[Federal Register Volume 62, Number 87 (Tuesday, May 6, 1997)]
[Rules and Regulations]
[Pages 24560-24561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11693]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1493 and 1494
Revised Definition of U.S. Agricultural Commodity for Commercial
Export Programs
AGENCY: Commodity Credit Corporation (CCC), USDA.
ACTION: Final rule.
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SUMMARY: The Commodity Credit Corporation (CCC) is amending its
commercial export program regulations to change the definition of the
term ``U.S. agricultural commodity.'' These changes are to conform the
applicable regulations with a provision of the Federal Agriculture
Improvement and Reform Act of 1996. This final rule is applicable to
the Export Enhancement Program (EEP), the Dairy Export Incentive
Program (DEIP), CCC's Export Credit Guarantee Program (GSM-102), CCC's
Intermediate Export Credit Guarantee Program (GSM-103), and the
Supplier Credit Guarantee Program (SCGP). The revised definition
contains two subparagraphs. The first subparagraph is similar to the
current definition of U.S. agricultural commodity. The second
subparagraph applies only to a product of an agricultural commodity
that the Secretary designates as a high value product. Under the
applicable statute and the revised definition, if this designation is
made, to qualify as a U.S. agricultural commodity 90 percent or more of
the agricultural components of the product (by weight, excluding
packaging and water) must be entirely produced in the United States.
EFFECTIVE DATE: June 5, 1997.
FOR FURTHER INFORMATION CONTACT: L.T. McElvain, Director, CCC
Operations Division, Foreign Agricultural Service, U.S. Department of
Agriculture, Stop 1035, Washington D.C., 20250-1035; Fax (202) 720-
2949; Telephone (202) 720-6211. The U.S. Department of Agriculture
(USDA) prohibits discrimination in its programs on the basis of race,
color, national origin, sex, religion, age disability, political
beliefs and marital or familial status. Persons with disabilities who
require alternative means for communication of program information
(braille, large print, audiotape, etc.) should contact the USDA Office
of Communications at (202) 720-5881 (voice) or (202) 720-7808 (TDD).
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order
12866. It has been determined to be neither significant nor
economically significant for the purposes of E.O. 12866 and, therefore,
has not been reviewed by the Office of Management and Budget (OMB).
Regulatory Flexibility Act
It has 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.
Executive Order 12372
These programs are not subject to the provisions of Executive Order
12372, which requires intergovernmental consultation with State and
local officials. See notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Environmental Evaluation
The Foreign Agricultural Service (FAS) is excluded from the
requirements of preparing procedures to implement the National
Environmental Policy Act and is categorically excluded from the
preparation of an Environmental Assessment or Environmental Impact
Statement unless the Administrator of FAS determines that an action may
have a significant environmental effect 7 CFR 1b.4(b)(7). The
Administrator has made no such determination with respect to this
action.
Paperwork Reduction Act
The amendments to 7 CFR parts 1493 and 1494 set forth in this final
rule do not contain information collections that require clearance by
the OMB under the provisions of 44 U.S.C. 35.
Executive Order 12778
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. The final rule would not have preemptive 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.
The Department of Agriculture is committed to carrying out its
statutory and regulatory mandates in a manner that best serves the
public interest. Therefore, where legal discretion permits, the
Department actively seeks to promulgate regulations that promote
economic growth, create jobs, are minimally burdensome, and are easy
for the public to understand, use or comply with. In short, the
Department is committed to issuing regulations that maximize net
benefits to society and minimize costs imposed by those regulations.
Background
The Federal Agriculture Improvement and Reform Act of 1996 (Pub. L.
104-127) (``1996 Act'') became effective on April 4, 1996. Section 243
(c) of the 1996 Act amended the definition of ``United States
agricultural commodity'' set forth in section 102(7) of the
Agricultural Trade Act of 1978. The new definition of a United States
agricultural commodity reads as follows: ``(A) an agricultural
commodity or product entirely produced in the United States; or (B) a
product of an agricultural commodity--(i) 90 percent, or more of the
agricultural components of which by weight, excluding packaging and
added water, is entirely produced in the United States; and (ii) that
the Secretary determines to be a high value agricultural product.''
This amendment did not affect that part of the definition
specifically concerning fish. As before, for purposes of Section
102(7), fish entirely produced in the United States include fish
harvested by a documented fishing vessel as defined in title 46, United
States Code, in waters that are not waters (including the territorial
sea) of a foreign country.
The revised definition is applicable to the Export Enhancement
Program (EEP), 7 CFR part 1494, subpart B; the Dairy Export Incentive
Program (DEIP), 7 CFR part 1494, subpart D; CCC's Export Credit
Guarantee Program (GSM-102), 7 CFR part 1493, subpart B; CCC's
Intermediate Export Credit Guarantee Program (GSM-103), 7 CFR part
1493, subpart B; and the Supplier Credit Guarantee Program (SCGP), 7
CFR part 1493, subpart D. Pursuant to 7 CFR part 1494, subpart D, the
operational regulations of the EEP found at 7 CFR 1493, subpart B, also
apply to the DEIP. Therefore, the changes made by this final rule are
applicable to the DEIP via a change to the EEP regulations.
This final rule amends each of the above regulations to include the
revised statutory definition of a United States agricultural commodity
and to make conforming changes to the applicable certifications made by
exporters. Such certifications are made by exporters at
[[Page 24561]]
the time of making offers (in EEP and DEIP) and at the time of
submitting applications for payment guarantees and evidence of export
reports in the GSM-102/103 and SCGP. CCC is proceeding directly through
a final rule because the regulatory amendments are required by the
statutory change.
On the effective date of this rule, CCC's Notices to Participants
Numbers GSM FY 96-2, EEP FY 96-4, DEIP FY 96-4, COAP/SOAP FY 96-3, and
SCGP FY 96-1, issued on July 18, 1996, are superseded. Under these
Notices to Participants, exporters of designated high value products
were to make separate certifications that conformed to the new
definition of United States Agricultural Commodity.
List of Subjects
7 CFR Part 1493
Administrative practice and procedures, Agricultural commodities,
Credit, Exports, Financing, Guarantees, Reporting and recordkeeping
requirements.
7 CFR Part 1494
Administrative practice and procedure, Agricultural commodities,
Exports, Government contracts, Reporting and recordkeeping
requirements.
Accordingly, 7 CFR parts 1493 and 1494 are amended as follows:
PART 1493--CCC EXPORT CREDIT GUARANTEE PROGRAMS
Subpart B--CCC Export Credit Guarantee Program (GSM-102) and CCC
Intermediate Export Credit Guarantee Program (GSM-103) Operations
1. The authority citation for 7 CFR part 1493 continues to read as
follows:
Authority: 7 U.S.C. 5602, 5622, 5661, 5662, 5663, 5664, 5676; 15
U.S.C. 714b(d), 714c(f).
2. Section 1493.20 is amended by revising paragraph (z) to read as
follows:
Sec. 1493.20 Definition of terms.
* * * * *
(z) U.S. agricultural commodity. (1) An agricultural commodity or
product entirely produced in the United States; or
(2) A product of an agricultural commodity--
(i) 90 percent or more of the agricultural components of which by
weight, excluding packaging and added water, is entirely produced in
the United States; and
(ii) That the Secretary determines to be a high value agricultural
product. For purposes of this definition, fish entirely produced in the
United States include fish harvested by a documented fishing vessel as
defined in title 46, United States Code, in waters that are not waters
(including the territorial sea) of a foreign country.
* * * * *
3. Section 1493.50 is amended by revising paragraph (a) to read as
follows:
Sec. 1493.50 Certification requirements for obtaining payment
guarantee.
* * * * *
(a) The agricultural commodity or product to be exported under the
payment guarantee is a U.S. agricultural commodity as defined by
Sec. 1493.20(z).
* * * * *
4. Section 1493.90 is amended by revising paragraph (a) to read as
follows:
Sec. 1493.90 Certification requirements for the evidence of export.
* * * * *
(a) The agricultural commodity or product exported under the
payment guarantee is a U.S. agricultural commodity as defined by
Sec. 1493.20(z).
* * * * *
5. Section 1493.410 is amended by revising paragraph (x) to read as
follows:
Sec. 1493.410 Definition of terms.
* * * * *
(x) U.S. agricultural commodity.
(1) An agricultural commodity or product entirely produced in the
United States; or
(2) A product of an agricultural commodity--
(i) 90 percent or more of the agricultural components of which by
weight, excluding packaging and added water, is entirely produced in
the United States; and
(ii) That the Secretary determines to be a high value agricultural
product. For purposes of this definition, fish entirely produced in the
United States include fish harvested by a documented fishing vessel as
defined in title 46, United States Code, in waters that are not waters
(including the territorial sea) of a foreign country.
* * * * *
6. Section 1493.440 is amended by revising paragraph (a) to read as
follows:
Sec. 1493.440 Certification requirements for a payment guarantee.
(a) The agricultural commodity or product to be exported under the
payment guarantee is a U.S. agricultural commodity as defined by
Sec. 1493.410(x).
7. Section 1493.480 is amended by revising paragraph (a) to read as
follows:
Sec. 1493.480 Certification requirements for the evidence of export.
* * * * *
(a) The agricultural commodity or product exported under the
payment guarantee is a U.S. agricultural commodity as defined by
Sec. 1493.410(x).
* * * * *
PART 1494--EXPORT BONUS PROGRAMS
Subpart B--Export Enhancement Program Operations
1. The authority citation for 7 CFR part 1994, subpart B, continues
to read as follows:
Authority: 7 U.S.C. 5602, 5651, 5661, 5662, 5676; 15 U.S.C.
714c.
2. Section 1494.201 is amended by revising paragraph (gg) to read
as follows:
Sec. 1494.201 Definition of terms.
* * * * *
(gg) U.S. agricultural commodity. (1) An agricultural commodity or
product entirely produced in the United States; or
(2) A product of an agricultural commodity--
(i) 90 percent or more of the agricultural components of which by
weight, excluding packaging and added water, is entirely produced in
the United States; and
(ii) That the Secretary determines to be a high value agricultural
product. For purposes of this definition, fish entirely produced in the
United States include fish harvested by a documented fishing vessel as
defined in title 46, United States Code, in waters that are not waters
(including the territorial sea) of a foreign country.
3. Section 1494.501 is amended by revising paragraph (c)(20)(xi) to
read as follows:
Sec. 1494.501 Submission of offers to CCC.
* * * * *
(c) * * *
(20) * * *
(xi) The agricultural commodity or product to be exported under an
EEP Agreement is a U.S. agricultural commodity as defined by
Sec. 1494.201(gg).
* * * * *
Signed at Washington, DC, on April 10, 1997.
Christopher E. Goldthwait,
General Sales Manager and Vice President, Commodity Credit Corporation.
[FR Doc. 97-11693 Filed 5-5-97; 8:45 am]
BILLING CODE 3410-10-M
