U.S. Agencies Have Issued Guidance to Implement Funding Restrictions on Promoting Tobacco

State collaborates with Commerce, USDA, and other agencies to develop  and periodically issue an interagency guidance cable to implement  funding restrictions on promoting tobacco. Moreover, two of the agencies’ current training courses do not address  the restrictions. Although these officials were not aware of the  restrictions, they said they had never provided services to U.S. tobacco  companies. Some officials did not recall receiving the interagency guidance cable,  which agency officials said serves as the primary source of guidance for  implementing the restrictions, and some were not aware that State  periodically issues the cable. In the  past, State, Commerce, and USDA did not include information about the  funding restrictions or related guidance in training materials. Federal internal control standards state  that appropriate training, aimed at developing employee knowledge,  skills, and abilities, is essential to an organization’s operational success. Some Sections of the Interagency Guidance Cable Lack Clarity

Post officials identified three areas of the guidance that may benefit from  additional clarification, according to our interviews with agency officials  and our review of agency emails: attendance at events, the types of  permitted services, and the description of tobacco products. For  example, some Commerce officials asked whether they could provide  services to companies selling component parts for electronic nicotine  delivery systems, such as e-liquids. While federal standards for internal control  state that management should clearly document internal controls in  policies and guidance to prevent officials from failing to achieve an  objective or address a risk, we found that the interagency guidance  does not provide examples of the factors post officials should consider  when attending business association events. More  specific guidance would help ensure that State, Commerce, and USDA  officials consistently implement their agency-specific funding restrictions  on promoting tobacco exports. Congress has enacted restrictions on the use of certain  appropriated funds to promote the sale or export of U.S. tobacco or  tobacco products since the 1990s, and State, Commerce, and USDA  have developed and updated guidance to implement these restrictions. However, not all officials were aware of the restrictions and more than  half had not received training about the restrictions. (Recommendation 2)
The Secretary of State, in consultation with the Secretary of Commerce  and the Secretary of Agriculture, should assess the interagency guidance  cable on promoting tobacco in light of questions raised by officials at  posts overseas and update it to address ambiguities, as needed. Appendix I: Objectives, Scope, and Methodology

This report examines (1) the guidance select U.S. agencies have issued  to implement funding restrictions on promoting tobacco exports overseas,  (2) to what extent overseas officials from select U.S. agencies were  aware of the restrictions and guidance, and (3) to what extent select U.S.  agencies have implemented this guidance overseas. These officials were located across  11 posts and in 9 countries. We selected this non-generalizable sample of countries based  on criteria that included the countries’ large or increasing amounts of U.S.  tobacco imports, relatively high tobacco smoking prevalence rates, and  geographic dispersion. We asked post officials about the clarity of guidance, whether  they attended events sponsored or attended by representatives of U.S.  tobacco companies, and whether they discussed tobacco-related issues  with host country government officials during our structured interviews  with the 24 State, Commerce, and USDA offices overseas. 2).
Why GAO Did This Study

The World Health Organization estimates that tobacco use kills over 7 million people each year, more than tuberculosis, HIV/AIDS, and malaria combined. Since the 1990s, Congress has enacted restrictions regarding the use of certain appropriated funds to promote U.S. tobacco exports.
GAO was asked to review the implementation of these restrictions. This report examines (1) guidance select U.S. agencies have issued to implement these restrictions, (2) whether overseas officials from select U.S. agencies were aware of the restrictions and guidance, and (3) select U.S. agencies' implementation of the guidance overseas. GAO reviewed U.S. laws, agency guidance, and internal communications; analyzed Commerce data; and interviewed agency officials in Washington, D.C. and in 24 offices across 11 overseas posts in 9 countries. GAO selected these countries based on criteria that included U.S. tobacco export totals, smoking rates, and geographic dispersion.

What GAO Found

Congress has restricted the use of certain appropriated funding to promote tobacco exports and the Departments of State (State), Commerce (Commerce), and Agriculture (USDA) have issued interagency guidance through the cable system that they rely on to implement these restrictions. State collaborates with these and other agencies to periodically update this cable. The cable informs officials about the types of actions they should take—such as providing routine business facilitation services to all U.S. companies—and the types of actions they should not take—such as attending events sponsored by tobacco companies.
Most, but not all, officials overseas that GAO interviewed were aware of the restrictions and received some guidance concerning the restrictions. However, GAO found that some officials did not recall receiving the interagency guidance cable. In addition, State and USDA's current training materials do not address the restrictions. Federal internal control standards state that appropriate training is essential to an organization's operational success. Thus, providing officials overseas with training about the funding restrictions and related guidance would help to ensure that officials are aware of the restrictions.
U.S. officials overseas have implemented restrictions on promoting tobacco, but some officials said that the interagency guidance lacks clarity. Officials said that they have not promoted tobacco by, for example, attending events sponsored solely by tobacco companies. However, officials identified three areas of the guidance that are unclear: (1) attendance at events not sponsored by U.S. tobacco companies but attended by representatives of these companies; (2) the types of services officials can provide tobacco companies; and (3) the description of tobacco products, such as whether component parts for electronic cigarettes are included. Federal standards for internal control state that management should clearly document internal controls in policies and guidance to prevent officials from failing to achieve an objective or address a risk. By providing more specific guidance, the agencies would help ensure that officials consistently implement the funding restrictions on promoting tobacco.

What GAO Recommends

GAO recommends that (1) State and USDA include information about the funding restrictions and guidance in training materials for relevant employees and (2) State, in consultation with Commerce and USDA, assess and update the interagency guidance cable, as needed, on promoting tobacco in light of questions raised by officials at posts overseas. State and USDA concurred with the recommendations.