[Federal Register Volume 60, Number 162 (Tuesday, August 22, 1995)]
[Proposed Rules]
[Pages 43566-43567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20780]



      
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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 60, No. 162 / Tuesday, August 22, 1995 / 
Proposed Rules  


[[Page 43566]]


DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 17


Regulations Governing the Financing of Commercial Sales of 
Agricultural Commodities

AGENCY: Foreign Agricultural Service, USDA.

ACTION: Proposed rule.

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SUMMARY: The Foreign Agricultural Service (FAS) proposes to amend the 
regulations applicable to the financing of the sale and exportation of 
agricultural commodities pursuant to title I of the Agricultural Trade 
Development and Assistance Act of 1954, as amended (Pub. L. 480). The 
proposed amendments would delete one document from the list of those 
documents currently required to be submitted by the commodity supplier 
to the banking institution to support a request for payment; and would 
delete the contracting and documentary requirements for commodities 
which have not been shipped under the program for a number of years.
    The purpose of these changes is to reduce the paperwork burden on 
commodity suppliers and to simplify and shorten the regulations.

DATES: Written comments should be submitted on or before September 21, 
1995.

ADDRESSES: Comments should be sent to Mary T. Chambliss, Deputy 
Administrator, Foreign Agricultural Service, U.S. Department of 
Agriculture, room 4077 South Building, 14th and Independence SW., 
Washington, DC 20250-1031.

FOR FURTHER INFORMATION CONTACT: Connie B. Delaplane, Director, P.L. 
480 Operations Division, Export Credits, Foreign Agricultural Service, 
U.S. Department of Agriculture, Room 4549 South Building, 14th and 
Independence, SW., Washington, DC 20250-1033. Telephone: (202) 720-
3664.

SUPPLEMENTARY INFORMATION: The proposed 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 Management and Budget (OMB).

Regulatory Flexibility Act

    This proposed rule has been reviewed with regard to the 
requirements of the Regulatory Flexibility Act. The General Sales 
Manager has certified that this rule will not have a significant 
economic impact on a substantial number of small entities because it 
simply removes from the regulations information regarding a number of 
inactive commodities and eliminates one document currently required to 
be submitted by commodity suppliers seeking payment. There will be no 
significant economic impact from this proposal on small or large 
entities. A copy of this proposed rule has been submitted to the 
General Counsel, Small Business Administration.

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 the Notice related to 7 CFR part 3015, subpart, V, 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12778

    The proposed rule has been reviewed under the Executive Order 
12778, Civil Justice Reform. The proposed 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 proposed rule would not have retroactive 
effect. The rule does not require that administrative remedies be 
exhausted before suit may be filed.

Background

    Under title I of the Agricultural Trade Development and Assistance 
Act of 1954, as amended (Pub. L. 480), the Commodity Credit Corporation 
(CCC) is authorized to finance the sale and exportation of agricultural 
commodities purchased by foreign countries. The Pub. L. 480, title I 
Financing Regulations (``the regulations'') specify the documents which 
the commodity supplier must present to support a request for payment.
    Appendix A (``Contracting Requirements'') and Appendix B 
(``Documentary Requirements'') of the regulations specify the basic 
contracting and documentary requirements for a number of commodities 
which have been shipped under the program since its inception. Many of 
these commodities have not been programmed for a number of years, and 
the contracting and documentary requirements are out-of-date.

Form CCC-106-1 and 106-3 (Commodity Supplier)

    CCC issues Form CC-106, ``Advice of Vessel Approval,'' to provide 
written approval for each commodity shipment. The form includes the 
name of the vessel and its flag; the ocean freight rate; and the amount 
of the ocean transportation which will be financed by CCC. Suppliers of 
commodities must submit a completed Form CCC-106 to support all claims 
for payment while suppliers of ocean transportation must do so only 
when CCC finances any part of the ocean transportation and when 
shipments are contracted basis delivery f.a.s. (``fee alongise'') or 
f.o.b. (``free on board'') vessel. CCC uses the form to insure 
compliance with the requirements of the Cargo Preference Act regarding 
the tonnage to be shipped on U.S.-flag vessels and to specify the 
amount of the ocean transportation which CCC will finance.
    FAS proposes to remove the requirement that Form CCC-106 be 
submitted as a payment document by the commodity supplier for sales 
made on an f.a.s. or f.o.b. basis. Under these contract terms, 
commodity and freight contracts are separate, and the commodity 
supplier has no control over the vessel to be used.
    If commodity sales are made on a ``cost and freight'' (c. & f.) or 
``cost, insurance and freight'' (c.i.f.) basis, however, the commodity 
supplier would still be required to submit a completed Form CCC-106 
since the commodity supplier would also control the ocean freight.
    The proposed amendments also delete references to the colors of the 
various forms because the forms are now computer-generated and colored 
carbon-set forms are no longer used.

[[Page 43567]]


Appendices A and B

    A number of the commodities referred to in these appendices have 
not been used in the program for more than five years, and some for 
more than 20 years. To simplify and shorten the regulations and reduce 
printing and distribution costs, FAS proposes to delete the sections of 
these appendices for the following commodities: Corn meal; cracked 
corn; unmanufactured tobacco and tobacco products; dry edible beans; 
dry edible peas; lard; poultry; canned milk; nonfat dry milk, dry whole 
milk; butter, anhydrous milk fat, anhydrous butter fat and butteroil; 
cheese; ghee; and stabilized dried whole eggs.
    Removing these sections from the regulations does not affect the 
potential for future programming of these commodities under the title I 
program. If any of the commodities removed from the appendices were to 
be programmed under title I in the future, the relevant purchase 
authorization would contain the updated contracting and documentary 
requirements.

Paperwork Reduction Act

    The reporting and recordkeeping requirements contained in this 
proposed rule have been assigned OMB control number 0551-0005. This 
proposed rule does not impose a public reporting burden. Send comments 
regarding this burden estimate or any other aspect of this collection 
of information, including suggestions for further reducing this burden, 
to Department of Agriculture, Clearance Officer, OIRM, AGBOX 7630, 
Washington, DC 20250-7630; and to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Paperwork 
Reduction Project (OMB #0551-0005), Washington, DC 20503.

List of Subjects in 7 CFR Part 17

    Agricultural commodities; exports; finance; maritime carriers.
    Accordingly, 7 CFR part 17, subpart A, is amended as follows:
    1. The authority citation for part 17 continues to read as follows:

    Authority: 7 U.S.C. 1701-1705, 1736a, 1736c, 5676; E.O. 12220, 
45 FR 44245.


Sec. 17.2  [Amended]

    2. In Sec. 17.2(b), the definition of ``Form CCC-106'' is amended 
by removing the last sentence.
    3. In Sec. 17.14, the word ``(white)'' is removed from the first 
sentence of paragraph (d)(1); the last sentence of paragraph (d)(1) and 
all of paragraph (d)(2)(i) are revised to read as follows; and the work 
``(yellow)'' is removed from paragraph (d)(2)(ii), as follows:


Sec. 17.14  Ocean transportation.

* * * * *
    (d) Advice of vessel approval. * * *
    (1) For cotton. * * * If CCC finances any part of the ocean freight 
when cotton is shipped on an f.a.s. basis, a signed original copy of 
this form will be issued to the ocean carrier.
    (2) For commodities other than cotton. * * *
    (i) For shipments to be made on an f.o.b. or f.a.s. basis, when CCC 
finances any part of the cost of ocean freight, the original of Form 
CCC-106-2 will be issued to the ocean carrier.
* * * * *


Sec. 17.18  [Amended]

    4. In Sec. 17.18, the phrase ``for c. & f. or c.i.f. sales'' is 
added at the end of paragraph (c)(8)(ii).


Appendices A and B  [Amended]

    5. In Appendix A and Appendix B, existing sections (D), (E), (G), 
(I), (J), (L), (M), (N), (O), (P), (Q), (R), (S), (T), and (U) are 
removed; existing section (K) is redesignated as (G); existing section 
(V) is redesignated as (D); and existing section (W) is redesignated as 
(E).
    6. In Appendix B, ``Documentary Requirements,'' the phrase ``for c. 
& f. or c.i.f. sales'' is added at the end of the following paragraphs: 
(A) (1)(d) and (2)(d); (B)(4); (C) (1)(d) and (2)(d); newly 
redesignated (D)(4) and (E)(4); (F) (1)(d) and (2)(d); newly 
redesignated (G) (1)(d) and (2)(d); and (H) (1)(d) and (2)(d).

    Signed at Washington, D.C. on June 12, 1995.
Christopher E. Goldthwait,
General Sales Manager, Foreign Agricultural Service; and Vice 
President, Commodity Credit Corporation.
[FR Doc. 95-20780 Filed 8-21-95; 8:45 am]
BILLING CODE 3410-10-M