Export Promotion Activities of the Department of Commerce's District Offices

Testimony was given on the Department of Commerce's U.S. and Foreign Commercial Service's (US&FCS) district office export promotion activities. The district offices assist small and medium-sized firms in developing their export potential by: (1) providing information and advice to help them begin exporting or to enter new markets; (2) individually counseling firms about their export potential and available Commerce services; (3) responding to business requests for export information and advice; (4) sponsoring export seminars; (5) working with state and private export promotion organizations; and (6) promoting experimental and test programs. GAO compared the results of its survey of firms with US&FCS reports on district office accomplishments and found that: (1) the district offices had substantially overstated their export accomplishments because of reporting inaccuracies and excessive reliance on numerical goals in determining program effectiveness; (2) the firms the district offices assisted found the help useful to some degree; and (3) the district offices were most helpful in providing information on export regulations, U.S. Customs procedures and forms, other countries' import regulations, financing and insurance sources, and transportation. GAO reviewed the President's Private Sector Survey on Cost Control's report and did not feel that its data and analysis supported its recommendation to phase out the district offices.