[Federal Register Volume 88, Number 221 (Friday, November 17, 2023)]
[Rules and Regulations]
[Pages 80092-80108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25015]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1489

RIN 0551-AB06


Regional Agricultural Promotion Program

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

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) is amending the 
Agricultural Trade Promotion Program regulation to implement the 
Regional Agricultural Promotion Program (RAPP). The RAPP will provide 
assistance to eligible organizations that conduct market promotion 
activities, including activities to address existing or potential non-
tariff barriers to trade, to promote U.S. agricultural commodities in 
certain foreign markets. Among other changes, this rule updates 
terminology used throughout the regulation, clarifies timeframes for 
reporting requirements, and removes the specific application and review

[[Page 80093]]

requirements from the regulation to be defined in Notices of Funding 
Opportunity (NOFOs) announced through the Grants.gov website.

DATES: This rule is effective November 17, 2023. Although not required 
by the Administrative Procedure Act (APA), CCC will accept comments 
received by December 18, 2023.

ADDRESSES: You may send comments, identified by RIN 0551-AB06, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
This portal enables respondents to enter short comments or attach a 
file containing lengthier comments.
     Email: [email protected]. Include 0551- in the subject 
line of the message.
     Mail, Courier, or Hand Delivery: Curt Alt, U.S. Department 
of Agriculture, Foreign Agricultural Service, 1400 Independence Avenue 
SW, Room 6512, Washington, DC 20250.

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 [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In the face of significant and unpredictable challenges around the 
world, including impacts to international commodities markets in the 
wake of ongoing conflicts, a changing climate, an increasing 
agricultural trade deficit, and increased competition in U.S. export 
markets, USDA recognizes that additional investments in market 
development are needed to keep U.S. agriculture ahead of the 
competition. Consistent with a bipartisan request from the Senate 
Committee on Agriculture, Nutrition, and Forestry, USDA is utilizing 
CCC funds to implement the RAPP program to address the challenges 
related to trade impacting U.S. farmers and the international 
community. Continuing the work started under the Agricultural Trade 
Promotion Program (ATP), RAPP funding will ensure that U.S. 
agricultural industries are able to sustain the relationships key to 
effective market development and will enable exporters to break into 
new markets and increase market share in growth markets. RAPP 
Participants may receive assistance for either generic or brand 
promotion activities as well as assistance to conduct activities to 
address existing or potential non-tariff barriers to trade.
    The Foreign Agricultural Service (FAS) will administer the RAPP on 
behalf of the CCC. Specific program requirements and details for 
applying for assistance under the RAPP will be set forth in NOFOs 
announced through the Grants.gov website.

Eligible Organizations

    As with ATP, the RAPP is a cost-share program that is designed to 
reimburse nonprofit U.S. agricultural trade organizations, nonprofit 
state regional trade groups, state agencies, U.S. agricultural 
cooperatives, and other entities that conduct approved foreign market 
promotion activities. When considering applicant organizations, the CCC 
will give priority to organizations that have the broadest producer 
representation and affiliated industry participation of the commodity 
being promoted. Eligible activities can be generic or branded in 
nature. In order to be eligible for RAPP assistance, U.S. for-profit 
entities shall be limited to those whose size does not exceed 300 
percent of the small business size standards established for their 
particular industry and published at 13 CFR part 121, Small Business 
Size Regulations. Eligible for-profit entities may participate in a 
RAPP Participant's brand promotion program. Any RAPP Participant that 
operates a brand promotion program will be required to establish brand 
program operational procedures. A RAPP Participant shall publicize its 
RAPP program and make participation possible for commercial entities 
throughout the relevant commodity sector or, in the case of State 
Regional Trade Groups (SRTGs), throughout the corresponding region.

General Provisions

    CCC will use the Unified Export Strategy (UES) internet-based 
system to receive RAPP applications and to receive reimbursement 
requests from RAPP Participants. This is the system used for the ATP 
and similar CCC programs. Details about the application requirements 
and process will be announced in the RAPP NOFOs.
    CCC will evaluate each eligible proposal against the factors 
described in the appropriate NOFO to identify those applications that 
it considers to best meet the criteria and objectives outlined in the 
NOFO. Based on its review and evaluation, CCC will, subject to the 
availability of funds, recommend an appropriate funding level for each 
proposal and submit the proposals and funding recommendations to the 
appropriate officials for decision.
    As with the ATP program, participants in the RAPP will be required 
to contribute a total amount in goods, services, and/or cash equal to 
at least 10 percent of the value of resources to be provided by the CCC 
for all generic promotion activities proposed to be undertaken by the 
RAPP Participant. Brand participants will also be required to 
contribute an amount in goods, services, and/or cash equal to at least 
50 percent of the cost of all brand promotion activities they undertake 
under the RAPP.
    This rule includes updated lists of expenses eligible and 
ineligible for reimbursement under the RAPP. Procedures for requesting 
reimbursement for eligible expenditures, or, if appropriate, for 
advances of program funds, are described in the regulation. Because it 
is critical that program funds are managed and accounted for properly 
and are focused on achieving results, paragraphs regarding financial 
management, reporting on outcomes that tie assistance directly to 
increased trade, evaluation, and compliance review are included. 
Finally, to ensure that funds provided under the RAPP are expended in a 
cost-effective manner and are protected from fraud, CCC carries forward 
the provisions regarding ethical conduct, contracting, and anti-fraud 
requirements from the existing regulation.

Effective Date and Comments

    This rule is effective upon publication in the Federal Register. 
The Administrative Procedure Act (APA) (5 U.S.C. 553) provides that 
notice and comment and a 30-day delay in the effective date of the rule 
are not required when the rule involves specified actions, including 
matters relating to grants or benefits. This rule establishes 
procedures and conditions related to the provision of assistance to 
entities conducting activities that promote U.S. agricultural 
commodities in foreign markets and thus falls within the exemption to 
the public participation requirements under the APA. Although not 
required by the APA, CCC has chosen to accept comments on the rule and 
may consider the comments when determining whether any changes to the 
regulations are warranted in the future.

Executive Orders 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

[[Page 80094]]

net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasized the importance of quantifying both costs and 
benefits of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    This rule has been determined to be non-significant and, therefore, 
was not reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act and Small Business Regulatory Enforcement 
Fairness Act (SBREFA)

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the SBREFA of 1996 (SBREFA, Pub. L. 104-121), generally requires an 
agency to prepare a regulatory flexibility analysis of any rule 
whenever an agency is required by the APA or any other law to publish a 
proposed rule, unless the agency certifies that the rule will not have 
a significant economic impact on a substantial number of small 
entities. This rule is not subject to the Regulatory Flexibility Act 
because the CCC is not required by the APA or any other law to publish 
a proposed rule for this rulemaking. This rule is not a major rule 
under SBREFA. SBREFA generally requires that an agency delay the 
effective date of a major rule for 60 days from the date of publication 
to allow for congressional review.

Environmental Assessment

    The CCC has determined that the RAPP does not constitute a major 
State or Federal action that would significantly affect the human or 
natural environment. Consistent with the National Environmental Policy 
Act (NEPA) (42 U.S.C. 4321-4347), no environmental assessment or 
environmental impact statement will be prepared for this regulatory 
action.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affect by 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 State and local government coordination and review 
of proposed Federal financial assistance and direct Federal 
development. This program is subject to the requirements of Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' as 
implemented under USDA's regulations at 2 CFR part 415, subpart C.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. The rule will not have retroactive effect. 
Before any judicial action may be brought regarding the provisions of 
this rule, the administrative appeal provisions in this part must be 
exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do 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. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed for compliance with Executive Order 
13175, ``Consultation and Coordination with Indian Tribal 
Governments.'' Executive Order 13175 requires Federal agencies to 
consult and coordinate with tribes on a government-to-government basis 
on policies that have Tribal implications, including regulations, 
legislative comments, proposed legislation, and other policy statements 
or actions that have substantial direct effects on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian tribes.
    FAS has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to the knowledge of FAS, have 
Tribal implications that required Tribal consultation under Executive 
Order 13175. If a tribe requests consultation, FAS will work with the 
USDA Office of Tribal Relations to ensure meaningful consultation is 
provided where changes, additions, and modifications identified herein 
are not expressly mandated by Congress.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State local, and 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 alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Federal Assistance Programs

    The title and number of the Assistance Listing found in the System 
for Award Management to which this rule applies is ``Regional 
Agricultural Promotion Program''--10.618.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520), this rule does not change the information collection 
approved by OMB under control number 0551-0049.

List of Subjects in 7 CFR Part 1489

    Agricultural commodities, Exports.


0
Accordingly, the CCC revises 7 CFR part 1489 to read as follows:

PART 1489--REGIONAL AGRICULTURAL PROMOTION PROGRAM

Sec.
1489.10 General purpose and scope.
1489.11 Definitions.
1489.12 Participation eligibility.
1489.13 Application process.
1489.14 Application review and formation of agreements.
1489.15 Operational procedures for brand promotion programs.
1489.16 Contribution rules.
1489.17 Reimbursement rules.
1489.18 Reimbursement procedures.
1489.19 Advances.
1489.20 Financial management.
1489.21 Reports.
1489.22 Evaluation.
1489.23 Compliance reviews and notices.
1489.24 Failure to make required contribution.
1489.25 Submissions.
1489.26 Disclosure of program information.

[[Page 80095]]

1489.27 Ethical conduct.
1489.28 Contracting procedures.
1489.29 Property standards.
1489.30 Anti-fraud requirements.
1489.31 Program income.
1489.32 Amendment.
1489.33 Noncompliance with an agreement or this part.
1489.34 Suspension, termination, and closeout of agreements.
1489.35 Paperwork reduction requirements.

    Authority:  15 U.S.C. 714c(f).


Sec.  1489.10   General purpose and scope.

    (a) This part sets forth the general terms, conditions, and 
policies governing the Commodity Credit Corporation's (CCC) operation 
of the Regional Agricultural Promotion Program (RAPP), which subsumes 
the former Agricultural Trade Promotion Program (ATP). This program 
will provide assistance to eligible organizations that conduct market 
promotion activities, including activities to address existing or 
potential non-tariff barriers to trade, to promote U.S. agricultural 
commodities in certain foreign markets. Specific program requirements 
will be set forth in Notices of Funding Opportunity (NOFO) announced 
through the Grants.gov website.
    (b)(1) In addition to the provisions of this part, other 
regulations of general applicability issued by the U.S. Department of 
Agriculture (USDA), including the regulations set forth in chapter XXX 
of this title, may apply to the RAPP and RAPP Participants, to the 
extent that the regulations of general applicability in this paragraph 
(b)(1) do not directly conflict with the provisions of this part. The 
regulations include, but are not limited to:
    (i) 7 CFR part 1, subpart A.
    (ii) 7 CFR part 3.
    (iii) 7 CFR part 15, subpart A.
    (iv) 2 CFR part 417.
    (v) 2 CFR part 418.
    (vi) 2 CFR part 421.
    (vii) 48 CFR part 31.
    (2) In addition, relevant provisions of the CCC Charter Act (15 
U.S.C. 714 et seq.) and any other statutory provisions that are 
generally applicable to the CCC are also applicable to the RAPP and the 
regulations set forth in this part.
    (3) RAPP Participants must also comply with Title VI of the Civil 
Rights Act of 1964 and related civil rights regulations and policies.
    (4) Other laws and regulations that apply to the RAPP and RAPP 
Participants include, but are not limited to:
    (i) 2 CFR part 25.
    (ii) 2 CFR part 170.
    (iii) 2 CFR part 175.
    (iv) 2 CFR part 180.
    (v) 2 CFR part 200.
    (vi) 2 CFR part 400.
    (vii) 37 CFR 401.1.
    (viii) Executive Order 13224, as amended, ``Blocking Property and 
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, 
or Support Terrorism.''
    (c) Under the RAPP, the CCC may provide multi-year grant assistance 
to eligible U.S. entities to conduct certain marketing and promotion 
activities, including activities to address existing or potential non-
tariff trade barriers, aimed at developing, maintaining, or expanding 
commercial export markets for U.S. agricultural commodities. RAPP 
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. The 
CCC expects that all activities that occur in the United States for 
which RAPP reimbursement is sought will develop, maintain, or expand 
the commercial export market for the relevant eligible commodity in 
accordance with the RAPP Participant's approved RAPP program.
    (d) The RAPP generally operates on a reimbursement basis.
    (e) The CCC's policy is to ensure that benefits generated by RAPP 
agreements are broadly available throughout the relevant agricultural 
sector and that no single entity gains an undue advantage. The CCC also 
endeavors to enter into RAPP agreements covering a broad array of 
agricultural commodity sectors. The RAPP is administered by personnel 
of the Foreign Agricultural Service (FAS) acting on behalf of the CCC.


Sec.  1489.11  Definitions.

    For purposes of this part the following definitions apply:
    Activity means a specific foreign market development effort 
undertaken by a RAPP Participant.
    Administrative expenses or costs means expenses or costs of 
administering, directing, and controlling an organization that is a 
RAPP 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, computer hardware and 
software, office maintenance);
    (2) Personnel (including, but not limited to, salaries, benefits, 
payroll taxes, individual insurance, training);
    (3) Communications (including, but not limited to, phone expenses, 
internet, mobile phones, mobile phone service postage, courier 
services, television, radio, walkie talkies);
    (4) Management of an organization or unit of an organization 
(including, but not limited to, planning, supervision, supervisory 
travel, recruiting, hiring);
    (5) Utilities (including, but not limited to, sewer, water, energy, 
Wi-Fi); and
    (6) Professional services (including, but not limited to, 
accounting expenses, financial services, investigatory services).
    Approval letter means a document by which the CCC informs an 
applicant that its RAPP application has been approved for funding. This 
letter may also approve specific activities and contain terms and 
conditions in addition to the program agreement. This letter requires a 
countersignature by the RAPP Participant before it becomes effective.
    Attach[eacute]/Counselor means the FAS employee representing USDA 
interests in the foreign country in which promotional activities are 
conducted.
    Brand participant means a U.S. for-profit entity 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 RAPP 
brand promotion program of another RAPP Participant. This definition 
does not include any U.S. agricultural cooperatives.
    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 brand participant in a 
brand program.
    Budget period means the period during which a RAPP Participant can 
undertake activities consistent with this part and its program 
agreement and approval letter with CCC. Budget periods will be 
specified in a RAPP Participant's approval letter.
    CCC means the Commodity Credit Corporation, including any agency or 
official of the United States delegated the responsibility to act on 
behalf of the CCC.
    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 an expenditure made by a RAPP Participant, the 
U.S. industry, or a State agency in support of an approved activity. 
This includes expenditures to be made by entities in the RAPP 
Participant's industry in support of the entities' related promotion 
activities in the markets

[[Page 80096]]

covered by the RAPP Participant's agreement.
    Credit memo means a commercial document, also known as a credit 
memorandum, issued by the RAPP Participant to a commercial entity that 
owes the RAPP Participant a certain sum. A credit memo is used when the 
RAPP 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 RAPP Participant owes the entity against the amount the 
entity owes to the RAPP Participant.
    Demonstration projects means activities involving the erection or 
construction of a structure or facility or the installation of 
equipment.
    Eligible commodity means any U.S. 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 made by a RAPP participant via the 
transfer of funds or an offset reflected in a credit memo in lieu of a 
transfer of funds.
    FAS means Foreign Agricultural Service, USDA.
    FAS website means a website maintained by FAS providing information 
on RAPP. It is currently accessible at https://fas.usda.gov/programs/regional-agricultural-promotion-program.
    Foreign third party means a foreign entity that a RAPP Participant 
works with to promote the export of an eligible commodity under the 
RAPP 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 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 RAPP 
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.
    Market means the country or countries targeted by an activity.
    Notification means a document from the RAPP Participant by which 
the RAPP Participant proposes to CCC changes to the activities and/or 
funding levels in an approved RAPP program agreement and/or approval 
letter.
    Period of performance means the total time interval between the 
start of a RAPP award and the planned end date, which may include one 
or more funded portions, or budget periods. A RAPP award's period of 
performance will be defined by the dates contained in the program 
agreement.
    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 
must 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 agreement means a document entered into between CCC and a 
RAPP Participant setting forth the terms and conditions of approved 
activities under RAPP, including any subsequent amendments to such 
agreement.
    Promoted commodity means an eligible commodity the sale of which is 
the intended result of a promotional activity.
    RAPP means the Regional Agricultural Promotion Program.
    RAPP notice means Regional Agricultural Promotion Program notices, 
which are documents that CCC issues for informational purposes. These 
RAPP notices are made available electronically on the FAS website. 
These notices have no legal effect. They are intended to alert RAPP 
Participants to various aspects of CCC's current administration of the 
RAPP program.
    RAPP Participant or Participant means an entity that has entered 
into a RAPP program agreement with the CCC.
    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.
    SRTG means State Regional Trade Group. An SRTG is a nonprofit 
association of State-funded agricultural promotion agencies.
    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 
activity intended to promote the interests of an entire agricultural 
sector rather than to result in specific sales by any of its members.
    UES website means a website maintained by FAS through which 
applicants may apply and are reimbursed for RAPP and other USDA market 
development programs. The website is currently accessible to persons 
with e-authentication certification at https://apps.fas.usda.gov/ues/webapp/. FAS may prescribe a different system through which applicants 
may apply to the RAPP and will announce such system in the applicable 
NOFO.
    Unified Export Strategy (UES) means a standardized online internet 
application developed by USDA and available for use by entities to 
apply to USDA market development programs, including the RAPP.
    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.
    USDA means the United States Department of Agriculture.
    U.S. for-profit entity means a firm, association, or other entity 
organized or incorporated, located, and doing business for profit in 
the United States, and engaged in the export or sale of an eligible 
commodity.


Sec.  1489.12   Participation eligibility.

    (a) To participate in the RAPP as a RAPP Participant, an entity 
must 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

[[Page 80097]]

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.  1489.13   Application process.

    (a) General application requirements. CCC will periodically issue a 
NOFO through the Grants.gov website announcing that it is accepting 
applications for participation in the RAPP. Applications shall be 
submitted in accordance with the terms and requirements specified in 
the NOFO and in this part. Applicants may apply to conduct a generic 
promotion program and/or a brand promotion program that provides RAPP 
funds to brand participants for brand promotion, as well as to conduct 
other market promotion activities, including activities to address 
existing or potential non-tariff trade barriers. An applicant that is a 
U.S. agricultural cooperative may also apply for funds to conduct its 
own brand promotion program.
    (b) Requests for evaluation information. CCC may request any 
information that it deems necessary to evaluate an application, 
including, but not limited to, performance measurement information. 
Applicants shall provide any requested information in the manner and 
according to the timeframe specified by CCC.
    (c) Special rules governing demonstration projects funded with CCC 
resources. CCC will consider proposals for demonstration projects, 
provided:
    (1) No more than one such demonstration project per constraint is 
undertaken within a market;
    (2) The constraint to be addressed in the target market is a lack 
of technical knowledge or expertise;
    (3) The demonstration project is a practical and cost-effective 
method of overcoming the constraint; and
    (4) A third party must participate in such project through a 
written agreement with the RAPP Participant.
    (d) Universal identifier and System for Award Management (SAM). In 
accordance with 2 CFR part 25, each entity that applies to the RAPP 
program and does not qualify for an exemption under 2 CFR 25.110 must:
    (1) Be registered in 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 unique identifier in each application or plan it 
submits to CCC.
    (e) Reporting subaward and executive compensation information. In 
accordance with 2 CFR part 170, each entity that applies to the RAPP 
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 RAPP funding.


Sec.  1489.14  Application review and formation of agreements.

    (a) General. (1) CCC will review all proposals for eligibility and 
completeness. CCC will evaluate each eligible proposal against the 
factors described in the appropriate NOFO to identify those 
applications that it considers to best meet the criteria and objectives 
outlined in the NOFO. Based on its review and evaluation, CCC will, 
subject to the availability of funds, recommend an appropriate funding 
level for each proposal and submit the proposals and funding 
recommendations to the 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 a proposal. 
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.
    (2) When considering applicant organizations, CCC may give priority 
to those organizations that have the broadest producer representation 
and affiliated industry participation of the commodity being promoted, 
as determined by CCC. CCC may require that an applicant participate in 
the RAPP through another RAPP Participant or applicant.
    (3) CCC will approve those applications that it determines best 
satisfy the criteria and factors specified in the NOFO.
    (4) CCC will notify each applicant in writing of the final 
disposition of its application.
    (b) Formation of agreements. CCC will send a program agreement (or 
amendment to an existing program agreement), an approval letter, and a 
signature card to each approved applicant. The program agreement or 
amendment and the approval letter will outline which activities and 
budgets are approved and will specify any special terms and conditions 
applicable to a RAPP Participant's program, including any requirements 
with respect to contributions and program evaluations. An applicant 
that decides to accept the terms and conditions contained in the 
program agreement or amendment and the approval letter must so indicate 
by having the appropriate personnel sign the program agreement or 
amendment and the approval letter and submit these to CCC. Final 
agreement shall occur when the program agreement or amendment and the 
approval letter are signed by both parties.
    (c) Signature cards. The RAPP Participant is encouraged to 
designate at least two individuals in its organization to sign program 
agreements and amendments, approval letters, reimbursement claims, and 
advance requests. The RAPP Participant shall submit the signature card 
signed by those designated individuals and by the RAPP Participant's 
Chief Executive Officer (or designee) to CCC. The Participant shall 
immediately notify CCC in writing of any changes in signatories and 
shall submit a revised signature card accordingly.
    (d) UES ID and passwords. CCC will provide each RAPP Participant 
with IDs and passwords for the UES website, as necessary. RAPP 
Participants shall immediately notify CCC whenever a person who 
possesses the ID and password information no longer needs such 
information, or when a person who is not authorized gains such 
information.
    (e) Annual certifications. A RAPP Participant through which U.S. 
for-profit entities are participating in the RAPP program shall obtain 
annual certifications from all such entities that certify their size, 
as defined in this part. The Participant shall retain these 
certifications in accordance with the recordkeeping requirements of 
this part.
    (f) Changes to activities and funding--(1) Adding a new activity. 
(i) A RAPP 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 RAPP 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 and the proposed budget.
    (iii) After receipt of the notification, CCC will inform the RAPP 
Participant via the UES website whether the requested budget is 
approved.
    (2) Modifying existing activities and their funding levels. (i) A 
RAPP Participant desiring to increase the funding level for existing, 
approved activities addressing a single constraint or opportunity by 
more than $25,000 or

[[Page 80098]]

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 RAPP Participant may make significant adjustments below 
$25,000 or 25 percent of the approved funding level, whichever is 
greater, 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 days 
after the change. Minor adjustments to existing, approved activities 
and/or funding levels do not require notification.
    (iii) Notifications shall describe the activity, changes to the 
activity, the existing funding level, the proposed funding level, and a 
justification for transfer of funds, if applicable.


Sec.  1489.15  Operational procedures for brand promotion programs.

    (a) Where CCC approves an application by a RAPP Participant to run 
a brand promotion program that will include brand participants, the 
RAPP Participant shall establish brand program operational procedures. 
The RAPP Participant shall submit to CCC for approval its proposed 
brand program operational procedures. CCC will notify all RAPP 
Participants in writing in each Participant's approval letter as to 
applicable submission dates for and dates for approvals of 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. The RAPP Participant must 
submit to CCC for approval any proposed changes to already approved 
brand program operational procedures before implementing such proposed 
changes.
    (b) The RAPP Participant shall not enter into any participation 
agreements with brand participants, nor shall it implement any RAPP 
brand activities, unless and until CCC has communicated in writing its 
approval of the proposed operational procedures to the RAPP 
Participant.
    (c) Where CCC approves a RAPP Participant's application to run a 
brand promotion program that will include brand participants, the RAPP 
Participant shall enter into participation agreements with brand 
participants. Brand participants' size may not exceed 300 percent of 
the applicable small business size standard as found in 13 CFR part 
121. These agreements must:
    (1) Specify a time period for such brand promotion and require that 
all brand promotion expenditures be made within the RAPP Participant's 
approved budget period;
    (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 the 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 the above terms as a descriptor or in the 
name of the product (e.g., Cincinnati style chili, Gina's American 
Pizza) does not satisfy the product origin requirement. Phrases 
``product of'', ``grown in'' or ``made in'' are encouraged, but not 
required. A RAPP 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 use in an activity. A RAPP 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 the CCC that the labeling requirement in this paragraph 
(c)(6) would hinder a RAPP 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, the CCC may temporarily waive this requirement where the CCC 
has determined that such labeling will likely harm sales rather than 
help them. Such determinations will be announced to RAPP Participants 
via a RAPP notice issued on the FAS website;
    (7) Include a written certification by the brand participant that 
identifies its size on the date of its application for branded program 
funding, or that it is a U.S. agricultural cooperative;
    (8) Require that the brand participant submit to the RAPP 
Participant a statement certifying that any Federal funds received will 
supplement, but not supplant, any private or third-party funds or other 
contributions to program activities; and
    (9) Require the brand participant to maintain all original records 
and documents relating to program activities for three calendar years 
following the end of the applicable budget period and make such records 
and documents available upon request to authorized officials of the 
U.S. Government.


Sec.  1489.16  Contribution rules.

    (a) In RAPP generic promotion programs, a RAPP Participant shall 
contribute a total amount in goods, services, and/or cash equal to at 
least 10 percent of the value of resources provided by the CCC for all 
generic promotion activities undertaken by the RAPP Participant.
    (b) In RAPP brand promotion programs, a RAPP Participant conducting 
its own brand promotion or a brand participant that is participating in 
the RAPP brand promotion program of another RAPP Participant shall 
contribute at least 50 percent of the total eligible expenditures 
submitted in accordance with Sec.  1489.17 made on each approved brand 
promotion.
    (c) A RAPP Participant must use its own funds and may not use RAPP 
program funds to pay any administrative costs of the RAPP Participant's 
U.S. office(s), including legal fees, except as set forth in this part. 
Where the RAPP Participant uses its own funds to pay for administrative 
costs, such costs may be counted in calculating the amount of 
contributions the RAPP Participant contributes to RAPP generic or brand 
promotion programs.
    (d) Regarding eligible contributions:

[[Page 80099]]

    (1) In calculating the amount of contributions that it will make, 
and the contributions that the U.S. industry (including expenditures to 
be made by entities in the applicant's industry or agricultural sector 
in support of the entities' related promotion activities in the markets 
covered by the applicant's application) or State agency will make, the 
RAPP applicant may include the costs listed under paragraph (d)(2) of 
this section if such expenditures:
    (i) Are necessary and reasonable for accomplishment of an approved 
activity;
    (ii) Are not included as contributions for any other Federal award; 
and
    (iii) 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 the matching or cost sharing requirements of 
other Federal programs.
    (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 part, eligible 
contributions are:
    (i) Cash;
    (ii) Compensation paid to personnel;
    (iii) The cost of acquiring materials, supplies or services;
    (iv) The cost of office space;
    (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) The cost of subscriptions that are of a technical, economic, 
or marketing nature and that are relevant to the approved activities of 
the RAPP Participant;
    (ix) The cost of activities conducted overseas;
    (x) Credit card fees;
    (xi) The cost of any independent evaluation or audit that is not 
required by the CCC to ensure compliance with program agreement or 
regulatory requirements;
    (xii) The cost of giveaways, awards, prizes and gifts;
    (xiii) The cost of product samples;
    (xiv) Fees for participating in U.S. Government-sponsored or 
endorsed export promotion activities;
    (xv) The cost of air and local travel in the United States;
    (xvi) STRE and the costs associated with trade shows, seminars, and 
entertainment conducted in the United States where the STRE and costs 
associated with trade shows, seminars, and entertainment have a 
programmatic purpose and are authorized in the program agreement and/or 
the approval letter or authorized by prior written approval of the CCC;
    (xvii) Other administrative expenses (e.g., supervisory travel from 
the U.S. to an overseas office); and
    (xviii) The cost of any activity expressly listed as reimbursable 
in this part.
    (3) The following are not eligible contributions:
    (i) Any portion of salary or compensation of an individual who is 
the target of an approved promotional activity;
    (ii) Any expenditure, including that portion of salary and time 
spent, related to promoting membership in the Participant organization 
(sometimes referred to in the industry as ``backsell'');
    (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, except as described in Sec.  1489.17(c)(22);
    (viii) Slotting fees or similar sales expenditures;
    (ix) Membership fees in clubs and social organizations; and
    (x) Any expenditure for an activity prior to the CCC's approval of 
that activity.
    (4) The CCC shall determine, at the CCC's discretion, whether any 
cost not expressly listed in this section may be included by the RAPP 
Participant as an eligible contribution.


Sec.  1489.17  Reimbursement rules.

    (a) A RAPP Participant may seek reimbursement for an eligible 
expenditure if:
    (1) The expenditure was necessary and reasonable for the 
accomplishment of an approved RAPP 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 part 200 to the extent these principles do 
not directly conflict with the provisions of this part, for either 
brand or generic promotion activities, the CCC will reimburse, in whole 
or in part, the costs of:
    (1) Production and placement of advertising, 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 RAPP-promoted product is not 
reimbursable. If advertising is related to both coupons or price 
discounts for products other than the RAPP Participant's promoted 
products as well as for RAPP-promoted products, then 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 include, but are not limited to, radio, television, 
electronic mail, internet, telephone, text messaging, social media, 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, except as authorized in 
paragraph (c)(9) of this section).
    (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.
    (7) Subject to paragraph (b)(18) of this section, expenditures, 
other than travel expenditures, associated with retail, trade and 
consumer exhibits and shows, whether held outside or inside the United 
States, including participation fees, booth construction, 
transportation of related materials, rental of space and equipment, and 
duplication of related printed materials. However, with regard to non-
travel expenditures associated with retail, trade and consumer exhibits 
and shows held inside the United States, such expenditures are 
reimbursable only if the exhibit or show is: a food or agricultural 
show with no less than 30 percent of exhibitors selling food or 
agricultural products; and, an international show that targets buyers, 
distributors and the like from more than one foreign country and no 
less than 15 percent of its visitors are from outside the U.S. CCC will 
compile a list of approved retail, trade and consumer exhibits and 
shows held inside the United States for which RAPP reimbursement is 
available, and such list will be announced to RAPP Participants via a 
RAPP notice issued on FAS' website.

[[Page 80100]]

    (8) Subject to paragraph (b)(18) of this section, international 
travel expenditures, not to exceed the full fare economy rate, 
including any fees for modifying the originally purchased airline 
ticket, per diem, passports, visas and inoculations, as allowed under 
the U.S. Federal Travel Regulations (41 CFR parts 301 through 304) and 
2 CFR part 200, for no more than two representatives of a single brand 
participant (or RAPP 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. All travel should follow a direct or usually traveled 
route.
    (9) Subscriptions that are of a technical, economic, or marketing 
nature and that are relevant to the approved activities of the RAPP 
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 RAPP Participants via a RAPP 
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 budget period 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 RAPP Participant's promoted products. If such 
activities include both coupons or price discounts for products other 
than the RAPP Participant's promoted products as well as for RAPP-
promoted products, then 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 RAPP Participant as required by 2 CFR part 200, 
subpart F, if the RAPP is the RAPP 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, not to exceed the full fare 
economy rate, including any fees for modifying the originally purchased 
airline ticket, per diem, passports, visas and inoculations, as allowed 
under the U.S. Federal Travel Regulations (41 CFR parts 301 through 
304) and 2 CFR part 200, 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 
RAPP 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) The RAPP 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:
    (A) A product showcase where the FAS overseas office approved an 
invitation list of qualified buyers;
    (B) Pre-arranged one-on-one business meetings; and
    (C) Evaluation and feedback sessions with FAS staff and trade 
mission sponsors.
    (v) Reimbursement is conditional on the RAPP Participant having 
notified in writing the Attach[eacute]/Counselor in the destination 
country in advance of the travel to that country or region. All travel 
should follow a direct or usually traveled route.
    (18) Where USDA has sponsored or endorsed a U.S. pavilion at a 
retail, trade and consumer exhibit or show, whether held outside or 
inside the United States, RAPP funds may be used to reimburse the 
travel and/or non-travel expenditures of only those RAPP Participants 
located within the U.S. pavilion. Such expenditures must also adhere to 
the standard terms and conditions of the U.S. pavilion organizer. All 
travel should follow a direct or usually traveled route. Upon written 
request, the CCC may temporarily waive this subsection, on a case-by-
case basis, where:
    (i) The trade show is segregated into product pavilions; or
    (ii) A company's distributor or importer is located outside the 
U.S. pavilion. Such waiver will be provided to the RAPP Participant in 
writing.
    (19) Contracts with U.S.-based organizations when the only 
contracted service such organizations provide to a RAPP 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 RAPP Participant's 
domestic home office during a budget period, any direct promotional 
services such organization provides to the Participant, whether for the 
Participant's domestic or overseas offices, during the same budget 
period 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 part, but for generic 
promotion activities only, the CCC will also reimburse, in whole or in 
part, the cost of:
    (1) Temporary contractor fees for contractors stationed overseas, 
except the CCC will not reimburse any portion of any such fee that 
exceeds the daily gross salary of a GS-15, Step 10 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.
    (2) Subject to paragraph (b)(18) of this section, international 
travel expenditures, not to exceed the full fare economy rate, 
including any fees for modifying the originally purchased airline 
ticket, per diem, passports, visas, and inoculations, for activities 
held outside the United States or in the United States, as allowed 
under the U.S.

[[Page 80101]]

Federal Travel Regulations (41 CFR parts 301 through 304) and 2 CFR 
part 200, except that if the activity is participation in a retail, 
trade, or consumer exhibit or show held inside the United States, then 
international travel expenditures are covered only if the exhibit or 
show is: a food or agricultural show with no less than 30 percent of 
exhibitors selling food or agricultural products; and, an international 
show that targets buyers, distributors and the like from more than one 
foreign country and no less than 15 percent of its visitors are from 
countries other than the United States. The CCC will compile a list of 
approved retail, trade, and consumer exhibits and shows held inside the 
United States for which RAPP reimbursement is available, and such list 
will be announced to RAPP Participants via a RAPP notice issued on FAS' 
website.
    (i) The 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 or when the RAPP Participant fails 
to notify the Attach[eacute]/Counselor in the destination country in 
advance of the travel to that country or region, unless the CCC 
determines it was impractical to provide such notice. 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 RAPP 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 RAPP Participant shall provide documentation 
establishing such average of the full fare economy class rates to 
support its reimbursement claim.
    (ii) In limited circumstances, the RAPP 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) upon prior written 
approval by the CCC. Such circumstances are:
    (A) Regularly scheduled flights between origin and destination 
points do not offer economy class (or equivalent) airfare, and the RAPP 
Participant receives written documentation from its travel agent 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; and
    (C) If an eligible traveler is an employee, contractor, or member 
of a RAPP participant organization, and the 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, 
ending with the scheduled arrival time, and including stopovers and 
changes of planes, exceeds 14 hours. In such case, 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.) 
immediately following the date of arrival.
    (D) If an eligible traveler is the target of a market development 
activity (e.g., a foreign buyer, foreign importer, member of the 
foreign media), then the RAPP Participant may be reimbursed for air 
travel up to the business class rate when the 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, ending with the scheduled arrival time, and including stopovers 
and changes of planes, exceeds five 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.) 
immediately following the date of arrival.
    (iii) Alternatively, in lieu of reimbursing up to the business 
class rate in such circumstances noted in paragraphs (c)(2)(ii)(C) and 
(D) of this section, the 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.
    (iv) A stopover for purposes of this paragraph (c)(2) 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.
    (v) All travel under this paragraph (c)(2) 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. An eligible traveler that is the target of a 
market development activity is only eligible for a rest period when 
that traveler flies in economy class and meets the 14-hour test.
    (3) Automobile mileage at the local U.S. Embassy rate or rental 
cars while in travel status.
    (4) Other allowable expenditures while in travel status as 
authorized by the U.S. Federal Travel Regulations (41 CFR parts 301 
through 304) and 2 CFR part 200.
    (5) Accident liability insurance premiums for facilities used 
jointly with third-party participants for RAPP activities or for RAPP-
funded travel of third-party participants, provided the types and 
extent and cost of coverage are in accordance with the RAPP 
Participant's policy and sound business practice.
    (6) Market research, including research to determine the types of 
products that are desired in a market.
    (7) Legal fees incurred in resolving trade issues with foreign 
countries.
    (8) The sample purchase price, and the cost of transporting samples 
domestically in the United States to the port of export and then to the 
first foreign port or first point of entry, for samples of eligible 
commodities used to provide on-site technical assistance to the trade 
necessary to facilitate successful use of the relevant eligible 
commodity by importers. The target of such activity must be the trade, 
and not consumers, but any product resulting from the technical 
training can be used to determine consumer preferences.
    (9) STRE incurred outside of the United States and STRE incurred 
within the United States in conjunction with an approved activity where 
the STRE has a programmatic purpose and are authorized with prior 
written approval from the CCC. RAPP Participants are required to use 
the appropriate American Embassy representational funding guidelines 
for breakfasts, lunches, dinners and receptions incurred outside of the 
United States as the basis for their calculating eligible expenses. 
RAPP Participants may exceed Embassy guidelines by up to 25 percent 
without prior approval. RAPP Participants may only exceed 125

[[Page 80102]]

percent of Embassy guidelines when they have received written 
authorization from the FAS Agricultural Counselor at the Embassy. The 
amount of unauthorized STRE expenses that exceed 125 percent of the 
guidelines will not be reimbursed. RAPP Participants must pay the 
difference between the total cost of STRE events and the appropriate 
amount as determined by the guidelines and this part. For STRE incurred 
in the United States, the RAPP Participant should provide, in its 
request for approval, the basis for determining its proposed expenses.
    (10) U.S. office(s) administrative support expenses, incurred 
specifically to administer the RAPP, for the National Association of 
State Departments of Agriculture, the SRTGs, and the Intertribal 
Agriculture Council. The level of such funding will be established in 
the approval letter.
    (11) U.S. office(s) administrative support expenses, incurred 
specifically to administer the RAPP, for any RAPP Participants not 
identified in paragraph (c)(10) of this section, will be considered, 
except for agricultural cooperatives. Reimbursement for such expenses 
shall not exceed eight percent of the RAPP Participant's total RAPP 
budget. The level of such funding will be established by CCC in the 
approval letter.
    (12) Non-travel expenditures associated with conducting 
international staff conferences held either in or outside the United 
States.
    (13) Subject to paragraph (b)(18) of this section, domestic travel 
expenditures, as allowed under the U.S. Federal Travel Regulations (41 
CFR parts 301 through 304) and 2 CFR part 200, for international 
retail, trade, and consumer exhibits and shows conducted in the United 
States upon prior written approval by CCC. Domestic travel expenses to 
such a show or exhibit are covered only if the exhibit or show is: a 
food or agricultural show with no less than 30 percent of exhibitors 
selling food or agricultural products; and an international show that 
targets buyers, distributors and the like from more than one foreign 
country and no less than 15 percent of its visitors are from countries 
other than the host country. CCC will compile a list of approved 
retail, trade, and consumer exhibits and shows held inside the United 
States for which RAPP reimbursement is available and such list will be 
announced to RAPP Participants via a RAPP notice issued on FAS' 
website.
    (14) Domestic travel expenditures, as allowed under the U.S. 
Federal Travel Regulations (41 CFR parts 301 through 304) and 2 CFR 
part 200, for seminars and educational training conducted in the United 
States.
    (15) Domestic travel expenditures, as allowed under the U.S. 
Federal Travel Regulations (41 CFR parts 301 through 304) and 2 CFR 
part 200, for up to two individuals, whether home office RAPP 
Participant employees, RAPP Participant board members, or State 
department of agriculture employees paid by the RAPP Participant, or a 
combination thereof, when such individuals accompany 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 RAPP Participant's UES;
    (ii) Such trade missions or technical team visits have been 
approved by CCC; and
    (iii) The RAPP-sponsored travelers submit a follow-up trip report 
to CCC that includes the following:
    (A) Purpose for the individuals' 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.
    (16) Approved demonstration projects.
    (17) Expenditures related to copyright, trademark, or patent 
registration, including attorney fees.
    (18) Rental or lease expenditures for storage space for program-
related materials.
    (19) Business cards that target a foreign audience.
    (20)(i) Expenditures associated with developing, updating, and 
servicing websites on the internet that:
    (A) Contain a message related to exporting or international trade;
    (B) Include a discernible ``link'' to the FAS website or an FAS 
overseas office website; and
    (C) Have been specifically approved by the appropriate FAS 
division. Expenditures related to websites or portions of websites that 
are accessible only to an organization's members are not reimbursable.
    (ii) Reimbursement claims for websites that include ``members 
only'' sections must be prorated to exclude the costs associated with 
those areas subject to restricted access.
    (21) 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 non-tariff barriers to trade that prohibit or 
threaten U.S. exports of agricultural commodities. Examples of such 
expenditures include, but are not limited to: initial pre-clearance 
programs, educational training, policy advocacy, public relations 
efforts, foreign country audits of U.S. facilities, export protocol and 
work plan support, seminars and workshops, study tours, field surveys, 
development of pest lists, pest and disease research, database 
development, and reasonable logistical and administrative support.
    (22) Organization costs for overseas offices approved in 
agreements. Such costs include incorporation fees, brokers' fees, and 
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 RAPP Participant's 
policy and sound business practice), and routine accounting and legal 
services required to maintain the overseas office.
    (23) 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 equipment, machinery, removable fixtures, 
computer hardware and software, and portable electronic communications 
devices (including mobile phones and wireless devices).
    (24) Compensation and allowances for housing 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.
    (25) 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; or

[[Page 80103]]

    (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 RAPP Participant shall document by a 
salary survey or other means.
    (26) 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.
    (27) Accrued annual leave as of the time employment is terminated 
or as of such time as required by local law.
    (28) Overtime paid to clerical staff of approved RAPP-funded 
overseas offices.
    (29) 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.
    (30) Legal fees to obtain advice on the host country's labor laws.
    (31) Employment agency fees.
    (32) Evacuation payments (safe haven) and shipment and storage of 
household goods and motor vehicles for relocations lasting at least 12 
months.
    (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 the cost of wireless phone plans that is 
devoted to program activities and monthly service fees prorated at the 
proportion of program-related usage to total usage.
    (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, or judgments relating to legal 
suits, challenges or disputes, except as otherwise allowed in 2 CFR 
part 200 and this part;
    (3) The design and production of packaging, labeling or origin 
identification, except as specifically allowed in this part;
    (4) Product development, product modification or product research, 
except as specified in paragraph (c)(21) of this section;
    (5) Product samples to be distributed to consumers;
    (6) Slotting fees or similar sales expenditures;
    (7) The purchase of, construction of, or lease of space for 
permanent, non-mobile displays, i.e., displays that are constructed to 
remain permanently in the same location beyond one budget period. 
However, the 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 the 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 RAPP promoted 
commodity;
    (10) Refundable deposits or advances;
    (11) Giveaways, awards, prizes, gifts and other similar promotional 
materials in excess of the limitation that the CCC will determine. Such 
determination will be announced in writing via a RAPP 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 the CCC determines that 
such a review is needed in order to confirm past or to ensure future 
program agreement or regulatory compliance;
    (17) Any arrangement that has the effect of reducing the selling 
price of a U.S. agricultural commodity;
    (18) Goods, services and salaries of personnel provided by U.S. 
industry or foreign 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 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 RAPP Participant;
    (26) U.S. office(s) administrative expenses, including 
communication costs, except as noted in paragraphs (c)(10) and (11) of 
this section, and except that usage costs for communications devices 
incurred while on reimbursable international or domestic travel for 
approved RAPP brand or generic promotion activities are reimbursable as 
eligible travel expenditures as allowed under the U.S. Federal Travel 
Regulations (41 CFR parts 301 through 304) and 2 CFR part 200;
    (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 
RAPP Participant to pay such employees' or contractors' share;
    (29) Any expenditure made for an activity prior to the 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) Expenditures associated with a RAPP Participant's creation or 
review of their fraud prevention program, contracting procedures, or 
brand program operational procedures;
    (32) Entertainment (e.g., amusements, diversions, cover charges, 
personal gifts, or tickets to theatrical or sporting events); and
    (33) Refreshments, or related equipment, for office staff.
    (e) For a brand promotion activity, the CCC will reimburse no more 
than 50 percent of the total eligible expenditures made on that 
activity by a brand participant.
    (f) The CCC will reimburse for expenditures made after the 
conclusion of a RAPP Participant's period of performance, provided:
    (1) The activity was completed prior to the expiration date shown 
in the RAPP Participant's program agreement; and
    (2) All expenditures for the activity were made within 6 months 
following the expiration date shown in the RAPP Participant's program 
agreement.
    (g) A RAPP Participant shall not use RAPP funds for any activity or 
any expenses incurred by the RAPP Participant prior to the date of the 
program agreement or after the date the program agreement is suspended 
or terminated, except as otherwise permitted by the CCC.
    (h) Except as otherwise provided in this part, RAPP-funded travel 
shall conform to U.S. Federal Travel Regulations (41 CFR parts 301 
through 304) and 2 CFR part 200, and RAPP-funded air travel shall 
conform to the requirements of the Fly America Act (49 U.S.C. 40118). 
For international travel, the RAPP Participant shall notify the 
Attach[eacute]/Counselor in the destination

[[Page 80104]]

countries in writing in advance of any proposed travel.
    (i) The CCC may determine, at the CCC's discretion, whether any 
cost not expressly listed in this section will be reimbursed.


Sec.  1489.18   Reimbursement procedures.

    (a) Participants are required to use the CCC's UES system to 
request reimbursement for eligible expenditures under RAPP.
    (b) All claims for reimbursement shall be submitted by the RAPP 
Participant's U.S. office to the CCC through the UES system.
    (c) [Reserved]
    (d) The CCC will not reimburse claims submitted later than 6 months 
after the expiration date shown in the RAPP Participant's program 
agreement.
    (e) If the CCC overpays a reimbursement claim, then the RAPP 
Participant shall repay the CCC the amount of the overpayment either by 
submitting a check payable to the CCC or by offsetting its next 
reimbursement claim. The Participant shall make such payment within 30 
calendar days of the date that they discover, or are made aware, of any 
overpayment. The RAPP Participant shall make such payment in U.S. 
dollars, unless otherwise approved in advance, in writing, by the CCC.
    (f) If a RAPP Participant receives a reimbursement or offsets an 
advanced payment that is later disallowed, the RAPP Participant shall 
repay the CCC within 30 days of such disallowance the amount disallowed 
either by submitting a check payable to the CCC or by offsetting its 
next reimbursement claim. The RAPP Participant shall make such payment 
in U.S. dollars, unless otherwise approved in advance, in writing, by 
the CCC.
    (g) RAPP funds may be expended by RAPP Participants only on 
legitimate, approved activities as set forth in the program agreement 
and approval letter. If a RAPP Participant discovers that RAPP funds 
have not been properly spent, it shall notify the CCC and shall within 
30 calendar days of its discovery repay the CCC the amount owed either 
by submitting a check payable to the CCC or by offsetting its next 
reimbursement claim. The RAPP Participant shall make such payment in 
U.S. dollars.
    (h) The RAPP Participant shall report any actions that may have a 
bearing on the propriety of any claims for reimbursement in writing to 
CCC.


Sec.  1489.19  Advances.

    (a) Policy. In general, the CCC operates the RAPP on a reimbursable 
basis.
    (b) Exception. A RAPP Participant may request an advance of RAPP 
funds from the CCC for generic promotion activities, provided the RAPP 
Participant meets the criteria for advance payments in 2 CFR part 200. 
The CCC will not approve any request for an advance submitted after the 
expiration date shown in the RAPP Participant's program agreement. At 
any given time, total payments advanced shall not exceed 40 percent of 
a RAPP Participant's approved generic activity budget for the budget 
period. The CCC will not advance funds to a RAPP Participant for brand 
promotion activities. When approving a request for an advance, the CCC 
may require the RAPP Participant to carry adequate fidelity bond 
coverage when the absence of such coverage is considered by the CCC to 
create an unacceptable risk to the interests of the RAPP. 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 RAPP; 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 RAPP Participant shall deposit and maintain in an 
insured bank account in the United States all funds advanced by the 
CCC. The account shall be interest-bearing unless the exceptions in 2 
CFR part 200 apply. Interest earned by the RAPP Participant on funds 
advanced by the CCC is not program income. The RAPP Participant shall 
remit any interest earned on the advanced funds to the appropriate 
entity as set forth in 2 CFR part 200.
    (d) Refunds due the CCC. A RAPP Participant shall fully expend all 
advances on approved generic promotion activities within 90 calendar 
days after the date the advance was approved in the UES. By the end of 
the 90 calendar days, the RAPP Participant must submit reimbursement 
claims to offset the advance or submit a check made payable to CCC for 
any unexpended balance. The RAPP Participant shall make such payment in 
U.S. dollars, unless otherwise approved in advance, in writing, by the 
CCC.


Sec.  1489.20   Financial management.

    (a) A RAPP Participant shall implement and maintain a financial 
management system that conforms to generally accepted accounting 
principles. A RAPP Participant's financial management system shall 
comply with the standards in 2 CFR part 200.
    (b) A RAPP Participant shall institute internal controls and 
provide written guidance to commercial entities participating in its 
activities to ensure their compliance with this part.
    (c) A RAPP Participant shall retain all records concerning a RAPP 
program transaction for a period of three years after completion of the 
program transaction and permit the CCC to have full and complete access 
to such records during the transaction period and for such three-year 
period after completion of the program transaction. These records shall 
include all records pertaining to contractors.
    (d) A RAPP Participant shall maintain its records of expenditures 
and contributions in a manner that allows it to provide information by 
activity plan, country, activity number, and cost category. Such 
records shall include:
    (1) Receipts for all STRE (actual vendor invoices or restaurant 
checks, rather than credit card receipts);
    (2) Original receipts for any other program-related expenditure in 
excess of a set amount that CCC will determine and announce in writing 
to all RAPP Participants via a RAPP notice issued on the FAS website. 
The CCC may, from time to time, set a different minimum amount. In that 
case, the CCC will announce the new amount in writing to all RAPP 
Participants via a RAPP notice issued on the FAS website;
    (3) The exchange rate used to calculate the dollar equivalent of 
expenditures made in a foreign currency and the basis for such 
calculation;
    (4) Copies of reimbursement claims;
    (5) An itemized list of claims charged to each of the RAPP 
Participant's CCC resources accounts;
    (6) Documentation with accompanying English translation supporting 
each reimbursement claim, including original evidence to support the 
financial transactions such as canceled checks, receipted paid bills, 
contracts or purchase orders, per diem calculations, travel vouchers, 
and credit memos; and
    (7) Documentation supporting contributions. These must include the 
dates, purpose, and location of the activity for which the cash or in-
kind items were claimed as a contribution; who conducted the activity; 
the participating groups or individuals; and the method of computing 
the claimed contributions. RAPP Participants must retain and make 
available for compliance review documentation related to claimed 
contributions.
    (e) Upon request, a RAPP Participant shall provide to the CCC 
originals of documents supporting reimbursement claims.

[[Page 80105]]

Sec.  1489.21   Reports.

    (a) Contribution report. Not later than 6 months after the 
expiration date shown in the RAPP Participant's program agreement, a 
RAPP Participant shall submit a report that identifies, by cost 
category and in U.S. dollar equivalent, contributions made by the 
Participant, the applicable U.S. industry, and the States during the 
Participant's RAPP period of performance. Foreign third-party 
contributions are not to be included in the contribution report.
    (b) Trip reports. Not later than 45 days after completion of travel 
(other than local travel), a RAPP Participant shall electronically 
submit a trip report. The report 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.
    (c) Research reports. Not later than 6 months after the expiration 
date shown in the RAPP Participant's program agreement, a RAPP 
Participant shall submit a report on any research conducted pursuant to 
the approved RAPP program.
    (d) Evaluation reports. Not later than 6 months after the 
expiration date shown in the RAPP Participant's program agreement, a 
RAPP Participant shall submit a report on any evaluations conducted in 
accordance with the approved RAPP program, including the outcome of 
action taken with RAPP funding and the increased market access or 
exports that can be directly attributed to the RAPP program.
    (e) Annual audits. Where the CCC is designated the cognizant agency 
for audit, the CCC may require the RAPP Participant to submit to the 
CCC an annual audit in accordance with 2 CFR part 200. If the CCC 
requires an additional audit with respect to a particular agreement, 
then the RAPP Participant shall arrange for such audit and shall submit 
to the CCC, in the manner to be specified by the CCC, such audit of the 
agreement.
    (f) Additional reports. The CCC may require the submission of 
additional reports.
    (g) Approval letters. A RAPP Participant's program agreement and/or 
approval letter shall specify to whom the Participant shall submit the 
reports required in this section.
    (h) Program reviews. FAS, through its authorized representatives, 
may review project accomplishments, management control systems, and 
administration of funding provided through the program to ensure 
adherence to the requirements in this part. During such reviews, FAS 
will review recipients' files related to the grant-funded program, and 
technical assistance may be required.


Sec.  1489.22   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 RAPP. 
Evaluation of the RAPP's effectiveness will depend on a clear statement 
by Participants of 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 RAPP and of individual Participants' programming is to 
increase sales that would not have occurred in the absence of RAPP 
funding. A RAPP 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 RAPP 
Participant's program, contributing to program accountability and 
providing evidence of program effectiveness that directly ties program 
funds to increased sales.
    (b) All RAPP Participants must report annual results against their 
target market and/or regional constraint/opportunity performance 
measures. These are outcome results usually based on multiple 
activities and should demonstrate progress made in the market during 
the latest budget period. This report shall be completed and submitted 
to the CCC no later than 6 months following the end of each 
Participant's budget period.
    (c) When deemed appropriate or required by the CCC, a RAPP 
Participant shall complete a program evaluation. A program evaluation 
is a review of the RAPP Participant's entire program, or an appropriate 
portion of the program as agreed to by the RAPP Participant and CCC, to 
determine the effectiveness of the RAPP Participant's strategy in 
meeting specified goals. Actual scope and timing of the program 
evaluation shall be determined by the RAPP Participant and CCC and 
specified in the approval letter. A RAPP Participant shall submit, via 
a cover letter to CCC, an executive summary that assesses the program 
evaluation's findings and recommendations, as well as any proposed 
changes in program strategy or design as a result of the evaluation. 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 export sales achieved;
    (6) A summary of the findings, including an analysis of the 
strengths and weaknesses of the program(s); and
    (7) Recommendations for future programs.
    (d) When deemed appropriate or required by the CCC, RAPP 
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 RAPP program. 
Actual scope and timing of the brand promotion evaluation shall be 
determined by the RAPP Participant and CCC and specified in the 
approval letter.
    (e) On an annual basis, or more often when appropriate or required 
by the CCC, a RAPP Participant shall complete and submit program 
success stories. The CCC will announce to all RAPP Participants in 
writing the detailed requirements for completing and submitting program 
success stories.


Sec.  1489.23   Compliance reviews and notices.

    (a) USDA staff may conduct compliance reviews of RAPP Participants' 
activities under the RAPP program. RAPP 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.
    (b) Upon conclusion of the compliance review, USDA staff will 
provide a written compliance report to the RAPP Participant. The 
compliance report will specify whether USDA staff believe that CCC may 
be entitled to recover funds from the Participant and/or it appears 
that the Participant is not complying with any of the terms or 
conditions of the program agreement, approval letter, or the applicable 
laws and regulations. The compliance report will explain the basis for 
any recovery of funds from the Participant. Within 60 calendar days of 
the date the compliance report cover letter is signed, the RAPP 
Participant shall repay the

[[Page 80106]]

CCC the amount owed either by submitting a check payable to the CCC or 
by offsetting its next reimbursement claim. The RAPP Participant shall 
make such payment in U.S. dollars, unless otherwise approved in 
advance, in writing, by the CCC. If, however, a RAPP Participant 
notifies the CCC within 60 calendar days of the date the compliance 
report cover letter is signed that the Participant intends to file an 
appeal pursuant to paragraph (e) of this section, then the amount owed 
to the CCC by the RAPP Participant is not due until the appeal 
procedures are concluded and the CCC has made a final written 
determination as to the amount owed. If, as a result of a compliance 
review, the CCC determines that further review is needed in order to 
ensure compliance with the requirements of RAPP, then the CCC may 
require the Participant to contract for an independent audit.
    (c) In addition, the CCC may notify a RAPP Participant in writing 
at any time if CCC determines that CCC may be entitled to recover funds 
from the Participant. The CCC will explain the basis for any recovery 
of funds from the Participant in the written notice. The RAPP 
Participant shall, within 30 calendar days of the date of the notice, 
repay the CCC the amount owed either by submitting a check payable to 
the CCC or by offsetting its next reimbursement claim. The RAPP 
Participant shall make such payment in U.S. dollars, unless otherwise 
approved in advance, in writing, by the CCC. If, however, a RAPP 
Participant notifies the CCC within 30 calendar days of the date of the 
written notice that the Participant intends to file an appeal pursuant 
to paragraph (e) of this section, then the amount owed to the CCC by 
the RAPP Participant is not due until the appeal procedures are 
concluded and the CCC has made a final determination as to the amount 
owed.
    (d) The fact that a compliance review has been conducted by USDA 
staff does not signify that a RAPP Participant is in compliance with 
its program agreement, approval letter, and/or applicable laws and 
regulations.
    (e) For appeals:
    (1) A RAPP Participant may, within 60 calendar days of the date of 
the compliance report or written notice from the CCC, submit a written 
response to the CCC appealing the report or notice. CCC, at its 
discretion, may extend the period for response.
    (2) After review of the Participant's response, the CCC shall 
determine whether the Participant owes any funds to the CCC and will 
inform the Participant in writing of the basis for the determination. 
The CCC will 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 3.
    (3) Within 30 calendar days of the date of the determination, the 
Participant may request in writing that the CCC reconsider the 
determination and shall submit in writing the basis for such 
reconsideration. The Participant may also request a hearing.
    (4) If the Participant requests a hearing, the 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, the CCC may in its discretion have a 
transcript prepared at the CCC's expense.
    (5) The 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 the CCC.


Sec.  1489.24   Failure to make required contribution.

    A RAPP Participant's required contribution will be specified in the 
approval letter. If the RAPP Participant's required contribution is 
specified as a dollar amount and the RAPP Participant does not 
contribute a total dollar amount sufficient to make the required 
contribution, then the RAPP Participant shall pay to the CCC in dollars 
the difference between the amount actually contributed and the amount 
specified in the approval letter. If the RAPP Participant's required 
contribution is specified as a percentage of the total amount 
reimbursed by the CCC and the RAPP Participant does not provide a 
dollar amount of contributions sufficient to achieve the specified 
percentage, then the RAPP Participant may either return to the CCC the 
amount of funds reimbursed by the CCC to increase its actual 
contribution percentage to the required level or pay to the CCC in U.S. 
dollars the difference between the amount actually contributed and the 
amount of funds necessary to increase its actual contribution 
percentage to the required level. A RAPP Participant shall remit such 
payment within six months after the expiration date shown in the RAPP 
Participant's program agreement. The RAPP Participant shall make such 
payment in U.S. dollars, unless otherwise approved in advance, in 
writing, by the CCC.


Sec.  1489.25   Submissions.

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


Sec.  1489.26   Disclosure of program information.

    (a) Documents submitted to CCC by RAPP Participants are subject to 
the provisions of the Freedom of Information Act (FOIA), 5 U.S.C. 552, 
and 7 CFR part 1, subpart A, specifically Sec.  1.12.
    (b) Any research conducted by a RAPP Participant pursuant to a RAPP 
program agreement and/or approval letter shall be subject to the 
provisions relating to intangible property in 2 CFR part 200.


Sec.  1489.27   Ethical conduct.

    (a) A RAPP Participant shall conduct its business in accordance 
with the laws and regulations of the country in which an activity is 
carried out and in accordance with applicable U.S. Federal, State, and 
local laws and regulations. A RAPP Participant shall conduct its 
business in the United States in accordance with applicable Federal, 
State, and local laws and regulations. All RAPP Participants must 
comply with the regulations in 2 CFR part 200 and this part.
    (b) Except for a U.S. agricultural cooperative or a U.S. for-profit 
entity, neither a RAPP Participant nor its affiliates shall make export 
sales of eligible commodities covered under the terms of the applicable 
RAPP agreement. Nor shall such entities charge a fee for facilitating 
an export sale. A RAPP Participant may, however, collect check-off 
funds and membership fees that are required for membership in the RAPP 
Participant. For the purposes of this paragraph (b), affiliate means 
any partnership, association, company, corporation, trust, or any other 
such party in which the Participant has an investment other than in a 
mutual fund.
    (c) A RAPP Participant shall not limit participation in its RAPP 
activities to members of its organization. Participants shall ensure 
that their RAPP-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 RAPP 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

[[Page 80107]]

or control containing market information developed and produced under 
the terms of its RAPP agreement. The Participant may charge a fee not 
to exceed the costs for assembling, duplicating and distributing the 
materials. This paragraph (c) does not apply to any U.S. agricultural 
cooperative when implementing its own brand program.
    (d) A RAPP Participant shall select U.S. agricultural industry 
representatives to participate in generic RAPP 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 the CCC, a RAPP Participant shall submit 
such selection criteria to the CCC for approval.
    (e) All RAPP Participants should endeavor to ensure fair and 
accurate fact-based advertising. Deceptive or misleading promotions may 
result in cancellation or termination of a Participant's RAPP agreement 
and the recovery of CCC funds related to such promotions from the 
Participant.
    (f) The RAPP Participant must report any actions or circumstances 
that may have a bearing on the propriety of its RAPP program to the 
appropriate Attach[eacute]/Counselor, and its U.S. office shall report 
such actions or circumstances in writing to the CCC.


Sec.  1489.28   Contracting procedures.

    (a) Neither the CCC nor any other agency of the U.S. Government nor 
any official or employee of the CCC, FAS, USDA, or the U.S. Government 
has any obligation or responsibility with respect to RAPP Participant 
contracts with third parties.
    (b) A RAPP Participant shall comply with the procurement standards 
set forth in paragraphs (c) through (e) of this section when procuring 
goods and services and when engaging in construction to implement 
program agreements.
    (c) Each RAPP Participant shall establish contracting procedures, 
for contracts that are funded, in whole or in part, with RAPP funds, 
that are open, fair, and competitive.
    (d) Each RAPP Participant shall submit to the CCC, for CCC 
approval, written contracting guidelines for contracts that are funded, 
in whole or in part, with RAPP funds. The CCC will notify all new and 
existing RAPP 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 contracting guidelines. The CCC's 
approval of such contracting guidelines will remain in place until the 
CCC retracts its approval in writing, or until new guidelines are 
approved that supersede them. Once approved by the CCC, these 
contracting guidelines shall govern all of a Participant's RAPP-funded 
contracting involving contracts with a minimum annual value that CCC 
will determine and announce in writing to all RAPP Participants via a 
RAPP notice issued on the FAS website. The CCC may, from time to time, 
set a different minimum value. In that case, the CCC will announce the 
new amount in writing to all RAPP Participants via a RAPP 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 RAPP 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 RAPP 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, agent's family, partners, or an organization that employs or 
is about to employ any of the parties indicated in this paragraph 
(d)(1), has a financial or other interest in the firm selected for an 
award. 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; solicitations that yield receipt of three 
or more bids; 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. RAPP 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 three 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 
award. Instead, the performance of in-country representation must be 
evaluated and documented by the RAPP 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 RAPP Participant.
    (e) A RAPP Participant may undertake RAPP promotional activities 
directly or through a domestic or foreign third party. However, the 
RAPP Participant shall remain responsible and accountable to the CCC 
for all RAPP promotional activities and related expenditures undertaken 
by such third party and shall be responsible for reimbursing CCC for 
any funds that CCC determines should be refunded to the CCC in relation 
to such third party's promotional activities and expenditures.

[[Page 80108]]

Sec.  1489.29   Property standards.

    The RAPP Participant shall insure all RAPP-funded property and 
equipment acquired in furtherance of program activities and safeguard 
such against theft, damage and unauthorized use. The Participant shall 
promptly report any loss, theft, or damage of property to the insurance 
company.


Sec.  1489.30   Anti-fraud requirements.

    (a) All RAPP Participants. (1) All RAPP Participants shall submit 
to the CCC for approval a detailed fraud prevention program. The CCC 
will notify all new and existing RAPP 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. RAPP Participants should review their fraud 
prevention programs 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 RAPP Participant shall not conduct or 
permit any RAPP promotion activities to occur unless and until the CCC 
has communicated in writing approval of the RAPP Participant's fraud 
prevention program.
    (2) The RAPP 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 RAPP program agreement and/
or approval letter. The RAPP 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 the CCC or USDA to the RAPP Participant for the prompt investigation 
of such allegation or occurrence.
    (b) RAPP Participants with brand programs. (1) The RAPP Participant 
may charge a fee to brand participants to cover the cost of the fraud 
prevention program.
    (2) The RAPP Participant shall repay to the CCC funds paid to a 
brand participant through the RAPP Participant on claims that the RAPP 
Participant or the CCC subsequently determines are unauthorized or 
otherwise non-reimbursable expenses within 30 days of the RAPP 
Participant's determination or CCC's disallowance. The RAPP Participant 
shall repay CCC by submitting a check to CCC or by offsetting the RAPP 
Participant's next reimbursement claim. The RAPP Participant shall make 
such payment in U.S. dollars, unless otherwise approved in advance by 
CCC. A RAPP Participant operating a brand program in strict accordance 
with an approved fraud prevention program, however, will not be liable 
to reimburse CCC for RAPP funds paid on such claims if the claims were 
based on misrepresentations or fraud of the brand participant, its 
employees or agents, unless the CCC determines that the RAPP 
Participant was grossly negligent in the operation of the brand program 
regarding such claims. The CCC shall communicate any such determination 
to the RAPP Participant in writing.


Sec.  1489.31   Program income.

    Any revenue or refunds generated from an activity, e.g., 
participation fees, proceeds of sales, refunds of value added taxes 
(VAT), the expenditures for which have been wholly or partially 
reimbursed with RAPP funds, shall be used by the RAPP Participant in 
furtherance of its approved RAPP activities in the budget period during 
which the RAPP funds are available for obligation by the RAPP 
Participant. The use of such revenue or refunds shall be governed by 
this part. Interest earned on funds advanced by the CCC is not program 
income.


Sec.  1489.32  Amendment.

    A program agreement may be amended in writing with the written 
consent of the CCC and the RAPP Participant.


Sec.  1489.33   Noncompliance with an agreement or this part.

    If a RAPP Participant fails to comply with any term in its program 
agreement or approval letter, or this part, the CCC may take one or 
more of the enforcement actions in 2 CFR part 200 and, if appropriate, 
initiate a claim against the RAPP Participant, following the procedures 
set forth in this part. The CCC may also initiate a claim against a 
RAPP Participant if program income or CCC-provided funds are lost due 
to an action or omission of the RAPP Participant.


Sec.  1489.34   Suspension, termination, and closeout of agreements.

    A program agreement may be suspended or terminated in accordance 
with the suspension and termination procedures in 2 CFR part 200. If an 
agreement is terminated, the applicable regulations in 2 CFR part 200 
will apply to the closeout of the agreement.


Sec.  1489.35  Paperwork reduction requirements.

    The paperwork and record keeping requirements imposed by this part 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995. The control number for this 
information collection is 0551-0049.

    Marcus Graham,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2023-25015 Filed 11-16-23; 8:45 am]
BILLING CODE 3410-10-P