98-4424. Foreign Donation of Agricultural Commodities  

  • [Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
    [Proposed Rules]
    [Pages 8879-8881]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-4424]
    
    
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    COMMODITY CREDIT CORPORATION
    
    7 CFR Part 1499
    
    RIN 0551-0035
    
    
    Foreign Donation of Agricultural Commodities
    
    agency: Commodity Credit Corporation, USDA.
    
    action: Proposed rule.
    
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    summary: The Commodity Credit Corporation proposes to amend the rules 
    governing foreign donations of agricultural commodities. This proposed 
    rule contains changes, corrections and clarifications to the final 
    regulations to achieve more effective management of foreign donations 
    of agricultural commodities.
    
    dates: Submit comments on or before April 24, 1998.
    
    addresses: Address all comments concerning this proposed rule to Ira D. 
    Branson, Director/Commodity Credit Corporation, Program Support 
    Division, Foreign Agricultural Service, United States Department of 
    Agriculture, 1400 Independence Ave., S.W., Stop 1031, Washington, D.C. 
    20250-1031; telephone (202) 720-3573.
        You may submit comments and data by sending electronic mail (E-
    mail) to: pebreports@fas.usda.gov.
    
    for further information contact: Juanita Lambert, Chief/Program 
    Evaluation Branch, Commodity Credit Corporation Program Support 
    Division, Foreign Agricultural Service, United States Department of 
    Agriculture, 1400 Independence Ave., S.W., Stop 1031, Washington, D.C. 
    20250-1031; telephone (202) 720-2465.
    
    supplementary information: This rule is issued in conformance with 
    Executive Order 12866. Based on information compiled by the Department, 
    it has been determined that this rule:
        (1) Would have an annual effect on the economy of less than $100 
    million;
        (2) Would not adversely affect in a material way the economy, a 
    sector of the economy, productivity, competition, jobs, the 
    environment, public health or safety, or State, local, or tribal 
    governments or communities;
        (3) Would not create a serious inconsistency or otherwise interfere 
    with an action taken or planned by another agency;
        (4) Would not materially alter the budgetary impact of entitlement, 
    grants, user fees, or loan programs or rights and obligations of 
    recipients thereof; and
        (5) Would not raise novel legal or policy issues arising out of 
    legal mandates, the President's priorities, or principles set forth in 
    Executive Order 12866.
    
    Regulatory Flexibility Act
    
        It has been determined that the Regulatory Flexibility Act is not 
    applicable to this final rule since CCC is not required by 5 U.S.C. 553 
    or any other provision of law to publish a notice of rulemaking with 
    respect to the subject matter of this rule.
    
    Paperwork Reduction Act
    
        The information collection requirements imposed by this proposed
    
    [[Page 8880]]
    
    rule have been previously submitted to the Office of Management and 
    Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 
    Chapter 35). OMB has assigned control number 0551-0035 for this 
    information collection. This proposed rule change would not require 
    collection of additional information; however, the proposed rule 
    includes a requirement to use new forms for the semiannual logistics 
    and monetization reports. These report forms have been submitted to OMB 
    for review.
    
    Executive Order 12372
    
        This rule is not subject to the provisions of Executive Order 12372 
    which requires intergovernmental consultation with state and local 
    officials. See the Notice related to 7 CFR part 3015, subpart V, 
    published at 46 FR 29115 (June 24, 1983).
    
    Executive Order 12988
    
        This rule has been reviewed under the Executive Order 12988, Civil 
    Justice Reform. The rule would have pre-emptive effect with respect to 
    any state or local laws, regulations, or policies which conflict with 
    such provisions or which otherwise impede their full implementation. 
    The rule would not have retroactive effect. Administrative proceedings 
    are not required before parties may seek judicial review.
        Rules governing Commodity Credit Corporation's (``CCC'') donation 
    of agricultural commodities under section 416(b) of the Agricultural 
    Act of 1949 and the Food for Progress Act of 1985 appear at 7 CFR part 
    1499. This proposed rule would review the regulations to address 
    certain issues that have arisen since the rules were first published on 
    November 29, 1996, and, additionally, make no-substantive corrections.
    
    Program Operation Budgets
    
        The regulations require cooperating sponsors to submit a Program 
    Operation Budget in order to obtain CCC funding of certain 
    administrative expenses and overseas internal transportation or 
    handling cost. The Program Operation Budget details the costs for which 
    CCC funding is requested. Currently, the regulations (7 CFR 
    Sec. 1499.7(e)) provide that a cooperating sponsor may make adjustments 
    to individual line items in an approved Program Operation Budget up to 
    20 percent of the total approved budget, or $1,000, whichever is less. 
    This provision has limited cooperating sponsor's flexibility in meeting 
    unanticipated circumstances during implementation of activities. 
    Consequently, cooperating sponsors have needed to prepare numerous 
    budget amendments thereby increasing their paperwork burden and 
    imposing additional administrative burdens on CCC.
        CCC proposes to permit cooperating sponsors to make adjustments in 
    line items of the Program Operation Budget of up to 20 percent of the 
    total budget or $5,000, which ever is less. This increase will allow 
    CCC to maintain effective oversight of the use of its funding while 
    eliminating paperwork and administrative burdens.
    
    Payment Documentation
    
        If CCC agrees to pay ocean transportation for donated commodities, 
    CCC will pay the ocean freight directly to the ocean carrier. The 
    regulations specify the documentation required to be submitted to CCC 
    before payment will be made.
        In accordance with requirements of the Debt Management Improvement 
    Act of 1994, CCC is moving towards a system whereby all payments of CCC 
    funds will be by electronic transfer. Therefore, this rule includes a 
    proposed new section (7 CFR 1499.8(h)(3)) listing the information that 
    ocean carriers and cooperating sponsors must submit to CCC in order to 
    receive funds. Recipients must submit the information with every 
    request for payment. This will speed processing by ensuring that 
    payment information is kept current.
        The proposed rule also clarifies that certain specified documents 
    must be signed when submitted to CCC for payment. Additionally, CCC 
    would require a copy of the tariff pages applicable to any liner 
    shipments to enable CCC to check liner rates.
    
    Termination of Program Activities
    
        This proposed rule adds a new Sec. 1499.10(d) to address the 
    disposition of donated commodities and local currency proceeds by a 
    non-governmental cooperating sponsor in the event that the cooperating 
    sponsor's participation in the program terminates for any reason prior 
    to completion of approved activities. The proposed rule would add a 
    requirement that the cooperating sponsor take reasonable steps to 
    secure any undistributed commodities or sales proceeds and notify CCC 
    of their status. The commodities or proceeds would then be disposed of 
    as directed by CCC. Given the varied situations that may arise to cause 
    termination, the rule cannot set forth, in advance, any standard 
    disposition procedures.
    
    Reports
    
        The proposed regulation would establish a standard date for 
    submission of all semiannual logistic and monetization reports and a 
    standardized reporting period. Also, as mentioned above FAS proposes 
    the use of specific reporting forms for these reports. Currently, each 
    agreement set forth the reporting date and period. This uniformity 
    should ease administration for both the cooperating sponsors and CCC.
    
    Miscellaneous
    
        The proposed regulation would also make a number of nonsubstantive 
    changes intended for clarification only or to update office references.
    
    List of Subjects in 7 CFR Part 1499
    
        Agricultural commodities, Exports, Foreign aid.
    
        Accordingly, CCC proposes to amend 7 CFR part 1499 as follows:
    
    PART 1499--FOREIGN DONATION PROGRAMS
    
        1. The authority citation for part 1499 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1431(b); 7 U.S.C. 1736o; E.O. 12752.
    
    
    Sec. 1499.1  [Amended]
    
        2. Section 1499.1 is amended by removing ``KCFMO--Kansas City 
    Financial Management Office'' and adding, in its place, ``KCMO/DMD--
    Kansas City Management Office/Debt Management Division''.
        3. Section 1499.7(e) is amended by revising the third and fourth 
    sentences to read as follows:
    
    
    Sec. 1499.7  Apportionment of costs and advances.
    
    * * * * *
        (e) * * * The non-government Cooperating Sponsor may make 
    adjustments between line items of an approved Program Operations Budget 
    up to 20 percent of the total amount approved or $5,000, whichever is 
    less without any further approval. Adjustments beyond these limits must 
    be specifically approved by the Director, PDD.
    * * * * *
    
    
    Sec. 1499.7  [Amended]
    
        4. Section 1499.7(i) is amended by deleting ``Director, CCCPSD'' 
    and adding in its place, ``Director, PDD.''
        5. In Sec. 1499.8, the introductory text of paragraph (b) and the 
    headings of paragraph (g) and (g)(1) are revised, paragraph (g)(1)(vii) 
    is redesignated as paragraph (g)(1)(viii), and new
    
    [[Page 8881]]
    
    paragraphs (g)(1)(vii) and (g)(1)(ix) are added, to read as follows:
    
    
    Sec. 1499.8  Ocean transportation.
    
    * * * * *
        (b) Freight procurement requirements. When CCC is financing any 
    portion of the ocean freight, whether on U.S.-flag or non-U.S. flag 
    vessels, and the Cooperating Sponsor arranges ocean transportation:
    * * * * *
        (g) Documents required for payment of freight--(1) General rule. * 
    * *
    * * * * *
        (vii) For all liner cargoes, a copy of the tariff page.
    * * * * *
        (ix) Each request to CCC for payment must provide a document, on 
    letterhead and signed by an official or agent of the requester, the 
    name of the entity to receive payment, the bank ABA number to which 
    payment is to be made; the account number for the deposit at the bank; 
    the requester's taxpayer identification number; and the type of account 
    into which funds will be deposited.
    * * * * *
    
    
    1499.8  [Amended]
    
        6. In section 1499.8, paragraph (8) is amended by deleting ``One 
    copy'' wherever it appears and adding ``One signed copy'' in its place, 
    and paragraph (g)(1)(vi) is amended by deleting ``a notice'' and 
    adding, in its place, ``a signed notice''.
        7. Section 1499.10 is amended by adding a new paragraph (d) to read 
    as follows:
    
    
    Sec. 1499.10  Restrictions on commodity use and distribution.
    
    * * * * *
        (d) In the event that its participation in the program terminates, 
    the non-government cooperating sponsor will safeguard any undistributed 
    commodities and sales proceeds and dispose of such commodities and 
    proceeds as directed by CCC.
        8. Section 1499.14(b)(2) is amended by deleting ``KCFMO'' and 
    adding, in its place ``KCMO/DMD.''
        9. Section 1499.15, is amended by removing ``KCFMO'' wherever it 
    appears and add, in its place ``KCMO/DMD'', revising the last sentence 
    of paragraphs (d)(2) and (f)(3), and adding paragraphs (d)(2)(i) 
    through (d)(2)(vi) to read as follows:
    
    
    Sec. 1499.15  Liability for loss, damage, or improper distribution of 
    commodities--claims and procedures.
    
    * * * * *
        (d) * * *
        (2) * * * In the event of a declaration of general average:
        (i) The Cooperating Sponsor shall assign all claim rights to CCC 
    and shall provide CCC all documentation relating to the claim, if 
    applicable;
        (ii) CCC will be responsible for settling general average and 
    marine salvage claims;
        (iii) CCC has sole authority to authorize any disposition of 
    commodities which have not commenced ocean transit or of which the 
    ocean transit is interrupted;
        (iv) CCC will receive and retain any monetary proceeds resulting 
    from such disposition;
        (v) CCC will initiate, prosecute and retain all proceeds of cargo 
    loss and damage against ocean carriers and any allowance in general 
    average; and
        (vi) CCC will pay any general average or marine salvage claims 
    determined to be due.
    * * * * *
        (f) * * *
        (3) * * * If the Agricultural Counselor or Attache approves a 
    Cooperating Sponsor's decision not to take further action on the claim, 
    the Cooperating Sponsor shall assign the claim to CCC and shall forward 
    all documentation relating to the claim to KCMO/DMD.
    * * * * *
        10. In section 1499.16, the second and third sentences of (c)(1) 
    and the second and third sentences of (c)(2) are revised to read as 
    follows:
    
    
    Sec. 1499.16  Records and reporting requirements.
    
    * * * * *
        (c) Reports. (1) * * * Cooperating Sponsors must submit reports on 
    Form CCC-620 and submit the first report by May 16 for agreements 
    signed during the period, October 1 through March 31 or by November 16 
    for agreements signed during the period, April 1 through September 30. 
    The first report must cover the time period from the date of signing 
    and subsequent reports must be provided at six months intervals 
    covering the period from the due date of the last report until all 
    commodities have been distributed or sold and such distribution or sale 
    reported to CCC. * * *
        (2) * * * Cooperating Sponsors must submit reports on Form CCC-621 
    and submit the first report by May 16 for agreements signed during the 
    period, October 1 through March 31 or by November 16 for agreements 
    signed during the period, April 1 through September 30. The first 
    report must cover the time period from the date of signing and 
    subsequent reports must be provided at six months intervals covering 
    the period from the due date of the last report until all funds 
    generated from commodity sales have been distributed and such 
    distribution reported to CCC. * * *
    * * * * *
        Dated: November 20, 1997.
    Christopher E. Goldthwait,
    General Sales Manager, FAS, and Vice President, Commodity Credit 
    Corporation.
    [FR Doc. 98-4424 Filed 2-20-98; 8:45 am]
    BILLING CODE 3410-10-M
    
    
    

Document Information

Published:
02/23/1998
Department:
Commodity Credit Corporation
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
98-4424
Dates:
Submit comments on or before April 24, 1998.
Pages:
8879-8881 (3 pages)
RINs:
0551-0035
PDF File:
98-4424.pdf
CFR: (7)
7 CFR 1499.7(e))
7 CFR 1499.1
7 CFR 1499.7
7 CFR 1499.8
7 CFR 1499.10
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