[Federal Register Volume 66, Number 29 (Monday, February 12, 2001)]
[Notices]
[Pages 9816-9818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3572]


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 Notices
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  Federal Register / Vol. 66, No. 29 / Monday, February 12, 2001 / 
Notices  

[[Page 9816]]



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 inviting proposals for the FY 
2001 Quality Samples Program. Approval criteria are being revised for 
FY 2001.

DATES: All proposals must be received by 5 p.m. Eastern Standard Time, 
March 12, 2001.

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, DC 20250-1042, or 
telephone: (202) 720-4327.

SUPPLEMENTARY INFORMATION:

Introduction

    The Commodity Credit Corporation (CCC) announces that proposals may 
be submitted for participation in the Quality Samples Program (QSP) 
during FY 2001. The QSP is a pilot program designed to encourage the 
development and expansion of export 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 
reimbursement 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. 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. CCC will review all 
proposals it receives against the evaluation criteria contained herein 
and award QSP funds on a competitive basis. CCC is currently allocating 
$1.25 million to fund the QSP.
    Under the QSP, CCC will enter into agreements with those entities 
whose proposals have been accepted. The QSP agreement between CCC and 
the participant will include the maximum amount of CCC funds that may 
be used to reimburse certain activity costs which have been approved by 
CCC and paid by the QSP participant. A QSP participant will be 
reimbursed after CCC reviews its reimbursement claim and determines 
that the claim is complete. CCC will not reimburse the costs of 
providing technical assistance. QSP agreements will be subject to 
verification by the Foreign Agricultural Service's (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. Cash advances will not be made 
available to any QSP participants.
    The QSP will be administered by FAS personnel. CCC will carefully 
monitor the operation of the pilot QSP through Fiscal Year 2001. This 
notice supercedes any prior notices concerning the QSP.

General Scope of QSP Projects

    QSP projects are the activities undertaken by a QSP participant to 
provide an appropriate sample of a U.S. agricultural commodity to a 
foreign importer, or a group of foreign importers, in a given market. 
The purpose of the project is to provide information to an appropriate 
target audience regarding the attributes, characteristics, and proper 
use of the U.S. commodity. A QSP project addresses a single market/
commodity combination. As a general matter, QSP projects should conform 
to the following guidelines:

     Projects should benefit the represented U.S. industry and 
not a specific company or brand;
     Projects should develop a new market for a U.S. product, 
promote a new U.S. product, or promote a new use for a U.S. product, 
rather than promote the substitution of one established U.S. product 
for another;
     Sample commodities provided under a QSP project must be in 
sufficient supply and available on a commercial basis;
     The QSP project must either subject the commodity sample 
to further processing or substantial transformation in the importing 
country, or the sample must be used in technical seminars designed to 
demonstrate to an appropriate target audience the proper preparation or 
use of the sample in the creation of an end product;
     Samples provided in a QSP project shall not be directly 
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 and target audiences 
who:

     Have not previously purchased the U.S. commodity which 
will be shipped under the QSP;
     Are unfamiliar with the variety, quality attribute, or 
end-use characteristic of the U.S. commodity which will be shipped 
under the QSP;
     Have been unsuccessful in previous attempts to import, 
process, and market the U.S. commodity which will be shipped under the 
QSP (e.g., because of improper specification, blending, or formulation; 
or sanitary or phytosanitary (SPS) issues);
     Are interested in testing or demonstrating the benefits of 
the U.S. commodity which will be shipped under the QSP; or
     Need technical assistance in processing or using the U.S. 
commodity which will be shipped under the QSP.

Major Changes From the Initial Pilot Program

    CCC announced its initial pilot program in the Federal Register (64 
FR 61814) on November 15, 1999. During FY 2000, CCC was only able to 
enter into QSP agreements with 10 participants. CCC is modifying the 
pilot program to allow more organizations to

[[Page 9817]]

participate. This will be achieved by expanding the types of 
commodities which can be shipped under the QSP, limiting the amount 
which a participant can be reimbursed per project, and limiting the 
number of countries which an organization can target.
    The initial program allowed only sample commodities which were 
subject to further processing or substantial transformation in the 
importing country. Proposals under this announcement may also include 
commodity samples to be used in technical seminars designed to 
demonstrate, to an appropriate audience in the importing country, the 
proper preparation or use of the sample in the creation of an end 
product. Sample commodities provided in a QSP project may not be 
directly used in retail promotions or supplied directly to consumers. 
However, the end product; that is, the product resulting from further 
processing, substantial transformation, or a technical seminar; may be 
provided to end use consumers to demonstrate to importers consumer 
preference for that end product.
    The initial program did not limit the number of projects which 
could be undertaken by a participant. Under this announcement, 
participants will be allowed no more than three projects, that is, no 
more than three market/commodity combinations.
    The initial program did not limit funding to individual 
participants. Under this announcement, projects will be limited to 
$50,000 of QSP reimbursement. Projects comprised of technical 
preparation seminars; that is, projects which do not include further 
processing or substantial transformation; will be limited to $10,000 of 
QSP reimbursement, as these projects require smaller samples. Under the 
QSP, participants may be reimbursed for certain costs of purchasing and 
transporting commodity samples. Although providing technical assistance 
is required for all projects, costs of providing the actual technical 
assistance will not be reimbursed under the QSP. Both the funding and 
project limitations are intended to increase the number of participants 
that will receive QSP funding.
    The initial program allowed participants to seek reimbursement for 
costs of sample procurement, shipping, and incidental costs. 
Participants that are funded under this announcement may seek 
reimbursement for the sample purchase price and the costs of 
transporting the samples domestically to the port of export and then to 
the foreign port of entry. Transportation costs from the foreign port, 
or point, of entry to the final destination will not be eligible for 
reimbursement under this notice. Costs incidental to purchasing and 
transporting samples, for example, inspection or documentation fees, 
will not be eligible for reimbursement under this notice.
    Finally, the initial pilot program placed no priority on targeted 
countries. In an effort to support the USDA's primary export objective 
of increasing the U.S. share of world agricultural trade, priority 
under this announcement will be given to proposals which target 
countries which meet either of the following criteria:
     Per capita income less than $9,360 (the ceiling on upper 
middle income economies as determined by the World Bank [World 
Development Indicators 2000]); and population greater than 1 million. 
Proposals may address suitable multi-country regional groupings, for 
example, the island countries of the Caribbean Basin; or
     U.S. market share of imports of the commodity identified 
in the proposal is 10 percent or less.

Proposal Process

    In order to be considered for participation in the QSP, interested 
parties should submit proposals to FAS as described in this notice. QSP 
proposals must contain complete information about the proposed 
projects. This notice is complemented by concurrent notices announcing 
four other foreign market development programs administered by FAS, 
including the Market Access Program (MAP), the Foreign Market 
Development Cooperator (Cooperator) Program, the Emerging Markets 
Program, and the Section 108 Foreign Currency Program.
    The MAP and Cooperator Program notices detail a Unified Export 
Strategy (UES) application process which provides a means for 
interested applicants to submit a consolidated and strategically 
coordinated single proposal that incorporates funding requests for any 
or all of these programs. Some applicants to the QSP, particularly 
those who also are applying for funding under the MAP or Cooperator 
Program, are encouraged to use the UES application process. The 
Internet-based UES application, including step-by-step instructions for 
its use, is located at the following URL address: http://www.fas.usda.gov/cooperators.html. Other applicants should follow the 
application procedures contained in this notice, and can request a 
suggested format for proposals from the contact listed above.
    Organizations which submitted QSP proposals in their UES 
applications in March 2000 must resubmit those proposals as they will 
not automatically be considered. Such applicants are encouraged to 
modify and resubmit their proposals, or submit new proposals, based on 
the details provided in this announcement.
    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 1998-2003;

    (c) Project information, including:

     A brief project title;
     Request for funding;
     A brief description of the specific market development 
trade constraint or opportunity to be addressed by the project, 
performance measures for the years 2001-2003 which will be used to 
measure the effectiveness of the project, a benchmark performance 
measure for 2000, 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 or opportunity, 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 (including who will provide and who will 
fund this component);
     A sample description (i.e., commodity, quantity, quality, 
type, and grade), including a justification for selecting a sample with 
such characteristics (this justification should explain in detail why 
the project could not be effective with a smaller sample);
     An itemized list of all estimated costs associated with 
the project for

[[Page 9818]]

which reimbursement will be sought; and
     The importer's role in the project regarding handling and 
processing the commodity sample;

    (d) 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

    Proposals will be evaluated by the applicable FAS commodity 
division. The divisions will review each proposal against the factors 
described below. 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.
    FAS will use the following criteria in evaluating proposals:

     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 or 
opportunity 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.

    Highest priority for funding under this announcement will be given 
to meritorious proposals which target countries which meet either of 
the following criteria:

     Per capita income less than $9,360 (the ceiling on upper 
middle income economies as determined by the World Bank [World 
Development Indicators 2000]); and population greater than 1 million. 
Proposals may address suitable regional groupings, for example, the 
islands of the Caribbean Basin; or
     U.S. market share of imports of the commodity identified 
in the proposal of 10 percent or less.

Agreements

    Following approval of a proposal, CCC will enter into an agreement 
with the organization that submitted the proposal. Agreements will 
incorporate the details of each project as approved by FAS. Each 
agreement will identify terms and conditions pursuant to which CCC will 
reimburse certain costs of each 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 (organizations should 
endeavor to ship commodities within 6 months of effective date of 
agreement), compliance with cargo preference requirements (shipment on 
United States flag vessels, as required), timely and effective 
implementation of technical assistance, and submission of a written 
evaluation report within 90 days of expiration of the agreement. 
Evaluation reports should address all performance measures which were 
presented in the proposal.

Closing Date for Proposals

    All proposals must be submitted in triplicate and received by 5 
p.m. Eastern Standard Time, March 12, 2001, 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, SW., Washington, DC 20250-
1042.
    U.S. Postal Delivery: Marketing Operations Staff, STOP 1042, 1400 
Independence Ave., SW., Washington, DC 20250-1042.

    Dated: January 31, 2001.
Mattie R. Sharpless,
Acting Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
[FR Doc. 01-3572 Filed 2-9-01; 8:45 am]
BILLING CODE 3410-10-P