[Federal Register Volume 76, Number 50 (Tuesday, March 15, 2011)]
[Notices]
[Pages 13972-13973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5975]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency


United States Warehouse Act; Export Food Aid Commodities 
Licensing Agreement

AGENCY: Farm Service Agency, USDA.

ACTION: Notice and request for comments.

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SUMMARY: The Farm Service Agency (FSA) proposes adding export food aid 
commodities (EFAC) to the agricultural products for which warehouse 
licenses may be issued under the United States

[[Page 13973]]

Warehouse Act (USWA). Through this notice, FSA is providing an 
opportunity for anyone to provide comments on this proposal to offer a 
license for EFAC. EFAC might include corn soy blend, vegetable oil, or 
pulses such as peas, beans and lentils. Current USWA licenses for 
agricultural products include grain, cotton, nuts, cottonseed, and dry 
beans. Warehouse operators that apply voluntarily agree to be licensed, 
observe the rules for licensing, and pay associated user fees.

DATES: We will consider comments that we receive by April 14, 2011.

ADDRESSES: We invite you to submit comments on this notice. In your 
comment, include volume, date, and page number of this issue of the 
Federal Register. You may submit comments by any of the following 
methods:
    E-mail address: Send comments to: [email protected].
    Mail: Patricia Barrett, Warehouse Operations Program Manager, FSA, 
United States Department of Agriculture, STOP 0553, 1400 Independence 
Avenue, SW., Washington, DC 20250-0553.
    Fax: (202) 690-3123.
    Persons with disabilities who require alternative means for 
communication of information for this notice (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD).

FOR FURTHER INFORMATION CONTACT: Patricia Barrett, (202) 720-3877.

SUPPLEMENTARY INFORMATION:
    USWA (7 U.S.C. 241-256) authorizes the Secretary of Agriculture to 
license warehouse operators who store agricultural products; FSA 
administers this authority.
    USWA provides for licensing and inspection of warehouses used to 
store agricultural products, issuance of warehouse receipts, including 
electronic warehouse receipts for all agricultural products, and for 
other purposes.
    USWA licensing program is a voluntary program that is intended to 
protect depositors of agricultural products in licensed warehouses (7 
CFR part 735). The licensing program is based on a written agreement 
outlining terms and conditions for a warehouse operator to qualify for 
licensing and requirements to operate the warehouse in compliance with 
USWA and the regulations.
    USWA requires FSA to notify the public and provide the opportunity 
to comment on agricultural products that are under consideration for a 
warehouse license. FSA is proposing to create a USWA licensing program 
for port and transload facility operators storing EFAC. This proposal 
is in response to the concerns of export food aid providers regarding 
the sanitation and security of agricultural commodities temporarily 
stored and handled in preparation for export under various federal and 
charitable organization export food aid programs. In many USWA 
warehouses, commodities are stored in bulk form and commingled. EFAC 
are typically packaged and ``identity preserved,'' which means that the 
commodity is stored and handled separate from all other commodities. In 
other words, the actual commodity deposited in the warehouse is what 
will be delivered.
    The warehouse examination program is designed to ensure the 
warehouse operator's initial qualification for licensing and continuing 
compliance with the standards of approval and operation. FSA will 
conduct examinations of licensed facilities to determine their 
suitability for proper storage and handling of commodities. The 
examination will include review of warehouse records, pest management 
and control, housekeeping, safety, and security of goods in the care 
and custody of the licensee. The personnel conducting the examinations 
will verify that all commodities are properly marked and recorded in 
the warehouse records, and that commodities are stored in licensed 
space. Facilities must be kept and maintained in sound physical 
condition. In addition, 7 CFR 735.6 provides regulations for suspension 
and revocation of a license for those warehouse operators who do not 
comply with USWA, the regulations, or any licensing or provider 
agreement.
    FSA will review and report on the comments received on this notice. 
The notice and summary of the comments received will be posted to the 
USWA Web site at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=was-ua.
    FSA is inviting you to provide comments to FSA on adding EFAC to 
the list of products for which FSA issues USWA licenses. In particular, 
FSA requests comments on EFAC in response to the following questions:
     Should FSA offer a license under the authority of the 
USWA, for export food aid commodity facility storage and handling?
     What general warehousing and transload facility 
specifications should be used in the approval and continued licensing 
of such storage facilities?
     What operational procedures (i.e. records, sanitation, 
security, insurance, and examinations) should be addressed in a written 
agreement with the warehouse operator?
     What level and type of financial assurance (bond, letter 
of credit) should be required to provide security and protection to 
depositors?
     What fee structure (annual flat rate, hourly, graduated 
rates based on the size of the facility) should be adopted to fund the 
administration of this program?
     Should the scope of the license cover all commodities 
stored in licensed space?
    In addition to this notice, general information about FSA's 
administration of its responsibilities from USWA is available on the 
FSA Web site. Among other things, the information includes a list of 
licensed warehouses.

    Signed at Washington, DC, on March 9, 2011.
Val Dolcini,
Acting Administrator, Farm Service Agency.
[FR Doc. 2011-5975 Filed 3-14-11; 8:45 am]
BILLING CODE 3410-05-P