[Federal Register Volume 64, Number 219 (Monday, November 15, 1999)] [Notices] [Pages 61814-61816] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-29656] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Commodity Credit Corporation Announcement of the Quality Samples Program AGENCY: Commodity Credit Corporation, USDA. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: Commodity Credit Corporation is establishing, on a pilot basis, a ``Quality Samples Program'' to help develop and expand markets for U.S. agricultural commodities. DATES: All proposals must be received by 5:00 p.m. Eastern Standard Time, December 15, 1999. FOR FURTHER INFORMATION CONTACT: Marketing Operations Staff, Foreign Agricultural Service, Room 4932-S, Stop 1042, U.S. Department of Agriculture, 1400 Independence Ave., SW, Washington, D.C. 20250-1042, or telephone: (202) 720-4327. SUPPLEMENTARY INFORMATION: Introduction The Commodity Credit Corporation (CCC) announces that proposals may be submitted for participation in a ``Quality Samples Program'' (QSP). The QSP is a pilot program designed to encourage the development and expansion of export [[Page 61815]] markets for U.S. agricultural commodities, under the authority of the CCC Charter Act, 15 U.S.C. 714c(f). The QSP is designed to assist U.S. entities in providing commodity samples to potential foreign importers to promote a better understanding and appreciation for the high quality of U.S. agricultural commodities. CCC will consider providing funds on a grant basis to U.S. entities to assist them in providing such samples if a proposal has been submitted by the interested U.S. entity and accepted by CCC. CCC will review all proposals it receives against the evaluation criteria contained herein and award QSP funds on a competitive basis. Under the QSP, CCC will enter into agreements with those entities whose proposals have been accepted. QSP participants will be responsible for procuring (or arranging for the procurement of) commodity samples, exporting the samples, and providing the technical assistance necessary to facilitate successful use of the samples by importers. After completion of a QSP project, participants may submit claims for reimbursement of the costs associated with providing the samples to the extent that CCC has agreed to pay such costs. For example, CCC may agree to reimburse the cost of procuring and exporting the samples, including the commodity purchase price, document preparation fees, and commodity transportation costs. CCC will not reimburse the costs of providing technical assistance. The QSP agreement between CCC and the participant will include a maximum amount that may be reimbursed. A QSP participant will be reimbursed after CCC reviews its claim and determines that the claim is complete. The QSP activity will be subject to verification by the FAS Compliance Review Staff. Upon request, a QSP participant shall provide to CCC the original documents which support the participant's reimbursement claims. CCC may deny a claim for reimbursement if the claim is not supported by adequate documentation. The QSP will be administered by personnel of the Foreign Agricultural Service (FAS). CCC will carefully monitor the operation of the pilot QSP through Fiscal Year 2000. Based upon experience gained during this pilot phase, CCC will, after opportunity for public comment, consider continuing the program. CCC will not obligate more than $2.5 million for the QSP during this pilot phase. Proposal Process To be considered for participation in the QSP, interested parties should submit proposals to: Kent Sisson, Marketing Operations Staff, Foreign Agricultural Service, Room 4932-S, Stop 1042, U.S. Department of Agriculture, 1400 Independence Ave., SW, Washington, D.C. 20250- 1042. Telephone: (202) 720-4327. QSP proposals must contain complete information about the proposed sample projects. Interested parties can request a suggested format for proposals from the same address. Organizations which submitted QSP-type proposals in their Unified Export Strategy (UES) applications in March 1999 do not need to resubmit those proposals as they will automatically be considered. However, such applicants are welcome to modify and resubmit their proposals after reading this announcement. General Scope of QSP Projects As a general matter, QSP projects should be designed to accomplish the following goals:Projects should benefit the represented industry and not a specific company or brand; Projects should promote a new use or market for a U.S. product, or a new varietal type of a U.S. product, rather than promote the substitution of one established U.S. product for another; Sample commodities provided in a QSP project must be readily available on a commercial basis; Sample commodities must be subject to further processing or substantial transformation in the importing country; Samples provided in a QSP project shall not be used as part of a retail promotion or supplied directly to consumers; and Samples shall be in quantities less than a typical commercial sale and limited to the amount sufficient to achieve the project goal (e.g., not more than a full commercial mill run in the destination country). QSP projects shall target foreign importers who: Have not previously purchased a particular U.S. commodity; Are unfamiliar with a particular U.S. variety, quality attribute, or end-use characteristic; Have been unsuccessful in previous attempts to import, process, and market a particular U.S. commodity (e.g., because of improper specification, blending, or formulation; or sanitary or phytosanitary (SPS) issues); Are interested in testing or demonstrating the benefits of a particular U.S. commodity; or Need technical assistance in processing or using a particular U.S. commodity. Entities interested in participating in the QSP are not required to submit proposals in any specific format; however, FAS recommends that proposals contain, at a minimum, the following: (a) Organizational information, including: Organization's name, address, Chief Executive Officer (or designee), and Federal Tax Identification Number (TIN); Type of organization; Name, telephone number, fax number, and e-mail address of the primary contact person; A description of the organization and its membership; A description of the organization's prior export promotion experience; and A description of the organization's experience in implementing an appropriate trade/technical assistance component; (b) Market information, including: An assessment of the market; A long-term strategy in the market; and U.S. export value/volume and market share (historic and goals) for 1997-2005; (c) Project information, including: A brief project title; Request for funding; A brief description of the specific market development trade constraint to be addressed by the project, performance measures for the years 2000-2002 which will be used to measure the effectiveness of the project, a benchmark performance measure for 1999, the viability of long term sales to this market, the goals of the project, and the expected benefits to the represented industry; A description of the activities planned to address the constraint, including how the sample will be used in the end-use performance trial, the attributes of the sample to be demonstrated and their end-use benefit, and details of the trade/technical servicing component associated with the sample; A sample description (i.e., commodity, quantity, quality, type, and grade), including a justification for selecting a sample with such characteristics; An itemized list of all estimated costs associated with the project for which reimbursement will be sought (e.g., commodity costs, freight, inspection and weighing, freight forwarding services, and document preparation fees); and Ports of export and delivery; (d) Importer information, including: Name, address, and telephone of primary contact person; [[Page 61816]] The reason why the importer was selected for the project; and The importer's role in the project regarding handling and processing the commodity sample; and (e) Information indicating all funding sources, and amounts to be contributed by each entity that will contribute to implementation of the proposed project. This may include the organization that submitted the proposal, private industry entities, host governments, foreign third parties, CCC, FAS, or other Federal agencies. Contributed resources may include cash, goods, and services. Review Process FAS will use the following criteria in evaluating proposals: The overall quality of the proposal; The ability of the organization to provide an experienced staff with the requisite technical and trade experience to execute the proposal; The extent to which the proposal is targeted to a market in which the United States is generally competitive; The potential for expanding commercial sales in the proposed market; The nature of the specific market constraint involved and how well it is addressed by the proposal; The extent to which the importer's contribution in terms of handling and processing enhances the potential outcome of the project; The amount of reimbursement requested and the organization's willingness to contribute resources, including cash and goods and services of the U.S. industry and foreign third parties; and How well the proposed technical assistance component assures that performance trials will effectively demonstrate the intended end-use benefit. FAS will establish a QSP Committee (Committee) for the purpose of reviewing proposals for eligibility and completeness and allocating CCC funds. The Committee will evaluate each proposal against the factors described above. The purpose of this review is to identify meritorious proposals, recommend an appropriate funding level for each proposal based upon these factors, and submit the proposals and funding recommendations to the Deputy Administrator, Commodity and Marketing Programs. Agreements Following approval of a proposal, CCC will enter into an agreement with the organization that submitted the proposal. Agreements will incorporate the proposal as approved by FAS. Each agreement will identify terms and conditions pursuant to which CCC will reimburse certain costs of the project. Agreements will also outline the responsibilities of the participant, including, but not limited to, procurement (or arranging for procurement) of the commodity sample at a fair market price, arranging for shipment of the commodity sample within the time limit specified in the agreement (generally 90 days), compliance with cargo preference requirements (shipment on United States flag vessels, as may be required), timely and effective implementation of technical assistance, and submission of a written evaluation report within 6 months of completion of the project. Evaluation reports should address the performance measures presented in the proposal. Closing Date for Proposals All proposals must be submitted in triplicate and received by 5:00 p.m. Eastern Standard Time, [insert date 30 days after date of publication in the Federal Register], at one of the following addresses: Hand Delivery (including FedEx, DHL, etc.): U.S. Department of Agriculture, Foreign Agricultural Service, Marketing Operations Staff, Room 4932-S, 14th and Independence Avenue, S.W., Washington, D.C. 20250-1042. U.S. Postal Delivery: Marketing Operations Staff, STOP 1042, 1400 Independence Ave., SW, Washington, D.C. 20250-1042. Dated: November 4, 1999. Timothy J. Galvin, Administrator, Foreign Agricultural Service, Vice President, Commodity Credit Corporation. [FR Doc. 99-29656 Filed 11-12-99; 8:45 am] BILLING CODE 3410-10-P