[Federal Register Volume 71, Number 137 (Tuesday, July 18, 2006)]
[Rules and Regulations]
[Pages 40641-40643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11236]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1402

RIN 0560-AH22


Policy for Certain Commodities Available for Sale

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule amends regulations of the Commodity Credit 
Corporation (CCC) relating to marketing procedures for commodities in 
CCC inventory to update agency provisions and provide for commodity 
sales through Internet-based marketing systems. This rule is intended 
to modernize and streamline CCC commodity marketing procedures.

DATES: Effective August 17, 2006.

FOR FURTHER INFORMATION CONTACT: Mark Overbo, Warehouse and Inventory 
Division, Farm Service Agency (FSA), United States Department of 
Agriculture (USDA), STOP 0553, 1400 Independence Avenue, SW., 
Washington, DC 20250-0553, telephone (202) 720-4647 or send e-mail to: 
[email protected]. Persons with disabilities who require 
alternative means of communication (braille, large print, audiotape, 
etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and 
TDD).

SUPPLEMENTARY INFORMATION:

Discussion of Final Rule

    Since the enactment of the Agricultural Act of 1949, CCC's major 
activity has been the administration and implementation of nonrecourse 
loans to producers of major agricultural commodities. Generally, 
Congress establishes loan rates for certain commodities on a per-unit 
basis. Under the program's ``nonrecourse'' provisions, the producer may 
satisfy the loan obligation through forfeiture to CCC of the commodity 
pledged as collateral for the loan. As a result, CCC acquires 
commodities that are forfeited or delivered under these nonrecourse 
loans. The accumulation of stocks of these forfeited commodities 
requires CCC to maintain provisions for their eventual disposal. The 
acquisition, procurement, storage, distribution, and disposal of 
commodities are handled by the Farm Service Agency under the 
administration of the Deputy Administrator for Commodity Opeartions. 
The regulations at 7 CFR part 1402 contain CCC policy for certain 
commodities available for sale by CCC.
    This rule updates the regulations regarding the dissemination of 
general sales offering information to reflect current CCC policies. 
Current regulations at 7 CFR part 1402 provide that CCC will 
disseminate general sales information through a ``CCC Sales List,'' 
published in press release or similar form, and revised and republished 
periodically as necessary. Methods of providing commodity sales and CCC 
inventory listings have improved considerably since the regulations 
were last updated. Currently, sales offerings are being made 
electronically via several sources such as CCC's Commodity Operations 
Web site at http://www.fsa.usda.gov/daco/catalogs and through other 
privately-maintained, fully interactive on-line sales systems. This 
rule replaces the provisions dealing with the publication of the CCC 
Sales List with the current policies and procedures for Internet 
posting of commodity inventories offered for sale.

Notice and Comment

    The changes made in this rule are a general edit and reorganization 
of part 1402 as a whole, which provides how CCC will disseminate 
information. Thus, this rule is exempt from the requirements of the 
Administrative Procedure Act (5 U.S.C. 553) for publication of a 
proposed rule for public

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notice and comment because it is a rule of agency procedure and 
practice.

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget (OMB).

Small Business Regulatory Enforcement Fairness Act

    This rule will be submitted to Congress as required by the Small 
Business Regulatory Enforcement Fairness Act (SBREFA) of 1996 (5 U.S.C. 
801 et seq.). The rule has been determined not to be a major regulatory 
action. Thus, the 60-day delay required by section 801 of SBREFA for 
Congressional review is not applicable.

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this rule 
because CCC is not required by 5 U.S.C. 553 or any other law to publish 
a notice of proposed rule making for the subject matter of this rule.

Executive Order 12372

    This program is not subject to 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 48 
FR 29115 (June 24, 1983).

Environmental Assessment

    The environmental impacts of this rule have been considered 
consistent with the provisions of the National Environmental Policy Act 
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council 
on Environmental Quality, 40 CFR parts 1500-1508, and the FSA 
regulations for compliance with NEPA, 7 CFR part 799. FSA completed an 
environmental evaluation and concluded the rule requires no further 
environmental review. No extraordinary circumstances or other 
unforeseeable factors exist which would require preparation of an 
environmental assessment or environmental impact statement. A copy of 
the environmental evaluation is available for inspection and review 
upon request.

Executive Order 12612

    The Federalism implications of this rule are not sufficient to 
warrant preparation of a Federalism Assessment. This rule will not have 
a substantial direct effect on States or their political subdivisions 
or on the distribution of power and responsibilities among the various 
levels of Government.

Unfunded Mandates Reform Act of 1995

    This Rule contains no Federal mandates as defined in Title II of 
the Unfunded Mandates Reform Act of 1995 (UMRA) for State, local, and 
tribal governments or the private sector. Therefore, this rule is not 
subject to sections 202 and 205 of UMRA.

Paperwork Reduction Act

    There are no public information collection, reporting or 
recordkeeping requirements associated with this rulemaking.

Federal Assistance Programs

    The title and number of the Federal assistance program found in the 
Catalog of Federal Domestic Assistance to which this final rule applies 
are Commodity Loans and Loan Deficiency Payments, 10.051.

List of Subjects in 7 CFR Part 1402

    Agricultural commodities, Price support programs, Processed 
commodities, Surplus agricultural commodities.


0
For the reasons set out in the preamble, 7 CFR part 1402 is revised as 
set forth below:
0
1. Revise 7 CFR part 1402 to read as follows:

PART 1402--POLICY FOR CERTAIN COMMODITIES AVAILABLE FOR SALE

Sec.
1402.1 General.
1402.2 Sales of inventory.
1402.3 Submission of offers, terms, and conditions.
1402.4 Information availability.
1402.5 Late payments.

    Authority: 7 U.S.C. 7285, 15 U.S.C. 714b and 714c.


Sec.  1402.1  General.

    To facilitate trade through usual and customary channels, 
facilities, and arrangements of trade and commerce, the Commodity 
Credit Corporation (CCC) will disseminate general sales offering 
information on the Farm Service Agency's (FSA) Commodity Operations Web 
site located on the Worldwide Web at http://www.fsa.usda.gov/daco/default.htm. The Web site will be reviewed and amended as necessary to 
reflect current general sales offering information. CCC will make 
regular amendments as necessary deleting or adding to the sales 
provisions or changing prices or methods of sales. The information 
posted at this Web site is for the purpose of public information and 
does not constitute an offer to sell by CCC or an invitation for offers 
to purchase from CCC. CCC may make its commodities available for sale 
without prior notification to storing warehouse operators. Information 
pertaining to opportunities to purchase commodities from CCC will be 
published on the FSA Commodity Operations Web site when such 
opportunities are available.


Sec.  1402.2  Sales of inventory.

    CCC will entertain offers from prospective buyers for the purchase 
of any commodities owned by CCC, including those commodities that are 
marketed through commercial, Internet-based marketing services. Various 
commodities owned by CCC may be offered for sale through commercial, 
Internet-based marketing services. Interested parties may submit 
requests for information related to Internet-based commodity sales to 
the Director, Warehouse and Inventory Division, Stop 0553, 1400 
Independence Avenue, SW., Washington, DC 20250-9860.


Sec.  1402.3  Submission of offers, terms, and conditions.

    Offers accepted by CCC will be subject to terms and conditions 
prescribed by CCC. These terms include, among other things, payment by 
wire transfer of funds, certified check or cashiers check before 
delivery of the commodity, removal of the commodity from CCC storage 
within a reasonable period of time, and in sales that require a 
commodity to be used for only a specific purpose, documentation that 
use of the commodity was for only that purpose.


Sec.  1402.4  Information availability.

    The terms and conditions of sale with respect to commodities that 
are not sold through Internet-based marketing service are available 
online. Requests for terms and conditions may be addressed to the 
Director, Warehouse and Inventory Division, Stop 0553, 1400 
Independence Avenue, SW., Washington, DC 20250-9860.


Sec.  1402.5  Late payments.

    If payment is not received by CCC within the period specified in 
the sales contract, interest will be assessed by CCC. If a buyer fails 
to make arrangements for payment according to the provisions of the 
contract, CCC retains the right to terminate the sales contract. If CCC 
terminates the sales contract for default in whole or in part, CCC may 
offer the commodity for sale and the original party will be liable to 
CCC for any losses incurred and damages sustained as a result of the

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party's failure to timely remit payment for the commodity.

    Signed in Washington, DC, on June 29, 2006.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E6-11236 Filed 7-17-06; 8:45 am]
BILLING CODE 3410-05-P