[Federal Register Volume 67, Number 5 (Tuesday, January 8, 2002)]
[Notices]
[Pages 862-864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-430]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service


Section 108 Foreign Currency Program

AGENCY: Foreign Agricultural Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Foreign Agricultural Service invites proposals from 
interested parties to use certain foreign currencies acquired by the 
United States for activities to expand markets for U.S. agricultural 
commodities and for technical assistance activities.

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

SUPPLEMENTARY INFORMATION:

Introduction

    The Foreign Agricultural Service (FAS) will use available 
currencies of the Dominican Republic, Jamaica, Sri Lanka, and Tunisia, 
to provide assistance in market development and agricultural technical 
assistance activities. This use of foreign currencies is commonly 
referred to as the ``section 108 foreign currency program.'' These 
foreign currencies were acquired by USDA pursuant to agreements made 
under Title I of the Agricultural Trade Development and Assistance Act 
of 1954, (Pub. L. 480).
    Title I, Pub. L. 480 authorizes the U.S. government to finance the 
sale and exportation of agricultural commodities to foreign governments 
on concessional terms. Between 1986 and 1991, the U.S. entered into 
various Title I, Pub. L. 480 agreements with foreign governments, on 
terms which allowed repayment to the United States in local currencies. 
Pub. L. 480 authorizes the U.S. government to use these foreign 
currencies to implement market development and agricultural technical 
assistance activities.
    This announcement supersedes all previous announcements regarding 
this program. On February 12, 2001, FAS published a notice in the 
Federal Register (66 FR 9818-9820) inviting proposals to use currencies 
of Costa Rica, Dominican Republic, Jamaica, and Tunisia for market 
development projects and technical assistance activities. The 
currencies of Costa Rica, which were available under the previous 
announcements, are no longer available. The currencies of Sri Lanka 
have been added to the list.
    FAS must disburse local currencies to program participants, usually 
through the disbursing officer in the U.S. embassy in the country of 
origin. That is, FAS may not convert the local currency to any other 
currency prior to disbursement. Activities funded with section 108 
currencies are not limited to the country where the currency 
originated. It is the responsibility of the recipient to arrange for 
receiving and using the foreign currencies made available, or 
converting the funds to other currencies. At the time of this 
announcement, approximately 28 million Dominican Republic pesos; 210 
million Jamaica dollars; 12 million Tunisia dinars; and 1.7 million Sri 
Lanka rupees are available.

Proposal Process

    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 Quality Samples Program (QSP). 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 section 108 foreign currency program, particularly 
those who are applying for funding under more than one program, may 
wish 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, particularly those who are applying 
for funding only under the section 108 foreign currency program, should 
follow the application procedures contained in this notice. Interested 
applicants that are unsure of how to apply are urged to contact the 
Marketing Operations Staff at the address or phone number above.
    FAS recommends that proposals to participate in the section 108 
foreign currency program 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, e.g., corporation, non-profit 
organization;

[[Page 863]]

     Name, telephone number, fax number, and e-mail address of 
the primary contact person;
     If a trade organization, 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 a trade or technical assistance activity;
    (b) Market information, including:
     An assessment of the targeted market;
     A long-term strategy in the market; and
     U.S. export value/volume and market share data and goals 
for 1999-2004;
    (c) Project information, including:
     A brief project title;
     Request for funding in one of the available foreign 
currencies;
     A brief description of the specific market development 
trade constraint to be addressed by the project, performance measures 
for the years 2002-2004 which will be used to measure the effectiveness 
of the project, a benchmark performance measure for 2002, the viability 
of long term sales to this market, the goals of the project, and the 
expected benefits to the represented industry;
     A method for evaluating and reporting results;
     A description of the activities planned to address the 
constraint; and
     An itemized list of all estimated costs associated with 
each project activity for which reimbursement will be sought;
    (d) Information indicating all funding sources and amounts to be 
contributed by each entity that will supplement implementation of the 
proposed project. This may include the organization that submitted the 
proposal, private industry entities, host governments, foreign third 
parties, Commodity Credit Corporation, FAS, or other Federal agencies. 
Contributed resources may include cash, goods, and services; and,
    (e) A completed Standard Form 424 (SF-424). This form is available 
on the Internet via the section 108 fact sheet at the following URL 
address: http://www.fas.usda.gov/info/factsheets/108fact.htm, or by 
calling the contact listed above.

Review Process and Allocation Criteria

    The FAS allocates funds in a manner which effectively supports the 
strategic decision-making initiatives of the Government Performance and 
Results Act (GPRA) of 1993 and the USDA's Food and Agricultural Policy 
(FAP). In deciding whether a proposed project will contribute to the 
effective creation, expansion, or maintenance of foreign markets, the 
FAS seeks to identify a clear, long-term agricultural trade strategy 
and a program effectiveness time line against which results can be 
measured at specific intervals using quantifiable product or country 
goals. The FAS also considers the extent to which a proposed project 
targets markets with the greatest growth potential. These factors are 
part of the FAS resource allocation strategy to fund applicants who can 
demonstrate performance and address the objectives of the GPRA and FAP. 
FAS will provide financial assistance under this program on a 
competitive basis and applications will be reviewed against the 
evaluation criteria contained herein. Proposals will be evaluated by 
the applicable FAS commodity division. The divisions will recommend 
funding levels for each applicant based on a review of the applications 
against the following factors:
     The ability of the organization to provide an experienced 
staff with the requisite technical and trade expertise to execute the 
proposal;
     The funding request and the organization's willingness to 
contribute resources, including cash, goods and services of the U.S. 
industry and foreign third parties;
     The conditions or constraints affecting the level of U.S. 
exports and market share for the agricultural commodities and products;
     The degree to which the proposed project is likely to 
contribute to the creation, expansion, or maintenance of the targeted 
foreign market; and
     The degree to which the organization's proposal is 
coordinated with other private or U.S. government-funded market 
development projects.
    The purpose of this review is to identify meritorious proposals and 
to suggest an appropriate funding level for each application based upon 
these factors. Meritorious proposals will then be reviewed by 
representatives of each FAS program area for the purpose of allocating 
available funds among the applicants. FAS will prioritize meritorious 
proposals according to the following criteria.
    First priority consideration will be given to proposals which 
target the growth markets listed below. These developing markets 
account for a significant share of world imports of major farm 
commodities and much of the projected long-term growth in global import 
demand. As such, they are expected to be among the most supportive of 
USDA's primary export objective of increasing the U.S. share of world 
agricultural trade. First priority growth markets for allocation of 
section 108 funds: Brazil, countries in Central America, Chile, China, 
Egypt, India, Indonesia, Malaysia, Mexico, Philippines, Russia, South 
Africa, South Korea, Thailand, Turkey, and Vietnam. First priority 
consideration will also be given to proposals which target the 
countries from which the foreign currencies originate, i.e., Dominican 
Republic, Jamaica, Sri Lanka, and Tunisia.
    Second priority consideration will be given to proposals which 
target other markets where growth prospects for the relevant 
agricultural product are high. These proposals would serve to open new 
markets or bring about substantial growth in existing markets.
    In all cases, preference is given to nonprofit U.S. agricultural 
trade organizations that represent an entire industry or are nationwide 
in membership and scope.


    Note: FAS generally reviews section 108 proposals on a quarterly 
basis. However, FAS may also consider proposals on an accelerated 
basis if an urgent marketing opportunity becomes available. FAS will 
evaluate such proposals according to the criteria specified in this 
notice. Details concerning the accelerated review can be obtained 
from the section 108 fact sheet on the Internet at the following URL 
address: http://www.fas.usda.gov/info/factsheets/108fact.htm or by 
calling the contact listed above.

Agreements

    Following approval of a proposal, FAS will enter into an agreement 
with the organization that submitted the proposal. Agreements will 
incorporate the project details as approved by FAS and specify any 
other terms and conditions applicable to project funding. Agreements 
include the maximum amount of funds, in local currencies rather than 
U.S. dollars, which may be made available for a participant's approved 
activities. All agreements with non-profit organizations under this 
program are administered under 7 CFR part 3019--Uniform Administrative 
Requirements for Grants and Cooperative Agreements with Institutions of 
Higher Education, Hospitals, and other Non-profit Organizations. These 
regulations can be found on the Internet at the following URL address: 
http://www.access.gpo.gov/nara/cfr/waisidx_;01/7cfr3019_01.html.

Submission of Proposals

    Proposals may be submitted on a continuous basis. However, all 
Internet-based section 108 proposals (using the UES application) must 
be properly

[[Page 864]]

submitted by 5 p.m. Eastern Standard Time, March 11, 2002, because the 
UES entry Web site closes at that time. Signed SF-424 forms must be 
delivered to one of the addresses listed below.
    All proposals on diskette (with two accompanying paper copies and a 
signed SF-424 form) and any other proposals must be delivered to one of 
the following addresses:
    Hand Delivery (including FedEx, DHL, UPS, etc.): U.S. Department of 
Agriculture, Foreign Agricultural Service, Marketing Operations Staff, 
Room 4932-S, 14th and Independence Ave., SW., Washington, DC 20250-
1042.
    U.S. Postal Delivery: U.S. Department of Agriculture, Foreign 
Agricultural Service, Marketing Operations Staff, STOP 1042, 1400 
Independence Ave., SW., Washington, DC 20250-1042.

    Signed at Washington, DC on December 31, 2001.
Mary T. Chambliss,
Acting Administrator, Foreign Agricultural Service.
[FR Doc. 02-430 Filed 1-7-02; 8:45 am]
BILLING CODE 3410-10-P