[Federal Register Volume 60, Number 17 (Thursday, January 26, 1995)]
[Rules and Regulations]
[Pages 5087-5096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1866]



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DEPARTMENT OF AGRICULTURE
Consolidated Farm Service Agency

7 CFR Part 782

RIN 0560-AD77


End-Use Certificate Program

AGENCY: Consolidated Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: Pursuant to section 321(f) of the North American Free Trade 
Agreement Implementation Act (the Act), a proposed rule was published 
on October 20, 1994 with respect to the implementation of an end-use 
certificate program for wheat and barley imported from any foreign 
country or instrumentality that as of April 8, 1994, required end-use 
certificates for imports of U.S.-produced wheat and barley, 
respectively. This final rule adopts provisions of the proposed rule, 
with the exception of changes that were made based on comments received 
in response to the proposed rule. The major changes are further 
discussed in the Summary of Comments portion of this final rule. 
Accordingly, this final rule sets forth the policies and procedures 
that the Consolidated Farm Service Agency (CFSA), formerly the 
Agricultural Stabilization and Conservation Service (ASCS), will use to 
implement this end-use certificate program.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Deputy Administrator, Commodity 
Operations, Consolidated Farm Service Agency, United States Department 
of Agriculture, P.O. Box 2415, Washington, DC 20013-2415.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule has been determined to be significant and was 
reviewed by the Office of Management and Budget (OMB) under Executive 
Order 12866.

Executive Order 12778

    This final rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this final rule do not preempt State 
laws, are not retroactive, and do not involve administrative appeals.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
[[Page 5088]] action will not have a significant impact on the quality 
of the human environment. Therefore, neither an Environmental 
Assessment nor an Environmental Impact Statement is needed.

Executive Order 12372

    This program/activity 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).

Paperwork Reduction Act

    This final rule contains new reporting and recordkeeping 
requirements. The new requirements have been submitted to OMB for 
approval under the provisions of 44 U.S.C. 35. Send comments regarding 
this collection of information to: Department of Agriculture, Clearance 
Office, Office of Information Resources Management, Room 404-W, 
Washington, DC 20250, and Regulatory Affairs of OMB, Attention: Desk 
Officer for USDA, Room 3201, New Executive Office Building, Washington, 
DC 20503.

Final Regulatory Impact Analysis

    The Final Regulatory Impact Analysis describing the impact of the 
implementation of this final rule is available upon request from Craig 
Jagger, Grains Analysis Division, CFSA, P.O. Box 2415, Washington, DC 
20013-2415; telephone: (202) 720-4418.

Regulatory Flexibility Act

    It has been determined under the Regulatory Flexibility Act that 
this final rule will have an adverse effect on a substantial number of 
small businesses. The analysis discussing these impacts is available 
upon request from Craig Jagger, at the address and telephone number 
noted above.

Background

    The Act requires that a U.S. end-use certificate program be 
established for wheat and barley imported from any foreign country or 
instrumentality that, as of April 8, 1994, required end-use 
certificates for imports of U.S.-produced wheat and barley. As of that 
date and currently, Canada is the only country that has such a 
requirement for wheat. Neither Canada nor any other country had an end-
use requirement for barley on April 8, 1994.
    Pursuant to section 101(a)(2) of the Act, Congress approved the 
Statement of Administrative Action prepared to implement the North 
American Free Trade Agreement. The Statement of Administrative Action 
states that the purpose of the U.S. end-use requirement is to ensure 
that foreign agricultural commodities do not benefit from U.S. export 
programs. Such programs include, among others, the export credit 
guarantee program and the export enhancement program, both of which 
require any grain exports on which benefits are paid to be entirely 
produced in the United States. (7 U.S.C. 5622(h); 7 CFR 1493(a); 7 
U.S.C. 5651(a); 7 CFR 1494.501(c)(20)(xi).
    A notice requesting comments regarding an end-use certificate 
program was published in the Federal Register on April 13, 1994, at 59 
FR 17495. Comments received in response to this notice were taken into 
account in the development of the proposed rule which was published on 
October 20, 1994, at 59 FR 52931.
    The October 20 rule proposed to adopt a program similar to that of 
Canada with respect to imports of U.S.-produced wheat and barley. The 
rule proposed that importers of Canadian-produced wheat and barley 
would be required to store such imported grain separately from U.S.-
produced grain until delivered to the end user.
    The rule also proposed that, upon importation, each entry of wheat 
or barley from Canada must be reported to the Kansas City Commodity 
Office (KCCO), of the CFSA, on form ASCS-750, End-Use Certificate for 
Grain, within 10 days following the date of entry. Further, any 
importer, subsequent buyer, or end user storing Canadian-produced wheat 
or barley would be required to report to KCCO the status of the 
imported commodity on form ASCS-751, End-Use Certificate for Grain 
Quarterly Report, until the commodity is sold, resold, or fully used.

SUMMARY OF COMMENTS: Thirty-two timely comments were received in 
response to the proposed rule published in the Federal Register on 
October 20, 1994 (59 FR 52931). Twenty-four of the respondents 
supported the provisions contained in the proposed rule, while four 
were not in favor.
    Of those supporting CFSA's proposed rule, 19 recommended immediate 
implementation of the end-use certificate program. However, so that 
U.S. importers will have ample time to establish separate storage, 
recordkeeping, and reporting systems, this final rule will not become 
effective until February 27, 1995.
    Seventeen of the respondents recommended that CFSA collect 
information on the price paid by the U.S. importer for Canadian grain. 
This recommendation will not be adopted because CFSA does not have the 
statutory authority to collect such information.
    Five respondents noted that the Government of Canada (GOC) has no 
end-use certificate requirements on imports of U.S.-produced barley and 
did not have such a requirement on April 8, 1994. After further review, 
it has been determined that, because the GOC has imposed only an import 
license requirement rather than an end-use certificate requirement on 
U.S.-produced barley, and because an import license is distinct from an 
end-use certificate requirement, CFSA has no statutory authority to 
implement an end-use certificate program for barley.
    Three respondents indicated that a provision should be made to 
allow for the commingling of U.S. and Canadian grain at the time the 
commodity is being ``loaded out'' by either the importer or subsequent 
buyer to the end user. As proposed, commingling would be prohibited 
until the grain is delivered to the end user. It is implied that the 
commingling cannot occur at any facility other than that of the end 
user. The respondents stated that some end users do not have the 
capability to blend grain, and that not allowing commingling to occur 
at ``load out'' would preclude blending by merchandisers to meet the 
contract specifications of an end user. To clarify this provision and 
allow merchandisers to participate in commercial sales, the final rule 
provides that U.S.-produced wheat and Canadian-produced wheat may only 
be commingled by the end user or when loaded onto a conveyance for 
direct delivery to an end user.
    Three respondents recommended that CFSA prohibit the disclosure of 
private information between buyers and sellers that will be collected 
as a result of the end-use requirements. Although this final rule does 
not contain a specific prohibition regarding the disclosure of 
collected information, CFSA will handle all data collected through the 
end-use requirements in accordance with current agency procedures used 
to comply with the Privacy Act and Freedom of Information Act 
requirements.
    Three respondents expressed concern with the penalties for 
noncompliance, believing that the penalties were either too severe or 
should be increased as the incidence of violations increases. The Act 
specifies that a criminal violation occurs if a person engages in fraud 
or knowingly violates this regulation. Accordingly, CFSA has no 
statutory authority to change the applicable penalties. [[Page 5089]] 
    Two respondents recommended that CFSA require exporters to forward 
copies of end-use certificates to foreign end users, such as flour 
millers or government entities which purchase U.S.-produced wheat under 
commercial terms for importation. This recommendation will not be 
adopted as it exceeds the statutory authority provided to CFSA under 
the Act.
    Two respondents expressed concern that the proposed rule prohibited 
changes to the intended use of the commodity once an intended use is 
designated on the end-use certificate by the importer. Additionally, 
two other respondents recommended consolidating intended uses into only 
two categories, domestic use and export, which would permit the 
importer to deliver the commodity to any user, with no restrictions 
placed on the end use of the grain. The proposed rule reflects the 
Canadian system with respect to the prohibition of changing intended 
use once designated. However, because the proposed rule was not 
intended to restrict the use of Canadian-produced wheat as it flows 
through U.S. commercial channels, the final rule deletes the 
requirement for the importer to designate the intended use of Canadian-
produced wheat at the time of importation. Information concerning the 
end-use of the wheat will be collected from end users and exporters.
    Two respondents indicated that the proposed rule exceeded the legal 
authority provided under the Act by extending the application of end-
use certificates, namely identity-preserved storage, to domestic food 
assistance programs. The respondents stated that (1) the legislative 
mandate requiring end-use certificates to protect the integrity of the 
U.S. export programs does not change the underlying laws governing 
domestic food assistance programs, and (2) CFSA's current system of 
assuring origin for domestic food assistance programs should remain 
intact, as described in the proposed rule. Inasmuch as entities who 
participate in domestic and foreign food assistance programs must 
comply with domestic origin requirements, this final rule provides only 
for the identity preserved storage of Canadian-produced wheat beginning 
with importation into the U.S. until the wheat is loaded onto a 
conveyance for direct delivery to an end user, or until delivered to 
the end user. This final rule does not impose requirements on the end-
use of the imported wheat or change current domestic origin 
requirements.
    One respondent recommended that CFSA establish an automated system 
to collect information required under the End-Use Certificate program. 
CFSA will work toward the automation of the collection and reporting 
requirements. Importers, end users, and subsequent buyers will, 
however, be required to provide CFSA with the required documentation in 
paper form until the automated process is complete.
    One respondent recommended that the definition of end user should 
be amended to include export facilities. While the definition of end 
user has not been amended, specific provisions have been developed to 
provide instructions to importers or subsequent buyers who purchase 
Canadian-produced wheat for export and are incorporated into this final 
rule.
    One respondent recommended that the quantity imported should be 
reported on a ``per conveyance'' basis. This recommendation has been 
incorporated into the final rule.
    One respondent requested that the final rule provide for a waiver 
from the certificate requirement for importers, like himself, who use 
Canadian wheat as seed wheat. Importers of Canadian seed wheat will not 
be excluded from the requirements set forth in this final rule because 
such wheat may enter commercial markets if not used as originally 
intended after importation.
    One respondent noted that the proposed 10-day reporting period for 
submitting information to KCCO is short. Because of the marketability 
of commodities such as wheat, and the ease with which title can 
transfer from one owner to another, it is vital to the success of the 
end-use certificate program for CFSA to have timely information 
relating to imported Canadian wheat. Failure to collect the information 
during the 10-day reporting period would make it difficult to ensure 
that the imported wheat is being used in a matter consistent with this 
final rule.
    One respondent expressed concern over the proposed rule's 
provisions relating to bills of lading, stating that the provisions are 
in conflict with the Interstate Commerce Commission's regulations 
governing bills of lading. A further review of the information to be 
collected from importers indicates that by making a minor addition to 
the provisions for collection of data, CFSA would have sufficient data 
to track Canadian wheat through the U.S. commercial channels without 
requiring submission of bills of lading. Accordingly, the provisions 
that would have required the importer to submit to KCCO, within 10 
workdays after delivery of the commodity to the end user, a bill of 
lading acknowledging receipt of the commodity have been withdrawn.
    Minor changes have also been made in this final rule to the 
collection requirements. Specifically, the proposed form ASCS-750, End-
Use Certificate for Grain, and form ASCS-751, End-Use Certificate for 
Grain Quarterly Report, have been revised to reflect the change in the 
agency name and deletion of the barley requirements. In addition, form 
ASCS-751 has been renamed to more accurately reflect the use of the 
form, and has been redesigned to incorporate changes that were made to 
simplify reporting requirements. Accordingly, the forms are titled 
ASCS-750, End-Use Certificate for Wheat, and ASCS-751, Wheat 
Consumption and Resale Report. In addition, importers are no longer 
required to include the intended use of the imported wheat on form 
ASCS-750, but are required to enter the customs entry number, date of 
entry, and importer number on form ASCS-750. This additional 
information is readily available to importers and will be used for (1) 
cross-referencing with information provided to CFSA by the Commissioner 
of Customs, and (2) verifying compliance with the policies and 
provisions set forth in this final rule. Also, the general information 
included on the ASCS-750 has been revised to incorporate the provisions 
that were proposed to be included in sales contracts entered into 
between importers and subsequent buyers, or between any subsequent 
buyers. Because importers and subsequent buyers are required to provide 
their purchasers with a copy of the ASCS-750, this final rule deletes 
all requirements for changes to sales contracts that were included in 
the proposed rule. Finally, on form ASCS-751, ``export'' will be added 
as an end use to allow exporters to properly designate the end use for 
wheat that will be purchased by foreign entities under commercial 
terms.

List of Subjects in 7 CFR Part 782

    Administrative practice and procedure, Reporting and recordkeeping 
requirements, Wheat.

    Accordingly, subchapter D, chapter VII of title 7 of the Code of 
Federal Regulations is amended by adding part 782 to read as follows:

PART 782--END-USE CERTIFICATE PROGRAM

Subpart A--General

Sec.
782.1  Basis and purpose.
782.2  Definitions.
782.3  Administration. [[Page 5090]] 
782.4  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

Subpart B--Implementation of End-Use Certificate Program

782.10  Identification of commodities subject to end-use certificate 
regulations.
782.11  Extent to which commodities are subject to end-use 
certificate regulations.
782.12  Filing ASCS-750, End-Use Certificate for Wheat.
782.13  Importer responsibilities.
782.14  Identity preservation.
782.15  Filing ASCS-751, Wheat Consumption and Resale Report.
782.16  Designating end use on form ASCS-751.
782.17  Wheat purchased for resale.
782.18  Wheat purchased for export.
782.19  Penalty for noncompliance.

Subpart C--Records and Reports

782.20  Importer records and reports.
782.21  End-user and exporter records and reports.
782.22  Subsequent buyer records and reports.
782.23  Failure to file end-use certificates or consumption and 
resale reports.
782.24  Recordkeeping and examination of records.
782.25  Length of time records are to be kept.

    Authority: 19 U.S.C. 3391(f).

Subpart A--General


Sec. 782.1  Basis and purpose.

    The regulations contained in this part are issued pursuant to and 
in accordance with Section 321(f) of the North American Free Trade 
Agreement Implementation Act. These regulations govern the 
establishment of the end-use certificate program, the completion of 
end-use certificates, the identification of commodities requiring end-
use certificates, the submission of reports, and the keeping of records 
and making of reports incident thereto.


Sec. 782.2  Definitions.

    As used in this part and in all instructions, forms, and documents 
in connection therewith, the words and phrases defined in this section 
shall have the meanings herein assigned to them unless the context or 
subject matter requires otherwise. References contained herein to other 
parts of this chapter or title shall be construed as references to such 
parts and amendments now in effect or later issued.
    Date of entry means the effective time of entry of the merchandise, 
as defined in 19 CFR part 101.
    End Use means the actual manner in which Canadian-produced wheat 
was used, including, among other uses, milling, brewing, malting, 
distilling, manufacturing, or export.
    End user means the entity that uses Canadian-produced wheat for, 
among other uses, milling, brewing, malting, distilling, manufacturing, 
or other use, except resale.
    Entity means a legal entity including, but not limited to, an 
individual, joint stock company, corporation, association, partnership, 
cooperative, trust, and estate.
    Entry means that documentation required by 19 CFR part 142 to be 
filed with the appropriate U.S. Customs officer to secure the release 
of imported merchandise from U.S. Customs custody, or the act of filing 
that documentation.
    Importer means the person primarily liable for the payment of any 
duties on the merchandise, or an authorized agent acting on their 
behalf. The importer may be:
    (1) The consignee, or
    (2) The importer of record, or
    (3) The actual owner of the merchandise, if an actual owner's 
declaration and superseding bond has been filed in accordance with 19 
CFR part 141, or
    (4) The transferee of the merchandise, if the right to withdraw 
merchandise in a bonded warehouse has been transferred in accordance 
with 19 CFR part 144.
    Metric ton means a unit of measure that equals 2,204.6 pounds.
    Subsequent buyer means an entity other than the end user or 
importer which owns wheat originating in Canada.
    Workdays means days that the Federal government normally conducts 
business, which excludes Saturdays, Sundays, and Federal holidays.


Sec. 782.3  Administration.

    The end-use certificate program will be administered under the 
general supervision and direction of the Administrator, Consolidated 
Farm Service Agency (CFSA), U.S. Department of Agriculture (USDA), 
through the Office of the Deputy Administrator for Commodity Operations 
(DACO), CFSA, Washington, D.C., and the Kansas City Commodity Office 
(KCCO), CFSA, Kansas City, MO, in coordination with the Commissioner of 
Customs pursuant to a Memorandum of Understanding.


Sec. 782.4  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

    The information collection requirements contained in these 
regulations (7 CFR part 782) have been submitted to the Office of 
Management and Budget (OMB) in accordance with the provisions of 44 
U.S.C. 35 and will be assigned an OMB control number.

Subpart B--Implementation of the End-Use Certificate Program


Sec. 782.10  Identification of commodities subject to end-use 
certificate regulations.

    (a) The regulations in this part are applicable to wheat and 
barley, respectively, imported into the U.S. from any foreign country, 
as defined in 19 CFR 134.1, or instrumentality of such foreign country 
that, as of April 8, 1994, required end-use certificates for imports of 
U.S.-produced wheat or barley.
    (b) Because Canada is the only country with such requirements on 
wheat, and no country has an end-use certificate requirement for 
barley, only wheat originating in Canada is affected by the regulations 
in this part.


Sec. 782.11  Extent to which commodities are subject to end-use 
certificate regulations.

    (a) In the event that Canada eliminates the requirement for end-use 
certificates on imports from the U.S., the provisions of the 
regulations in this part shall be suspended 30 calendar days following 
the date Canada eliminates its end-use certificate requirement, as 
determined by the Secretary.
    (b) The provisions of the regulations in this part may be suspended 
if the Secretary, after consulting with domestic producers, determines 
that the program has directly resulted in the:
    (1) Reduction of income to U.S. producers of agricultural 
commodities, or
    (2) Reduction of the competitiveness of U.S. agricultural 
commodities in world export markets.


Sec. 782.12  Filing ASCS-750, End-Use Certificate for Wheat.

    (a) Each entity that imports wheat originating in Canada shall, for 
each entry into the U.S., obtain form ASCS-750, End-Use Certificate for 
Wheat, from Kansas City Commodity Office, Warehouse License and 
Contract Division, P.O. Box 419205, Kansas City, MO 64141-6205, and 
submit the completed original form ASCS-750 to KCCO within 10 workdays 
following the date of entry. Each form ASCS-750 shall set forth, among 
other things, the:
    (1) Name, address, and telephone number of the importer,
    (2) Customs entry number,
    (3) Date of entry,
    (4) Importer number,
    (5) Class of wheat being imported,
    (6) Quantity imported, in net metric tons, rounded to the nearest 
hundredth of a metric ton, per conveyance,
    (7) Storage location of the wheat,
    (8) Name, address, and telephone number of the end user, if known, 
[[Page 5091]] 
    (9) Mode of transportation and the name of the transportation 
company used to import the wheat, and
    (10) A certification that the identity of the Canadian-produced 
wheat will be preserved until such time as the wheat is either 
delivered to a subsequent buyer or end-user, or loaded onto a 
conveyance for direct delivery to an end user.
    (b) The original form ASCS-750 and one copy of form ASCS-750 shall 
be signed and dated by the importer.
    (c) Distribution of form ASCS-750 will be as follows:
    (1) The original shall be forwarded to Kansas City Commodity 
Office, Warehouse License and Contract Division, P.O. Box 419205, 
Kansas City, MO 64141-6205, by the importer,
    (2) One copy shall be retained by the importer,
    (3) The importer shall provide a photocopy to the end user or, if 
the wheat is purchased for purposes of resale, the subsequent buyer(s).
    (d) The completion and filing of an end-use certificate does not 
relieve the importer of other legal requirements, such as those imposed 
by other U.S. agencies, pertaining to the importation.


Sec. 782.13  Importer responsibilities.

    The importer shall:
    (a) File form ASCS-750 in accordance with Sec. 782.12.
    (b) Provide each subsequent buyer or end user with a copy of form 
ASCS-750 that was filed when the Canadian wheat entered the U.S.
    (c) Submit to KCCO, within 10 workdays following the date of sale, 
form ASCS-751, Wheat Consumption and Resale Report, in accordance with 
Sec. 782.15.


Sec. 782.14  Identity preservation.

    (a) The importer and all subsequent buyers of the imported wheat 
shall preserve the identity of the Canadian-produced wheat.
    (b) Canadian-produced wheat may only be commingled with U.S.-
produced wheat by the end user, or when loaded onto a conveyance for 
direct delivery to the end user or foreign country.
    (c) Failure to meet the requirements in paragraphs (a) and (b) of 
this section shall constitute noncompliance by the importer or 
subsequent buyer for the purposes of this part.


Sec. 782.15  Filing ASCS-751, Wheat Consumption and Resale Report.

    (a) For purposes of providing information relating to the 
consumption and resale of Canadian-produced wheat, form ASCS-751, Wheat 
Consumption and Resale Report, shall be filed with KCCO by each:
    (1) Importer and subsequent buyer, for each sale to a subsequent 
buyer or end user, within 10 workdays following the date of sale.
    (2) End user and exporter, for full and partial consumption or 
export, within 15 workdays following:
    (i) March 31,
    (ii) June 30,
    (iii) September 30, and
    (iv) December 31.
    (b) Each form ASCS-751 shall set forth, among other things, the:
    (1) Name, address, and telephone number of the filer,
    (2) Storage location of the wheat,
    (3) Name and address of the importer,
    (4) Form ASCS-750, End-Use Certificate for Wheat, serial number,
    (5) Class of wheat,
    (6) Date the wheat was received at the filer's facility,
    (7) Quantity of wheat received, in net metric tons, rounded to the 
nearest hundredth of a metric ton,
    (8) Certification to be completed by end users and exporters that 
requires the end user or exporter to provide, among other things:
    (i) A certification of compliance with these regulations,
    (ii) The quantity consumed or exported,
    (iii) The quantity remaining,
    (iv) The manner in which the commodity was used.
    (v) The signature of an authorized representative of the end user 
or exporter.
    (9) Certification to be completed by subsequent buyers and 
importers that requires the subsequent buyer or importer to provide, 
among other things:
    (i) A certification of compliance with the regulations in this 
part,
    (ii) The quantity resold,
    (iii) The name, address, and telephone number of the buyer, and
    (iv)The signature of an authorized representative of the subsequent 
buyer or importer.
    (c) End user and exporter shall submit form ASCS-751 to KCCO 
quarterly until the wheat has been fully utilized or exported in 
accordance with the regulations in this part.
    (d) Importers and subsequent buyers shall, for each individual 
sale, submit form ASCS-751 to KCCO until the imported wheat has been 
fully resold.


Sec. 782.16  Designating end use on form ASCS-751.

    (a) If the end use specified on the applicable form ASCS-751, Wheat 
Consumption and Resale Report, is ``export,'' the exporter must specify 
the final destination, by country, on form ASCS-751.
    (b) If the end user utilizes the wheat for purposes other than 
milling, brewing, malting, distilling, export, or manufacturing, such 
use must be specifically designated on form ASCS-751.


Sec. 782.17  Wheat purchased for resale.

    (a) This section applies to an importer or subsequent buyer who 
imports or purchases Canadian-produced wheat for the purpose of 
reselling the wheat.
    (b) The importer or subsequent buyer shall provide all purchasers 
of Canadian-produced wheat with a photocopy of the form ASCS-750 
submitted to KCCO by the importer in accordance with Sec. 782.12(a).


Sec. 782.18  Wheat purchased for export.

    (a) This section applies to an importer or subsequent buyer who 
imports or purchases Canadian-produced wheat for the purpose of export 
to a foreign country or instrumentality.
    (b) Wheat that is purchased for the purpose of export must be 
stored identity preserved while the importer or subsequent buyer 
maintains control of the wheat, except that such wheat may be 
commingled when loaded onto a conveyance for delivery to the foreign 
country or instrumentality.
    (c) Importers or subsequent buyers that purchase wheat for export 
to a foreign country or instrumentality must complete form ASCS-751 
quarterly, in accordance with Sec. 782.15.


Sec. 782.19  Penalty for noncompliance.

    It shall be a violation of 18 U.S.C. 1001 for any entity to engage 
in fraud with respect to, or to knowingly violate, the provisions set 
forth in this part.

Subpart C--Records and Reports


Sec. 782.20  Importer records and reports.

    (a) The importer shall retain a copy of each form:
    (1) ASCS-750, End-Use Certificate for Wheat, that is submitted to 
KCCO in accordance with Sec. 782.12(a); and
    (2) ASCS-751, Wheat Consumption and Resale Report, that is 
submitted to KCCO in accordance with Sec. 782.15(a)(1).
    (b) The importer shall maintain records to verify that the wheat 
was identity preserved until such time as the wheat was:
    (1) Loaded onto the conveyance for direct delivery to an end user, 
or
    (2) Delivered to an end user, or
    (3) Delivered to a subsequent buyer.
    (c) Copies of the documents, information, and records required in 
paragraphs (a) and (b) of this section shall be kept on file at the 
importer's [[Page 5092]] headquarters office or other location 
designated by the importer for the period specified in Sec. 782.25.


Sec. 782.21  End-user and exporter records and reports.

    (a) The end user or exporter shall retain a copy of each form ASCS-
751, Wheat Consumption and Resale Report, that is filed with KCCO in 
accordance with Sec. 782.15(a)(2).
    (b) The end user or exporter shall retain a copy of each form ASCS-
750, End-Use Certificate for Wheat, provided to the end-user or 
exporter in accordance with Sec. 782.17(b).
    (c) The exporter shall maintain records to verify that wheat 
purchased for the purpose of export was stored identity preserved until 
such time as the wheat was loaded onto a conveyance for delivery to the 
foreign country or instrumentality.
    (d) Copies of the documents required in paragraphs (a), (b), and 
(c) of this section shall be kept on file at the end-user's or 
exporter's headquarters office or other location designated by the end 
user or exporter for the period specified in Sec. 782.25.


Sec. 782.22  Subsequent buyer records and reports.

    (a) The subsequent buyer shall retain a copy of each form ASCS-751, 
Wheat Consumption and Resale Report, that is filed with KCCO in 
accordance with Sec. 782.15(a)(1).
    (b) The subsequent buyer shall retain a copy of each form ASCS-750, 
End-Use Certificate for Wheat, provided to the subsequent buyer in 
accordance with Sec. 782.17(b).
    (c) The subsequent buyer shall maintain records to verify that the 
wheat specified on the end-use certificate was identity preserved 
during the time that the subsequent buyer maintained control of the 
wheat, or until the wheat was loaded onto a conveyance for direct 
delivery to an end user.
    (d) Copies of the documents and records required in paragraphs (a) 
through (c) of this section shall be kept on file at the subsequent 
buyer's headquarters office or other location designated by the 
subsequent buyer for the period specified in Sec. 782.25.


Sec. 782.23  Failure to file end-use certificates or consumption and 
resale reports.

    Failure by importers, end users, exporters, and subsequent buyers 
to file form ASCS-750, End-Use Certificate for Wheat, and form ASCS-
751, Wheat Consumption and Resale Report, as applicable, and retain or 
maintain related copies and records shall constitute noncompliance for 
the purposes of Sec. 782.19.


Sec. 782.24  Recordkeeping and examination of records.

    (a) Examination. For the purpose of verifying compliance with the 
requirements of this part, each importer, end-user, exporter, and 
subsequent buyer shall make available at one place at all reasonable 
times for examination by representatives of USDA, all books, papers, 
records, contracts, scale tickets, settlement sheets, invoices, written 
price quotations, or other documents related to the importation of the 
Canadian-produced wheat that is within the control of such entity.
    (b) Orderly retention of records. To facilitate examination and 
verification of the records and reports required by this part, copies 
of form ASCS-750, End-Use Certificate for Wheat, and form ASCS-751, 
Wheat Consumption and Resale Report, shall be filed in an orderly 
manner, and must be made available for inspection by representatives of 
USDA.


Sec. 782.25  Length of time records are to be kept.

    The records required to be kept under this part shall be retained 
for 3 years following the filing date of the applicable record. Records 
shall be kept for such longer period of time as may be requested in 
writing by USDA representatives.

    [Note: The following forms will not appear in the Code of 
Federal Regulations.]

    Signed at Washington, DC on January 19, 1995.
Grant Buntrock,
Acting Administrator, Consolidated Farm Service Agency.

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General Information

     The United States Department of Agriculture (USDA) 
provides end-use certificates for persons requiring such certificates 
for the importation of Canadian-produced wheat into the United States.
     Regulations regarding the End-Use Certificate Program can 
be found at 7 CFR Part 782. Copies of these regulations can be obtained 
from the Kansas City Commodity Office (KCCO) at the address shown 
below.
     Form ASCS-750, End-Use Certificate for Wheat, is required 
for each entry of Canadian-produced wheat, and must be submitted by the 
importer to KCCO at the address shown below within 10 workdays 
following the date of entry.
     Copies of forms ASCS-750, End-Use Certificate for Wheat, 
and ASCS-751, Wheat Consumption and Resale Report, can be obtained from 
KCCO at the address shown below.
     Wheat covered by an end-use certificate must be stored 
identity preserved, and may not be commingled or blended with U.S.-
produced wheat until such time as the Canadian-produced wheat is either 
delivered to an end user, or loaded onto a conveyance for direct 
delivery to an end user.
     When wheat covered by this end-use certificate is sold to 
subsequent buyers or end users, the importer and all subsequent buyers 
must also:

--provide purchasers with copies of the front and reverse sides of this 
form.
--submit form ASCS-751, Wheat Consumption and Resale Report, within 10 
workdays of the date of each individual sale to a subsequent buyer or 
end user, to KCCO at the address shown below.

     When wheat covered by this end-use certificate is sold to 
an end user, the end user must submit form ASCS-751, Wheat Consumption 
and Resale Report, to KCCO at the address shown below, to report 
consumption of the Canadian-produced wheat. Reports from the end user 
must be submitted within 15 workdays following March 31, June 30, 
September 30, and December 31.
     If wheat covered by this end-use certificate will be 
exported to a foreign country, the exporter must store the Canadian-
produced wheat identity preserved until the wheat is loaded onto a 
conveyance for delivery to the foreign country. Exporters must submit 
form ASCS-751, Wheat Consumption and Resale Report, to KCCO at the 
address shown below, to report the exportation of Canadian-produced 
wheat. Reports from exporters must be submitted within 15 workdays 
following March 31, June 30, September 30, and December 31.
     The reports and records of all parties that, at any point 
in time had control of wheat covered by an end-use certificate are 
subject to inspection by a representative of USDA.
    Address for KCCO: Kansas City Commodity Office, Warehouse License 
and Contract Division, P.O. Box 419205, Kansas City, MO 64141-6205.

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General Information

     The United States Department of Agriculture (USDA) 
provided End-Use Certificates for Wheat (ASCS-750) for persons required 
to submit these certificates for the importation of Canadian-produced 
wheat into the United States.
     Regulations governing the End-Use Certificate Program can 
be found at 7 CFR Part 782.
     Wheat covered by an End-Use Certificate for Wheat must be 
stored identity preserved until such time as the wheat is (1) Delivered 
to an end user, or (2) loaded onto a conveyance for delivery to an end 
user for foreign country.
     Copies of ASCS-751, Wheat Consumption and Resale Report 
can be obtained from the Kansas City Commodity Office, Warehouse 
License and Contract Division, P.O. Box 419205, Kansas City, MO 64141-
6205.
     ASCS-751, Wheat Consumption and Resale Report must be 
filed by each end user, subsequent buyer, exporter, and importer.
     All filers must complete Section A, General Information.
     End users and exporters must complete Section B, 
Certification by End Users and Exporters.
     Subsequent buyers and importers must complete Section C, 
Certification by Subsequent Buyers and Importers.
     End users and exporters file form ASCS-751 to report 
quarterly consumption and exports. Reports are due from end users and 
exporters within 15 workdays following March 31, June 30, September 30, 
and December 31.
     Subsequent buyers and importers must file form ASCS-751 
for each individual sale. Reports are due from subsequent buyers and 
importers within 10 workdays following the date of the sale.

[FR Doc. 95-1866 Filed 1-25-95; 8:45 am]
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