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Billing Code 3410-10-M
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1485
Agreements for the Development of Foreign Markets for
Agricultural Commodities
AGENCY: Commodity Credit Corporation (CCC)
ACTION: Final rule.
SUMMARY: The Commodity Credit Corporation (CCC) is adopting as a final rule the provisions of the proposed rule published January 10, 1996, (61 FR 704) regarding implementation of the Market Promotion Program (MPP) authorized by Section 203 of the Agricultural Trade Act of 1978, 7 U.S.C. 5623. Specifically, this rule extends the period of time following the expiration of the marketing year during which participants may pay for approved market development activities and still be entitled to receive reimbursement from CCC. This period of time is extended from 30 days to 4 months. This change eases administrative requirements by affording program participants additional time to obtain invoices and other documentation which supports the completion of overseas market development activities.
EFFECTIVE DATE: May 14, 1996.
FOR FURTHER INFORMATION CONTACT: Sharon McClure or Denise Fetters at (202) 720-5521.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final 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 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.
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.
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 final rule does not impose any new reporting or record keeping requirements. The information collection requirements for participating in the MPP were approved for use by the Office of Management and Budget under OMB control number 0551-0027.
Executive Order 12372
This final 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 12778
This final rule has been reviewed under the Executive Order 12778, 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.
Background
On February 1, 1995, the CCC published final rules at 60 FR 6352 governing the MPP. These new rules were applicable beginning with a participant's 1995 marketing year. Following publication, CCC participated with interested parties in five information sessions designed to familiarize participants with the new regulations and offer participants an additional opportunity to identify any problem areas. At these sessions, there was considerable discussion concerning the requirement that participants must completely pay for approved activities not later than 30 days following the end of a participant's activity plan year in order to receive reimbursement, 7 CFR §1485.16(h)(3). As a result of these discussions, CCC published a proposed rule on January 10, 1996, to amend the current requirement in 7 CFR §1485.16(h).
General Comments
The public was given 30 days to submit written comments on the proposed rule. During this period, CCC received 5 letters from nonprofit U.S. trade organizations. All commenters strongly supported the proposed rule which would allow participants to transfer funds to pay for activities not later than 4 months following the end of the activity plan year and still be entitled to receive reimbursement from CCC. The proposed rule is adopted as final. Since this final rule removes a restriction, it is being made effective upon publication in the Federal Register.
List of Subjects in 7 CFR Part 1485
Agricultural commodities, Exports.
Accordingly, 7 CFR Part 1485 is amended to read as follows:
PART 1485 - AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR AGRICULTURAL COMMODITIES
1. The authority citation for Part 1485 continues to read as follows:
Authority: 7 U.S.C. 5623, 5662-5664 and sec. 1302, Pub. L. 103-66, 107 Stat. 330.
Subpart B - Market Promotion Program
2. In §1485.16, paragraph (h) is revised to read as follows:
§1485.16 Reimbursement rules.
* * * * *
(h) CCC will reimburse for expenditures made after the conclusion of participant's activity plan year provided:
(1) The activity was approved prior to the end of the activity plan year;
(2) The activity was completed within 30 calendar days following the end of the activity plan year; and
(3) all funds were transferred to pay for the activity within 4 months following the end of the activity plan year.
Signed at Washington, D.C. on May 8, 1996.
Timothy J. Galvin,
Acting Administrator,
Foreign Agricultural Service and
Vice President, Commodity Credit Corporation
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