[Federal Register Volume 61, Number 224 (Tuesday, November 19, 1996)]
[Rules and Regulations]
[Pages 58779-58780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29419]


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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

7 CFR Part 1485

RIN 0551-AA24


Agreements for the Development of Foreign Markets for 
Agricultural Commodities

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule revises regulations governing the Market Promotion 
Program to conform to section 244(b) of the Federal Agriculture 
Improvement and Reform Act of 1996. This rule changes the name of the 
program to the Market Access Program and amends the eligibility 
criteria for participation in the program.

EFFECTIVE DATE: November 19, 1996.

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

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule is issued in conformance with Executive Order 
12866. Based on information compiled by the Department, it has been 
determined that this rule is ``significant''.

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

    This final rule does not impose any new reporting or record keeping 
requirements. The information collection requirements for participating 
in the MAP were previously approved for use by the Office of Management 
and Budget under OMB control number 0551-0027.

Executive Order 12372

    This final 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 final 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.

Background

    Section 244 of the Federal Agricultural Improvement and Reform Act 
of 1996 (``1996 Act'') amended the Market Promotion Program authorized 
by section 203 of the Agricultural Trade Act of 1978, 7 U.S.C. 5623. 
The Market Promotion Program is a Commodity Credit Corporation 
(``CCC'') program to encourage the development, maintenance and 
expansion of foreign markets for agricultural commodities. Section 
244(a) of the 1996 Act changed the name of the program to the Market 
Access Program (``MAP'') and this rule revises the existing regulations 
to reflect that name change.
    Section 244(b) of the 1996 Act changed the statutory eligibility 
criteria for new participants in the Market Access Program. MAP funds 
may not be used to provide direct assistance to any foreign for-profit 
firm for its use in promoting foreign-produced products. Secondly, MAP 
funds may not be used to provide direct assistance to any for-profit 
firm that is not recognized as a small business concern described in 
section 3(a) of the Small Business Act, 15 U.S.C. 632(a), other than 
cooperatives, associations authorized under 7 U.S.C. 291, i.e., Capper-
Volstead associations, and nonprofit trade associations. Finally, 
section 244(b) of the 1996 Act requires that beneficiaries of branded 
promotion

[[Page 58780]]

activities at least match the amount of assistance provided under the 
MAP. Since current regulations do not permit direct assistance to 
foreign firms and require that participants at least match the amount 
of CCC funds received for brand promotion activities, CCC need not 
change the regulations to implement these statutory changes. It is, 
however, necessary to change the regulations to reflect the new 
requirement regarding small business concerns.
    This rule revises Sec. 1485.12(b), referring to the eligibility for 
EIP/MAP agreements, to add a requirement that any for-profit firm 
seeking to participate must be a small-sized entity. For-profit firms 
only participate directly in the EIP/MAP and a revision of 
Sec. 1485.12(a) regarding MAP agreements is, therefore, not necessary. 
Currently, the regulations require that an entity participating in the 
EIP/MAP must be a ``U.S. commercial entity'' which is defined as an 
agricultural cooperative or for-profit firm. This rule revises that 
definition to specifically include ``producer associations authorized 
by 7 U.S.C. 291'' in addition to cooperatives and for-profit firms. 
This is not a substantive change and is only intended to eliminate any 
doubts concerning the characterization of these producer associations 
under the EIP/MAP. Section 1485.12(b) is revised to specify that ``for-
profit firms, other than cooperatives and producer associations 
authorized by 7 U.S.C. 291'' must be small-sized entities. It is not 
necessary to specifically exempt nonprofit trade associations from the 
size limitations, because the size limitation is only applicable to 
for-profit firms. The regulations continue to use the term ``small-
sized entity'' which is defined as ``a U.S. commercial entity which 
meets the small business size standard published at 13 CFR part 121'' 
and is compatible with the new legislation.

Effective Date

    The 1996 Act's changes to the MPP were effective on the date of 
enactment of that act, April 4, 1996. This rule is published as a final 
rule and effective on the date of publication because the program name 
change is matter of agency management and the regulatory change 
regarding eligibility requirements merely incorporates the new 
statutory requirements. Therefore, public comments regarding these 
changes are unnecessary.

List of Subjects in 7 CFR Part 1485

    Agricultural commodities, Exports.

    Accordingly, 7 CFR part 1485 is amended as follows:

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.

    2. In part 1485, all references to ``Market Promotion Program'' are 
revised to read ``Market Access Program.''
    3. In part 1485, all references to ``MPP'' are revised to read 
``MAP.''
    4. In part 1485, all references to ``EIP/MPP'' are revised to read 
``EIP/MAP''.
    5. Section 1485.11(ff) is revised to read as follows:


Sec. 1485.11  Definitions

* * * * *
    (ff) U.S. commercial entity--an agricultural cooperative, producer 
association authorized by 7 U.S.C. 291, or for-profit firm located and 
doing business in the United States, and engaged in the export or sale 
of an agricultural commodity.
* * * * *
    6. Section 1485.12(b) is revised to read as follows:


Sec. 1485.12  Participation Eligibility

* * * * *
    (b) To participate in the EIP/MAP, an entity:
    (1) Shall be a U.S. commercial entity that either owns the brand(s) 
of the agricultural commodity to be promoted or has the exclusive 
rights to use such brand(s);
    (2) Shall contribute at least 50 percent of the total cost of the 
brand promotion; and
    (3) That is a for-profit firm, other than a cooperative or producer 
association authorized by 7 U.S.C. 291, shall be a small sized entity.
* * * * *
    Signed at Washington, DC, on this 11th day of November 1996.
August Schumacher, Jr.,
Administrator, Foreign Agricultural Service and Vice President, 
Commodity Credit Corporation.
[FR Doc. 96-29419 Filed 11-18-96; 8:45 am]
BILLING CODE 3410-10-M