[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] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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