,onUSTR’sbehalf,appendicestoPresidentialProclamationsimplementingfree-tradeagreementsbetweentheUnitedStatesandMorocco,BahrainandcertainCentralAmericancountries. Thefinal report on Inv.No.1205-6wassubmittedtoUSTRand,subsequently,toCongressforastatutorylayoverperiod,whichwasstillongoingattheendofFY2006.Inthisconnection,theITCworkedcloselywithUSTRandCustomstoupdatestaged-duty-rate-reductiontablesandrulesoforiginforexistingfreetradeagreements,aswellasforcertainpendingFTAs.Commissionstaff ledand/orparticipatedin threeseparatecommitteesof theWCO. Onestaffmemberchairedbothsessionsof theHarmonizedSystemCommittee(HSC)duringthefiscalyearandwasre-electedtochairtheHSC sessions scheduled during FY 2007. During FY 2006 the Commission prepared anunprecedentednumber(nearly900)ofreportsonmiscellaneoustariffbillsandforwardedthemtoCongress.About260provisionswereenactedinP.L.109-280,thePensionProtectionActof2006,andtherestweresetasideforCongressionalconsiderationinearlyFY2007.DuringFY2006,aMemorandumofAgreementwassignedbetweenCustomsand the ITC. Underthis data exchange agreement, the ITCwill provide tariff data toCustoms in exchange fortradetransactiondataneededforAD/CVDinvestigations.Duringthefiscalyear,significantadvancementsweremadeintheproposedre-designoftheprocessforpreparing,updatingandpublishingtheHTSinamannerintendedtoaccelerateandstreamlinethetransferoftariffinformationfromtheHTStotheITCTariffDatabase,theACEdatabaseandotherexternaldatabases employingHTS-based tariff information. In addition, automatedprogramswerebeingdevelopedbyCustomsandtheITCtoexpeditethepreparationanduploadintoCustomsbordersystemsofannualstagedratereductionsforFTAsandtheintroductionofnewFTAs

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astheyare implemented. CommunicationswithUSTR,CongressionalCommitteesandtheprivate sector all revealed positive feedback in theCommission’s activities under StrategicOperationNo.4duringthefiscalyear.

- InFY2007,apreliminaryversionofthe2007editionoftheHTS,effectiveJanuary1,2007,waspostedonlinetoindicatechangesinstageddutyratesundervariousfreetradeagreements.An electronic revision, effectiveJanuary5,2007,wasposted to reflect the implementationofseveralhundreddutysuspensionsanddutyreductionsenactedbyP.L.109-432,theTaxReliefandHealthCareActof2006.AmendmentsarisingfromInv.No.1205-6couldnotbeimplementedbeforeFebruary3,2007,becauseoftheunpredictablenatureoftheCongressionallayoverrequiredbeforesuchimplementation. Atthatpoint,the“finalbasic”versionofthe2007HTSwaspublishedinhardcopyandpostedonline.Theusualmid-yearsupplementwasdelayedinanticipationoftheimplementationoftheU.S.-OmanFreeTradeAgreement.However,thatimplementationwasnotproclaimedbythePresidentbeforetheendofthefiscalyear;assuch,asecondelectronicrevisiontothe2007HTSwaspostedontheCommissionWebsitetoreflectmid-yearGSPamendmentsand484(f)Committeechanges.TATAstaffcontinuedtoworkwithNAFTApartnerstoupdatetherulesoforiginforthatagreement.Commissionstaff ledand/orparticipated in threeseparatecommitteesof theWCO. OnestaffmemberchairedbothsessionsoftheHarmonizedSystemCommitteeduringthefiscalyear. Duringthe FY, substantial advancementsweremade in the proposed re-design of the process forpreparing,updatingandpublishingtheHTSinamannerdesignedtoaccelerateandstreamlinethetransferoftariffinformationfromtheHTStotheITCTariffDatabase,theACEdatabaseandotherexternaldatabasesemployingHTS-basedtariffinformation.CommunicationswithUSTR,CongressionalCommitteesandtheprivatesectorallrevealedpositivefeedbackfortheCommission’sactivitiesunderStrategicOperationNo.4duringthefiscalyear.

- InFY2008,the2008editionoftheHTSandamid-yearsupplementwerepublishedinhardcopyandmadeavailableonline.Inaddition,twoelectronicrevisionswerepostedtotheWebsite, andapossible third revisionwasbeing contemplatednear the end of thefiscal year.Therewasalsosubstantialprogressonthedevelopmentofanonline,interactiveHTSreferencetooldesignedforimportbrokersandCustomsofficers,butwhichwillbeavailableforpublicaccessontheITCWebsite.FurtherprogresswasalsomadeondevelopingamorestreamlinedapproachtoupdatingandpreparingtheHTSforpublication.BoththeseprojectsaretargetedforfullimplementationinFY2009.Commissionstaffledand/orparticipatedinthreeseparatecommitteesof theWCO.Duringthe latterhalfofFY2008,theCommissionpreparedsome775reportsonmiscellaneoustariffbillsandforwardedthemtotheHouseofRepresentatives;

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asoftheendofthefiscalyear,theSenatehadnotyetbegunentertainingnewbillsforthe110thCongress.Staff alsoassisted inupdating rulesof origin for existingFTAs (includingNAFTA)inordertoreflectchangesintheinternationalHS,whichbecameeffectivein2007.CommunicationswithUSTR,CongressionalCommitteesand theprivate sectorall revealedpositivefeedbackintheCommission’sactivitiesunderStrategicOperationNo.4duringthefiscalyear.

- InFY2009,theCommissionaccomplishedthefollowing—• The2009editionoftheHTSandamid-yearsupplementwerepublishedinhardcopyand

madeavailableonline.Inaddition,oneelectronicrevisionwaspostedtotheWebsite.• Duringthefiscalyear,anonline,interactiveHTSreferencetooldesignedforimportbrokers

andCustomsofficerswasimplementedandmadeavailableforpublicaccessontheITCWebsite.Whilethereferencetoolwasverywellreceivedbyourcustomers,furtherimprovementsofthetoolareforeseen.

• Further progresswas alsomade on the possible utilization of the online reference tooldirectlyforupdatingandprintingtheHTSonaregularbasis;inthelongrun,thiswouldrepresentaseachange inthemethodshistorically (andcurrently)used formaintainingandpublishingtheHTS,butfortheshortrun,theCommissionwillworkwithtwoparallelsystems.

• Commission staff led and/or participated in the U.S. delegations to three separatecommitteesoftheWCOinBrussels,Belgium.

• TowardstheendofFY2009,the111thCongressstillhadnotyettakenformalactiontoassemblemiscellaneoustarifflegislationforenactment,buttheprospectfordoingsoseemedimminent;inthemeantime,theCommissionworkedbehindthesceneswithCongressionalCommittees,aswellaswithindividualMembers’offices,bothonthe775billsreportedonforthe110thCongressandonproposednewbillsforthe111thCongress.

• StaffalsoassistedinupdatingrulesoforiginforexistingFTAs(includingNAFTA)inordertoreflectthe2007amendmentstotheinternationalHS.

• StaffworkeddirectlywithUSTRonproposedPresidentialproclamationsconcerningGSPandtheproposedrevisionofadditionaldutiesappliedoncertaingoodsimportedfromtheEU.

Communications with USTR, Congressional Committees and private sector all revealed positivefeedbackfortheCommission’sactivitiesunderStrategicOperationNo.4duringthefiscalyear.

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STRATEGIC OPERATION NO. 5: Trade Policy Support

DuringFY2010and2011, theCommissionplans to improve itsperformance in theprovisionofexpert knowledge and analysis regarding trade related issues to the Congress and the executivebranch. TheCommissionwill work to improve the timeliness, complexity, and scope of supportprovided toCongressand theAdministration, to seek improved feedback fromcustomers,and todelivernewproductsandservicesthatmeetthesituationalneedsofitscustomers.Externalfactorsaffectingperformanceofthisfunctionincludecustomerrequestsforassistance,staffinglevelsandlegislativechanges.

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.


PerformanceGoalNo.1:Provideenhancedreal-time,efficient,andeffectivetechnicalinformationandanalysistosupportorganizationsinvolvedintradepolicyformulation.


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

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

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

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

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

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.

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PerformanceGoalNo.2:ImprovetheCommission’scommunicationswithitscustomerstoensurethattheyunderstandtheagency’scapabilitiesandareabletobenefitfromitsexpertise.


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

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

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


Performance

DuringFY2005,2006,2007,2008,and2009,theCommissiongenerallymettheperformancegoalsofitsPerformancePlans:

- InFY2005,therewasasignificantincreaseinthenumberoftradepolicyissueareasforwhichthe executive branch and congressional committees sought support from theCommission.In FY 2005, staff regularly sought targeted feedback from customers; staff was able toconductbriefing/feedbackmeetingswithUSTR in connectionwithmost studies.Feedbackwasoverwhelminglypositive frombothUSTRandCongress,withsomesuggestionsofhowlessonslearnedinsuccessfulstudiescouldbeappliedinthefuture.TheprimarymeansoffeedbackfromCongresswasbytelephoneande-mail,andwasmoreproduct-specific.Hillstaffinparticularexpressedappreciationfortimelyandquick-turnaroundresponses.

- In FY 2006, the Commission demonstrated its wide ranging expertise by responding torequests from congressional oversight committees andUSTRwhich involvedwell over 100discretetrade,legal,orcompetitivenessissues.Effortstobetterservetheseprimarycustomersresultedinmoretimelyanalysis,asstaffsoughtopportunitiestoprovideinformationusingstreamlinedproceduresthatminimizebureaucraticsteps.Theseimprovementswereshapedbystaffinitiativestoseektimelyproduct-specificfeedbackfromcustomers.TheCommissionalsodedicatedstafftofocusingonareasUSTRidentifiedashavingsignificantongoingneed,including the Generalized System of Preferences, negotiation support in the Services and

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Non-AgriculturalMarketAccesssectors,andtradecapacitybuilding.TheCommissionalsosignificantlyincreaseditscommitmentofresourcestoaidUSTR’slitigationrequirementsininternationalfora.

- InFY2007,agencystaffcontinuedtorespondtorequestsfromUSTRandtheCommission’scongressionaloversightcommitteesforinformationtosupportdecision-makingonawidevarietyoftradepolicyissues.DespitedecliningstaffinglevelsduringtheyearintheofficesprimarilyresponsibleforOP5activities,theCommissionagainrespondedwithinformationonover100differenttradeissues.Effortstoprovidemoresubstantivepre-decisionalproductsthroughthisstrategicOperationledtothedevelopmentofcomplexworkproductsexaminingissuessuchaspost-FTAshiftsintrade,thehistoricalandprojectedimpactofpreferentialdutyprograms,tradeinenvironmentalgoodsandservices,andmarketaccessconcerns.ApilotprogramtodevelopanelectronicrepositoryfortradenegotiationdocumentswasdemonstratedtoUSTRstaff.Basedontheirinterest,asecondphaseofthepilot,involvingNAFTAdocumentation,wasinitiatedtodevelopabroaderbasisforUSTRtoevaluatethesystem’susefulnessandtheirlongterminterestintheeffort.TheCommissioncontinuedtoprovidededicatedpersonneltosupportUSTRandtheoversightcommittees,balancingthecontributionsinthisstrategicOperationwith competing demands brought on by high levels of work in other strategicOperations,especiallyStrategicOperationNo.3.

- InFY2008,StrategicOperationNo.5workagainincludedbothmorecomplexproductsandmore limited, quick turnaroundproducts. Someof thesemore complexproducts involvedfollow-onworkassociatedwithreportsdeliveredpursuanttostatutoryrequestsunderStrategicOperationNo.3,suchasadditionalinformationonChinesetradepolicies,detailedinformationontheperformanceoftheGSPprogram,ongoingactivitiesconcerningtheU.S./PeruFTAandseveralotherpotentialtradeagreementsincludingtheongoingDohaRoundnegotiations.Inaddition,staffprovidedinformationontheEuropeanUnion/Sub-SaharanAfricaPartnershipAgreements, information to support deliberations on theNewPartnership forDevelopmentAct, informationonstate-levelemploymenteffectsoftheproposedU.S./ColombiaFTA,andsimulationmodelingtosupportUSTRtradenegotiators.TheCommissioncontinuedtoprovidededicatedpersonnel to supportUSTRandCongress,buthighworkloads inother strategicOperations limited this type of activity. In order tomore efficiently and effectively addressrequests,theCommissionformedasmallcross-officeteamtocoordinateStrategicOperationNo.5activities.

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- In FY 2009, the Commission provided significant assistance to support notificationrequirementsforvariousmulti-nationalorganizations,addressingavarietyofprogramsandproducts. Assistance to support the analysis of policy actions taken, or contemplated, bytradingpartnersaddressedbothcollaborativeandretaliatoryefforts,includingtariffpreferenceprograms,retaliatorytariffscenarios,andtheimpactofchangesinregulatoryframeworks.Insome cases, this assistance included economicmodeling to provide quantitative estimates,at national or state levels, on which to base policy decisions. Significant resources werededicated to supportingdecisionmakers responsible for guiding thepolicies governing theU.S.GeneralizedSystemofPreferences.Comparativeanalysisofrules-of-origincontainedinnumeroustradeagreements,foravarietyofelectronicandchemicalproducts,alsorequiredsignificantresources.

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