[Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
[Proposed Rules]
[Pages 43566-43567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20780]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 60, No. 162 / Tuesday, August 22, 1995 /
Proposed Rules
[[Page 43566]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 17
Regulations Governing the Financing of Commercial Sales of
Agricultural Commodities
AGENCY: Foreign Agricultural Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Foreign Agricultural Service (FAS) proposes to amend the
regulations applicable to the financing of the sale and exportation of
agricultural commodities pursuant to title I of the Agricultural Trade
Development and Assistance Act of 1954, as amended (Pub. L. 480). The
proposed amendments would delete one document from the list of those
documents currently required to be submitted by the commodity supplier
to the banking institution to support a request for payment; and would
delete the contracting and documentary requirements for commodities
which have not been shipped under the program for a number of years.
The purpose of these changes is to reduce the paperwork burden on
commodity suppliers and to simplify and shorten the regulations.
DATES: Written comments should be submitted on or before September 21,
1995.
ADDRESSES: Comments should be sent to Mary T. Chambliss, Deputy
Administrator, Foreign Agricultural Service, U.S. Department of
Agriculture, room 4077 South Building, 14th and Independence SW.,
Washington, DC 20250-1031.
FOR FURTHER INFORMATION CONTACT: Connie B. Delaplane, Director, P.L.
480 Operations Division, Export Credits, Foreign Agricultural Service,
U.S. Department of Agriculture, Room 4549 South Building, 14th and
Independence, SW., Washington, DC 20250-1033. Telephone: (202) 720-
3664.
SUPPLEMENTARY INFORMATION: The proposed rule is issued in conformance
with Executive Order 12866. It has been determined to be significant
for the purposes of E.O. 12866 and, therefore, has been reviewed by the
Office of Management and Budget (OMB).
Regulatory Flexibility Act
This proposed rule has been reviewed with regard to the
requirements of the Regulatory Flexibility Act. The General Sales
Manager has certified that this rule will not have a significant
economic impact on a substantial number of small entities because it
simply removes from the regulations information regarding a number of
inactive commodities and eliminates one document currently required to
be submitted by commodity suppliers seeking payment. There will be no
significant economic impact from this proposal on small or large
entities. A copy of this proposed rule has been submitted to the
General Counsel, Small Business Administration.
Executive Order 12372
This program 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 48 FR 29115 (June 24, 1983).
Executive Order 12778
The proposed rule has been reviewed under the Executive Order
12778, Civil Justice Reform. The proposed rule would 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 proposed rule would not have retroactive
effect. The rule does not require that administrative remedies be
exhausted before suit may be filed.
Background
Under title I of the Agricultural Trade Development and Assistance
Act of 1954, as amended (Pub. L. 480), the Commodity Credit Corporation
(CCC) is authorized to finance the sale and exportation of agricultural
commodities purchased by foreign countries. The Pub. L. 480, title I
Financing Regulations (``the regulations'') specify the documents which
the commodity supplier must present to support a request for payment.
Appendix A (``Contracting Requirements'') and Appendix B
(``Documentary Requirements'') of the regulations specify the basic
contracting and documentary requirements for a number of commodities
which have been shipped under the program since its inception. Many of
these commodities have not been programmed for a number of years, and
the contracting and documentary requirements are out-of-date.
Form CCC-106-1 and 106-3 (Commodity Supplier)
CCC issues Form CC-106, ``Advice of Vessel Approval,'' to provide
written approval for each commodity shipment. The form includes the
name of the vessel and its flag; the ocean freight rate; and the amount
of the ocean transportation which will be financed by CCC. Suppliers of
commodities must submit a completed Form CCC-106 to support all claims
for payment while suppliers of ocean transportation must do so only
when CCC finances any part of the ocean transportation and when
shipments are contracted basis delivery f.a.s. (``fee alongise'') or
f.o.b. (``free on board'') vessel. CCC uses the form to insure
compliance with the requirements of the Cargo Preference Act regarding
the tonnage to be shipped on U.S.-flag vessels and to specify the
amount of the ocean transportation which CCC will finance.
FAS proposes to remove the requirement that Form CCC-106 be
submitted as a payment document by the commodity supplier for sales
made on an f.a.s. or f.o.b. basis. Under these contract terms,
commodity and freight contracts are separate, and the commodity
supplier has no control over the vessel to be used.
If commodity sales are made on a ``cost and freight'' (c. & f.) or
``cost, insurance and freight'' (c.i.f.) basis, however, the commodity
supplier would still be required to submit a completed Form CCC-106
since the commodity supplier would also control the ocean freight.
The proposed amendments also delete references to the colors of the
various forms because the forms are now computer-generated and colored
carbon-set forms are no longer used.
[[Page 43567]]
Appendices A and B
A number of the commodities referred to in these appendices have
not been used in the program for more than five years, and some for
more than 20 years. To simplify and shorten the regulations and reduce
printing and distribution costs, FAS proposes to delete the sections of
these appendices for the following commodities: Corn meal; cracked
corn; unmanufactured tobacco and tobacco products; dry edible beans;
dry edible peas; lard; poultry; canned milk; nonfat dry milk, dry whole
milk; butter, anhydrous milk fat, anhydrous butter fat and butteroil;
cheese; ghee; and stabilized dried whole eggs.
Removing these sections from the regulations does not affect the
potential for future programming of these commodities under the title I
program. If any of the commodities removed from the appendices were to
be programmed under title I in the future, the relevant purchase
authorization would contain the updated contracting and documentary
requirements.
Paperwork Reduction Act
The reporting and recordkeeping requirements contained in this
proposed rule have been assigned OMB control number 0551-0005. This
proposed rule does not impose a public reporting burden. Send comments
regarding this burden estimate or any other aspect of this collection
of information, including suggestions for further reducing this burden,
to Department of Agriculture, Clearance Officer, OIRM, AGBOX 7630,
Washington, DC 20250-7630; and to the Office of Information and
Regulatory Affairs, Office of Management and Budget, Paperwork
Reduction Project (OMB #0551-0005), Washington, DC 20503.
List of Subjects in 7 CFR Part 17
Agricultural commodities; exports; finance; maritime carriers.
Accordingly, 7 CFR part 17, subpart A, is amended as follows:
1. The authority citation for part 17 continues to read as follows:
Authority: 7 U.S.C. 1701-1705, 1736a, 1736c, 5676; E.O. 12220,
45 FR 44245.
Sec. 17.2 [Amended]
2. In Sec. 17.2(b), the definition of ``Form CCC-106'' is amended
by removing the last sentence.
3. In Sec. 17.14, the word ``(white)'' is removed from the first
sentence of paragraph (d)(1); the last sentence of paragraph (d)(1) and
all of paragraph (d)(2)(i) are revised to read as follows; and the work
``(yellow)'' is removed from paragraph (d)(2)(ii), as follows:
Sec. 17.14 Ocean transportation.
* * * * *
(d) Advice of vessel approval. * * *
(1) For cotton. * * * If CCC finances any part of the ocean freight
when cotton is shipped on an f.a.s. basis, a signed original copy of
this form will be issued to the ocean carrier.
(2) For commodities other than cotton. * * *
(i) For shipments to be made on an f.o.b. or f.a.s. basis, when CCC
finances any part of the cost of ocean freight, the original of Form
CCC-106-2 will be issued to the ocean carrier.
* * * * *
Sec. 17.18 [Amended]
4. In Sec. 17.18, the phrase ``for c. & f. or c.i.f. sales'' is
added at the end of paragraph (c)(8)(ii).
Appendices A and B [Amended]
5. In Appendix A and Appendix B, existing sections (D), (E), (G),
(I), (J), (L), (M), (N), (O), (P), (Q), (R), (S), (T), and (U) are
removed; existing section (K) is redesignated as (G); existing section
(V) is redesignated as (D); and existing section (W) is redesignated as
(E).
6. In Appendix B, ``Documentary Requirements,'' the phrase ``for c.
& f. or c.i.f. sales'' is added at the end of the following paragraphs:
(A) (1)(d) and (2)(d); (B)(4); (C) (1)(d) and (2)(d); newly
redesignated (D)(4) and (E)(4); (F) (1)(d) and (2)(d); newly
redesignated (G) (1)(d) and (2)(d); and (H) (1)(d) and (2)(d).
Signed at Washington, D.C. on June 12, 1995.
Christopher E. Goldthwait,
General Sales Manager, Foreign Agricultural Service; and Vice
President, Commodity Credit Corporation.
[FR Doc. 95-20780 Filed 8-21-95; 8:45 am]
BILLING CODE 3410-10-M
