[Federal Register Volume 84, Number 117 (Tuesday, June 18, 2019)]
[Rules and Regulations]
[Pages 28185-28186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12581]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1493
RIN 0551-AA99
Export Credit Guarantee (GSM-102) Program and Facility Guarantee
Program (FGP) Certifications
AGENCY: Foreign Agricultural Service and Commodity Credit Corporation
(CCC), USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule modifies the certifications required to
qualify to participate in the Export Credit Guarantee (GSM-102) Program
and the Facility Guarantee Program (FGP) to make them consistent with
Government-wide debarment and suspension guidelines and U.S. Department
of Agriculture requirements. Specifically, CCC is eliminating the
requirement for participants to make certain certifications with
respect to affiliates.
DATES: This rule is effective June 18, 2019.
ADDRESSES: U.S. Department of Agriculture, Foreign Agricultural
Service, Credit Programs Division, 1400 Independence Ave. SW, Stop
1025, Room 5509, Washington, DC 20250-1025.
FOR FURTHER INFORMATION CONTACT: Amy Slusher, Deputy Director, Credit
Programs Division, 202-720-6211, [email protected].
SUPPLEMENTARY INFORMATION:
Background
On November 18, 2014, CCC published a Final Rule in the Federal
Register (79 FR 68589) revising and amending the regulations that
administer the Export Credit Guarantee (GSM-102) Program. On September
22, 2016, CCC published a Final Rule in the Federal Register (81 FR
65510) revising and amending the regulations that administer the
Facility Guarantee Program (FGP). Both of these final rules
incorporated certifications required of U.S. exporters, U.S. sellers,
U.S. financial institutions and foreign financial institutions applying
to participate in these programs. The certifications for the GSM-102
program are found at 7 CFR 1493.60, and those for the FGP at 7 CFR
1493.250. The certifications are, in part, based on Government-wide
requirements related to suspension and debarment found at 2 CFR part
180 and prohibitions barring delinquent debtors from obtaining Federal
loans, insurance and guarantees (31 CFR part 285). Certain
certifications (at 7 CFR 1493.60(a)(1) through (4) and 7 CFR
1493.250(a)(1) through (4)) require the applicant to certify with
respect to the applicant itself, as well as its ``principals'' and
``affiliates'' (as defined in 2 CFR part 180).
FAS is eliminating the requirement for applicants to make these
certifications with respect to ``affiliates,'' for several reasons.
First, there is no Government-wide or Department of Agriculture
requirement to make these certifications with respect to
``affiliates.'' Neither the government-wide suspension and debarment
regulations at 2 CFR part 180 nor the Department of Agriculture's form
AD-1047 (``Certification Regarding Debarment, Suspension, and Other
Responsibility Matters'') include affiliates. Second, FAS has
determined that the affiliates of program participants generally do not
have a relationship to the applicant's participation in CCC export
credit guarantee programs. Third, the ``affiliate'' certification is
burdensome on U.S. exporters, sellers, and U.S. and foreign financial
institution participants that are large, and often diverse,
organizations with many affiliates. This change will therefore reduce
the burden on program applicants and participants.
Notice and Comment
In general, the Administrative Procedure Act (5 U.S.C. 553)
requires that a notice of proposed rulemaking be published in the
Federal Register and interested persons be given an opportunity to
participate in the rulemaking through submission of written data,
views, or arguments, except when the rule involves a matter relating to
public property, loan, grants, benefits or contracts. The
Administrative Procedure Act also states notice of proposed rulemaking
is not required ``when the agency for good cause finds . . . that
notice and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.'' Because this rule involves two loan
guarantee programs, the regulations for this program are exempt from
the notice and comment provisions of 5 U.S.C. 553. Additionally, the
agency has determined that because this amendment will make the
existing rules at 7 CFR part 1493 consistent with U.S. Government and
Departmental certification requirements and will reduce burden on
participants, notice of proposed rulemaking is unnecessary. It is in
the public interest to implement these changes as soon as possible;
therefore, this final rule is effective when published in the Federal
Register.
Executive Order 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This proposed rule has been determined to be not
significant and was not reviewed by the Office of Management and Budget
(OMB) in conformance with Executive Order 12866.
Executive Order 13175
This rule has been reviewed for compliance with Executive Order
13175, ``Consultation and Coordination with Indian Tribal
Governments.'' Executive Order 13175 requires Federal agencies to
consult and coordinate with tribes on a government-to-government basis
on policies that have tribal implications, including regulations,
legislative comments, proposed legislation, and other policy statements
or actions that have substantial direct effects on one or more Indian
tribes, on the relationship between the Federal Government and Indian
tribes or on the distribution of power and responsibilities between the
Federal government and Indian tribes. FAS has assessed the impact of
this rule on Indian tribes and determined that this rule does not, to
the knowledge of FAS, have tribal implications that required tribal
consultation under Executive Order 13175. If a tribe requests
consultation, FAS will work with USDA Office of Tribal Relations to
ensure meaningful consultation is provided where changes, additions,
and modifications identified herein are not expressly mandated by
Congress.
[[Page 28186]]
Executive Order 13771
Executive Order 13771 directs agencies to reduce regulation and
control regulatory costs and provides that for every new regulation
issued, at least two prior regulations be identified for elimination,
and that the cost of planned regulations be prudently managed and
controlled through a budgeting process. This rule is not an Executive
Order 13771 regulatory action because this rule is not significant
under Executive Order 12866.
List of Subjects in 7 CFR Part 1493
Agricultural commodities, Exports.
Accordingly, for the reasons stated in the preamble, 7 CFR part
1493 is amended as follows:
PART 1493--CCC EXPORT CREDIT GUARANTEE PROGRAMS
0
1. The authority citation for part 1493 continues to read as follows:
Authority: 7 U.S.C. 5602, 5622, 5661, 5662, 5663, 5664, 5676;
15 U.S.C. 714b(d), 714c(f).
0
2. In Sec. 1493.60, paragraphs (a)(1) through (4) are revised to read
as follows:
Sec. 1493.60 Certifications required for program participation.
(a) * * *
(1) The applicant and any of its principals (as defined in 2 CFR
180.995) are not presently debarred, suspended, proposed for debarment,
declared ineligible, or excluded from covered transactions by any U.S.
Federal department or agency;
(2) The applicant and any of its principals (as defined in 2 CFR
180.995) have not within a three-year period preceding this application
been convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public (Federal, State, or local)
transaction or contract under a public transaction; violation of
Federal or State antitrust statues or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records,
making false statements, or receiving stolen property;
(3) The applicant and any of its principals (as defined in 2 CFR
180.995) are not presently indicted for or otherwise criminally or
civilly charged by a governmental entity (Federal, State or local) with
commission of any of the offenses enumerated in paragraph (a)(2) of
this section;
(4) The applicant and any of its principals (as defined in 2 CFR
180.995) have not within a three-year period preceding this application
had one or more public transactions (Federal, State or local)
terminated for cause or default;
* * * * *
0
3. In Sec. 1493.250, paragraphs (a)(1) through (4) are revised to read
as follows:
Sec. 1493.60 Certifications required for program participation.
(a) * * *
(1) The applicant and any of its principals (as defined in 2 CFR
180.995) are not presently debarred, suspended, proposed for debarment,
declared ineligible, or excluded from covered transactions by any U.S.
Federal department or agency;
(2) The applicant and any of its principals (as defined in 2 CFR
180.995) have not within a three-year period preceding this application
been convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public (Federal, State, or local)
transaction or contract under a public transaction; violation of
Federal or State antitrust statues or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records,
making false statements, or receiving stolen property;
(3) The applicant and any of its principals (as defined in 2 CFR
180.995) are not presently indicted for or otherwise criminally or
civilly charged by a governmental entity (Federal, State or local) with
commission of any of the offenses enumerated in paragraph (a)(2) of
this section;
(4) The applicant and any of its principals (as defined in 2 CFR
180.995) have not within a three-year period preceding this application
had one or more public transactions (Federal, State or local)
terminated for cause or default;
* * * * *
Dated: June 10, 2019.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
In concurrence with:
Dated: June 7, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019-12581 Filed 6-17-19; 8:45 am]
BILLING CODE 3410-10-P