[Federal Register Volume 63, Number 215 (Friday, November 6, 1998)]
[Rules and Regulations]
[Pages 59876-59878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29725]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1499

RIN 0551-AA56


Foreign Donation of Agricultural Commodities

AGENCY: Commodity Credit Corporation, USDA

ACTION: Final rule.

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SUMMARY: This rule amends Commodity Credit Corporation (CCC) 
regulations governing foreign donations of agricultural commodities. 
This rule contains changes, corrections and clarifications to the 
regulations to achieve more effective management of foreign donations 
of agricultural commodities.

EFFECTIVE DATE: November 6, 1998.

FOR FURTHER INFORMATION CONTACT: Mr. Ira D Branson, Director, Commodity 
Credit Corporation Program Support Division, Foreign Agricultural 
Service, United States Department of Agriculture, 1400 Independence 
Ave., S.W., Stop 1031; Washington, D.C. 20250-1031; telephone (202) 
720-3573.

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) Will have an annual effect on the economy of less than $100 
million;
    (2) Will 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) Will not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency;
    (4) Will not materially alter the budgetary impact of entitlement, 
grants, user fees, or loan programs or rights and obligations of 
recipients thereof; and
    (5) Will not raise novel legal or policy issues arising out of 
legal mandates, the President's priorities, or principles set forth in 
Executive Order 12866.

[[Page 59877]]

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

    The information collection requirements imposed by this rule has 
been previously submitted to the Office of Management and Budget (OMB) 
under the paperwork Reduction Act of 19980 (44 U.S.C. Chapter 35). OMB 
has assigned control number 0551-0035 for this information collection. 
This final rule change does not require collection of additional 
information; however, the final rule includes a requirement to use new 
forms for the semiannual logistic and monetization reports. These 
report forms have been submitted to OMB for review.

Executive Order 12372

    This 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 rule has been reviewed under the Executive Order 12988, Civil 
Justice Reform. The rule will 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 will not have retroactive effect. Administrative proceedings 
are not required before parties may seek judicial review.

Background

    On February 23, 1998, CCC published a notice of proposed rulemaking 
63 FR 8879, regarding the donation of agricultural commodities under 
section 416(b) of the Agricultural Act of 1949 and the Food for 
Progress Act of 1985 appear at 7 CFR Part 1499. That notice proposed 
changes to address certain issues that have arisen since the 
regulations were first published on November 29, 1996, and 
additionally, make non-substantive corrections. CCC did not receive any 
comments on the proposed rule and is adopting the proposed rule without 
change.

List of Subjects in 7 CFR Part 1499

    Agricultural commodities, Exports, Foreign aid.

    Accordingly, Part 1499 of Title 7 of the Code of Federal 
Regulations is amended as follows:

PART 1499--FOREIGN DONATION PROGRAMS

    1. The authority citation for Part 1499 continues to read as 
follows:

    Authority: 7 U.S.C. 1431 (b); 7 U.S.C. 17360; E.O. 12752


Sec. 1499.1  [Amended]

    2. Section 1499.1 is amended by removing--KCFMO--Kansas City 
Financial Management Office'' and adding, in its place, ``KCMO/DMD--
Kansas City Management Office/Debt Management Division.''
    3. Section 1499.7(e) is amended by revising the third and fourth 
sentences to read as follows:


Sec. 1499.7  Apportionment of costs and advances.

* * * * *
    (e) * * * The non-government Cooperating Sponsor may make 
adjustments between line items of an approved Program Operations Budget 
up to 20 percent of the total amount approved or $5,000, whichever is 
less without any further approval. Adjustments beyond these limits must 
be specifically approved by the Director, PDD.
* * * * *


Sec. 1499.7  [Amended]

    4. Section 1499.7 (i) is amended by deleting ``Director, CCCPSD'' 
and adding in its place , ``Director, PDD.''
    5. In section 1499.8, the introductory text of paragraph (b) and 
the headings of paragraph (g) and (g)(1) are revised, paragraph 
(g)(1)(vii) is redesignated as paragraph (g)(viii), and new paragraph 
(g)(1)(vii) and (g)(1)(ix) are added to read as follows:


Sec. 1499.8  Ocean transportation.

* * * * *
    (b) Freight procurement requirements. When CCC is financing any 
portion of the ocean freight, whether on U.S.-flag or non-U.S. flag 
vessels, and the Cooperating Sponsor arranges ocean transportation:
* * * * *
    (g) Documents required for payment of freight--(1) General rule. * 
* *
* * * * *
    (vii) For all liner cargoes, a copy of the tariff page.
* * * * *
    (ix) Each request to CCC for payment must provide a document, on 
letterhead and signed by an official or agent of the requester, the 
name of the entity to receive payment, the bank ABA number to which 
payment is to be made; the account number for the deposit at the bank; 
the requester's taxpayer identification number; and the type of the 
account into which funds will be deposited.
* * * * *


Sec. 1499.8  [Amended]

    6. In section 1499.8, paragraph (g) is amended by deleting ``One 
copy'' wherever it appears and adding ``One signed copy'' in its place, 
and paragraph (g)(vi) is amended by deleting ``a notice'' and adding, 
in its place, ``a signed notice.''
    7. Section 1499.10 is amended by adding a new paragraph (d) to read 
as follows:


Sec. 1499.10  Restrictions on commodity use and distribution.

* * * * *
    (d) In the event that its participation in the program terminates, 
the non-government cooperating sponsor will safeguard any undistributed 
commodities and sales proceeds and dispose of such commodities and 
proceeds as directed by CCC.


Sec. 1499.14  [Amended]

    8. Section 1499.14(b)(2) is amended by deleting ``KCFMO'' and 
adding, in its place ``KCMO/DMD.''
    9. Section 1499.15, is amended by removing ``KCFMO'' wherever it 
appears and adding, in its place ``KCMO/DMD'', revising the last 
sentence of paragraphs Sec. 1499.15(d)(2) and (f)(3) and adding 
paragraphs (d)(2)(i) through (d)(2)(vi) to read as follows:


Sec. 1499.15  Liability for loss, damage, or improper distribution of 
commodities--claims and procedures.

* * * * *
    (d) * * *
    (2) * * * In the event of a declaration General Average:
    (i) The Cooperating Sponsor shall assign all claim rights to CCC 
and shall provide CCC all documentation relating to the claim, if 
applicable;
    (ii) CCC will be responsible for settling general average and 
marine salvage claims;
    (iii) CCC has sole authority to authorize any disposition of 
commodities which have not commenced ocean transit or of which the 
ocean transit is interrupted;
    (iv) CCC will receive and retain any monetary proceeds resulting 
from such disposition;
    (v) CCC will initiate, prosecute, and retain all proceeds of cargo 
loss and

[[Page 59878]]

damage against ocean carriers and any allowance in general average; and
    (vi) CCC will pay any general average or marine salvage claims 
determined to be due.
* * * * *
    (f) * * *
    (3) * * * If the Agricultural Counselor or Attache approves a 
Cooperating Sponsor's decision not to take further action on the claim, 
the Cooperating Sponsor shall assign the claim to CCC and shall forward 
all documentation relating to the claim to KCMO/DMD.
* * * * *
    10. In section 1499.16, the second and third sentences of paragraph 
(c)(1) introductory text and the second and third sentences of paragaph 
(c)(2) introductory text are revised to read as follows:


Sec. 1499.16  Records and reporting requirements.

* * * * *
    (c) Reports. (1) * * * Cooperating sponsors must submit reports on 
Form CCC-620 and submit the first report by May 16 for agreements 
signed during the period, October 1 through March 31, or by November 16 
for agreements signed during the period, April 1 through September 30. 
The first report must cover the time period from the date of signing 
and subsequent reports must be provided at six months intervals 
covering the period from the due date of the last report until all 
commodities have been distributed or sold and such distribution or sale 
reported to CCC. * * *
* * * * *
    (2) * * * Cooperating Sponsors must submit reports on Form CCC-621 
and submit the first report by May 16 for agreements signed during the 
period, October 1 through March 31, or by November 16 for agreements 
signed during the period, April 1 through September 30. The first 
report must cover the time period from the date of signing and 
subsequent reports must be provided at six months intervals covering 
the period from the due date of the last report until all funds 
generated from commodity sales have been distributed and such 
distribution reported to CCC.* * *
* * * * *
Christopher E. Goldthwait,
General Sales Manager, FAS, and Vice President, Commodity Credit 
Corporation.
[FR Doc. 98-29725 Filed 11-5-98; 8:45 am]
BILLING CODE 3410-10-P