[Federal Register Volume 85, Number 8 (Monday, January 13, 2020)]
[Rules and Regulations]
[Pages 1731-1747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27965]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 
 ========================================================================
 

  Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Rules 
and Regulations  

[[Page 1731]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1485

RIN 0551-AA97


Market Access Program

AGENCY: Commodity Credit Corporation and Foreign Agricultural Service, 
USDA.

ACTION: Final rule.

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

SUMMARY: The Commodity Credit Corporation (CCC) is revising the Market 
Access Program (MAP) regulations to eliminate the 5-year limit on 
participation by branded products in the program, as required in the 
Agriculture Improvement Act of 2018, and to incorporate changes that 
conform the operation of the program to the requirements in the Uniform 
Guidance and Federal grant-making best practices.

DATES: This rule is effective on January 13, 2020.

FOR FURTHER INFORMATION CONTACT: Curt Alt, (202) 690-4784, 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The MAP is authorized under Section 203 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5623), as amended. The MAP program regulations 
appear at 7 CFR part 1485. The Agriculture Improvement Act of 2018 
(Pub. L. 115-334), which reauthorized the program for fiscal years 
2019-2023, increased the program's flexibility and usefulness to 
stakeholders by eliminating the 5-year limit on participation by 
branded products in the program and making minor legislative changes to 
the program. In addition, FAS is updating the regulations to bring the 
operation of the program into conformance with the requirements in the 
Uniform Guidance. Additional changes, such as the flexibility to 
announce program funding opportunities on the Grants.gov portal and 
edits to bring more consistency between the Market Access Program (MAP) 
and the Foreign Market Development (FMD) program, are desirable to 
bring the administration of the program into line with current best 
practices in Federal grant-making.

Notice and Comment

    This rule is being issued as a final rule without prior notice and 
opportunity for comment. The Administrative Procedure Act (5 U.S.C. 
553) exempts rules ``relating . . . to public property, loans, grants, 
benefits, or contracts'' from the statutory requirements for prior 
notice and opportunity for comment and publication of the rule not less 
than 30 days before its effective date (5 U.S.C. 553(a)(2)). 
Accordingly, this final rule is effective when published in the Federal 
Register.

Catalog of Federal Domestic Assistance

    The program covered by this regulation is listed in the Catalog of 
Federal Domestic Assistance (CFDA) under the following FAS CFDA number: 
10.601, Market Access Program.

E-Government Act Compliance

    FAS is committed to complying with the E-Government Act of 2002 (44 
U.S.C. chapter 36), to promote the use of the internet and other 
information technologies to provide increased opportunities for 
citizens' access to Government information and services, and for other 
purposes.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988, ``Civil Justice Reform.'' This rule does not preempt State or 
local laws, regulations, or policies unless they present an 
irreconcilable conflict with this rule. This rule will not be 
retroactive.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with officials of State and local 
governments that would be directly affected by the proposed Federal 
financial assistance. The objectives of the Executive Order are to 
foster an intergovernmental partnership and a strengthened federalism 
by relying on State and local processes for the State and local 
government coordination and review of proposed Federal financial 
assistance and direct Federal development. This rule will not directly 
affect State or local governments, and, for this reason, it is excluded 
from the scope of Executive Order 12372.

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 final 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.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs has designated this 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

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 require tribal 
consultation under Executive Order 13175. If a tribe requests 
consultation, FAS will work with USDA Office of Tribal Relations to 
ensure

[[Page 1732]]

meaningful consultation is provided where changes, additions, and 
modifications identified herein are not expressly mandated by Congress.

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 1485

    Agricultural commodities, Exports.

    For the reasons discussed in the preamble, CCC revises 7 CFR part 
1485 to read as follows:

PART 1485--GRANT AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS 
FOR U.S. AGRICULTURAL COMMODITIES

Subpart A--[Reserved]
Subpart B--Market Access Program
Sec.
1485.10 General purpose and scope.
1485.11 Definitions.
1485.12 Participation eligibility.
1485.13 Application process.
1485.14 Application review and formation of agreements.
1485.15 Operational procedures for brand programs.
1485.16 Contribution and cost share rules.
1485.17 Reimbursement rules.
1485.18 Reimbursement procedures.
1485.19 Advances.
1485.20 Employment practices.
1485.21 Financial management.
1485.22 Reports.
1485.23 Evaluation.
1485.24 Compliance reviews and notices.
1485.25 Failure to make required contribution or cost share.
1485.26 Submissions.
1485.27 Disclosure of program information.
1485.28 Ethical conduct.
1485.29 Subawarding procedures.
1485.30 Property standards.
1485.31 Anti-fraud requirements.
1485.32 Program income.
1485.33 Amendments.
1485.34 Subrecipients.
1485.35 Audit requirements.
1485.36 Suspension and termination of agreements.
1485.37 Noncompliance with an agreement.
1485.38 Paperwork reduction requirements.

    Authority: 7 U.S.C. 5623, 5662-5663

Subpart A--[Reserved]

Subpart B--Market Access Program


Sec.  1485.10  General purpose and scope.

    (a) This subpart sets forth the general terms and conditions 
governing the Commodity Credit Corporation's (CCC) operation of the 
Market Access Program (MAP).
    (b)(1) The Office of Management and Budget (OMB) issued guidance on 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards in 2 CFR part 200. In 2 CFR 400.1, the 
U.S. Department of Agriculture (USDA) adopted OMB's guidance in 
subparts A through F of 2 CFR part 200, as supplemented by 2 CFR part 
400, as USDA policies and procedures for uniform administrative 
requirements, cost principles, and audit requirements for Federal 
awards.
    (2) The OMB guidance at 2 CFR part 200, as supplemented by 2 CFR 
part 400 and this subpart, applies to the Market Access Program (MAP) 
Program.
    (3) In addition to the provisions of this subpart, other 
regulations that are generally applicable to grants and cooperative 
agreements of USDA, including the applicable regulations set forth in 2 
CFR chapters I, II, and IV, also apply to the MAP, to the extent that 
these regulations do not directly conflict with the provisions of this 
subpart. The provisions of the CCC Charter Act (15 U.S.C. 714 et seq.) 
and any other statutory or regulatory provisions that are generally 
applicable to CCC also apply to the MAP.
    (c) Under the MAP, CCC may provide grants to eligible U.S. entities 
to conduct certain marketing and promotion activities aimed at 
developing, maintaining, or expanding commercial export markets for 
U.S. agricultural commodities. MAP Participants may receive assistance 
for either generic or brand promotion activities. While activities 
generally take place overseas, reimbursable activities may also take 
place in the United States. CCC expects all activities that occur in 
the United States for which MAP reimbursement is sought to develop, 
maintain, or expand the commercial export market for the relevant U.S. 
agricultural commodity in accordance with the MAP Participant's 
approved MAP program.
    (d) The MAP generally operates on a reimbursement basis.
    (e) CCC's policy is to ensure that benefits generated by MAP 
agreements are broadly available throughout the relevant agricultural 
sector and that no single entity gains an undue advantage or sole 
benefit from program activities. CCC also endeavors to enter into MAP 
agreements covering a broad array of agricultural commodity sectors. 
The MAP is administered by the Foreign Agricultural Service (FAS) 
acting on behalf of CCC.


Sec.  1485.11  Definitions.

    For purposes of this subpart the following definitions apply:
    Activity means a specific foreign market development effort 
undertaken by a MAP Participant.
    Administrative expenses or costs means expenses or costs of 
administering, directing, and controlling an organization that is a MAP 
Participant. Generally, this would include expenses or costs such as 
those related to:
    (1) Maintaining a physical office (including, but not limited to: 
Rent, office equipment, office supplies, office d[eacute]cor, office 
furniture, computer hardware and software, maintenance, extermination, 
parking, and business cards);
    (2) Personnel (including, but not limited to: Salaries, benefits, 
payroll taxes, individual insurance, and training);
    (3) Communications (including, but not limited to: Phone expenses, 
internet, mobile phones, personal digital assistants, email, mobile 
email devices, postage, courier services, television, radio, and walkie 
talkies);
    (4) Management of an organization or unit of an organization 
(including, but not limited to: Planning, supervision, supervisory 
travel, teambuilding, recruiting, and hiring);
    (5) Utilities (including, but not limited to: Sewer, water, and 
energy);
    (6) Professional services (including, but not limited to: 
Accounting expenses, financial services, and investigatory services).
    Affiliate means any partnership, association, company, corporation, 
trust, or any other such party in which the Participant has an 
investment, other than a mutual fund.
    Agreement means a legally binding grant entered into between CCC 
and a MAP applicant setting forth the terms and conditions to implement 
approved activities under the MAP program, including any subsequent 
amendments to such agreement.
    Approval letter means a document by which CCC informs an applicant 
that its MAP application for a program year has been approved for 
funding. This letter may also approve specific activities and contain 
terms and conditions in addition to the agreement. This letter requires 
a countersignature by the MAP Participant before it becomes effective.

[[Page 1733]]

    Attach[eacute]/Counselor means the FAS employee representing USDA 
interests in the foreign country in which promotional activities are 
conducted.
    Brand participant means a small-sized U.S. for-profit entity or a 
U.S. agricultural cooperative that owns the brand(s) of the eligible 
commodity to be promoted or has the exclusive rights to use such 
brand(s) and that is participating in the MAP brand promotion program 
of another MAP Participant. This definition does not include any U.S. 
agricultural cooperatives that are MAP Participants that apply for MAP 
funds to implement their own brand programs.
    Brand promotion means an activity that involves the exclusive or 
predominant use of a single U.S. company name, or the logo or brand 
name of a single U.S. company, or the brand of a U.S. agricultural 
cooperative, or any activity undertaken by a MAP Participant in the 
brand program.
    Constraint means a condition in a particular country or region that 
needs to be addressed in order to develop, expand, or maintain exports 
of a specific eligible commodity.
    Contribution means the funds, e.g., money, personnel, materials, 
services, facilities, or supplies, provided by a MAP Participant, State 
agency or entities in the MAP Participant's industry (``U.S. 
industry'') in support of a MAP Participant's generic promotion program 
as well as funds provided by the MAP Participant, U.S. industry, or 
State agency in support of related promotion activities in the markets 
covered by the MAP Participant's agreement.
    Cost share means the funds, e.g., money, personnel, materials, 
services, facilities, or supplies, provided by a MAP Participant, 
entities in the MAP Participant's industry, or State agency in support 
of an approved activity.
    Credit memo means a commercial document, also known as a credit 
memorandum, issued by the MAP Participant to a commercial entity that 
owes the MAP Participant a certain sum. A credit memo is used when the 
MAP Participant owes the commercial entity a sum less than the amount 
the entity owes the Participant. The credit memo reflects an offset of 
the amount the MAP Participant owes the entity against the amount the 
entity owes to the MAP Participant.
    Demonstration projects means activities involving the erection or 
construction of a structure or facility or the installation of 
equipment.
    Eligible commodity means any agricultural commodity or product 
thereof, excluding tobacco, that is comprised of at least 50 percent by 
weight, exclusive of added water, of agricultural commodities grown or 
raised in the United States.
    Expenditure means either payment via the transfer of funds or 
offset reflected in a credit memo in lieu of a transfer of funds.
    FAS website means a website maintained by FAS providing information 
on the MAP. It is currently accessible at www.fas.usda.gov/programs/market-access-program-map.
    Foreign subrecipient means a foreign entity that a MAP Participant 
works with, in accordance with this subpart, to promote the export of 
an eligible commodity under the MAP program.
    Generic promotion means an activity that is not a brand promotion 
but, rather, promotes an eligible commodity generally. A generic 
promotion activity may include the promotion of a foreign brand (i.e., 
a brand owned primarily by foreign interests and being used to market a 
commodity or product in a foreign market), if the foreign brand uses 
the promoted eligible commodity or product from multiple U.S. 
suppliers. A generic promotion activity may also involve the use of 
specific U.S. company names, logos, or brand names. However, in that 
case, the MAP Participant must ensure that all U.S. companies seeking 
to promote such eligible commodity in the market have an equal 
opportunity to participate in the activity and that at least two U.S. 
companies participate. In addition, an activity that promotes separate 
items from multiple U.S. companies will be considered a generic 
promotion only if the promotion of the separate items maintains a 
unified theme (i.e., a dominant idea or motif) and style and is 
subordinate to the promotion of the generic theme.
    MAP is the acronym for the Market Access Program.
    MAP Participant or Participant means an entity that has entered 
into an agreement with CCC.
    Market means a country or region targeted by an activity.
    Notification means a document from the MAP Participant by which the 
MAP Participant proposes to CCC changes to the activities and/or 
funding levels in an approved agreement and/or approval letter.
    Product samples means a representative part of a larger whole 
promoted commodity or group of promoted commodities. Product samples 
include all forms of a promoted commodity (e.g., fresh or processed), 
independent of the ultimate utilization of the sample. Product samples 
might be used in support of international marketing activities 
including, but not limited to: Displays, food process testing, cooking 
demonstrations, or trade and consumer tastings.
    Program notice means documents that CCC issues for informational 
purposes. These notices are currently made available electronically 
through the FAS website. These notices have no legal effect. They are 
intended to alert MAP Participants of various aspects of CCC's current 
administration of the MAP program. For example, CCC issues notices to 
alert Participants of applicable Federal pay scale rates and lists of 
economic and trade sanctions against certain foreign countries.
    Program year means, unless otherwise agreed to in writing between 
CCC and a MAP Participant, a 12-month period during which a MAP 
Participant can undertake activities consistent with this subpart and 
its agreement and approval letter with CCC. This is also known as a 
project period, which in multiple year awards will be divided into 
budget periods.
    Promoted commodity means an eligible commodity the sale of which is 
the intended result of a promotional activity under the MAP.
    Sales and trade relations expenditures (STRE) means expenditures 
made on breakfast, lunch, dinner, receptions, and refreshments at 
approved activities; miscellaneous courtesies such as checkroom fees, 
taxi fares, and tips for approved activities; and decorations for a 
special promotional occasion that is part of an approved activity.
    Sales team means a group of individuals engaged in an approved 
activity intended to result in specific sales.
    Small-sized entity means a U.S. commercial entity that meets the 
small business size standards published at 13 CFR part 121, Small 
Business Size Regulations.
    SRTG is the acronym for State Regional Trade Group. An SRTG is a 
nonprofit association of state-funded agricultural promotion agencies.
    Supergrade means a salary level above the reimbursable salary range 
generally allowable under the MAP, which CCC may approve on a case by 
case basis. This salary level is available only for certain non-U.S. 
employees who direct MAP Participants' overseas offices.
    Temporary contractor means a contractor, typically a consultant or 
other highly paid professional, that is hired on a short-term basis to 
assist in the performance of an activity.
    Trade team means a group of individuals engaged in an approved

[[Page 1734]]

activity intended to promote the interests of an entire agricultural 
sector rather than to result in specific sales by any of its members.
    Unified Export Strategy (UES) means a holistic marketing plan that 
outlines an applicant's proposed foreign market development activities 
and requested funding under each of the FAS market development 
programs.
    Unified Export Strategy (UES) system means an online internet 
system maintained by FAS through which applicants may currently apply 
to the MAP and other FAS market development programs. The system is 
currently accessible at https://apps.fas.usda.gov/ues/webapp/. FAS may 
prescribe a different system through which applicants may apply to MAP 
and will announce such system in the applicable Notice of Funding 
Opportunity (NOFO).
    U.S. agricultural commodity means any agricultural commodity of 
U.S. origin, including food, feed, fiber, forestry product, livestock, 
insects, and fish harvested from a U.S. aquaculture farm or harvested 
by a vessel (as defined in Title 46 of the United States Code) in 
waters that are not waters (including the territorial sea) of a foreign 
country, and any product thereof.
    U.S. for-profit entity means an organized or incorporated firm, 
association, or other entity that is located and doing business for 
profit in the United States and is engaged in the export or sale of an 
eligible commodity.


Sec.  1485.12  Participation eligibility.

    (a) To participate in the MAP, an entity shall be:
    (1) A nonprofit U.S agricultural trade organization;
    (2) A nonprofit SRTG;
    (3) A U.S. agricultural cooperative; or
    (4) A State agency.
    (b) CCC will enter into an agreement only for the promotion of an 
eligible commodity.
    (c) FAS may set forth specific eligibility information, including 
any factors or priorities that will affect the eligibility of an 
applicant or application for selection, in the full text of the 
applicable NOFO posted on the U.S. Government website for grant 
opportunities.


Sec.  1485.13  Application process.

    (a) General application requirements. CCC will periodically 
announce through a NOFO that it is accepting applications for 
participation in the MAP for a specified program year. This 
announcement will be posted on the U.S. Government website for grant 
opportunities. Applications shall be submitted in accordance with the 
terms and requirements specified in the announcement and in this part. 
Currently, applicants are encouraged to submit applications through the 
UES system but are not required to do so. Applicants may apply to 
conduct a generic promotion program and/or a brand promotion program 
that provides MAP funds to brand participants for branded promotion. An 
applicant that is a U.S. agricultural cooperative may also apply for 
funds to conduct its own brand promotion program.
    (b) Universal identifier and System for Award Management (SAM). In 
accordance with 2 CFR part 25, each entity that applies to the MAP 
program and does not qualify for an exemption under 2 CFR 25.110 must:
    (1) Be registered in the SAM prior to submitting an application or 
plan;
    (2) Maintain an active SAM registration with current information at 
all times during which it has an active Federal award or an application 
or plan under consideration by CCC; and
    (3) Provide its DUNS number, or a unique identifier designated as a 
DUNS replacement, in each application or plan it submits to CCC.
    (c) Reporting subaward and executive compensation information. In 
accordance with 2 CFR part 170, each entity that applies to the MAP 
program and does not qualify for an exception under 2 CFR 170.110(b) 
must ensure it has the necessary processes and systems in place to 
comply with the applicable reporting requirements of 2 CFR part 170 
should it receive MAP funding.


Sec.  1485.14  Application review and formation of agreements.

    (a) General. (1) CCC will, subject to the availability of funds, 
approve those applications that it considers to present the best 
opportunity for developing, maintaining, or expanding export markets 
for U.S. agricultural commodities. CCC will review all proposals for 
eligibility and completeness. CCC will evaluate and score each proposal 
against the factors described in the NOFO. The purpose of this review 
is to identify meritorious proposals, recommend an appropriate funding 
level for each proposal, and submit the proposals and funding 
recommendations to appropriate officials for decision. CCC may, when 
appropriate to the subject matter of the proposal, request the 
assistance of other U.S. Government experts in evaluating the merits of 
a proposal.
    (2) When considering eligible nonprofit U.S. trade organizations, 
CCC may weigh which organizations have the broadest producer 
representation and affiliated industry participation of the commodity 
being promoted. CCC may require that an applicant participate in the 
MAP through another MAP Participant or applicant. All reviewers will be 
required to sign a conflict of interest form, and when conflicts of 
interests are identified the reviewer will be recused from the 
objective review process.
    (b) Application review criteria. CCC follows results-oriented 
management principles and considers the following criteria when 
assessing the likelihood of success of the applications it receives, 
determining which applications to recommend for approval, and 
developing preliminary recommended funding levels:
    (1) Strategic planning (25%);
    (2) Program implementation (25%); and
    (3) Program results and evaluation (50%).
    (c) Allocation factors. CCC determines final funding levels after 
allocating available funds to approved applications on the basis of 
criteria that will be fully described in each program year's MAP 
announcement. Generally, extensions will not be allowable.
    (d) Approval decision--(1) Approval decision. CCC will approve 
those applications that it determines best satisfy the criteria and 
factors specified in paragraphs (a), (b), and (c) of this section.
    (2) Notification of decision. CCC will notify each applicant in 
writing of the final disposition of its application. CCC will send an 
agreement, an approval letter, and a signature card to each approved 
applicant. The agreement and the approval letter will outline which 
activities and budgets are approved and will specify any special terms 
and conditions applicable to a MAP Participant's program, including any 
requirements with respect to contribution, cost share and program 
evaluations. An applicant that decides to accept the terms and 
conditions contained in the agreement and the approval letter must so 
indicate by having its Chief Executive Officer (CEO) or designee sign 
the agreement and the approval letter and submit these to CCC. Final 
agreement shall occur when the agreement and the approval letter are 
signed by both parties. The agreement, approval letter, and this 
subpart shall establish the terms and conditions of a MAP agreement 
between CCC and the approved applicant.
    (e) Signature cards. The MAP Participant shall designate at least 
two individuals in its organization to sign agreements and amendments, 
approval letters, reimbursement claims, and

[[Page 1735]]

advance requests. The MAP Participant shall submit the signature card 
signed by those designated individuals and by the MAP Participant's CEO 
to CCC prior to the start of the program year. The Participant shall 
immediately notify CCC of any changes in signatories (e.g., removal or 
addition of individuals, name changes, etc.), and shall submit a 
revised signature card accordingly.
    (f) UES ID and passwords. CCC will provide each MAP Participant 
with IDs and passwords for the UES system, as necessary. MAP 
Participants shall protect these IDs and passwords in accordance with 
USDA's information technology policies. MAP Participants shall 
immediately notify CCC whenever a person who possesses the ID and 
password information no longer needs such information or a person who 
is not authorized gains such information.
    (g) Annual size certification. A MAP Participant through which 
small-sized U.S. for-profit entities and/or U.S. agricultural 
cooperatives are participating in the MAP program shall obtain annual 
certifications from all such entities that they are small-sized U.S. 
entities or U.S. agricultural cooperatives as defined in these 
regulations. The Participant shall retain these certifications in 
accordance with the recordkeeping requirements of this subpart.
    (h) Changes to activities and funding--(1) Adding a new activity. 
(i) A MAP Participant may not conduct a new activity without first 
obtaining an approved activity budget for such change. To request 
approval of such activity budget, the MAP Participant shall submit a 
notification to CCC.
    (ii) A notification for a new activity shall provide an activity 
justification and identify any related adjustments to the approved 
strategic plan, including changes in the market, constraint, or 
opportunity that the activity proposes to address. The notification 
shall contain the activity description, the proposed budget, and a 
justification for the transfer of funds.
    (iii) After receipt of the notification, CCC will inform the MAP 
Participant via the UES system whether the requested budget is 
approved.
    (2) Modifying existing activities and their funding levels. (i) A 
MAP Participant desiring to increase the funding level for existing, 
approved activities addressing a single constraint or opportunity by 
more than $25,000 or 25 percent of the approved funding level, 
whichever is greater, must first submit a notification explaining the 
adjustment to CCC before making such change.
    (ii) A MAP Participant may make significant adjustments below that 
threshold to the funding levels for existing, approved activities 
without prior notification to CCC, but only if it submits a 
notification explaining the adjustments to CCC no later than 30 
calendar days after the change. Minor adjustments to existing, approved 
activities and/or funding levels do not require notification.
    (iii) Notifications shall describe the activity and any changes to 
the activity, the existing funding level, or the proposed funding level 
and shall include a justification for the transfer of funds, if 
applicable.


Sec.  1485.15  Operational procedures for brand programs.

    (a) Where CCC approves an application by a MAP Participant to run a 
brand promotion program that will include brand participants, the MAP 
Participant shall establish brand program operational procedures. The 
MAP Participant annually shall submit to CCC for approval its proposed 
brand program operational procedures for such program year. CCC will 
notify all new and existing MAP Participants in writing in each 
Participant's approval letter and through the FAS website as to 
applicable submission dates for brand program operation procedures. 
Such procedures shall include, at a minimum, a brand program 
application, application procedures, application review criteria, brand 
participant eligibility requirements, a participation agreement, 
reimbursement requirements, compliance requirements, reporting and 
recordkeeping requirements, employment practices, financial management 
requirements, contracting procedures, and evaluation requirements.
    (b) The MAP Participant shall not enter into any participation 
agreements with brand participants nor shall it implement any MAP brand 
activities for the applicable program year unless and until CCC has 
communicated in writing its approval of the proposed operational 
procedures to the MAP Participant.
    (c) Participation agreements between MAP Participants and brand 
participants. Where CCC approves a MAP Participant's application to run 
a brand promotion program that will include brand participants, the MAP 
Participant shall enter into participation agreements with brand 
participants. These agreements must:
    (1) Specify a time period for such brand promotion and require that 
all brand promotion expenditures be made within the MAP Participant's 
approved program year;
    (2) Make no allowance for extension or renewal;
    (3) Limit reimbursable expenditures to those made in countries and 
for activities approved in the brand participant's activity plan;
    (4) Specify the percentage of promotion expenditures that will be 
reimbursed, reimbursement procedures, and documentation requirements;
    (5) Include a written certification by the brand participant that 
it either owns the brand of the product it will promote or has 
exclusive rights to promote the brand in each of the countries in which 
promotion activities will occur;
    (6) Require: That all product labels, promotional material, and 
advertising will identify the origin of the eligible commodity as 
``American,'' ``Product of the United States of America,'' ``Product of 
the U.S.,'' ``Product of the U.S.A.,'' ``Product of America,'' ``Grown 
in the United States of America,'' ``Grown in the U.S.,'' ``Grown in 
the U.S.A.,'' ``Grown in America,'' ``Made in the United States of 
America,'' ``Made in the U.S.,'' ``Made in the U.S.A.,'' ``Made in 
America,'' or product of, grown in, or made in any state or territory 
of the United States of America spelled out in its entirety, or other 
U.S. regional designation if approved in advance by CCC; that such 
origin identification will be conspicuously displayed in a manner 
easily observed as identifying the origin of the product; and that such 
origin identification will conform, to the extent possible, to the U.S. 
standard of 1/6 inch (.42 centimeters) in height based on the lower 
case letter ``o.'' The use of these terms as a descriptor or in the 
name of the product (e.g., Texas style chili, Bob's American Pizza) 
does not satisfy the product origin requirement. Phrases ``product 
of,'' ``grown in,'' or ``made in'' are encouraged, but not required. A 
MAP Participant may request an exemption from this requirement on a 
case by case basis. All such requests shall be in writing and include 
justification satisfactory to CCC that this labeling requirement would 
hinder a MAP Participant's promotional efforts. CCC will determine, on 
a case by case basis, whether sufficient justification exists to grant 
an exemption from the labeling requirement. In addition, CCC may 
temporarily waive this requirement where CCC has determined that such 
labeling will likely harm sales rather than help them. Such 
determinations will be announced to MAP Participants via a program 
notice issued on FAS' website;
    (7) Include a written certification by the brand participant that 
it is either a small-sized entity as defined in this

[[Page 1736]]

subpart or a U.S. agricultural cooperative;
    (8) Require that the brand participant submit to the MAP 
Participant a statement certifying that any Federal funds received will 
supplement, but not supplant, any private or third-party funds or other 
contribution or cost share to program activities; and
    (9) Require the brand participant to maintain all original records 
and documents relating to program activities for five calendar years 
following the end of the applicable program year and make such records 
and documents available upon request to authorized officials of the 
U.S. Government.


Sec.  1485.16  Contribution and cost share rules.

    (a) A MAP Participant implementing a MAP generic promotion program 
shall make contributions equal to at least 10 percent of the total 
amount reimbursed by CCC for all approved generic promotion activities 
undertaken by the MAP Participant. The contribution amount will be 
reflected in the award budget.
    (b) A MAP Participant conducting its own brand promotion or a brand 
participant that is participating in the MAP brand promotion program of 
another MAP Participant shall provide funds for the branded activity in 
an amount that is at least equivalent to the amount of assistance they 
get from MAP for that activity.
    (c) A MAP Participant must use its own funds and may not use MAP 
funds to pay any administrative costs of the MAP Participant's U.S. 
office(s), including legal fees, except as set forth in this subpart. 
Where the MAP Participant uses its own funds to pay for administrative 
costs, such costs may be counted in calculating the amount of 
contribution or cost share the MAP Participant contributes to MAP 
generic or brand promotion programs.
    (d)(1) In calculating the amount of contribution or cost share that 
it will make, and the contribution or cost share that the U.S. industry 
(including expenditures to be made by entities in the applicant's 
industry in support of the entities' related promotion activities in 
the markets covered by the applicant's application) or State or local 
agency will make, the MAP applicant may include the costs (or such 
prorated costs) listed under paragraph (d)(2) of this section if:
    (i) Expenditures are necessary and reasonable for accomplishment of 
an approved activity;
    (ii) Expenditures are not included as cost share for any other 
Federal award;
    (iii) Expenditures are not paid by the Federal Government under 
another Federal award, except where the Federal statute authorizing a 
program specifically provides that Federal funds made available for 
such program can be applied to matching or cost sharing requirements of 
other Federal programs; and
    (iv) The contribution or cost share is made during the period 
covered by the agreement.
    (2) Subject to paragraph (d)(1) of this section, as well as the 
cost principles in 2 CFR part 200 to the extent these principles do not 
directly conflict with the provisions of this subpart, the following 
are eligible contribution or cost share:
    (i) Cash;
    (ii) Compensation paid to personnel;
    (iii) The cost of acquiring materials, supplies, or services;
    (iv) The cost of office space, including legal fees;
    (v) A reasonable and justifiable proportion of general 
administrative costs and overhead;
    (vi) Payments for indemnity and fidelity bond expenses;
    (vii) The cost of business cards that target a foreign audience;
    (viii) Fees for office parking;
    (ix) The cost of subscriptions that are of a technical, economic, 
or marketing nature and that are relevant to the approved activities of 
the MAP Participant;
    (x) The cost of activities conducted overseas;
    (xi) Credit card fees;
    (xii) The cost of any independent evaluation or audit that is not 
required by CCC to ensure compliance with agreement or regulatory 
requirements;
    (xiii) The cost of giveaways, awards, prizes, and gifts;
    (xiv) The cost of product samples;
    (xv) Fees for participating in U.S. Government sponsored or 
endorsed export promotion activities;
    (xvi) The cost of air and local travel in the United States related 
to a foreign market development effort;
    (xvii) Transportation and shipping costs;
    (xviii) The cost of displays and promotional materials;
    (xix) Advertising costs;
    (xx) Reasonable travel costs and expenses related to undertaking a 
foreign market development activity;
    (xxi) The costs associated with trade shows, seminars, and STRE 
conducted in the United States, and costs associated with entertainment 
conducted in the United States where such entertainment costs have a 
programmatic purpose and are authorized in the agreement and/or the 
approval letter or are authorized by prior written approval of CCC;
    (xxii) Product research that is undertaken to benefit an industry 
and has a specific export application;
    (xxiii) Other administrative expenses (e.g., supervisory travel 
from the U.S. to an overseas office); and
    (xxiv) The cost of any activity expressly listed as reimbursable in 
this subpart.
    (3) The following are not eligible contribution or cost share:
    (i) Any portion of salary or compensation of an individual who is 
the target of a promotional activity;
    (ii) Any expenditure, including that portion of salary and time 
spent, related to promoting membership in the Participant's 
organization;
    (iii) Any land costs other than allowable costs for office space;
    (iv) The cost of refreshments and related equipment provided to 
office staff;
    (v) The cost of insuring articles owned by private individuals;
    (vi) The cost of any arrangement that has the effect of reducing 
the selling price of a U.S. agricultural commodity;
    (vii) The cost of product development, product modifications, or 
product research;
    (viii) Slotting fees or similar sales expenditures;
    (ix) Funds, services, capital goods, or personnel provided by any 
U.S. Government agency;
    (x) The value of any services generated by a MAP Participant or 
third party that involve no expenditure by the MAP Participant or third 
party, e.g., free publicity;
    (xi) Membership fees in clubs and social organizations; and
    (xii) Any expenditure for an activity prior to CCC's approval of 
that activity.
    (4) CCC shall determine, at CCC's discretion, whether any cost not 
expressly listed in this section may be included by the MAP Participant 
as an eligible contribution or cost share.


Sec.  1485.17  Reimbursement rules.

    (a) A MAP Participant may seek reimbursement for an eligible 
expenditure if:
    (1) The expenditure was necessary and reasonable for the 
performance of an approved activity; and
    (2) The Participant has not been and will not be reimbursed for 
such expenditure by any other source.
    (b) Subject to paragraphs (a) and (d) of this section, as well as 
the cost principles in 2 CFR 200 to the extent these principles do not 
directly conflict with the provisions of this subpart, for

[[Page 1737]]

either brand or generic promotion activities, CCC will reimburse, in 
whole or in part, the cost of:
    (1) Production and placement of advertising, including in print, 
electronic media, billboards, or posters, which may include advertising 
the availability of price discounts, except that advertising associated 
with a coupon or price discount for the MAP-promoted product is not 
reimbursable. If advertising is related to both coupons or price 
discounts for products other than the MAP Participant's promoted 
products as well as for MAP-promoted products, expenditures for such 
advertising will not be reimbursed in whole or in part (e.g., 
expenditures may not be prorated and submitted for reimbursement). 
Electronic media includes, but is not limited to, radio, television, 
electronic mail, internet, telephone, text messaging, and podcasting;
    (2) Production and distribution of banners, recipe cards, table 
tents, shelf talkers, and other similar point of sale materials;
    (3) Direct mail advertising;
    (4) In-store and food service promotions, product demonstrations to 
the trade and to consumers, and distribution of product samples (but 
not the purchase of the product samples), including shipment of samples 
or other program materials from the United States to foreign countries;
    (5) Temporary displays and rental of space for temporary displays;
    (6) Expenditures, other than travel expenditures, associated with 
seminars and educational training, whether conducted in the United 
States or outside the United States, including space rental, equipment 
rental, and duplication of seminar materials;
    (7) Subject to paragraph (b)(18) of this section, non-travel 
expenditures, including participation fees, booth construction, 
transportation of related materials, rental of space and equipment, and 
duplication of related printed materials, associated with retail, 
trade, and consumer exhibits and shows, whether held outside or inside 
the United States. However, non-travel expenditures associated with 
retail, trade, and consumer exhibits and shows held inside the United 
States are reimbursable only if the exhibit or show is included on the 
list of approved U.S. exhibits and shows announced via a program notice 
issued on FAS' website and the exhibit or show is one that the MAP 
Participant has not participated in within the last three years using 
funds from a source other than the MAP. Retail, trade, and consumer 
exhibits and shows held inside the United States may be considered for 
inclusion on the list of approved exhibits and shows if they are:
    (i) A food or agricultural exhibit or show with no less than 30% of 
exhibitors selling food or agricultural products; and
    (ii) An international exhibit or show that targets buyers, 
distributors, and the like from more than one foreign country and no 
less than 15% of its visitors are from countries other than the host 
country;
    (8) Subject to paragraph (b)(18) of this section, international 
travel expenditures (with airfare limited to the full fare economy 
rate), including per diem and any fees for passports, visas, 
inoculations, and modifying the originally purchased airline ticket, as 
allowed under the U.S. Federal Travel Regulations (41 CFR parts 300 
through 304), for no more than two representatives of a single brand 
participant (or MAP Participant directly running its own brand program) 
to exhibit their company's (or cooperative's) products at a retail, 
trade, or consumer exhibit or show held outside the United States. 
Representatives may include employees and board members of private 
companies, employees or members of cooperatives, or any broker, 
consultant, or marketing representative contracted by the company or 
cooperative to represent the company or cooperative in sales 
transactions;
    (9) Subscriptions that are of a technical, economic, or marketing 
nature and that are relevant to the approved activities of the MAP 
Participant;
    (10) Demonstrators, interpreters, translators, receptionists, and 
similar temporary workers who help with the implementation of 
individual promotional activities, such as trade shows, in-store 
promotions, food service promotions, and trade seminars;
    (11) Giveaways, awards, prizes, gifts, and other similar 
promotional materials, subject to such reimbursement limitation as CCC 
may determine and announce in writing to MAP Participants via a program 
notice issued on FAS' website. Reimbursement is available only when:
    (i) The items are described in detail with a per unit cost in an 
approved strategic plan; and
    (ii) Distribution of the promotional item is not contingent upon 
the consumer, or other target audience, purchasing a good or service to 
receive the promotional item;
    (12) The design and production of packaging, labeling, or origin 
identification to be used during the program year in which the 
expenditure is made, if such packaging, labeling, or origin 
identification is necessary to meet the importing requirements of a 
foreign country;
    (13) The design, production, and distribution of coupons for 
products other than the MAP Participant's promoted products. If such 
activities include both coupons or price discounts for products other 
than the MAP Participant's promoted products as well as for MAP-
promoted products, expenditures for such activities will not be 
reimbursed in whole or in part (e.g., expenditures may not be prorated 
and submitted for reimbursement);
    (14) An audit of a MAP Participant as required by 2 CFR part 200, 
subpart F if the MAP is the MAP Participant's largest source of Federal 
funding;
    (15) The translation of written materials as necessary to carry out 
approved activities;
    (16) Expenditures associated with developing, updating, and 
servicing websites on the internet that clearly target a foreign 
audience;
    (17) International travel expenditures (with airfare limited to the 
full fare economy rate), including per diem and any fees for passports, 
visas, inoculations, and modifying the originally purchased airline 
ticket, as allowed under the U.S. Federal Travel Regulations (41 CFR 
parts 300 through 304), incurred for a foreign trade mission conducted 
outside the United States that is an activity under an approved branded 
program and that has met the following conditions:
    (i) Trade mission travel for company (or cooperative) 
representatives was identified as a separate approved activity in the 
MAP Participant's UES;
    (ii) The trade mission included representatives, as defined in 
paragraph (b)(8) of this section, from a minimum of five different 
companies (or cooperatives), and no more than two representatives from 
each participating company (or cooperative);
    (iii) The appropriate FAS overseas office supported the trade 
mission by dedicating meaningful funding or other resources (such as 
facilities or staff time) to the activity; and
    (iv)(A) The MAP Participant with the approved brand program 
produced an itinerary or agenda for the trade mission that demonstrated 
that company (or cooperative) representatives would be engaged for a 
minimum of 6 hours per day (except for the first and last days of the 
mission) in trade mission activities that include, at a minimum, each 
of the following:

[[Page 1738]]

    (1) A product showcase where the FAS overseas office approved an 
invitation list of qualified buyers;
    (2) Pre-arranged one-on-one business meetings; and
    (3) Evaluation and feedback sessions with FAS staff and trade 
mission sponsors.
    (B) Reimbursement is conditional on the MAP Participant having 
notified in writing the Attach[eacute]/Counselor in the destination 
country in advance of the travel;
    (18) Where USDA has sponsored or endorsed a U.S. pavilion at a 
retail, trade, or consumer exhibit or show, whether held outside or 
inside the United States, MAP funds may be used to reimburse the travel 
and/or non-travel expenditures of only those MAP Participants located 
within the U.S. pavilion. Such expenditures must also adhere to the 
standard terms and conditions of the U.S. pavilion organizer. Upon 
written request, CCC may temporarily waive this subsection, on a case 
by case basis, where the trade show is segregated into product 
pavilions or a company's distributor or importer is located outside the 
U.S. pavilion. Such waiver will be provided to the MAP Participant in 
writing; and
    (19) Contracts with U.S.-based organizations when the only 
contracted service such organizations provide to a MAP Participant is 
carrying out a specific market promotion activity in the United States 
directed to a foreign audience (e.g., a trade mission of foreign buyers 
coming to the United States to visit U.S. exporters). Such contracts 
may be reimbursable as a direct promotional expense. If a U.S.-based 
organization provides administrative services to the MAP Participant's 
domestic home office during a program year, any direct promotional 
services such organization provides to the Participant, whether for the 
Participant's domestic or overseas offices, during the same program 
year are not reimbursable.
    (c) Subject to paragraphs (a) and (d) of this section, as well as 
the cost principles in 2 CFR part 200 to the extent these principles do 
not directly conflict with the provisions of this subpart, but for 
generic promotion activities only, CCC will also reimburse, in whole or 
in part, the cost of:
    (1) Compensation and allowances for housing, educational tuition, 
and cost of living adjustments paid to a U.S. citizen employee or a 
U.S. citizen contractor stationed overseas, provided such benefits are 
granted under established written policies, except CCC will not 
reimburse that portion of:
    (i) The total of compensation and allowances that exceed 125 
percent of the level of a GS-15 Step 10 salary for U.S. Government 
employees; or
    (ii) Allowances that exceed the rate authorized for U.S. Embassy 
personnel.
    (2) Approved Supergrade salaries for non-U.S. citizen employees and 
non-U.S. contractors stationed overseas;
    (3) Compensation of non-U.S. citizen staff employees or non-U.S. 
contractors stationed overseas, subject to the following limitations:
    (i) Where there is a local U.S. Embassy Foreign Service National 
(FSN) salary plan, CCC will not reimburse any portion of such 
compensation that exceeds the compensation prescribed for the most 
comparable position in the FSN salary plan, except for approved 
Supergrades; or
    (ii) Where an FSN salary plan does not exist, CCC will not 
reimburse any portion of such compensation that exceeds locally 
prevailing levels, which the MAP Participant shall document by a salary 
survey or other means, except for approved Supergrades;
    (4) A retroactive salary adjustment for non-U.S. citizen staff 
employees or non-U.S. contractors stationed overseas that conforms to a 
change in FSN salary plans, effective as of the date of such change;
    (5) Accrued annual leave as of the time employment is terminated or 
as of such time as required by local law;
    (6) Overtime paid to clerical staff of approved MAP-funded overseas 
offices;
    (7) Temporary contractor fees for contractors stationed overseas, 
except CCC will not reimburse any portion of any such fee that exceeds 
the daily gross GS-15, Step 10 salary for U.S. Government employees in 
effect on the date the fee is earned, unless a bidding process reveals 
that such a contractor is not available at or below that salary rate;
    (8)(i) Subject to paragraph (b)(18) of this section, international 
travel expenditures, including per diem and any fees for passports, 
visas, inoculations, and modifying the originally purchased airline 
ticket, for activities held outside the United States or in the United 
States, as allowed under the U.S. Federal Travel Regulations (41 CFR 
parts 300 through 304), except that if the activity is participation in 
a retail, trade, or consumer exhibit or show held inside the United 
States, international travel expenditures are reimbursable only if the 
exhibit or show is included on the list of approved U.S. exhibits and 
shows announced via a program notice issued on FAS' website and the 
exhibit or show is one that the Participant has not participated in 
within the last three years using funds from a source other than the 
MAP. Retail, trade, and consumer exhibits and shows held inside the 
United States may be considered for inclusion on the list of approved 
exhibits and shows if they are:
    (A) A food or agricultural exhibit or show with no less than 30% of 
exhibitors selling food or agricultural products; and
    (B) An international exhibit or show that targets buyers, 
distributors, and the like from more than one foreign country and no 
less than 15% of its visitors are from countries other than the host 
country.
    (ii) CCC generally will not reimburse any portion of air travel, 
including any fees for modifying the originally purchased ticket, in 
excess of the full fare economy rate. If a traveler flies in business 
class or a different premium class, the basis for reimbursement will be 
the full fare economy class rate for the same flight and the MAP 
Participant shall provide documentation establishing such full fare 
economy class rate to support its reimbursement claim. If economy class 
is not offered for the same flight or if the traveler flies on a 
charter flight, the basis for reimbursement will be the average of the 
full fare economy class rate for flights offered by three different 
airlines between the same points on the same date and the MAP 
Participant shall provide documentation establishing such average of 
the full fare economy class rates to support its reimbursement claim.
    (iii) In very limited circumstances, the MAP Participant may be 
reimbursed for air travel up to the business class rate (i.e., a 
premium class rate other than the first class rate). Such circumstances 
are:
    (A) Regularly scheduled flights between the origin and destination 
points do not offer economy class (or equivalent) airfare and the MAP 
Participant receives written documentation to that effect at the time 
the tickets are purchased;
    (B) Business class air travel is necessary to accommodate an 
eligible traveler's disability. Such disability must be substantiated 
in writing by a physician; or
    (C) An eligible traveler's origin and/or destination are outside of 
the continental United States and the scheduled flight time, beginning 
with the scheduled departure time and ending with the scheduled arrival 
time, including stopovers and changes of planes, exceeds 14 hours. In 
such cases, per diem and other allowable expenses will also be 
reimbursable for the day of arrival. However, no expenses will be 
reimbursable for a rest period or for any non-work days (e.g., 
weekends, holidays, personal leave, etc.)

[[Page 1739]]

immediately following the date of arrival. A stopover is the time a 
traveler spends at an airport, other than the originating or 
destination airport, which is a normally scheduled part of a flight. A 
change of planes is the time a traveler spends at an airport, other 
than the originating or destination airport, to disembark from one 
flight and embark on another. All travel should follow a direct or 
usually traveled route. Under no circumstances should a traveler select 
flights in a manner that extends the scheduled flight time to beyond 14 
hours in part to secure eligibility for reimbursement of business class 
travel;
    (iv) Alternatively, in lieu of reimbursing up to the business class 
rate in such circumstances, CCC will reimburse economy class airfare 
plus per diem and other allowable travel expenses related to a rest 
period of up to 24 hours, either en route or upon arrival at the 
destination. For a trip with multiple destinations, each origin/
destination combination will be considered separately when applying the 
14-hour rule for eligibility of reimbursement of business class travel 
or rest period expenses;
    (9) Automobile mileage at the local U.S. Embassy rate or rental 
cars while in travel status;
    (10) Other allowable expenditures while in travel status as 
authorized by the U.S. Federal Travel Regulations (41 CFR parts 300 
through 304);
    (11) Organization costs for overseas offices approved in 
agreements. Such costs include incorporation fees, brokers' fees, fees 
to attorneys, accountants, or investment counselors, whether or not 
employees of the organization, incurred in connection with the 
establishment or reorganization of the overseas office, and rent, 
utilities, communications originating overseas, office supplies, 
accident liability insurance premiums (provided the types and extent 
and cost of coverage are in accordance with the MAP Participant's 
policy and sound business practice), and routine accounting and legal 
services required to maintain the overseas office;
    (12) With prior CCC approval, the purchase, lease, or repair of, or 
insurance premiums for, capital goods that have an expected useful life 
of at least one year, such as furniture, equipment, machinery, 
removable fixtures, draperies, blinds, floor coverings, computer 
hardware and software, and portable electronic communications devices 
(including mobile phones, wireless email devices, and personal digital 
assistants);
    (13) Such premiums for health or accident insurance and other 
benefits for foreign national employees that the employer is required 
by law to pay, provided that such benefits are granted under 
established written policies;
    (14) Accident liability insurance premiums for facilities used 
jointly with third-party participants for MAP activities or for MAP-
funded travel of third-party participants, provided the types and 
extent and cost of coverage are in accordance with the MAP 
Participant's policy and sound business practice;
    (15) Market research, including research to determine the types of 
products that are desired in a market;
    (16) Independent evaluations and audits, if not otherwise required 
by CCC, to ensure compliance with program requirements;
    (17) Legal fees to obtain advice on the host country's labor laws;
    (18) Employment agency fees;
    (19) STRE incurred outside of the United States, and STRE incurred 
in conjunction with an approved activity taking place within the United 
States with prior written approval from CCC. MAP Participants are 
required to use the appropriate American Embassy representational 
funding guidelines for breakfasts, lunches, dinners, and receptions. 
MAP Participants may exceed Embassy guidelines only when they have 
received written authorization from the FAS Attach[eacute]/Counselor at 
the Embassy. The amount of unauthorized STRE expenses that exceed the 
guidelines will not be reimbursed. MAP Participants must pay the 
difference between the total cost of STRE events and the appropriate 
amount as determined by the guidelines. For STRE incurred in the United 
States, the MAP Participant should provide, in its request for 
approval, the basis for determining its proposed expenses;
    (20) Evacuation payments (safe haven) and shipment and storage of 
household goods and motor vehicles for relocations lasting at least 12 
months;
    (21) U.S. office(s) administrative support expenses for the 
National Association of State Departments of Agriculture, the SRTGs, 
and the Intertribal Agriculture Council;
    (22) Non-travel expenditures associated with conducting 
international staff conferences held either in or outside the United 
States;
    (23) Subject to paragraph (b)(18) of this section, domestic travel 
expenditures, as allowed under the U.S. Federal Travel Regulations (41 
CFR parts 300 through 304), for international retail, trade, and 
consumer exhibits and shows conducted in the United States. Domestic 
travel expenses to such a show or exhibit are covered only if the 
exhibit or show is included on the list of approved U.S. exhibits and 
shows announced via a program notice issued on FAS' website and the 
exhibit or show is one that the Participant has not participated in 
within the last three years using funds from a source other than the 
MAP. Retail and trade exhibits and shows held inside the United States 
may be considered for inclusion on the list of approved exhibits and 
shows if they are:
    (i) A food or agricultural exhibit or show with no less than 30% of 
exhibitors selling food or agricultural products; and
    (ii) An international exhibit or show that targets buyers, 
distributors, and the like from more than one foreign country and no 
less than 15% of its visitors are from countries other than the host 
country;
    (24) Domestic travel expenditures, as allowed under the U.S. 
Federal Travel Regulations (41 CFR parts 300 through 304), for seminars 
and educational training conducted in the United States;
    (25) Domestic travel expenditures, as allowed under the U.S. 
Federal Travel Regulations (41 CFR parts 300 through 304), for one home 
office MAP Participant employee, one MAP Participant board member, or a 
state department of agriculture employee paid by the MAP Participant, 
when such individual accompanies foreign trade missions or technical 
teams while traveling in the United States where the following 
conditions are met:
    (i) Such trade missions or technical team visits are identified in 
the MAP Participant's UES;
    (ii) Such trade missions or technical team visits have been 
approved by CCC; and
    (iii) The MAP-sponsored traveler submits a follow-up trip report to 
CCC that includes the following:
    (A) Purpose for the individual's participation;
    (B) Any pre-arranged business meetings;
    (C) Itinerary and/or agenda for the trip; and
    (D) Feedback from sponsors and trade mission/technical team members 
on the success of the trip.
    (26) Approved demonstration projects;
    (27) Expenditures related to copyright, trademark, or patent 
registration, including attorney fees;
    (28) Rental or lease expenditures for storage space for program-
related materials;
    (29) Business cards that target a foreign audience;
    (30) Expenditures associated with developing, updating, and 
servicing

[[Page 1740]]

websites on the internet that: Contain a message related to exporting 
or international trade, include a discernible ``link'' to the FAS/
Washington homepage or an FAS overseas homepage, and have been 
specifically approved by FAS. Expenditures related to websites or 
portions of websites that are accessible only to an organization's 
members are not reimbursable. Reimbursement claims for websites that 
include any sort of ``members only'' sections must be prorated to 
exclude the costs associated with those areas subject to restricted 
access;
    (31) Expenditures not otherwise prohibited from reimbursement that 
are associated with activities held in the United States or abroad 
designed to improve market access by specifically addressing temporary, 
permanent, or impending technical barriers to trade that prohibit or 
threaten U.S. exports of agricultural commodities;
    (32) Membership fees in professional, industry-related 
organizations;
    (33) Travel costs for dependents, as allowed in 2 CFR part 200 
(e.g., for travel of duration of six months or more with prior approval 
of CCC);
    (34) That portion of airtime for wireless phones that is devoted to 
program activities and monthly service fees prorated at the proportion 
of program-related airtime to total airtime; and
    (35) Production and distribution of publications.
    (d) CCC will not reimburse any cost of:
    (1) Forward year financial obligations, such as severance pay, 
attributable to employment of foreign nationals;
    (2) Expenses, fines, settlements, judgments, or payments relating 
to legal suits, challenges, or disputes, except as otherwise allowed in 
2 CFR part 200;
    (3) The design and production of packaging, labeling, or origin 
identification, except as specifically allowed in this subpart;
    (4) Product development, product modification, or product research;
    (5) Product samples;
    (6) Slotting fees or similar sales expenditures;
    (7) The purchase, construction, or lease of space for permanent, 
non-mobile displays, i.e., displays that are constructed to remain 
permanently in the same location beyond one program year. However, CCC 
may, at its discretion, reimburse the construction or purchase of 
permanent displays on a case by case basis, if the Participant sought 
and received prior written approval from CCC of such construction or 
purchase;
    (8) Rental, lease, or purchase of warehouse space, except for 
storage space for program-related material;
    (9) Coupon redemption or price discounts of the promoted commodity;
    (10) Refundable deposits or advances;
    (11) Giveaways, awards, prizes, gifts, and other similar 
promotional materials in excess of the limitation that CCC will 
determine. Such determination will be announced in writing via a 
program notice issued on FAS' website;
    (12) Alcoholic beverages that are not a promoted commodity and part 
of an approved promotional activity;
    (13) The purchase, lease (except for use in authorized travel 
status), or repair of motor vehicles;
    (14) Travel of applicants for employment interviews;
    (15) Unused non-refundable airline tickets or associated penalty 
fees, except where travel was restricted by U.S. Government action or 
advisory;
    (16) Independent evaluations or audits, including evaluations or 
audits of the activities of a subcontractor, if CCC determines that 
such a review is needed in order to confirm past or to ensure future 
agreement or regulatory compliance;
    (17) Any arrangement that has the effect of reducing the selling 
price of an agricultural commodity;
    (18) Goods, services, and salaries of personnel provided by a third 
party;
    (19) Membership fees in clubs and social organizations;
    (20) Indemnity and fidelity bonds, except as otherwise allowed in 2 
CFR part 200;
    (21) Fees for participating in U.S. Government sponsored 
activities, other than trade fairs, shows, and exhibits;
    (22) Business cards that target a U.S. domestic audience;
    (23) Seasonal greeting cards;
    (24) Office parking fees;
    (25) Subscriptions to publications that are not of a technical, 
economic, or marketing nature or that are not relevant to the approved 
activities of the MAP Participant;
    (26) U.S. office(s) administrative expenses, including 
communication costs, except as noted in paragraph (c)(21) of this 
section and except that usage costs for communications devices incurred 
while on reimbursable international or domestic travel for approved MAP 
brand or generic promotion activities are reimbursable as eligible 
travel expenditures as allowed under the U.S. Federal Travel 
Regulations (41 CFR parts 300 through 304);
    (27) Any expenditure on an activity that includes any derogatory 
reference or comparison to other U.S. agricultural commodities;
    (28) Payment of U.S. and foreign employees' or contractors' share 
of personal taxes, except where a foreign country's laws require the 
MAP Participant to pay such employees' or contractors' share;
    (29) Any expenditure made for an activity prior to CCC's approval 
of that activity;
    (30) Contributions to a contingency reserve or any similar 
provision made for events the occurrence of which cannot be foretold 
with certainty as to time, intensity, or with an assurance of their 
happening;
    (31) Credit card fees;
    (32) Entertainment, e.g., amusements, diversions, cover charges, 
personal gifts, or tickets to theatrical or sporting events;
    (33) Refreshments, or related equipment, for office staff; and
    (34) Expenditures associated with a MAP Participant's creation or 
review of their fraud prevention program, contracting procedures, or 
brand program operational procedures.
    (e) Paragraphs (e)(1) through (4) of this section shall apply to 
the approval of Supergrades.
    (1) With respect to individuals who are not U.S. citizens and who 
are hired by MAP Participants either as employees or contractors acting 
as employees, CCC will not ordinarily reimburse any portion of such 
individual's compensation that exceeds the compensation prescribed for 
the most comparable position in the FSN salary plan applicable to the 
country in which the employee or contractor works. However, a MAP 
Participant may seek a higher level of reimbursement for a non-U.S. 
citizen employee or contractor who will be employed as a country 
director or regional director by requesting that CCC approve that 
employee or contractor as a Supergrade.
    (2) To request approval of a Supergrade, the MAP Participant shall 
provide CCC with a detailed description of both the duties and 
responsibilities of the position and the qualifications and background 
of the employee or contractor concerned. The Participant shall also 
justify why the comparable FSN salary level is insufficient.
    (3) Where a non-U.S. citizen employee or contractor will be 
employed as a country director, the MAP Participant may request 
approval for a ``Supergrade I'' salary level, equivalent to a single 
grade increase over the existing top grade of the FSN salary plan. The 
Supergrade I and its step increases are calculated by increasing each 
of the steps in the top FSN grade by the percentage difference between 
the second highest and the

[[Page 1741]]

highest grade in the FSN salary plan. Where the non-U.S. citizen 
employee or contractor will be employed as a regional director, with 
responsibility for activities and/or offices in more than one country, 
the MAP Participant may request approval for a ``Supergrade II'' salary 
level, which is calculated relative to a Supergrade I in the same way 
the latter is calculated relative to the highest grade in the FSN 
salary plan.
    (4) A U.S. citizen with dual citizenship with another foreign 
country or countries shall not be considered a non-U.S. citizen.
    (f) For a brand promotion activity, CCC will reimburse no more than 
50 percent of the total eligible expenditures made on that activity.
    (g) CCC will reimburse for expenditures made after the conclusion 
of a MAP Participant's program year provided:
    (1) The activity was approved by CCC prior to the end of the 
program year;
    (2) The activity was completed within 30 calendar days following 
the end of the program year; and
    (3) All expenditures were made for the activity within 6 months 
following the end of the program year.
    (h) A MAP Participant shall not use MAP funds for any activity, or 
any expenses incurred by the MAP Participant prior to the date 
specified in the approval letter or after the date the agreement is 
suspended or terminated, except as otherwise permitted by CCC.
    (i) Except as otherwise provided in this subpart, MAP-funded travel 
shall conform to the U.S. Federal Travel Regulations (41 CFR parts 300 
through 304) and 2 CFR part 200, and MAP-funded air travel shall 
conform to the requirements of the Fly America Act (49 U.S.C. 40118). 
The MAP Participant shall notify the Attach[eacute]/Counselor in the 
destination country(ies) in writing in advance of any proposed travel. 
The timing of such notice should be far enough in advance to enable the 
Attach[eacute]/Counselor to schedule appointments, make preparations, 
or otherwise provide any assistance being requested. Failure to provide 
advance notification of travel generally will result in disallowance of 
the expenses related to the travel, unless CCC determines it was 
impractical to provide such notification.
    (j) CCC may determine, at CCC's discretion, whether any cost not 
expressly listed in this section will be reimbursed.


Sec.  1485.18  Reimbursement procedures.

    (a) Following the implementation of a project for which CCC has 
agreed to provide funding, a Participant may submit claims for 
reimbursement of eligible expenses incurred in implementing MAP 
activities, to the extent that CCC has agreed to pay such expenses. Any 
changes to approved activities must be approved in writing by CCC 
before any reimbursable expenses associated with the change can be 
incurred. A Participant will be reimbursed after CCC reviews the claim 
and determines that it is complete.
    (b) All claims for reimbursement shall be submitted by the MAP 
Participant's U.S. office to CCC. CCC will make all payments to 
Participants in U.S. dollars. FAS will initiate payment within 30 days 
after receipt of the billing, unless the billing is improper.
    (c) Participants will be authorized to submit requests for 
reimbursement or advance at least monthly when electronic fund 
transfers (EFTs) are not used, and as frequently as desired when 
electronic transfers are used, in accordance with the provisions of the 
Electronic Fund Transfer Act (15 U.S.C. 1693-1693r).
    (d) CCC will not reimburse claims submitted later than 6 months 
after the end of a MAP Participant's program year.
    (e) If CCC overpays a reimbursement claim, the MAP Participant 
shall repay CCC within 30 calendar days of such overpayment the amount 
of the overpayment either by submitting a check payable to CCC or by 
offsetting its next reimbursement claim. The MAP Participant shall make 
such payment in U.S. dollars, unless otherwise approved in advance by 
CCC.
    (f) If a MAP Participant receives a reimbursement or offsets an 
advanced payment which is later disallowed, the MAP Participant shall 
repay CCC within 30 calendar days of such disallowance the amount 
disallowed either by submitting a check payable to CCC or by offsetting 
its next reimbursement claim. The MAP Participant shall make such 
payment in U.S. dollars, unless otherwise approved in advance by CCC.
    (g) MAP funds may be expended by MAP Participants only on 
legitimate, approved activities as set forth in the agreement and 
approval letter. If a MAP Participant discovers that MAP funds have not 
been properly spent, it shall notify CCC and shall within 30 calendar 
days of its discovery repay CCC the amount owed either by submitting a 
check payable to CCC or by offsetting its next reimbursement claim. The 
MAP Participant shall make such payment in U.S. dollars, unless 
otherwise approved in advance by CCC.
    (h) The MAP Participant shall report any actions that may have a 
bearing on the propriety of any claims for reimbursement in writing to 
the appropriate Attach[eacute]/Counselor and its U.S. office shall 
report such actions in writing to the appropriate FAS Division 
Director.


Sec.  1485.19  Advances.

    (a) Policy. In general, CCC operates the MAP on a reimbursable 
basis.
    (b) Exception. A MAP Participant may request an advance of MAP 
funds from CCC for generic promotion activities, provided the MAP 
Participant meets the criteria for advance payments in 2 CFR part 200. 
CCC will not approve any request for an advance submitted after the end 
of a MAP Participant's program year. At any given time, total payments 
advanced shall not exceed 40 percent of a MAP Participant's total 
approved generic activity budget for the program year. CCC will not 
advance funds to a MAP Participant for brand promotion activities. When 
approving a request for an advance, CCC may require the MAP Participant 
to carry adequate fidelity bond coverage when the absence of such 
coverage is considered to create an unacceptable risk to the interests 
of the MAP. Whether an ``unacceptable risk'' exists in a particular 
situation will depend on a number of factors, such as, for example, the 
Participant's history of performance in the MAP, the Participant's 
perceived financial stability and resources, and any other factors 
presented in the particular situation that may reflect on the 
Participant's responsibility or the riskiness of its activities.
    (c) Interest. A MAP Participant shall deposit and maintain all 
funds advanced by CCC in an insured account in the United States. The 
account shall be interest-bearing, unless the exceptions in 2 CFR part 
200 apply. Interest earned by the MAP Participant on funds advanced by 
CCC is not program income. Up to $500 of interest earned per year may 
be retained by the MAP Participant for administrative expenses. Any 
additional interest earned on MAP advances shall be remitted annually 
to the appropriate entity as required in 2 CFR part 200.
    (d) Refunds due CCC. A MAP Participant shall fully expend all 
advances on approved generic promotion activities within 90 calendar 
days after the date of disbursement by CCC. By the end of the 90 
calendar days, the MAP Participant must submit reimbursement claims to 
offset the advance and submit a check made payable to CCC for any 
unexpended balance. The MAP Participant shall make such payment in U.S. 
dollars, unless otherwise approved in advance by CCC.

[[Page 1742]]

Sec.  1485.20  Employment practices.

    (a) A MAP Participant shall enter into written contracts with all 
overseas employees who are paid in whole or in part with MAP funds and 
shall ensure that all terms, conditions, and related formalities of 
such contracts conform to governing local law.
    (b) A MAP Participant shall, in its overseas offices, conform its 
office hours, work week, and holidays to local law and to the custom 
generally observed by U.S. commercial entities in the local business 
community.
    (c) A MAP Participant may pay salaries or fees in any currency 
(U.S. or foreign) in conformance with contract specifications. 
Participants should consult local laws regarding currency restrictions.


Sec.  1485.21  Financial management.

    (a) A MAP Participant shall implement and maintain a financial 
management system that conforms to generally accepted accounting 
principles and complies with the standards in 2 CFR part 200.
    (b) A MAP Participant shall institute internal controls and provide 
written guidance to commercial entities participating in its activities 
to ensure their compliance with these regulations.
    (c) A MAP Participant shall retain all records concerning a MAP 
program transaction for a period of five years after completion of the 
transaction and permit authorized officials of the U.S. Government to 
have full and complete access, for such five-year period, to such 
records. These records shall include all documents related to 
employment of any employees whose salaries are reimbursed in whole or 
in part with MAP funds, whether such employees are based in the United 
States or overseas, such as employment applications, contracts, 
position descriptions, leave records, salary changes, and all records 
pertaining to contractors.
    (d) A MAP Participant shall also maintain adequate documentation 
related to the proper disposition of all personal property having a 
useful life of more than one year and an acquisition cost of $500 or 
more purchased by the Participant and for which the Participant is 
reimbursed, in whole or in part, with MAP funds.
    (e) A MAP Participant shall maintain its records of expenditures, 
contributions, and cost share in a manner that allows it to provide 
information by program year, activity plan, country or region (as 
applicable), activity number, and cost category. Such records shall 
include copies of:
    (1) Receipts for all STRE (actual vendor invoices or restaurant 
checks, rather than credit card receipts);
    (2) Receipts for any other program-related expenditure in excess of 
a minimum level that CCC shall determine and announce in writing to all 
MAP Participants via a program notice issued on the FAS website. 
Receipts for all actual M&IE reimbursements must be maintained, 
regardless of the amount;
    (3) The exchange rate used to calculate the dollar equivalent of 
expenditures made in a foreign currency and the basis for such 
calculation;
    (4) Reimbursement claims;
    (5) An itemized list of claims charged to each of the MAP 
Participant's MAP accounts;
    (6) Documentation, with accompanying English translation, 
supporting each reimbursement claim, including evidence to support the 
financial transactions, such as canceled checks, receipted paid bills, 
contracts, purchase orders, per diem calculations, travel vouchers, and 
credit memos; and
    (7)(i) Each MAP Participant must keep records documenting all 
claimed contributions and cost share, to include:
    (A) Copies of invoices or receipts for expenses paid by the U.S. 
industry or State agency and not reimbursed by the MAP Participant for 
the joint activity, or
    (B) If invoices are not available, an itemized statement from the 
U.S. industry or State agency as to what costs it incurred pursuant to 
the joint activity, or
    (C) If neither of the foregoing is available, a statement from the 
U.S. industry or State agency as to what goods and services it 
provided, or
    (D) If none of the foregoing are available, a memo to the files of 
the MAP Participant's estimate of what contribution or cost share was 
made by the U.S. industry or State agency, item by item, and the method 
used to assign a value to each.
    (ii) The documentation required in paragraph (e)(7)(i) of this 
section must include the dates, purpose, and location of the activity 
for which the cash or in-kind items were claimed as a contribution or 
cost share, who conducted the activity, the participating groups or 
individuals, and the method of computing the claimed contribution or 
cost share. MAP Participants must retain and make available for 
compliance reviews and audits documentation related to claimed 
contribution or cost share.
    (f) Upon request, a MAP Participant shall provide documents 
supporting reimbursement claims to CCC. CCC may deny a claim for 
reimbursement if the claim is not supported by adequate documentation.


Sec.  1485.22  Reports.

    (a) Participants are required to submit regular financial and 
performance reports in accordance with their agreement. Reporting 
requirements and formats for the required financial and performance 
reports will be specified in the agreement between CCC and the 
Participant.
    (b)(1) In addition to the information required in 2 CFR 
200.328(b)(2), a Participant's performance reports must include 
pertinent information regarding the Participant's progress, measured 
against established indicators, baselines, and targets, towards 
achieving the expected results specified in the agreement. This 
reporting must include, for each performance indicator, a comparison of 
actual accomplishments with the baseline and the targets established 
for the period. When actual accomplishments deviate significantly from 
targeted goals, the Participant must provide an explanation in the 
report.
    (2) A Participant must ensure the accuracy and reliability of the 
performance data submitted to FAS in performance reports. At any time 
during the period of performance of the agreement, FAS may review the 
Participant's performance data to determine whether it is accurate and 
reliable. The Participant must comply with all requests made by FAS or 
an entity designated by FAS in relation to such reviews.
    (c) All final performance reports will be made available to the 
public.
    (d) Not later than 45 calendar days after the completion of travel 
(other than local travel), a MAP Participant shall submit a trip 
report. The report must be submitted to the appropriate Attach[eacute]/
Counselor(s) and must include the name(s) of the traveler(s), purpose 
of travel, itinerary, names and affiliations of contacts, and a brief 
summary of findings, conclusions, recommendations, and specific 
accomplishments.
    (e) Not later than 90 calendar days after the end of its program 
year, a MAP Participant shall submit a report on any research conducted 
pursuant to the approved MAP program.
    (f) If requested by FAS, a Participant must provide to FAS 
additional information or reports relating to the agreement.
    (g) If a Participant requires an extension of a reporting deadline, 
it must ensure that FAS receives an extension request at least five 
business days prior to the reporting deadline. FAS may decline to 
consider a request

[[Page 1743]]

for an extension that it receives after this time period. FAS will 
consider requests for reporting deadline extensions on a case by case 
basis and will make a decision based on the merits of each request. FAS 
will consider factors such as unforeseen or extenuating circumstances 
and past performance history when evaluating requests for extensions.


Sec.  1485.23  Evaluation.

    (a)(1) The Government Performance and Results Act (GPRA) of 1993 (5 
U.S.C. 306; 31 U.S.C. 1105, 1115-1119, 3515, 9703-9704) requires 
performance measurement of Federal programs, including the MAP. 
Evaluation of the MAP's effectiveness will depend on a clear statement 
by Participants of the constraints and opportunities facing U.S. 
exports, goals to be met within a specified time, schedule of 
measurable milestones for gauging success, plan for achievement, and 
assessment of results of activities at regular intervals. The overall 
goal of the MAP and of individual Participants' programming is to 
achieve or maintain sales that would not have occurred in the absence 
of MAP funding. A MAP Participant that can demonstrate such sales, 
taking into account extenuating factors beyond the Participant's 
control, will have met the overall objective of the GPRA and the need 
for evaluation.
    (2) Evaluation is an integral element of program planning and 
implementation, providing the basis for the strategic plan. The 
evaluation results guide the development and scope of a MAP 
Participant's program, contribute to program accountability, and 
provide evidence of program effectiveness.
    (b) A MAP Participant shall complete at least one program 
evaluation each year. A program evaluation is a review of the MAP 
Participant's entire program, or an appropriate portion of the program 
as agreed to by the MAP Participant and CCC, to determine the 
effectiveness of the MAP Participant's strategy in meeting specified 
goals. The actual scope and timing of the program evaluation shall be 
determined by the MAP Participant and CCC and specified in the approval 
letter. A MAP Participant may contract with an independent evaluator to 
satisfy this requirement, although CCC reserves the right to have 
direct input and control over the design, scope, and methodology of any 
such evaluation, including direct contact with and provision of 
guidance to the independent evaluator. A MAP Participant shall submit, 
via a cover letter to CCC, an executive summary that assesses the 
program evaluation's findings and recommendations and proposed changes 
in program strategy or design as a result of the evaluation. In 
addition to the requirements set forth in 2 CFR part 200, a program 
evaluation shall contain:
    (1) The name of the party conducting the evaluation;
    (2) The scope of the evaluation;
    (3) A concise statement of the market constraint(s)/
opportunity(ies) and the goals specified in the approved strategic 
plan;
    (4) A description of the evaluation methodology;
    (5) A description of additional export sales achieved, including 
the ratio of additional export sales in relation to the MAP 
Participant's program funding received;
    (6) A summary of the findings, including an analysis of the 
strengths and weaknesses of the program(s); and
    (7) Recommendations for future programs.
    (c) MAP Participants conducting a branded program must also 
complete a brand promotion evaluation. A brand promotion evaluation is 
a review of the U.S. and foreign commercial entities' export sales to 
determine whether the activity achieved the goals specified in the 
approved MAP program. This evaluation shall be completed and submitted 
to CCC no later than 6 months following the end of the Participant's 
program year.
    (d) On an annual basis, or more often when appropriate or required 
by CCC, a MAP Participant shall complete and submit program success 
stories. CCC will announce to all MAP Participants the detailed 
requirements for completing and submitting program success stories.


Sec.  1485.24  Compliance reviews and notices.

    (a) USDA staff may conduct compliance reviews of the Participant's 
activities under this program to ensure compliance with this subpart, 
applicable Federal laws and regulations, and the terms of the 
agreements and approval letters. Participants shall cooperate fully 
with relevant USDA staff conducting compliance reviews and shall comply 
with all requests from USDA staff to facilitate the conduct of such 
reviews. Program funds spent inappropriately or on unapproved 
activities must be returned to CCC.
    (b) Any project or activity funded under the program is subject to 
review or audit at any time during the course of implementation or 
after the completion of the project.
    (c) Upon conclusion of the compliance review, USDA staff will 
provide a written compliance report to the Participant. The compliance 
report will detail any instances where it appears that the Participant 
is not complying with any of the terms or conditions of the agreement, 
approval letter, or the applicable laws and regulations. The report 
will also specify if it appears that CCC may be entitled to recover 
funds from the Participant and will explain the basis for any recovery 
of funds from the Participant. If, as a result of a compliance review, 
CCC determines that further review is needed in order to ensure 
compliance with the requirements of the program, CCC may require the 
Participant to contract for an independent audit.
    (d) In addition, CCC may notify a Participant in writing at any 
time if CCC determines that CCC may be entitled to recover funds from 
the Participant. CCC will explain the basis for any recovery of funds 
from the Participant in the written notice. The Participant shall, 
within 30 calendar days of the date of the notice, repay CCC the amount 
owed either by submitting a check payable to CCC or by offsetting its 
next reimbursement claim. The Participant shall make such payment in 
U.S. dollars, unless otherwise approved in advance by CCC. If, however, 
a Participant notifies CCC within 30 calendar days of the date of the 
written notice that the Participant intends to file an appeal pursuant 
to the provisions of this subpart, the amount owed to CCC by the 
Participant is not due until the appeal procedures are concluded and 
CCC has made a final determination as to the amount owed.
    (e) The fact that a compliance review has been conducted by USDA 
staff does not signify that a Participant is in full compliance with 
its agreement, approval letter, and/or applicable laws and regulations.
    (f) For a Participant response to compliance report:
    (1) A Participant shall, within 60 calendar days of the date of the 
issuance of a compliance report, submit a written response to CCC. The 
response may include additional documentation for consideration or a 
request for reconsideration of any finding along with supporting 
justification. If the Participant does not wish to contest the 
compliance report, the response shall include any money owed to CCC, 
which may be returned by submitting a check payable to CCC or by 
offsetting a reimbursement claim. The Participant shall make any 
payments in U.S. dollars, unless otherwise approved in advance by CCC. 
CCC, at its discretion, may extend the period for response.

[[Page 1744]]

    (2) After reviewing the response, CCC shall determine whether the 
Participant owes any funds to CCC and will inform the Participant in 
writing of the basis for the determination. CCC may initiate action to 
collect such amount by providing the Participant a written demand for 
payment of the debt pursuant to debt settlement policies and 
procedures, 7 CFR part 1403.
    (g) For Participant appeals of CCC determinations:
    (1) Within 30 calendar days of the date of the issuance of a 
determination, the Participant may appeal the determination by making a 
request in writing that includes the basis for such reconsideration. 
The Participant may also request a hearing.
    (2) If the Participant requests a hearing, CCC will set a date and 
time for the hearing. The hearing will be an informal proceeding. A 
transcript will not ordinarily be prepared unless the Participant bears 
the cost of a transcript; however, CCC may, at its discretion, have a 
transcript prepared at CCC's expense.
    (3) CCC will base its final determination upon information 
contained in the administrative record. The Participant must exhaust 
all administrative remedies contained in this section before pursuing 
judicial review of a determination by CCC.


Sec.  1485.25  Failure to make required contribution or cost share.

    A MAP Participant's required contribution or cost share will be 
specified in the approval letter. If the MAP Participant's required 
contribution or cost share is specified as a dollar amount and the MAP 
Participant does not make the required contribution or cost share, the 
MAP Participant shall pay to CCC in dollars the difference between the 
amount actually contributed and the amount specified in the approval 
letter. If the MAP Participant's required contribution or cost share is 
specified as a percentage of the total amount reimbursed by CCC, the 
MAP Participant may either return to CCC the necessary amount of funds 
reimbursed by CCC to increase its actual contribution or cost share 
percentage to the required level or pay to CCC in dollars the 
difference between the amount actually contributed and the amount of 
funds necessary to increase its actual contribution or cost share 
percentage to the required level. A MAP Participant shall remit such 
payment within six months after the end of its program year. The MAP 
Participant shall make such payment in U.S. dollars, unless otherwise 
approved in advance by CCC.


Sec.  1485.26  Submissions.

    For all permissible methods of delivery, submissions required by 
this subpart shall be deemed submitted as of the date received by CCC.


Sec.  1485.27  Disclosure of program information.

    (a) Documents submitted to CCC by MAP Participants are subject to 
the provisions of the Freedom of Information Act (FOIA), 5 U.S.C. 552, 
7 CFR part 1, subpart A, and specifically 7 CFR 1.12.
    (b) Upon request, a Participant shall provide to any person a copy 
of any document in its possession or control containing market 
information developed and produced under the terms of its agreement. 
The Participant may charge a fee not to exceed the costs for 
assembling, duplicating, and distributing the materials.
    (c) Any research conducted by a MAP Participant pursuant to an 
agreement and/or approval letter shall be subject to the provisions 
relating to intangible property in 2 CFR part 200.


Sec.  1485.28  Ethical conduct.

    (a) A MAP Participant shall conduct its business in accordance with 
the laws and regulations of the country(s) in which an activity is 
carried out and in accordance with applicable U.S. Federal, state, and 
local laws and regulations. A MAP Participant shall conduct its 
business in the United States in accordance with applicable Federal, 
state, and local laws and regulations.
    (b) Except for a U.S. agricultural cooperative or a U.S. for-profit 
entity, neither a MAP Participant nor its affiliates shall make export 
sales of eligible commodities covered under the terms of the applicable 
MAP agreement. Nor shall such entities charge a fee for facilitating an 
export sale. A MAP Participant may, however, collect check-off funds 
and membership fees that are required for membership in the MAP 
Participant's organization.
    (c) A MAP Participant shall not limit participation in its MAP 
activities to members of its organization. Participants shall ensure 
that their MAP-funded programs and activities are open to all otherwise 
qualified individuals and entities on an equal basis and without regard 
to any non-merit factors. The MAP Participant shall publicize its 
program and make participation possible for commercial entities 
throughout the relevant commodity sector or, in the case of SRTGs, 
throughout the corresponding region. This includes providing to such 
commercial entities, upon request, a copy of any document in its 
possession or control containing market information developed and 
produced under the terms of its MAP agreement. The Participant may 
charge a fee not to exceed the costs for assembling, duplicating, and 
distributing the materials. This paragraph does not apply to U.S. 
agricultural cooperatives when implementing their own brand program.
    (d) A MAP Participant shall select U.S. agricultural industry 
representatives to participate in generic MAP activities such as trade 
teams, sales teams, and trade fairs based on criteria that ensure 
participation on an equitable basis by a broad cross section of the 
U.S. industry. If requested by CCC, a MAP Participant shall submit such 
selection criteria to CCC for approval.
    (e) All MAP Participants should endeavor to ensure fair and 
accurate fact-based advertising. Deceptive or misleading promotions may 
result in cancellation or termination of a MAP Participant's agreement 
and the recovery of CCC funds related to such promotions from the 
Participant.
    (f) The MAP Participant must report any actions or circumstances 
that may have a bearing on the propriety of its MAP program to the 
appropriate Attach[eacute]/Counselor, and its U.S. office shall report 
such actions or circumstances in writing to CCC.


Sec.  1485.29  Subawarding procedures.

    (a) MAP Participants have full and sole responsibility for the 
legal sufficiency of all contracts and assume financial liability for 
any costs or claims resulting from suits, challenges, or other disputes 
based on contracts entered into by the MAP Participant. Neither CCC nor 
any other agency of the U.S. Government nor any official or employee of 
CCC, FAS, USDA, or the U.S. Government has any obligation or 
responsibility with respect to MAP Participant contracts with third 
parties.
    (b) A MAP Participant shall comply with the procurement standards 
set forth below and in 2 CFR part 200 when procuring goods and services 
and when engaging in construction to implement agreements.
    (c) Each MAP Participant shall establish open, fair, and 
competitive contracting procedures for contracts that are funded, in 
whole or in part, with MAP funds.
    (d) Each MAP Participant shall submit to CCC, for CCC approval, 
written contracting guidelines for contracts that are funded, in whole 
or in part, with MAP funds. CCC will notify all new and existing MAP 
Participants in writing in

[[Page 1745]]

each Participant's approval letter and through the FAS website as to 
applicable submission dates for and dates for approvals of contracting 
guidelines. CCC's approval of such contracting guidelines will remain 
in place until CCC retracts its approval in writing, or until new 
guidelines are approved that supersede them. Once approved by CCC, 
these contracting guidelines shall govern all of a Participant's MAP-
funded contracting involving contracts with an annual minimum value 
that CCC shall determine and announce in writing to all MAP 
Participants via a program notice issued on the FAS website. The 
guidelines shall indicate the method for evaluating proposals received 
for all contract competitions, the method for monitoring and evaluating 
performance under contracts, and the method for initiating corrective 
action for unsatisfactory performance under contracts. The MAP 
Participant may modify and resubmit these guidelines for re-approval at 
any time. In addition to the requirements in 2 CFR part 200, these 
guidelines shall include, at a minimum, the following:
    (1) Procedures for developing and publicizing requests for 
proposals, invitations for bids, and similar documents that solicit 
third party offers to provide goods or services. Solicitations for 
professional and technical services shall be based on clear and 
accurate descriptions of and requirements related to the services to be 
procured. Such procedures must include a conflict of interest provision 
that states that no employee, officer, board member, or agent thereof 
of the MAP Participant will participate in the review, selection, 
award, or administration of a contract if a real or apparent conflict 
of interest would arise. Such a conflict would arise when an employee, 
official, board member, agent, or the employee's, officer's, board 
member's, or agent's family, partners, or an organization that employs 
or is about to employ any of these parties or their affiliates has a 
financial or other interest in the contract. Procedures shall provide 
that officers, employees, board members, and agents thereof shall 
neither solicit nor accept gratuities, favors, or anything of monetary 
value from contractors or subcontractors. Procedures shall also provide 
for disciplinary actions to be applied for violations of such standards 
by officers, employees, board members, or agents thereof;
    (2) Procedures for reviewing proposals, bids, or other offers to 
provide goods and services. Separate procedures shall be developed for 
various situations, including, but not limited to: solicitations for 
highly technical services; solicitations for services that are not 
common in a specific market; sole source contracts; solicitations that 
yield receipt of three or more bids; or solicitations that yield 
receipt of fewer than three bids;
    (3) Requirements to conduct all contracting in an openly 
competitive manner. Individuals who develop or draft specifications, 
requirements, statements of work, invitations for bids, and/or requests 
for proposals for procurement of any goods or services, and such 
individuals' families or partners, or an organization that employs or 
is about to employ any of the aforementioned, shall be excluded from 
competition for such procurement. MAP Participants' written contracting 
guidelines may detail special situations where the prohibitions in this 
subparagraph do not apply, such as in situations involving highly 
specialized technical services or situations where the services are not 
commonly offered in a specific market;
    (4) Requirements to perform and document in the procurement files 
some form of price or cost analysis, such as a comparison of price 
quotations to market prices or other price indicia, to determine the 
reasonableness of the offered prices in connection with every 
procurement action that is governed by the contracting guidelines;
    (5) Requirements to conduct an appropriate form of competition 
every 3 years on all multi-year contracts that are governed by the 
contracting guidelines. However, contracts for in-country 
representation are not required to be re-competed after the initial 
reward. Instead, the performance of in-country representation must be 
evaluated and documented by the MAP Participant annually to ensure that 
the terms of the contract are being met in a satisfactory manner; and
    (6) Requirements for written contracts with each provider of goods, 
services, or construction work. Such contracts shall require such 
providers to maintain adequate records to account for funds provided to 
them by the MAP Participant.
    (e) A MAP Participant may undertake MAP promotional activities 
directly or through a domestic or foreign subrecipient. However, the 
MAP Participant shall remain responsible and accountable to CCC for all 
MAP promotional activities and related expenditures undertaken by such 
subrecipient and shall be responsible for reimbursing CCC for any funds 
that CCC determines should be refunded to CCC in relation to such 
subrecipient's promotional activities and expenditures.


Sec.  1485.30  Property standards.

    (a) A Participant shall maintain an inventory of all personal 
property having a useful life of more than one year and an acquisition 
cost of $500 or more that was acquired in furtherance of program 
activities. The inventory shall list and number each item and include 
the date of purchase or acquisition, cost of purchase, replacement 
value, serial number, make, model, and electrical requirements, as 
applicable.
    (b) The Participant shall insure all real property and equipment 
that was acquired, in whole or in part, with MAP funds at a level 
minimally equal to the equivalent insurance coverage for property owned 
by the Participant. The Participant shall safeguard such property and 
equipment against theft, damage, and unauthorized use. The Participant 
shall promptly report any loss, theft, or damage of such property and 
equipment to the insurance company.
    (c) Personal property having a useful life of more than one year 
and an acquisition cost of $500 or more purchased by the Participant, 
and for which the Participant is reimbursed, in whole or in part, with 
MAP funds, that is unusable, unserviceable, or no longer needed for 
project purposes shall be disposed of in one of the following ways. The 
Participant may:
    (1) Exchange or sell the property, provided that it applies any 
exchange allowance, insurance proceeds, or sales proceeds toward the 
purchase of other property needed in the project;
    (2) With CCC approval, transfer the property to other Participants 
for their activities, or to a foreign entity; or
    (3) Upon Attach[eacute]/Counselor approval, donate the property to 
a local charity, or convey the property to the Attach[eacute]/
Counselor, along with an itemized inventory list and any documents of 
title.
    (d) The Participant is responsible for reimbursing CCC for the 
value of any uninsured property at the time of the loss or theft of the 
property.


Sec.  1485.31  Anti-fraud requirements.

    (a) All MAP Participants. (1) All MAP Participants annually shall 
submit to CCC for approval a detailed fraud prevention program. CCC 
will notify all new and existing MAP Participants in writing in each 
Participant's approval letter and through the FAS website as to 
applicable submission dates for and dates for approvals of fraud 
prevention programs. MAP Participants should review their fraud 
prevention programs

[[Page 1746]]

annually. The fraud prevention program shall, at a minimum, include an 
annual review of physical controls and weaknesses, a standard process 
for investigating and remediation of suspected fraud cases, and 
training in risk management and fraud detection for all current and 
future employees. The MAP Participant shall not conduct or permit any 
MAP promotion activities to occur unless and until CCC has communicated 
in writing approval of the MAP Participant's fraud prevention program.
    (2) The MAP Participant, within five business days of receiving an 
allegation or information giving rise to a reasonable suspicion of 
misrepresentation or fraud that could give rise to a claim by CCC, 
shall report such allegation or information in writing to such USDA 
personnel as specified in the Participant's agreement and/or approval 
letter. The MAP Participant shall cooperate fully in any USDA 
investigation of such allegation or occurrence of misrepresentation or 
fraud and shall comply with any directives given by CCC or USDA to the 
MAP Participant for the prompt investigation of such allegation or 
occurrence.
    (b) MAP Participants with brand programs. (1) The MAP Participant 
may charge a fee to brand participants to cover the cost of the fraud 
prevention program.
    (2) The MAP Participant shall repay to CCC funds paid to a brand 
participant through the MAP Participant on claims that the MAP 
Participant or CCC subsequently determines are unauthorized or 
otherwise non-reimbursable expenses within 30 calendar days of the MAP 
Participant's determination or CCC's disallowance. The MAP Participant 
shall repay CCC by submitting a check to CCC or by offsetting the MAP 
Participant's next reimbursement claim. The MAP Participant shall make 
such payment in U.S. dollars, unless otherwise approved in advance by 
CCC. A MAP Participant operating a brand program in strict accordance 
with an approved fraud prevention program, however, will not be liable 
to reimburse CCC for MAP funds paid on such claims if the claims were 
based on misrepresentations or fraud of the brand participant, its 
employees, or agents, unless CCC determines that the MAP Participant 
was grossly negligent in the operation of the brand program regarding 
such claims. CCC shall communicate any such determination to the MAP 
Participant in writing.


Sec.  1485.32  Program income.

    Program income is gross income earned by the non-Federal entity 
that is directly generated by a supported activity or earned as a 
result of the Federal award during the period of performance. Any 
income generated from an activity, the expenditures for which have been 
wholly or partially reimbursed with MAP funds, shall be used by the MAP 
Participant in furtherance of its approved MAP activities in the 
program year during which the MAP funds are available for obligation by 
the MAP Participant, or must be returned to CCC. The use of such income 
shall be governed by this subpart. Interest earned on funds advanced by 
CCC is not program income. Reasonable activity fees or registration 
fees, if identified as such in a project budget, may be charged for 
approved activities. The intent to charge a fee must be part of the 
original proposal, along with an explanation of how such fees are to be 
used. Any activity fees charged must be used to offset activity 
expenses or returned to FAS. Such fees may not be used as profit or 
counted as contribution or cost share.


Sec.  1485.33  Amendments.

    An agreement may be amended in writing with the consent of CCC and 
the MAP Participant. All requests for program amendments must be 
submitted to CCC in writing and contain a justification for why the 
amendment is necessary. All amendment requests must be reviewed and 
approved by CCC before an amendment can be issued.


Sec.  1485.34  Subrecipients.

    (a) A Participant may utilize the services of a subrecipient to 
implement activities under the agreement if this is provided for in the 
agreement. The subrecipient may receive CCC-provided funds, program 
income, or other resources from the Participant for this purpose. The 
Participant must enter in to a written subaward with the subrecipient 
and comply with the applicable provisions of 2 CFR 200.331 and/or the 
Federal Acquisition Regulation (FAR), if applicable. If required by the 
agreement, the Participant must provide a copy of such subaward to FAS, 
in the manner set forth in the agreement, prior to the transfer of CCC-
provided funds or program income to the subrecipient.
    (b) A Participant must include the following requirements in a 
subaward:
    (1) The subrecipient is required to comply with the applicable 
provisions of this part and 2 CFR parts 200 and 400 and/or the FAR, if 
applicable. The applicable provisions are those that relate 
specifically to subrecipients, as well as those relating to non-Federal 
entities that impose requirements that would be reasonable to pass 
through to a subrecipient because they directly concern the 
implementation by the subrecipient of one or more activities under the 
agreement. If there is a question about whether a particular provision 
is applicable, FAS will make the determination.
    (2) The subrecipient must pay to the Participant the value of CCC-
provided funds, interest, or program income that are not used in 
accordance with the subaward, or that are lost, damaged, or misused as 
a result of the subrecipient's failure to exercise reasonable care.
    (3) In accordance with 2 CFR 200.501(h), subawards must include a 
description of the applicable compliance requirements and the 
subrecipient's compliance responsibility. Methods to ensure compliance 
may include pre-award audits, monitoring during the agreement, and 
post-award audits.
    (c) A Participant must monitor the actions of a subrecipient as 
necessary to ensure that CCC-provided funds and program income provided 
to the subrecipient are used for authorized purposes in compliance with 
applicable U.S. Federal laws and regulations and the subaward and that 
performance indicator targets are achieved for both activities and 
results under the agreement.


Sec.  1485.35  Audit requirements.

    (a) Subpart F of 2 CFR part 200 applies to all Participants and 
subrecipients under this part other than those that are for-profit 
entities, foreign public entities, or foreign organizations.
    (b) A Participant or subrecipient that is a for-profit entity or a 
subrecipient that is a foreign organization and that expends, during 
its fiscal year, a total of at least the audit requirement threshold in 
2 CFR 200.501 in Federal awards, is required to obtain an audit. Such a 
Participant or subrecipient has the following two options to satisfy 
this requirement:
    (1)(i) A financial audit of the agreement or subaward, in 
accordance with the Government Auditing Standards issued by the United 
States Government Accountability Office (GAO), if the Participant or 
subrecipient expends Federal awards under only one FAS program during 
such fiscal year; or
    (ii) A financial audit of all Federal awards from FAS, in 
accordance with GAO's Government Auditing Standards, if the Participant 
or subrecipient expends Federal awards under multiple

[[Page 1747]]

FAS programs during such fiscal year; or
    (2) An audit that meets the requirements contained in subpart F of 
2 CFR part 200.
    (c) A Participant or subrecipient that is a for-profit entity or a 
subrecipient that is a foreign organization and that expends, during 
its fiscal year, a total that is less than the audit requirement 
threshold in 2 CFR 200.501 in Federal awards, is exempt from 
requirements under this section for an audit for that year, except as 
provided in paragraphs (d) and (f) of this section, but it must make 
records available for review by appropriate officials of Federal 
agencies.
    (d) FAS may require an annual financial audit of an agreement or 
subaward when the audit requirement threshold in 2 CFR 200.501 is not 
met. In that case, FAS must provide funds under the agreement for this 
purpose, and the Participant or subrecipient, as applicable, must 
arrange for such audit and submit it to FAS.
    (e) When a Participant or subrecipient that is a for-profit entity 
or a subrecipiet that is a foreign organization is required to obtain a 
financial audit under this section, it must provide a copy of the audit 
to FAS within 60 days after the end of its fiscal year.
    (f) FAS, the USDA Office of Inspector General, or GAO may conduct 
or arrange for additional audits of any Participants or subrecipients, 
including for-profit entities and foreign organizations. Participants 
and subrecipients must promptly comply with all requests related to 
such audits. If FAS conducts or arranges for an additional audit, such 
as an audit with respect to a particular agreement, FAS will fund the 
full cost of such an audit, in accordance with 2 CFR 200.503(d).


Sec.  1485.36  Suspension and termination of agreements.

    (a) An agreement or subaward may be suspended or terminated in 
accordance with 2 CFR 200.338 or 200.339. FAS may suspend or terminate 
an agreement if it determines that:
    (1) One of the bases in 2 CFR 200.338 or 200.339 for termination or 
suspension by FAS has been satisfied; or
    (2) The continuation of the assistance provided under the agreement 
is no longer necessary or desirable.
    (b) If an agreement is terminated, the Participant:
    (1) Is responsible for using or returning any CCC-provided funds, 
interest, or program income that have not been disbursed, as agreed to 
by FAS; and
    (2) Must comply with any closeout and post-closeout procedures 
specified in the agreement and 2 CFR 200.343 and 200.344.


Sec.  1485.37  Noncompliance with an agreement.

    (a) If a MAP Participant fails to comply with any term in its 
agreement or approval letter, CCC may take one or more of the 
enforcement actions in 2 CFR part 200 and, if appropriate, initiate a 
claim against the MAP Participant, following the procedures set forth 
in this subpart. CCC may also initiate a claim against a MAP 
Participant if program income or CCC-provided funds are lost due to an 
action or omission of the MAP Participant. If any MAP Participant has 
engaged in fraud with respect to the MAP, or has otherwise violated 
program requirements under this subpart, CCC may:
    (1) Hold such MAP Participant liable for any and all losses to CCC 
resulting from such fraud or violation;
    (2) Require a refund of any assistance provided to such MAP 
Participant plus interest as determined by FAS; and
    (3) Collect liquidated damages from such MAP Participant in an 
amount determined appropriate by FAS.
    (b) The provisions of this section shall be without prejudice to 
any other remedy that is available under any other provision of law.


Sec.  1485.38  Paperwork reduction requirements.

    The paperwork and recordkeeping requirements imposed by this 
subpart have been approved by OMB under the Paperwork Reduction Act of 
1980. OMB has assigned control number 0551-0026 for this information 
collection.

    Dated: December 6, 2019.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.

    In concurrence with:

    Dated: December 6, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019-27965 Filed 1-10-20; 8:45 am]
 BILLING CODE 3410-10-P