Program Overview
Three Phases of Trade Adjustment Assistance
NETAAC provides timely, cost-effective, and useful services for each individual manufacturing firm. A successful project is one that contributes significantly to improved profitability and makes a firm more competitive in the marketplace against imports. First, a firm must be deemed eligible for entrance into the TAA for Firms program. Eligibility is received after the firm supplies NETAAC with preliminary data for the analysis of qualification levels. Once a determination is made that the firm is eligible, NETAAC works closely with the manufacturer to guide them through each phase. The following is a basic overview of the three phases of the program:
Phase 1: Certification
The firm, working with NETAAC, must demonstrate a decline in sales or production and a decline in employment as a direct result of competition from imported products. Additionally, the firm must demonstrate that U.S. customers have reduced or declined purchases from the firm in favor of buying imported items. This is accomplished by the firm supplying specific documentation to NETAAC. NETAAC, in turn, will do all the research, prove the findings and prepare all the documentation for submission. NETAAC, at no cost to the firm, assists in obtaining certification from the U.S. Department of Commerce. The length of this phase fluctuates, depending on the firm's ability to supply the needed data to NETAAC personnel. The timeframe for approval is typically 60 days, once the documentation has been submitted to Washington.
Phase 2: Initial Assistance
Once a firm is declared certified, NETAAC professionals meet with the firm's management to conduct a thorough analysis of all facets of the firm's operations. This results in a Diagnostic Survey, a report that is useful to management in providing an objective overall view of the firm's strengths and weaknesses. Next, NETAAC works with the firm to design a strategy to assist the firm in becoming more profitable.
The strategy may involve specialized projects in areas such as (but not limited to) marketing, export assistance, product development, plant layout, worker incentives, cost systems, the preparation of business plans, and financial restructuring. The resulting Adjustment Proposal includes the project(s) overview and requests funding to implement the specified projects. The combined Diagnostic Survey and Adjustment Proposal is then submitted to the Department of Commerce for approval. The Department of Commerce makes a decision regarding the proposal within a few weeks.
Phase 3: Implementation Assistance
After the Department of Commerce has approved the firm's Diagnostic Survey / Adjustment Proposal and has given its permission to NETAAC to fund a portion of the projects, NETAAC and the firm choose consultants to implement each project. NETAAC has an extensive database of consultants, identifying areas of expertise, available to all clients to aid in this selection.