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Commodity Credit Corporation
7 CFR Part 1485
Agreements for the Development of Foreign Markets for
Agricultural Commodities
AGENCY: Commodity Credit Corporation (CCC).
ACTION: Interim final rule.
SUMMARY: This interim final rule amends regulations implementing the Market Promotion Program (MPP) authorized by Section 203 of the Agricultural Trade Act of 1978. This rule revises procedural and documentation requirements pertaining to program participants' contracts with third parties. The rule also corrects an erroneous cross-reference.
DATES: This interim rule is effective on February 1, 1996. Comments must be received in writing by February 15, 1996 to be assured of consideration.
ADDRESSES: Sharon L. McClure, Director, Marketing Operations Staff, Foreign Agricultural Service, United States Department of Agriculture, 14th and Independence Avenue, SW., Washington, DC 20250-1042.
FOR FURTHER INFORMATION CONTACT: Sharon L. McClure, (202) 720-5521.
SUPPLEMENTARY INFORMATION: This interim final 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 Mangement and Budget (OMB).
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not applicable to the interim 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
This program is 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).
Executive Order 12778
This rule has been reviewed under the Executive Order 12778, Civil Justice Reform. The 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 rule would not have retroactive effect. The rule does not require that administrative remedies be exhausted before suit may be filed.
Background
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.
On February 1, 1995, Commodity Credit Corporation (CCC) published final rules 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, participants expressed concern that new regulatory requirements applicable to a participant's contracts with third parties imposed an undue administrative burden and, because of the relatively late announcement of 1995 MPP allocations, could significantly delay effective implementation of some participants' 1995 programs. Specifically, participants expressed concern regarding the requirements for a price or cost analysis for each contract, 7 CFR 1485.23(c)(2)(v), and for certain procedural requirements in the solicitation of bids, 7 CFR 1485.23(c)(2)(vi).
CCC agrees that these requirements may unnecessarily increase costs to participants and may delay implementation of many activities and thereby be detrimental to the operation of an efficient market development program. Consequently, this rule will eliminate the current requirements in 7 CFR 1485.23(c)(2)(vi) regarding specific procurement procedures. In addition, the regulation regarding price or cost analysis is revised to indicate that CCC is not requiring a specific type of analysis or formal procedure for such analysis. Rather, the regulation makes it clear that various types of informal analysis should suffice, e.g., a simple comparison of price quotes with present market conditions. In this way, CCC requires the participant to act in a reasonable manner when entering into obligations to be reimbursed with project funds, without imposing any undue administrative burden on the participant.
This rule also revises an erroneous cross-reference presently in §1485.16(c)(24).
Information Collection Requirements
The amendment set forth in this interim 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 00551-0027.
List of Subjects in 7 CFR Part 1485
Agricultural commodities, Exports.
PART 1485-AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR AGRICULTURAL COMMODITIES
1. The authority citation for Part 1485 continues to read:
Authority: 7 U.S.C. 5623, 5662-5664 and sec. 1302, Pub. L. 103-66, 107 Stat. 330.
Subpart B-Market Promotion Program
2. Section 1485.16(c)(24) is revised to read as follows:
§1485.16 Reimbursement rules.
* * * * *
(c) * * *
(24) Generic commodity promotions (see §1486.16(f));
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3. Section 1485.23 is amended by revising paragraph (c)(2)(v) to read as follows and by deleting paragraph (c)(2)(vi):
§1485.23 Miscellaneous provisions.
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(c) * * *
(2) * * *
(v) Perform some form of price or cost analysis such as a comparison of price quotations to market prices or other price indicia, to determine the reasonableness of the offered prices.
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Signed at Washington, DC, this 25th day of January 1996.
August Schumacher, Jr.,
Administrator,
Foreign Agricultural Service and
Vice President, Commodity Credit Corporation
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