Introduction

The U.S. International Trade Commission (Commission or USITC) is an independent and nonpartisan, federal agency with specific responsibilities in adjudicating and enforcing certain U.S. trade laws, providing relevant and timely analyses to the President and Congress on trade issues, and maintaining the Harmonized Tariff Schedule of the United States (HTS).

The Commission adjudicates disputes and enforces U.S. laws to ensure that U.S. businesses and workers do not face unfairly traded and injurious imports in the U.S. market. These laws address issues such as injurious dumping, trade-distorting subsidies, and unfairly traded imports.

Beyond our quasi-judicial work, the Commission informs U.S. trade policy on an evolving range of issues. As trade has become a much larger part of the U.S. economy, trade policy has become more controversial, and trade agreements have become more complicated, Congress and the President frequently turn to us for our uniquely nonpartisan and independent expertise.

The Commission analyzes how international trade impacts the U.S. economy and American workers. Over the past year, the Commission has provided Congress and the President with reports and technical assistance on a variety of topics including a study of distributional effects of trade and trade policy on U.S. workers; studies related to foreign censorship policies and practices and their trade and economic effects on U.S. businesses; studies of the effect of cucumbers and squash imports on U.S. seasonal markets; and a study on the effect of modification to U.S.-Korea Free Trade Agreement Rules of Origin on certain fabrics of triacetate filament yarns.

Congress also periodically adds additional mandates to the Commission’s mission. For example, the American Manufacturing Competitiveness Act of 2016 (AMCA), 19 U.S.C. § 1332 note, now expired but may be renewed for another cycle, required the Commission to create and maintain an open and transparent process for consideration of petitions for duty suspensions and reductions. The Commission also received additional responsibilities pursuant to the United States-Mexico-Canada Agreement (USMCA).

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Workload Drivers

The Commission continues to experience sustained high caseload levels in AD/CVD investigations and a higher number of unfair import investigations described below, and we have been devoting more resources to conducting or supporting other investigations and Administration initiatives. Due to repeated increases and record-number of petition filings in import injury investigations, the average number of instituted and completed investigations has almost doubled in the last decade with commensurate increases in monthly import injury activity levels. While stabilizing, workload is expected to remain at high levels due to an increased number of investigations regularly returning for five-year reviews. Although AD/CVD investigations represent the bulk of import injury activity, the Commission continues to handle litigation-related activity, and manages ongoing follow-on safeguard-related investigations, such as end-of-relief investigations on large residential washers and solar products.

Likewise, in FY 2022, our section 337 workload reached the highest level of activity to date and is expected to remain at high levels. The high level of active section 337 investigations in FY 2022 was due to the number of investigations instituted in FY 2020 and FY 2021 that were carried-over into FY 2022 in addition to new investigations commenced in FY 2022. Despite the record number of completed investigations in FY 2022, the settlement rate in section 337 remained low, so we expect the number of unfair import investigations to remain at high levels for years to come. Indeed, for nearly two decades, there has been an overall upward trend in new investigations filed year over year and FY 2022 was no exception, and we expect the trend to continue in FYs 2023 and 2024.

At the same time, the number and increased complexity of factfinding investigations and trade policy support requests have required more research and resources. The increasing number of complex reports with broad scope, such as Foreign Censorship and Distributional Effects, have increased requirements for innovative modeling and increased the number of staff and hours devoted to these reports.

In addition, we have had to amend the Harmonized Tariff Schedule of the United States (HTS) in recent years an unprecedented number of times to incorporate the changes brought about by Administration initiatives. In a typical year, two or three HTS revisions are made; in FYs 2020 and 2021, 28 and 18 revisions were made, respectively. In FY 2022, the Commission continued to complete revisions to the HTS at an elevated level: publishing the HTS 17 times to implement multiple tariff changes.

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Program Overview

Antidumping/Countervailing Duty Investigations and Unfair Import Investigations (Section 337)

The Commission provides a venue for private sector firms and other qualifying entities to bring allegations of certain unfair or injurious trade practices involving imports before an independent, objective, and expert quasi-judicial governmental body. Our trade remedy investigations caseload continues to grow in volume and complexity. In FY 2022, the number of AD/CVD investigations remained at historically elevated levels. The caseload is expected to stay relatively high in FYs 2023 and 2024, though driven primarily by the structural and more predictable increase in reviews of existing orders required every five years after imposition. In FY 2022, new unfair import matters under section 337 exceeded the peaks in previous fiscal years by five percent, and we expect caseload to remain high in FYs 2023 and 2024.

AD/CVD Caseload and Recent Safeguard Actions are at Record High Levels

In FY 2022, 10 petitions were filed under Title VII of the Tariff Act of 1930. Filings in FY 2022 were low compared to recent record-breaking years though consistent with the pre-2015 average. In FY 2022, approximately two-thirds of the petitions involved imports from multiple countries. Domestic industries filing petitions in FY 2022 produced a range of products, including various chemical, processed agricultural, steel and metal and intermediate products. Almost half of the investigations covered chemical products (such as sodium nitrite, barium chloride, and superabsorbent polymers). Additional investigations covered agricultural products (such as preserved mushrooms, white grape juice concentrate, and lemon juice) and steel-related products (such as oil country tubular goods, steel nails, and freight rail couplers and parts). Some investigations were notable because of the size and/or complexity of the U.S. industry and market, including oil country tubular goods, steel nails, and superabsorbent polymers. In addition to new investigations, we instituted 41 reviews of existing AD/CVD orders in FY 2022 and anticipate instituting 35 in each of FYs 2023 and 2024. While the number of import injury review activity increased, the amount of safeguard activity was less than recent years. In FY 2022, the Commission completed one safeguard extension investigation on crystalline silicon photovoltaic cells and modules (solar panels). The Commission will also conduct end-of-relief assessment reports when actions taken by the President expire for large residential washers and solar products, two measures that are based on investigations that were initiated

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in 2017. In addition, as a result of the extension of relief, the Commission will conduct a second monitoring investigation on solar products starting in FY 2023. Overall, the Commission instituted 65 investigations and reviews and completed 52 investigations and reviews in FY 2022. Recent activity reflects the normal cyclical activity of cases and continued, but stabilizing, elevated levels (the FY 2012-to-FY 2021 average for institutions and completions was 54 and 53, respectively). We anticipate continued high caseload levels, driven primarily by returning reviews; in FY 2023, we anticipate instituting 67 proceedings and completing 73. In FY 2024, we anticipate instituting 71 proceedings and completing 72.

During FY 2022, we continued our efforts to increase the transparency of our proceedings and reduce the burden on participating parties. We used information obtained from the FY 2021 external stakeholders survey about virtual staff conferences and hearings to inform ongoing efforts related to hybrid and in-person staff conferences and hearings. In FY 2022, we made substantial gains in our ongoing efforts to develop a data system for more complete, timely, and accessible reporting of investigative information (the Investigations Database System, or IDS), including Title VII information. Completion and rollout of IDS for the public occurred in the second quarter of FY 2023.

Unfair Import Investigations Caseload Remains High

In FY 2022, our section 337 workload reached the highest level of activity to date, due to the number of carryover investigations from FY 2021 into FY 2022 and new investigations commenced in FY 2022. We anticipate that there will be a high number of active cases throughout FY 2023 and into FY 2024.

Our proceedings provide for timely resolution of matters involving imported goods alleged to infringe U.S. intellectual property (IP) rights and imports that are involved with other unfair acts or methods of competition, such as trade secret misappropriation, that harm domestic industries. Indeed, it has been reported that nearly a quarter of the patent trials in the United States occur at the Commission. Section 337 authorizes relief in the form of exclusion of infringing or otherwise unfairly traded imports at the border. IP-intensive domestic industries that seek relief against unfair imports under section 337 account for a large number of high-wage jobs in U.S. industries that generate significant exports.

The range of technologies covered in these investigations is quite broad, encompassing, among other things, various electronic devices, pharmaceutical and medical devices, transportation-related products, and other consumer goods such as artificial

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eyelashes, stud finders, shingled solar modules, home security and HVAC systems, swabs used in medical testing, and decorative wood grain paper for use in furniture. Section 337 investigations typically involve allegations of patent infringement and other unfair acts such as trademark infringement, trade dress infringement, false advertising, and trade secret misappropriation, the latter of which is an area of heightened concern for U.S. companies and Congress.

Work is ongoing to ensure that section 337 investigations are completed expeditiously, in line with congressional intent. We continue to build and develop the necessary staff and resources to conduct evidentiary hearings in section 337 investigations and focus on making the process more efficient and less costly for both litigants and the agency. Our efforts include improvements to courtroom space, acquisition of a FedRAMP-certified video-teleconference platform for virtual evidentiary hearings, outfitting our hearing rooms to accommodate remote witness testimony, improvements to our rules of procedure, procedural pilot programs, and substantial investments over the past few years in our Electronic Document Information System (EDIS). Further, in FY 2021, we implemented electronic service of public documents through EDIS, and plan to expand to include confidential service in FY 2023. We acquired BOX, a FedRAMP-certified cloud content management system, to enhance the secure transfer, use, and storage of the voluminous electronic documents produced in our investigations. We also transitioned our unfair import investigation database, 337Info, which has provided detailed information to the public about investigations instituted since October 1, 2008, to IDS, enhancing features that were provided in 337Info. These efforts necessitate an adequate level of funding.

Synergies between EDIS and IDS will help us to better manage our large volume of investigation-related materials while making our investigative process more transparent. These systems also comply with government Open Data rules, furthering our efforts to make our data more accessible to and usable by other agencies and the public. Funding these types of improvements will help us to address the challenges of resolving section 337 matters expeditiously and will keep the public informed on these matters.

Analysis and Information on Tariffs, Trade, and Competitiveness

The Commission supplies the executive branch and Congress with objective analyses of significant trade issues. We provide industry and economic research, tariff and trade information, and trade policy support through investigations and other expert advice. Given our independent economic and trade expertise, we offer cutting-edge data and insights that support the development of sound U.S. trade policy. The caseload for industry and economic analysis was at a high level in FY 2022, and the number of requests will likely remain at similar levels in FY 2023 and FY 2024.

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We Continue to Develop New Approaches in Our Industry and Economic Analyses

International trade touches nearly all sectors of the U.S. economy. As with section 337 and Title VII investigations, we constantly develop and refine our capabilities to meet requests for increasingly complex analyses in emerging areas of international trade, trade policy, and competitiveness. We gather primary data to provide unique insights into emerging issues, assembling this information via a variety of instruments, including carefully crafted industry surveys.

Our staff also develops new methods to produce high-quality economic analysis to meet analytical priorities relevant to our requestors. During FY 2022, our priority effort for model innovation was estimating the distributional effects of trade on underserved U.S. communities. During FYs 2023 and 2024, we plan to continue our efforts estimating impacts of trade on U.S. workers and communities. We will also improve our analytical capabilities to estimate the effects of tariffs imposed under Sections 232 and 301, the impact of the United States-Mexico-Canada Agreement (USMCA) automotive rules of origin, assessing industry competitiveness, and analyzing supply chains.

Our work in industry and economic analysis spans a wide variety of issues and responds to both specific requests and areas of potential interest from the President and Congress. A few examples include:

To effectively support the requests of trade policymakers, we must maintain a staff with expert knowledge and skills to provide relevant and timely insights on trade, investment, and the international competitiveness of U.S. companies in the global marketplace.

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Tariff and Trade Information Services Benefits from New Technology and Improved Business Processes

Our work to maintain and update the HTS, as discussed above, also impacts other U.S. agencies, private parties, and other stakeholders. U.S. Customs and Border Protection (CBP) relies upon the HTS for collecting tariff revenues on imported goods. Private firms use the HTS to learn the duties that they will pay on imported goods. U.S. exporters and importers depend on our work in the World Customs Organization to ensure that global tariff product classification (“nomenclature”) is up to date and takes into account stakeholder interests and changing patterns of trade. Compared to two or three revisions in a typical year, in FY 2022, we prepared and published the HTS 17 times, including the Preliminary Edition and the annual Basic Edition in January 2022. Revisions were made to reflect trade actions with respect to infant formula, increase the column 2 rate of duty with respect to imports from the Russian Federation, adjust tariff rate quota quantity limitations in accordance with the U.S.-Australia Free Trade Agreement, suspend application of the safeguard measure to imports of crystalline silicon photovoltaic cells originating from Canada, and address changes with respect to steel and aluminum imports and Section 301 China tariffs.

The HTS provides the foundation for the U.S. trade data maintained by the U.S. Census Bureau (Census), and it enables CBP to manage its trade and enforcement activities. We ensure that the HTS is both accurate and up to date so that it meets the demands for trade and tariff information from Census, CBP, U.S. exporters and importers, the Administration, and policymakers in Congress. Due to the size and openness of the U.S. economy and the volume of U.S. trade, the HTS is the most heavily used tariff schedule in the world. Its more than 19,000 10-digit statistical subheadings must be updated and maintained throughout the year to reflect changes from implementing trade agreements and from other congressional and administration actions. In FY 2014, the HTS was redesigned and developed as a data management system to which we have made routine and incremental improvements. In FY 2021, we began to gather requirements to significantly upgrade the data management system and HTS search application. This effort continued in FY 2022. In FY 2022, we continued to make improvements to DataWeb (the USITC web application that makes available official U.S. import and export statistics to the public in a queryable web-based interface), which had undergone an extensive redesign in FY 2018. We have plans to conduct another major overhaul; however, the timing of this major version change is uncertain.

Thoughtfully executing these necessary improvements requires time and resources. In particular, we plan to deploy needed functional improvements to the HTS Data Management System in FY 2023, while simultaneously continuing the effort to gather requirements and scope-out a more significant reengineering of both the HTS Data Management System and the public-facing

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search application. The FY 2023 improvements to the HTS Data Management System will be followed by a major version update to DataWeb; however, the timing of the development of the next version of DataWeb is contingent on successful completion of the HTS improvements. The skills needed to support many of these tariff and trade information services (e.g., HTS maintenance and improvement and working with large volumes of merchandise trade data statistics) are unique and can take years to develop. Moreover, many of the agency experts that we rely on for tariff and trade information services are approaching retirement eligibility, so we expect human capital planning and recruitment to be a priority over the next few years.

Trade Policy Support Remains a Key Focus Requiring Deep Expertise

We draw heavily on staff in all agency program areas to respond to requests for trade policy support from Congress and the Administration. In FY 2022, we supplied rapid responses on a broad array of issues and topics, ranging from litigation support in international tribunals to assessments of specific industry and economic issues, including digital services and trade, environmental impacts of trade agreements, trade facilitation measures, and the USMCA dairy dispute panels. Moreover, behind-the-border issues related to regulation and services trade have required us to refocus our resources, apply new analytic techniques, and develop new trade-related databases. Our staff often provides support to policymakers developing new or revising existing trade programs and policies as well as negotiators working on proposed trade agreements or adjustments to existing agreements. We supply information, expertise, and software-based tools to support U.S. negotiating teams.

Congress and the Administration place a high value on our staff’s ability to produce timely, objective, and independent information related to their most urgent issues. Because we are facing heavier workloads, work that is more complex, and staffing challenges in various areas, we anticipate that we will experience significant constraints on our ability to respond to these requests if the requested level of funding is not received.

Diversity, Equity, and Inclusion in Our Workforce

In FY 2022, our diversity, equity, and inclusion (DEI) program was primarily led by the Office of Human Resources. Programmatic enhancements included coaching training for all supervisors and managers as part of their triennial mandatory training with the intent of building the skills needed to foster a more inclusive environment. The DEI Council, the cross-agency working group formed to make recommendations representative of the broader workforce and carry out a portion of the DEI programming, held

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regular activities and distributed a newsletter highlighting the significance of each special emphasis and heritage month. Additional programming included agency-wide, DEI-related trainings; an agency-wide mentoring program and coaching for supervisors; sponsorship for an employee to attend a leadership program with a focus on DEI; and dedicated intranet resources, including a SharePoint page. Additional efforts in the area of accessibility and inclusion have included training and application of 508 accessibility measures both through our reporting and at hearings. Specifically, all published factfinding investigations, staff working papers, Journal of International Commerce and Economics articles, administrative reports, and Commission reports for Title VII investigations were 508 compliant.

To effectively support and advance these efforts in FYs 2023 and 2024, we must maintain our commitment to hiring staff with expert knowledge in these areas including DEI, hiring and staffing, retention, and training. Dedicated human capital resources are needed to ensure a lasting and meaningful commitment to these efforts. In the meantime, we expect to continue to utilize the DEI Council as a consultative body to help assess program diversity, equity, and inclusion across the agency and recommend areas for further examination and review. We will maintain the continuity of programming mentioned previously, alongside improving workforce satisfaction with the Commission’s DEI efforts, sponsoring participation in a variety of leadership development programs, and continuing our commitment to diverse recruitment through initiatives such as the paid internship program. Over the next two years, the Commission will continue its efforts to increase the accessibility of the written materials it provides the public by achieving full 508 compliance for its public documents. This supports its broader efforts to provide clear and accurate work products and customer service.

Information Technology Security

We continue to demonstrate our commitment to improving our IT security by complying with and implementing mandates and best business practices pertaining to IT security in a timely way. We continue to expand and improve our access controls, as well as bolster our core architecture using more secure devices and reducing our physical footprint. We continue to enhance our continuous monitoring abilities as they relate not only directly to IT security, but also to operations and maintenance activities. We monitor, track, and report on all activities via our security operations center. We continue to implement a full zero-trust architecture.

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In FY 2024, strengthening our IT security posture by investing in new technologies, processes, and capabilities will continue to be a priority. Planned improvements include the following:

Remote and Cloud Computing

We plan to further advance our continuity and telework capabilities in FY 2024 by maintaining a secure and modernized remote access solution, adding additional service provider capacity and redundancy, and ensuring improved levels of availability and accessibility by expanding our hybrid cloud-based architecture. We also expect to add additional compute capabilities to the second, remote telecommunications core schedule for procurement and implementation in FY 2023. This additional compute capability will provide even higher levels of redundancy and performance for remote and local users.

The Commission will continue to implement non-proprietary development techniques and technologies to ensure flexibility and portability in cloud deployments, while maintaining the necessary levels of IT security. In FY 2024, we expect to continue utilizing a hybrid cloud-based architecture to improve the availability and accessibility of our systems, increase our redundancy, and reduce our dependence on physical data centers.

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Risk Management and Planning

We have an enterprise risk management (ERM) process to establish, maintain, monitor, evaluate, and report on agency risks. The process is led by the Director of the Office of Internal Control and Risk Management, who reports directly to the Chairman. ERM is an integral part of all strategic planning, performance management, budget, IT, and human capital functions and activities. As part of this effort, we maintain an ERM database, which supports categorizing, documenting, and evaluating risks to the agency. Management performs ongoing assessments to identify, manage, and update the risks in this database. Our risk profile is developed from the risk database and ranks risks from an agency-wide perspective. The profile is discussed, prioritized, and reviewed by the Commission’s Performance Management and Strategic Planning Committee. The primary purpose of the risk profile is to assess how the risks we face from operations, mission-support activities, and external factors influence our ability to meet the agency’s mission and achieve its performance goals.

The Office of Management and Budget (OMB) provides agencies with guidance related to risk management in certain specialized areas, including cybersecurity. OMB directs agencies to assess their cybersecurity risk, to manage the cybersecurity component of enterprise risk, and to adopt the Framework for Improving Critical Infrastructure Cybersecurity. The Commission manages risk in a way that is commensurate with the magnitude of the harm that would result from unauthorized access, use, disclosure, disruption, modification, or destruction of a federal information system or federal information. The Commission complies with all cybersecurity reporting requirements.

Each quarter, agency leaders and other senior staff review progress on our strategic and management objectives and identify and discuss enterprise risks. These reviews, along with the evidence related to specific performance goals and associated risks identified by our managers, inform the development of our Annual Performance Plan and Congressional Budget Justification. We continue to evaluate how to improve our planning and ERM processes and how to make more effective use of the data we collect.

Good Accounting Obligation in Government Act

The Good Accounting Obligation in Government Act requires each agency to include in its annual budget justification a report that lists each public recommendation issued by the Government Accountability Office (GAO) and the agency’s Office of Inspector General (OIG) that has remained unimplemented for one year or more from the annual budget justification submission date. The

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Commission does not have any open GAO recommendations. The Commission also does not have any IG recommendations that

have been open for more than one year.

Publications Proposed for Elimination

The Commission has identified two publications that it has proposed for elimination or streamlining in response to requirements of the GPRA Modernization Act of 2010. Specifically, the Commission has requested elimination of the requirement found in 19 U.S.C. § 3204 to provide the Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution report. The requirement is outdated because the President's authority to provide trade preferences under the Act expired in 2013 and has not been extended by Congress. Thus, none of the four eligible countries has participated in the program since 2013. As a result, there is no continued benefit to issuing the report.

Similarly, the Commission requested that Congress streamline the production of the HTS by eliminating the requirement to print a hard copy of it, which can be found in 19 U.S.C.§ 3007(a). The statute requires the Commission to prepare a hard-copy version of the HTS and authorizes it to publish an electronic version. Users of the HTS rely almost exclusively on the electronic version. The requirement of a hard copy duplicates the electronic version. In addition, the hard-copy version often becomes outdated soon after issuance due to the numerous modifications, and it therefore provides little benefit to the public.

Preparing for Future of Work and Physical Space Reconfiguration

Agency leadership is engaging with mission owners and human capital, IT, and real property mission support functions to determine the most effective and efficient business practices to meet mission requirements in the post-pandemic era. The analysis includes assessing the continued use of telework, remote work, and hybrid work, hallmarks of pandemic and post-pandemic operations for government and non-government employers alike, and the implications of those work models on our physical space requirements. The agency may be able to achieve cost savings through a reduction in leased space. Of particular concern to the agency when assessing future of work and physical space configuration is ensuring optimal hybrid operations of our public courtroom complex.

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Salaries and Expenses

“For necessary expenses of the International Trade Commission, including hire of passenger motor vehicles and services as authorized by section 3109 of title 5, United States Code, and not to exceed $2,250 for official reception and representation expenses, $130,980,000, to remain available until expended.”

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Import Injury Investigations

We conduct investigations to determine whether unfairly traded imports cause or threaten material injury to a U.S. industry, or materially retard an industry’s establishment, under Title VII of the Tariff Act of 1930. Under this law, unfair imports can be remedied through antidumping and countervailing duty (AD/CVD) orders imposing duties on the goods in question. The U.S. Department of Commerce (Commerce) issues and administers these orders. We conduct five-year reviews of existing AD/CVD orders to determine whether their revocation would be likely to cause material injury to a U.S. industry to continue or recur. We have independent litigation authority to defend our decisions in appeals to the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit (Federal Circuit), as well as in proceedings under the United States-Mexico-Canada Agreement (USMCA, formerly NAFTA). We also give extensive assistance to the United States Trade Representative (USTR) in resolving disputes before the World Trade Organization (WTO).

Unfair imports, whether subsidized by a foreign government or “dumped” for sale at prices below the foreign market price or the cost of production, can injure U.S. companies. Congress enacted the AD/CVD laws to give U.S. producers and labor unions a way to

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obtain remedies when we find material injury or threat of material injury stemming from imports that Commerce has determined to be unfairly traded. The remedies take the form of AD/CVD duties on imported merchandise equivalent in value to the dumping margin and/or subsidy rate found for foreign producers by Commerce.

Historically, AD/CVD petitions have covered a broad range of products representing many sectors of the economy, including chemical, steel, processed agricultural, and intermediate products. In FY 2022, we instituted 10 preliminary-phase investigations covering a wide variety of industries in the U.S. economy. Almost half of the investigations covered chemical products (such as sodium nitrite, barium chloride, and superabsorbent polymers). A substantial number of the investigations covered processed agricultural products (such as preserved mushrooms, white grape juice concentrate, and lemon juice) and steel or intermediate products (such as oil country tubular goods, steel nails, and freight rail couplers and parts). The high level of import injury activity over the last 5 to 10 years has contributed to a structural increase in the number of AD/CVD orders returning for five-year reviews. In addition to new investigations, we instituted 41 reviews of existing AD/CVD orders in FY 2022 and anticipate instituting 35 in each of FYs 2023 and 2024. The five-year average number of review institutions increased from 17 during 2008–2012, to 22 during 2013– 2017, to 27 during 2018–2022. In FY 2022, the Commission completed one safeguard extension investigation on solar panels and, as a result of the extension of relief, will conduct a second monitoring investigation on solar products. The Commission will also conduct end-of-relief assessment reports when actions taken by the President expire for large residential washers and solar products, two measures that are based on investigations that were initiated in 2017. In FY 2022, the Commission instituted 65 investigations and reviews (compared to 61 in FY 2021) and completed 52 investigations and reviews (compared to 67 in FY 2021). This level of overall investigations reflects the normal cycle of cases and is consistent with recent elevated levels (the FY 2012-to-FY 2021 average for institutions and completions was 54 and 53, respectively).

In FY 2022, approximately two-thirds of the 10 petitions filed involved imports from multiple countries, ranging from 2 to 5 countries per filing, totaling 18 countries with India and Russia being the predominant import sources (included in 3 of 10 petitions each). Collectively, AD/CVD investigations resulting from petitions filed in FY 2022 involved about $7.1 billion in U.S. consumption, $4.0 billion in imports, and more than 7,000 U.S. production employees. The leading contributors to the U.S. consumption value were oil country tubular goods, representing more than half of the total, followed by steel nails, and superabsorbent polymers. The oil country tubular goods industry accounted for most of the U.S. employment value, followed by the steel nails industry.

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To conduct import injury investigations and reviews, we assemble multidisciplinary teams that compile information from several sources, including questionnaire responses from domestic and foreign firms, publicly available information, plant tours, testimony at USITC staff conferences and hearings, and legal briefs from parties. Our investigative teams prepare fact-based reports on which the commissioners rely to make their determinations. Interested parties’ representatives approved under administrative protective orders (APOs) have access to the information that we examine, including confidential information released under the APO. All hearings and votes are open or available to the public, and public versions of reports, party submissions, and opinions are available on our website, offering timely and useful information to companies and individuals.

Our investigative processes are fair and transparent. We ensure that investigative records are complete and contain information from all parties so the commissioners can make sound and objective determinations that can withstand judicial scrutiny. We continually seek to upgrade our processes in terms of speed, efficiency, and technical soundness. In FY 2022, the Commission made substantial advances to ongoing efforts to develop a data system for more complete, timely, and accessible reporting of investigative information (the Investigations Database System, or IDS), including Title VII information. We implemented advancements in the areas of system testing, advanced search functionality, as well as initial deployment of the system for internal use. We completed migration and checks of historical data and expanded the system’s functionality. Completion and rollout of IDS for the public occurred in the second quarter of FY 2023.

In FY 2021, we issued a stakeholder survey about virtual staff conferences and hearings to better understand the benefits and challenges of virtual staff conferences and hearings for external parties. During FY 2022, we used this feedback to inform initiatives related to hybrid hearings and the transition to in-person staff conferences and hearings. To support more dynamic and timely dialogue and feedback on Commission process, during FY 2022 we also reached out to external stakeholders to establish regular meetings and information exchanges. In FY 2022, the Commission completed and implemented an initiative to collect quantitative information from firms responding to the Commission’s notice of institution in five-year reviews. As noted above, these investigations constitute a growing share of import injury investigations, and standardized collection of data in spreadsheet rather than PDF allows more efficient submission and processing of firm and industry data. We continued our efforts to promote transparency—efforts that are critical to maintaining operations and meeting statutory deadlines despite the challenges of transitioning back to in-person activities during the fiscal year. Throughout FY 2022, we continued to make publicly available investigations-related content available on the internet. Despite the elevated workload, the Commission met 100% of deadlines set by statute for agency determinations and reports.

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Our workload in import injury investigations is a function of both new filings and reviews of existing orders; estimating the number of future filings is more difficult than estimating the number of future reviews. Overall caseload (i.e., new filings plus reviews) fluctuates from year to year and the number of investigations and reviews instituted has steadily increased, exhibiting a sustained upward shift in recent years. Annual institutions fluctuated between 32 and 47 from FY 2008 to FY 2015 (with an average of 40) but fluctuated between 56 and 75 from FY 2016 to FY 2022 (with an average of 63). This upward shift was driven by several years of above-average petitions; petition filings fluctuated between 3 and 15 from FY 2007 to FY 2015 (with an average of 10) but fluctuated between 11 and 26 from FY 2016 to FY 2022 (with an average of 17). A complicating factor is the large share of staggered cases (i.e., multiple-country investigations that have more than one final determination date) because of the uncertainty they cause regarding investigation start dates and overall duration. Because of these issues, staggered cases further complicate the administrative and scheduling challenges across an existing heavy caseload. The growth in cases instituted per year has also been the result of fewer trade-remedy orders being revoked in recent years, either at the Commission or at Commerce, resulting in a stock of orders that has increased substantially in the past five years. The five-year average of instituted reviews increased from 20 for FY 2012–16 to 25 for FY 2017–21; the projected five-year average for FY 2022–26 is 37. We anticipate continued high caseload levels, driven primarily by returning review investigations; in FY 2023, we anticipate instituting 67 proceedings and completing 73. In FY 2024, we anticipate instituting 71 proceedings and completing 72.

Another significant portion of our workload in this area is defending our determinations in response to domestic litigation challenging them. This litigation is conducted at the U.S. Court of International Trade (CIT), the Federal Circuit, and binational review panels under NAFTA (or under USMCA for cases initiated after July 1, 2020). In addition, our staff assists the USTR in WTO disputes defending our import injury determinations, challenging injury determinations made by other WTO members that affect U.S. exports, or providing third-party comments on legal issues that are of institutional interest.

In FY 2022, there were nine new appeals of Commission Title VII determinations to the CIT and one new appeal of a Commission Title VII determination to the Federal Circuit. At the close of FY 2022, there were 15 Commission import injury cases pending in the CIT, one pending in the Federal Circuit, and two pending before NAFTA dispute settlement panels. The CIT issued an opinion in one case, affirming the Commission’s determination in full. During FY 2022, there were two active challenges involving Commission determinations pending under the dispute settlement procedures of the WTO, and six inactive disputes. With respect to the active disputes, the WTO panel hearing one of these disputes involving a challenge to Commission antidumping and countervailing duty

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injury investigations upheld the Commission’s injury determinations in full. Another WTO panel reviewing a U.S. safeguard measure upheld the Commission’s serious injury determination in part but found it inconsistent with the WTO Safeguards Agreement in part. In addition to the disputes challenging Commission determinations, there were five other WTO disputes involving trade remedies, and two USMCA disputes, in which Commission staff provided trade policy support to the USTR during FY 2022. Also, the Commission’s Office of the General Counsel provided litigation support to the Commission’s Office of Tariff Affairs and Trade Agreements in responding to subpoena and deposition requests related to CIT litigation concerning a tariff classification matter.

For FYs 2023 and 2024, we project that the number of new appeals challenging our import injury determinations will increase, reflecting the historically high number of new petitions filed in FYs 2021 and 2022, and the number of active investigations that were recently completed in FY 2022 or will be completed in FY 2023.

Trends in the investigative caseload and caseload estimates for FYs 2023 and 2024 are shown below.

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Import Injury Investigations Caseload

Instituted and Completed Investigations

Unfair Import Investigations

The Commission investigates unfair methods of competition and unfair acts involving imported articles under section 337 of the Tariff Act of 1930. These investigations are brought by U.S. industries who seek to obtain timely relief against unfair competition from imports, including imports that infringe their U.S. statutory IP rights, primarily patent rights, or imports that benefit from unfair methods of competition and unfair acts that injure U.S. industries. IP is a key driver of the U.S. economy and a critical element in U.S. competitiveness. The Commission provides relief to domestic industries from imports that infringe their U.S. IP rights and harm U.S. industries through unfair competition. The primary relief available under section 337 is exclusion of goods at the border. We have earned a reputation for providing fair, timely, and expert adjudication of complex IP disputes. As a result, many IP rights holders, particularly in industries where the product life cycle is short, have come to see the Commission as a vital forum for the redress of IP infringement. This interest is reflected in the number of complaints requesting relief against unfair imports that we have received in recent years and in reporting indicating that nearly a quarter of all patent trials held in the United States are conducted at the Commission.

For nearly two decades, there has been an overall upward trend in new complaints filed year over year (as illustrated in the chart below). FY 2022 was no exception, and we expect the trend to continue in FYs 2023 and 2024. The number of complaints filed provides an indication of the level of work flowing into the agency because under section 337, prior to institution of an investigation, all complaints must be examined for (1) sufficiency and compliance with the applicable rules to determine whether they were properly filed; (2) identified sources of relevant information; and (3) assurance of the probable availability of evidence therein. This involves a substantial amount of work by the Commission and Office of Unfair Import Investigations. Thus, the chart below indicates how many complaints are being considered each calendar year.

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Unfair Import Investigations Caseload

Instituted and Completed Original and Ancillary Investigations

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Investigations

We conduct factfinding investigations on a wide range of international trade and competitiveness issues of interest to U.S. policymakers and that affect firms, industries, workers, and consumers. Authority for most of our investigations is granted by section 332 of the Tariff Act of 1930, but also by various implementation statutes for specific trade agreements and by several general trade statutes.

External events that impact U.S. international trade and domestic competitiveness shape our requestors’ needs and interests. Consequently, the nature, timing, and complexity of requests for these investigations are unpredictable and lead to wide variations

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in resources required to complete any specific investigation. Resource needs depend on such factors as the state of global competition in specific sectors or with certain trading partners, emerging interests of policymakers in the Administration and Congress, the scope and scale of policymakers’ requests, and the level of public information available related to the request. The interplay of these factors and their uncertainty make accurate forecasting of future workloads challenging.

Our industry-specific, competitiveness, and economic analysis is widely considered to be expert and objective, and it is routinely cited by parties representing all sides in trade debates. Our ability to collect, compile, and assess trade and economic data is widely sought-after by policymakers, who rely on us for authoritative information to support informed decision making.

Our investigations in most cases focus on issues that affect U.S. trade or important parts of the U.S. economy. Policymakers rely on us to produce expert analysis of the global competitiveness of U.S. industries and U.S. trade with specific countries or regions. Policymakers also rely on us to provide expert information about policy changes that may affect the economy as a whole or certain sectors or industries. Reports completed in FY 2022 include:

Moreover, requests often require us to develop or apply new analytic methods; collect and analyze unique primary data obtained through extensive multi-sector questionnaires or other outreach; or research and analyze new industries, competitive conditions, or trade issues. During FY 2022, Commission staff executed multiple industry and economic analysis projects in tandem with other work projects required by statute, such as import injury investigations, trade policy support, and tariff and trade information services.

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Workload Expectations in FYs 2023 and 2024

In FYs 2023 and 2024, we expect the number of new factfinding investigations to be similar to or slightly higher than that of FY 2022, given the active trade policy agenda of the executive and legislative branches. In both fiscal years, we expect to administer, develop, and analyze up to two surveys, drawing on a relatively large amount of agency resources. We continue to advance our use of electronic survey tools and methods, which has contributed to productivity gains in recent questionnaire-based investigations.

Our staff periodically discusses recurring reports with the requestors to ensure their continued interest in the information provided or to learn whether we should furnish additional information to meet emerging needs. For FY 2023, in addition to the recurring reports, we anticipate responding to requests or statutory direction for new reports providing unique data and analysis. The reports will inform federal policymakers’ efforts in international trade negotiations or in developing trade and other economic policies.

Factfinding investigations in FY 2023 known to date include:

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We anticipate a robust analytic workload in FYs 2023 and 2024 and have a performance goal of expanding our capability to anticipate and address new areas of economic and industry analysis. To achieve this goal, we will focus our research and data development work in high-interest areas with an emphasis on:

Such preparatory work expands our expertise and can help us respond efficiently and effectively to requests for analytical investigations, while also contributing to our work in import injury cases, tariff schedule maintenance, and trade policy support. These high-interest areas tend to require information and tools that are not readily available. Moreover, such work often requires significant staff effort to refine existing analytic tools or develop new ones. Our research priorities have kept us at the forefront of emerging analytic areas, such as evaluating impacts of disruptions and changes in global supply chains; assessing the effects of trade on U.S. workers; quantifying a wider variety of nontariff measures and nontariff provisions in U.S. agreements; analyzing the growth of digital trade and its impact on a wide range of industries; and evaluating the impacts of government policies and regulations on trade and investment in specific industries. Consistent dedication of resources to support such work is needed to maintain the world-class quality of our work products.

External factors that are likely to influence the scope and number of requests for analytical investigations in FYs 2023 and 2024 include, among others, the following:

 The trade policy focus of the executive and legislative branches

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To respond to these requests efficiently and effectively, we must recruit, develop, and maintain staff with a high level of expertise in industry, regional, and economic matters. Skilled personnel are our single most important resource and account for most of our budget request. Staff research and external communication and collaboration are vital to honing staff skills and developing information and analytic tools for use in requested investigations. We conduct these activities under the broad authority of sections 332(a) and (b) of the Tariff Act of 1930, often publishing our findings as articles or presenting them at international meetings of experts and multilateral institutions. We also develop expertise and make our research available through direct interaction with many international and domestic agencies, at academic gatherings, and with private sector and worker associations. This engagement offers us an important forum for external technical review of new analytic approaches and often suggests new, relevant areas of potential interest. Staff travel is often necessary to share and gather knowledge from domestic and international experts, as well as to conduct critical field research for investigations.

During FYs 2023 and 2024, we will continue to invest in both our human capital and other resources to ensure that we can provide high-quality trade- and competitiveness-related analysis and information to policymakers in both the executive and legislative branches. As a first priority, we invest in hiring personnel with skills in areas of high statutory workload and key areas of interest to our requesters at USTR, Senate Finance Committee, and House Ways and Means Committee. In addition, we invest funds to ensure that we can respond efficiently and effectively to requests from Congress and the Administration through the continuous acquisition, development, and improvement of analytic tools, information resources, and research approaches, including survey methods and statistical, econometric, and simulation analyses. These funds are primarily spent on acquiring or developing databases, expert consulting services, and specialized software. Staff collaborates with outside experts to develop models and databases so that we can better estimate the impact of policies affecting U.S. workers, regions, and communities; labor-related policies in international trade agreements; and the effects of trade restrictions at home and abroad.

Trends in the investigative caseload and caseload estimates for FYs 2023 and 2024 are shown below.

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Industry and Economic Analysis Investigations Caseload

Instituted, Completed, and Active Recurring Investigations

Status

Instituted Completed Active Recurring*

Monthly Active Caseload

*“Active recurring” includes the number of recurring reports (e.g., Trade Shifts, Recent Trends, Year in Trade) that were active during the year. For those that are instituted annually, two reports from different years may occasionally be active at the same time.

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Tariff and Trade Information Services

The USITC maintains and publishes the Harmonized Tariff Schedule of the United States (HTS) under the Tariff Act of 1930 and section 1207 of the Omnibus Trade and Competitiveness Act of 1988 (1988 Act). In line with this mission, we strive to improve access to high-quality, up-to-date tariff and international trade information and to reinforce our technical expertise in these areas to support the executive and legislative branches, the broader trade community, and the public. We maintain online interactive and in-house databases and an online HTS search tool; chair the U.S. interagency Committee for Statistical Annotation of Tariff Schedules; conduct investigations under section 1205 of the 1988 Act to propose certain HTS amendments to the President to meet our international obligations; and participate in the U.S. delegation to the World Customs Organization (WCO). Staff expertise in these areas strengthens our investigative work, as well as the trade policy support that we give to the executive and legislative branches. We also advise the USTR on aspects of the trade agreements program.

Maintenance of the Harmonized Tariff Schedule of the United States

Maintaining and ensuring access to an accurate and up-to-date tariff schedule is of critical importance to the U.S. government and the private sector. U.S. Customs and Border Protection (CBP) relies on the HTS for collecting all tariff revenues and fees, which were estimated to be $94.2 billion assessed on $3.2 trillion in imports in FY 2022. U.S. importing firms rely on the HTS for accurate information in importing all goods into the country. As noted above, the HTS is the most heavily used tariff schedule in the world, based on the volume of trade covered. The HTS underlies the U.S. trade data maintained by the U.S. Census Bureau (Census), enables anyone interested in trade information to find tariff codes and rates, and is critical to CBP managing its trade enforcement activities.

The Harmonized Tariff Schedule of the United States Annotated consists of the HTS, its statistical annotations, and other related information. In addition to its tariff schedule management responsibilities, the Commission chairs the interagency Committee for Statistical Annotation of the Tariff Schedules in coordination with CBP and Census. That committee administers statistical breakouts for tracking specific goods, if certain criteria are met. We also participate in or lead the U.S. delegation to various committees of the WCO. Continued funding for staff to attend WCO-related meetings is an agency priority as part of U.S. government efforts to ensure that the international tariff nomenclature takes U.S. economic interests into account.

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In FY 2022, we published the HTS 17 times—a Preliminary Edition and the Basic Edition in January 2022, plus 15 revisions over the course of the fiscal year. Prior to FY 2018, the USITC typically made only two or three HTS revisions annually. The HTS Data Management System facilitates updating the HTS when trade actions are taken by the administration or Congress and is a primary tool allowing us to keep pace with the increased number of revisions in recent fiscal years.

The HTS Data Management System has received substantial positive feedback from the trade community and other agencies. Users particularly appreciate the system’s ability to allow access to HTS data in machine-readable format. In FY 2023, we plan to deploy much needed functional improvements to the HTS Data Management System, while simultaneously continuing an effort to gather requirements and scope-out a more significant reengineering of both the HTS Data Management System and the public-facing search application. With these improvements, we expect the Data Management System to better serve as the backbone for issuing accurate and timely updates to the HTS for many years to come.

Revisions to the Harmonized Tariff Schedule of the United States

We also provide ongoing support to the USTR in developing and analyzing rules for determining a product’s origin—vital for negotiating and carrying out free trade agreements. This is another responsibility that will require significant staff time, particularly in connection with the evaluation of existing and new agreements. Our staff also helps the USTR prepare the final versions of the implementing proclamations for trade agreements and other actions affecting the HTS.

Other Online Tariff-related Services

The Commission provides a publicly available online system, known as the HTS Search, to access and search the HTS for current tariff information. In FY 2022, over 2 million unique visitors used the HTS Search system. The Commission also provides online trade services, such as the USITC DataWeb. DataWeb is a valuable tool used by our staff, external stakeholders, and the public to

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organize U.S. import and U.S. export data for analysis. As discussed previously, we deployed a major overhaul to the USITC DataWeb in FY 2018, to which we made technical improvements through FY 2022. We are planning a major version update to DataWeb in the future, contingent on the successful reengineer of the HTS Data Management System. The unique content we offer as the official manager of the HTS ensures that we will continue to be a “go-to” source for the business community, domestic and foreign government agencies, and taxpayers.

Trade Policy Support

We draw on knowledge gained from our formal investigations and other research to respond to expedited requests for technical expertise and data that trade policymakers can use to inform the development of U.S. international trade policy. This trade policy support, provided under section 332 of the Tariff Act of 1930, includes:

Providing trade policy support falls under our strategic goal of developing sound and informed analyses and determinations. We use regular communication and formalized feedback mechanisms to help us anticipate policymakers’ needs and proactively develop expertise to meet a high volume of requests for assistance.

In FY 2022, trade policy support requests covered a broad range of topics and issues. The variety of these requests underscores the wide scope of current trade policy issues, as well as recognition of our unique capabilities and expertise. We anticipate that the volume of trade policy support requests for FYs 2023 and 2024 will remain high. Congressional interest in obtaining real-time

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assistance with draft legislation and emerging policy issues is expected to continue, as is executive branch interest in our support of negotiating teams and appearances before the World Trade Organization. In some instances, we have met our requestors’ requirements by detailing our staff to congressional oversight committees or to the U.S. Trade Representative. As budget and statutory workload permit, we may continue to detail a limited number of staff to these entities, on their request.

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General Statement

The Commission is committed to leveraging the power of IT to transform agency operations, improve the customer experience, and safeguard our computer networks and information. Our IT program is critical to achieving our strategic goals and objectives, managing risk, and creating value for our stakeholders. Our FY 2024 budget request of $131 million includes $14 million to operate and maintain existing IT systems, infrastructure, and security; supply the IT resources needed to enhance systems; accommodate increased cybersecurity requirements; enhance our disaster recovery capabilities; and improve hybrid capabilities.

Approximately 90 percent of our IT budget continues to be directly related to maintaining or enhancing the Commission’s cybersecurity posture. As threat actors become more proficient at locating and attacking technical vulnerabilities, it is important that even the most mundane IT administration activities continue unimpeded to mount a viable defense and reduce the number of exploitable vulnerabilities, in both hardware and software. These activities include, but are not limited to, operations and maintenance of existing systems, software upgrades and replacement, lifecycle replacement of key components, and continuous monitoring and reporting.

We fully expect to see the number of reported cybersecurity incidents throughout the government increase as threat actors and technologies continue to evolve, especially in the exploitation of known vulnerabilities. Likewise, we expect to see an increase in the number of mandates issued to address industry- and government-wide security incidents, thus reinforcing the importance of receiving adequate IT funding.

Supporting the Agency’s Mission

Our IT budget contains the resources to operate and maintain, as well as develop, modernize, and enhance, a complex suite of essential systems. These systems support all of our mission areas and the analysis and information that we provide to the public and our stakeholders. In addition to the ongoing maintenance of all systems to ensure their availability, accessibility, and security, specific funding has been requested to address the following:

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Harmonized Tariff Schedule of the United States (HTS): Maintaining and ensuring access to an accurate and up-to-date tariff schedule is of critical importance to the U.S. government and private sector. U.S. Customs and Border Protection relies on the HTS in collecting all tariff revenues and U.S. import firms rely on the HTS for accurate information in importing all goods into the country. The HTS system provides a chapter-by-chapter listing of the Harmonized Tariff Schedule and general notes in an electronic format, providing much more flexible search capabilities and greater accessibility than the printed text. HTS user sessions increased again for FY 2022, with over 2 million unique visitors, up from 1.9 million in FY 2021.

DataWeb: DataWeb provides U.S. merchandise trade and tariff data in a user-friendly web interface. Trade data for 1989 to the present are available on a monthly, quarterly, annual, or year-to-date basis and can be retrieved using a sophisticated querying tool with features such as user-defined country and commodity groups. This tool allows the data to be shown in terms of a number of classification systems, including the HTS, the Standard International Trade Classification, or the North American Industry Classification System. U.S. tariff data that are maintained and published by the USITC as a statutory responsibility can also be retrieved using DataWeb. These data include past, current, and future normal and preferential U.S. tariff rates accessible using sophisticated look-up tools. Tools are also available to view the correlations between the classification systems and product descriptions for the codes used in these systems. Trade data reports prepared by the USITC are also available showing U.S. trade with Sub-Saharan Africa partners, U.S. total imports and related duty data for 1989-present year, and a U.S. import monitoring tool. All trade data on DataWeb are compiled from official data retrieved from the U.S. Bureau of the Census (an agency within the U.S. Department of Commerce). When using these data, the Commission suggests that the following citation be used: U.S. International Trade Commission DataWeb (USITC DataWeb), using data retrieved from the U.S. Bureau of the Census (accessed [date]). All tariff data are from the U.S. International Trade Commission and should be so cited with an access date. Classification correlations are also from the Bureau of the Census.

DataWeb is scheduled to undergo significant enhancements beginning in FY 2023 and extending into FY 2024 to improve functionality, update technologies, and bring it into compliance with the new design aesthetic as required by the 21st Century Integrated Digital Experience Act (21st Century IDEA).

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Information Security

We will continue to strengthen our security posture in FY 2024 by investing in new technologies, processes, and capabilities in line

with mandates and best practices.

Continuous Diagnostics and Mitigation (CDM): USITC has worked with the Cybersecurity and Infrastructure Security Agency (CISA) to integrate USITC vulnerability and configuration compliance data into CISA's CDM Capability Shared Service Platform. This platform provides continuous monitoring capabilities for agencies to manage their security posture as well as provides CISA a means to aggregate security information across the government. In FY 2024, we will continue to enhance both our internal capabilities as well as CDM integration through the combination of locally sourced and externally available technologies.

Security Controls Assessments (SCAs): We continue to conduct SCAs on all of our defined IT systems. An SCA is a due-diligence exercise that uses a comprehensive, documented process to evaluate the extent to which an agency’s security controls are implemented correctly, operating as intended, and meeting the security requirements for an information system. These assessments are needed to issue an Authority to Operate (ATO) for each defined system, and they must be recertified every three years. USITC has a well-defined ATO process for both internal and cloud-based systems which utilizes a continuous monitoring model. In FY 2024, we will maintain ATOs for all mission-essential local and cloud-based systems.

Multifactor Authentication: We implemented Homeland Security Presidential Directive 12 (HSPD-12) at the Commission in FY 2016, enforcing multifactor authentication (i.e., a personal identification verification card plus a personal identification number) for system access. In FY 2021 and continuing into FY 2022, we expanded multifactor authentication to include internal and external applications. We will continue utilizing login.gov to reduce the number of application-based login systems and alleviate the need for members of the public to maintain separate login credentials for multiple .gov applications, in compliance with the Zero-Trust mandate.

Data Loss Prevention (DLP): We are currently able to detect the transmission of personally identifiable information (PII) via a scanner system that monitors all network transmissions in real time for certain PII patterns (primarily Social Security numbers) and a forensic network packet recorder that records all network transmissions for later retrieval and analysis. This recorder can also search for arbitrary text patterns such as PII keywords. We have implemented a DLP solution that reviews data in emails sent externally

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from an internal agency address (i.e., email exfiltration) to prevent email containing PII, such as Social Security numbers and dates of birth, from being transmitted outside the agency’s network. In FY 2024, we will continue to optimize our monitoring and maintain our ability to retain audit data to better analyze trends.

Privacy Program: We will continue to improve our maturing privacy program in FY 2024 by revising privacy policies that define how we manage and protect the PII that we collect, use, and maintain. Maintaining a robust privacy program will ensure that we continually comply with all relevant privacy requirements, such as the Privacy Act of 1974, the E-Government Act of 2002, and OMB directives, and minimize the risk to individuals whose PII we use in our work.

Implementing Zero Trust: Zero Trust is a strategic initiative designed to prevent data breaches by eliminating trust within a network architecture. In the event of a successful network breach, a threat actor is prevented from moving from asset to asset. While significantly more complicated to implement in many legacy networks, it provides a greater level of protection. In FY 2024, USITC will continue to build on its successes experienced in FY 2022 and FY 2023 while taking steps to implement Zero Trust throughout its entire network infrastructure.

Vulnerability Management: In FY 2023, USITC implemented a new patch policy that prioritizes vulnerabilities that have been exploited or have known exploits as documented in the CISA-maintained Known Exploited Vulnerability (KEV) catalog. All federal civilian executive branch agencies are required to remediate vulnerabilities in the KEV catalog within prescribed timeframes under Binding Operational Directive (BOD) 22-01, Reducing the Significant Risk of Known Exploited Vulnerabilities. In FY 2024, we expect to enhance our patch processes and BOD compliance through the procurement of additional scanning and monitoring tools that complement our cyber hygiene services.

Digital Systems Modernization

The 21st Century IDEA requires all executive branch agencies to improve their digital services and make them more accessible to all users. We consistently review our publicly available website and assess its digital services, ensuring that they provide modern functionality and accessibility. We prioritize ongoing modernization efforts based on those with the most direct user impact.

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The USITC website (www.usitc.gov) is the most important digital service that we offer for public engagement, with over 700,000 visitors accounting for over 1.2 million site visits in FY 2022. It provides tariff information, industry and economic research, and trade data to the general public. We have identified four additional Commission digital services as having a significant role in public engagement: the Electronic Document Information System, DataWeb, the Miscellaneous Tariff Bill Petition System, and the HTS web applications. All four services are modern and accessible, and they meet the technical, functional, and security requirements of new websites and digital services. As previously mentioned, we plan to upgrade DataWeb to the common aesthetic in FY 2024. The agency remains committed to modernizing and enhancing its digital services using data-driven analysis to ensure that they address user needs, and that all new websites and digital services will comply with the requirements of the 21st Century IDEA.

The Commission continues to use digital signatures unless handwritten signatures are required by law. We also provide policy and rules on the use of electronic signatures, of which digital signatures are a type, for agency personnel. The Commission requires that new electronic applications and major application revisions support electronic signatures.

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Obligations: Comparison by Budget Object Classification, Fiscal Years 2022–24

(Dollar amounts in thousands)

Obligations: Comparison by Strategic Goal, Fiscal Years 2022–24

(Dollar amounts in thousands)

Analysis of Change by Budget Object Classification, Fiscal Years 2022–24

(Dollar amounts in thousands)

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Summary of Changes from the FY 2023 Budget Request

(Dollar amounts in thousands)

The Commissioners

The USITC is headed by six commissioners, who are nominated by the President and confirmed by the U.S. Senate. David S. Johanson, a Republican, is serving as Chairman of the Commission by operation of law effective June 17, 2022. A Vice Chairman has not been nominated for the current term. Other commissioners currently serving are, in order of seniority, Rhonda K. Schmidtlein, Jason E. Kearns, Randolph J. Stayin, and Amy A. Karpel.4

Each commissioner serves a term of nine years, unless appointed to fill an unexpired term. The terms are set by statute and are staggered such that a different term expires every 18 months.5 A commissioner who has served for more than five years is ineligible for reappointment. A commissioner may, however, continue to serve after the expiration of his or her term until a successor is appointed and qualified. Congress’s desire to create an independent and nonpartisan Commission is evident in the rules that dictate the composition of the Commission. No more than three commissioners may be members of the same political party. The Chairman and the Vice Chairman are designated by the President6 and serve for a statutory two-year term. The Chairman may not be of the same political party as the preceding Chairman, nor may the President designate two commissioners of the same political party to serve as the Chairman and Vice Chairman. Currently three Democrats and two Republicans serve as commissioners.

4 Currently, there is one vacancy. 5 19 U.S.C. § 1330. 6 If the President does not designate a Chairman, the senior commissioner of the relevant political party serves as Chairman, by operation of law.

Current Permanent and Term Staffing Plan and Target Staffing Levels

The End.

500 E Street, SW Washington,DC 20436