Agreements for the Development of Foreign Markets for Agricultural Commodities

SUMMARY: The Commodity Credit Corporation (CCC) is adopting as a final

rule the provisions of the proposed rule published January 10, 1996,

(61 FR 704) regarding implementation of the Market Promotion Program

(MPP) authorized by Section 203 of the Agricultural Trade Act of 1978,

7 U.S.C. 5623. Specifically, this rule extends the period of time

following the expiration of the marketing year during which

participants may pay for approved market development activities and

still be entitled to receive reimbursement from CCC. This period of

time is extended from 30 days to 4 months. This change eases

administrative requirements by affording program participants

additional time to obtain invoices and other documentation which

supports the completion of overseas market development activities.

EFFECTIVE DATES: May 14, 1996.

FOR FURTHER INFORMATION CONTACT: Sharon McClure or Denise Fetters at

(202) 720-5521.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule is issued in conformance with Executive Order

12866. Based on information compiled by the Department, it has been

determined that this rule:

(1) Would have an annual effect on the economy of less than $100

million;

(2) Would not adversely affect in a material way the economy, a

sector of the economy, productivity, competition, jobs, the

environment, public health or safety, or State, local, or tribal

governments or communities;

(3) Would not create a serious inconsistency or otherwise interfere

with an action taken or planned by another agency;

(4) Would not alter the budgetary impact of entitlements, grants,

user fees, or loan programs or rights and obligations of recipients

thereof; and

(5) Would not raise novel legal or policy issues arising out of

legal mandates, the President's priorities, or principles set forth in

Executive Order 12866.

The Department of Agriculture is committed to carrying out its

statutory and regulatory mandates in a manner that best serves the

public interest. Therefore, where legal discretion permits, the

Department actively seeks to promulgate regulations that promote

economic growth, create jobs, are minimally burdensome and are easy for

the public to understand, use of comply with. In short, the Department

is committed to issuing regulations that maximize net benefits to

society and minimize costs imposed by those regulations.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this final rule since CCC is not required by 5 U.S.C. 553

or any other provision of law to publish a notice of rulemaking with

respect to the subject matter of this rule.

Paperwork Reduction Act

The final rule does not impose any new reporting or record keeping

requirements. The information collection requirements for participating

in the MPP were approved for use by the Office of Management and Budget

under OMB control number 0551-0027.

Executive Order 12372

This final rule is not subject to the provisions of Executive Order

12372 which requires intergovernmental consultation with state and

local officials. See the Notice related to 7 CFR part 3015, subpart V,

published at 46 FR 29115 (June 24, 1983).

Executive Order 12778

This final rule has been reviewed under the Executive Order 12778,

Civil Justice Reform. The rule would have pre-emptive effect with

respect to any state or local laws, regulations, or policies which

conflict with such provisions or which otherwise impede their full

implementation. The rule would not have retroactive effect.

Administrative proceedings are not required before parties may seek

judicial review.

Background

On February 1, 1995, the CCC published final rules at 60 FR 6352

governing the MPP. These new rules were applicable beginning with a

participant's 1995 marketing year. Following publication, CCC

participated with interested parties in five information sessions

designed to familiarize participants with the new regulations and offer

participants an additional opportunity to identify any problem areas.

At these sessions, there was considerable discussion concerning the

requirement that participants must completely pay for approved

activities not later than 30 days following the end of a participant's

activity plan year in order to receive reimbursement, 7 CFR

Sec. 1485.16(h)(3). As a result of these discussions, CCC published a

proposed rule on January 10, 1996, to amend the current requirement in

7 CFR Sec. 1485.16(h).

General Comments

The public was given 30 days to submit written comments on the

proposed rule. During this period, CCC received 5 letters from

nonprofit U.S. trade organizations. All commenters strongly supported

the proposed rule which would allow participants to transfer funds to

pay for activities not later than 4 months following the end of the

activity plan year and still be entitled to receive reimbursement from

CCC. The proposed rule is adopted as final. Since this final removes a

restriction, it is being made effective upon publication in the Federal

Register.

List of Subjects in 7 CFR Part 1485

Agricultural commodities, Exports.

Accordingly, 7 CFR Part 1485 is amended to read as follows:

[[Page 24206]]

PART 1485--AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR

AGRICULTURAL COMMODITIES

1. The authority citation for Part 1485 continues to read as

follows:

Authority: 7 U.S.C. 5623, 5662-5664 and sec. 1302, Pub. L. 103-

66, 107 Stat. 330.

Subpart B--Market Promotion Program

2. In Sec. 1485.16, paragraph (h) is revised to read as follows:

Sec. 1485.16 Reimbursement rules.

* * * * *

(h) CCC will reimburse for expenditures made after the conclusion

of participant's activity plan year provided:

(1) The activity was approved prior to the end of the activity plan

year;

(2) The activity was completed within 30 calendar days following

the end of the activity plan year; and

(3) all funds were transferred to pay for the activity within 4

months following the end of the activity plan year.

Signed at Washington, D.C. on May 8, 1996.

Timothy J. Galvin,

Acting Administrator, Foreign Agricultural Service and Vice President,

Commodity Credit Corporation.

[FR Doc. 96-12055 Filed 5-13-96; 8:45 am]

BILLING CODE 3410-10-M