[Federal Register Volume 64, Number 219 (Monday, November 15, 1999)]
[Notices]
[Pages 61814-61816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29656]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Announcement of the Quality Samples Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: Commodity Credit Corporation is establishing, on a pilot 
basis, a ``Quality Samples Program'' to help develop and expand markets 
for U.S. agricultural commodities.

DATES: All proposals must be received by 5:00 p.m. Eastern Standard 
Time, December 15, 1999.

FOR FURTHER INFORMATION CONTACT: Marketing Operations Staff, Foreign 
Agricultural Service, Room 4932-S, Stop 1042, U.S. Department of 
Agriculture, 1400 Independence Ave., SW, Washington, D.C. 20250-1042, 
or telephone: (202) 720-4327.

SUPPLEMENTARY INFORMATION:

Introduction

    The Commodity Credit Corporation (CCC) announces that proposals may 
be submitted for participation in a ``Quality Samples Program'' (QSP). 
The QSP is a pilot program designed to encourage the development and 
expansion of export

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markets for U.S. agricultural commodities, under the authority of the 
CCC Charter Act, 15 U.S.C. 714c(f). The QSP is designed to assist U.S. 
entities in providing commodity samples to potential foreign importers 
to promote a better understanding and appreciation for the high quality 
of U.S. agricultural commodities. CCC will consider providing funds on 
a grant basis to U.S. entities to assist them in providing such samples 
if a proposal has been submitted by the interested U.S. entity and 
accepted by CCC. CCC will review all proposals it receives against the 
evaluation criteria contained herein and award QSP funds on a 
competitive basis.
    Under the QSP, CCC will enter into agreements with those entities 
whose proposals have been accepted. QSP participants will be 
responsible for procuring (or arranging for the procurement of) 
commodity samples, exporting the samples, and providing the technical 
assistance necessary to facilitate successful use of the samples by 
importers. After completion of a QSP project, participants may submit 
claims for reimbursement of the costs associated with providing the 
samples to the extent that CCC has agreed to pay such costs. For 
example, CCC may agree to reimburse the cost of procuring and exporting 
the samples, including the commodity purchase price, document 
preparation fees, and commodity transportation costs. CCC will not 
reimburse the costs of providing technical assistance. The QSP 
agreement between CCC and the participant will include a maximum amount 
that may be reimbursed. A QSP participant will be reimbursed after CCC 
reviews its claim and determines that the claim is complete. The QSP 
activity will be subject to verification by the FAS Compliance Review 
Staff. Upon request, a QSP participant shall provide to CCC the 
original documents which support the participant's reimbursement 
claims. CCC may deny a claim for reimbursement if the claim is not 
supported by adequate documentation.
    The QSP will be administered by personnel of the Foreign 
Agricultural Service (FAS). CCC will carefully monitor the operation of 
the pilot QSP through Fiscal Year 2000. Based upon experience gained 
during this pilot phase, CCC will, after opportunity for public 
comment, consider continuing the program. CCC will not obligate more 
than $2.5 million for the QSP during this pilot phase.

Proposal Process

    To be considered for participation in the QSP, interested parties 
should submit proposals to: Kent Sisson, Marketing Operations Staff, 
Foreign Agricultural Service, Room 4932-S, Stop 1042, U.S. Department 
of Agriculture, 1400 Independence Ave., SW, Washington, D.C. 20250-
1042. Telephone: (202) 720-4327. QSP proposals must contain complete 
information about the proposed sample projects. Interested parties can 
request a suggested format for proposals from the same address. 
Organizations which submitted QSP-type proposals in their Unified 
Export Strategy (UES) applications in March 1999 do not need to 
resubmit those proposals as they will automatically be considered. 
However, such applicants are welcome to modify and resubmit their 
proposals after reading this announcement.

General Scope of QSP Projects

    As a general matter, QSP projects should be designed to accomplish 
the following goals:
     Projects should benefit the represented industry and not a 
specific company or brand;
     Projects should promote a new use or market for a U.S. 
product, or a new varietal type of a U.S. product, rather than promote 
the substitution of one established U.S. product for another;
     Sample commodities provided in a QSP project must be 
readily available on a commercial basis;
     Sample commodities must be subject to further processing 
or substantial transformation in the importing country;
     Samples provided in a QSP project shall not be used as 
part of a retail promotion or supplied directly to consumers; and
     Samples shall be in quantities less than a typical 
commercial sale and limited to the amount sufficient to achieve the 
project goal (e.g., not more than a full commercial mill run in the 
destination country).
    QSP projects shall target foreign importers who:
     Have not previously purchased a particular U.S. commodity;
     Are unfamiliar with a particular U.S. variety, quality 
attribute, or end-use characteristic;
     Have been unsuccessful in previous attempts to import, 
process, and market a particular U.S. commodity (e.g., because of 
improper specification, blending, or formulation; or sanitary or 
phytosanitary (SPS) issues);
     Are interested in testing or demonstrating the benefits of 
a particular U.S. commodity; or
     Need technical assistance in processing or using a 
particular U.S. commodity.

Entities interested in participating in the QSP are not required to 
submit proposals in any specific format; however, FAS recommends that 
proposals contain, at a minimum, the following: (a) Organizational 
information, including:
     Organization's name, address, Chief Executive Officer (or 
designee), and Federal Tax Identification Number (TIN);
     Type of organization;
     Name, telephone number, fax number, and e-mail address of 
the primary contact person;
     A description of the organization and its membership;
     A description of the organization's prior export promotion 
experience; and
     A description of the organization's experience in 
implementing an appropriate trade/technical assistance component;
    (b) Market information, including:
     An assessment of the market;
     A long-term strategy in the market; and
     U.S. export value/volume and market share (historic and 
goals) for 1997-2005;
    (c) Project information, including:
     A brief project title;
     Request for funding;
     A brief description of the specific market development 
trade constraint to be addressed by the project, performance measures 
for the years 2000-2002 which will be used to measure the effectiveness 
of the project, a benchmark performance measure for 1999, the viability 
of long term sales to this market, the goals of the project, and the 
expected benefits to the represented industry;
     A description of the activities planned to address the 
constraint, including how the sample will be used in the end-use 
performance trial, the attributes of the sample to be demonstrated and 
their end-use benefit, and details of the trade/technical servicing 
component associated with the sample;
     A sample description (i.e., commodity, quantity, quality, 
type, and grade), including a justification for selecting a sample with 
such characteristics;
     An itemized list of all estimated costs associated with 
the project for which reimbursement will be sought (e.g., commodity 
costs, freight, inspection and weighing, freight forwarding services, 
and document preparation fees); and
     Ports of export and delivery;
    (d) Importer information, including:
     Name, address, and telephone of primary contact person;

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     The reason why the importer was selected for the project; 
and
     The importer's role in the project regarding handling and 
processing the commodity sample; and
    (e) Information indicating all funding sources, and amounts to be 
contributed by each entity that will contribute to implementation of 
the proposed project. This may include the organization that submitted 
the proposal, private industry entities, host governments, foreign 
third parties, CCC, FAS, or other Federal agencies. Contributed 
resources may include cash, goods, and services.

Review Process

    FAS will use the following criteria in evaluating proposals:
     The overall quality of the proposal;
     The ability of the organization to provide an experienced 
staff with the requisite technical and trade experience to execute the 
proposal;
     The extent to which the proposal is targeted to a market 
in which the United States is generally competitive;
     The potential for expanding commercial sales in the 
proposed market;
     The nature of the specific market constraint involved and 
how well it is addressed by the proposal;
     The extent to which the importer's contribution in terms 
of handling and processing enhances the potential outcome of the 
project;
     The amount of reimbursement requested and the 
organization's willingness to contribute resources, including cash and 
goods and services of the U.S. industry and foreign third parties; and
     How well the proposed technical assistance component 
assures that performance trials will effectively demonstrate the 
intended end-use benefit.
    FAS will establish a QSP Committee (Committee) for the purpose of 
reviewing proposals for eligibility and completeness and allocating CCC 
funds. The Committee will evaluate each proposal against the factors 
described above. The purpose of this review is to identify meritorious 
proposals, recommend an appropriate funding level for each proposal 
based upon these factors, and submit the proposals and funding 
recommendations to the Deputy Administrator, Commodity and Marketing 
Programs.

Agreements

    Following approval of a proposal, CCC will enter into an agreement 
with the organization that submitted the proposal. Agreements will 
incorporate the proposal as approved by FAS. Each agreement will 
identify terms and conditions pursuant to which CCC will reimburse 
certain costs of the project. Agreements will also outline the 
responsibilities of the participant, including, but not limited to, 
procurement (or arranging for procurement) of the commodity sample at a 
fair market price, arranging for shipment of the commodity sample 
within the time limit specified in the agreement (generally 90 days), 
compliance with cargo preference requirements (shipment on United 
States flag vessels, as may be required), timely and effective 
implementation of technical assistance, and submission of a written 
evaluation report within 6 months of completion of the project. 
Evaluation reports should address the performance measures presented in 
the proposal.

Closing Date for Proposals

    All proposals must be submitted in triplicate and received by 5:00 
p.m. Eastern Standard Time, [insert date 30 days after date of 
publication in the Federal Register], at one of the following 
addresses:
    Hand Delivery (including FedEx, DHL, etc.): U.S. Department of 
Agriculture, Foreign Agricultural Service, Marketing Operations Staff, 
Room 4932-S, 14th and Independence Avenue, S.W., Washington, D.C. 
20250-1042.
    U.S. Postal Delivery: Marketing Operations Staff, STOP 1042, 1400 
Independence Ave., SW, Washington, D.C. 20250-1042.

    Dated: November 4, 1999.
Timothy J. Galvin,
Administrator, Foreign Agricultural Service, Vice President, Commodity 
Credit Corporation.
[FR Doc. 99-29656 Filed 11-12-99; 8:45 am]
BILLING CODE 3410-10-P