80092 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Rules and Regulations 

less restrictive than the NLRB’s 

requirements. 

Finally, we acknowledge that there 

recently has been an increased focus on 

the resumption of certain in-person 

services at federal agency offices. 

However, nothing in the proposed rule 

would eliminate in-person filing; it 

would simply require one business 

day’s advance notice in order to engage 

in such filing. Further, the resumption 

of certain in-person services does not 

undercut agencies’ and courts’ general 

trend of favoring eFiling over in-person 

filing, based on eFiling’s numerous 

advantages for both parties and 

agencies. See, for example, IRS, Exempt 

Organizations e-file: Benefits of e-file, 

available at https://www.irs.gov/ 

charities-non-profits/exemptorganizations-e-file-benefits-of-e-file. 

In addition, as discussed in greater 

detail in the Federal Register notice for 

the proposed rule, there are multiple 

reasons for this proposed change. 

Specifically: even before the COVID–19 

pandemic, it was rare for parties to file 

with CIP in person; there are multiple 

other, easily accessible methods of filing 

documents with CIP; the FLRA desires 

to strongly encourage parties to use 

eFiling whenever possible; and CIP has 

limited staffing, which could become 

even more limited if budgetary or other 

considerations preclude the FLRA from 

filling positions as they become vacant. 

For these reasons, the Authority has 

not modified the proposed rule’s 

requirement for parties to schedule inperson filing at least one business day 

in advance. Therefore, with the one 

minor modification discussed above— 

adding ‘‘Eastern Time’’ to the eFiling 

deadline—the Authority adopts the rule 

as originally proposed. 

Regulatory Flexibility Act Certification 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b), the Chairman of the FLRA has 

determined that this rule would not 

have a significant impact on a 

substantial number of small entities, 

because this rule would apply only to 

Federal agencies, Federal employees, 

and labor organizations representing 

those employees. 

Executive Order 12866, Regulatory 

Review 

The FLRA is an independent 

regulatory agency and thus is not 

subject to the requirements of E.O. 

12866 (58 FR 51735, Sept. 30, 1993). 

Executive Order 13132, Federalism 

The FLRA is an independent 

regulatory agency and thus is not 

subject to the requirements of E.O. 

13132 (64 FR 43255, Aug. 4, 1999). 

Unfunded Mandates Reform Act of 

1995 

This rule would not result in the 

expenditure by state, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100,000,000 or more 

in any one year, and it would not 

significantly or uniquely affect small 

governments. Therefore, no actions were 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

This action is not a major rule as 

defined by section 804 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. This rule would 

not result in an annual effect on the 

economy of $100,000,000 or more; a 

major increase in costs or prices; or 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

companies to compete with foreignbased companies in domestic and 

export markets. 

Paperwork Reduction Act of 1995 

The rule contains no additional 

information collection or record-keeping 

requirements under the Paperwork 

Reduction Act of 1995, 44 U.S.C. 3501, 

et seq. 

List of Subjects in 5 CFR Part 2429 

Administrative practice and 

procedure, Government employees, 

Labor management relations. 

For the reasons stated in the 

preamble, the FLRA amends 5 CFR part 

2429 as follows: 

PART 2429—MISCELLANEOUS AND 

GENERAL REQUIREMENTS 

■ 1. The authority citation for part 2429 

continues to read as follows: 

Authority: 5 U.S.C. 7134; § 2429.18 also 

issued under 28 U.S.C. 2112(a). 

■ 2. Amend § 2429.24 by revising 

paragraph (a) to read as follows: 

§ 2429.24 Place and method of filing; 

acknowledgment. 

(a) Except for documents that are filed 

electronically through use of the eFiling 

system on the FLRA’s website at 

www.flra.gov, anyone who files a 

document with the Authority (as 

distinguished from the General Counsel, 

a Regional Director, or an 

Administrative Law Judge) must file 

that document with the Chief, Case 

Intake and Publication, Federal Labor 

Relations Authority, Docket Room, Suite 

200, 1400 K Street NW, Washington, DC 

20424–0001 (telephone: (771) 444– 

5805). To file documents by personal 

delivery, you must schedule an 

appointment at least one business day 

in advance by calling the telephone 

number in the previous sentence. 

Personal delivery is accepted by 

appointment Monday through Friday 

(except federal holidays). If you file 

documents electronically through use of 

the FLRA’s eFiling system, then you 

may file those documents on any 

calendar day—including Saturdays, 

Sundays, and federal legal holidays— 

and the Authority will consider those 

documents filed on a particular day if 

you file them no later than 11:59 p.m. 

Eastern Time on that day. Note, 

however, that although you may eFile 

documents on Saturdays, Sundays, and 

federal legal holidays, you are not 

required to do so. Also note that you 

may not file documents with the 

Authority by electronic mail (‘‘email’’). 

* * * * * 

Approved: November 13, 2023. 

Thomas Tso, 

Solicitor and Federal Register Liaison, Federal 

Labor Relations Authority. 

[FR Doc. 2023–25300 Filed 11–16–23; 8:45 am] 

BILLING CODE 7627–01–P 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1489 

RIN 0551–AB06 

Regional Agricultural Promotion 

Program 

AGENCY: Foreign Agricultural Service 

and Commodity Credit Corporation, 

U.S. Department of Agriculture (USDA). 

ACTION: Final rule. 

SUMMARY: The Commodity Credit 

Corporation (CCC) is amending the 

Agricultural Trade Promotion Program 

regulation to implement the Regional 

Agricultural Promotion Program 

(RAPP). The RAPP will provide 

assistance to eligible organizations that 

conduct market promotion activities, 

including activities to address existing 

or potential non-tariff barriers to trade, 

to promote U.S. agricultural 

commodities in certain foreign markets. 

Among other changes, this rule updates 

terminology used throughout the 

regulation, clarifies timeframes for 

reporting requirements, and removes the 

specific application and review 


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Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Rules and Regulations 80093 

requirements from the regulation to be 

defined in Notices of Funding 

Opportunity (NOFOs) announced 

through the Grants.gov website. 

DATES: This rule is effective November 

17, 2023. Although not required by the 

Administrative Procedure Act (APA), 

CCC will accept comments received by 

December 18, 2023. 

ADDRESSES: You may send comments, 

identified by RIN 0551–AB06, by any of 

the following methods: 

• Federal eRulemaking Portal: 

https://www.regulations.gov. This portal 

enables respondents to enter short 

comments or attach a file containing 

lengthier comments. 

• Email: PODadmin@usda.gov. 

Include 0551– in the subject line of the 

message. 

• Mail, Courier, or Hand Delivery: 

Curt Alt, U.S. Department of 

Agriculture, Foreign Agricultural 

Service, 1400 Independence Avenue 

SW, Room 6512, Washington, DC 20250. 

FOR FURTHER INFORMATION CONTACT: Curt 

Alt, (202) 690–4784, podadmin@

usda.gov. Persons with disabilities who 

require an alternative means for 

communication of information (e.g., 

Braille, large print, audiotape, etc.) 

should contact RARequest@usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

In the face of significant and 

unpredictable challenges around the 

world, including impacts to 

international commodities markets in 

the wake of ongoing conflicts, a 

changing climate, an increasing 

agricultural trade deficit, and increased 

competition in U.S. export markets, 

USDA recognizes that additional 

investments in market development are 

needed to keep U.S. agriculture ahead of 

the competition. Consistent with a 

bipartisan request from the Senate 

Committee on Agriculture, Nutrition, 

and Forestry, USDA is utilizing CCC 

funds to implement the RAPP program 

to address the challenges related to 

trade impacting U.S. farmers and the 

international community. Continuing 

the work started under the Agricultural 

Trade Promotion Program (ATP), RAPP 

funding will ensure that U.S. 

agricultural industries are able to 

sustain the relationships key to effective 

market development and will enable 

exporters to break into new markets and 

increase market share in growth 

markets. RAPP Participants may receive 

assistance for either generic or brand 

promotion activities as well as 

assistance to conduct activities to 

address existing or potential non-tariff 

barriers to trade. 

The Foreign Agricultural Service 

(FAS) will administer the RAPP on 

behalf of the CCC. Specific program 

requirements and details for applying 

for assistance under the RAPP will be 

set forth in NOFOs announced through 

the Grants.gov website. 

Eligible Organizations 

As with ATP, the RAPP is a cost-share 

program that is designed to reimburse 

nonprofit U.S. agricultural trade 

organizations, nonprofit state regional 

trade groups, state agencies, U.S. 

agricultural cooperatives, and other 

entities that conduct approved foreign 

market promotion activities. When 

considering applicant organizations, the 

CCC will give priority to organizations 

that have the broadest producer 

representation and affiliated industry 

participation of the commodity being 

promoted. Eligible activities can be 

generic or branded in nature. In order to 

be eligible for RAPP assistance, U.S. forprofit entities shall be limited to those 

whose size does not exceed 300 percent 

of the small business size standards 

established for their particular industry 

and published at 13 CFR part 121, Small 

Business Size Regulations. Eligible forprofit entities may participate in a RAPP 

Participant’s brand promotion program. 

Any RAPP Participant that operates a 

brand promotion program will be 

required to establish brand program 

operational procedures. A RAPP 

Participant shall publicize its RAPP 

program and make participation 

possible for commercial entities 

throughout the relevant commodity 

sector or, in the case of State Regional 

Trade Groups (SRTGs), throughout the 

corresponding region. 

General Provisions 

CCC will use the Unified Export 

Strategy (UES) internet-based system to 

receive RAPP applications and to 

receive reimbursement requests from 

RAPP Participants. This is the system 

used for the ATP and similar CCC 

programs. Details about the application 

requirements and process will be 

announced in the RAPP NOFOs. 

CCC will evaluate each eligible 

proposal against the factors described in 

the appropriate NOFO to identify those 

applications that it considers to best 

meet the criteria and objectives outlined 

in the NOFO. Based on its review and 

evaluation, CCC will, subject to the 

availability of funds, recommend an 

appropriate funding level for each 

proposal and submit the proposals and 

funding recommendations to the 

appropriate officials for decision. 

As with the ATP program, 

participants in the RAPP will be 

required to contribute a total amount in 

goods, services, and/or cash equal to at 

least 10 percent of the value of resources 

to be provided by the CCC for all generic 

promotion activities proposed to be 

undertaken by the RAPP Participant. 

Brand participants will also be required 

to contribute an amount in goods, 

services, and/or cash equal to at least 50 

percent of the cost of all brand 

promotion activities they undertake 

under the RAPP. 

This rule includes updated lists of 

expenses eligible and ineligible for 

reimbursement under the RAPP. 

Procedures for requesting 

reimbursement for eligible 

expenditures, or, if appropriate, for 

advances of program funds, are 

described in the regulation. Because it is 

critical that program funds are managed 

and accounted for properly and are 

focused on achieving results, paragraphs 

regarding financial management, 

reporting on outcomes that tie 

assistance directly to increased trade, 

evaluation, and compliance review are 

included. Finally, to ensure that funds 

provided under the RAPP are expended 

in a cost-effective manner and are 

protected from fraud, CCC carries 

forward the provisions regarding ethical 

conduct, contracting, and anti–fraud 

requirements from the existing 

regulation. 

Effective Date and Comments 

This rule is effective upon publication 

in the Federal Register. The 

Administrative Procedure Act (APA) (5 

U.S.C. 553) provides that notice and 

comment and a 30-day delay in the 

effective date of the rule are not 

required when the rule involves 

specified actions, including matters 

relating to grants or benefits. This rule 

establishes procedures and conditions 

related to the provision of assistance to 

entities conducting activities that 

promote U.S. agricultural commodities 

in foreign markets and thus falls within 

the exemption to the public 

participation requirements under the 

APA. Although not required by the 

APA, CCC has chosen to accept 

comments on the rule and may consider 

the comments when determining 

whether any changes to the regulations 

are warranted in the future. 

Executive Orders 12866 and 13563 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review,’’ direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 


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80094 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Rules and Regulations 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasized the importance of 

quantifying both costs and benefits of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

This rule has been determined to be 

non-significant and, therefore, was not 

reviewed by the Office of Management 

and Budget (OMB). 

Regulatory Flexibility Act and Small 

Business Regulatory Enforcement 

Fairness Act (SBREFA) 

The Regulatory Flexibility Act (5 

U.S.C. 601–612), as amended by the 

SBREFA of 1996 (SBREFA, Pub. L. 104– 

121), generally requires an agency to 

prepare a regulatory flexibility analysis 

of any rule whenever an agency is 

required by the APA or any other law 

to publish a proposed rule, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

This rule is not subject to the Regulatory 

Flexibility Act because the CCC is not 

required by the APA or any other law 

to publish a proposed rule for this 

rulemaking. This rule is not a major rule 

under SBREFA. SBREFA generally 

requires that an agency delay the 

effective date of a major rule for 60 days 

from the date of publication to allow for 

congressional review. 

Environmental Assessment 

The CCC has determined that the 

RAPP does not constitute a major State 

or Federal action that would 

significantly affect the human or natural 

environment. Consistent with the 

National Environmental Policy Act 

(NEPA) (42 U.S.C. 4321–4347), no 

environmental assessment or 

environmental impact statement will be 

prepared for this regulatory action. 

Executive Order 12372 

Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs,’’ requires consultation with 

State and local officials that would be 

directly affect by proposed Federal 

financial assistance. The objectives of 

the Executive order are to foster an 

intergovernmental partnership and a 

strengthened federalism, by relying on 

State and local processes for State and 

local government coordination and 

review of proposed Federal financial 

assistance and direct Federal 

development. This program is subject to 

the requirements of Executive Order 

12372, ‘‘Intergovernmental Review of 

Federal Programs,’’ as implemented 

under USDA’s regulations at 2 CFR part 

415, subpart C. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, ‘‘Civil Justice 

Reform.’’ This rule will not preempt 

State or local laws, regulations, or 

policies unless they represent an 

irreconcilable conflict with this rule. 

The rule will not have retroactive effect. 

Before any judicial action may be 

brought regarding the provisions of this 

rule, the administrative appeal 

provisions in this part must be 

exhausted. 

Executive Order 13132 

This rule has been reviewed under 

Executive Order 13132, ‘‘Federalism.’’ 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

Federal Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government, except as required 

by law. Nor does this rule impose 

substantial direct compliance costs on 

State and local governments. Therefore, 

consultation with the States is not 

required. 

Executive Order 13175 

This rule has been reviewed for 

compliance with Executive Order 

13175, ‘‘Consultation and Coordination 

with Indian Tribal Governments.’’ 

Executive Order 13175 requires Federal 

agencies to consult and coordinate with 

tribes on a government-to-government 

basis on policies that have Tribal 

implications, including regulations, 

legislative comments, proposed 

legislation, and other policy statements 

or actions that have substantial direct 

effects on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

FAS has assessed the impact of this 

rule on Indian tribes and determined 

that this rule does not, to the knowledge 

of FAS, have Tribal implications that 

required Tribal consultation under 

Executive Order 13175. If a tribe 

requests consultation, FAS will work 

with the USDA Office of Tribal 

Relations to ensure meaningful 

consultation is provided where changes, 

additions, and modifications identified 

herein are not expressly mandated by 

Congress. 

The Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA, Pub. L. 

104–4) requires Federal agencies to 

assess the effects of their regulatory 

actions on State local, and Tribal 

governments or the private sector. 

Agencies generally must prepare a 

written statement, including a cost 

benefit analysis, for proposed and final 

rules with Federal mandates that may 

result in expenditures of $100 million or 

more in any 1 year for State, local, or 

Tribal governments, in the aggregate, or 

to the private sector. UMRA generally 

requires agencies to consider 

alternatives and adopt the more cost 

effective or least burdensome alternative 

that achieves the objectives of the rule. 

This rule contains no Federal mandates, 

as defined in Title II of UMRA, for State, 

local, and Tribal governments or the 

private sector. Therefore, this rule is not 

subject to the requirements of sections 

202 and 205 of UMRA. 

Federal Assistance Programs 

The title and number of the 

Assistance Listing found in the System 

for Award Management to which this 

rule applies is ‘‘Regional Agricultural 

Promotion Program’’—10.618. 

Paperwork Reduction Act of 1995 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3520), this rule does not change the 

information collection approved by 

OMB under control number 0551–0049. 

List of Subjects in 7 CFR Part 1489 

Agricultural commodities, Exports. 

■ Accordingly, the CCC revises 7 CFR 

part 1489 to read as follows: 

PART 1489—REGIONAL 

AGRICULTURAL PROMOTION 

PROGRAM 

Sec. 

1489.10 General purpose and scope. 

1489.11 Definitions. 

1489.12 Participation eligibility. 

1489.13 Application process. 

1489.14 Application review and formation 

of agreements. 

1489.15 Operational procedures for brand 

promotion programs. 

1489.16 Contribution rules. 

1489.17 Reimbursement rules. 

1489.18 Reimbursement procedures. 

1489.19 Advances. 

1489.20 Financial management. 

1489.21 Reports. 

1489.22 Evaluation. 

1489.23 Compliance reviews and notices. 

1489.24 Failure to make required 

contribution. 

1489.25 Submissions. 

1489.26 Disclosure of program information. 


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1489.27 Ethical conduct. 

1489.28 Contracting procedures. 

1489.29 Property standards. 

1489.30 Anti–fraud requirements. 

1489.31 Program income. 

1489.32 Amendment. 

1489.33 Noncompliance with an agreement 

or this part. 

1489.34 Suspension, termination, and 

closeout of agreements. 

1489.35 Paperwork reduction requirements. 

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

§ 1489.10 General purpose and scope. 

(a) This part sets forth the general 

terms, conditions, and policies 

governing the Commodity Credit 

Corporation’s (CCC) operation of the 

Regional Agricultural Promotion 

Program (RAPP), which subsumes the 

former Agricultural Trade Promotion 

Program (ATP). This program will 

provide assistance to eligible 

organizations that conduct market 

promotion activities, including 

activities to address existing or potential 

non-tariff barriers to trade, to promote 

U.S. agricultural commodities in certain 

foreign markets. Specific program 

requirements will be set forth in Notices 

of Funding Opportunity (NOFO) 

announced through the Grants.gov 

website. 

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

this part, other regulations of general 

applicability issued by the U.S. 

Department of Agriculture (USDA), 

including the regulations set forth in 

chapter XXX of this title, may apply to 

the RAPP and RAPP Participants, to the 

extent that the regulations of general 

applicability in this paragraph (b)(1) do 

not directly conflict with the provisions 

of this part. The regulations include, but 

are not limited to: 

(i) 7 CFR part 1, subpart A. 

(ii) 7 CFR part 3. 

(iii) 7 CFR part 15, subpart A. 

(iv) 2 CFR part 417. 

(v) 2 CFR part 418. 

(vi) 2 CFR part 421. 

(vii) 48 CFR part 31. 

(2) In addition, relevant provisions of 

the CCC Charter Act (15 U.S.C. 714 et 

seq.) and any other statutory provisions 

that are generally applicable to the CCC 

are also applicable to the RAPP and the 

regulations set forth in this part. 

(3) RAPP Participants must also 

comply with Title VI of the Civil Rights 

Act of 1964 and related civil rights 

regulations and policies. 

(4) Other laws and regulations that 

apply to the RAPP and RAPP 

Participants include, but are not limited 

to: 

(i) 2 CFR part 25. 

(ii) 2 CFR part 170. 

(iii) 2 CFR part 175. 

(iv) 2 CFR part 180. 

(v) 2 CFR part 200. 

(vi) 2 CFR part 400. 

(vii) 37 CFR 401.1. 

(viii) Executive Order 13224, as 

amended, ‘‘Blocking Property and 

Prohibiting Transactions with Persons 

Who Commit, Threaten to Commit, or 

Support Terrorism.’’ 

(c) Under the RAPP, the CCC may 

provide multi-year grant assistance to 

eligible U.S. entities to conduct certain 

marketing and promotion activities, 

including activities to address existing 

or potential non-tariff trade barriers, 

aimed at developing, maintaining, or 

expanding commercial export markets 

for U.S. agricultural commodities. RAPP 

Participants may receive assistance for 

either generic or brand promotion 

activities. While activities generally take 

place overseas, reimbursable activities 

may also take place in the United States. 

The CCC expects that all activities that 

occur in the United States for which 

RAPP reimbursement is sought will 

develop, maintain, or expand the 

commercial export market for the 

relevant eligible commodity in 

accordance with the RAPP Participant’s 

approved RAPP program. 

(d) The RAPP generally operates on a 

reimbursement basis. 

(e) The CCC’s policy is to ensure that 

benefits generated by RAPP agreements 

are broadly available throughout the 

relevant agricultural sector and that no 

single entity gains an undue advantage. 

The CCC also endeavors to enter into 

RAPP agreements covering a broad array 

of agricultural commodity sectors. The 

RAPP is administered by personnel of 

the Foreign Agricultural Service (FAS) 

acting on behalf of the CCC. 

§ 1489.11 Definitions. 

For purposes of this part the following 

definitions apply: 

Activity means a specific foreign 

market development effort undertaken 

by a RAPP Participant. 

Administrative expenses or costs 

means expenses or costs of 

administering, directing, and controlling 

an organization that is a RAPP 

Participant. Generally, this would 

include expenses or costs such as those 

related to: 

(1) Maintaining a physical office 

(including, but not limited to: rent, 

office equipment, office supplies, 

computer hardware and software, office 

maintenance); 

(2) Personnel (including, but not 

limited to, salaries, benefits, payroll 

taxes, individual insurance, training); 

(3) Communications (including, but 

not limited to, phone expenses, internet, 

mobile phones, mobile phone service 

postage, courier services, television, 

radio, walkie talkies); 

(4) Management of an organization or 

unit of an organization (including, but 

not limited to, planning, supervision, 

supervisory travel, recruiting, hiring); 

(5) Utilities (including, but not 

limited to, sewer, water, energy, Wi-Fi); 

and 

(6) Professional services (including, 

but not limited to, accounting expenses, 

financial services, investigatory 

services). 

Approval letter means a document by 

which the CCC informs an applicant 

that its RAPP application has been 

approved for funding. This letter may 

also approve specific activities and 

contain terms and conditions in 

addition to the program agreement. This 

letter requires a countersignature by the 

RAPP Participant before it becomes 

effective. 

Attache ́/Counselor means the FAS 

employee representing USDA interests 

in the foreign country in which 

promotional activities are conducted. 

Brand participant means a U.S. forprofit entity that owns the brand(s) of 

the eligible commodity to be promoted 

(or has the exclusive rights to use such 

brand(s)) and that is participating in the 

RAPP brand promotion program of 

another RAPP Participant. This 

definition does not include any U.S. 

agricultural cooperatives. 

Brand promotion means an activity 

that involves the exclusive or 

predominant use of a single U.S. 

company name, or the logo or brand 

name of a single U.S. company, or the 

brand of a U.S. agricultural cooperative, 

or any activity undertaken by a brand 

participant in a brand program. 

Budget period means the period 

during which a RAPP Participant can 

undertake activities consistent with this 

part and its program agreement and 

approval letter with CCC. Budget 

periods will be specified in a RAPP 

Participant’s approval letter. 

CCC means the Commodity Credit 

Corporation, including any agency or 

official of the United States delegated 

the responsibility to act on behalf of the 

CCC. 

Constraint means a condition in a 

particular country or region that needs 

to be addressed in order to develop, 

expand, or maintain exports of a 

specific eligible commodity. 

Contribution means an expenditure 

made by a RAPP Participant, the U.S. 

industry, or a State agency in support of 

an approved activity. This includes 

expenditures to be made by entities in 

the RAPP Participant’s industry in 

support of the entities’ related 

promotion activities in the markets 


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80096 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Rules and Regulations 

covered by the RAPP Participant’s 

agreement. 

Credit memo means a commercial 

document, also known as a credit 

memorandum, issued by the RAPP 

Participant to a commercial entity that 

owes the RAPP Participant a certain 

sum. A credit memo is used when the 

RAPP Participant owes the commercial 

entity a sum less than the amount the 

entity owes the Participant. The credit 

memo reflects an offset of the amount 

the RAPP Participant owes the entity 

against the amount the entity owes to 

the RAPP Participant. 

Demonstration projects means 

activities involving the erection or 

construction of a structure or facility or 

the installation of equipment. 

Eligible commodity means any U.S. 

agricultural commodity or product 

thereof, excluding tobacco, that is 

comprised of at least 50 percent by 

weight, exclusive of added water, of 

agricultural commodities grown or 

raised in the United States. 

Expenditure means either payment 

made by a RAPP participant via the 

transfer of funds or an offset reflected in 

a credit memo in lieu of a transfer of 

funds. 

FAS means Foreign Agricultural 

Service, USDA. 

FAS website means a website 

maintained by FAS providing 

information on RAPP. It is currently 

accessible at https://fas.usda.gov/ 

programs/regional-agriculturalpromotion-program. 

Foreign third party means a foreign 

entity that a RAPP Participant works 

with to promote the export of an eligible 

commodity under the RAPP program. 

Generic promotion means an activity 

that is not a brand promotion but, 

rather, promotes an eligible commodity 

generally. A generic promotion activity 

may include the promotion of a foreign 

brand (i.e., a brand owned primarily by 

foreign interests and being used to 

market a commodity or product in a 

foreign market), if the foreign brand uses 

the promoted eligible commodity from 

multiple U.S. suppliers. A generic 

promotion activity may also involve the 

use of specific U.S. company names, 

logos, or brand names. However, in that 

case, the RAPP Participant must ensure 

that all U.S. companies seeking to 

promote such eligible commodity in the 

market have an equal opportunity to 

participate in the activity and that at 

least two U.S. companies participate. In 

addition, an activity that promotes 

separate items from multiple U.S. 

companies will be considered a generic 

promotion only if the promotion of the 

separate items maintains a unified 

theme (i.e., a dominant idea or motif) 

and style and is subordinate to the 

promotion of the generic theme. 

Market means the country or 

countries targeted by an activity. 

Notification means a document from 

the RAPP Participant by which the 

RAPP Participant proposes to CCC 

changes to the activities and/or funding 

levels in an approved RAPP program 

agreement and/or approval letter. 

Period of performance means the total 

time interval between the start of a 

RAPP award and the planned end date, 

which may include one or more funded 

portions, or budget periods. A RAPP 

award’s period of performance will be 

defined by the dates contained in the 

program agreement. 

Product samples means a 

representative part of a larger whole 

promoted commodity or group of 

promoted commodities. Product 

samples include all forms of a promoted 

commodity (e.g., fresh or processed), 

independent of the ultimate utilization 

of the sample. Product samples must be 

used in support of international 

marketing activities including, but not 

limited to, displays, food process 

testing, cooking demonstrations, or 

trade and consumer tastings. 

Program agreement means a 

document entered into between CCC 

and a RAPP Participant setting forth the 

terms and conditions of approved 

activities under RAPP, including any 

subsequent amendments to such 

agreement. 

Promoted commodity means an 

eligible commodity the sale of which is 

the intended result of a promotional 

activity. 

RAPP means the Regional 

Agricultural Promotion Program. 

RAPP notice means Regional 

Agricultural Promotion Program notices, 

which are documents that CCC issues 

for informational purposes. These RAPP 

notices are made available electronically 

on the FAS website. These notices have 

no legal effect. They are intended to 

alert RAPP Participants to various 

aspects of CCC’s current administration 

of the RAPP program. 

RAPP Participant or Participant 

means an entity that has entered into a 

RAPP program agreement with the CCC. 

Sales and trade relations 

expenditures (STRE) means 

expenditures made on breakfast, lunch, 

dinner, receptions, and refreshments at 

approved activities; miscellaneous 

courtesies such as checkroom fees, taxi 

fares and tips for approved activities; 

and decorations for a special 

promotional occasion that is part of an 

approved activity. 

Sales team means a group of 

individuals engaged in an approved 

activity intended to result in specific 

sales. 

SRTG means State Regional Trade 

Group. An SRTG is a nonprofit 

association of State-funded agricultural 

promotion agencies. 

Temporary contractor means a 

contractor, typically a consultant or 

other highly paid professional, that is 

hired on a short-term basis to assist in 

the performance of an activity. 

Trade team means a group of 

individuals engaged in an approved 

activity intended to promote the 

interests of an entire agricultural sector 

rather than to result in specific sales by 

any of its members. 

UES website means a website 

maintained by FAS through which 

applicants may apply and are 

reimbursed for RAPP and other USDA 

market development programs. The 

website is currently accessible to 

persons with e-authentication 

certification at https://

apps.fas.usda.gov/ues/webapp/. FAS 

may prescribe a different system 

through which applicants may apply to 

the RAPP and will announce such 

system in the applicable NOFO. 

Unified Export Strategy (UES) means 

a standardized online internet 

application developed by USDA and 

available for use by entities to apply to 

USDA market development programs, 

including the RAPP. 

U.S. agricultural commodity means 

any agricultural commodity of U.S. 

origin, including food, feed, fiber, 

forestry product, livestock, insects, and 

fish harvested from a U.S. aquaculture 

farm or harvested by a vessel (as defined 

in title 46 of the United States Code) in 

waters that are not waters (including the 

territorial sea) of a foreign country, and 

any product thereof. 

USDA means the United States 

Department of Agriculture. 

U.S. for-profit entity means a firm, 

association, or other entity organized or 

incorporated, located, and doing 

business for profit in the United States, 

and engaged in the export or sale of an 

eligible commodity. 

§ 1489.12 Participation eligibility. 

(a) To participate in the RAPP as a 

RAPP Participant, an entity must be: 

(1) A nonprofit U.S agricultural trade 

organization; 

(2) A nonprofit SRTG; 

(3) A U.S. agricultural cooperative; or 

(4) A State agency. 

(b) CCC will enter into an agreement 

only for the promotion of an eligible 

commodity. 

(c) FAS may set forth specific 

eligibility information, including any 

factors or priorities that will affect the 


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eligibility of an applicant or application 

for selection, in the full text of the 

applicable NOFO posted on the U.S. 

Government website for grant 

opportunities. 

§ 1489.13 Application process. 

(a) General application requirements. 

CCC will periodically issue a NOFO 

through the Grants.gov website 

announcing that it is accepting 

applications for participation in the 

RAPP. Applications shall be submitted 

in accordance with the terms and 

requirements specified in the NOFO and 

in this part. Applicants may apply to 

conduct a generic promotion program 

and/or a brand promotion program that 

provides RAPP funds to brand 

participants for brand promotion, as 

well as to conduct other market 

promotion activities, including 

activities to address existing or potential 

non-tariff trade barriers. An applicant 

that is a U.S. agricultural cooperative 

may also apply for funds to conduct its 

own brand promotion program. 

(b) Requests for evaluation 

information. CCC may request any 

information that it deems necessary to 

evaluate an application, including, but 

not limited to, performance 

measurement information. Applicants 

shall provide any requested information 

in the manner and according to the 

timeframe specified by CCC. 

(c) Special rules governing 

demonstration projects funded with 

CCC resources. CCC will consider 

proposals for demonstration projects, 

provided: 

(1) No more than one such 

demonstration project per constraint is 

undertaken within a market; 

(2) The constraint to be addressed in 

the target market is a lack of technical 

knowledge or expertise; 

(3) The demonstration project is a 

practical and cost-effective method of 

overcoming the constraint; and 

(4) A third party must participate in 

such project through a written 

agreement with the RAPP Participant. 

(d) Universal identifier and System for 

Award Management (SAM). In 

accordance with 2 CFR part 25, each 

entity that applies to the RAPP program 

and does not qualify for an exemption 

under 2 CFR 25.110 must: 

(1) Be registered in SAM prior to 

submitting an application or plan; 

(2) Maintain an active SAM 

registration with current information at 

all times during which it has an active 

Federal award or an application or plan 

under consideration by CCC; and 

(3) Provide its unique identifier in 

each application or plan it submits to 

CCC. 

(e) Reporting subaward and executive 

compensation information. In 

accordance with 2 CFR part 170, each 

entity that applies to the RAPP program 

and does not qualify for an exception 

under 2 CFR 170.110(b) must ensure it 

has the necessary processes and systems 

in place to comply with the applicable 

reporting requirements of 2 CFR part 

170 should it receive RAPP funding. 

§ 1489.14 Application review and 

formation of agreements. 

(a) General. (1) CCC will review all 

proposals for eligibility and 

completeness. CCC will evaluate each 

eligible proposal against the factors 

described in the appropriate NOFO to 

identify those applications that it 

considers to best meet the criteria and 

objectives outlined in the NOFO. Based 

on its review and evaluation, CCC will, 

subject to the availability of funds, 

recommend an appropriate funding 

level for each proposal and submit the 

proposals and funding 

recommendations to the appropriate 

officials for decision. CCC may, when 

appropriate to the subject matter of the 

proposal, request the assistance of other 

U.S. Government experts in evaluating a 

proposal. All reviewers will be required 

to sign a conflict-of-interest form, and 

when conflicts of interests are identified 

the reviewer will be recused from the 

objective review process. 

(2) When considering applicant 

organizations, CCC may give priority to 

those organizations that have the 

broadest producer representation and 

affiliated industry participation of the 

commodity being promoted, as 

determined by CCC. CCC may require 

that an applicant participate in the 

RAPP through another RAPP Participant 

or applicant. 

(3) CCC will approve those 

applications that it determines best 

satisfy the criteria and factors specified 

in the NOFO. 

(4) CCC will notify each applicant in 

writing of the final disposition of its 

application. 

(b) Formation of agreements. CCC will 

send a program agreement (or 

amendment to an existing program 

agreement), an approval letter, and a 

signature card to each approved 

applicant. The program agreement or 

amendment and the approval letter will 

outline which activities and budgets are 

approved and will specify any special 

terms and conditions applicable to a 

RAPP Participant’s program, including 

any requirements with respect to 

contributions and program evaluations. 

An applicant that decides to accept the 

terms and conditions contained in the 

program agreement or amendment and 

the approval letter must so indicate by 

having the appropriate personnel sign 

the program agreement or amendment 

and the approval letter and submit these 

to CCC. Final agreement shall occur 

when the program agreement or 

amendment and the approval letter are 

signed by both parties. 

(c) Signature cards. The RAPP 

Participant is encouraged to designate at 

least two individuals in its organization 

to sign program agreements and 

amendments, approval letters, 

reimbursement claims, and advance 

requests. The RAPP Participant shall 

submit the signature card signed by 

those designated individuals and by the 

RAPP Participant’s Chief Executive 

Officer (or designee) to CCC. The 

Participant shall immediately notify 

CCC in writing of any changes in 

signatories and shall submit a revised 

signature card accordingly. 

(d) UES ID and passwords. CCC will 

provide each RAPP Participant with IDs 

and passwords for the UES website, as 

necessary. RAPP Participants shall 

immediately notify CCC whenever a 

person who possesses the ID and 

password information no longer needs 

such information, or when a person who 

is not authorized gains such 

information. 

(e) Annual certifications. A RAPP 

Participant through which U.S. forprofit entities are participating in the 

RAPP program shall obtain annual 

certifications from all such entities that 

certify their size, as defined in this part. 

The Participant shall retain these 

certifications in accordance with the 

recordkeeping requirements of this part. 

(f) Changes to activities and funding— 

(1) Adding a new activity. (i) A RAPP 

Participant may not conduct a new 

activity without first obtaining an 

approved activity budget for such 

change. To request approval of such 

activity budget, the RAPP Participant 

shall submit a notification to CCC. 

(ii) A notification for a new activity 

shall provide an activity justification 

and identify any related adjustments to 

the approved strategic plan, including 

changes in the market, constraint, or 

opportunity that the activity proposes to 

address. The notification shall contain 

the activity description and the 

proposed budget. 

(iii) After receipt of the notification, 

CCC will inform the RAPP Participant 

via the UES website whether the 

requested budget is approved. 

(2) Modifying existing activities and 

their funding levels. (i) A RAPP 

Participant desiring to increase the 

funding level for existing, approved 

activities addressing a single constraint 

or opportunity by more than $25,000 or 


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25 percent of the approved funding 

level, whichever is greater, must first 

submit a notification explaining the 

adjustment to CCC before making such 

change. 

(ii) A RAPP Participant may make 

significant adjustments below $25,000 

or 25 percent of the approved funding 

level, whichever is greater, to the 

funding levels for existing, approved 

activities without prior notification to 

CCC, but only if it submits a notification 

explaining the adjustments to CCC no 

later than 30 days after the change. 

Minor adjustments to existing, approved 

activities and/or funding levels do not 

require notification. 

(iii) Notifications shall describe the 

activity, changes to the activity, the 

existing funding level, the proposed 

funding level, and a justification for 

transfer of funds, if applicable. 

§ 1489.15 Operational procedures for 

brand promotion programs. 

(a) Where CCC approves an 

application by a RAPP Participant to 

run a brand promotion program that 

will include brand participants, the 

RAPP Participant shall establish brand 

program operational procedures. The 

RAPP Participant shall submit to CCC 

for approval its proposed brand program 

operational procedures. CCC will notify 

all RAPP Participants in writing in each 

Participant’s approval letter as to 

applicable submission dates for and 

dates for approvals of brand program 

operation procedures. Such procedures 

shall include, at a minimum, a brand 

program application, application 

procedures, application review criteria, 

brand participant eligibility 

requirements, a participation agreement, 

reimbursement requirements, 

compliance requirements, reporting and 

recordkeeping requirements, 

employment practices, financial 

management requirements, contracting 

procedures, and evaluation 

requirements. The RAPP Participant 

must submit to CCC for approval any 

proposed changes to already approved 

brand program operational procedures 

before implementing such proposed 

changes. 

(b) The RAPP Participant shall not 

enter into any participation agreements 

with brand participants, nor shall it 

implement any RAPP brand activities, 

unless and until CCC has communicated 

in writing its approval of the proposed 

operational procedures to the RAPP 

Participant. 

(c) Where CCC approves a RAPP 

Participant’s application to run a brand 

promotion program that will include 

brand participants, the RAPP 

Participant shall enter into participation 

agreements with brand participants. 

Brand participants’ size may not exceed 

300 percent of the applicable small 

business size standard as found in 13 

CFR part 121. These agreements must: 

(1) Specify a time period for such 

brand promotion and require that all 

brand promotion expenditures be made 

within the RAPP Participant’s approved 

budget period; 

(2) Make no allowance for extension 

or renewal; 

(3) Limit reimbursable expenditures 

to those made in countries and for 

activities approved in the brand 

participant’s activity plan; 

(4) Specify the percentage of 

promotion expenditures that will be 

reimbursed, reimbursement procedures, 

and documentation requirements; 

(5) Include a written certification by 

the brand participant that it either owns 

the brand of the product it will promote 

or has exclusive rights to promote the 

brand in each of the countries in which 

promotion activities will occur; 

(6) Require that all product labels, 

promotional material, and advertising 

will identify the origin of the eligible 

commodity as ‘‘American’’, ‘‘Product of 

the United States of America’’, ‘‘Product 

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

‘‘Product of America’’, ‘‘Grown in the 

United States of America’’, ‘‘Grown in 

the U.S.’’, ‘‘Grown in the U.S.A.’’, 

‘‘Grown in America’’, ‘‘Made in the 

United States of America,’’ ‘‘Made in the 

U.S.’’, ‘‘Made in the U.S.A.’’, ‘‘Made in 

America’’, or product of, grown in or 

made in any state or territory of the 

United States of America spelled out in 

its entirety, or other U.S. regional 

designation if approved in advance by 

the CCC; that such origin identification 

will be conspicuously displayed in a 

manner easily observed as identifying 

the origin of the product; and that such 

origin identification will conform, to the 

extent possible, to the U.S. standard of 

1⁄6 inch (.42 centimeters) in height based 

on the lower case letter ‘‘o’’. The use of 

the above terms as a descriptor or in the 

name of the product (e.g., Cincinnati 

style chili, Gina’s American Pizza) does 

not satisfy the product origin 

requirement. Phrases ‘‘product of’’, 

‘‘grown in’’ or ‘‘made in’’ are 

encouraged, but not required. A RAPP 

Participant that wishes to use an origin 

statement that varies from those set out 

in this subsection must submit the 

proposed statement to CCC for review 

and must receive approval to use the 

statement before its use in an activity. 

A RAPP Participant may request an 

exemption from this requirement on a 

case-by-case basis. All such requests 

shall be in writing and include 

justification satisfactory to the CCC that 

the labeling requirement in this 

paragraph (c)(6) would hinder a RAPP 

Participant’s promotional efforts. CCC 

will determine, on a case-by-case basis, 

whether sufficient justification exists to 

grant an exemption from the labeling 

requirement. In addition, the CCC may 

temporarily waive this requirement 

where the CCC has determined that 

such labeling will likely harm sales 

rather than help them. Such 

determinations will be announced to 

RAPP Participants via a RAPP notice 

issued on the FAS website; 

(7) Include a written certification by 

the brand participant that identifies its 

size on the date of its application for 

branded program funding, or that it is a 

U.S. agricultural cooperative; 

(8) Require that the brand participant 

submit to the RAPP Participant a 

statement certifying that any Federal 

funds received will supplement, but not 

supplant, any private or third-party 

funds or other contributions to program 

activities; and 

(9) Require the brand participant to 

maintain all original records and 

documents relating to program activities 

for three calendar years following the 

end of the applicable budget period and 

make such records and documents 

available upon request to authorized 

officials of the U.S. Government. 

§ 1489.16 Contribution rules. 

(a) In RAPP generic promotion 

programs, a RAPP Participant shall 

contribute a total amount in goods, 

services, and/or cash equal to at least 10 

percent of the value of resources 

provided by the CCC for all generic 

promotion activities undertaken by the 

RAPP Participant. 

(b) In RAPP brand promotion 

programs, a RAPP Participant 

conducting its own brand promotion or 

a brand participant that is participating 

in the RAPP brand promotion program 

of another RAPP Participant shall 

contribute at least 50 percent of the total 

eligible expenditures submitted in 

accordance with § 1489.17 made on 

each approved brand promotion. 

(c) A RAPP Participant must use its 

own funds and may not use RAPP 

program funds to pay any 

administrative costs of the RAPP 

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

legal fees, except as set forth in this part. 

Where the RAPP Participant uses its 

own funds to pay for administrative 

costs, such costs may be counted in 

calculating the amount of contributions 

the RAPP Participant contributes to 

RAPP generic or brand promotion 

programs. 

(d) Regarding eligible contributions: 


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(1) In calculating the amount of 

contributions that it will make, and the 

contributions that the U.S. industry 

(including expenditures to be made by 

entities in the applicant’s industry or 

agricultural sector in support of the 

entities’ related promotion activities in 

the markets covered by the applicant’s 

application) or State agency will make, 

the RAPP applicant may include the 

costs listed under paragraph (d)(2) of 

this section if such expenditures: 

(i) Are necessary and reasonable for 

accomplishment of an approved 

activity; 

(ii) Are not included as contributions 

for any other Federal award; and 

(iii) Are not paid by the Federal 

Government under another Federal 

award, except where the Federal statute 

authorizing a program specifically 

provides that Federal funds made 

available for such program can be 

applied to the matching or cost sharing 

requirements of other Federal programs. 

(2) Subject to paragraph (d)(1) of this 

section, as well as the cost principles in 

2 CFR part 200 to the extent these 

principles do not directly conflict with 

the provisions of this part, eligible 

contributions are: 

(i) Cash; 

(ii) Compensation paid to personnel; 

(iii) The cost of acquiring materials, 

supplies or services; 

(iv) The cost of office space; 

(v) A reasonable and justifiable 

proportion of general administrative 

costs and overhead; 

(vi) Payments for indemnity and 

fidelity bond expenses; 

(vii) The cost of business cards that 

target a foreign audience; 

(viii) The cost of subscriptions that 

are of a technical, economic, or 

marketing nature and that are relevant 

to the approved activities of the RAPP 

Participant; 

(ix) The cost of activities conducted 

overseas; 

(x) Credit card fees; 

(xi) The cost of any independent 

evaluation or audit that is not required 

by the CCC to ensure compliance with 

program agreement or regulatory 

requirements; 

(xii) The cost of giveaways, awards, 

prizes and gifts; 

(xiii) The cost of product samples; 

(xiv) Fees for participating in U.S. 

Government-sponsored or endorsed 

export promotion activities; 

(xv) The cost of air and local travel in 

the United States; 

(xvi) STRE and the costs associated 

with trade shows, seminars, and 

entertainment conducted in the United 

States where the STRE and costs 

associated with trade shows, seminars, 

and entertainment have a programmatic 

purpose and are authorized in the 

program agreement and/or the approval 

letter or authorized by prior written 

approval of the CCC; 

(xvii) Other administrative expenses 

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

an overseas office); and 

(xviii) The cost of any activity 

expressly listed as reimbursable in this 

part. 

(3) The following are not eligible 

contributions: 

(i) Any portion of salary or 

compensation of an individual who is 

the target of an approved promotional 

activity; 

(ii) Any expenditure, including that 

portion of salary and time spent, related 

to promoting membership in the 

Participant organization (sometimes 

referred to in the industry as 

‘‘backsell’’); 

(iii) Any land costs other than 

allowable costs for office space; 

(iv) The cost of refreshments and 

related equipment provided to office 

staff; 

(v) The cost of insuring articles owned 

by private individuals; 

(vi) The cost of any arrangement that 

has the effect of reducing the selling 

price of a U.S. agricultural commodity; 

(vii) The cost of product development, 

product modifications, or product 

research, except as described in 

§ 1489.17(c)(22); 

(viii) Slotting fees or similar sales 

expenditures; 

(ix) Membership fees in clubs and 

social organizations; and 

(x) Any expenditure for an activity 

prior to the CCC’s approval of that 

activity. 

(4) The CCC shall determine, at the 

CCC’s discretion, whether any cost not 

expressly listed in this section may be 

included by the RAPP Participant as an 

eligible contribution. 

§ 1489.17 Reimbursement rules. 

(a) A RAPP Participant may seek 

reimbursement for an eligible 

expenditure if: 

(1) The expenditure was necessary 

and reasonable for the accomplishment 

of an approved RAPP activity; and 

(2) The Participant has not been and 

will not be reimbursed for such 

expenditure by any other source. 

(b) Subject to paragraphs (a) and (d) 

of this section, as well as the cost 

principles in 2 CFR part 200 to the 

extent these principles do not directly 

conflict with the provisions of this part, 

for either brand or generic promotion 

activities, the CCC will reimburse, in 

whole or in part, the costs of: 

(1) Production and placement of 

advertising, in print, electronic media, 

billboards, or posters, which may 

include advertising the availability of 

price discounts, except that advertising 

associated with a coupon or price 

discount for the RAPP-promoted 

product is not reimbursable. If 

advertising is related to both coupons or 

price discounts for products other than 

the RAPP Participant’s promoted 

products as well as for RAPP-promoted 

products, then expenditures for such 

advertising will not be reimbursed in 

whole or in part (e.g., expenditures may 

not be prorated and submitted for 

reimbursement). Electronic media 

include, but are not limited to, radio, 

television, electronic mail, internet, 

telephone, text messaging, social media, 

and podcasting. 

(2) Production and distribution of 

banners, recipe cards, table tents, shelf 

talkers, and other similar point of sale 

materials. 

(3) Direct mail advertising. 

(4) In-store and food service 

promotions, product demonstrations to 

the trade and to consumers, and 

distribution of product samples (but not 

the purchase of the product samples, 

except as authorized in paragraph (c)(9) 

of this section). 

(5) Temporary displays and rental of 

space for temporary displays. 

(6) Expenditures, other than travel 

expenditures, associated with seminars 

and educational training, whether 

conducted in the United States or 

outside the United States. 

(7) Subject to paragraph (b)(18) of this 

section, expenditures, other than travel 

expenditures, associated with retail, 

trade and consumer exhibits and shows, 

whether held outside or inside the 

United States, including participation 

fees, booth construction, transportation 

of related materials, rental of space and 

equipment, and duplication of related 

printed materials. However, with regard 

to non-travel expenditures associated 

with retail, trade and consumer exhibits 

and shows held inside the United 

States, such expenditures are 

reimbursable only if the exhibit or show 

is: a food or agricultural show with no 

less than 30 percent of exhibitors selling 

food or agricultural products; and, an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 15 

percent of its visitors are from outside 

the U.S. CCC will compile a list of 

approved retail, trade and consumer 

exhibits and shows held inside the 

United States for which RAPP 

reimbursement is available, and such 

list will be announced to RAPP 

Participants via a RAPP notice issued on 

FAS’ website. 


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(8) Subject to paragraph (b)(18) of this 

section, international travel 

expenditures, not to exceed the full fare 

economy rate, including any fees for 

modifying the originally purchased 

airline ticket, per diem, passports, visas 

and inoculations, as allowed under the 

U.S. Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200, for no more than two 

representatives of a single brand 

participant (or RAPP Participant 

directly running its own brand program) 

to exhibit their company’s (or 

cooperative’s) products at a retail, trade, 

or consumer exhibit or show held 

outside the United States. 

Representatives may include employees 

and board members of private 

companies, employees or members of 

cooperatives, or any broker, consultant, 

or marketing representative contracted 

by the company or cooperative to 

represent the company or cooperative in 

sales transactions. All travel should 

follow a direct or usually traveled route. 

(9) Subscriptions that are of a 

technical, economic, or marketing 

nature and that are relevant to the 

approved activities of the RAPP 

Participant. 

(10) Demonstrators, interpreters, 

translators, receptionists, and similar 

temporary workers who help with the 

implementation of individual 

promotional activities, such as trade 

shows, in-store promotions, food service 

promotions, and trade seminars. 

(11) Giveaways, awards, prizes, gifts 

and other similar promotional materials, 

subject to such reimbursement 

limitation as CCC may determine and 

announce in writing to RAPP 

Participants via a RAPP notice issued on 

FAS’ website. Reimbursement is 

available only when: 

(i) The items are described in detail 

with a per unit cost in an approved 

strategic plan; and 

(ii) Distribution of the promotional 

item is not contingent upon the 

consumer, or other target audience, 

purchasing a good or service to receive 

the promotional item. 

(12) The design and production of 

packaging, labeling or origin 

identification, to be used during the 

budget period in which the expenditure 

is made, if such packaging, labeling or 

origin identification is necessary to meet 

the importing requirements of a foreign 

country. 

(13) The design, production, and 

distribution of coupons for products 

other than the RAPP Participant’s 

promoted products. If such activities 

include both coupons or price discounts 

for products other than the RAPP 

Participant’s promoted products as well 

as for RAPP-promoted products, then 

expenditures for such activities will not 

be reimbursed in whole or in part (e.g., 

expenditures may not be prorated and 

submitted for reimbursement). 

(14) An audit of a RAPP Participant as 

required by 2 CFR part 200, subpart F, 

if the RAPP is the RAPP Participant’s 

largest source of Federal funding. 

(15) The translation of written 

materials as necessary to carry out 

approved activities. 

(16) Expenditures associated with 

developing, updating, and servicing 

websites on the internet that clearly 

target a foreign audience. 

(17) International travel expenditures, 

not to exceed the full fare economy rate, 

including any fees for modifying the 

originally purchased airline ticket, per 

diem, passports, visas and inoculations, 

as allowed under the U.S. Federal 

Travel Regulations (41 CFR parts 301 

through 304) and 2 CFR part 200, 

incurred for a foreign trade mission 

conducted outside the United States 

that is an activity under an approved 

branded program and that has met the 

following conditions: 

(i) Trade mission travel for company 

(or cooperative) representatives was 

identified as a separate approved 

activity in the RAPP Participant’s UES; 

(ii) The trade mission included 

representatives, as defined in paragraph 

(b)(8) of this section, from a minimum 

of five different companies (or 

cooperatives), and no more than two 

representatives from each participating 

company (or cooperative); 

(iii) The appropriate FAS overseas 

office supported the trade mission by 

dedicating meaningful funding or other 

resources (such as facilities or staff time) 

to the activity; and 

(iv) The RAPP Participant with the 

approved brand program produced an 

itinerary or agenda for the trade mission 

that demonstrated that company (or 

cooperative) representatives would be 

engaged for a minimum of 6 hours per 

day (except for the first and last days of 

the mission) in trade mission activities 

that include, at a minimum, each of the 

following: 

(A) A product showcase where the 

FAS overseas office approved an 

invitation list of qualified buyers; 

(B) Pre-arranged one-on-one business 

meetings; and 

(C) Evaluation and feedback sessions 

with FAS staff and trade mission 

sponsors. 

(v) Reimbursement is conditional on 

the RAPP Participant having notified in 

writing the Attache ́/Counselor in the 

destination country in advance of the 

travel to that country or region. All 

travel should follow a direct or usually 

traveled route. 

(18) Where USDA has sponsored or 

endorsed a U.S. pavilion at a retail, 

trade and consumer exhibit or show, 

whether held outside or inside the 

United States, RAPP funds may be used 

to reimburse the travel and/or nontravel expenditures of only those RAPP 

Participants located within the U.S. 

pavilion. Such expenditures must also 

adhere to the standard terms and 

conditions of the U.S. pavilion 

organizer. All travel should follow a 

direct or usually traveled route. Upon 

written request, the CCC may 

temporarily waive this subsection, on a 

case-by-case basis, where: 

(i) The trade show is segregated into 

product pavilions; or 

(ii) A company’s distributor or 

importer is located outside the U.S. 

pavilion. Such waiver will be provided 

to the RAPP Participant in writing. 

(19) Contracts with U.S.-based 

organizations when the only contracted 

service such organizations provide to a 

RAPP Participant is carrying out a 

specific market promotion activity in 

the United States directed to a foreign 

audience (e.g., a trade mission of foreign 

buyers coming to the United States to 

visit U.S. exporters). Such contracts may 

be reimbursable as a direct promotional 

expense. If a U.S.-based organization 

provides administrative services to the 

RAPP Participant’s domestic home 

office during a budget period, any direct 

promotional services such organization 

provides to the Participant, whether for 

the Participant’s domestic or overseas 

offices, during the same budget period 

are not reimbursable. 

(c) Subject to paragraphs (a) and (d) of 

this section as well as the cost 

principles in 2 CFR part 200 to the 

extent these principles do not directly 

conflict with the provisions of this part, 

but for generic promotion activities 

only, the CCC will also reimburse, in 

whole or in part, the cost of: 

(1) Temporary contractor fees for 

contractors stationed overseas, except 

the CCC will not reimburse any portion 

of any such fee that exceeds the daily 

gross salary of a GS–15, Step 10 for U.S. 

Government employees in effect on the 

date the fee is earned, unless a bidding 

process reveals that such a contractor is 

not available at or below that salary rate. 

(2) Subject to paragraph (b)(18) of this 

section, international travel 

expenditures, not to exceed the full fare 

economy rate, including any fees for 

modifying the originally purchased 

airline ticket, per diem, passports, visas, 

and inoculations, for activities held 

outside the United States or in the 

United States, as allowed under the U.S. 


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Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200, except that if the activity is 

participation in a retail, trade, or 

consumer exhibit or show held inside 

the United States, then international 

travel expenditures are covered only if 

the exhibit or show is: a food or 

agricultural show with no less than 30 

percent of exhibitors selling food or 

agricultural products; and, an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 15 

percent of its visitors are from countries 

other than the United States. The CCC 

will compile a list of approved retail, 

trade, and consumer exhibits and shows 

held inside the United States for which 

RAPP reimbursement is available, and 

such list will be announced to RAPP 

Participants via a RAPP notice issued on 

FAS’ website. 

(i) The CCC generally will not 

reimburse any portion of air travel, 

including any fees for modifying the 

originally purchased ticket, in excess of 

the full fare economy rate or when the 

RAPP Participant fails to notify the 

Attache ́/Counselor in the destination 

country in advance of the travel to that 

country or region, unless the CCC 

determines it was impractical to provide 

such notice. If a traveler flies in 

business class or a different premium 

class, the basis for reimbursement will 

be the full fare economy class rate for 

the same flight and the RAPP 

Participant shall provide documentation 

establishing such full fare economy 

class rate to support its reimbursement 

claim. If economy class is not offered for 

the same flight or if the traveler flies on 

a charter flight, the basis for 

reimbursement will be the average of 

the full fare economy class rate for 

flights offered by three different airlines 

between the same points on the same 

date, and the RAPP Participant shall 

provide documentation establishing 

such average of the full fare economy 

class rates to support its reimbursement 

claim. 

(ii) In limited circumstances, the 

RAPP Participant may be reimbursed for 

air travel up to the business class rate 

(i.e., a premium class rate other than the 

first class rate) upon prior written 

approval by the CCC. Such 

circumstances are: 

(A) Regularly scheduled flights 

between origin and destination points 

do not offer economy class (or 

equivalent) airfare, and the RAPP 

Participant receives written 

documentation from its travel agent to 

that effect at the time the tickets are 

purchased; 

(B) Business class air travel is 

necessary to accommodate an eligible 

traveler’s disability. Such disability 

must be substantiated in writing by a 

physician; and 

(C) If an eligible traveler is an 

employee, contractor, or member of a 

RAPP participant organization, and the 

eligible traveler’s origin and/or 

destination are outside of the 

continental United States and the 

scheduled flight time, beginning with 

the scheduled departure time, ending 

with the scheduled arrival time, and 

including stopovers and changes of 

planes, exceeds 14 hours. In such case, 

per diem and other allowable expenses 

will also be reimbursable for the day of 

arrival. However, no expenses will be 

reimbursable for a rest period or for any 

non-work days (e.g., weekends, 

holidays, personal leave, etc.) 

immediately following the date of 

arrival. 

(D) If an eligible traveler is the target 

of a market development activity (e.g., a 

foreign buyer, foreign importer, member 

of the foreign media), then the RAPP 

Participant may be reimbursed for air 

travel up to the business class rate when 

the eligible traveler’s origin and/or 

destination are outside of the 

continental United States and the 

scheduled flight time, beginning with 

the scheduled departure time, ending 

with the scheduled arrival time, and 

including stopovers and changes of 

planes, exceeds five hours. In such 

cases, per diem and other allowable 

expenses will also be reimbursable for 

the day of arrival. However, no expenses 

will be reimbursable for a rest period or 

for any non-work days (e.g., weekends, 

holidays, personal leave, etc.) 

immediately following the date of 

arrival. 

(iii) Alternatively, in lieu of 

reimbursing up to the business class rate 

in such circumstances noted in 

paragraphs (c)(2)(ii)(C) and (D) of this 

section, the CCC will reimburse 

economy class airfare plus per diem and 

other allowable travel expenses related 

to a rest period of up to 24 hours, either 

en route or upon arrival at the 

destination. For a trip with multiple 

destinations, each origin/destination 

combination will be considered 

separately when applying the 14-hour 

rule for eligibility of reimbursement of 

business class travel or rest period 

expenses. 

(iv) A stopover for purposes of this 

paragraph (c)(2) is the time a traveler 

spends at an airport, other than the 

originating or destination airport, which 

is a normally scheduled part of a flight. 

A change of planes is the time a traveler 

spends at an airport, other than the 

originating or destination airport, to 

disembark from one flight and embark 

on another. 

(v) All travel under this paragraph 

(c)(2) should follow a direct or usually 

traveled route. Under no circumstances 

should a traveler select flights in a 

manner that extends the scheduled 

flight time to beyond 14 hours in part 

to secure eligibility for reimbursement 

of business class travel. An eligible 

traveler that is the target of a market 

development activity is only eligible for 

a rest period when that traveler flies in 

economy class and meets the 14-hour 

test. 

(3) Automobile mileage at the local 

U.S. Embassy rate or rental cars while 

in travel status. 

(4) Other allowable expenditures 

while in travel status as authorized by 

the U.S. Federal Travel Regulations (41 

CFR parts 301 through 304) and 2 CFR 

part 200. 

(5) Accident liability insurance 

premiums for facilities used jointly with 

third-party participants for RAPP 

activities or for RAPP-funded travel of 

third-party participants, provided the 

types and extent and cost of coverage 

are in accordance with the RAPP 

Participant’s policy and sound business 

practice. 

(6) Market research, including 

research to determine the types of 

products that are desired in a market. 

(7) Legal fees incurred in resolving 

trade issues with foreign countries. 

(8) The sample purchase price, and 

the cost of transporting samples 

domestically in the United States to the 

port of export and then to the first 

foreign port or first point of entry, for 

samples of eligible commodities used to 

provide on-site technical assistance to 

the trade necessary to facilitate 

successful use of the relevant eligible 

commodity by importers. The target of 

such activity must be the trade, and not 

consumers, but any product resulting 

from the technical training can be used 

to determine consumer preferences. 

(9) STRE incurred outside of the 

United States and STRE incurred within 

the United States in conjunction with an 

approved activity where the STRE has a 

programmatic purpose and are 

authorized with prior written approval 

from the CCC. RAPP Participants are 

required to use the appropriate 

American Embassy representational 

funding guidelines for breakfasts, 

lunches, dinners and receptions 

incurred outside of the United States as 

the basis for their calculating eligible 

expenses. RAPP Participants may 

exceed Embassy guidelines by up to 25 

percent without prior approval. RAPP 

Participants may only exceed 125 


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percent of Embassy guidelines when 

they have received written authorization 

from the FAS Agricultural Counselor at 

the Embassy. The amount of 

unauthorized STRE expenses that 

exceed 125 percent of the guidelines 

will not be reimbursed. RAPP 

Participants must pay the difference 

between the total cost of STRE events 

and the appropriate amount as 

determined by the guidelines and this 

part. For STRE incurred in the United 

States, the RAPP Participant should 

provide, in its request for approval, the 

basis for determining its proposed 

expenses. 

(10) U.S. office(s) administrative 

support expenses, incurred specifically 

to administer the RAPP, for the National 

Association of State Departments of 

Agriculture, the SRTGs, and the 

Intertribal Agriculture Council. The 

level of such funding will be established 

in the approval letter. 

(11) U.S. office(s) administrative 

support expenses, incurred specifically 

to administer the RAPP, for any RAPP 

Participants not identified in paragraph 

(c)(10) of this section, will be 

considered, except for agricultural 

cooperatives. Reimbursement for such 

expenses shall not exceed eight percent 

of the RAPP Participant’s total RAPP 

budget. The level of such funding will 

be established by CCC in the approval 

letter. 

(12) Non-travel expenditures 

associated with conducting 

international staff conferences held 

either in or outside the United States. 

(13) Subject to paragraph (b)(18) of 

this section, domestic travel 

expenditures, as allowed under the U.S. 

Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200, for international retail, trade, and 

consumer exhibits and shows 

conducted in the United States upon 

prior written approval by CCC. 

Domestic travel expenses to such a 

show or exhibit are covered only if the 

exhibit or show is: a food or agricultural 

show with no less than 30 percent of 

exhibitors selling food or agricultural 

products; and an international show 

that targets buyers, distributors and the 

like from more than one foreign country 

and no less than 15 percent of its 

visitors are from countries other than 

the host country. CCC will compile a list 

of approved retail, trade, and consumer 

exhibits and shows held inside the 

United States for which RAPP 

reimbursement is available and such list 

will be announced to RAPP Participants 

via a RAPP notice issued on FAS’ 

website. 

(14) Domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304) and 2 CFR part 200, for seminars 

and educational training conducted in 

the United States. 

(15) Domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304) and 2 CFR part 200, for up to two 

individuals, whether home office RAPP 

Participant employees, RAPP 

Participant board members, or State 

department of agriculture employees 

paid by the RAPP Participant, or a 

combination thereof, when such 

individuals accompany foreign trade 

missions or technical teams while 

traveling in the United States where the 

following conditions are met: 

(i) Such trade missions or technical 

team visits are identified in the RAPP 

Participant’s UES; 

(ii) Such trade missions or technical 

team visits have been approved by CCC; 

and 

(iii) The RAPP-sponsored travelers 

submit a follow-up trip report to CCC 

that includes the following: 

(A) Purpose for the individuals’ 

participation; 

(B) Any pre-arranged business 

meetings; 

(C) Itinerary and/or agenda for the 

trip; and 

(D) Feedback from sponsors and trade 

mission/technical team members on the 

success of the trip. 

(16) Approved demonstration 

projects. 

(17) Expenditures related to 

copyright, trademark, or patent 

registration, including attorney fees. 

(18) Rental or lease expenditures for 

storage space for program-related 

materials. 

(19) Business cards that target a 

foreign audience. 

(20)(i) Expenditures associated with 

developing, updating, and servicing 

websites on the internet that: 

(A) Contain a message related to 

exporting or international trade; 

(B) Include a discernible ‘‘link’’ to the 

FAS website or an FAS overseas office 

website; and 

(C) Have been specifically approved 

by the appropriate FAS division. 

Expenditures related to websites or 

portions of websites that are accessible 

only to an organization’s members are 

not reimbursable. 

(ii) Reimbursement claims for 

websites that include ‘‘members only’’ 

sections must be prorated to exclude the 

costs associated with those areas subject 

to restricted access. 

(21) Expenditures not otherwise 

prohibited from reimbursement that are 

associated with activities held in the 

United States or abroad designed to 

improve market access by specifically 

addressing temporary, permanent, or 

impending non-tariff barriers to trade 

that prohibit or threaten U.S. exports of 

agricultural commodities. Examples of 

such expenditures include, but are not 

limited to: initial pre-clearance 

programs, educational training, policy 

advocacy, public relations efforts, 

foreign country audits of U.S. facilities, 

export protocol and work plan support, 

seminars and workshops, study tours, 

field surveys, development of pest lists, 

pest and disease research, database 

development, and reasonable logistical 

and administrative support. 

(22) Organization costs for overseas 

offices approved in agreements. Such 

costs include incorporation fees, 

brokers’ fees, and fees to attorneys, 

accountants, or investment counselors, 

whether or not employees of the 

organization, incurred in connection 

with the establishment or reorganization 

of the overseas office, and rent, utilities, 

communications originating overseas, 

office supplies, accident liability 

insurance premiums (provided the types 

and extent and cost of coverage are in 

accordance with the RAPP Participant’s 

policy and sound business practice), 

and routine accounting and legal 

services required to maintain the 

overseas office. 

(23) With prior CCC approval, the 

purchase, lease, or repair of, or 

insurance premiums for, capital goods 

that have an expected useful life of at 

least one year, such as equipment, 

machinery, removable fixtures, 

computer hardware and software, and 

portable electronic communications 

devices (including mobile phones and 

wireless devices). 

(24) Compensation and allowances for 

housing and cost of living adjustments 

paid to a U.S. citizen employee or a U.S. 

citizen contractor stationed overseas, 

provided such benefits are granted 

under established written policies, 

except CCC will not reimburse that 

portion of: 

(i) The total of compensation and 

allowances that exceed 125 percent of 

the level of a GS–15 Step 10 salary for 

U.S. Government employees; or 

(ii) Allowances that exceed the rate 

authorized for U.S. Embassy personnel. 

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

staff employees or non-U.S. contractors 

stationed overseas, subject to the 

following limitations: 

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

Embassy Foreign Service National (FSN) 

salary plan, CCC will not reimburse any 

portion of such compensation that 

exceeds the compensation prescribed 

for the most comparable position in the 

FSN salary plan; or 


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(ii) Where an FSN salary plan does 

not exist, CCC will not reimburse any 

portion of such compensation that 

exceeds locally prevailing levels, which 

the RAPP Participant shall document by 

a salary survey or other means. 

(26) A retroactive salary adjustment 

for non-U.S. citizen staff employees or 

non-U.S. contractors stationed overseas 

that conforms to a change in FSN salary 

plans, effective as of the date of such 

change. 

(27) Accrued annual leave as of the 

time employment is terminated or as of 

such time as required by local law. 

(28) Overtime paid to clerical staff of 

approved RAPP-funded overseas offices. 

(29) Such premiums for health or 

accident insurance and other benefits 

for foreign national employees that the 

employer is required by law to pay, 

provided that such benefits are granted 

under established written policies. 

(30) Legal fees to obtain advice on the 

host country’s labor laws. 

(31) Employment agency fees. 

(32) Evacuation payments (safe haven) 

and shipment and storage of household 

goods and motor vehicles for relocations 

lasting at least 12 months. 

(33) Travel costs for dependents, as 

allowed in 2 CFR part 200 (e.g., for 

travel of duration of six months or more 

with prior approval of CCC). 

(34) That portion of the cost of 

wireless phone plans that is devoted to 

program activities and monthly service 

fees prorated at the proportion of 

program-related usage to total usage. 

(d) CCC will not reimburse any cost 

of: 

(1) Forward year financial obligations, 

such as severance pay, attributable to 

employment of foreign nationals; 

(2) Expenses, fines, settlements, or 

judgments relating to legal suits, 

challenges or disputes, except as 

otherwise allowed in 2 CFR part 200 

and this part; 

(3) The design and production of 

packaging, labeling or origin 

identification, except as specifically 

allowed in this part; 

(4) Product development, product 

modification or product research, except 

as specified in paragraph (c)(21) of this 

section; 

(5) Product samples to be distributed 

to consumers; 

(6) Slotting fees or similar sales 

expenditures; 

(7) The purchase of, construction of, 

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

constructed to remain permanently in 

the same location beyond one budget 

period. However, the CCC may, at its 

discretion, reimburse the construction 

or purchase of permanent displays on a 

case-by-case basis, if the Participant 

sought and received prior written 

approval from the CCC of such 

construction or purchase; 

(8) Rental, lease or purchase of 

warehouse space, except for storage 

space for program-related material; 

(9) Coupon redemption or price 

discounts of the RAPP promoted 

commodity; 

(10) Refundable deposits or advances; 

(11) Giveaways, awards, prizes, gifts 

and other similar promotional materials 

in excess of the limitation that the CCC 

will determine. Such determination will 

be announced in writing via a RAPP 

notice issued on FAS’ website; 

(12) Alcoholic beverages that are not 

a promoted commodity and part of an 

approved promotional activity; 

(13) The purchase, lease (except for 

use in authorized travel status) or repair 

of motor vehicles; 

(14) Travel of applicants for 

employment interviews; 

(15) Unused non-refundable airline 

tickets or associated penalty fees, except 

where travel was restricted by U.S. 

Government action or advisory; 

(16) Independent evaluations or 

audits, including evaluations or audits 

of the activities of a subcontractor, if the 

CCC determines that such a review is 

needed in order to confirm past or to 

ensure future program agreement or 

regulatory compliance; 

(17) Any arrangement that has the 

effect of reducing the selling price of a 

U.S. agricultural commodity; 

(18) Goods, services and salaries of 

personnel provided by U.S. industry or 

foreign third party; 

(19) Membership fees in clubs and 

social organizations; 

(20) Indemnity and fidelity bonds, 

except as otherwise allowed in 2 CFR 

part 200; 

(21) Fees for participating in U.S. 

Government-sponsored activities, other 

than trade fairs and exhibits; 

(22) Business cards that target a U.S. 

domestic audience; 

(23) Seasonal greeting cards; 

(24) Office parking fees; 

(25) Subscriptions to publications that 

are not of a technical, economic, or 

marketing nature or that are not relevant 

to the approved activities of the RAPP 

Participant; 

(26) U.S. office(s) administrative 

expenses, including communication 

costs, except as noted in paragraphs 

(c)(10) and (11) of this section, and 

except that usage costs for 

communications devices incurred while 

on reimbursable international or 

domestic travel for approved RAPP 

brand or generic promotion activities 

are reimbursable as eligible travel 

expenditures as allowed under the U.S. 

Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200; 

(27) Any expenditure on an activity 

that includes any derogatory reference 

or comparison to other U.S. agricultural 

commodities; 

(28) Payment of U.S. and foreign 

employees’ or contractors’ share of 

personal taxes, except where a foreign 

country’s laws require the RAPP 

Participant to pay such employees’ or 

contractors’ share; 

(29) Any expenditure made for an 

activity prior to the CCC’s approval of 

that activity; 

(30) Contributions to a contingency 

reserve or any similar provision made 

for events the occurrence of which 

cannot be foretold with certainty as to 

time, intensity, or with an assurance of 

their happening; 

(31) Expenditures associated with a 

RAPP Participant’s creation or review of 

their fraud prevention program, 

contracting procedures, or brand 

program operational procedures; 

(32) Entertainment (e.g., amusements, 

diversions, cover charges, personal gifts, 

or tickets to theatrical or sporting 

events); and 

(33) Refreshments, or related 

equipment, for office staff. 

(e) For a brand promotion activity, the 

CCC will reimburse no more than 50 

percent of the total eligible expenditures 

made on that activity by a brand 

participant. 

(f) The CCC will reimburse for 

expenditures made after the conclusion 

of a RAPP Participant’s period of 

performance, provided: 

(1) The activity was completed prior 

to the expiration date shown in the 

RAPP Participant’s program agreement; 

and 

(2) All expenditures for the activity 

were made within 6 months following 

the expiration date shown in the RAPP 

Participant’s program agreement. 

(g) A RAPP Participant shall not use 

RAPP funds for any activity or any 

expenses incurred by the RAPP 

Participant prior to the date of the 

program agreement or after the date the 

program agreement is suspended or 

terminated, except as otherwise 

permitted by the CCC. 

(h) Except as otherwise provided in 

this part, RAPP-funded travel shall 

conform to U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304) and 2 CFR part 200, and RAPPfunded air travel shall conform to the 

requirements of the Fly America Act (49 

U.S.C. 40118). For international travel, 

the RAPP Participant shall notify the 

Attache ́/Counselor in the destination 


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countries in writing in advance of any 

proposed travel. 

(i) The CCC may determine, at the 

CCC’s discretion, whether any cost not 

expressly listed in this section will be 

reimbursed. 

§ 1489.18 Reimbursement procedures. 

(a) Participants are required to use the 

CCC’s UES system to request 

reimbursement for eligible expenditures 

under RAPP. 

(b) All claims for reimbursement shall 

be submitted by the RAPP Participant’s 

U.S. office to the CCC through the UES 

system. 

(c) [Reserved] 

(d) The CCC will not reimburse claims 

submitted later than 6 months after the 

expiration date shown in the RAPP 

Participant’s program agreement. 

(e) If the CCC overpays a 

reimbursement claim, then the RAPP 

Participant shall repay the CCC the 

amount of the overpayment either by 

submitting a check payable to the CCC 

or by offsetting its next reimbursement 

claim. The Participant shall make such 

payment within 30 calendar days of the 

date that they discover, or are made 

aware, of any overpayment. The RAPP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance, in writing, by the CCC. 

(f) If a RAPP Participant receives a 

reimbursement or offsets an advanced 

payment that is later disallowed, the 

RAPP Participant shall repay the CCC 

within 30 days of such disallowance the 

amount disallowed either by submitting 

a check payable to the CCC or by 

offsetting its next reimbursement claim. 

The RAPP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance, in 

writing, by the CCC. 

(g) RAPP funds may be expended by 

RAPP Participants only on legitimate, 

approved activities as set forth in the 

program agreement and approval letter. 

If a RAPP Participant discovers that 

RAPP funds have not been properly 

spent, it shall notify the CCC and shall 

within 30 calendar days of its discovery 

repay the CCC the amount owed either 

by submitting a check payable to the 

CCC or by offsetting its next 

reimbursement claim. The RAPP 

Participant shall make such payment in 

U.S. dollars. 

(h) The RAPP Participant shall report 

any actions that may have a bearing on 

the propriety of any claims for 

reimbursement in writing to CCC. 

§ 1489.19 Advances. 

(a) Policy. In general, the CCC 

operates the RAPP on a reimbursable 

basis. 

(b) Exception. A RAPP Participant 

may request an advance of RAPP funds 

from the CCC for generic promotion 

activities, provided the RAPP 

Participant meets the criteria for 

advance payments in 2 CFR part 200. 

The CCC will not approve any request 

for an advance submitted after the 

expiration date shown in the RAPP 

Participant’s program agreement. At any 

given time, total payments advanced 

shall not exceed 40 percent of a RAPP 

Participant’s approved generic activity 

budget for the budget period. The CCC 

will not advance funds to a RAPP 

Participant for brand promotion 

activities. When approving a request for 

an advance, the CCC may require the 

RAPP Participant to carry adequate 

fidelity bond coverage when the absence 

of such coverage is considered by the 

CCC to create an unacceptable risk to 

the interests of the RAPP. Whether an 

‘‘unacceptable risk’’ exists in a 

particular situation will depend on a 

number of factors, such as, for example, 

the Participant’s history of performance 

in RAPP; the Participant’s perceived 

financial stability and resources; and 

any other factors presented in the 

particular situation that may reflect on 

the Participant’s responsibility or the 

riskiness of its activities. 

(c) Interest. A RAPP Participant shall 

deposit and maintain in an insured bank 

account in the United States all funds 

advanced by the CCC. The account shall 

be interest-bearing unless the exceptions 

in 2 CFR part 200 apply. Interest earned 

by the RAPP Participant on funds 

advanced by the CCC is not program 

income. The RAPP Participant shall 

remit any interest earned on the 

advanced funds to the appropriate 

entity as set forth in 2 CFR part 200. 

(d) Refunds due the CCC. A RAPP 

Participant shall fully expend all 

advances on approved generic 

promotion activities within 90 calendar 

days after the date the advance was 

approved in the UES. By the end of the 

90 calendar days, the RAPP Participant 

must submit reimbursement claims to 

offset the advance or submit a check 

made payable to CCC for any 

unexpended balance. The RAPP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance, in writing, by the CCC. 

§ 1489.20 Financial management. 

(a) A RAPP Participant shall 

implement and maintain a financial 

management system that conforms to 

generally accepted accounting 

principles. A RAPP Participant’s 

financial management system shall 

comply with the standards in 2 CFR part 

200. 

(b) A RAPP Participant shall institute 

internal controls and provide written 

guidance to commercial entities 

participating in its activities to ensure 

their compliance with this part. 

(c) A RAPP Participant shall retain all 

records concerning a RAPP program 

transaction for a period of three years 

after completion of the program 

transaction and permit the CCC to have 

full and complete access to such records 

during the transaction period and for 

such three-year period after completion 

of the program transaction. These 

records shall include all records 

pertaining to contractors. 

(d) A RAPP Participant shall maintain 

its records of expenditures and 

contributions in a manner that allows it 

to provide information by activity plan, 

country, activity number, and cost 

category. Such records shall include: 

(1) Receipts for all STRE (actual 

vendor invoices or restaurant checks, 

rather than credit card receipts); 

(2) Original receipts for any other 

program-related expenditure in excess 

of a set amount that CCC will determine 

and announce in writing to all RAPP 

Participants via a RAPP notice issued on 

the FAS website. The CCC may, from 

time to time, set a different minimum 

amount. In that case, the CCC will 

announce the new amount in writing to 

all RAPP Participants via a RAPP notice 

issued on the FAS website; 

(3) The exchange rate used to 

calculate the dollar equivalent of 

expenditures made in a foreign currency 

and the basis for such calculation; 

(4) Copies of reimbursement claims; 

(5) An itemized list of claims charged 

to each of the RAPP Participant’s CCC 

resources accounts; 

(6) Documentation with 

accompanying English translation 

supporting each reimbursement claim, 

including original evidence to support 

the financial transactions such as 

canceled checks, receipted paid bills, 

contracts or purchase orders, per diem 

calculations, travel vouchers, and credit 

memos; and 

(7) Documentation supporting 

contributions. These must include the 

dates, purpose, and location of the 

activity for which the cash or in-kind 

items were claimed as a contribution; 

who conducted the activity; the 

participating groups or individuals; and 

the method of computing the claimed 

contributions. RAPP Participants must 

retain and make available for 

compliance review documentation 

related to claimed contributions. 

(e) Upon request, a RAPP Participant 

shall provide to the CCC originals of 

documents supporting reimbursement 

claims. 


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§ 1489.21 Reports. 

(a) Contribution report. Not later than 

6 months after the expiration date 

shown in the RAPP Participant’s 

program agreement, a RAPP Participant 

shall submit a report that identifies, by 

cost category and in U.S. dollar 

equivalent, contributions made by the 

Participant, the applicable U.S. 

industry, and the States during the 

Participant’s RAPP period of 

performance. Foreign third-party 

contributions are not to be included in 

the contribution report. 

(b) Trip reports. Not later than 45 days 

after completion of travel (other than 

local travel), a RAPP Participant shall 

electronically submit a trip report. The 

report must include the name(s) of the 

traveler(s), purpose of travel, itinerary, 

names and affiliations of contacts, and 

a brief summary of findings, 

conclusions, recommendations, and 

specific accomplishments. 

(c) Research reports. Not later than 6 

months after the expiration date shown 

in the RAPP Participant’s program 

agreement, a RAPP Participant shall 

submit a report on any research 

conducted pursuant to the approved 

RAPP program. 

(d) Evaluation reports. Not later than 

6 months after the expiration date 

shown in the RAPP Participant’s 

program agreement, a RAPP Participant 

shall submit a report on any evaluations 

conducted in accordance with the 

approved RAPP program, including the 

outcome of action taken with RAPP 

funding and the increased market access 

or exports that can be directly attributed 

to the RAPP program. 

(e) Annual audits. Where the CCC is 

designated the cognizant agency for 

audit, the CCC may require the RAPP 

Participant to submit to the CCC an 

annual audit in accordance with 2 CFR 

part 200. If the CCC requires an 

additional audit with respect to a 

particular agreement, then the RAPP 

Participant shall arrange for such audit 

and shall submit to the CCC, in the 

manner to be specified by the CCC, such 

audit of the agreement. 

(f) Additional reports. The CCC may 

require the submission of additional 

reports. 

(g) Approval letters. A RAPP 

Participant’s program agreement and/or 

approval letter shall specify to whom 

the Participant shall submit the reports 

required in this section. 

(h) Program reviews. FAS, through its 

authorized representatives, may review 

project accomplishments, management 

control systems, and administration of 

funding provided through the program 

to ensure adherence to the requirements 

in this part. During such reviews, FAS 

will review recipients’ files related to 

the grant-funded program, and technical 

assistance may be required. 

§ 1489.22 Evaluation. 

(a)(1) The Government Performance 

and Results Act (GPRA) of 1993 (5 

U.S.C. 306; 31 U.S.C. 1105, 1115–1119, 

3515, 9703–9704) requires performance 

measurement of Federal programs, 

including the RAPP. Evaluation of the 

RAPP’s effectiveness will depend on a 

clear statement by Participants of goals 

to be met within a specified time, 

schedule of measurable milestones for 

gauging success, plan for achievement, 

and assessment of results of activities at 

regular intervals. The overall goal of the 

RAPP and of individual Participants’ 

programming is to increase sales that 

would not have occurred in the absence 

of RAPP funding. A RAPP Participant 

that can demonstrate such sales, taking 

into account extenuating factors beyond 

the Participant’s control, will have met 

the overall objective of the GPRA and 

the need for evaluation. 

(2) Evaluation is an integral element 

of program planning and 

implementation, providing the basis for 

the strategic plan. The evaluation results 

guide the development and scope of a 

RAPP Participant’s program, 

contributing to program accountability 

and providing evidence of program 

effectiveness that directly ties program 

funds to increased sales. 

(b) All RAPP Participants must report 

annual results against their target 

market and/or regional constraint/ 

opportunity performance measures. 

These are outcome results usually based 

on multiple activities and should 

demonstrate progress made in the 

market during the latest budget period. 

This report shall be completed and 

submitted to the CCC no later than 6 

months following the end of each 

Participant’s budget period. 

(c) When deemed appropriate or 

required by the CCC, a RAPP Participant 

shall complete a program evaluation. A 

program evaluation is a review of the 

RAPP Participant’s entire program, or an 

appropriate portion of the program as 

agreed to by the RAPP Participant and 

CCC, to determine the effectiveness of 

the RAPP Participant’s strategy in 

meeting specified goals. Actual scope 

and timing of the program evaluation 

shall be determined by the RAPP 

Participant and CCC and specified in 

the approval letter. A RAPP Participant 

shall submit, via a cover letter to CCC, 

an executive summary that assesses the 

program evaluation’s findings and 

recommendations, as well as any 

proposed changes in program strategy or 

design as a result of the evaluation. A 

program evaluation shall contain: 

(1) The name of the party conducting 

the evaluation; 

(2) The scope of the evaluation; 

(3) A concise statement of the market 

constraint(s)/opportunity(ies) and the 

goals specified in the approved strategic 

plan; 

(4) A description of the evaluation 

methodology; 

(5) A description of export sales 

achieved; 

(6) A summary of the findings, 

including an analysis of the strengths 

and weaknesses of the program(s); and 

(7) Recommendations for future 

programs. 

(d) When deemed appropriate or 

required by the CCC, RAPP Participants 

conducting a branded program must 

also complete a brand promotion 

evaluation. A brand promotion 

evaluation is a review of the U.S. and 

foreign commercial entities’ export sales 

to determine whether the activity 

achieved the goals specified in the 

approved RAPP program. Actual scope 

and timing of the brand promotion 

evaluation shall be determined by the 

RAPP Participant and CCC and 

specified in the approval letter. 

(e) On an annual basis, or more often 

when appropriate or required by the 

CCC, a RAPP Participant shall complete 

and submit program success stories. The 

CCC will announce to all RAPP 

Participants in writing the detailed 

requirements for completing and 

submitting program success stories. 

§ 1489.23 Compliance reviews and 

notices. 

(a) USDA staff may conduct 

compliance reviews of RAPP 

Participants’ activities under the RAPP 

program. RAPP Participants shall 

cooperate fully with relevant USDA staff 

conducting compliance reviews and 

shall comply with all requests from 

USDA staff to facilitate the conduct of 

such reviews. 

(b) Upon conclusion of the 

compliance review, USDA staff will 

provide a written compliance report to 

the RAPP Participant. The compliance 

report will specify whether USDA staff 

believe that CCC may be entitled to 

recover funds from the Participant and/ 

or it appears that the Participant is not 

complying with any of the terms or 

conditions of the program agreement, 

approval letter, or the applicable laws 

and regulations. The compliance report 

will explain the basis for any recovery 

of funds from the Participant. Within 60 

calendar days of the date the 

compliance report cover letter is signed, 

the RAPP Participant shall repay the 


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CCC the amount owed either by 

submitting a check payable to the CCC 

or by offsetting its next reimbursement 

claim. The RAPP Participant shall make 

such payment in U.S. dollars, unless 

otherwise approved in advance, in 

writing, by the CCC. If, however, a 

RAPP Participant notifies the CCC 

within 60 calendar days of the date the 

compliance report cover letter is signed 

that the Participant intends to file an 

appeal pursuant to paragraph (e) of this 

section, then the amount owed to the 

CCC by the RAPP Participant is not due 

until the appeal procedures are 

concluded and the CCC has made a final 

written determination as to the amount 

owed. If, as a result of a compliance 

review, the CCC determines that further 

review is needed in order to ensure 

compliance with the requirements of 

RAPP, then the CCC may require the 

Participant to contract for an 

independent audit. 

(c) In addition, the CCC may notify a 

RAPP Participant in writing at any time 

if CCC determines that CCC may be 

entitled to recover funds from the 

Participant. The CCC will explain the 

basis for any recovery of funds from the 

Participant in the written notice. The 

RAPP Participant shall, within 30 

calendar days of the date of the notice, 

repay the CCC the amount owed either 

by submitting a check payable to the 

CCC or by offsetting its next 

reimbursement claim. The RAPP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance, in writing, by the CCC. If, 

however, a RAPP Participant notifies 

the CCC within 30 calendar days of the 

date of the written notice that the 

Participant intends to file an appeal 

pursuant to paragraph (e) of this section, 

then the amount owed to the CCC by the 

RAPP Participant is not due until the 

appeal procedures are concluded and 

the CCC has made a final determination 

as to the amount owed. 

(d) The fact that a compliance review 

has been conducted by USDA staff does 

not signify that a RAPP Participant is in 

compliance with its program agreement, 

approval letter, and/or applicable laws 

and regulations. 

(e) For appeals: 

(1) A RAPP Participant may, within 

60 calendar days of the date of the 

compliance report or written notice 

from the CCC, submit a written response 

to the CCC appealing the report or 

notice. CCC, at its discretion, may 

extend the period for response. 

(2) After review of the Participant’s 

response, the CCC shall determine 

whether the Participant owes any funds 

to the CCC and will inform the 

Participant in writing of the basis for the 

determination. The CCC will initiate 

action to collect such amount by 

providing the Participant a written 

demand for payment of the debt 

pursuant to Debt Settlement Policies 

and Procedures, 7 CFR part 3. 

(3) Within 30 calendar days of the 

date of the determination, the 

Participant may request in writing that 

the CCC reconsider the determination 

and shall submit in writing the basis for 

such reconsideration. The Participant 

may also request a hearing. 

(4) If the Participant requests a 

hearing, the CCC will set a date and 

time for the hearing. The hearing will be 

an informal proceeding. A transcript 

will not ordinarily be prepared unless 

the Participant bears the cost of a 

transcript; however, the CCC may in its 

discretion have a transcript prepared at 

the CCC’s expense. 

(5) The CCC will base its final 

determination upon information 

contained in the administrative record. 

The Participant must exhaust all 

administrative remedies contained in 

this section before pursuing judicial 

review of a determination by the CCC. 

§ 1489.24 Failure to make required 

contribution. 

A RAPP Participant’s required 

contribution will be specified in the 

approval letter. If the RAPP Participant’s 

required contribution is specified as a 

dollar amount and the RAPP Participant 

does not contribute a total dollar 

amount sufficient to make the required 

contribution, then the RAPP Participant 

shall pay to the CCC in dollars the 

difference between the amount actually 

contributed and the amount specified in 

the approval letter. If the RAPP 

Participant’s required contribution is 

specified as a percentage of the total 

amount reimbursed by the CCC and the 

RAPP Participant does not provide a 

dollar amount of contributions 

sufficient to achieve the specified 

percentage, then the RAPP Participant 

may either return to the CCC the amount 

of funds reimbursed by the CCC to 

increase its actual contribution 

percentage to the required level or pay 

to the CCC in U.S. dollars the difference 

between the amount actually 

contributed and the amount of funds 

necessary to increase its actual 

contribution percentage to the required 

level. A RAPP Participant shall remit 

such payment within six months after 

the expiration date shown in the RAPP 

Participant’s program agreement. The 

RAPP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance, in 

writing, by the CCC. 

§ 1489.25 Submissions. 

For all permissible methods of 

delivery, submissions required by this 

part shall be deemed submitted as of the 

date received by the CCC. 

§ 1489.26 Disclosure of program 

information. 

(a) Documents submitted to CCC by 

RAPP Participants are subject to the 

provisions of the Freedom of 

Information Act (FOIA), 5 U.S.C. 552, 

and 7 CFR part 1, subpart A, specifically 

§ 1.12. 

(b) Any research conducted by a 

RAPP Participant pursuant to a RAPP 

program agreement and/or approval 

letter shall be subject to the provisions 

relating to intangible property in 2 CFR 

part 200. 

§ 1489.27 Ethical conduct. 

(a) A RAPP Participant shall conduct 

its business in accordance with the laws 

and regulations of the country in which 

an activity is carried out and in 

accordance with applicable U.S. 

Federal, State, and local laws and 

regulations. A RAPP Participant shall 

conduct its business in the United 

States in accordance with applicable 

Federal, State, and local laws and 

regulations. All RAPP Participants must 

comply with the regulations in 2 CFR 

part 200 and this part. 

(b) Except for a U.S. agricultural 

cooperative or a U.S. for-profit entity, 

neither a RAPP Participant nor its 

affiliates shall make export sales of 

eligible commodities covered under the 

terms of the applicable RAPP 

agreement. Nor shall such entities 

charge a fee for facilitating an export 

sale. A RAPP Participant may, however, 

collect check-off funds and membership 

fees that are required for membership in 

the RAPP Participant. For the purposes 

of this paragraph (b), affiliate means any 

partnership, association, company, 

corporation, trust, or any other such 

party in which the Participant has an 

investment other than in a mutual fund. 

(c) A RAPP Participant shall not limit 

participation in its RAPP activities to 

members of its organization. 

Participants shall ensure that their 

RAPP-funded programs and activities 

are open to all otherwise qualified 

individuals and entities on an equal 

basis and without regard to any nonmerit factors. The RAPP Participant 

shall publicize its program and make 

participation possible for commercial 

entities throughout the relevant 

commodity sector or, in the case of 

SRTGs, throughout the corresponding 

region. This includes providing to such 

commercial entities, upon request, a 

copy of any document in its possession 


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or control containing market 

information developed and produced 

under the terms of its RAPP agreement. 

The Participant may charge a fee not to 

exceed the costs for assembling, 

duplicating and distributing the 

materials. This paragraph (c) does not 

apply to any U.S. agricultural 

cooperative when implementing its own 

brand program. 

(d) A RAPP Participant shall select 

U.S. agricultural industry 

representatives to participate in generic 

RAPP activities such as trade teams, 

sales teams, and trade fairs based on 

criteria that ensure participation on an 

equitable basis by a broad cross section 

of the U.S. industry. If requested by the 

CCC, a RAPP Participant shall submit 

such selection criteria to the CCC for 

approval. 

(e) All RAPP Participants should 

endeavor to ensure fair and accurate 

fact-based advertising. Deceptive or 

misleading promotions may result in 

cancellation or termination of a 

Participant’s RAPP agreement and the 

recovery of CCC funds related to such 

promotions from the Participant. 

(f) The RAPP Participant must report 

any actions or circumstances that may 

have a bearing on the propriety of its 

RAPP program to the appropriate 

Attache ́/Counselor, and its U.S. office 

shall report such actions or 

circumstances in writing to the CCC. 

§ 1489.28 Contracting procedures. 

(a) Neither the CCC nor any other 

agency of the U.S. Government nor any 

official or employee of the CCC, FAS, 

USDA, or the U.S. Government has any 

obligation or responsibility with respect 

to RAPP Participant contracts with third 

parties. 

(b) A RAPP Participant shall comply 

with the procurement standards set 

forth in paragraphs (c) through (e) of 

this section when procuring goods and 

services and when engaging in 

construction to implement program 

agreements. 

(c) Each RAPP Participant shall 

establish contracting procedures, for 

contracts that are funded, in whole or in 

part, with RAPP funds, that are open, 

fair, and competitive. 

(d) Each RAPP Participant shall 

submit to the CCC, for CCC approval, 

written contracting guidelines for 

contracts that are funded, in whole or in 

part, with RAPP funds. The CCC will 

notify all new and existing RAPP 

Participants in writing in each 

Participant’s approval letter and through 

the FAS website as to applicable 

submission dates for and dates for 

approvals of contracting guidelines. The 

CCC’s approval of such contracting 

guidelines will remain in place until the 

CCC retracts its approval in writing, or 

until new guidelines are approved that 

supersede them. Once approved by the 

CCC, these contracting guidelines shall 

govern all of a Participant’s RAPPfunded contracting involving contracts 

with a minimum annual value that CCC 

will determine and announce in writing 

to all RAPP Participants via a RAPP 

notice issued on the FAS website. The 

CCC may, from time to time, set a 

different minimum value. In that case, 

the CCC will announce the new amount 

in writing to all RAPP Participants via 

a RAPP notice issued on the FAS 

website. The guidelines shall indicate 

the method for evaluating proposals 

received for all contract competitions, 

the method for monitoring and 

evaluating performance under contracts, 

and the method for initiating corrective 

action for unsatisfactory performance 

under contracts. The RAPP Participant 

may modify and resubmit these 

guidelines for re-approval at any time. 

In addition to the requirements in 2 CFR 

part 200, these guidelines shall include, 

at a minimum, the following: 

(1) Procedures for developing and 

publicizing requests for proposals, 

invitations for bids, and similar 

documents that solicit third party offers 

to provide goods or services. 

Solicitations for professional and 

technical services shall be based on 

clear and accurate descriptions of and 

requirements related to the services to 

be procured. Such procedures must 

include a conflict-of-interest provision 

that states that no employee, officer, 

board member, or agent thereof of the 

RAPP Participant will participate in the 

review, selection, award or 

administration of a contract if a real or 

apparent conflict of interest would arise. 

Such a conflict would arise when an 

employee, official, board member, agent, 

or the employee’s, officer’s, board 

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

organization that employs or is about to 

employ any of the parties indicated in 

this paragraph (d)(1), has a financial or 

other interest in the firm selected for an 

award. Procedures shall provide that 

officers, employees, board members, 

and agents thereof shall neither solicit 

nor accept gratuities, favors, or anything 

of monetary value from contractors or 

subcontractors. Procedures shall also 

provide for disciplinary actions to be 

applied for violations of such standards 

by officers, employees, board members 

or agents thereof; 

(2) Procedures for reviewing 

proposals, bids, or other offers to 

provide goods and services. Separate 

procedures shall be developed for 

various situations, including, but not 

limited to: solicitations for highly 

technical services; solicitations for 

services that are not common in a 

specific market; solicitations that yield 

receipt of three or more bids; 

solicitations that yield receipt of fewer 

than three bids; 

(3) Requirements to conduct all 

contracting in an openly competitive 

manner. Individuals who develop or 

draft specifications, requirements, 

statements of work, invitations for bids, 

and/or requests for proposals for 

procurement of any goods or services, 

and such individuals’ families or 

partners, or an organization that 

employs or is about to employ any of 

the aforementioned, shall be excluded 

from competition for such procurement. 

RAPP Participants’ written contracting 

guidelines may detail special situations 

where the prohibitions in this 

subparagraph do not apply, such as in 

situations involving highly specialized 

technical services or situations where 

the services are not commonly offered 

in a specific market; 

(4) Requirements to perform and 

document in the procurement files some 

form of price or cost analysis, such as 

a comparison of price quotations to 

market prices or other price indicia, to 

determine the reasonableness of the 

offered prices in connection with every 

procurement action that is governed by 

the contracting guidelines; 

(5) Requirements to conduct an 

appropriate form of competition every 

three years on all multi-year contracts 

that are governed by the contracting 

guidelines. However, contracts for incountry representation are not required 

to be re-competed after the initial 

award. Instead, the performance of incountry representation must be 

evaluated and documented by the RAPP 

Participant annually to ensure that the 

terms of the contract are being met in a 

satisfactory manner; and 

(6) Requirements for written contracts 

with each provider of goods, services, or 

construction work. Such contracts shall 

require such providers to maintain 

adequate records to account for funds 

provided to them by the RAPP 

Participant. 

(e) A RAPP Participant may undertake 

RAPP promotional activities directly or 

through a domestic or foreign third 

party. However, the RAPP Participant 

shall remain responsible and 

accountable to the CCC for all RAPP 

promotional activities and related 

expenditures undertaken by such third 

party and shall be responsible for 

reimbursing CCC for any funds that CCC 

determines should be refunded to the 

CCC in relation to such third party’s 

promotional activities and expenditures. 


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1 12 U.S.C. 248(k). 

§ 1489.29 Property standards. 

The RAPP Participant shall insure all 

RAPP-funded property and equipment 

acquired in furtherance of program 

activities and safeguard such against 

theft, damage and unauthorized use. 

The Participant shall promptly report 

any loss, theft, or damage of property to 

the insurance company. 

§ 1489.30 Anti-fraud requirements. 

(a) All RAPP Participants. (1) All 

RAPP Participants shall submit to the 

CCC for approval a detailed fraud 

prevention program. The CCC will 

notify all new and existing RAPP 

Participants in writing in each 

Participant’s approval letter and through 

the FAS website as to applicable 

submission dates for and dates for 

approvals of fraud prevention programs. 

RAPP Participants should review their 

fraud prevention programs annually. 

The fraud prevention program shall, at 

a minimum, include an annual review 

of physical controls and weaknesses, a 

standard process for investigating and 

remediation of suspected fraud cases, 

and training in risk management and 

fraud detection for all current and future 

employees. The RAPP Participant shall 

not conduct or permit any RAPP 

promotion activities to occur unless and 

until the CCC has communicated in 

writing approval of the RAPP 

Participant’s fraud prevention program. 

(2) The RAPP Participant, within five 

business days of receiving an allegation 

or information giving rise to a 

reasonable suspicion of 

misrepresentation or fraud that could 

give rise to a claim by CCC, shall report 

such allegation or information in 

writing to such USDA personnel as 

specified in the Participant’s RAPP 

program agreement and/or approval 

letter. The RAPP Participant shall 

cooperate fully in any USDA 

investigation of such allegation or 

occurrence of misrepresentation or 

fraud and shall comply with any 

directives given by the CCC or USDA to 

the RAPP Participant for the prompt 

investigation of such allegation or 

occurrence. 

(b) RAPP Participants with brand 

programs. (1) The RAPP Participant may 

charge a fee to brand participants to 

cover the cost of the fraud prevention 

program. 

(2) The RAPP Participant shall repay 

to the CCC funds paid to a brand 

participant through the RAPP 

Participant on claims that the RAPP 

Participant or the CCC subsequently 

determines are unauthorized or 

otherwise non-reimbursable expenses 

within 30 days of the RAPP 

Participant’s determination or CCC’s 

disallowance. The RAPP Participant 

shall repay CCC by submitting a check 

to CCC or by offsetting the RAPP 

Participant’s next reimbursement claim. 

The RAPP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance by CCC. 

A RAPP Participant operating a brand 

program in strict accordance with an 

approved fraud prevention program, 

however, will not be liable to reimburse 

CCC for RAPP funds paid on such 

claims if the claims were based on 

misrepresentations or fraud of the brand 

participant, its employees or agents, 

unless the CCC determines that the 

RAPP Participant was grossly negligent 

in the operation of the brand program 

regarding such claims. The CCC shall 

communicate any such determination to 

the RAPP Participant in writing. 

§ 1489.31 Program income. 

Any revenue or refunds generated 

from an activity, e.g., participation fees, 

proceeds of sales, refunds of value 

added taxes (VAT), the expenditures for 

which have been wholly or partially 

reimbursed with RAPP funds, shall be 

used by the RAPP Participant in 

furtherance of its approved RAPP 

activities in the budget period during 

which the RAPP funds are available for 

obligation by the RAPP Participant. The 

use of such revenue or refunds shall be 

governed by this part. Interest earned on 

funds advanced by the CCC is not 

program income. 

§ 1489.32 Amendment. 

A program agreement may be 

amended in writing with the written 

consent of the CCC and the RAPP 

Participant. 

§ 1489.33 Noncompliance with an 

agreement or this part. 

If a RAPP Participant fails to comply 

with any term in its program agreement 

or approval letter, or this part, the CCC 

may take one or more of the 

enforcement actions in 2 CFR part 200 

and, if appropriate, initiate a claim 

against the RAPP Participant, following 

the procedures set forth in this part. The 

CCC may also initiate a claim against a 

RAPP Participant if program income or 

CCC-provided funds are lost due to an 

action or omission of the RAPP 

Participant. 

§ 1489.34 Suspension, termination, and 

closeout of agreements. 

A program agreement may be 

suspended or terminated in accordance 

with the suspension and termination 

procedures in 2 CFR part 200. If an 

agreement is terminated, the applicable 

regulations in 2 CFR part 200 will apply 

to the closeout of the agreement. 

§ 1489.35 Paperwork reduction 

requirements. 

The paperwork and record keeping 

requirements imposed by this part have 

been approved by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995. 

The control number for this information 

collection is 0551–0049. 

Marcus Graham, 

Acting Executive Vice President, Commodity 

Credit Corporation. 

[FR Doc. 2023–25015 Filed 11–16–23; 8:45 am] 

BILLING CODE 3410–10–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 265 

[Docket No. R–1778] 

RIN No. 7100–AG37 

Rules Regarding Delegation of 

Authority 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Final rule; correcting 

amendments. 

SUMMARY: The Board is revising its 

Rules Regarding Delegation of Authority 

to add delegations of authority 

previously approved by the Board and 

make certain technical corrections. 

DATE: Effective November 17, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Andrew Hartlage, Special Counsel, (202) 

452–6483; Amory Goldberg, Senior 

Counsel, (202) 452–3124; or Leah Kazar, 

Legal Assistant/Attorney, (202) 452– 

4638, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th Street and Constitution 

Avenue NW, Washington, DC 20551. 

For users of TTY–TRS, please call 711 

from any telephone, anywhere in the 

United States. 

SUPPLEMENTARY INFORMATION: Section 

11(k) of the Federal Reserve Act 

authorizes the Board to delegate, by 

published order or rule and subject to 

the Administrative Procedure Act, any 

of its functions, other than those related 

to rulemaking or pertaining principally 

to monetary and credit policies, to one 

or more administrative law judges, 

members or staff of the Board, or the 

Reserve Banks.1 The Board has 

delegated authority to Board members 

(in their individual capacity and as 

chairs of committees of the Board), 

Board staff, and the Federal Reserve 

Banks to take certain actions under the 

various statutes that the Board 


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