[Federal Register Volume 63, Number 152 (Friday, August 7, 1998)]
[Proposed Rules]
[Pages 42283-42284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-20755]
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Proposed Rules
Federal Register
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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. 63, No. 152 / Friday, August 7, 1998 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 17
RIN 0551-AA54
Regulations Governing the Financing of Commercial Sales of
Agricultural Commodities
AGENCY: Commodity Credit Corporation.
ACTION: Proposed rule.
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SUMMARY: The Commodity Credit Corporation (CCC) proposes to revise 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 rule would permit a waiver of the present requirement that
only private entities with a business office or agent in the United
States are eligible to enter into title I, Pub. L. 480 agreements when
the General Sales Manager determines that there is adequate assurance
of repayment to CCC. This change would allow additional foreign private
entities to participate in title I, and thereby increase exports of
U.S. agricultural commodities.
DATES: Comments on this rule must be received by September 8, 1998.
ADDRESSES: Comments should be sent to Grant Pettrie, Acting Director,
Program Development Division, Foreign Agricultural Service, U.S.
Department of Agriculture, Room 4506, South Building, Stop 1034,
Washington, D.C. 20250-1034.
FOR FURTHER INFORMATION CONTACT: Grant Pettrie, Acting Director,
Program Development Division, Foreign Agricultural Service, U.S.
Department of Agriculture, Room 4506, South Building, Stop 1034,
Washington, D.C. 20250-1034; telephone: (202) 720-4221; Facsimile:
(202) 690-0251.
SUPPLEMENTARY INFORMATION: This proposed rule is issued in conformance
with Executive Order 12866. Based on information compiled by the
Department, it has been determined that this proposed 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 alter the budgetary impact of entitlements, 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
This proposed rule has been reviewed with regard to the
requirements of the Regulatory Flexibility Act. The Vice President,
CCC, who is the General Sales Manager, has certified that this rule
will not have a significant economic impact on a substantial number of
small entities.
Under title I, P. L. 480 CCC enters into agreements with foreign
governments or private entities to finance their purchase and
importation of U.S. agricultural commodities. The proposed rule would
allow a waiver of an existing program requirement that restricts the
eligibility of businesses in foreign countries to enter into these
agreements with CCC. 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).
Paperwork Reduction Act
The information collection requirements imposed by this proposed
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 0551-0005 for this
information collection. This proposed rule would not require the
collection of additional information.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
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 final rule would not have retroactive effect. The
rule does not require that administrative remedies be exhausted before
suit may be filed.
Background
Title I of the Agricultural Trade Development and Assistance Act of
1954, as amended (Pub. L. 480) authorizes CCC to finance the sale and
exportation of agricultural commodities on concessional credit terms, 7
U.S.C. 1701 et seq. On October 10, 1997, CCC published a final rule (62
FR 52929) amending the regulations governing Pub. L. 480 to, among
other things, provide that CCC may enter into title I, P. L. 480
agreements with private entities. However, that rule requires that, in
order to be eligible for a title I, P. L. 480 agreement, a private
entity must maintain a bona fide business office in the United States
and have a person, principal, or agent on whom service of judicial
process may be had in the United States.
The purpose of requiring that private entities have a presence in
the United States was to make them more amenable to legal process in
the case of a default in repayment to CCC. It appears, however, that
this requirement could restrict participation by some foreign private
entities that could not meet this requirements in a practical manner.
This could limit CCC's flexibility in programming and eliminate
consideration of viable export opportunities that would otherwise
further the purposes of title I, Pub. L. 480. Consequently, this
proposed rule would allow the General Sales Manager to waive this
requirement if the foreign private entity provides adequate assurances
of repayment to CCC for the financing extended to it under the Pub. L.
480 agreement. It is not necessary to
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identify in advance what may constitute adequate assurances of
repayment because options may vary considerably depending upon foreign
private entities and the country involved.
List of Subjects in 7 CFR Part 17
Agricultural commodities, Exports, Finance, Maritime carriers.
Accordingly, it is proposed to amend Part 17 of 7 CFR as follows:
PART 17--SALES OF AGRICULTURAL COMMODITIES MADE AVAILABLE UNDER
TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF
1954, AS AMENDED
1. The authority citation for part 17 continues to read as follows:
Authority: 7 U.S.C. 1701-1704, 1731-1736b, 1736f, 5676; E.O.
12220, 45 FR 44245.
2. Section 17.1(b)(3) is revised to read as follows:
Sec. 17.1 General
* * * * *
(b) * * *
(3) A private entity must maintain a bona fide business office in
the United States and have a person, principal, or agent on whom
service of judicial process may be had in the United States unless the
General Sales Manager determines that there are adequate assurances of
repayment to CCC for the financing extended by CCC.
* * * * *
Signed at Washington D.C. on July 27, 1998.
Lon Hatamiya,
Administrator, Foreign Agricultural Service and Vice President,
Commodity Credit Corporation.
[FR Doc. 98-20755 Filed 8-6-98; 8:45 am]
BILLING CODE 3410-10-P
