[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Proposed Rules]
[Pages 8879-8881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4424]
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COMMODITY CREDIT CORPORATION
7 CFR Part 1499
RIN 0551-0035
Foreign Donation of Agricultural Commodities
agency: Commodity Credit Corporation, USDA.
action: Proposed rule.
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summary: The Commodity Credit Corporation proposes to amend the rules
governing foreign donations of agricultural commodities. This proposed
rule contains changes, corrections and clarifications to the final
regulations to achieve more effective management of foreign donations
of agricultural commodities.
dates: Submit comments on or before April 24, 1998.
addresses: Address all comments concerning this proposed rule to Ira D.
Branson, Director/Commodity Credit Corporation, Program Support
Division, Foreign Agricultural Service, United States Department of
Agriculture, 1400 Independence Ave., S.W., Stop 1031, Washington, D.C.
20250-1031; telephone (202) 720-3573.
You may submit comments and data by sending electronic mail (E-
mail) to: [email protected].
for further information contact: Juanita Lambert, Chief/Program
Evaluation Branch, Commodity Credit Corporation Program Support
Division, Foreign Agricultural Service, United States Department of
Agriculture, 1400 Independence Ave., S.W., Stop 1031, Washington, D.C.
20250-1031; telephone (202) 720-2465.
supplementary information: This 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 materially alter the budgetary impact of entitlement,
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
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 information collection requirements imposed by this proposed
[[Page 8880]]
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 0551-0035 for this
information collection. This proposed rule change would not require
collection of additional information; however, the proposed rule
includes a requirement to use new forms for the semiannual logistics
and monetization reports. These report forms have been submitted to OMB
for review.
Executive Order 12372
This 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 12988
This rule has been reviewed under the Executive Order 12988, 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.
Rules governing Commodity Credit Corporation's (``CCC'') donation
of agricultural commodities under section 416(b) of the Agricultural
Act of 1949 and the Food for Progress Act of 1985 appear at 7 CFR part
1499. This proposed rule would review the regulations to address
certain issues that have arisen since the rules were first published on
November 29, 1996, and, additionally, make no-substantive corrections.
Program Operation Budgets
The regulations require cooperating sponsors to submit a Program
Operation Budget in order to obtain CCC funding of certain
administrative expenses and overseas internal transportation or
handling cost. The Program Operation Budget details the costs for which
CCC funding is requested. Currently, the regulations (7 CFR
Sec. 1499.7(e)) provide that a cooperating sponsor may make adjustments
to individual line items in an approved Program Operation Budget up to
20 percent of the total approved budget, or $1,000, whichever is less.
This provision has limited cooperating sponsor's flexibility in meeting
unanticipated circumstances during implementation of activities.
Consequently, cooperating sponsors have needed to prepare numerous
budget amendments thereby increasing their paperwork burden and
imposing additional administrative burdens on CCC.
CCC proposes to permit cooperating sponsors to make adjustments in
line items of the Program Operation Budget of up to 20 percent of the
total budget or $5,000, which ever is less. This increase will allow
CCC to maintain effective oversight of the use of its funding while
eliminating paperwork and administrative burdens.
Payment Documentation
If CCC agrees to pay ocean transportation for donated commodities,
CCC will pay the ocean freight directly to the ocean carrier. The
regulations specify the documentation required to be submitted to CCC
before payment will be made.
In accordance with requirements of the Debt Management Improvement
Act of 1994, CCC is moving towards a system whereby all payments of CCC
funds will be by electronic transfer. Therefore, this rule includes a
proposed new section (7 CFR 1499.8(h)(3)) listing the information that
ocean carriers and cooperating sponsors must submit to CCC in order to
receive funds. Recipients must submit the information with every
request for payment. This will speed processing by ensuring that
payment information is kept current.
The proposed rule also clarifies that certain specified documents
must be signed when submitted to CCC for payment. Additionally, CCC
would require a copy of the tariff pages applicable to any liner
shipments to enable CCC to check liner rates.
Termination of Program Activities
This proposed rule adds a new Sec. 1499.10(d) to address the
disposition of donated commodities and local currency proceeds by a
non-governmental cooperating sponsor in the event that the cooperating
sponsor's participation in the program terminates for any reason prior
to completion of approved activities. The proposed rule would add a
requirement that the cooperating sponsor take reasonable steps to
secure any undistributed commodities or sales proceeds and notify CCC
of their status. The commodities or proceeds would then be disposed of
as directed by CCC. Given the varied situations that may arise to cause
termination, the rule cannot set forth, in advance, any standard
disposition procedures.
Reports
The proposed regulation would establish a standard date for
submission of all semiannual logistic and monetization reports and a
standardized reporting period. Also, as mentioned above FAS proposes
the use of specific reporting forms for these reports. Currently, each
agreement set forth the reporting date and period. This uniformity
should ease administration for both the cooperating sponsors and CCC.
Miscellaneous
The proposed regulation would also make a number of nonsubstantive
changes intended for clarification only or to update office references.
List of Subjects in 7 CFR Part 1499
Agricultural commodities, Exports, Foreign aid.
Accordingly, CCC proposes to amend 7 CFR part 1499 as follows:
PART 1499--FOREIGN DONATION PROGRAMS
1. The authority citation for part 1499 continues to read as
follows:
Authority: 7 U.S.C. 1431(b); 7 U.S.C. 1736o; E.O. 12752.
Sec. 1499.1 [Amended]
2. Section 1499.1 is amended by removing ``KCFMO--Kansas City
Financial Management Office'' and adding, in its place, ``KCMO/DMD--
Kansas City Management Office/Debt Management Division''.
3. Section 1499.7(e) is amended by revising the third and fourth
sentences to read as follows:
Sec. 1499.7 Apportionment of costs and advances.
* * * * *
(e) * * * The non-government Cooperating Sponsor may make
adjustments between line items of an approved Program Operations Budget
up to 20 percent of the total amount approved or $5,000, whichever is
less without any further approval. Adjustments beyond these limits must
be specifically approved by the Director, PDD.
* * * * *
Sec. 1499.7 [Amended]
4. Section 1499.7(i) is amended by deleting ``Director, CCCPSD''
and adding in its place, ``Director, PDD.''
5. In Sec. 1499.8, the introductory text of paragraph (b) and the
headings of paragraph (g) and (g)(1) are revised, paragraph (g)(1)(vii)
is redesignated as paragraph (g)(1)(viii), and new
[[Page 8881]]
paragraphs (g)(1)(vii) and (g)(1)(ix) are added, to read as follows:
Sec. 1499.8 Ocean transportation.
* * * * *
(b) Freight procurement requirements. When CCC is financing any
portion of the ocean freight, whether on U.S.-flag or non-U.S. flag
vessels, and the Cooperating Sponsor arranges ocean transportation:
* * * * *
(g) Documents required for payment of freight--(1) General rule. *
* *
* * * * *
(vii) For all liner cargoes, a copy of the tariff page.
* * * * *
(ix) Each request to CCC for payment must provide a document, on
letterhead and signed by an official or agent of the requester, the
name of the entity to receive payment, the bank ABA number to which
payment is to be made; the account number for the deposit at the bank;
the requester's taxpayer identification number; and the type of account
into which funds will be deposited.
* * * * *
1499.8 [Amended]
6. In section 1499.8, paragraph (8) is amended by deleting ``One
copy'' wherever it appears and adding ``One signed copy'' in its place,
and paragraph (g)(1)(vi) is amended by deleting ``a notice'' and
adding, in its place, ``a signed notice''.
7. Section 1499.10 is amended by adding a new paragraph (d) to read
as follows:
Sec. 1499.10 Restrictions on commodity use and distribution.
* * * * *
(d) In the event that its participation in the program terminates,
the non-government cooperating sponsor will safeguard any undistributed
commodities and sales proceeds and dispose of such commodities and
proceeds as directed by CCC.
8. Section 1499.14(b)(2) is amended by deleting ``KCFMO'' and
adding, in its place ``KCMO/DMD.''
9. Section 1499.15, is amended by removing ``KCFMO'' wherever it
appears and add, in its place ``KCMO/DMD'', revising the last sentence
of paragraphs (d)(2) and (f)(3), and adding paragraphs (d)(2)(i)
through (d)(2)(vi) to read as follows:
Sec. 1499.15 Liability for loss, damage, or improper distribution of
commodities--claims and procedures.
* * * * *
(d) * * *
(2) * * * In the event of a declaration of general average:
(i) The Cooperating Sponsor shall assign all claim rights to CCC
and shall provide CCC all documentation relating to the claim, if
applicable;
(ii) CCC will be responsible for settling general average and
marine salvage claims;
(iii) CCC has sole authority to authorize any disposition of
commodities which have not commenced ocean transit or of which the
ocean transit is interrupted;
(iv) CCC will receive and retain any monetary proceeds resulting
from such disposition;
(v) CCC will initiate, prosecute and retain all proceeds of cargo
loss and damage against ocean carriers and any allowance in general
average; and
(vi) CCC will pay any general average or marine salvage claims
determined to be due.
* * * * *
(f) * * *
(3) * * * If the Agricultural Counselor or Attache approves a
Cooperating Sponsor's decision not to take further action on the claim,
the Cooperating Sponsor shall assign the claim to CCC and shall forward
all documentation relating to the claim to KCMO/DMD.
* * * * *
10. In section 1499.16, the second and third sentences of (c)(1)
and the second and third sentences of (c)(2) are revised to read as
follows:
Sec. 1499.16 Records and reporting requirements.
* * * * *
(c) Reports. (1) * * * Cooperating Sponsors must submit reports on
Form CCC-620 and submit the first report by May 16 for agreements
signed during the period, October 1 through March 31 or by November 16
for agreements signed during the period, April 1 through September 30.
The first report must cover the time period from the date of signing
and subsequent reports must be provided at six months intervals
covering the period from the due date of the last report until all
commodities have been distributed or sold and such distribution or sale
reported to CCC. * * *
(2) * * * Cooperating Sponsors must submit reports on Form CCC-621
and submit the first report by May 16 for agreements signed during the
period, October 1 through March 31 or by November 16 for agreements
signed during the period, April 1 through September 30. The first
report must cover the time period from the date of signing and
subsequent reports must be provided at six months intervals covering
the period from the due date of the last report until all funds
generated from commodity sales have been distributed and such
distribution reported to CCC. * * *
* * * * *
Dated: November 20, 1997.
Christopher E. Goldthwait,
General Sales Manager, FAS, and Vice President, Commodity Credit
Corporation.
[FR Doc. 98-4424 Filed 2-20-98; 8:45 am]
BILLING CODE 3410-10-M