SUMMARY: This document contains corrections to the final regulations which were published Wednesday, February 1, 1995 (60 FR 6352). The regulations implement the Market Promotion Program authorized by the Section 203 of the Agricultural Trade Act of 1978.

EFFECTIVE DATE: June 25, 1996

FOR INFORMATION CONTACT: Sharon L. McClure or Denise Fetters at (202) 720-5521.

SUPPLEMENTARY INFORMATION:

Background

On February 1, 1995, the CCC published final rules at 60 F.R. 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 problem areas. Several errors were noted in these discussions while others were identified by participants during the course of the 1995 program year. The errors are as follows: In the preamble to the final rule, CCC explained that it considered an expense to be "incurred" as of the date a participant or third party transfers funds to pay for an expenditure. However, the use of this term remains somewhat confusing and, therefore, CCC is replacing all occurrences of the word "incurred" with terms or phrases that better reflect the intent of the regulations. Section 1485.14(a) is amended to refer to "maintaining" export markets in addition to developing and expanding export markets. The final rule erroneously omitted a reference to a transfer being made by a third party. The preamble to the final rule states that such transfer could be made either by the participant or a third party. Section 1485.16(a)(2) is amended to include reference to a "third party" transferring funds to pay for the expenditure. The prohibition on reimbursing costs for "travel in the United States unless in transit to or from a foreign country in which travel is not restricted" found in §1485.16(d)(27) would be deleted from the final rule because CCC does, in fact, allow expenditures on travel associated with trade shows, seminars, and educational training conducted in the United States as specified in §1485.16(c)(25). CCC inadvertently used incorrect terminology in §1485.20(a)(1). The phrase "generally accepted principles and standards of accounting" is replaced with "generally accepted accounting principles".

Need for Correction

As published, the final regulations contain errors which may prove to be misleading and are in need of clarification.

List of Subjects in 7 CFR Part 1485

Agricultural commodities, Exports.

Accordingly, 7 CFR Part 1485 is corrected by making the following correcting amendments:

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.