[Federal Register Volume 62, Number 87 (Tuesday, May 6, 1997)]
[Rules and Regulations]
[Pages 24560-24561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11693]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1493 and 1494


Revised Definition of U.S. Agricultural Commodity for Commercial 
Export Programs

AGENCY: Commodity Credit Corporation (CCC), USDA.

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) is amending its 
commercial export program regulations to change the definition of the 
term ``U.S. agricultural commodity.'' These changes are to conform the 
applicable regulations with a provision of the Federal Agriculture 
Improvement and Reform Act of 1996. This final rule is applicable to 
the Export Enhancement Program (EEP), the Dairy Export Incentive 
Program (DEIP), CCC's Export Credit Guarantee Program (GSM-102), CCC's 
Intermediate Export Credit Guarantee Program (GSM-103), and the 
Supplier Credit Guarantee Program (SCGP). The revised definition 
contains two subparagraphs. The first subparagraph is similar to the 
current definition of U.S. agricultural commodity. The second 
subparagraph applies only to a product of an agricultural commodity 
that the Secretary designates as a high value product. Under the 
applicable statute and the revised definition, if this designation is 
made, to qualify as a U.S. agricultural commodity 90 percent or more of 
the agricultural components of the product (by weight, excluding 
packaging and water) must be entirely produced in the United States.

EFFECTIVE DATE: June 5, 1997.

FOR FURTHER INFORMATION CONTACT: L.T. McElvain, Director, CCC 
Operations Division, Foreign Agricultural Service, U.S. Department of 
Agriculture, Stop 1035, Washington D.C., 20250-1035; Fax (202) 720-
2949; Telephone (202) 720-6211. The U.S. Department of Agriculture 
(USDA) prohibits discrimination in its programs on the basis of race, 
color, national origin, sex, religion, age disability, political 
beliefs and marital or familial status. Persons with disabilities who 
require alternative means for communication of program information 
(braille, large print, audiotape, etc.) should contact the USDA Office 
of Communications at (202) 720-5881 (voice) or (202) 720-7808 (TDD).

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule is issued in conformance with Executive Order 
12866. It has been determined to be neither significant nor 
economically significant for the purposes of E.O. 12866 and, therefore, 
has not been reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

    It has 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.

Executive Order 12372

    These programs are 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).

Environmental Evaluation

    The Foreign Agricultural Service (FAS) is excluded from the 
requirements of preparing procedures to implement the National 
Environmental Policy Act and is categorically excluded from the 
preparation of an Environmental Assessment or Environmental Impact 
Statement unless the Administrator of FAS determines that an action may 
have a significant environmental effect 7 CFR 1b.4(b)(7). The 
Administrator has made no such determination with respect to this 
action.

Paperwork Reduction Act

    The amendments to 7 CFR parts 1493 and 1494 set forth in this final 
rule do not contain information collections that require clearance by 
the OMB under the provisions of 44 U.S.C. 35.

Executive Order 12778

    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. The final rule would not 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 rule would not have retroactive effect.
    The Department of Agriculture is committed to carrying out its 
statutory and regulatory mandates in a manner that best serves the 
public interest. Therefore, where legal discretion permits, the 
Department actively seeks to promulgate regulations that promote 
economic growth, create jobs, are minimally burdensome, and are easy 
for the public to understand, use or comply with. In short, the 
Department is committed to issuing regulations that maximize net 
benefits to society and minimize costs imposed by those regulations.

Background

    The Federal Agriculture Improvement and Reform Act of 1996 (Pub. L. 
104-127) (``1996 Act'') became effective on April 4, 1996. Section 243 
(c) of the 1996 Act amended the definition of ``United States 
agricultural commodity'' set forth in section 102(7) of the 
Agricultural Trade Act of 1978. The new definition of a United States 
agricultural commodity reads as follows: ``(A) an agricultural 
commodity or product entirely produced in the United States; or (B) a 
product of an agricultural commodity--(i) 90 percent, or more of the 
agricultural components of which by weight, excluding packaging and 
added water, is entirely produced in the United States; and (ii) that 
the Secretary determines to be a high value agricultural product.''
    This amendment did not affect that part of the definition 
specifically concerning fish. As before, for purposes of Section 
102(7), fish entirely produced in the United States include fish 
harvested by a documented fishing vessel as defined in title 46, United 
States Code, in waters that are not waters (including the territorial 
sea) of a foreign country.
    The revised definition is applicable to the Export Enhancement 
Program (EEP), 7 CFR part 1494, subpart B; the Dairy Export Incentive 
Program (DEIP), 7 CFR part 1494, subpart D; CCC's Export Credit 
Guarantee Program (GSM-102), 7 CFR part 1493, subpart B; CCC's 
Intermediate Export Credit Guarantee Program (GSM-103), 7 CFR part 
1493, subpart B; and the Supplier Credit Guarantee Program (SCGP), 7 
CFR part 1493, subpart D. Pursuant to 7 CFR part 1494, subpart D, the 
operational regulations of the EEP found at 7 CFR 1493, subpart B, also 
apply to the DEIP. Therefore, the changes made by this final rule are 
applicable to the DEIP via a change to the EEP regulations.
    This final rule amends each of the above regulations to include the 
revised statutory definition of a United States agricultural commodity 
and to make conforming changes to the applicable certifications made by 
exporters. Such certifications are made by exporters at

[[Page 24561]]

the time of making offers (in EEP and DEIP) and at the time of 
submitting applications for payment guarantees and evidence of export 
reports in the GSM-102/103 and SCGP. CCC is proceeding directly through 
a final rule because the regulatory amendments are required by the 
statutory change.
    On the effective date of this rule, CCC's Notices to Participants 
Numbers GSM FY 96-2, EEP FY 96-4, DEIP FY 96-4, COAP/SOAP FY 96-3, and 
SCGP FY 96-1, issued on July 18, 1996, are superseded. Under these 
Notices to Participants, exporters of designated high value products 
were to make separate certifications that conformed to the new 
definition of United States Agricultural Commodity.

List of Subjects

7 CFR Part 1493

    Administrative practice and procedures, Agricultural commodities, 
Credit, Exports, Financing, Guarantees, Reporting and recordkeeping 
requirements.

7 CFR Part 1494

    Administrative practice and procedure, Agricultural commodities, 
Exports, Government contracts, Reporting and recordkeeping 
requirements.

    Accordingly, 7 CFR parts 1493 and 1494 are amended as follows:

PART 1493--CCC EXPORT CREDIT GUARANTEE PROGRAMS

Subpart B--CCC Export Credit Guarantee Program (GSM-102) and CCC 
Intermediate Export Credit Guarantee Program (GSM-103) Operations

    1. The authority citation for 7 CFR part 1493 continues to read as 
follows:

    Authority: 7 U.S.C. 5602, 5622, 5661, 5662, 5663, 5664, 5676; 15 
U.S.C. 714b(d), 714c(f).

    2. Section 1493.20 is amended by revising paragraph (z) to read as 
follows:


Sec. 1493.20  Definition of terms.

* * * * *
    (z) U.S. agricultural commodity. (1) An agricultural commodity or 
product entirely produced in the United States; or
    (2) A product of an agricultural commodity--
    (i) 90 percent or more of the agricultural components of which by 
weight, excluding packaging and added water, is entirely produced in 
the United States; and
    (ii) That the Secretary determines to be a high value agricultural 
product. For purposes of this definition, fish entirely produced in the 
United States include fish harvested by a documented fishing vessel as 
defined in title 46, United States Code, in waters that are not waters 
(including the territorial sea) of a foreign country.
* * * * *
    3. Section 1493.50 is amended by revising paragraph (a) to read as 
follows:


Sec. 1493.50  Certification requirements for obtaining payment 
guarantee.

* * * * *
    (a) The agricultural commodity or product to be exported under the 
payment guarantee is a U.S. agricultural commodity as defined by 
Sec. 1493.20(z).
* * * * *
    4. Section 1493.90 is amended by revising paragraph (a) to read as 
follows:


Sec. 1493.90  Certification requirements for the evidence of export.

* * * * *
    (a) The agricultural commodity or product exported under the 
payment guarantee is a U.S. agricultural commodity as defined by 
Sec. 1493.20(z).
* * * * *
    5. Section 1493.410 is amended by revising paragraph (x) to read as 
follows:


Sec. 1493.410  Definition of terms.

* * * * *
    (x) U.S. agricultural commodity.
    (1) An agricultural commodity or product entirely produced in the 
United States; or
    (2) A product of an agricultural commodity--
    (i) 90 percent or more of the agricultural components of which by 
weight, excluding packaging and added water, is entirely produced in 
the United States; and
    (ii) That the Secretary determines to be a high value agricultural 
product. For purposes of this definition, fish entirely produced in the 
United States include fish harvested by a documented fishing vessel as 
defined in title 46, United States Code, in waters that are not waters 
(including the territorial sea) of a foreign country.
* * * * *
    6. Section 1493.440 is amended by revising paragraph (a) to read as 
follows:


Sec. 1493.440  Certification requirements for a payment guarantee.

    (a) The agricultural commodity or product to be exported under the 
payment guarantee is a U.S. agricultural commodity as defined by 
Sec. 1493.410(x).
    7. Section 1493.480 is amended by revising paragraph (a) to read as 
follows:


Sec. 1493.480  Certification requirements for the evidence of export.

* * * * *
    (a) The agricultural commodity or product exported under the 
payment guarantee is a U.S. agricultural commodity as defined by 
Sec. 1493.410(x).
* * * * *

PART 1494--EXPORT BONUS PROGRAMS

Subpart B--Export Enhancement Program Operations

    1. The authority citation for 7 CFR part 1994, subpart B, continues 
to read as follows:

    Authority: 7 U.S.C. 5602, 5651, 5661, 5662, 5676; 15 U.S.C. 
714c.

    2. Section 1494.201 is amended by revising paragraph (gg) to read 
as follows:


Sec. 1494.201  Definition of terms.

* * * * *
    (gg) U.S. agricultural commodity. (1) An agricultural commodity or 
product entirely produced in the United States; or
    (2) A product of an agricultural commodity--
    (i) 90 percent or more of the agricultural components of which by 
weight, excluding packaging and added water, is entirely produced in 
the United States; and
    (ii) That the Secretary determines to be a high value agricultural 
product. For purposes of this definition, fish entirely produced in the 
United States include fish harvested by a documented fishing vessel as 
defined in title 46, United States Code, in waters that are not waters 
(including the territorial sea) of a foreign country.
    3. Section 1494.501 is amended by revising paragraph (c)(20)(xi) to 
read as follows:


Sec. 1494.501  Submission of offers to CCC.

* * * * *
    (c) * * *
    (20) * * *
    (xi) The agricultural commodity or product to be exported under an 
EEP Agreement is a U.S. agricultural commodity as defined by 
Sec. 1494.201(gg).
* * * * *
    Signed at Washington, DC, on April 10, 1997.
Christopher E. Goldthwait,
General Sales Manager and Vice President, Commodity Credit Corporation.
[FR Doc. 97-11693 Filed 5-5-97; 8:45 am]
BILLING CODE 3410-10-M