[Federal Register Volume 86, Number 231 (Monday, December 6, 2021)]
[Rules and Regulations]
[Pages 68882-68884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25985]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1485


Grant Agreements for the Development of Foreign Markets for U.S. 
Agricultural Commodities

AGENCY: Commodity Credit Corporation and Foreign Agricultural Service, 
U.S. Department of Agriculture (USDA).

ACTION: Final rule.

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SUMMARY: The Office of Management and Budget (OMB) revised and 
renumbered certain provisions in its regulation establishing uniform 
administrative requirements, cost principles, and audit requirements 
for Federal awards to non-Federal entities. This final rule amends the 
USDA regulations on Grant Agreements for the Development of Foreign 
Markets for U.S. Agricultural Commodities (``MAP regulation'') to make 
technical corrections to reflect the revised OMB regulations. This 
final rule also makes several minor changes to the MAP regulation to 
modify the timing of the evaluation provision, add one additional 
exemption for a USA Pavilion waiver request, clarify the market 
representation in the contracting procedures provision, and add certain 
flexibilities to the origin statement and sample shipment requirements.

DATES: This rule is effective December 6, 2021.

FOR FURTHER INFORMATION CONTACT: Curt Alt, (202) 690-4784, 
[email protected]. Persons with disabilities who require an alternative 
means for communication of information (e.g., Braille, large print, 
audiotape, etc.) should contact Angela Ubrey (Human Resources, 202-772-
4836) or Constance Goodwin (Office of Civil Rights, 202-379-6431).

SUPPLEMENTARY INFORMATION: The MAP regulation, 7 CFR part 1485, refers 
to and cites various sections of 2 CFR part 200. As a result of 
amendments that OMB made to 2 CFR part 200 in August 2020, the 
Commodity Credit Corporation (CCC) has identified a number of instances 
where technical corrections are necessary. This final rule makes those 
technical corrections where needed. In addition, this final rule also 
modifies the timing of the evaluation provision, adds one additional 
exemption for a USA Pavilion waiver request, clarifies the market 
representation in the contracting procedures provision, and adds 
certain flexibilities to the origin statement and sample shipment 
requirements.
    This rule involves a matter relating to agency management or 
personnel or to public property, loans, grants, benefits, or contracts. 
Accordingly, notice and other public procedure on this rule are 
unnecessary and this rule may be made effective less than 30 days after 
publication in the Federal Register. See 5 U.S.C. 553.

Catalog of Federal Domestic Assistance

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

E-Government Act Compliance

    CCC 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 12866 and 13563

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
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,

[[Page 68883]]

and equity). Executive Order 13563 emphasized the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. The requirements in Executive Orders 12866 
and 13573 for the analysis of costs and benefits apply to rules that 
are determined to be significant. It has been determined that this 
action is not significant for the purposes of Executive Order 12866; 
therefore, this rule was not reviewed by the Office of Management and 
Budget.

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 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 officials and, for this reason, it is excluded 
from the scope of Executive Order 12372.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally requires an agency to prepare a regulatory flexibility 
analysis of any rule that is subject to notice and comment rulemaking 
under the Administrative Procedure Act (APA) or any other law, unless 
the agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. The Regulatory 
Flexibility Act does not apply to this rule because CCC is not required 
by the APA or any other law to publish a notice of proposed rulemaking 
with respect to the subject matter of the rule. Therefore, this action 
is not a rule as defined by the Regulatory Flexibility Act and, thus, 
is exempt from the provisions of that Act.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' This rule will not have any substantial direct effect 
on States, on the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, except as required by law. This rule does 
not impose substantial direct compliance costs on State and local 
governments. Therefore, consultation with the States was not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
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 or 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. CCC does not expect 
this rule to have any effect on Indian tribes.

Unfunded Mandates

    Title II of the Unfunded Mandate Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State, local, or Tribal governments or the 
private sector. Agencies generally must prepare a written statement, 
including a cost benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternative methods and adopt the more cost effective or 
least burdensome alternative that achieves the objectives of the rule. 
This rule contains no Federal mandates under the regulatory provisions 
of Title II of the Unfunded Mandates Reform Act of 1995 for State, 
local, or Tribal governments, or the private sector. Therefore, this 
rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Paperwork Reduction Act

    This final rule contains no new reporting, recordkeeping, or third-
party disclosure requirements under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.).

List of Subjects in 7 CFR Part 1485

    Agricultural commodities, Exports.

    For the reasons set forth in the preamble, CCC amends part 1485 of 
title 7 of the Code of Federal Regulations as follows:

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

0
1. The authority citation for 7 CFR part 1485 continues to read as 
follows:

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


0
2. In Sec.  1485.15, revise paragraph (c)(6) to read as follows:


Sec.  1485.15   Operational procedures for brand programs.

* * * * *
    (c) * * *
    (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 that wishes to use an origin statement that varies from 
those set out in this subsection must submit the proposed statement to 
CCC for review and must receive approval to use the statement before 
its

[[Page 68884]]

use in an activity. 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;
* * * * *

0
3. In Sec.  1485.17, revise paragraphs (b)(4) and (18) to read as 
follows:


Sec.  1485.17  Reimbursement rules.

* * * * *
    (b) * * *
    (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;
* * * * *
    (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 paragraph (b)(18), on a 
case by case basis, where the trade show is segregated into product 
pavilions, a company's distributor or importer is located outside the 
U.S. pavilion, or when a company can demonstrate that there is a 
benefit to being located outside the U.S. pavilion. Such waiver will be 
provided to the MAP Participant in writing; and
* * * * *


Sec.  1485.22  [Amended]

0
4. In Sec.  1485.22(b)(1), remove the citation ``2 CFR 200.328(b)(2)'' 
and add in its place the citation ``2 CFR 200.329(c)(2)''.

0
5. In Sec.  1485.23(b), revise the first sentence to read as follows:


Sec.  1485.23  Evaluation.

* * * * *
    (b) When required by CCC, a MAP Participant shall complete a 
program evaluation. * * *
* * * * *


Sec.  1485.29  [Amended]

0
6. In Sec.  1485.29(d)(5), remove the word ``in-country'' everywhere it 
appears and add in its place ``market''.


Sec.  1485.34  [Amended]

0
7. In Sec.  1485.34(a), remove the citation ``2 CFR 200.331'' and add 
in its place the citation ``2 CFR 200.332''.

0
8. In Sec.  1485.36, revise paragraphs (a) introductory text, (a)(1), 
and (b)(2) to read as follows:


Sec.  1485.36  Suspension and termination of agreements.

    (a) An agreement or subaward may be suspended or terminated in 
accordance with 2 CFR 200.339 or 200.340. FAS may suspend or terminate 
an agreement if it determines that:
    (1) One of the bases in 2 CFR 200.339 or 200.340 for termination or 
suspension by FAS has been satisfied; or
* * * * *
    (b) * * *
    (2) Must comply with any closeout and post-closeout procedures 
specified in the agreement and 2 CFR 200.344 and 200.345.

Robert Ibarra,
Executive Vice President, Commodity Credit Corporation.
    In concurrence with:
Daniel Whitley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2021-25985 Filed 12-3-21; 8:45 am]
BILLING CODE 3410-10-P