[Federal Register Volume 63, Number 214 (Thursday, November 5, 1998)]
[Rules and Regulations]
[Pages 59691-59692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29588]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 214 / Thursday, November 5, 1998 / 
Rules and Regulations  

[[Page 59691]]


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DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 17

RIN 0551-AA54


Regulations Governing the Financing of Commercial Sales of 
Agricultural Commodities

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule revises 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 rule would permit a waiver of the 
present requirement that only private entities with a business office 
or agent in the United States are eligible to enter into title I, Pub. 
L. 480 agreements when the General Sales Manager determines that there 
is adequate assurance of repayment to CCC. This change would allow 
additional foreign private entities to participate in title I, and 
thereby increase exports of U.S. agricultural commodities.

DATES: This rule is effective November 5, 1998.

ADDRESSES: Comments should be sent to Grant Pettrie, Acting Director, 
Program Development Division, Foreign Agricultural Service, U.S. 
Department of Agriculture, Room 4506, South Building, Stop 1034, 
Washington, DC 20250-1034.

FOR FURTHER INFORMATION CONTACT: Acting Director, Program Development 
Division, Foreign Agricultural Service, U.S. Department of Agriculture, 
Room 4506, South Building, Stop 1034, Washington, DC 20250-1034; 
telephone: (202) 720-4221; Facsimile: (202) 690-0251.

SUPPLEMENTARY INFORMATION: This rule is issued in conformance with 
Executive Order 12866. Based on information compiled by the Department, 
it has been determined that this rule:
    (1) Would have an annual effect on the economy of less than $100 
million;
    (2) Would not adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities;
    (3) Would not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency;
    (4) Would not alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or rights and obligations of recipients 
thereof; and
    (5) Would not raise novel legal or policy issues arising out of 
legal mandates, the President's priorities, or principles set forth in 
Executive Order 12866.

Regulatory Flexibility Act

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act. The Vice President, CCC, who is the General 
Sales Manager, has certified that this rule will not have a significant 
economic impact on a substantial number of small entities. Under title 
I, Pub. L. 480 CCC enters into agreements with foreign governments or 
private entities to finance their purchase and importation of U.S. 
agricultural commodities. The rule would allow a waiver of an existing 
program requirement that restricts the eligibility of businesses in 
foreign countries to enter into these agreements with CCC. A copy of 
this 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).

Paperwork Reduction Act

    The information collection requirements imposed by this rule have 
been previously submitted to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). OMB 
has assigned control number 0551-0005 for this information collection. 
This rule would not require the collection of additional information.

Executive Order 12988

    This rule has been reviewed under Executive order 12988, Civil 
Justice Reform. The 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 final rule does not have a retroactive effect. The rule does not 
require that administrative remedies be exhausted before suit may be 
filed.

Background

    Title I of the Agricultural Trade Development and Assistance Act of 
1954, as amended (Pub. L. 480) authorizes CCC to finance the sale and 
exportation of agricultural commodities on concessional credit terms, 7 
U.S.C. 1701 et seq. CCC may enter into title I, Pub. L. 480 agreements 
with private entities. Current regulations provide that, in order to be 
eligible for a title I, Pub. L. 480 agreement, a private entity must 
maintain a bona fide business office in the United States and have a 
person, principal, or agent on whom service of judicial process may be 
had in the United States.
    On August 7, 1998, CCC published a proposed rule (63 FR 42283) that 
would allow the General Sales Manager to waive this requirement if the 
foreign private entity provides adequate assurances of repayment to CCC 
for the financing extended to it under the Pub. L. 480 agreement.
    The purpose of the proposed rule was to allow CCC more flexibility 
in programming in order to take advantage of viable export 
opportunities. CCC did not receive any comments on the proposed rule 
and is adopting it as a final rule without change.

List of Subjects in 7 CFR Part 17

    Agricultural commodities, Exports, Finance, Maritime carriers.
    Accordingly, this rule amends part 17 of 7 CFR As follows:

[[Page 59692]]

Part 17--Sales of Agricultural Commodities Made Available Under 
Title I of the Agricultural Trade Development and Assistance Act of 
1954, as Amended

    1. The authority citation for part 17 continues to read as follows:

    Authority: 7 U.S.C. 1701-1704, 1731-1736b, 1736f, 5676,; E.O. 
12220, 45 FR 44245.
    2. Section 17.1(b)(3) is revised to read as follows:


Sec. 17.1  General.

* * * * *
    (b) * * *
    (3) A private entity must maintain a bona fide business office in 
the United States and have a person, principal, or agent on whom 
service of judicial process may be had in the United States unless the 
General Sales Manager determines that there are adequate assurances of 
repayment to CCC for the financing extended by CCC.
* * * * *
    Signed at Washington, DC, on October 14, 1998.
Lon Hatamiya,
Administrator, Foreign Agricultural Service and Vice President, 
Commodity Credit Corporation.
[FR Doc. 98-29588 Filed 11-4-98; 8:45 am]
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