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Export Promotion: Problems in Commerce's Programs

NSIAD-89-44 Published: Jan 26, 1989. Publicly Released: Jan 26, 1989.
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Highlights

In response to a congressional request, GAO reviewed the U.S. and Foreign Commercial Service's (US&FCS) foreign operations and progress in revitalizing U.S. export promotion efforts.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Commerce The Secretary of Commerce should direct the Under Secretary for International Trade to revise the regulations for the trade show certification program to require, as a condition for U.S. government certification, that applicants agree to meet participation targets or goals for small- and medium-sized firms and new exporters.
Closed – Implemented
Commerce is testing an alternative approach which should accomplish the objective of this recommendation. The new certification will require organizers to describe plans to recruit small- and medium-sized firms.
Department of Commerce The Secretary of Commerce should direct the Under Secretary for International Trade to establish a process to evaluate the trade show certification program's effectiveness in meeting congressional and ITA export promotion objectives of expanding the volume of exports by small- and medium-sized and new-to-export/new-to-market firms.
Closed – Implemented
ITA has revised its Trade Fair Certification marketing plan to include a process to evaluate participation by small- and medium-sized and new-to-export/new-to-market firms.
Department of Commerce The Secretary of Commerce should reorganize ITA to reflect its major responsibilities and its two key trade-related missions.
Closed – Implemented
Commerce plans to take other action to address the identified deficiencies.
Department of Commerce The Secretary of Commerce should direct the Under Secretary for International Trade to develop guidelines outlining the duties and responsibilities of each ITA unit and operational procedures and instructions to govern the event planning, selection, and implementation processes.
Closed – Implemented
Commerce developed formal guidelines outlining formal duties and responsibilities of each ITA unit. This recommendation was implemented on August 1, 1989.
Department of Commerce The Secretary of Commerce should direct the Under Secretary for International Trade to formalize the trade promotion event schedule and require periodic reports on the status of each event, including developing a firmer event schedule, establishing management controls over event additions and cancellations, and reducing the current 24-month planning interval for trade events.
Closed – Implemented
Commerce has revised the trade events management system, and shortened the planning process by 6 months.
Department of Commerce The Secretary of Commerce should direct the Under Secretary for International Trade to issue instructions that all proposals for ITA-approved events must be supported by detailed market research and that the proposed location should be compatible with the best prospects identified in annual country marketing plans.
Closed – Implemented
Commerce has revised the events management process.
Department of Commerce The Secretary of Commerce should direct the Under Secretary for International Trade to combine the quarterly statistical report and the monthly narrative highlight report.
Closed – Implemented
Commerce has taken other action to streamline the reporting system. Commerce retained the quarterly statistical report because it was needed for multiple management purposes.
Department of Commerce The Secretary of Commerce should commission an independent expert review of the Commercial Information Management System's (CIMS) technical status and the potential to overcome technical problems and develop projections of total costs to fully implement and maintain the system. The Secretary should then direct the Under Secretary for International Trade to establish a new management structure to provide oversight of system implementation and expansion, as required by the Omnibus Trade and Competitiveness Act of 1988.
Closed – Implemented
An independent technical review of CIMS was completed by Price Waterhouse in November 1989. The system is being revised in response to new information needs identified in the December 1989 Strategic Review of US&FCS services.

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Topics

Agency missionsBusiness assistanceExport regulationExportingFederal agency reorganizationInternational economic relationsInternational tradeInvestments abroadManagement information systemsSales promotion