Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Proposed Rules 46027 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1485 

RIN 0551–AA72 

Market Access Program 

AGENCY: Foreign Agricultural Service 

and Commodity Credit Corporation, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

revise and amend the regulations at 7 

CFR part 1485 used to administer the 

Market Access Program (MAP) by 

updating and merging the application 

requirements and the activity plan 

requirements to reflect the Unified 

Export Strategy (UES) system currently 

in place; clarifying the eligibility of 

activities designed to address 

international market access issues; 

modifying the list of eligible and 

ineligible contributions; revising the 

portions of the regulation regarding 

evaluations, contracting procedures, and 

the compliance review and appeals 

process; eliminating the Export 

Incentive Program/Market Access 

Program (EIP/MAP) as a separate 

subcomponent; and making other 

administrative changes for clarity and 

program integrity. 

DATES: Comments concerning this 

proposed rule must be received by 

November 9, 2009 to be assured 

consideration. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal e-Rulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instructions for submitting 

comments. 

• E-Mail: podadmin@fas.usda.gov. 

• Fax: (202) 720–9361. 

• Hand Delivery or Courier: U.S. 

Department of Agriculture, Foreign 

Agricultural Service, Office of Trade 

Programs, Program Operations Division, 

Portals Office Building, Suite 400, 1250 

Maryland Avenue, SW., Washington, 

DC 20024. 

• U.S. Postal Delivery: U.S. 

Department of Agriculture, Foreign 

Agricultural Service, Office of Trade 

Programs, Program Operations Division, 

Stop 1023, 1400 Independence Avenue, 

SW., Washington, DC 20250–1042. 

Comments may be inspected in Suite 

400, Portals Building, 1250 Maryland 

Avenue, SW., Washington, DC, between 

8 a.m. and 4:30 p.m., Monday through 

Friday, except holidays. A copy of this 

proposed rule is available through the 

Foreign Agricultural Service (FAS) 

home page at: http://www.fas.usda.gov/ 

mos/programs/map.asp. 

FOR FURTHER INFORMATION CONTACT: 

Mark Slupek by phone at (202) 720– 

4327, by fax at (202) 720–9361, or by 

e-mail at: podadmin@fas.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On May 23, 2007, the Commodity 

Credit Corporation (CCC) published an 

advance notice of proposed rulemaking 

and public hearing in the Federal 

Register (72 FR 28901). This notice was 

intended to solicit comments on 

whether to amend and revise the 

existing MAP regulations. In addition, 

CCC held a public hearing on July 25, 

2007, to receive oral and written 

comments. This proposed rule includes 

changes based on public comments and 

CCC’s experience in operating the 

program. The following changes are 

proposed: 

CCC proposes to add a separate 

paragraph to note explicitly the 

applicability of other Federal statutes 

and regulations to the activities of MAP 

participants. CCC also proposes to add 

new definitions and to delete obsolete 

definitions. Of note, CCC proposes to 

clarify the definitions of U.S. 

agricultural commodity, brand 

promotion, CCC, contribution, credit 

memo, expenditure, generic promotion, 

supergrade, and small-sized entity. CCC 

proposes to remove the definitions of 

activity plan, activity plan amendment 

request (APAR), deputy administrator, 

division director, EIP/MAP, EIP/MAP 

participant, eligible commodity, 

exported commodity, unfair trade 

practice, U.S. commercial entity, and 

U.S. industry contribution. CCC 

proposes to add definitions of 

administrative expenses or costs, 

approval letter, brand participant, UES 

Web site, FAS Web site, notification, 

program agreement, program year, 

temporary contractor, U.S. for-profit 

entity, and UES. 

CCC proposes to modify the language 

that describes the application process 

and activity plan. CCC proposes to 

update and merge the list of application 

requirements and the activity plan 

requirements to better reflect the UES 

system that has been in place for several 

years. 

CCC proposes to modify the lists of 

reimbursable and non-reimbursable 

activities to clarify the reimbursability 

of certain activities, e.g., to allow 

reimbursement for the use of electronic 

media in advertising (such as radio, 

television, electronic mail, Internet, 

telephone, text messaging, and 

podcasting) and portable electronic 

communications devices (such as 

mobile phones, wireless e-mail devices, 

and personal digital assistants). Other 

clarifications address overseas office 

expenses, legal expenses, market 

research, coupons, permanent displays, 

subscriptions to publications, travel 

reimbursement, Office of Management 

and Budget (OMB) Circular A–133 

audits, and translation of written 

materials. CCC also proposes to clarify 

that expenditures associated with 

educational training designed to 

improve market access by addressing 

temporary or permanent trade barriers 

are reimbursable. Such activities are 

currently allowable, but were not 

specifically identified in the regulation. 

CCC proposes to modify the list of 

reimbursable activities to include 

development and use of Web sites; 

production of business cards that target 

a foreign audience; expenditures 

associated with conducting 

international staff conferences; 

expenditures related to copyright, 

trademark, or patent registration; leasing 

storage space overseas for storing 

program materials; and business class 

travel to be more consistent with the 

federal travel regulation. 

Throughout the program’s history, 

certain domestic administrative costs 

have been reimbursable for regional or 

national groupings of state departments 

of agriculture. CCC proposes to broaden 

this eligibility to allow for domestic 

administrative costs for the Intertribal 

Agriculture Council, which is a similar 

grouping of Native American and 

Alaskan tribes. 

CCC proposes to modify the list of 

non-reimbursable activities to make 

ineligible expenditures on activities that 

include derogatory references or 

negative comparisons to other U.S. 

agricultural commodities and 

contributions to a contingency reserve. 

CCC also proposes to clarify that if a 

MAP participant discovers that MAP 

funds have not been spent properly, the 

participant has 30 days to inform CCC 

and repay the amount misspent. 

CCC proposes to clarify, separate, and 

include in a new paragraph MAP 

contribution rules that were originally 

subsumed in the application process 

paragraph. 

CCC proposes to separate existing 

paragraphs entitled ‘‘Financial 

management, reports, evaluations, and 

appeals’’ and ‘‘Miscellaneous 

provisions’’ into multiple paragraphs to 

provide greater clarity. CCC proposes to 

establish separate paragraphs to 

describe the compliance review and 

appeals processes; amendment of 

agreements; termination of agreements; 

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46028 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Proposed Rules 

consequences of noncompliance with 

agreements; as well as new paragraphs 

on financial management, evaluation, 

information disclosure, ethical conduct, 

physical property, program income, and 

reporting. CCC proposes to extend the 

due date for evaluation reports and 

annual performance reports to 180 days 

following the end of a program year. 

CCC proposes a new paragraph 

establishing new requirements for a 

participant to submit to CCC, for CCC’s 

approval, a contracting plan that 

outlines its procedures for developing 

and publicizing requests for proposals, 

invitations for bids, and similar 

documents that solicit third-party offers 

to provide goods or services; procedures 

for reviewing proposals, bids, or other 

offers to provide goods and services; 

and other contracting requirements, 

including conflict of interest provisions 

that extend beyond the relevant actor’s 

immediate family. 

In addition, CCC proposes to add a 

paragraph requiring MAP participants 

that operate brand programs under MAP 

to establish certain operational 

procedures outlined in this proposed 

rule. 

CCC also proposes to add a paragraph 

imposing new requirements on 

participants to establish and maintain a 

fraud prevention program and to report 

to CCC any allegations regarding 

potential fraud against the program. 

Finally, CCC proposes to eliminate 

the EIP/MAP subcomponent, which was 

a part of the program limited to forprofit entities that entered into 

agreements with CCC. This applied 

when the program was available to large 

companies, but such companies are no 

longer eligible for the program. 

Executive Order 12866 

This proposed rule is issued in 

conformance with Executive Order 

12866. It has been determined to be not 

significant for the purposes of Executive 

Order 12866 and was not reviewed by 

OMB. A cost-benefit assessment of this 

rule was not completed. 

Executive Order 12988 

This rule has been reviewed in 

accordance with Executive Order 12988. 

This rule does not preempt State or 

local laws, regulations, or policies 

unless they present an irreconcilable 

conflict with this rule. This rule would 

not be retroactive. 

Executive Order 12372 

This program is not subject to 

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 48 FR 29115 (June 24, 

1983). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule because CCC is not 

required by 5 U.S.C. 553 or any other 

law to publish a notice of proposed 

rulemaking with respect to the subject 

matter of this rule. 

Environmental Assessment 

CCC has determined that this 

proposed rule 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), 40 CFR part 1502.4, ‘‘Major 

Federal Actions Requiring the 

Preparation of Environmental Impact 

Statements’’ and the regulations of the 

Council on Environmental Quality, 40 

CFR parts 1500–1508, no environmental 

assessment or environmental impact 

statement will be prepared. 

Unfunded Mandates 

Although we are publishing this as a 

proposed rule, Title II of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

does not apply to this rule because it 

does not impose any enforceable duty or 

contain any unfunded mandate as 

described under the UMRA. 

Paperwork Reduction Act of 1995 

In accordance with the Paperwork 

Reduction Act of 1995, FAS has 

previously received approval from OMB 

with respect to the information 

collection required to support this 

program. The information collection is 

described below: 

Title: Foreign Market Development 

Program (FMD) and Market Access 

Program (MAP); 

OMB Control Number: 0551–0026. 

E-Government Act Compliance 

CCC is committed to complying with 

the E-Government Act to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services and for other purposes. The 

forms, regulations, and other 

information collection activities 

required to be utilized by a person 

subject to this rule are available at: 

http://www.fas.usda.gov. 

List of Subjects in 7 CFR Part 1485 

Agricultural commodities, Exports. 

For the reasons stated in the 

preamble, CCC proposes to amend 7 

CFR part 1485 as follows: 

PART 1485—GRANT AGREEMENTS 

FOR THE DEVELOPMENT OF 

FOREIGN MARKETS FOR U.S. 

AGRICULTURAL COMMODITIES 

1. The authority citation for 7 CFR 

part 1485 continues to read as follows: 

Authority: 7 U.S.C. 5623; 7 U.S.C. 5662– 

5663 and sec. 1302, Public Law 103–66, 107 

Stat. 330. 

2. Subpart B is revised to read as 

follows: 

Subpart B—Market Access Program 

Sec. 

1485.10 General purpose and scope. 

1485.11 Definitions. 

1485.12 Participation eligibility. 

1485.13 Application process. 

1485.14 Application review and formation 

of agreements. 

1485.15 Operational procedures for brand 

programs. 

1485.16 Contribution rules. 

1485.17 Reimbursement rules. 

1485.18 Reimbursement procedures. 

1485.19 Advances. 

1485.20 Employment practices. 

1485.21 Financial management. 

1485.22 Reports. 

1485.23 Evaluation. 

1485.24 Compliance reviews and notices. 

1485.25 Failure to make required 

contribution. 

1485.26 Submissions. 

1485.27 Disclosure of program information. 

1485.28 Ethical conduct. 

1485.29 Contracting procedures. 

1485.30 Property standards. 

1485.31 Anti-fraud requirements. 

1485.32 Program income. 

1485.33 Amendment. 

1485.34 Noncompliance with an agreement. 

1485.35 Suspension, termination, and 

closeout of agreements. 

1485.36 Paperwork reduction requirements. 

Subpart B—Market Access Program 

§ 1485.10 General purpose and scope. 

(a) This subpart sets forth the general 

terms, conditions, and policies 

governing the Commodity Credit 

Corporation’s (CCC) operation of the 

Market Access Program (MAP). 

(b)(1) In addition to the provisions of 

this subpart, other regulations of general 

application issued by the U. S. 

Department of Agriculture (USDA), 

including the regulations set forth in 

Chapter XXX of this title, ‘‘Office of the 

Chief Financial Officer, Department of 

Agriculture,’’ may apply to the MAP. 

These include, but are not limited to: 

(i) 7 CFR part 1, subpart A—Official 

Records 

(ii) 7 CFR part 3—Debt Management 

(iii) 7 CFR part 15, subpart A— 

Nondiscrimination 

(iv) 7 CFR part 3015—Uniform Federal 

Assistance Regulations 

(v) 7 CFR part 3016—Uniform 

Administrative Requirements for 

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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Proposed Rules 46029 

Grants and Cooperative Agreements 

to State and Local Governments 

(vi) 7 CFR part 3017—Government-wide 

Debarment and Suspension 

(Nonprocurement) 

(vii) 7 CFR part 3018—New Restrictions 

on Lobbying 

(viii) 7 CFR part 3019—Uniform 

Administrative Requirements for 

Grants and Other Agreements with 

Institutions of Higher Education, 

Hospitals, and Other Nonprofit 

Organizations 

(ix) 7 CFR part 3021—Government-wide 

requirements for drug-free 

workplace (financial assistance) 

(x) 7 CFR part 3052—Audits of States, 

Local Governments, and Non-profit 

Organizations 

(xi) 48 CFR part 31—Contract Cost 

Principles and Procedures of the 

Federal Acquisition Regulations. 

(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 CCC are 

also applicable to the MAP and the 

regulations set forth in this part. 

(3) MAP participants must also 

comply with Title VI for the Civil Rights 

Act of 1964 and related civil rights 

regulations and policies. 

(c) Under the MAP, CCC may provide 

grants to eligible U.S. entities to conduct 

certain marketing and promotion 

activities aimed at developing, 

maintaining, or expanding commercial 

export markets for U.S. agricultural 

commodities and products. MAP 

participants may receive assistance for 

either generic or brand promotion 

activities. While activities generally take 

place overseas, reimbursable activities 

may also take place in the United States. 

When considering eligible nonprofit 

U.S. trade organizations, CCC gives 

priority to organizations that have the 

broadest producer representation and 

affiliated industry participation of the 

commodity being promoted. 

(d) The MAP generally operates on a 

reimbursement basis. 

(e) CCC’s policy is to ensure that 

benefits generated by MAP agreements 

are broadly available throughout the 

relevant agricultural sector and that no 

single entity gains an undue advantage. 

CCC also endeavors to enter into MAP 

agreements covering a broad array of 

agricultural commodity sectors. The 

MAP is administered by personnel of 

the Foreign Agricultural Service (FAS) 

acting on behalf of CCC. 

§ 1485.11 Definitions. 

For purposes of this subpart the 

following definitions apply: 

Activity—a specific foreign market 

development effort undertaken by a 

MAP participant. 

Administrative expenses or costs— 

expenses or costs of administering, 

directing, and controlling an 

organization that is a MAP participant 

that are not directly identifiable with a 

specific market promotion activity. 

Generally, this would include expenses 

or costs such as those related to: 

(1) Maintaining a physical office 

(including, but not limited to, rent, 

office equipment, office supplies, office 

de ́cor, office furniture, computer 

hardware and software, maintenance, 

extermination, parking, business cards); 

(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, personal digital 

assistants, e-mail, mobile e-mail 

devices, 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, teambuilding, 

recruiting, hiring); 

(5) Utilities (including, but not 

limited to, sewer, water, energy); 

(6) Professional services (including, 

but not limited to, accounting expenses, 

financial services, investigatory 

services). 

Approval letter—a document by 

which CCC informs an applicant that its 

MAP application for a program year has 

been approved for funding. This letter 

may also approve specific activities and 

contain terms and conditions in 

addition to the program agreement. This 

letter requires a countersignature by the 

MAP participant before it becomes 

effective. 

Attache ́/Counselor—the FAS 

employee representing USDA interests 

in the foreign country in which 

promotional activities are conducted. 

Brand participant—a small-sized U.S. 

for-profit entity or a non-profit U.S. 

agricultural cooperative that owns the 

brand(s) of the U.S. agricultural 

commodity to be promoted or has the 

exclusive rights to use such brand(s) 

and that is participating in the MAP 

brand promotion program of another 

MAP participant. 

Brand promotion—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 any activity undertaken by 

a MAP participant in the brand 

program. 

CCC—the Commodity Credit 

Corporation, including any agency or 

official of the United States delegated 

the responsibility to act on behalf of 

CCC. 

Contribution—an expenditure made 

by a MAP participant or U.S. industry 

in support of an approved activity. 

Credit memo—a commercial 

document, also known as a credit 

memorandum, issued by the MAP 

participant to a commercial entity that 

owes the MAP participant a certain 

sum. A credit memo is used when the 

MAP participant owes the commercial 

entity a sum less than the amount the 

entity owes the participant. The credit 

memo reflects an offset of the amount 

the MAP participant owes the entity 

against the amount the entity owes to 

the MAP participant. 

Demonstration projects—activities 

involving the erection or construction of 

a structure or facility or the installation 

of equipment. 

Expenditure—either payment via the 

transfer of funds or offset reflected in a 

credit memo in lieu of a transfer of 

funds. 

FAS—Foreign Agricultural Service, 

USDA. 

FAS Web site—a Web site maintained 

by FAS providing information on MAP. 

It is currently accessible at 

www.fas.usda.gov/mos/programs/ 

map.asp. 

Foreign third party—a foreign entity 

that works with a MAP participant, in 

accordance with an approved MAP 

program agreement and/or approval 

letter, in promoting the export of a U.S. 

agricultural commodity. 

Generic promotion—an activity that is 

not a brand promotion but, rather, 

promotes a U.S. agricultural commodity 

generally. 

MAP—the Market Access Program. 

MAP participant or Participant—an 

entity that has entered into a MAP 

program agreement with CCC. 

Market—the country or countries 

targeted by an activity. 

Notification—a document from the 

MAP participant by which the MAP 

participant proposes to CCC changes to 

the activities and/or funding levels in an 

approved MAP program agreement and/ 

or approval letter. 

Program agreement—a document 

entered into between CCC and a MAP 

participant setting forth the terms and 

conditions of approved activities under 

MAP, including any subsequent 

amendments to such agreement. 

Program year—Unless otherwise 

agreed in writing between CCC and a 

MAP participant, a 12-month period 

during which a MAP participant can 

undertake activities consistent with this 

subpart and its program agreement with 

CCC. 

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46030 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Proposed Rules 

Promoted commodity—a U.S. 

agricultural commodity the sale of 

which is the intended result of a 

promotion activity. 

Sales and trade relations 

expenditures (STRE)—expenditures 

made on breakfast, lunch, dinner, 

receptions, and refreshments at 

approved activities; miscellaneous 

courtesies such as checkroom fees, taxi 

fares and tips; and decorations for a 

special promotional occasion. 

Sales team—a group of individuals 

engaged in an approved activity 

intended to result in specific sales. 

Small-sized entity—a U.S. commercial 

entity that meets the small business size 

standards published at 13 CFR part 121, 

Small Business Size Regulations. 

SRTG—the acronym for State 

Regional Trade Group. An SRTG is an 

association of State Departments of 

Agriculture. 

Supergrade—a salary level above the 

reimbursable salary range generally 

allowable under MAP, which CCC may 

approve on a case by case basis. This 

salary level is available only for certain 

non-U.S. employees who direct 

participants’ overseas offices. 

Temporary contractor—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—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 Web site—a Web site maintained 

by FAS through which applicants may 

apply online to MAP and any other 

USDA market promotion program. The 

Web site is currently accessible at 

http://www.fas.usda.gov/mos/ues/ 

unified.asp. 

Unified Export Strategy (UES)—is a 

standardized online Internet application 

developed by USDA and available for 

use by entities to apply to any USDA 

market development program. 

U.S. agricultural commodity—any 

food, feed, fiber, forestry product, 

livestock, or insect of U.S. origin or 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, excluding tobacco. 

An agricultural commodity shall be 

considered to be U.S. origin if it is 

comprised of at least 50 percent by 

weight, exclusive of added water, of 

agricultural commodities grown or 

raised in the United States. 

USDA— the United States 

Department of Agriculture. 

U.S. for-profit entity—a firm, 

cooperative, 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 a U.S. agricultural commodity. 

§ 1485.12 Participation eligibility. 

To participate in the MAP, an entity 

shall be: 

(a) A nonprofit U.S agricultural trade 

organization; 

(b) A nonprofit SRTG; 

(c) A nonprofit U.S. agricultural 

cooperative; or 

(d) A State agency. 

§ 1485.13 Application process. 

(a) General application requirements. 

CCC will periodically publish a Notice 

in the Federal Register that it is 

accepting applications for participation 

in MAP. Applications shall be 

submitted in accordance with the terms 

and requirements specified in the 

Notice and in these regulations. 

Applicants are encouraged to submit a 

UES through the UES Internet Web site, 

but are not required to do so. Applicants 

may apply to conduct a generic 

promotion program, a brand promotion 

program that provides MAP funds to 

brand participants for branded 

promotion, or both. 

(1) Applicant and program 

information. 

(i) All applications shall contain: 

(A) The name, address, and Internet 

location of the home page of the 

applicant organization; 

(B) The name of the applicant’s Chief 

Executive Officer; 

(C) The name, telephone number, fax 

number, and e-mail address of the 

applicant’s primary contact person; 

(D) The name(s) of the person(s) 

responsible for managing the proposed 

program; 

(E) A description of the applicant 

organization, including the type of 

organization of the applicant (e.g., 

nonprofit SRTG), its mission, and the 

statutory authorities by which it is 

constituted and under which it operates, 

if applicable; 

(F) Tax exempt identification number 

of the applicant, if applicable; 

(G) Beginning and ending dates for 

proposed program year (mm/dd/yy– 

mm/dd/yy); 

(H) Dollar amount of CCC resources 

requested for generic activities; 

(I) Dollar amount of CCC resources 

requested for brand activities; 

(J) Percentage of CCC resources 

requested for brand activities that will 

be made available to small-sized 

entities; 

(K) Total dollar amount of CCC 

resources requested; 

(L) Percentage of CCC resources 

requested for general administrative 

expenses; 

(M) A Dun and Bradstreet DUNS 

number for the applicant; 

(N) A description of the applicant 

organization’s membership and 

membership criteria; 

(O) A list of organizations affiliated 

with the applicant, including parent 

organizations, subsidiaries, and 

partnerships; 

(P) A description of the applicant’s 

management and administrative 

capability; 

(Q) A description of the applicant’s 

prior export promotion experience; 

(R) Value, in U.S. dollars, of proposed 

contributions from the applicant; 

(S) The applicant’s proposed 

contribution stated as a percentage of 

the total dollar amount of CCC resources 

requested; and 

(T) Value, in U.S. dollars, of proposed 

contributions from other sources. 

(ii) [Reserved] 

(2) Program justification. 

(i) All applications shall contain: 

(A) A description of the promoted 

U.S. agricultural commodity(s), its 

harmonized system code, the applicable 

commodity aggregate code (available 

from the UES Web site) and the 

percentage of U.S. origin content by 

weight, exclusive of added water; 

(B) A description of the anticipated 

supply and demand situation for the 

promoted U.S. agricultural 

commodity(s); 

(C) The volume and value of exports 

of the promoted U.S. agricultural 

commodity(s) to the targeted markets for 

the most recent 3-year period; 

(D) If the proposal is for 2 or more 

years, an explanation why the proposal 

should be funded on a multi-year basis; 

and 

(E) A certification and, if requested by 

CCC, a written explanation supporting 

the certification that any funds received 

will supplement, but not supplant, any 

private or third-party funds or other 

contributions to program activities. An 

explanation, if one is requested, shall 

indicate why the applicant is unlikely to 

carry out the activities without Federal 

financial assistance. In determining 

whether Federal funds would 

supplement or supplant private or thirdparty funds or contributions, CCC will 

consider the applicant’s prior overall 

marketing budget in the MAP program 

from year-to-year, variations in 

promotional strategies within a country, 

and new markets. 

(ii) [Reserved] 

(3) Proposed program’s strategic plan. 

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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Proposed Rules 46031 

(i) All applications shall include a 

strategic plan that contains: 

(A) A description of overall long term 

strategic goals to be advanced by the 

proposed activities for the ensuing 3–5 

years; 

(B) An explanation of the 

organization’s strategic planning process 

and identification of priority target 

markets, including a summary of 

proposed budgets by country and 

commodity aggregate code; 

(C) A description of the world market 

situation for the exported U.S. 

agricultural commodity(s); 

(D) A description of competition from 

other exporters; 

(E) A statement of goals and the 

applicant’s plans for monitoring and 

evaluating performance towards 

achieving these goals; 

(F) For each country, 5 years or as 

many years as are available of: 

(1) Historical U.S. export data; 

(2) U.S. market share; and 

(3) MAP funds received by the 

applicant; 

(G) For each target country, 3 years of 

projected U.S. export data and U.S. 

market share; 

(H) Country strategy, including 

market constraint(s) impeding U.S. 

exports (e.g., trade barriers) or 

opportunities present and the strategy 

proposed to overcome constraints or 

take advantage of the opportunities, 

previous activities in the country, and 

the projected impact of the proposed 

program on U.S. exports; 

(I) A justification for any proposed 

overseas office, including a staffing plan 

listing job titles, position descriptions, 

salary ranges, any request for approval 

of supergrade salaries, and an itemized 

administrative budget; 

(J) A description of any demonstration 

projects, if applicable; 

(K) Data summarizing the applicant’s 

historical and projected exports, market 

share, and MAP budgets of the 

promoted U.S. agricultural 

commodity(s); 

(L) A written presentation of all 

proposed activities including: 

(1) A short description of the relevant 

market constraint or opportunity; 

(2) A budget for each proposed 

activity, identifying the source of funds; 

and 

(M) An evaluation plan setting forth 

specific goals and benchmarks set at 

regular intervals to be used to identify 

results against identified constraints and 

opportunities and to measure progress 

made in the target market. Evaluation of 

a proposed MAP program’s effectiveness 

will depend on a clear statement by the 

applicant of goals, method of 

achievement, and expected results of 

programming at regular intervals. The 

overall goal of the MAP and of 

individual participants’ programming is 

to achieve or maintain sales that would 

not have occurred in the absence of 

MAP funding. A MAP participant may 

modify and resubmit this plan for reapproval at any time during the program 

year. 

(ii) Applications for brand promotion 

assistance shall also include in their 

strategic plans: 

(A) A description of how the brand 

promotion program will be publicized 

to U.S. industry; and 

(B) The criteria that will be used to 

allocate funds to U.S. for-profit entities. 

(b) CCC may request any additional 

information that it deems necessary to 

evaluate an application, including, but 

not limited to, performance 

measurement information. 

(c) Special rules governing 

demonstration projects funded with 

CCC resources. 

(1) CCC will consider proposals for 

demonstration projects, provided: 

(i) No more than one such 

demonstration project per constraint is 

undertaken within a market; 

(ii) The constraint to be addressed in 

the target market is a lack of technical 

knowledge or expertise; 

(iii) The demonstration project is a 

practical and cost effective method of 

overcoming the constraint; and 

(iv) A third-party must participate in 

such project through a written 

agreement. 

§ 1485.14 Application review and 

formation of agreements. 

(a) General. CCC will, subject to the 

availability of funds, approve those 

applications that it considers to present 

the best opportunity for developing, 

maintaining, or expanding export 

markets for U.S. agricultural 

commodities. The selection process, by 

its nature, involves the exercise of 

judgment. CCC’s choice of participants 

and proposed promotion projects 

requires that it consider and weigh a 

number of factors, some of which 

cannot be mathematically measured— 

e.g., market opportunity, market 

strategy, and management capability. 

CCC may require that an applicant 

participate in the MAP through another 

MAP participant or applicant. 

(b) Application review criteria. In 

assessing the likelihood of success of 

the applications it receives and deciding 

which it will approve, CCC will follow 

results-oriented management principles 

and consider the following criteria: 

(1) The effectiveness of program 

management; 

(2) Soundness of accounting 

procedures; 

(3) The nature of the applicant 

organization, with preference given to 

those organizations with the broadest 

base of producer representation and 

affiliated industry participation; 

(4) Prior export promotion experience; 

(5) Appropriateness of staffing; 

(6) Adequacy of the applicant’s 

strategic plan in the following 

categories; 

(i) Description of target market 

conditions; 

(ii) Description of, and plan for 

addressing, market constraints and 

opportunities; 

(iii) Breadth of industry participation 

in strategic planning process; 

(iv) Strategic prioritization identified 

in proposed plan; 

(v) Export volume and value and 

market share goals in each target 

country; 

(vi) Description of evaluation plan 

and suitability of the plan for 

performance measurement; and 

(vii) Past program results and/or 

evaluations, including program success 

stories. 

(c) Allocation factors. CCC determines 

which applications to approve and 

develops preliminary recommended 

funding levels for each approved 

application based on the following 

factors, in addition to those in 

paragraph (b) of this section. CCC 

determines final funding levels after 

allocating available funds to approved 

applications on the basis of criteria that 

will be fully described in each program 

year’s MAP announcement in the 

Federal Register: 

(1) Size of the budget request in 

relation to projected value of exports; 

(2) Where applicable, size of the 

budget request in relation to actual 

value of exports in prior years; 

(3) Where applicable, participant’s 

past projections of exports compared 

with actual exports; 

(4) Level of contributions by the 

applicant and by all other sources; 

(5) Market share goals in target 

country(ies); 

(6) The percentage by weight, 

exclusive of added water, of U.S. 

agricultural commodities contained in 

the promoted products; 

(7) The degree of value-added 

processing in the United States; 

(8) General administrative and 

overhead costs compared to direct 

promotional costs; and 

(9) In the case of a brand promotion 

program, the percentage of the budget 

that will be made available to smallsized entities as a means of providing 

priority assistance to such entities. 

(d) Approval decision. 

(1) CCC will approve those 

applications that it determines best 

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satisfy the criteria and factors specified 

above. 

(2) Notification of decision. CCC will 

notify each applicant in writing of the 

final disposition of its application. 

(e) 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 

MAP 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 must 

so indicate by having its Chief Executive 

Officer (CEO) or designee sign the 

program agreement or amendment and 

submit it to CCC. Final agreement shall 

occur when the program agreement or 

amendment is signed on behalf of CCC. 

(f) Signature cards. The MAP 

participant shall designate at least two 

individuals in its organization to sign 

program agreements, reimbursement 

claims, and advance requests. The MAP 

participant shall submit the signature 

card signed by those designated 

individuals and by the participant’s 

CEO to CCC. The participant shall 

immediately notify CCC of any changes 

in signatories and shall submit a revised 

signature card accordingly. 

(g) UES ID and passwords. CCC will 

provide each MAP participant with IDs 

and passwords for the UES website, as 

necessary. MAP participants shall 

protect these IDs and passwords in 

accordance with USDA’s information 

technology policies that CCC will 

provide to MAP participants. MAP 

participants shall immediately notify 

CCC whenever a person who possesses 

the ID and password information no 

longer needs such information or a 

person who is not authorized gains such 

information. 

(h) A MAP participant through which 

small-sized U.S. for-profit entities are 

participating in the MAP program shall 

obtain annual certifications from all 

such entities that they are small-sized 

entities as defined in these regulations. 

The participant shall retain these 

certifications in accordance with the 

recordkeeping requirements of this 

subpart. 

(i) Changes to activities and funding. 

(1) Adding a new activity. 

(i) A MAP participant may not add a 

new activity to its approved MAP 

program without first obtaining CCC 

written approval of such change. To 

request approval of such change, the 

MAP participant shall submit a 

notification to CCC. 

(ii) A notification for a new activity 

shall provide an activity justification 

and proposed activity strategic plan 

similar to the program justification and 

proposed program’s strategic plan 

required in new applications. The 

notification shall contain the activity 

description, the proposed budget, and a 

justification of transfer of funds. 

(iii) After receipt of the notification, 

CCC will inform the MAP participant in 

writing whether the requested change is 

approved. 

(2) Deleting or modifying existing 

activities and funding levels. 

(i) A MAP participant may make 

adjustments to its existing, approved 

activities and/or funding levels without 

prior approval of CCC, only if it submits 

a notification explaining the 

adjustments to CCC no later than 30 

days after the change. However, a MAP 

participant desiring to increase the 

funding level for existing, approved 

activities addressing a single constraint 

or opportunity by more than $10,000 or 

20 percent of the approved funding 

level, whichever is greater, must first 

submit a notification explaining the 

adjustment to CCC before making such 

change. If CCC does not disapprove of 

the proposed increase in funding level 

within 15 days, then the MAP 

participant may so adjust the level. 

(ii) A notification of a modified or 

deleted activity shall contain the 

activity description, the proposed 

budget, and a justification of transfer of 

funds, if applicable. 

(iii) A notification of changes to the 

approved funding levels of approved 

activities shall contain the activity 

description, the existing funding level, 

the proposed funding level, and a 

justification for transfer of funds, if 

applicable. 

§ 1485.15 Operational procedures for 

brand programs. 

(a) Where CCC approves an 

application by a MAP participant to run 

a brand promotion program that will 

include third party brand participants, 

the MAP participant shall establish 

brand program operational procedures. 

The MAP participant annually shall 

submit to CCC for approval, not later 

than 21 days prior to signing 

participation agreements with third 

party brand participants, its proposed 

brand program operational procedures 

for such program year. Such procedures 

shall include, at a minimum, a brand 

program application, application 

procedures, application review criteria, 

brand participant eligibility 

requirements, a participation agreement, 

reimbursement requirements, 

compliance requirements, reporting and 

recordkeeping requirements, 

employment practices, financial 

management requirements, contracting 

procedures, and evaluation 

requirements. 

(b) The MAP participant shall not 

enter into any participation agreements 

with third party brand participants nor 

shall it implement any MAP brand 

activities for the applicable program 

year unless and until CCC has 

communicated in writing its approval of 

the proposed operational procedures to 

the MAP participant. 

(c) Participation agreements between 

MAP participants and third party brand 

participants. Where CCC approves a 

MAP participant’s application to run a 

brand promotion program that will 

include third party brand participants, 

the MAP participant shall enter into 

participation agreements with third 

party brand participants. These 

agreements must: 

(1) Specify a time period for such 

third party brand promotion and require 

that all third party brand promotion 

expenditures be made within the MAP 

participant’s approved program year; 

(2) Make no allowance for extension 

or renewal; 

(3) Limit reimbursable expenditures 

to those made in countries and for 

activities approved in the third party 

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 third party 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 U.S. 

agricultural commodity as ‘‘Product of 

the U.S.’’, ‘‘Product of the U.S.A.’’, 

‘‘Grown in the U.S.’’, ‘‘Grown in the 

U.S.A.’’, ‘‘Made in America’’ or other 

U.S. regional designation if approved in 

advance by CCC; that such origin 

identification will be conspicuously 

displayed; 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’’. A MAP 

participant may request an exemption 

from this requirement on a case-by-case 

basis. All such requests shall be in 

writing and include justification 

satisfactory to CCC that this labeling 

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requirement would hinder a MAP 

participant’s promotional efforts. CCC 

will determine, on a case by case basis, 

whether sufficient justification exists to 

grant an exemption from the labeling 

requirement; 

(7) Include a written certification by 

the third party brand participant that it 

is a small-sized entity as defined in this 

subpart; 

(8) Require that the third party brand 

participant submit to the MAP 

participant a statement certifying that 

any Federal funds received will 

supplement, but not supplant, any 

private or third party funds or other 

contributions to program activities; and 

(9) Require the third party brand 

participant to maintain all original 

records and documents relating to 

program activities for 5 calendar years 

following the end of the applicable 

program year and make such records 

and documents available upon request 

to authorized officials of the U.S. 

Government. 

(d) MAP participants may not provide 

assistance to a single company, 

including a company reincorporated or 

re-organized under the same or different 

name if the reincorporated or reorganized company is substantially 

similar to the pre-existing company, for 

brand promotion in a single country for 

more than 5 years. Such 5 years do not 

need to be consecutive. Such 5-year 

period shall not begin prior to the 1994 

program year or the brand participant’s 

first program year, whichever is later. In 

limited circumstances, CCC may waive 

the 5-year limitation if CCC determines 

that further assistance is in the best 

interests of the MAP. CCC shall have the 

discretion to decide whether a 

reincorporated or re-organized company 

is substantially similar to the preexisting company for purposes of 

applying this 5-year rule. 

§ 1485.16 Contribution rules. 

(a) In MAP generic promotion 

programs, a MAP participant shall 

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 CCC for all generic 

promotion activities proposed to be 

undertaken by the participant. 

(b) In MAP brand promotion 

programs, a brand participant shall 

contribute at least 50 percent of the total 

eligible expenditures made on each 

approved brand promotion. 

(c) A MAP participant must use its 

own funds and may not use MAP 

program funds to pay any 

administrative costs of the MAP 

participant’s U.S. office(s), including 

legal fees, except as set forth in this 

subpart. 

(d) Eligible contributions. 

(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 in 

support of the entities’ related 

promotion activities in the markets 

covered by the applicant’s application) 

or State agency will make, the MAP 

applicant may include the costs listed 

under paragraph (d)(2) of this section if: 

(i) Expenditures will be made in 

furtherance of an approved activity, and 

(ii) The contributor has not been and 

will not be reimbursed by any source for 

such costs. 

(2) Subject to paragraphs (c) and (d)(1) 

of this section, 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 seasonal greeting 

cards; 

(ix) Fees for office parking; 

(x) The cost of subscriptions to 

publications; 

(xi) The cost of activities conducted 

overseas; 

(xii) Credit card fees; 

(xiii) The cost of any independent 

evaluation or audit that is not required 

by CCC to ensure compliance with 

program agreement or regulatory 

requirements; 

(xiv) The cost of giveaways, awards, 

prizes and gifts; 

(xv) The cost of product samples; 

(xvi) Fees for participating in U.S. 

Government activities; 

(xvii) The cost of air and local travel 

in the United States; 

(xviii) Payment of employee’s or 

contractor’s share of personal taxes; 

(xix) STRE in the United States and 

the cost associated with trade shows, 

seminars, and entertainment conducted 

in the United States; 

(xx) Other administrative expenses 

(e.g., supervisory travel from the U.S. to 

an overseas office); and 

(xxi) The cost of any activity 

expressly listed as reimbursable in this 

subpart. 

(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) Depreciation; 

(v) The cost of refreshments and 

related equipment provided to office 

staff; 

(vi) The cost of insuring articles 

owned by private individuals; 

(vii) The cost of any arrangement that 

has the effect of reducing the selling 

price of a U.S. agricultural commodity; 

(viii) The cost of product 

development, product modifications, or 

product research; 

(ix) Slotting fees or similar sales 

expenditures; 

(x) Membership fees in clubs and 

social organizations; and 

(xi) Any expenditure for an activity 

prior to CCC’s approval of that activity. 

(4) CCC shall determine, at CCC’s 

discretion, whether any cost not 

expressly listed in this section may be 

included by the MAP participant as an 

eligible contribution. 

§ 1485.17 Reimbursement rules. 

(a) A MAP participant may seek 

reimbursement for an eligible 

expenditure if: 

(1) The expenditure was made in 

furtherance of an approved activity; and 

(2) The participant has not been and 

will not be reimbursed for such 

expenditure by any other source. 

(b) Subject to paragraph (a) of this 

section, CCC will reimburse, in whole or 

in part, the cost of: 

(1) Production and placement of 

advertising, in print, electronic media, 

billboards, or posters, which may 

include advertising the availability of 

price discounts. Electronic media 

includes, but is not limited to, radio, 

television, electronic mail, internet, 

telephone, text messaging, and 

podcasting; 

(2) Production and distribution of 

banners, recipe cards, table tents, shelf 

talkers, and other similar point of sale 

materials; 

(3) Direct mail advertising; 

(4) In-store and food service 

promotions, product demonstrations to 

the trade and to consumers, and 

distribution of promotional samples; 

(5) Temporary displays and rental of 

space for temporary displays; 

(6) Expenditures, other than travel 

expenditures, associated with retail, 

trade, consumer exhibits and shows, 

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seminars, and educational training, 

including participation fees, booth 

construction, transportation of related 

materials, rental of space and 

equipment, and duplication of related 

printed materials; 

(7) International air travel, not to 

exceed the full fare economy rate, or 

other means of international 

transportation and per diem, as allowed 

under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304), for no more than two 

representatives of a single brand 

participant to exhibit their company’s 

products at a foreign trade show; 

(8) Subscriptions to publications that 

are of a technical, economic, or 

marketing nature and that are relevant 

to the approved activities of the 

participant; 

(9) Demonstrators, interpreters, 

translators, receptionists, and similar 

temporary workers who help with the 

implementation of discrete promotional 

activities, such as trade shows, in-store 

promotions, food service promotions, 

and trade seminars; 

(10) Giveaways, awards, prizes, gifts 

and other similar promotional materials, 

subject to such reimbursement 

limitation as CCC may, from time to 

time, determine and announce in 

writing to all MAP participants and on 

the FAS Web site; 

(11) The design and production of 

packaging, labeling or origin 

identification, to be used during the 

program year in which the expenditure 

is made, if such packaging, labeling or 

origin identification is necessary to meet 

the importing requirements of a foreign 

country; 

(12) The design, production, and 

distribution of coupons; 

(13) An audit of a MAP participant as 

required by the applicable parts of this 

title if the MAP is the MAP participant’s 

largest source of Federal funding; 

(14) The translation of written 

materials as necessary to carry out 

approved activities; and 

(15) Expenditures associated with 

developing, updating, and servicing 

Web sites on the Internet that clearly 

target a foreign audience. 

(c) Subject to paragraph (a) of this 

section, but for generic promotion 

activities only, CCC will also reimburse, 

in whole or in part, the cost of: 

(1) Compensation and allowances for 

housing, educational tuition, and cost of 

living adjustments paid to a U.S. citizen 

employee or a U.S. citizen contractor 

stationed overseas, 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, and 

(ii) Allowances that exceed the rate 

authorized for U.S. Embassy personnel; 

(2) Approved supergrade salaries for 

non-U.S. citizens and non-U.S. 

contractors; 

(3) Compensation of non-U.S. citizen 

staff employees or non-U.S. contractors 

subject to the following limitations: 

(i) Where there is a local U.S. 

Embassy Foreign Service National (FSN) 

salary plan, CCC will not reimburse any 

portion of such compensation that 

exceeds the compensation prescribed 

for the most comparable position in the 

FSN salary plan, except for approved 

supergrades, or 

(ii) Where an FSN salary plan does 

not exist, CCC will not reimburse any 

portion of such compensation that 

exceeds locally prevailing levels, which 

the MAP participant shall document by 

a salary survey or other mean, except for 

approved supergrades; 

(4) A retroactive salary adjustment for 

non-U.S. citizen staff employees or nonU.S. contractors that conforms to a 

change in FSN salary plans, effective as 

of the date of such change; 

(5) Accrued annual leave as of the 

time employment is terminated or as of 

such time as required by local law; 

(6) Overtime paid to clerical staff; 

(7) Temporary contractor fees, except 

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; 

(8) International travel expenses, 

including passports, visas and 

inoculations, except that CCC generally 

will not reimburse any portion of air 

travel in excess of the full fare economy 

rate or when the participant fails to 

notify the Attache ́/Counselor in the 

destination country in advance of the 

travel, 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. 

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. In very limited circumstances, 

CCC will reimburse air travel up to the 

business class rate (i.e., a premium class 

rate other than the first class rate). CCC 

will, from time to time, determine a 

policy regarding the appropriate 

circumstances and announce that policy 

in writing to all MAP participants and 

on the FAS web site; 

(9) Per diem, except that CCC will not 

reimburse per diem in excess of the 

rates allowed under the U.S. Federal 

Travel Regulations (41 CFR parts 301 

through 304); 

(10) Automobile mileage at the local 

U.S. Embassy rate or rental cars while 

in travel status; 

(11) Other allowable expenditures 

while in travel status as authorized by 

the U.S. Federal Travel Regulations (41 

CFR parts 301 through 304); 

(12) Organization costs for overseas 

offices approved in MAP program 

agreements. Such costs include 

incorporation fees, brokers’ fees, fees to 

attorneys, accountants, or investment 

counselors, whether or not employees of 

the organization, incurred in connection 

with the establishment or reorganization 

of the overseas office, and rent, utilities, 

communications originating overseas, 

office supplies, accident liability 

insurance premiums, and routine 

accounting and legal services required 

to maintain the overseas office; 

(13) The purchase, lease, or repair of, 

or insurance premiums for, capital 

goods that have an expected useful life 

of at least 1 year, such as furniture, 

equipment, machinery, removable 

fixtures, draperies, blinds, floor 

coverings, computer hardware and 

software, and portable electronic 

communications devices (including 

mobile phones, wireless e-mail devices, 

personal digital assistants); 

(14) Such premiums for health or 

accident insurance and other benefits 

for foreign national employees that the 

employer is required by law to pay; 

(15) Accident liability insurance 

premiums for facilities used jointly with 

third-party participants for MAP 

activities or for travel of non-MAP 

participant personnel; 

(16) Market research, including 

research to determine the types of 

products that are desired in a market; 

(17) Independent evaluations or 

audits, if not otherwise required by 

CCC, to ensure compliance with 

program agreement or regulatory 

requirements; 

(18) Legal fees to obtain advice on the 

host country’s labor laws; 

(19) Employment agency fees; 

(20) STRE; 

(21) Educational travel of dependent 

children, visitation travel, rest and 

recuperation travel, home leave travel, 

emergency visitation travel for U.S. 

overseas employees allowed under the 

Foreign Affairs Manual published by the 

U.S. Department of State; 

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(22) Evacuation payments (safe haven) 

and shipment and storage of household 

goods and motor vehicles; 

(23) Domestic administrative support 

expenses for the National Association of 

State Departments of Agriculture, the 

SRTGs, and the Intertribal Agriculture 

Council; 

(24) Expenditures associated with 

conducting international staff 

conferences; 

(25) Travel expenditures associated 

with trade shows, seminars, educational 

training, international staff conferences 

conducted outside of the United States, 

and meetings of international 

organizations conducted in the United 

States; 

(26) Approved demonstration 

projects; 

(27) Expenditures related to 

copyright, trademark, or patent 

registration, including attorney fees; 

(28) Rental or lease expenditures for 

storage space for program-related 

materials; 

(29) Business cards that target a 

foreign audience; 

(30) Expenditures associated with 

developing, updating, and servicing web 

sites on the Internet that contain a 

message related to exporting or 

international trade; and 

(31) Expenditures associated with 

educational training designed to 

improve market access by addressing 

market constraints, such as temporary or 

permanent trade barriers. 

(d) A generic promotion activity may 

include the promotion of a foreign 

brand if the foreign brand uses the 

promoted U.S. agricultural commodity 

from multiple U.S. suppliers and is the 

primary market access to the targeted 

market for the U.S. agricultural 

commodity. A generic promotion 

activity may also involve the use of 

specific company names, logos or brand 

names. However, in that case, the MAP 

participant must ensure that all U.S. 

companies seeking to promote such U.S. 

agricultural 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 companies will be 

considered a generic promotion only if 

the promotion of the separate items 

maintains a unified theme and style and 

is subordinate to the promotion of the 

generic theme. 

(e) CCC will not reimburse any cost 

of: 

(1) Forward year financial obligations, 

such as severance pay, attributable to 

employment of foreign nationals; 

(2) Expenses, fines, settlements, 

judgments or payments relating to legal 

suits, challenges or disputes; 

(3) The design and production of 

packaging, labeling or origin 

identification, except as specifically 

allowed in this subpart; 

(4) Product development, product 

modification or product research; 

(5) Product samples; 

(6) Slotting fees or similar sales 

expenditures; 

(7) The purchase of, construction of, 

or lease of space for permanent, nonmobile displays, i.e., displays that are 

constructed to remain permanently in 

the same location beyond one program 

year. However, CCC may, at its 

discretion, reimburse the construction 

or purchase of permanent displays on a 

case-by-case basis, if the participant 

sought and received prior approval from 

CCC of such construction or purchase; 

(8) Rental, lease or purchase of 

warehouse space, except for storage 

space for program-related material; 

(9) Coupon redemption or price 

discounts; 

(10) Refundable deposits or advances; 

(11) Giveaways, awards, prizes, gifts 

and other similar promotional materials 

in excess of the limitation described in 

this subpart; 

(12) Alcoholic beverages that are not 

an integral part of an approved 

promotional activity; 

(13) The purchase, lease (except for 

use in authorized travel status) or repair 

of motor vehicles; 

(14) Travel of applicants for 

employment interviews; 

(15) Unused non-refundable airline 

tickets or associated penalty fees, except 

where travel was restricted by U.S. 

Government action or advisory; 

(16) Independent evaluations or 

audits, including evaluations or audits 

of the activities of a subcontractor, if 

CCC determines that such a review is 

needed in order to confirm past or to 

ensure future 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; 

(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 MAP 

participant; 

(26) Home office domestic 

administrative expenses, including 

communication costs; 

(27) Any expenditure on an activity 

that includes any derogatory reference 

or negative comparison to other U.S. 

agricultural commodities; 

(28) Any expenditure on an activity 

that contradicts U.S. foreign policy; 

(29) Payment of U.S. and foreign 

employees’ or contractors’ share of 

personal taxes, except where a foreign 

country’s laws require the MAP 

participant to pay such employees’ or 

contractors’ share; 

(30) Any expenditure made for an 

activity prior to CCC’s approval of that 

activity; and 

(31) 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. 

(f) Special rules for approval of 

supergrades. 

(1) With respect to individuals who 

are not U.S. citizens and who are hired 

by MAP participants either as 

employees or contractors, ordinarily, 

CCC will not reimburse any portion of 

such individual’s compensation that 

exceeds the compensation prescribed 

for the most comparable position in the 

FSN salary plan applicable to the 

country in which the employee or 

contractor works. However, a MAP 

participant may seek a higher level of 

reimbursement for a non-U.S. citizen 

employee or contractor who will be 

employed as a country director or 

regional director by requesting that CCC 

approve that employee or contractor as 

a supergrade. 

(2) To request approval of a 

supergrade, the participant shall 

provide CCC with a detailed description 

of both the duties and responsibilities of 

the position and the qualifications and 

background of the employee or 

contractor concerned. The participant 

shall also justify why the comparable 

FSN salary level is insufficient. 

(3) Where a non-U.S. citizen 

employee or contractor will be 

employed as a country director, the 

MAP participant may request approval 

for a ‘‘Supergrade I’’ salary level, 

equivalent to a grade increase over the 

existing top grade of the FSN salary 

plan. The supergrade and its step 

increases are calculated as the 

percentage difference between the 

second highest and the highest grade in 

the FSN salary plan, with that 

percentage applied to each of the steps 

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in the top grade. Where the non-U.S. 

citizen employee or contractor will be 

employed as a regional director, with 

responsibility for activities and/or 

offices in more than one country, the 

MAP participant may request approval 

for a ‘‘Supergrade II’’ salary level, which 

is calculated relative to a ‘‘Supergrade I’’ 

in the same way the latter is calculated 

relative to the highest grade in the FSN 

salary plan. 

(4) A U.S. citizen with dual 

citizenship with another foreign country 

or countries shall not be considered a 

non-U.S. citizen. 

(g) CCC may determine, at CCC’s 

discretion, whether any cost not 

expressly listed in this section will be 

reimbursed. 

(h) For a brand promotion activity, 

CCC will reimburse no more than 50 

percent of the total eligible expenditures 

made on that activity. 

(i) CCC will reimburse for 

expenditures made after the conclusion 

of participant’s program year provided: 

(1) The activity was approved by CCC 

prior to the end of the program year; 

(2) The activity was completed within 

30 calendar days following the end of 

the program year; and 

(3) All expenditures were made for 

the activity within 6 months following 

the end of the program year. 

(j) A MAP participant shall not use 

MAP funds for any activity or any 

expenses incurred by the MAP 

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 CCC. 

(k) Except as otherwise provided in 

this subpart, travel shall conform to U.S. 

Federal Travel Regulations (41 CFR 

parts 301 through 304) and air travel 

shall conform to the requirements of the 

Fly America Act (49 U.S.C. 40118). The 

MAP participant shall notify the 

Attache ́/Counselor in the destination 

countries in writing in advance of any 

proposed travel. 

§ 1485.18 Reimbursement procedures. 

(a) Participants are required to use 

CCC’s Internet-based system to request 

reimbursement for eligible MAP 

expenses. Claims for reimbursement 

shall contain the following information: 

(1) Activity type—brand or generic; 

(2) Activity number; 

(3) Commodity aggregate code; 

(4) Country code; 

(5) Cost category; 

(6) Amount to be reimbursed; 

(7) If applicable, any reduction in the 

amount of reimbursement claimed to 

offset CCC demand for refund of 

amounts previously reimbursed and 

reference to the relevant compliance 

report or written notice; and 

(8) If applicable, any amount 

previously claimed that has not been 

reimbursed. 

(b) All claims for reimbursement shall 

be submitted by the MAP participant’s 

U.S. office to CCC. 

(c) CCC will not reimburse a claim for 

less than $10,000, except that CCC will 

reimburse a final claim for a MAP 

participant’s program year for a lesser 

amount. 

(d) CCC will not reimburse claims 

submitted later than 6 months after the 

end of a MAP participant’s program 

year. 

(e) If CCC overpays a reimbursement 

claim, the MAP participant shall repay 

CCC within 30 days of such 

overpayment the amount of the 

overpayment either by submitting a 

check payable to CCC or by offsetting its 

next reimbursement claim. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(f) If a MAP participant receives a 

reimbursement or offsets an advanced 

payment which is later disallowed, the 

MAP participant shall repay CCC within 

30 days of such disallowance the 

amount disallowed either by submitting 

a check payable to CCC or by offsetting 

its next reimbursement claim. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(g) MAP funds may be expended by 

MAP participants only on legitimate, 

approved activities as set forth in the 

program agreement and approval letter. 

If a MAP participant discovers that MAP 

funds have not been properly spent, it 

shall notify CCC and shall within 30 

days of its discovery repay CCC the 

amount owed either by submitting a 

check payable to CCC or by offsetting its 

next reimbursement claim. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(h) The MAP participant shall report 

any actions that may have a bearing on 

the propriety of any claims for 

reimbursement in writing to CCC. 

§ 1485.19 Advances. 

(a) Policy. In general, CCC operates 

the MAP on a reimbursable basis. CCC 

will not advance funds to a MAP 

participant for brand promotion 

activities. 

(b) Exception. A MAP participant for 

generic promotion activities may 

request an advance of MAP funds from 

CCC, provided the MAP participant 

meets the criteria for advance payments 

set forth in the applicable parts of this 

title. If CCC approves the request, prior 

to making an advance, CCC may require 

the MAP participant to submit security 

in a form and amount acceptable to CCC 

to protect CCC’s financial interests. CCC 

will not approve any request for an 

advance submitted later than 3 months 

after the end of a MAP participant’s 

program year. At any given time, total 

payments advanced shall not exceed 40 

percent of a MAP participant’s approved 

generic activity budget for the program 

year. 

(c) Interest. A MAP participant shall 

deposit and maintain in an insured bank 

account in the United States all funds 

advanced by CCC. The account shall be 

interest-bearing, unless the exceptions 

in the applicable part of this title apply. 

Interest earned by the MAP participant 

on funds advanced by CCC is not 

program income. The MAP participant 

shall remit any interest earned on the 

advanced funds to the appropriate 

entity as set forth in the applicable part 

of this title. The MAP participant shall, 

no later than 10 days after the end of 

each calendar quarter, submit a 

financial statement to CCC accounting 

for all funds advanced and all interest 

earned. 

(d) Refunds due CCC. A MAP 

participant shall fully expend all 

advances on approved generic 

promotion activities within 90 calendar 

days after the date of disbursement by 

CCC. By the end of the 90 calendar days, 

the MAP participant must submit 

reimbursement claims to offset the 

advance and submit a check made 

payable to CCC for any unexpended 

balance. The MAP participant shall 

make such payment in U.S. dollars, 

unless otherwise approved in advance 

by CCC. 

§ 1485.20 Employment practices. 

(a) A MAP participant shall enter into 

written contracts with all employees 

and shall ensure that all terms, 

conditions, and related formalities of 

such contracts conform to governing 

local law. 

(b) A MAP participant shall in its 

overseas offices, conform its office 

hours, work week, and holidays to local 

law and to the custom generally 

observed by U.S. commercial entities in 

the local business community. 

(c) A MAP participant may pay 

salaries or fees in any currency (U.S. or 

foreign). Participants should consult 

local laws regarding currency 

restrictions. 

§ 1485.21 Financial management. 

(a) A MAP participant shall 

implement and maintain a financial 

management system that conforms to 

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generally accepted accounting 

principles. A MAP participant’s 

financial management system shall 

comply with the standards set forth in 

the applicable parts of this title. 

(b) A MAP participant shall institute 

internal controls and provide written 

guidance to commercial entities 

participating in its activities to ensure 

their compliance with these regulations. 

(c) A MAP participant shall retain 

records and permit access to records in 

accordance with the requirements of the 

applicable parts of this title. These 

records shall include all documents 

related to employment such as 

employment applications, contracts, 

position descriptions, leave records, 

salary changes, and all records 

pertaining to contractors. 

(d) A MAP 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 $75.00. CCC may, from time to time, 

determine a different minimum level 

and announce that minimum level in 

writing to all MAP participants and on 

the FAS Web site; 

(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 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. MAP participants must 

retain and make available for audit 

documentation related to claimed 

contributions. 

(e) Upon request, a MAP participant 

shall provide to CCC originals of 

documents supporting reimbursement 

claims. 

§ 1485.22 Reports. 

(a) End-of-Year Contribution Report. 

Not later than 6 months after the end of 

its program year, a MAP participant 

shall submit two copies of a report that 

identifies, by activity and cost category 

and in U.S. dollar equivalent, 

contributions made by the participant, 

the U.S. industry, and the States during 

that program year. A suggested format of 

a contribution report is available from 

FAS. Foreign third-party contributions 

are not included in the end-of-year 

contribution report. 

(b) Trip reports. Not later than 45 days 

after completion of travel (other than 

local travel), a MAP 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 end of its program year, 

a MAP participant shall submit a report 

on any research conducted pursuant to 

the approved MAP program. 

(d) Evaluation reports. Not later than 

6 months after the end of its program 

year, a MAP participant shall submit a 

report on any evaluations conducted in 

accordance with the approved MAP 

program. 

(e) A MAP participant shall submit to 

CCC an annual audit in accordance with 

the applicable parts of this title. If CCC 

requires an additional audit with 

respect to a particular agreement, the 

MAP participant shall arrange for such 

audit and shall submit to CCC, in the 

manner to be specified by CCC, such 

audit of the agreement. 

(f) CCC may require the submission of 

additional reports. 

(g) A MAP participant’s program 

agreement and/or approval letter shall 

specify to whom the participant shall 

submit the reports required in this 

section. 

§ 1485.23 Evaluation. 

(a) Policy. (1) The Government 

Performance and Results Act (GPRA) of 

1993 (5 U.S.C. 306; 31 U.S.C. 1105, 

1115–1119, 3515, 9703–9704) requires 

performance measurement of Federal 

programs, including the MAP. 

Evaluation of the MAP’s effectiveness 

will depend on a clear statement by 

participants of goals to be met within a 

specified time, schedule of measurable 

milestones for gauging success, plan for 

achievement, and assessment of results 

of activities at regular intervals. The 

overall goal of the MAP and of 

individual participants’ programming is 

to achieve or maintain sales that would 

not have occurred in the absence of 

MAP funding. A MAP participant that 

can demonstrate such sales, taking into 

account extenuating factors beyond the 

participant’s control, will have met the 

overall objective of the GPRA and the 

need for evaluation. 

(2) Evaluation is an integral element 

of program planning and 

implementation, providing the basis for 

the strategic plan. The evaluation results 

guide the development and scope of a 

MAP participant’s program, 

contributing to program accountability, 

and providing evidence of program 

effectiveness. 

(b) All MAP 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. This report shall be completed 

and submitted to CCC no later than 6 

months following the end of the 

participant’s program year. 

(c) MAP participants conducting a 

branded program must also complete a 

brand promotion evaluation. A brand 

promotion evaluation is a review of the 

U.S. and foreign commercial entities’ 

export sales to determine whether the 

activity achieved the goals specified in 

the approved MAP program. This 

evaluation shall be completed and 

submitted to CCC no later than 6 

months following the end of the 

participant’s program year. 

(d) When appropriate or required by 

CCC, a MAP participant shall complete 

a program evaluation. A program 

evaluation is a review of the MAP 

participant’s entire program, or an 

appropriate portion of the program as 

agreed to by the MAP participant and 

CCC, to determine the effectiveness of 

the MAP participant’s strategy in 

meeting specified goals. Actual scope 

and timing of the program evaluation 

shall be determined by the MAP 

participant and CCC and specified in 

the approval letter. A MAP participant 

shall submit, via a cover letter to CCC, 

an executive summary that assesses the 

program evaluation’s findings and 

recommendations and proposed 

changes in program strategy or design as 

a result of the evaluation. In addition to 

the requirements set forth in the 

applicable parts of this title, 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; 

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(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. 

(e) On an annual basis, or more often 

when appropriate or required by CCC, a 

MAP participant shall complete and 

submit program success stories. From 

time to time, CCC will announce to all 

MAP participants in writing and on the 

FAS Web site the detailed requirements 

for completing and submitting program 

success stories. 

§ 1485.24 Compliance reviews and 

notices. 

(a) USDA staff may conduct 

compliance reviews of MAP 

participants’ activities under the MAP 

program. MAP 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 either a written compliance 

report or a letter to the MAP participant. 

USDA staff will issue a compliance 

report if it appears that CCC may be 

entitled to recover funds from that 

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 30 days of the date 

of the compliance report, the MAP 

participant shall repay CCC the amount 

owed either by submitting a check 

payable to CCC or by offsetting its next 

reimbursement claim. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. In the absence of 

any finding of funds due to CCC or other 

non-compliance, CCC will issue a letter 

to the MAP participant. If, as a result of 

a compliance review, CCC determines 

that further review is needed in order to 

ensure compliance with the 

requirements of MAP, CCC may require 

the participant to contract for an 

independent audit. 

(c) In addition, CCC may notify a 

MAP participant in writing at any time 

if CCC determines that CCC may be 

entitled to recover funds from the 

participant. CCC will explain the basis 

for any recovery of funds from the 

participant in the written notice. The 

MAP participant shall within 30 days of 

the date of the notice repay CCC the 

amount owed either by submitting a 

check payable to CCC or by offsetting its 

next reimbursement claim. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(d) The fact that a compliance review 

has been conducted by USDA staff does 

not signify that a MAP participant is in 

compliance with its program agreement, 

approval letter and/or applicable laws 

and regulations. 

(e) Appeals. 

(1) A MAP participant may, within 30 

days of the date of the compliance 

report or written notice from CCC, 

submit a response to CCC. CCC, at its 

discretion, may extend the period for 

response. 

(2) After review of the participant’s 

response, CCC shall determine whether 

the participant owes any funds to CCC 

and will inform the participant in 

writing of the basis for the 

determination. CCC will initiate action 

to collect such amount by providing the 

participant a notice of delinquency and 

a demand for payment of the debt 

pursuant to Debt Settlement Policies 

and Procedures, 7 CFR part 1403. 

(3) Within 30 days of the date of the 

determination, the participant may 

request in writing that 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, CCC will set a date and time for 

the hearing. The hearing will be an 

informal proceeding. A transcript will 

not ordinarily be prepared unless the 

participant bears the cost of a transcript; 

however, CCC may in its discretion have 

a transcript prepared at CCC’s expense. 

(5) CCC will base its final 

determination upon information 

contained in the administrative record. 

The participant must exhaust all 

administrative remedies contained in 

this section before pursuing judicial 

review of a determination by CCC. 

§ 1485.25 Failure to make required 

contribution. 

A MAP participant’s required 

contribution will be specified in the 

approval letter. If the MAP participant’s 

required contribution is specified as a 

dollar amount and the MAP participant 

does not make the required 

contribution, the MAP participant shall 

pay to CCC in dollars the difference 

between the amount actually 

contributed and the amount specified in 

the approval letter. If the MAP 

participant’s required contribution is 

specified as a percentage of the total 

amount reimbursed by CCC, the MAP 

participant may either return to CCC the 

amount of funds reimbursed by CCC to 

increase its actual contribution 

percentage to the required level or pay 

to CCC in dollars the difference between 

the amount actually contributed and the 

amount of funds necessary to increase 

its actual contribution percentage to the 

required level. A MAP participant shall 

remit such payment within 90 days after 

the end of its program year. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

§ 1485.26 Submissions. 

For all permissible methods of 

delivery, submissions required by this 

subpart shall be deemed submitted as of 

the date received by CCC. 

§ 1485.27 Disclosure of program 

information. 

(a) Documents submitted to CCC by 

participants are subject to the provisions 

of the Freedom of Information Act 

(FOIA), 5 U.S.C. 552, 7 CFR part 1, 

subpart A—Official Records, and 

specifically 7 CFR 1.12, Handling 

Information from a Private Business. 

(b) Any research conducted by a MAP 

participant pursuant to a MAP program 

agreement and/or approval letter shall 

be subject to the provisions relating to 

intangible property in the applicable 

parts of this title. 

§ 1485.28 Ethical conduct. 

(a) A MAP 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 MAP participant shall 

conduct its business in the United 

States in accordance with applicable 

Federal, state and local laws and 

regulations. All MAP participants must 

comply with the regulations in the 

applicable parts of this title. 

(b) Except for a nonprofit U.S. 

agricultural cooperative or a U.S. forprofit entity, neither a MAP participant 

nor its affiliates shall make export sales 

of U.S. agricultural commodities and 

products covered under the terms of the 

agreement. Nor shall such entities 

charge a fee for facilitating an export 

sale. A MAP participant may, however, 

collect check-off funds and membership 

fees that are required for membership in 

the MAP participant. For the purposes 

of this paragraph, ‘‘affiliate’’ means any 

partnership, association, company, 

corporation, trust, or any other such 

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party in which the participant has an 

investment other than in a mutual fund. 

(c) A MAP participant shall not limit 

participation in its MAP activities to 

members of its organization. 

Participants agree to ensure that its 

programs and activities are open to all 

otherwise qualified individuals and 

entities on an equal basis and without 

regard to any non-merit factors. The 

MAP participant shall publicize its 

program and make participation 

possible for commercial entities 

throughout the relevant commodity 

sector or, in the case of SRTGs, 

throughout the corresponding region. 

This includes providing to such 

commercial entities, upon request, a 

copy of any document in its possession 

or control containing market 

information developed and produced 

under the terms of its MAP agreement. 

The participant may charge a fee not to 

exceed the costs for assembling, 

duplicating and distributing the 

materials. 

(d) A MAP participant shall select 

U.S. agricultural industry 

representatives to participate in 

activities such as trade teams, sales 

teams, and trade fairs based on criteria 

that ensure participation on an equitable 

basis by a broad cross section of the U.S. 

industry. If requested by CCC, a MAP 

participant shall submit such selection 

criteria to CCC for approval. 

(e) All MAP participants should 

endeavor to ensure fair and accurate 

fact-based advertising. Deceptive or 

misleading promotions may result in 

cancellation or termination of a 

participant’s MAP agreement and the 

recovery of CCC funds related to such 

promotions from the participant. 

(f) The MAP participant must report 

any actions or circumstances that may 

have a bearing on the propriety of the 

program to the appropriate Attache ́/ 

Counselor, and its U.S. office shall 

report such actions in writing to CCC. 

§ 1485.29 Contracting procedures. 

(a) Neither CCC nor any other agency 

of the U.S. Government nor any official 

or employee of CCC, FAS, USDA, or the 

U.S. Government has any obligation or 

responsibility with respect to MAP 

participant contracts with third parties. 

(b) A MAP participant shall comply 

with the procurement standards set 

forth below and in the applicable parts 

of this title when procuring goods and 

services and when engaging in 

construction to implement program 

agreements. For purposes of this 

subpart, the ‘‘small purchase threshold’’ 

referenced in 7 CFR part 3019 is set at 

$100,000. 

(c) Each MAP participant shall 

establish contracting procedures that are 

open, fair, and competitive. 

(d) Prior to entering into any contracts 

during a program year, a MAP 

participant must submit to CCC, for CCC 

approval, a written contracting plan. 

This contracting plan shall list each 

contract with an annual value of 

$25,000 or more that the MAP 

participant expects to be party to during 

the program year, the method for 

evaluating proposals received for each 

contract competition, the method for 

monitoring and evaluating performance 

under contracts, and the method for 

initiating corrective action for 

unsatisfactory performance under 

contracts. The MAP participant may 

modify and resubmit this plan for reapproval at any time during the program 

year. In addition to the requirements set 

forth in the applicable parts of this title, 

this plan shall include, at a minimum, 

the following: 

(1) Procedures for developing and 

publicizing requests for proposals, 

invitations for bids, and similar 

documents that solicit third party offers 

to provide goods or services. 

Solicitations for professional and 

technical services shall be based on 

clear and accurate descriptions of and 

requirements related to the services to 

be procured. Such procedures must 

include a conflict-of-interest provision 

that states that no employee, officer, 

board member, or agent thereof of the 

MAP participant will participate in the 

review, selection, award or 

administration of a contract if a real or 

apparent conflict of interest would arise. 

Such a conflict would arise when an 

employee, official, board member, agent, 

or the employee’s, officer’s, board 

member’s, agent’s family, partners, or an 

organization that employs or is about to 

employ any of the parties indicated 

herein, 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; 

(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 exceeds 

$25,000 or more; 

(5) Requirements to conduct an 

appropriate form of competition every 3 

years on all multi-year contracts with an 

annual value of $25,000 or more. CCC 

may, from time to time, determine a 

different minimum value and announce 

that minimum value in writing to all 

MAP participants and on the FAS Web 

site. However, contracts for in-country 

representation are not required to be recompeted after the initial reward. 

Instead, the performance of in-country 

representation must be evaluated and 

documented by the MAP participant 

annually to ensure that the terms of the 

contract are being met in a satisfactory 

manner; and 

(6) Requirements for written contracts 

with each provider of goods, services, or 

construction work. Such contracts shall 

require such providers to maintain 

adequate records to account for funds 

provided to them by the MAP 

participant. 

(e) A MAP participant may undertake 

MAP promotional activities directly or 

through a domestic or foreign thirdparty. However, the MAP participant 

shall remain responsible and 

accountable to CCC for all MAP 

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 CCC 

in relation to such third-party’s 

promotional activities and expenditures. 

§ 1485.30 Property standards. 

The MAP participant shall insure all 

real 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 

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46040 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Proposed Rules 

damage of property to the insurance 

company. 

§ 1485.31 Anti-fraud requirements. 

(a) All MAP participants. 

(1) All MAP participants annually 

shall submit to CCC for approval a 

detailed fraud prevention program. The 

fraud prevention program shall, at a 

minimum, include an annual review of 

physical controls and weaknesses, a 

standard process for investigating and 

remediation of suspected fraud cases, 

and training in risk management and 

fraud detection for all current and future 

employees. The MAP participant shall 

not conduct or permit any MAP 

promotion activities to occur unless and 

until CCC has communicated in writing 

approval of the MAP participant’s fraud 

prevention program. 

(2) The MAP participant, within five 

business days of receiving an allegation 

or information giving rise to a 

reasonable suspicion of 

misrepresentation or fraud that could 

give rise to a claim by CCC, shall report 

such allegation or information in 

writing to such USDA personnel as 

specified in the participant’s MAP 

program agreement and/or approval 

letter. The MAP participant shall 

cooperate fully in any USDA 

investigation of such allegation or 

occurrence of misrepresentation or 

fraud and shall comply with any 

directives given by CCC or USDA to the 

MAP participant for the prompt 

investigation of such allegation or 

occurrence. 

(b) MAP participants with brand 

programs. 

(1) The MAP participant may charge 

a fee to brand participants to cover the 

cost of the fraud prevention program. 

(2) The MAP participant shall repay 

to CCC funds paid to a brand participant 

through the MAP participant on claims 

that the MAP participant or CCC 

subsequently determines are 

unauthorized or otherwise nonreimbursable expenses within 30 days 

of the MAP participant’s determination 

or CCC’s disallowance. The MAP 

participant shall repay CCC by 

submitting a check to CCC or by 

offsetting the participant’s next 

reimbursement claim. The MAP 

participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. A MAP participant 

operating a brand program in strict 

accordance with an approved fraud 

prevention program, however, will not 

be liable to reimburse CCC for MAP 

funds paid on such claims if the claims 

were based on misrepresentations or 

fraud of the brand participant, its 

employees or agents, unless CCC 

determines that the MAP participant 

was grossly negligent in the operation of 

the brand program regarding such 

claims. CCC shall communicate any 

such determination to the MAP 

participant in writing. 

§ 1485.32 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 MAP funds, shall be 

used by the MAP participant in 

furtherance of its approved MAP 

activities in the program year in which 

the program income was received. 

Interest earned on funds advanced by 

CCC is not program income. 

§ 1485.33 Amendment. 

A program agreement may be 

amended only in writing with the 

consent of CCC and the MAP 

participant. 

§ 1485.34 Noncompliance with an 

agreement. 

If a MAP participant fails to comply 

with any term in its program agreement 

or approval letter, CCC may take one or 

more of the enforcement actions set 

forth in the applicable parts of this title 

and, if, appropriate, initiate a claim 

against the MAP participant, following 

the procedures set forth in this subpart. 

CCC may also initiate a claim against a 

MAP participant if program income or 

CCC-provided funds are lost due to an 

action or omission of the MAP 

participant. 

§ 1485.35 Suspension, termination, and 

closeout of agreements. 

A program agreement may be 

suspended or terminated in accordance 

with the applicable parts of this title. If 

an agreement is terminated, the 

applicable parts of this title will apply 

to the closeout of the agreement. 

§ 1485.36 Paperwork reduction 

requirements. 

The paperwork and recordkeeping 

requirements imposed by this subpart 

have been approved by OMB under the 

Paperwork Reduction Act of 1980. OMB 

has assigned control number 0551–0026 

for this information collection. 

Dated: August 19, 2009. 

Michael V. Michener, 

Administrator, Foreign Agricultural Service, 

and Executive Vice President, Commodity 

Credit Corporation. 

[FR Doc. E9–21552 Filed 9–4–09; 8:45 am] 

BILLING CODE 3410–10–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2009–0317] 

RIN 1625–AA87 

Security Zone; Calcasieu River and 

Ship Channel, LA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

disestablish the permanent safety zone 

at Trunkline LNG in Lake Charles, LA 

and to replace it with a security zone 

with new boundaries. The Coast Guard 

also proposes to establish two 

additional permanent security zones on 

the waters of the Calcasieu River for the 

mooring basins at Cameron LNG in 

Hackberry, LA and PPG Industries in 

Lake Charles, LA. The Coast Guard also 

proposes to disestablish the moving 

safety zone for Liquified Natural Gas 

(‘‘LNG’’) vessels in the Calcasieu ship 

channel and replace it with a moving 

security zone of the same dimensions. 

These security zones are needed to 

protect vessels, waterfront facilities, the 

public, and other surrounding areas 

from destruction, loss, or injury caused 

by sabotage, subversive acts, accidents, 

or other actions of a similar nature. 

Unless exempted under this rule, entry 

into or movement within these security 

zones would be prohibited without 

permission from the Captain of the Port 

or a designated representative. 

DATES: Comments and related material 

must reach the Coast Guard on or before 

October 8, 2009. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2009–0317 using any 

one of the following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590– 

0001. 

(4) Hand delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is 202–366–9329. 

To avoid duplication, please use only 

one of these four methods. See the 

‘‘Public Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

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