[Federal Register Volume 67, Number 154 (Friday, August 9, 2002)]
[Notices]
[Pages 51813-51815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20190]


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

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Announcement of the Quality Samples Program for Fiscal Year 2002

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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

SUMMARY: Commodity Credit Corporation is extending the time for 
submission of proposals for the FY 2002 Quality Samples Program. 
Proposals will be reviewed, and funding decisions will be made, as 
proposals are received.

DATES: Proposals will be accepted until 5 p.m. Eastern Daylight Time, 
September 16, 2002.

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

    On January 8, 2002, the Commodity Credit Corporation (CCC) 
announced in the Federal Register (67 FR 859) that proposals were being 
accepted for participation in the Fiscal Year (FY) 2002 Quality Samples 
Program (QSP). Based on its review of the proposals, CCC allocated 
approximately $1.34 million in funding in June 2002. Because 
approximately $1.16 million of the funds CCC made available in FY 2002 
remain unallocated, CCC announces that it is extending the time period 
for submission of proposals to participate in the Fiscal Year 2002 
Quality Samples Program (QSP).
    The QSP is designed to encourage the development and expansion of 
export markets for U.S. agricultural commodities by assisting 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 review all proposals it 
receives against the evaluation criteria contained herein and award 
unallocated FY 2002 QSP funds on a rolling basis. Financial assistance 
will be made available through grants on a reimbursement basis.
    Under the QSP, CCC enters 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 are 
available to reimburse specific activity costs that have been approved 
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. 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 are subject to review 
and 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 participant.
    The QSP is administered by FAS personnel. This notice supersedes 
any prior notices concerning the QSP.

Authority

    The QSP is authorized under Section 5(f) of the CCC Charter Act, 15 
U.S.C. 714c(f).

Available Funds

    $1.16 million of cost-share assistance may be obligated under this 
announcement.

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 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.

Features of the FY 2002 Program

    Under this announcement, the number of projects per participant 
will not be limited; however, each specific project will be limited to 
$60,000 of QSP reimbursement. Projects comprised of technical 
preparation seminars; that is, projects that do not include further 
processing or substantial transformation; will remain limited to

[[Page 51814]]

$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.

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. Applicants should follow the application procedures contained 
in this notice.
    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 1998-2004;
    (c) Project information, including:
     A brief project title;
     Amount of funding requested;
     A brief description of the specific market development 
trade constraint or opportunity 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 2001, 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 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 supplement 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 $9,265 (the ceiling on upper 
middle income economies as determined by the World Bank [World 
Development Indicators 2001]); 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), compliance with the Fly 
American Act requirements (shipment on United States air carriers, 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 that were presented in the proposal.

Closing Date for Proposals

    To be considered for participation in the QSP, interested parties 
should submit, via a commercial delivery service (including FedEx, DHL, 
etc.), proposals to: Director, Marketing Operations Staff, Foreign 
Agricultural Service, U.S. Department of Agriculture, Room 4932-S, Stop 
1042, 14th and Independence Avenue, SW., Washington, DC 20250-1042. All

[[Page 51815]]

proposals must be received by 5 p.m. Eastern Daylight Time, September 
16, 2002.

    Dated: July 23, 2002.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service, and Vice President, 
Commodity Credit Corporation.
[FR Doc. 02-20190 Filed 8-8-02; 8:45 am]
BILLING CODE 3410-10-M