29474 Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1485 

RIN 0551–AA72 

Market Access Program 

AGENCY: Foreign Agricultural Service 

and Commodity Credit Corporation, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule revises and 

amends the regulation used to 

administer the Market Access Program 

(MAP) by updating and merging the 

application requirements and the 

activity plan requirements to reflect the 

Unified Export Strategy (UES) system 

currently in place; clarifying the 

eligibility of activities designed to 

address international market access 

issues; modifying the list of eligible and 

ineligible contributions; revising the 

portions of the regulation regarding 

evaluations, contracting procedures, and 

the compliance review and appeals 

process; eliminating the Export 

Incentive Program/Market Access 

Program (EIP/MAP) as a separate 

subcomponent; and making other 

administrative changes for clarity and 

program integrity. This final rule adopts 

the substantive provisions of the 

proposed rule published September 8, 

2009, revising and amending MAP 

regulations, with changes made to 

reflect public comments to the proposed 

rule. 

DATES: Effective Date: This rule is 

effective May 17, 2012. Applicability 

Date: This regulation will become 

applicable for each MAP participant at 

the beginning of the MAP participant’s 

2013 program year (i.e., 01/01/2013 or 

07/01/2013). 

FOR FURTHER INFORMATION CONTACT: 

Mark Slupek, 202–720–1169, U.S. 

Department of Agriculture, Foreign 

Agricultural Service, Office of Trade 

Programs, Program Operations Division, 

Portals Office Building, Suite 400, 1250 

Maryland Avenue SW., Washington, DC 

20024; or by phone: (202) 720–4327; or 

by fax: (202) 720–9361; or by email: 

podadmin@fas.usda.gov. 

The U. S. Department of Agriculture 

(USDA) prohibits discrimination in its 

programs on the basis of race, color, 

national origin, sex, religion, sexual 

orientation, age, disability, political 

beliefs and marital or familial status. 

(Not all prohibited bases apply to all 

programs.) Persons with disabilities 

who require alternative means for 

communication of program information 

(braille, large print, audiotape, etc.) 

should contact the USDA TARGET 

Center at (202) 720–2600 (Voice and 

TDD). 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This rule is issued in conformance 

with Executive Order 12866. It has been 

determined to be not significant for the 

purposes of Executive Order 12866 and 

was not reviewed by the Office of 

Management and Budget. A cost-benefit 

assessment of this rule was not 

completed. 

Executive Order 12988 

This rule has been reviewed in 

accordance with Executive Order 12988. 

This rule does not preempt State or 

local laws, regulations, or policies 

unless they present an irreconcilable 

conflict with this rule. This rule would 

not be retroactive. 

Executive Order 12372 

This program is not subject to 

Executive Order 12372, which requires 

intergovernmental consultation with 

State and local officials. See the notice 

related to 7 CFR part 3015, subpart V, 

published at 48 FR 29115 (June 24, 

1983). 

Executive Order 13175 

This rule does not have tribal 

implications as specified by Executive 

Order 13175 (65 FR 67249, November 9, 

2000) that will preempt Tribal law. 

Executive Order 13132 

This rule does 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, nor does this rule 

impose substantial direct compliance 

costs on State and local governments. 

Therefore, consultation with the States 

was not required. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule because 

Commodity Credit Corporation (CCC) is 

not required by 5 U.S.C. 553 or any 

other law to publish a notice of 

proposed rulemaking with respect to the 

subject matter of the rule. 

Environmental Assessment 

CCC has determined that this rule 

does not constitute a major State or 

Federal action that would significantly 

affect the human or natural 

environment. Consistent with the 

National Environmental Policy Act 

(NEPA), no environmental assessment 

or environmental impact statement will 

be prepared. 

Unfunded Mandates 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) does not 

apply to this rule because it does not 

impose any enforceable duty or contain 

any unfunded mandate as described 

under the UMRA. 

Paperwork Reduction Act of 1995 

In accordance with the Paperwork 

Reduction Act of 1995, FAS has 

previously received approval from OMB 

with respect to the information 

collection required to support this 

program. The information collection is 

described below: 

Title: Foreign Market Development 

Program (FMD) and Market Access 

Program (MAP); OMB Control Number: 

0551–0026. 

The current OMB approval of this 

information collection is scheduled to 

expire on August 31, 2012. 

Consequently, CCC will submit a 

request to OMB under the Paperwork 

Reduction Act (PRA), 44 U.S.C. 3501 et 

seq., for the continued use of this 

information collection. CCC’s request 

will reflect changes to the new 

paperwork collection requirements that 

were made in the final rule in response 

to public comments. A separate Notice 

of Request for Extension and Revision of 

Currently Approved Information 

Collection for the Market Access 

Program will be published in the 

Federal Register for comment. 

E-Government Act Compliance 

CCC is committed to complying with 

the E-Government Act to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services and for other purposes. The 

forms, regulations, and other 

information collection activities 

required to be utilized by a person 

subject to this rule are available at: 

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

Background 

Section 203 of the Agricultural Trade 

Act of 1978, as amended, directs CCC to 

carry out a program to encourage the 

development, maintenance, and 

expansion of commercial export markets 

for agricultural commodities through 

cost-share assistance to eligible trade 

organizations. Such assistance may be 

provided in the form of CCC funds or 

CCC-owned commodities. 

Since the inception of the MAP, CCC 

has monitored the program closely, 

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Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 29475 

strengthened program controls, and 

implemented changes to improve the 

effectiveness of the program. In 

administering the program, CCC is 

committed to ensuring efficient and 

effective use of public funds. In this 

regard, CCC considers an applicant’s 

need for Federal financial assistance, an 

applicant’s use of rigorous performance 

measurements in its plans, and 

increasing contribution levels from 

Participants as important factors in the 

overall management of the MAP. 

Summary and Analysis of Comments 

On May 23, 2007, the CCC published 

an advance notice of proposed 

rulemaking and public hearing in the 

Federal Register (72 FR 28901). This 

notice was intended to solicit comments 

on whether to amend and revise the 

current MAP regulations. In addition, 

CCC held a public hearing on July 25, 

2007, to receive oral and written 

comments. 

On September 8, 2009 (74 FR 46027), 

a proposed rule was published 

governing the operations of MAP. 

CCC received nearly 1,300 comments 

from nonprofit U.S. trade associations, 

U.S. companies, state organizations, 

regional trade associations, Participants, 

and consulting firms in response to the 

proposed rule. Following is a summary 

of the comments that specifically 

address the proposed rule and CCC’s 

responses to these comments. General 

comments relating to the value of the 

program, editorial suggestions, and nonsubstantive comments have been 

omitted. 

Sec. 1485.10 General Purpose & Scope 

Policy Clarifications 

CCC received 164 comments on this 

section. 

Comment: Nineteen respondents 

expressed their concern with regard to 

whether previous policy clarifications 

will remain in effect or if the new MAP 

regulation will supersede the policy 

clarifications currently in effect. The 

respondents asked for clarification on 

this and stated that if previous policy 

clarifications remain in effect, that the 

notices should be incorporated into the 

new regulation. 

Response: CCC understands that the 

commenters are referring to the ‘‘Market 

Access Program notices’’ available at 

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

mnotice.html. CCC issues these MAP 

notices for informational purposes. 

These notices have no legal effect. They 

are intended to alert MAP Participants 

of various aspects of CCC’s 

administration of the MAP program. For 

example, CCC issues MAP notices to 

alert MAP Participants of procedures for 

requesting advances, applicable federal 

pay scale rates, lists of economic and 

trade sanctions against certain foreign 

countries, reporting formats and 

computer codes to use with the UES. 

The content of some MAP notices 

were already codified in the proposed 

rule. In response to the commenters, 

CCC has incorporated into the final rule 

several additional MAP notices that 

CCC has judged to be more substantive 

in nature. Those MAP notices that have 

been so codified will be deleted from 

the FAS Web site. 

CCC will remove certain other of the 

remaining MAP notices that are now 

obsolete or inconsistent with the final 

rule before or concurrent with the final 

rule’s effective date. The remaining 

MAP notices will continue to be 

available on the Web site for 

informational purposes and reflect 

details related to CCC’s current 

administration of the MAP program. 

Comment: One respondent stated that 

although domestic travel is not 

addressed in the new MAP regulation, 

this is one area with respect to which a 

policy clarification exists. Fourteen 

additional comments were made 

regarding E-ticketing and internet 

purchasing of tickets (not through a 

travel agency). The respondents stated 

that this is an area that was previously 

covered by a policy clarification but is 

not covered in the new regulation; so 

the question whether previous policy 

clarifications will remain in effect or if 

the new MAP regulation will supersede 

the policy clarifications applies here as 

well. 

Response: Domestic travel was 

addressed in a limited fashion in the 

proposed rule at § 1485.17(c)(25), which 

would have allowed, inter alia, 

reimbursement, solely in connection 

with generic promotion, only of 

domestic travel expenditures associated 

with meetings of international 

organizations conducted in the United 

States. In response to the comment, 

however, CCC has addressed domestic 

travel more extensively in several new 

subsections of § 1485.17(c). 

New § 1485.17(c)(24) lays out the 

conditions under which domestic travel 

related to international retail, trade and 

consumer exhibits and shows 

conducted in the United States can be 

reimbursed. 

New § 1485.17(c) (25) allows 

reimbursement for domestic travel for 

seminars and educational training 

conducted in the United States. 

New § 1485.17(c) (26) allows 

reimbursement of domestic travel 

expenditures of certain individuals 

accompanying foreign trade missions or 

technical teams while traveling in the 

United States. This change codifies 

MAP Notice 06–002. MAP Notice 06– 

002 will be removed from FAS’ Web 

site. 

CCC has decided to eliminate the 

provision allowing reimbursement of 

domestic travel expenditures for a MAP 

Participant’s attendance at meetings of 

international technical organizations 

when such meetings are conducted in 

the United States. 

These provisions are discussed in 

more detail in a later response. 

Domestic travel expenditures are not 

reimbursable for brand promotion 

activities. 

The comments regarding E-ticketing 

and internet purchase of tickets appear 

to refer to MAP Notice 02–004. This 

notice reminds MAP Participants that 

the reimbursement of allowable travel 

expenses when using E-Tickets is 

subject to the availability of sufficient 

documentation to support the expenses, 

as is the case with all travel expenses. 

The notice provides examples of 

information that such documentation 

must include, such as the complete 

routing codes (i.e., layover and flight 

information for each segment of a trip in 

which a change of airplane or flight 

designation is made) and the fare 

amount charged (i.e., point-to-point 

faring). The notice also informs MAP 

Participants that reimbursable travel 

expenditures include associated 

reasonable and common fees that travel 

agents or other ticketing sources may 

charge for providing E-Ticket itineraries, 

invoices and/or receipts. The MAP final 

rule now sets broad guidance on the 

reimbursement of a MAP Participant’s 

domestic travel. CCC believes the final 

rule’s provisions provide sufficient 

guidance to MAP Participants and does 

not believe it necessary to codify MAP 

Notice 02–004’s explanation of the 

particulars of program administration. 

MAP Notice 02–004 shall remain on the 

FAS Web site for informational 

purposes. 

Comment: Six respondents asked for 

further clarification on the types of 

activities in the U.S. that are 

reimbursable. 

Response: In response to the 

comments, CCC has made a clarification 

to § 1485.10(c) that, to be reimbursable, 

all activities that occur in the United 

States must develop, maintain, or 

expand the commercial export market 

for the relevant U.S. agricultural 

commodity in accordance with the MAP 

Participant’s approved MAP program. 

Comment: Fourteen respondents 

recommended that the threshold in the 

regulations for Miscellaneous/Fixed 

Asset Category be raised to $500 and 

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29476 Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 

proposed that software be subject to the 

same threshold as fixed assets. 

Response: These comments refer to a 

threshold in § 1485.23(d)(2) of the 

current MAP regulations. This provision 

was not included in the proposed rule 

and is not included in the final rule. 

Section 1485.30 of the MAP final rule 

provides the final property standards for 

the program. In addition, MAP 

Participants are subject to the applicable 

property management standards 

described in 7 CFR Parts 3015, 3016 and 

3019, depending on the nature of the 

MAP Participant organization. 

Comment: One respondent stated 

more flexibility is needed for electronic 

communications, which are becoming a 

more important part of the marketing 

mix for Participants, both branded and 

generic. 

Response: CCC believes that the 

flexibility provided in § 1485.17(b)(1) 

and § 1485.17(b)(16) is adequate. 

Comment: Fourteen respondents 

stated that FAS refers to miscellaneous 

communications devices in the new 

regulations but did not address their 

usage costs and asked for clarification 

on whether these costs were 

reimbursable. 

Response: CCC believes the 

reimbursement of the usage costs of 

various communications devices is 

already addressed by the various 

provisions in the MAP final rule. 

Reimbursement of such communication 

costs depends on the circumstances 

under which the communication took 

place. For example, where usage costs of 

communications devices are incurred by 

the MAP Participant’s U.S. offices and 

staff, those costs are not reimbursable 

pursuant to § 1485.16(c) and 

§ 1485.17(d)(26). If usage costs of 

communications devices are incurred 

while on eligible international or 

domestic travel for approved MAP 

brand or generic promotion activities 

and are allowed under the U.S. Federal 

Travel Regulations (41 CFR Parts 301 

through 304), they are potentially 

reimbursable as international or 

domestic travel expenditures under the 

circumstances laid out in the applicable 

provisions in § 1485.17(b) and (c). If 

usage costs of communications devices 

are incurred as part of the organization 

costs for a MAP Participant’s overseas 

office approved in its MAP program 

agreement and such communications 

originate overseas, § 1485.17(c)(11) 

provides that such communications 

costs are reimbursable for generic 

promotions so long as the expenditure 

was made in furtherance of an approved 

activity. Thus, the monthly service 

charge for a caller usage plan with 

unlimited minutes that is incurred 

primarily in furtherance of an approved 

activity would be fully reimbursed 

under MAP. In contrast, under a caller 

usage plan that charges by the minute, 

only charges for calls incurred in 

furtherance of an approved activity 

would be reimbursed under MAP. 

Section 1485.11 Definitions 

CCC received 153 comments on this 

section. In response to the comments, 

CCC has edited the definitions as set 

forth below. In addition, CCC has made 

minor clarifications to the definitions of 

‘‘contribution,’’ ‘‘program year,’’ 

‘‘SRTG,’’ and ‘‘supergrade.’’ CCC has 

also included a new definition for 

‘‘product samples.’’ This definition now 

codifies MAP Notice 11–003, and MAP 

Notice 11–003 will be removed from 

FAS’ Web site. Finally, CCC has added 

a new definition for MAP Notice in the 

MAP final rule. 

Comment: One respondent 

recommended that the generic 

promotions be defined more broadly as 

‘‘using U.S. commodities from multiple 

U.S. suppliers or in cases where only 

one U.S. supplier is selected to supply 

the commodity in question, that 

multiple U.S. suppliers had the 

opportunity to submit bids or compete 

for the business.’’ This respondent 

stated that as long as multiple U.S. 

companies had the opportunity to 

compete for that business, it believed 

promotions with these companies 

should be considered generic. Another 

respondent commented that a generic 

promotion should not be required to 

support at least two brands since this is 

difficult when a retailer carries only 

one. 

Response: CCC disagrees with the 

respondents’ comments suggesting that 

a generic promotion not be required to 

support at least two brands, particularly 

in the case raised by the respondent, in 

which a single company has been 

competitively selected over other 

bidders. 

For clarity, CCC has moved the 

substance of proposed § 1485.17(d), 

defining what may be considered a 

generic promotion activity, from the 

section on MAP ‘‘Reimbursement rules’’ 

to the definition of ‘‘generic promotion’’ 

in § 1485.11. Original subsections (e), 

(f), (g), (h), (i), (j), and (k) in § 1485.17 

have been re-designated as (d), (e), (j), 

(f), (g), (h), and (i), respectively. 

Comment: Fourteen respondents 

recommended adding or clarifying 

definitions for the following terms: 

Advertising, audits, contractors, direct 

promotional costs, employees, foreign 

brand, negative comparison, overhead 

costs, representative, small purchase 

threshold, and theme. 

Response: CCC disagrees with the 

respondents in regard to the need for 

additional definitions of these terms, 

except that it has further clarified the 

terms ‘‘foreign brand’’ and ‘‘theme.’’ The 

definition of ‘‘generic promotion’’ now 

refers to a foreign brand as ‘‘a brand 

owned primarily by foreign interests 

and being used to market a commodity 

or product in a foreign market.’’ 

Similarly, the definition of ‘‘generic 

promotion’’ refers to the concept of a 

‘‘unified theme’’ as ‘‘a dominant idea or 

motif.’’ CCC has removed the term 

‘‘negative comparison’’ from that 

definition in response to a different 

comment. 

Comment: Fourteen respondents 

questioned the definition of audits. 

They stated that audits are mentioned in 

at least three places with seemingly 

contradictory provisions. 

Response: CCC notes the MAP final 

rule does not define ‘‘audit.’’ However, 

CCC does not believe it is necessary to 

define this term, as CCC views this term 

as generally understood. In response to 

the comments, however, CCC agrees that 

the use of the term ‘‘audit’’ in 

§ 1485.21(d)(7) is confusing and has 

replaced the term ‘‘audit’’ with the term 

‘‘compliance review’’ in § 1485.21(d)(7). 

Comment: Fourteen respondents 

commented that the use of 

representatives (branded) in the phrase 

‘‘no more than two representatives of a 

single brand participant to exhibit their 

company’s products at a foreign trade 

show’’ implied that these individuals 

have to be employees of the brand (as 

in § 1485.17(b)(7)). These respondents 

suggested that this definition be 

expanded to include others associated 

with the brand such as distributors, 

consultants, etc. 

Response: CCC agrees with the 

respondents. CCC has modified this 

section (now § 1485.17(b)(8)) to expand 

the list of eligible representatives to 

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. CCC 

notes that MAP Notice 99–003 is now 

obsolete and will be removed from FAS’ 

Web site. 

Comment: Sixteen respondents 

commented that the proposed definition 

for ‘‘notifications’’ has veered from the 

original purpose for notifications, which 

is to notify CCC of significant changes 

to the MAP Participant’s strategic plan. 

The respondents asked FAS to clarify 

the definition of notifications and stated 

the proposed rule would be burdensome 

to the Participants. 

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Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 29477 

Response: CCC agrees with the 

commenters. Instead of changing the 

definition of ‘‘notification,’’ however, 

CCC has modified § 1485.14(i) to change 

when notifications will be required. 

Notifications are now required only if a 

MAP Participant wishes to conduct an 

entirely new activity or if the 

Participant wishes to increase the 

funding level for existing, approved 

activities by more than $25,000 or 25%, 

whichever is greater. A MAP Participant 

may make significant adjustments below 

that threshold without prior notification 

to CCC, but must still submit a 

notification alerting CCC of such 

adjustments no later than 30 days after 

the change. Finally, CCC has clarified 

that minor adjustments to existing, 

approved activities and/or funding 

levels do not require notification. 

Comment: Three respondents 

recommended that the definition of a 

small-sized entity be expanded for the 

program by establishing the size 

eligibility standard to one not exceeding 

150 percent of the current Small 

Business Administration guidelines. 

The respondents stated that this 

recommendation would better align the 

definition with the actual practice in the 

food processing industry. 

Response: CCC disagrees. CCC 

believes it is consistent with the 

Administration’s National Export 

Initiative to maintain the same 

definition of small business as the Small 

Business Administration. 

Comment: Fourteen respondents 

suggested the phrase, ‘‘online to MAP 

and any other USDA market promotion 

program * * *’’ in the ‘‘UES Web site’’ 

definition be changed to ‘‘* * * and 

any other USDA market development 

program * * *’’ which is more accurate 

and the terminology used in the 

subsequent definition of the Unified 

Export Strategy (UES). 

Response: CCC agrees with the 

respondents and has changed the final 

rule accordingly. In addition, CCC has 

added an explicit reference to the MAP 

program to the end of the definition. 

Comment: One comment was received 

recommending each definition be given 

an identifying number or letter so that 

it is easier to indicate which definition 

is being discussed. 

Response: CCC disagrees. CCC 

believes that providing the definitions 

alphabetically is adequate for 

identifying definitions. 

Comment: Three respondents stated 

that because ‘‘brand participant’’ is 

defined in the proposed regulation to 

mean only U.S. agricultural 

cooperatives that are ‘‘participating in 

the MAP brand promotion of another 

MAP Participant,’’ the proposed rule 

does not appear to allow a cooperative 

to apply for funds to run its own brand 

program. Therefore, they requested that 

§ 1485.11 (brand participant) and 

§ 1485.13(a) be clarified to make it clear 

that cooperatives will continue to be 

eligible to apply directly for a brand 

promotion program. 

One respondent stated that currently 

cooperatives are allowed to contract 

directly with FAS to participate in the 

MAP program to promote the brand that 

their farmers have developed, own and 

use, to maximize their returns. This 

respondent stated that it should be 

allowed to continue to do so, as this was 

what Congress intended. 

One respondent stated that the 

reference to ‘‘participating in the brand 

promotion program of another MAP 

Participant’’ does not always apply and 

should be deleted from the definition. 

Response: CCC agrees with these 

comments and has clarified these 

sections. CCC has modified the 

definition of ‘‘brand participant’’ to 

make clear that the term does not 

include any agricultural cooperatives 

that are MAP Participants that apply for 

MAP funds to implement their own 

brand programs. CCC has also modified 

the definition of ‘‘brand promotion’’ to 

include U.S. agricultural cooperatives’ 

promotion of their own brand in their 

own brand program. CCC has also 

modified § 1485.15 to delete the phrase 

‘‘third party’’ before ‘‘brand 

participants’’ as redundant, since the 

definition of brand participant clearly 

refers to third parties and not the MAP 

Participant. CCC has also modified 

§ 1485.17(b)(7) (now § 1485.17(b)(8)) to 

make clear that the travel expenses of 

representatives of MAP Participants, 

including U.S. agricultural cooperatives 

running their own brand programs, at 

brand promotions at trade shows are 

also reimbursable. Finally, CCC has 

modified § 1485.15(d) to refer to 

‘‘entity’’ instead of ‘‘company’’ in noting 

that MAP Participants may not provide 

assistance to a single entity for brand 

promotion in a single country for more 

than 5 years. 

Comment: One respondent stated that 

the proposed definition of ‘‘foreign third 

party’’ implies that the MAP Participant 

can select a qualified foreign third party 

with whom to work. The commenter 

stated if the proposed definition intends 

to imply that FAS must give approval of 

foreign third parties with whom 

Participants work, then it must be 

deleted. 

Response: It is not CCC’s intention 

that CCC would review or approve 

foreign third parties with whom 

Participants wish to work. CCC has 

clarified this definition accordingly to 

state that a foreign third party is a 

foreign entity with whom a MAP 

Participant works to promote the export 

of a U.S. agricultural commodity under 

the MAP program. 

Comment: Three respondents 

commented that in light of the 

continued development of agricultural 

products for non-food use, they 

proposed that this rule be amended to 

insert ‘‘non-durable’’ between ‘‘and 

any’’ and ‘‘product thereof, excluding 

tobacco.’’ 

Response: CCC disagrees with the 

respondents’ suggestion, as the change 

would unnecessarily limit the scope of 

the program. CCC has modified the 

definition of ‘‘U.S. agricultural 

commodity’’ to preserve the scope of the 

program as covering all agricultural 

commodities, regardless of the type of 

use to which the agricultural product is 

put. The definition of U.S. agricultural 

commodity now refers to ‘‘any 

agricultural commodity, including any 

food, feed, fiber, forestry product, 

livestock, or insect of U.S. origin or fish 

* * *’’ 

Sec. 1485.12 Participation Eligibility 

CCC received 2 comments on this 

section. 

Comment: One respondent stated the 

current MAP regulations allow U.S. 

agricultural cooperatives to be a MAP 

Participant. The proposed rule retained 

this eligibility but qualified ‘‘U.S. 

agricultural cooperative’’ with the term 

‘‘nonprofit.’’ The respondent 

commented that its understanding is 

that the term ‘‘nonprofit’’ in § 1485.12(c) 

and elsewhere in the proposed 

regulations is not intended to change 

the eligibility of cooperatives that are 

currently participating in MAP and 

which are considered ‘‘nonprofit’’ in the 

sense that they are entitled to tax 

treatment afforded by Subchapter T of 

the Internal Revenue Code Section 1381. 

The respondent requested that FAS 

confirm that ‘‘a nonprofit U.S. 

agricultural cooperative’’ as used in the 

proposed regulations includes U.S. 

agricultural cooperatives that are 

entitled to tax treatment afforded by 

Subchapter T of the Internal Revenue 

Code (IRC) Section 1381. 

Response: CCC confirms that U.S. 

agricultural cooperatives that are 

entitled to tax treatment afforded by 

Subchapter T of the IRC Section 1381 

are eligible to participate in the MAP 

program. CCC has deleted the term 

‘‘nonprofit’’ before ‘‘U.S. agricultural 

cooperative’’ as unnecessary and 

potentially confusing. CCC has also 

modified the definition of ‘‘brand 

participant’’ in § 1485.11 and 

§ 1485.12(c) and made conforming edits 

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29478 Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 

to § 1485.13 and § 1485.28(b) to delete 

the term ‘‘nonprofit.’’ 

Comment: One respondent stated its 

concern that the proposed regulation 

§ 1485.13(a) states that ‘‘applicants’’ 

may apply for the MAP program, but 

does not define the term ‘‘applicant.’’ 

The respondent was also concerned that 

§ 1485.12 uses the term ‘‘entities’’ to 

describe who can ‘‘participate’’ in the 

MAP, while § 1485.13(a) uses the term 

‘‘applicant.’’ The respondent was 

concerned that the two sections do not 

cross reference each other and that 

neither term is defined in § 1485.11 

‘‘Definitions.’’ The respondent also 

suggested the proposed regulations be 

revised as necessary to make clear that 

‘‘a nonprofit U.S. agricultural 

cooperative’’ is one of the four entities 

eligible to participate in MAP under 

§ 1485.12 and is also eligible to be an 

‘‘applicant’’ and apply directly for MAP 

under § 1485.13(a), including for its 

own brand promotion program. 

Response: CCC does not share the 

respondent’s concerns. CCC believes it 

is unnecessary to define the terms 

‘‘applicant’’ and ‘‘entity.’’ CCC believes 

that it is appropriate to use different 

terms in § 1485.13(a), which deals with 

those who actually apply to the program 

and therefore are ‘‘applicants,’’ and 

§ 1485.12, which deals with who, in 

theory, is eligible to apply. The MAP 

final rule is clear that to participate in 

the MAP, an entity must be one of four 

types of entities, one of which is a U.S. 

agricultural cooperative. Implicit in the 

concept of being ‘‘eligible’’ to 

participate in the MAP is the notion that 

eligible ‘‘entities’’ are also eligible to be 

‘‘applicants’’ to the program. 

Sec. 1485.13 Application Process 

CCC received 94 comments on this 

section. CCC’s responses are below. In 

addition, CCC has included new 

§ 1485.13(d) and (e) to comply with 

OMB regulations 2 CFR Part 25, 

‘‘Universal Identifier and Central 

Contractor Registration (CCR)’’ and 

2 CFR Part 170, ‘‘Reporting Subaward 

and Executive Compensation 

Information.’’ 2 CFR § 25.200 directs 

federal agencies to include in their 

regulations issued on or after September 

14, 2010 requirements that all 

applicants for federal financial 

assistance: (1) Be registered in the CCR 

prior to submitting an application or 

plan; (2) maintain an active CCR 

registration with current information at 

all times during which it has an active 

Federal award or an application or plan 

under consideration by an agency; and 

(3) provide its DUNS number in each 

application or plan it submits to the 

agency. Similarly, pursuant to 2 CFR 

§ 170.200(b), any regulations issued 

after September 14, 2010 and containing 

instructions for applicants of grants and 

cooperative agreements, among other 

assistance, must require applicants that 

do not qualify for an exception under 2 

CFR § 170.110(b) to have the necessary 

processes and systems in place to 

comply with Part 170’s reporting 

requirements if they receive funding. 

Comment: Two respondents stated 

that under the current MAP regulations 

a U.S. agricultural cooperative is eligible 

to be a MAP Participant and in that 

capacity to apply directly to CCC for the 

cooperative’s own brand promotion 

program. 

The respondents stated that the 

proposed regulation at § 1485.13(a) 

appears to unintentionally change this 

by providing in the fourth sentence that 

a MAP applicant (i.e., including a 

nonprofit U.S. agricultural cooperative) 

‘‘may apply to conduct a generic 

promotion program, a brand promotion 

program that provides MAP funds to 

brand participants for branded 

promotion, or both.’’ They requested 

that FAS confirm that a nonprofit U.S. 

agricultural cooperative that applies to 

CCC for its own brand promotion 

program would be considered a ‘‘MAP 

Participant,’’ not a ‘‘brand participant’’ 

since it would enter into a MAP 

agreement directly with CCC. 

Response: CCC agrees with the 

respondents. CCC did not intend to 

change this policy and has modified 

§ 1485.13(a) accordingly to explicitly 

state that an applicant who is a U.S. 

agricultural cooperative may also apply 

for funds to conduct its own brand 

promotion program. As noted 

previously, CCC has also clarified the 

definition of ‘‘brand participant’’ in 

§ 1485.11 to exclude from that 

definition any agricultural cooperatives 

that are MAP Participants that apply for 

MAP funds to implement their own 

brand programs. 

Comment: Twenty-one respondents 

submitted requests for FAS to clarify 

that electronic copies of applications are 

no longer required to be submitted 

through the UES system and only a hard 

copy is required to be sent. 

Response: CCC’s intent was not to 

imply that only a hard copy be sent. 

Applicants have always had a choice to 

submit either an electronic copy or a 

hard copy of their application. CCC 

believes the MAP final rule clearly 

maintains that choice, but encourages 

organizations to submit their 

applications through the UES system, 

because this format virtually eliminates 

paperwork and expedites the FAS 

processing, review, and reimbursement 

cycles. 

Comment: Twenty-one respondents 

questioned if the online version is still 

required, could it be submitted in a 

reasonably short time following the 

deadline? 

Response: No. Electronic applications 

may not be submitted after the deadline. 

CCC is required to publish a Notice of 

Funds Availability annually in the 

Federal Register. This notice provides 

60 days to submit applications either 

electronically or by hard copy. 

Applications are required to be 

submitted by the deadline that is 

published in the annual notice. 

Comment: Two respondents provided 

comments regarding 

§ 1485.13(a)(3)(i)(A) and 

§ 1485(a)(3)(i)(B). They stated they 

support the requirement that 

Participants submit a strategic plan; 

however, to reduce the complexity of 

the UES process, they recommended 

that the plan submission remain 

separate from the current UES process. 

Response: CCC disagrees. CCC will 

continue to approve applications that it 

considers to present the best 

opportunities for developing and 

expanding export markets for U.S. 

agricultural commodities. The strategic 

planning process is a critical part of the 

application and therefore must be 

provided within the UES process in 

order for the applications to be 

evaluated in a consistent and equitable 

manner. This is not a change from 

current practice. 

Comment: Sixteen respondents 

provided similar comments that stated 

that § 1485.13(a)(1)(i)(R) & (S) both 

appear to require that the applicant’s 

proposed contribution be stated in both 

dollar terms and as a percentage of CCC 

resources requested. They stated that 

they assume this change is not the 

intention of CCC, because § 1485.25 of 

the proposed rule implies that the 

applicant has a choice between stating 

its proposed contribution either in 

dollar terms or as a percentage, as is the 

case under current MAP regulations. 

The respondents asked for clarification. 

Response: CCC agrees with the 

respondents and has changed the final 

rule to clarify that the applicant has the 

choice to propose its contribution in 

dollar terms or as a percentage of 

resources requested. Section 

1485.13(a)(1)(i)(R) & (S) have been 

eliminated and new § 1485.13(a)(1)(i)(Q) 

requires applications to include: ‘‘Value, 

in U.S. dollars, of proposed 

contributions from the applicant or the 

applicant’s proposed contribution stated 

as a percentage of the total dollar 

amount of CCC resources requested.’’ 

Comment: Sixteen respondents stated 

that § 1485.13(a)(3)(i)(M), which 

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introduces the requirement for an 

evaluation plan as part of the MAP 

application process, seems to imply that 

the current practice of ‘‘performance 

measures’’, Country Progress Reports 

and regular, formal evaluations is not 

sufficient. The respondents stated that if 

this is the case the evaluation plan 

could become an added bureaucratic 

burden and asked for further 

clarification of CCC’s intent with this 

new requirement. They also asked for 

further clarification on whether the 

evaluation plan is an additional 

requirement. 

Response: The requirement for an 

evaluation plan is not a new 

requirement. 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 MAP. Section 

1485.13(a)(3)(D) of the prior MAP rule 

required ‘‘[a] statement of goals and the 

applicant’s plans for monitoring and 

evaluating performance towards 

achieving these goals.’’ In addition, 

§ 1485.14(b)(6)(v) of the previous rule 

listed as one of the criteria considered 

by CCC in choosing applications the 

adequacy of the applicant’s strategic 

plan in the following category 

‘‘Description of an evaluation plan and 

suitability of the plan for performance 

measurement.’’ The new final rule 

merely clarifies the current requirement 

to increase each applicant’s opportunity 

for success. To clarify that the 

evaluation plan is not a new 

requirement, CCC has combined subparagraphs (M) and (E) into one subparagraph (E) in § 1485.13(a)(3). 

Comment: Fourteen respondents 

stated that the specific mention of the 

submission of an ‘‘evaluation plan’’ in 

the application process implied that the 

current submission of goals and 

performance measures is no longer 

sufficient. The fourteen respondents 

also recommended that if such a plan is 

required, that the Participant’s 

submission be permitted to be brief and 

generalized. 

Response: As noted in response to the 

prior comment, in this final rule, CCC 

has combined the current regulation’s 

language on goals and performance 

measures and the new proposed 

language on evaluation plans into one 

single sub-paragraph (E) in § 1485.13. 

CCC notes that evaluation of MAP’s 

effectiveness has been and will continue 

to be an integral element of program 

planning and implementation. The 

adequacy of the evaluation plan has 

been and will remain one of the criteria 

in approving applications. 

Comment: One respondent stated that 

both § 1485.13(a)(1)(i)(J) and 

§ 1485.14(c)(9) refer to evaluating a 

request for a brand promotion program 

based on the percentage of CCC 

resources that will be made available to 

small-sized entities. The comment 

stated that since only small companies 

are eligible to participate in the branded 

program, this reference does not appear 

to be needed and should be deleted. 

Response: CCC has deleted the 

references requested by the respondent 

but for a different reason. The 

respondent is not correct that only small 

companies are eligible to participate in 

the branded program. U.S. agricultural 

cooperatives are also eligible to 

participate in the branded program. 

CCC, however, does not intend for small 

companies to receive preference over 

cooperatives. Accordingly, there is no 

need to determine the percentage of 

resources made available to small-sized 

entities, and CCC has eliminated both 

sections. Large companies remain 

ineligible for branded programs. 

Sec. 1485.14 Application Review and 

Formation of Agreements 

CCC has edited § 1485.14(b)(3) to 

make clear that the preference given to 

organizations with the broadest 

producer representation/industry 

participation applies only with respect 

to nonprofit U.S. trade organizations. 

CCC has also clarified § 1485.14(e) and 

(f) to reflect that the approval letter must 

also be signed by the MAP Participant 

and that final agreement occurs when 

both the program agreement or 

amendment and the approval letter are 

signed by both parties. In addition, CCC 

received 130 comments on this section, 

set forth below. 

Comment: Fourteen respondents 

stated under § 1485.14(c)(8) that 

‘‘overhead costs’’ and ‘‘direct 

promotional costs’’ are not defined. 

Response: CCC believes these terms 

are generally well-understood and that 

‘‘direct promotional costs’’ in specific is 

self-explanatory. CCC, therefore, does 

not deem it necessary to define these 

terms in the final rule. Moreover, this 

language remains unchanged from the 

current rule that has been in place for 

15 years. Section 1485.14(c) explains 

the allocation factors used by CCC to 

determine which applications to 

approve. Subsection (c)(8), which notes 

that CCC will review general 

administrative and overhead costs 

compared to direct promotional costs, 

merely reflects CCC’s preference that 

program funds be used for promotional 

expenses rather than administrative 

expenses. CCC has modified 

§ 1485.14(c)(8) to make clear that CCC 

will review proposed MAP-funded 

general administrative and overhead 

costs compared to proposed MAPfunded direct promotional costs. 

Comment: With respect to 

§ 1485.14(c)(8), fourteen respondents 

questioned how CCC compares salaries 

of staff with technical expertise and 

who execute programs with the fees of 

consultants who do similar work. The 

respondents stated that they felt the 

wording made an overly simplistic 

distinction between administration and 

promotional expenses. 

Response: CCC disagrees that the 

wording of § 1485.14(c)(8) is overly 

simplistic. However, this comment 

raises an issue that requires further 

clarification of § 1485.11’s definition of 

‘‘administrative expenses or costs.’’ The 

MAP final rule now deletes the phrase 

‘‘that are not directly identifiable with a 

specific market promotion activity’’ 

from the proposed definition of 

administrative expenses or costs. 

Administrative expenses or costs now 

are defined as those ‘‘expenses or costs 

of administering, directing, and 

controlling an organization that is a 

MAP Participant * * * [including costs 

related to personnel (including, but not 

limited to, salaries, benefits, payroll 

taxes, individual insurance, training)]’’ 

regardless of whether they are 

specifically identifiable with a specific 

market promotion activity. As proposed 

§ 1485.16(c) and § 1485.17(d)(26) made 

clear, home office domestic 

administrative expenses, including 

salaries of U.S. home office staff who 

execute MAP activities, are generally 

not reimbursable under MAP, and the 

Participant must use its own funds to 

pay any administrative costs of its U.S. 

offices. This is not a change from the 

prior regulations. This change to the 

definition of ‘‘administrative expenses 

or costs’’ makes the definition 

consistent with these sections. 

Pursuant to § 1485.17(c)(1) and (11), 

however, MAP funding is available, for 

generic promotion only, to pay for the 

compensation of a U.S. citizen 

employee or U.S. citizen contractor 

stationed overseas, as well as the 

administrative costs for overseas offices 

approved in MAP program agreements. 

In evaluating applications for MAP 

funding of overseas offices, as reflected 

in § 1485.14(c)(8), CCC generally prefers 

that MAP funding be directed toward 

promotional expenses rather than 

administrative expenses. It is true that 

salaries of overseas office staff with 

technical expertise are still considered 

administrative expenses even if the staff 

execute MAP activities, whereas fees of 

consultants who do similar work would 

be classified as promotional expenses. 

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However, applicants are free to explain 

in their applications what promotional 

activities overseas office staff are 

anticipated to conduct. 

Comment: One respondent stated that 

the wording in § 1485.14(c)(8) regarding 

factors affecting allocations does not 

provide for any distinction when 

making allocation decisions between 

time salaried staff spend on 

‘‘administrative functions’’ (usually a 

minor amount of time spent by higher 

paid staff) and time spent making use of 

technical expertise to execute programs 

and provide information to importers 

and processors, which are the main 

reasons for employing higher paid staff. 

Response: See response to prior 

comment. CCC does not believe that 

§ 1485.14(c)(8) must distinguish 

between time salaried staff spends on 

‘‘administrative functions’’ and time 

salaried staff spends on executing MAP 

activities. All time spent by salaried 

staff is considered general 

administrative and overhead costs, not 

direct promotional costs, as clarified in 

the revised definition of ‘‘administrative 

expenses or costs.’’ As noted in CCC’s 

response above, applicants are free to 

explain in their applications what 

promotional activities overseas office 

staff are anticipated to conduct. 

Comment: One respondent in a 

comment to § 1485.29 stated further 

clarification was needed regarding the 

eligibility of contracts with U.S. based 

organizations that are retained to 

implement or assist with approved 

international market development 

efforts. This respondent stated the 

proposed regulations do not completely 

clarify those domestic contracts that 

would be deemed eligible for 

reimbursement and those that would 

not be. 

Response: CCC’s current practice is to 

reimburse MAP Participants’ 

expenditures for contracts with U.S. 

based organizations retained to 

implement or assist with approved 

international market development 

efforts, except when the U.S. based 

organization is also providing 

administrative services to the MAP 

Participant’s U.S. office(s). In other 

words, if a U.S. based organization 

assumes any functions related to the 

administration, direction or control of 

the MAP Participant’s U.S. office(s) in a 

program year, then no activity of any 

type undertaken by this organization in 

the United States or overseas during that 

program year, including direct 

promotional services overseas, will be 

reimbursable with MAP funds. CCC has 

codified this current practice in new 

§ 1485.17(b)(19). 

Note that this prohibition does not 

apply when the U.S. based organization 

is providing administrative services to 

an approved MAP funded overseas 

office (as opposed to the U.S. home 

office). In that case, the activities 

provided by the organization are 

reimbursable whether they are 

administrative or direct promotion 

under the MAP final rule, so long as the 

organization is not also providing 

administrative services to the MAP 

Participant’s U.S. office(s) in the same 

program year. 

Comment: Nineteen respondents 

provided similar comments in reference 

to § 1485.14(i), stating that the current 

notification process serves CCC’s and 

the Participant’s purposes. A number of 

the respondents stated that although 

they believed some formalization of the 

process may be necessary, the proposed 

requirement to notify CCC of any 

budgetary change that is at least $10,000 

or more is burdensome. They stated that 

approval is only relevant at the 

constraint level and that 

acknowledgement of an activity level 

change would be more appropriate. The 

respondents also recommended that 

notification level be increased to 

$25,000, to reflect the greater impact of 

an activity funded at this level. 

Several of the comments stated that 

the language ‘‘may make adjustments 

only if it submits a notification’’ implies 

that any change to an activity, regardless 

of how minor, requires a notification. 

The respondents suggested that while 

the regulations should certainly provide 

that activities can be changed, details of 

when a notification is required could be 

more appropriately addressed in a 

separate policy clarification. One 

respondent stated that if CCC has 

identified the need to track budget 

changes more closely, they recommend 

that it adopt a policy based on a 

percentage change rather than a dollar 

value and that the percentage be no less 

than 25 percent of an existing budget 

amount. The respondent further stated 

that FAS staff should be required to use 

the UES system for approving such 

changes and that approval should not be 

based on a default period of 15 days. 

Response: CCC disagrees that the 

‘‘current notification process’’ serves 

CCC’s purposes. However, in response 

to the above comments, CCC has 

modified § 1485.14(i) to reduce the 

burden of notifications, adopting several 

of the changes requested by 

commenters. For example, CCC has 

increased the threshold to $25,000 for 

requiring notification to CCC of changes 

to existing activities. This notification 

must occur before the change is 

implemented, but no approval is 

required. Similarly, CCC will require 

notifications for adjustments below that 

threshold only if the change is 

significant. No notification is required 

for minor changes in existing, approved 

activities or for deleting an activity. 

Comment: Two respondents stated 

that MAP Participants’ current practice 

of reallocating funds among brand 

participants in the MAP Participants’ 

branded programs has allowed MAP 

Participants to expand brand 

participation by as much as 40 percent 

per year. Therefore, they strongly 

oppose proposed § 1485.14(i)(2)(i), 

which would require MAP Participants 

to notify CCC of any increase in the 

funding level for existing, approved 

activities addressing a single constraint 

or opportunity by more than $10,000 or 

20 percent of the approved funding 

level, whichever is greater. They further 

stated that imposing a hard budget 

ceiling and requisite advance 

notification would severely limit the 

flexibility for MAP Participants with 

branded programs to reallocate funds 

from companies that are unable to 

utilize them in favor of those that can. 

Response: Respondents are mistaken 

that § 1485.14(i)(2)(i) requires a MAP 

Participant to notify CCC of any 

reallocation of funds among the 

Participant’s branded program 

participants. The notification 

requirement does not apply at the brand 

company level for a MAP Participant 

operating a brand program. The brand 

program is approved by CCC at the 

program level, not at the company level. 

CCC simply approves of the 

Participant’s brand program in the 

aggregate; CCC does not review or 

approve a MAP Participant’s allocation 

of funds among brand participants in its 

branded program. 

Comment: Fourteen respondents 

stated they support the self-certification 

requirement by small-sized entities 

participating in a MAP Participant’s 

activities in the branded program area. 

In addition, CCC received some 

comments encouraging CCC to be 

consistent in its policy to exclude large 

companies from the program. The 

respondents stated that currently large 

companies cannot apply and receive 

MAP funding directly; however, a 

marketing company representing a large 

company may obtain assistance through 

a SRTG. The respondents recommended 

that the applicant company as well as 

the brand owner be required to certify 

that they meet SBA’s criteria of being a 

small company. 

Response: CCC disagrees with 

respondents’ recommendation that the 

brand owner certify that it is a small 

company. It is not CCC’s intention to 

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limit the products that small export 

trading companies can market under the 

MAP branded program, regardless of the 

size of the company producing the 

product marketed. CCC believes that it 

is appropriate for a small export trading 

company to promote its ability to 

consolidate export shipments that 

include products made by a wide range 

of companies. 

Sec. 1485.15 Operational Procedures 

for Brand Programs 

CCC received 32 comments on this 

section. CCC has also modified 

§ 1485.15(c)(6) to include additional 

terms that are acceptable origin 

identification, currently set forth in 

MAP Notice 97–020. In addition, CCC 

has modified § 1485.15(c)(6) to advise 

that CCC may temporarily waive the 

U.S. origin labeling requirement where 

CCC has determined that such labeling 

will likely harm sales rather than help 

them. 

Comment: Three respondents made 

similar comments in reference to 

§ 1485.15(a). One respondent 

recommended that the requirement for 

an annual submission of program 

operational procedures be changed to 

require FAS approval only once, after 

which FAS would merely be notified of 

any changes. Two respondents proposed 

that the review of procedures and 

documents used to administer the 

branded program be conducted during 

the annual compliance review. 

Response: CCC disagrees with the 

recommendation to remove the annual 

requirement and has retained the 

requirement for an annual submission of 

program operational procedures even if 

there are no substantial changes in the 

procedures. CCC expects that any MAP 

Participant that is operating a brand 

program would review its procedures 

and documents annually. 

CCC disagrees with the respondents’ 

proposal to have CCC review the 

procedures during the annual 

compliance review in lieu of a separate 

submission. The purpose of the CCC 

review is to approve a plan at the start 

of a program year, before the program 

begins operation. Moreover, during the 

compliance review, CCC may review the 

implementation of the plan, rather than 

the plan itself. 

In response to other comments 

requesting additional time for 

implementation, CCC has delayed the 

effective date of this final rule until the 

MAP Participant’s 2013 program year 

(either 01/01/2013 or 07/01/2013). CCC 

has deleted the requirement in 

§ 1485.15(a) that the MAP Participant 

must submit its proposed brand 

program operational procedures not 

later than 21 days prior to signing 

participation agreements with brand 

participants. CCC has modified 

§ 1485.15(a) to note that CCC will notify 

all new and existing MAP Participants 

in writing in each Participant’s annual 

approval letter and through the FAS 

web site as to applicable submission 

dates and dates for approvals of brand 

program operation procedures. 

Comment: Two respondents 

commented on § 1485.15(a). One 

respondent requested that FAS confirm 

that § 1485.15(a) does not apply to a 

U.S. agricultural cooperative that is a 

MAP Participant and operates the 

cooperative’s own brand promotion 

program. Another respondent 

commented that this section appears to 

apply to MAP Participants that 

administer brand promotion programs 

on behalf of third party brand 

participants that do not have a direct 

agreement with CCC. The respondents 

requested clarification be made on 

whether this section does not apply to 

U.S. nonprofit agricultural cooperatives 

that are MAP Participants operating 

their own brand program. 

Response: CCC confirms that 

§ 1485.15(a) applies only to MAP 

Participants that operate brand 

promotion programs that include third 

party brand participants, and does not 

apply to U.S. agricultural cooperatives 

that operate their own brand programs. 

CCC has amended the definition of 

brand participant in § 1485.11 to make 

clear it does not include a U.S. 

agricultural cooperative operating its 

own brand program. 

Comment: One respondent stated that 

§ 1485.15(b) and § 1485.15(c) seem to 

imply that contracts between 

cooperatives and third party 

participants be preapproved by CCC 

each year. The respondent stated that 

this requirement is unreasonable and 

burdensome since nonprofit farmer 

owned cooperatives carefully protect 

their farmer members and their brand 

on each and every contract into which 

they enter. 

Response: CCC disagrees that 

§ 1485.15(b) and § 1485.15(c) imply that 

CCC pre-approves a MAP Participant’s 

contracts with brand participants. 

Section 1485.15(b) simply requires that 

the MAP Participant’s proposed 

operational procedures be pre-approved 

by CCC. It does not require CCC to preapprove individual contracts. Section 

1485.15(c) simply sets forth items that 

must be addressed in each contract with 

a brand participant. As discussed above, 

U.S. agricultural cooperatives operating 

their own brand program are not ‘‘brand 

participants.’’ 

Comment: Six respondents stated that 

§ 1485.15(c)(7) should include ‘‘smallsized entity or cooperative.’’ 

Response: CCC agrees and has made 

the requested change. 

Comment: CCC received one comment 

asking whether a MAP Participant who 

had previously received an approval 

from CCC to use origin identification 

terms other than those appearing in the 

current regulations would have to resubmit these terms again for approval 

when the new regulations become 

effective. 

Response: CCC understands the 

commenter to be referring to 

§ 1485.15(c)(6), which lays out the 

requirement that MAP activities identify 

the U.S. origin of the promoted 

products. CCC considers that an 

approval under the previous regulations 

would constitute an approval under the 

new regulations. A MAP Participant 

would not have to re-submit these terms 

again for approval under the new 

regulations. 

CCC has also modified § 1485.15(c)(6) 

to include additional terms that are 

acceptable origin identification, 

currently set forth in MAP Notice 97– 

020. Specifically, CCC has added the 

terms ‘‘American’’, ‘‘United States of 

America’’, as well as any state or 

territory of the United States of America 

spelled out in its entirety. Section 

1485.15(c)(6) also now clarifies that the 

use of approved origin terms as a 

descriptor or in the name of the product 

(e.g., Texas style chili, Bob’s American 

Pizza) does not satisfy the product 

origin requirement. Section 

1485.15(c)(6) also now encourages the 

phrases ‘‘product of ’’, ‘‘grown in’’ or 

‘‘made in’’, but does not require them. 

MAP Notice 97–020 will be removed 

from the FAS Web site. 

In addition, CCC notes that in certain 

situations, CCC has temporarily waived 

the requirement to identify the U.S. 

origin of products promoted under the 

MAP brand program. For example, 

current MAP Notice 09–007 temporarily 

waives this requirement for MAP brand 

activities conducted in certain Middle 

East countries. Accordingly, CCC has 

modified § 1485.15(c)(6) to advise that 

CCC may temporarily waive the U.S. 

origin labeling requirement where CCC 

has determined that such labeling will 

likely harm sales rather than help them 

and that such determinations will be 

announced to MAP Participants via a 

MAP notice issued on FAS’ Web site. 

MAP Notice 09–007 will continue to be 

available on the Web site for 

informational purposes and reflects 

CCC’s current administration of the 

MAP program. 

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Comment: One respondent stated that 

5 years is an unreasonable time to keep 

records, stating that the IRS requires 

records to be kept for only 3 years. 

Response: CCC disagrees with the 

respondent. The Agricultural Trade Act 

of 1978, as amended, at 7 U.S.C. 

5662(a)(1) requires the Secretary of 

Agriculture ‘‘to require by regulation 

each exporter or other participant under 

the [MAP and other] program[s] to 

maintain all records concerning a 

program transaction for a period not to 

exceed 5 years after completion of the 

program transaction, and to permit the 

Secretary to have full and complete 

access, for such 5-year period, to such 

records.’’ 

Comment: Five respondents asked 

CCC to clarify whether cooperatives 

were still exempt from the 5-year 

graduation rule or if this had changed. 

Response: CCC understands the 

commenters to be referring to the 

statutory provision in 7 U.S.C. § 5623 

note, which states that MAP assistance 

may not be provided to promote a 

specific branded product in a single 

market for more than 5 years unless the 

Secretary determines that further 

assistance is necessary in order to meet 

the objectives of the program. Currently, 

CCC exempts U.S. agricultural 

cooperatives from the 5 year rule. CCC 

determined in 1998 that continued 

support for U.S. agricultural 

cooperatives was necessary to meet 

MAP’s objectives, and that 

determination remains in place. CCC 

will publish this determination in a 

MAP notice on the FAS Web site. 

Comment: Three similar comments 

stated that the ‘‘Sunset Rule’’ should be 

deleted. The respondents suggested that 

if the rule is maintained, then it should 

apply to a specific market and not to a 

country. One respondent stated that the 

5-year limitation is the single greatest 

barrier to program participation and 

recommended that the country 

limitation be extended to 8 years per 

market. Another respondent 

recommended that export trading 

companies be considered for exemption 

from the 5-year limitation, if it can be 

proven that any additional marketing 

efforts after 5 years will be for different 

products beyond those previously 

marketed. 

Response: CCC understands the 

commenters to be referring to the 

statutory provision in 7 U.S.C. § 5623 

note, which states that ‘‘[t]he Secretary 

should not provide assistance under the 

[MAP] program to promote a specific 

branded product in a single market for 

more than 5 years unless the Secretary 

determines that further assistance is 

necessary in order to meet the objectives 

of the program.’’ Because the 5-year 

limitation is established by statute, CCC 

cannot extend the country limitation to 

8 years as requested by the respondents. 

While the statute provides the Secretary 

the discretion to waive the graduation 

requirement in individual 

circumstances where the Secretary 

believes such further assistance is 

necessary to achieve the goals of MAP, 

CCC has no authority to ‘‘delete’’ the 

‘‘Sunset Rule’’ as requested by the 

commenters. CCC also disagrees with 

the comment that the ‘‘Sunset Rule’’ be 

applied to a specific market and not to 

a country. CCC has defined ‘‘market’’ in 

the proposed and final rules to mean the 

country or countries targeted by an 

activity. Lastly, CCC does not have any 

information that suggests that 

exempting export trading companies 

from the 5-year limitation is necessary 

to achieve the goals of MAP. CCC 

retains the discretion to waive the 5- 

year limitation, if CCC determines that 

further assistance in a particular 

situation is in the best interests of the 

MAP. 

Comment: Two respondents 

commented that they supported 

continuing exemptions for international 

shows that reflect a broad international 

attendance. 

Response: CCC understands the 

commenters to be referring to CCC’s 

practice, as reflected in MAP Notice 09– 

005, of not counting a Participant’s 

attendance at certain international trade 

shows when determining whether a 

specific branded product has been 

promoted in a single market for more 

than 5 years. CCC will continue this 

practice and has codified it in 

§ 1485.15(d) of the MAP final rule. 

Many international trade shows 

feature buyers and sellers from many 

countries. Many of the shows are held 

in the same country annually or 

biannually (e.g., SIAL and ANUGA are 

held in alternating years in France and 

Germany, respectively). Many U.S. 

companies attend such shows to meet 

with buyers from many countries, not 

just the host countries. However, given 

that CCC may not provide assistance to 

a single company for brand promotion 

in a single country for more than 5 

years, many small brand companies 

would face graduation from a host 

country after exhibiting at one of these 

international trade shows for five years, 

even if the companies have had no other 

activities in that country and 

participating in the show is used 

exclusively as a gateway for developing 

customers in other countries. 

Therefore, to further the objectives of 

MAP, CCC has determined that brand 

participants’ participation in certain 

international trade shows in foreign 

countries will not be considered when 

determining such participants’ time in 

country for purposes of the 5 year 

graduation requirement. Specifically, as 

reflected in MAP Notice 09–005, CCC 

has compiled a list of international trade 

shows that CCC ‘‘exempts’’ from the 

graduation requirement. A show on this 

list meets two requirements: (1) It is a 

food or agricultural show, with no less 

than 30% of exhibitors selling food or 

agricultural products, and (2) it is an 

international show, meaning it targets 

buyers, distributors and the like from 

more than one foreign country and no 

less than 15% of the show’s visitors are 

from countries other than the host 

country. 

CCC is not planning on changing its 

practice and has codified MAP Notice 

09–005 in § 1485.15(d). MAP Notice 09– 

005 will be removed from the FAS Web 

site, as parts are now redundant with 

the final rule, and a new MAP notice 

will be posted on FAS’ Web site listing 

the international trade shows that CCC 

‘‘exempts’’ from the graduation 

requirement. If a MAP Participant 

believes that a show should be added to 

this list, the Participant should contact 

FAS. 

Comment: One respondent stated that 

because they do not have the facilities 

for conducting investigations of 

corporate ownership structure, they 

proposed that the current process of 

self-certification continue. 

Response: CCC notes that 

§ 1485.15(c)(7) as proposed allowed 

brand participants to self-certify as to 

status as a small-sized entity and that 

the final rule continues the current 

process of self-certification. 

Sec. 1485.16 Contribution Rules 

CCC received 20 comments on this 

section. Below are CCC’s responses. In 

addition, CCC has clarified in 

§ 1485.16(c) that a MAP Participant’s 

U.S. office’s administrative costs may be 

included in calculating the amount of 

contributions the MAP Participant 

contributes to MAP activities. Similarly, 

CCC has clarified in § 1485.16(d)(2) that 

contributions are subject to the MAP 

regulations and the applicable OMB 

circulars on cost principles, to the 

extent these principles do not directly 

conflict with the provisions of this 

subpart. In addition, CCC has removed 

the cross-reference to § 1485.16(c) in 

§ 1485.16(d)(2) as unnecessary. 

Comment: Fourteen respondents 

provided similar comments in reference 

to § 1485.16, stating it would be clearer 

to begin the subpart by stating that any 

expense that is listed as eligible for 

reimbursement can also be considered a 

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contribution if paid with industry 

funds. The respondents stated that then 

the list would only need to state what 

is not eligible as a contribution, the 

assumption being that anything that is 

not listed is eligible. They stated this 

change would greatly reduce the 

confusion over items which now appear 

in both places, sometimes with slightly 

different wording. 

Response: CCC believes that eligible 

contributions are clear as presented in 

§ 1485.16. CCC notes that 

§ 1485.16(d)(2)(xxi) specifically 

provides that ‘‘the cost of any activity 

expressly listed as reimbursable in this 

subpart’’ may be considered a 

contribution if paid with Participant or 

industry funds. 

Comment: One respondent stated that 

this section does not specifically 

mention industry travel expenses as 

being counted as a contribution. This 

respondent stated that it urges FAS to 

specifically state that industry travel 

and other industry expenditures that are 

in support of the broader mission of 

Participants be listed as eligible to count 

toward contributions. 

Response: CCC allows domestic travel 

expenses paid by the Participant to be 

counted as a contribution, pursuant to 

§ 1485.16(d)(2)(xvii). Additionally, at 

§ 1485.16(d)(2)(xxi), CCC allows to be 

counted as a contribution the cost of any 

activity paid by the Participant and 

expressly listed as reimbursable in this 

subpart, which includes travel. In 

response to the comment, however, CCC 

has modified the definition of 

‘‘contribution’’ in § 1485.11 to include 

explicitly expenditures made by entities 

in the MAP Participant’s industry in 

support of the entities’ related 

promotion activities in the markets 

covered by the MAP Participant’s 

agreement. 

Comment: One respondent stated the 

proposed rule § 1485.16(d)(2)(xvi) reads 

eligible contributions include ‘‘fees for 

participating in U.S. Government 

activities’’ and it requested clarification 

of the term ‘‘U.S. Government 

activities.’’ 

Response: From time to time, the U.S. 

Government financially sponsors 

activities or endorses activities, 

particularly overseas, that promote 

export opportunities. These could 

include trade shows, trade missions, 

restaurant promotions, or a variety of 

other activities. To clarify this further, 

CCC has modified § 1485.16(d)(2)(xvi) to 

note that the activities are ‘‘U.S. 

government sponsored or endorsed 

export promotion activities.’’ CCC has 

made a corresponding edit to 

§ 1485.17(d)(21). 

Comment: One respondent 

commented that the proposed regulation 

at § 1485.16(b) provides that ‘‘in MAP 

brand promotion programs, a brand 

participant shall contribute at least 50 

percent of the total eligible expenditures 

made on each approved brand 

promotion.’’ It suggested that to be 

consistent with the quoted language, 

and with the understanding that a brand 

promotion program can be operated by 

a MAP Participant, as well as a brand 

participant, the phrase ‘‘a brand 

participant’’ in § 1485.16(b) should be 

replaced with ‘‘a brand participant or 

Participant’’ or similar language. 

Response: CCC agrees with the 

comment and has modified § 1485.16(b) 

accordingly. 

Sec. 1485.17 Reimbursement 

CCC received 330 comments on this 

section. Below are CCC’s responses to 

the comments. In addition, CCC has 

clarified various provisions. For 

example, CCC has made explicit in 

§ 1485.17(b) that reimbursements are 

subject to the MAP regulations and the 

applicable OMB circulars on cost 

principles, to the extent these principles 

do not directly conflict with the 

provisions of this subpart. CCC has also 

modified § 1485.17(c)(8) to codify CCC’s 

current practice of requiring MAP 

Participants to provide documentation 

establishing the full fare economy class 

rate to support their reimbursement 

claims, as well as clarify that 

international travel expenses for 

activities that occur inside or outside 

the United States are reimbursable. In 

addition, CCC has deleted 

§ 1485.17(c)(9), which provided that per 

diem was reimbursable, because it is 

redundant with § 1485.17(c)(8) (which 

now explicitly includes per diem). 

Section 1485.17(c)(8) allows the 

reimbursement of ‘‘international travel 

expenditures,’’ which include 

transportation, per diem, and 

miscellaneous expenses. 

CCC has also added § 1485.17(b)(17), 

which allows for reimbursement of 

international travel expenditures (e.g., 

transportation, per diem, and 

miscellaneous expenses) for brand 

companies participating in foreign trade 

missions subject to certain conditions. 

This codifies MAP Notice 03–004. MAP 

Notice 03–004 will be removed from the 

FAS Web site. 

Similarly, CCC has codified MAP 

Notice 01–004 in new § 1485.17(b)(18). 

MAP Notice 01–004 describes CCC’s 

longstanding practice of limiting 

reimbursement of expenditures related 

to retail, trade, or consumer exhibits or 

shows, whether held inside or outside 

the United States, where USDA has 

sponsored or endorsed a U.S. pavilion at 

the exhibit or show. In that situation, 

MAP funds are used to reimburse the 

travel and/or non-travel expenditures of 

only those MAP Participants located 

within the U.S. pavilion. CCC believes 

it is important to maintain a unified 

U.S. presence at these shows, with all 

exhibitors contributing fairly and 

supporting the U.S. pavilion. MAP 

Notice 01–004 will be removed from the 

FAS Web site. 

Finally, CCC has added a cross 

reference to § 1485.17(d) in § 1485.17(b) 

and § 1485.17(c). 

Comment: Three respondents 

provided similar comments in reference 

to § 1485.17(b)(4). Two comments stated 

that the rule as written may be 

interpreted to allow the cost of product 

samples to be reimbursed. The 

respondents stated that ‘‘[a]s written, 

this rule may be interpreted to allow the 

cost of promotional samples themselves 

to be reimbursed. We feel that the 

existing approach, in which costs of 

distributing samples are eligible, but the 

costs of the samples themselves are not, 

remains appropriate within WTO 

eligibility. We recommend that this be 

clarified.’’ 

One comment stated that the current 

MAP regulations limit the 

reimbursement of giveaways to U.S. 

dollars and suggested that the maximum 

reimbursement be increased to reflect 

inflation since the 1980s. 

One respondent stated that the 

purchase of samples locally on a caseby-case basis with a maximum cost per 

sample not to exceed the allowable cost 

of a premium should be allowed. 

Response: CCC’s practice has been 

and continues to be that the cost of 

product samples is not reimbursable 

under MAP. In response to the first 

commenters above, CCC has clarified 

this issue and modified § 1485.17(b)(4), 

which provides that the costs of in-store 

and food service promotions, product 

demonstrations, and distribution of 

promotional samples are reimbursable. 

Section 1485.17(b)(4) now explicitly 

notes that the purchase of product 

samples are not reimbursable and 

replaces the term ‘‘promotional 

samples’’ with ‘‘product samples.’’ CCC 

also notes that § 1485.17(d)(5) already 

specifically prohibits the reimbursement 

of the cost of product samples. In 

addition, as noted above, CCC has 

modified § 1485.11 to include a 

definition of ‘‘product samples.’’ 

CCC disagrees with the view that the 

costs of product samples should be 

reimbursed. 

CCC does not agree with the 

commenter requesting that the current 

MAP regulation’s limit on the 

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reimbursement of giveaways be 

increased or that it be codified in the 

MAP final rule. As noted above, CCC 

observes that the cost of samples of the 

promoted MAP product are not 

reimbursable, regardless of whether the 

samples are giveaways or not. Regarding 

the reimbursement of giveaways of nonMAP promoted products in general, the 

MAP final rule is written in a way to 

allow CCC to counter inflation, without 

unduly limiting its flexibility. As 

discussed below in CCC’s response to 

similar comments, rather than specify a 

reimbursement amount for giveaways in 

§ 1485.17(b)(11), CCC will set a 

reimbursement limit during the course 

of its administration of MAP and change 

that limit, as necessary, with 

appropriate notice to MAP Participants 

through written MAP notices posted on 

FAS’ Web site. 

Comment: Three respondents 

commented in reference to 

§ 1485.17(b)(8) supporting the inclusion 

of eligibility of subscriptions. All 

recommended that CCC change the 

wording to remove the words ‘‘to 

publications’’ and instead state that 

‘‘CCC will reimburse in whole or in part 

subscriptions that are of a technical, 

economic, or marketing nature and 

relevant to the approved activities.’’ 

One respondent proposed adding 

language to allow for expenditures 

when the internet is used as a staff 

resource. It gave as an example for 

market intelligence, economic data, and 

key policies and procedures to be 

accessible via their internet site to their 

international offices and U.S. staff 

worldwide. 

Response: CCC agrees with the first 

general comment and has modified 

§ 1485.17(b)(8) (now § 1485.17(b)(9)), as 

some appropriate subscriptions could be 

to web-based information that may not 

traditionally be thought of as 

‘‘publications.’’ CCC has also made a 

corresponding change to 

§ 1485.16(d)(2)(x). CCC does not agree 

with the second comment to add 

language to allow reimbursement of 

internet expenditures because, as 

submitted, this appears to be a function 

of the MAP Participant’s home office, 

and, thus, is not reimbursable under the 

program unless otherwise authorized in 

§ 1485.17(c)(22). 

Comment: Fourteen respondents 

commented regarding proposed 

§ 1485.17(b)(9) (now § 1485.17(b)(10)), 

which provided that the cost of 

‘‘demonstrators, interpreters, translators, 

receptionists, and similar temporary 

workers who help with the 

implementation of discrete promotional 

activities’’ is reimbursable. These 

respondents were concerned with the 

use of the word ‘‘discrete’’ in the 

preceding language. Several commented 

that they presume that the use of the 

term ‘‘discrete’’ applies to or refers to 

any approved activities such as 

described in the regulations. The 

respondents stated that it would be 

clearer to use the term ‘‘individual’’ 

rather than ‘‘discrete,’’ as that might 

better define the activity. 

Response: CCC agrees with the 

respondents and has made the suggested 

change substituting the term 

‘‘individual’’ for the term ‘‘discrete’’ in 

the final rule for clarity. 

Comment: Fifteen respondents 

provided similar comments in regard to 

proposed § 1485.17(b)(10) (now 

§ 1485.17(b)(11)), which provided that 

the cost of giveaways, awards, prizes, 

gifts and other similar promotional 

materials is reimbursable, subject to 

such reimbursement limitation as CCC 

may, from time to time, determine and 

announce in writing to all MAP 

Participants and on the FAS Web site. 

The respondents stated that they 

presume that announcements pertaining 

to the reimbursement limitations will be 

in the form of Program Announcements 

or similar instruments. Four stated that 

they agree with the need for flexibility 

in this area and supported CCC’s 

approach. 

Response: CCC understands that the 

commenters are referring to CCC’s 

practice of issuing Market Access 

Program notices. MAP Notice 97–002 

currently sets out a $1.00 

reimbursement limit for promotional 

items (which does not include product 

samples). It also sets out the conditions 

under which such reimbursement is 

available. CCC has determined to codify 

MAP Notice 97–002, in part. Section 

1485.17(b)(11), which allows 

reimbursement for giveaways, awards, 

prizes, gifts and other similar 

promotional materials, now notes that 

reimbursement is available only when: 

(1) the items are described in detail with 

a per unit cost in an approved strategic 

plan and (2) 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. 

CCC believes that specifying a dollar 

amount in the new MAP regulations is 

unnecessarily restrictive and does not 

provide CCC sufficient flexibility to deal 

with changing economic circumstances 

such as inflation. Therefore, rather than 

specify a reimbursement amount in 

§ 1485.17(b)(11), CCC will retain the 

proposed rule’s discretion. Thus, CCC 

will set a reimbursement limit during 

the course of its administration of MAP 

and change that limit, as necessary, with 

appropriate notice to MAP Participants 

through written MAP notices posted on 

FAS’ Web site. MAP Notice 97–002 will 

be removed from the FAS Web site, and 

a new notice will be issued setting forth 

a reimbursement allowance for 

giveaways, awards, prizes, gifts and 

other similar promotional materials. 

Comment: One respondent 

commented in reference to 

§ 1485.17(b)(12) and couponing. The 

commenter suggested that CCC allow 

ads to be reimbursed if the ad contains 

coupons for other products but does not 

contain a coupon for MAP Participant 

products. 

Response: CCC confirms that 

reimbursement is allowed if ads contain 

coupons for other products but do not 

contain a coupon for MAP Participant 

products. In response to the commenter, 

CCC has revised § 1485.17(b)(12) (now 

§ 1485.17(b)(13)) to make clear that only 

the design, production and distribution 

of coupons for products other than the 

MAP Participant’s promoted products 

are reimbursable. 

In addition, CCC has revised 

§ 1485.17(b)(1), which allows 

advertising to be reimbursed, including 

advertising of price discounts, to make 

clear that advertising associated with 

coupons or price discounts for MAPpromoted products is not reimbursable. 

CCC has also modified both provisions 

to note that if otherwise reimbursable 

advertising or coupon activities include 

both coupons or price discounts for 

products other than the MAP 

Participant’s promoted products as well 

as for the MAP-promoted products, 

expenditures for such activities will not 

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

expenditures may not be prorated and 

submitted for reimbursement). This 

codifies MAP Notice 05–001, which will 

be removed from the FAS Web site. 

Finally, CCC has modified 

§ 1485.17(d)(9) to clarify that CCC will 

not reimburse the cost of any coupon 

redemption or price discounts ‘‘of the 

MAP promoted commodity.’’ 

Comment: Sixteen similar comments 

were received regarding § 1485.17(b)(12) 

and the design, production and 

distribution of coupons. The 

respondents requested that CCC clarify 

if this section is applicable to both 

branded and generic. Three comments 

stated that they strongly support the 

clarification to incorporate the 

eligibility of coupon design, production 

and distribution. 

In addition, eighteen respondents 

stated that clarification was needed 

regarding what is covered as ‘‘branded,’’ 

as ‘‘generic,’’ or as both, throughout the 

regulations. Two respondents stated that 

the language listed in § 1485.17(b)(1) 

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Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 29485 

through § 1485.17(b)(15) seems to 

describe expenses eligible for entities 

conducting a branded program, and that 

expenses listed from § 1485.17(c) 

through § 1485.17(d) addressed generic 

only. They requested clarification if this 

understanding was correct. 

Another similar comment was 

received which stated that more 

specificity was needed for branded and 

generic reimbursement rules. One 

respondent stated that since Web site 

costs were previously not considered an 

eligible branded expense and the 

eligibility of subscription costs and 

audit costs do not appear to pertain to 

the branded program, they would like 

confirmation that CCC now intended for 

these expenses to be eligible for both the 

generic and branded programs. 

Two respondents stated that in 

reference to § 1485.17(c)(16), the 

proposed rule should make it clear that 

branded programs are specifically 

included. 

Response: CCC has modified 

§ 1485.17(b) to clarify that it addresses 

both brand and generic promotional 

activities. Therefore, all subparagraphs 

under § 1485.17(b) are applicable to 

both generic and branded programs, 

including § 1485.17(b)(9) (allowing 

subscription costs), § 1485.17(b)(13) 

(allowing certain coupon costs), 

§ 1485.17(b)(14) (allowing certain audit 

costs) and § 1485.17(b)(16) (allowing 

Web site costs). 

Section 1485.17(c) addresses generic 

promotional activities only. 

Section 1485.17(d) was removed and 

the text of that section added to the 

definition of generic promotion in 

§ 1485.11. Subsequent subsections of 

§ 1485.17 have been reordered. 

As discussed above, CCC does not 

reimburse the design, production or 

distribution of coupons for the MAP 

Participant’s promoted products. CCC 

has modified § 1485.17(b)(12) (now 

§ 1485.17(b)(13)) to make this clear. 

Finally, CCC disagrees with the 

respondents who requested that 

branded programs be included in 

§ 1485.17(c)(15), which reimburses 

market research for generic promotions 

only. That section will remain 

applicable only to generic promotions. 

Comment: Fourteen respondents 

commented in reference to ‘‘audits’’ 

referenced in § 1485.17(b)(13) (which 

allowed for reimbursement of an audit 

of a MAP Participant that was required 

by the applicable parts of this title if the 

MAP is the Participant’s largest source 

of federal funding), § 1485.17(c)(17) 

(which allowed for reimbursement of 

independent evaluations or audits not 

otherwise required by CCC if performed 

to ensure compliance with program 

agreement or regulatory requirements), 

and § 1485.17(e)(16) (which provided 

that CCC will not reimburse Participants 

for independent evaluations or audits if 

CCC determines such evaluation or 

audit is needed to confirm past or 

ensure future program agreement or 

regulatory compliance). The 

respondents requested further clarity on 

when CCC will pay for an audit. They 

also stated that references to ‘‘applicable 

parts of this title’’ should be avoided 

and instead, clear language should be 

provided. For example, the respondents 

asked whether, in light of 

§ 1485.17(b)(13), which provides for 

reimbursement for A–133 audits, 

§ 1485.17(c)(17) means MAP will pay 

for other audits that give the Participant 

assurances that it is in compliance with 

MAP rules, i.e., operational or forensic 

audits. Six respondents also provided 

similar comments in reference to 

§ 1485.17(e)(16), questioning if all 

financial audits were not reimbursable. 

The respondents also asked if OMB 

Circular A–133 audits were 

reimbursable given that this is not 

required by CCC but by the federal 

government. 

Response: In response to these 

comments, CCC has modified 

§ 1485.17(b)(13) (now § 1485.17(b)(14)) 

to clarify that this section refers to OMB 

Circular A–133 audits. Thus, for brand 

and generic promotions, such audits are 

reimbursable if the MAP is the MAP 

Participant’s largest source of Federal 

funding. 

Also in response to these comments, 

CCC has clarified § 1485.17(c)(17) (now 

§ 1485.17(c)(16)). That section now 

provides that it is subject to the 

limitations set out in § 1485.17(d)(which 

now lists items for which CCC will not 

reimburse Participants). CCC has also 

deleted the reference to ensuring 

compliance with ‘‘regulatory 

requirements’’ in this section. Section 

1485.17(c)(16) now provides that for 

generic promotions only, independent 

evaluations and audits not otherwise 

required by CCC to ensure compliance 

with program requirements are 

reimbursable. CCC observes, however, 

that, as noted in new § 1485.17(d)(31), 

expenditures associated with a MAP 

Participant’s creation or review of its 

fraud prevention program, contracting 

procedures, or brand program 

operational procedures are not 

reimbursable. 

With respect to the comments 

questioning whether § 1485.17(e)(16) 

prohibits reimbursement of all financial 

audits, CCC confirms that 1485.17(e)(16) 

(now § 1485.17(d)(16)) prohibits 

reimbursement only of evaluations or 

audits that are required by CCC to 

confirm past or to ensure future program 

agreement or regulatory compliance. 

This is not a change from the current 

regulations. Finally, CCC notes that this 

section does not prohibit reimbursement 

of OMB Circular A–133 audits, which is 

specifically allowed, under the 

appropriate circumstances, per 

§ 1485.17(b)(14). 

CCC disagrees with the comments that 

the MAP final rule should avoid 

references to ‘‘applicable parts of this 

title.’’ As noted in § 1485.10 of both the 

proposed and final rules, USDA 

regulations other than the MAP final 

rule also apply to USDA recipients of 

federal financial assistance. Some 

regulations apply to all MAP 

Participants. Others apply only to 

certain categories of MAP Participants. 

Because of the varied nature of MAP 

Participants, it would be unwieldy to 

specify which other regulations apply 

and when for each provision in the 

MAP final rule. However, in response to 

the comment, wherever the MAP final 

rule has explicitly referred to 

‘‘applicable parts of this title,’’ CCC has 

added illustrative examples of what 

parts potentially apply to different MAP 

Participants. 

In addition, CCC notes that 

§ 1485.10(b) provides an illustrative list 

of other USDA regulations of general 

application that may apply to MAP and 

MAP Participants. The section also puts 

MAP Participants on notice that they 

must comply with the relevant 

provisions of the CCC Charter Act and 

Title VI of the Civil Rights Act of 1964 

and related civil rights regulations and 

policies. 

Finally, in response to the comments, 

CCC has also added new § 1485.10(b)(4), 

which lists additional laws and 

regulations that are applicable to MAP 

Participants. 

Comment: Fourteen similar comments 

stated that previous policy guidance 

announced reimbursement of the costs 

of developing, updating, and servicing 

non-branded web sites on the internet 

and stated that they seek clarification on 

whether this new regulation supersedes 

the previous guidance. Three comments 

also stated that they strongly supported 

web site development expenses being 

eligible for both branded and generic 

programs. 

Response: CCC understands that the 

commenters are referring to CCC’s 

practice of issuing Market Access 

Program notices. CCC issues these MAP 

notices for informational purposes. 

While these notices have no legal effect, 

they alert MAP Participants to 

information regarding the 

administration of the MAP program that 

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29486 Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 

CCC believes is beneficial to share with 

MAP Participants. 

CCC confirms that the MAP final rule 

sets out the reimbursement rules for 

MAP Participants and supersedes all 

prior inconsistent guidance. 

Specifically, § 1485.17(b)(15) (now 

§ 1485.17(b)(16)), applicable to both 

brand and generic activities, and 

§ 1485.17(c)(31), applicable to generic 

activities, provide that CCC will 

reimburse, in part or in whole, the cost 

of developing, updating and servicing 

certain types of Web sites. In response 

to the comments, however, CCC has 

modified § 1485.17(c)(31) to include 

additional conditions regarding Web 

site content that CCC currently requires 

as a condition of reimbursement, as 

reflected in MAP Notice 01–003. MAP 

Notice 01–003 has thus been codified 

and will be removed from FAS’ Web 

site. Section 1485.17(c)(31) now 

provides that expenditures associated 

with developing, updating, and 

servicing Web sites on the Internet are 

reimbursable if the Web sites: (1) 

Contain a message related to exporting 

or international trade, (2) include a 

discernible ‘‘link’’ to the FAS/ 

Washington homepage or an FAS 

overseas homepage, and (3) have been 

specifically approved by the appropriate 

FAS commodity division. Expenditures 

related to Web sites or portions of Web 

sites that are accessible only to an 

organization’s members are not 

reimbursable. Reimbursement claims for 

Web sites that include any sort of 

‘‘members only’’ sections must be 

prorated to exclude the costs associated 

with those areas subject to restricted 

access. 

Finally, CCC notes that § 1485.16(b) 

provides that in MAP brand promotion 

programs, MAP Participants must 

contribute at least 50% of the total 

eligible expenditures made on each 

approved brand promotion. At this time, 

CCC reimburses qualified Web site 

expenses 100% for generic promotions 

and 50% for brand promotions. 

Comment: Ten respondents provided 

comments in regard to § 1485.17(c)(8). 

They questioned under what 

circumstances business class travel 

would be reimbursed. The 

commentators stated that they felt it 

would be reasonable to be reimbursed 

for business class rate for flights over a 

specific duration (i.e. over 12 hours). 

Response: CCC recognizes that 

circumstances might arise where 

business class flights may be necessary. 

Thus, CCC has modified § 1485.17(c)(8) 

of the proposed rule. Originally, that 

section as proposed provided that CCC 

would determine a policy regarding the 

appropriate circumstances when 

business class rates would be acceptable 

and announce that policy in writing to 

all MAP Participants and on the FAS 

Web site. CCC has now articulated in 

§ 1485.17(c)(8) the limited 

circumstances under which CCC, after 

prior written approval, will reimburse 

air travel up to the business class rate. 

These circumstances are the following: 

(a) Regularly scheduled flights 

between origin and destination points 

do not offer economy class (or 

equivalent) airfare and the MAP 

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) An 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. Alternatively, in lieu of 

reimbursing up to the business class rate 

in such circumstances, 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. A stopover 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. All travel 

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. 

CCC believes that requiring CCC’s 

prior written approval will allow both 

MAP Participants and CCC to confirm 

that the Participants meet the 

circumstances that may justify air travel 

in excess of the full fare economy rate. 

Comment: One respondent stated its 

opposition to § 1485.17(e)(15), given 

that refundable airline tickets are often 

‘‘triple or more the cost of nonrefundable tickets’’. The respondent 

stated that this rule has the effect of 

substantially increasing overall travel 

costs under the program and also that 

the ability to claim an occasional nonrefundable airline ticket and associated 

fees, especially for an international 

buyer (whose travel is both less 

predictable and less accountable) would 

be vastly exceeded by the overall higher 

costs for the less restrictive tickets. 

The respondent also asked for 

clarification of ‘‘travel restricted by a 

U.S. government action’’ and asked if 

denial by U.S. officials of a visa request 

constituted a restriction by a U.S. 

Government action. 

Response: CCC disagrees. Section 

1485.17(e)(15) (now § 1485.17(d)(15)) 

provides that CCC will not reimburse 

the cost of any unused non-refundable 

airline tickets or associated fees, except 

where travel was restricted by U.S. 

government action or advisory. The 

commenter has provided no data that 

the effect of this proposed section 

would increase overall travel costs 

under MAP. This is not a change from 

the current MAP rule, and CCC does not 

have any reason to believe that this 

policy has increased costs to the MAP 

program beyond what it would have 

been had the commenter’s proposal 

been adopted. Finally, CCC notes that 

denial of a visa request would not 

constitute a restriction by a U.S. 

Government action. ‘‘Travel restricted 

by a U.S. government action’’ would 

include, for example, if all travel from 

a country was prohibited due to an 

epidemic. 

Comment: Several respondents 

questioned whether airline change fees 

are reimbursable. 

Response: Yes. Airline change fees are 

reimbursable provided that such fees 

meet certain conditions. CCC 

understands that, in order to most 

effectively use their MAP funding, 

Participants at times purchase airline 

tickets at a price that is less than the full 

fare economy rate. If a Participant 

purchases a ticket for less than the full 

fare economy rate and subsequently 

changes the ticket, a change fee may be 

incurred. CCC considers this change fee 

to be reimbursable up to the point that 

the sum of the ticket purchase price and 

any ticket change fees equal, but do not 

exceed, the full fare economy rate. To 

clarify, if the sum of the ticket purchase 

price and any ticket change fees exceed 

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the full fare economy rate, only the full 

fare economy rate is reimbursable. 

Section 1485.17(b)(8), § 1485.17(b)(17) 

and § 1485.17(c)(8) have been modified 

to specify that program-related 

international air transportation, 

including any fees for modifying the 

originally purchased ticket, will be 

reimbursed at a rate not to exceed the 

full fare economy rate, as allowed under 

the U.S. Federal Travel Regulations (41 

CFR parts 301 through 304). 

Comment: Seventeen respondents 

provided similar comments in reference 

to § 1485.17(c)(13), which stated that 

more flexibility is needed for electronic 

communications, which are becoming a 

more important part of the marketing 

mix for Participants, both branded and 

generic. Fourteen of the respondents 

stated that the cost of service is the 

largest component of the costs of most 

devices, such as smartphones, and it is 

recommended that CCC include as 

reimbursable a monthly allowance. 

They stated that as with giveaways 

and international travel, the 

determinant CCC statement may be 

added from time to time to allow for 

future flexibility. One respondent stated 

that it recommends that the cost of 

using these devices be included as 

reimbursable expenses and that the 

provisions of the regulations avoid the 

burdensome requirements of logging 

individual calls in minutes or sessions. 

Another commented that the regulations 

should provide for payment of monthly 

service fees for portable electronic 

devices for staff stationed overseas, 

provided the devices are primarily used 

for Participant market development 

purposes. 

Response: Section 1485.17(c)(13) of 

the proposed rule provided that, for 

generic promotions only, CCC would 

reimburse the cost of the purchase, 

lease, or repair of, or insurance 

premiums for, capital goods that have 

an expected useful life of at least 1 year, 

including portable electronic 

communications devices (including 

mobile phones, wireless email devices, 

personal digital assistants). That section 

does not deal with reimbursability of 

usage costs of electronic devices. CCC 

adopts § 1485.17(c)(13) as proposed 

(now § 1485.17(c)(12)). 

As previously discussed in response 

to a comment, CCC believes the 

reimbursability of the usage costs of 

various communications devices is 

already adequately addressed by the 

various provisions in the MAP final 

rule. Reimbursability of such 

communication costs depends on the 

circumstances under which the 

communication took place. CCC refers 

to its prior response on this issue. 

CCC has issued several MAP notices 

that provide further information on 

CCC’s current practice of reimbursing 

telephone calls. MAP Notice 03–006 

details CCC’s allowances for programrelated, emergency and personal 

telephone and internet expenses while 

on eligible travel. This Notice will 

remain on the FAS Web site. MAP 

Notice 99–009 (redundant with MAP 

Notice 03–006) and MAP Notice 98–017 

(discussing reimbursement of wireless 

phone airtime devoted to program 

activities and now redundant) will be 

removed from the FAS Web site. 

CCC disagrees with the commenter 

who requested that the regulations 

avoid the burdensome requirements of 

logging individual calls in minutes or 

sessions to claim reimbursement. CCC 

notes that all reimbursement claims 

must be substantiated by sufficient 

supporting documentation per 

§ 1485.21(d)(6). In order to claim 

reimbursement for usage costs, 

therefore, the MAP Participant must 

identify the costs to be reimbursed. 

Thus, as CCC has noted above, the 

monthly service charge for a caller usage 

plan with unlimited minutes must be 

incurred primarily in furtherance of an 

approved activity and the Participant is 

responsible for documenting that such 

plan was used primarily in further of an 

approved activity. In contrast, under a 

caller usage plan that charges by the 

minute, only charges for calls incurred 

in furtherance of an approved activity 

would be reimbursed under MAP and 

the Participant is responsible for 

detailing which calls are properly 

reimbursed with MAP funds. 

Comment: The respondents asked if 

§ 1485.17(e)(16) means that CCC will 

reimburse for audits of subcontractors. 

Response: No, all of the listings under 

§ 1485.17(e) (now § 1485.17(d)) are not 

reimbursable. 

Comment: One respondent stated that 

reimbursement for market research 

should be moved under subheading (b), 

thus allowing for reimbursement for 

market research under both generic and 

branded programs. 

Response: CCC disagrees with the 

suggested comment to make market 

research eligible for both branded and 

generic programs. CCC intends that 

market research funded under the 

program be available throughout the 

relevant industry, not only to a single 

company or cooperative. 

Comment: Four respondents provided 

similar comments in reference to 

§ 1485.17(c)(20) (now § 1485.17(c)(19)), 

which provides that for generic 

promotions only, CCC will reimburse 

the cost of STRE (sales and trade 

relations expenditures made on 

breakfast, lunch, dinner, receptions, and 

refreshments at approved activities, 

including miscellaneous courtesies such 

as checkroom fees, taxi fares and tips; 

and decorations for a special 

promotional occasion). The respondents 

requested that CCC clarify that STRE 

incurred in the United States at 

approved activities that demonstrated a 

positive impact on agricultural exports, 

be eligible for reimbursement under 

MAP. One commenter asked for further 

clarification of STRE regulations 

incurred in foreign and domestic 

markets. 

Response: Generally, STRE incurred 

outside of the United States is 

reimbursable. CCC, however, agrees that 

under certain limited circumstances, 

STRE may be critical to the success of 

an activity being carried out in the 

United States. Therefore, CCC has 

modified § 1485.17(c)(19) to clarify that 

STRE incurred outside the United States 

is reimbursable and that STRE incurred 

within the United States may be 

reimbursed under MAP upon prior 

written approval by CCC. As with all 

reimbursable expenses, such STRE must 

be incurred in conjunction with an 

approved MAP activity. 

In response to the request for further 

clarification of STRE, CCC has codified, 

in part, MAP Notice 97–016 in 

§ 1485.17(c)(19). That section now 

specifies that MAP Participants are 

required to use the American Embassy 

representational funding guidelines for 

breakfasts, lunches, dinners and 

receptions. MAP Participants may 

exceed Embassy guidelines only when 

they have received written authorization 

from the FAS Agricultural Counselor at 

the Embassy. The amount of 

unauthorized STRE expenses that 

exceed the guidelines will not be 

reimbursed. MAP Participants must pay 

the difference between the total cost of 

STRE events and the appropriate 

amount as determined by the 

guidelines. MAP Notice 97–016 will be 

removed from the FAS Web site. 

Comment: Seven comments were 

received stating miscellaneous 

courtesies such as checkroom fees, taxi 

fares and tips, and decorations for 

special purposes should not fall under 

Sales and Trade Related Expenses 

(STRE) and should be fully covered 

under MAP as separate expense 

categories. 

Response: Congress has given CCC 

discretion to operate and manage the 

MAP. In doing so, CCC must balance 

benefits to MAP Participants against 

limited financial resources. Under the 

current MAP regulations, STRE incurred 

outside of the United States is 

reimbursable for generic promotions 

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only. In response to other comments to 

the MAP proposed rule, CCC has 

modified § 1485.17(c)(19) to allow 

reimbursement of STRE incurred in 

conjunction with an approved generic 

promotion taking place within the 

United States upon prior written 

approval by CCC. CCC, however, 

disagrees with these commenters that 

miscellaneous courtesies should be 

considered separately from STRE. 

Comment: One respondent 

commented that it did not see language 

that includes authorization to use 

program funds to cover costs associated 

with participation in trade shows and 

fairs held within the United States. The 

respondent stated that many are 

international in nature and have very 

strong participation from overseas, and 

it recommended that the rules 

specifically include language to allow 

program funds to be used for Participant 

staff to participate in such trade shows. 

Response: CCC agrees with the 

commenter and has clarified this issue 

in § 1485.17(b)(7), § 1485.17(c)(8) and 

§ 1485.17(c)(24) of this final rule. It has 

been CCC’s practice to reimburse nontravel expenditures associated with 

retail, trade and consumer exhibits and 

shows held inside the United States 

under certain circumstances. 

Accordingly, CCC has codified, in 

relevant part, MAP Notice 09–006 in 

§ 1485.17(b)(7)) of the MAP final rule. 

Section 1485.17(b)(7) now provides, in 

part, that, for both generic and branded 

promotions, non-travel expenditures 

associated with retail, trade and 

consumer exhibits and shows held 

inside the United States are 

reimbursable, subject to certain 

conditions set out in § 1485.17(b)(7). In 

addition, the MAP final rule expands 

reimbursement to other related 

expenses. Specifically, § 1485.17(c)(24) 

now provides that, for generic 

promotions only, domestic travel 

expenditures for such exhibits and 

shows conducted in the United States 

are reimbursable, subject to certain 

conditions and upon prior written 

approval by CCC. Section 1485.17(c)(8) 

also now specifically allows 

reimbursement of international travel 

expenses for an exhibit or show held 

inside the United States, subject to 

certain conditions. For brand 

promotion, neither domestic nor 

international travel expenses are 

reimbursable for retail, trade, or 

consumer exhibits or shows held inside 

the United States. 

These sections allow reimbursement 

of eligible expenses related to exhibits 

and shows held inside the United States 

only if the exhibit or show is: (1) A food 

or agricultural show with no less than 

30% of exhibitors selling food or 

agricultural products, (2) an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 

15% of its visitors are from countries 

other than the host country, and (3) an 

exhibit or show that the MAP 

Participant has not participated in 

within the last three years using funds 

from a source other than the MAP. 

MAP Notice 09–006 will be removed 

from the FAS Web site. A new MAP 

notice will be posted on FAS’ Web site 

listing the retail, trade and consumer 

exhibits and shows held inside the 

United States for which MAP 

reimbursement is currently allowed by 

CCC. In addition, MAP Notice 97–004, 

which addresses when brand companies 

are allowed to use MAP funds for 

expenses associated with domestic trade 

shows, is now inconsistent with the 

MAP final rule and will be removed 

from FAS’ web site. 

Below is a chart summarizing the 

reimbursement rules for international 

exhibits and shows held outside and 

inside the United States: 

Exhibits and shows outside U.S. Exhibits and shows inside U.S. 

Generic promotion .... Non-travel expenditures: Reimbursable (§ 1485.17(b)(7)) .... Non-travel expenditures: Reimbursable subject to conditions (§ 1485.17(b)(7)). 

International travel expenditures: Reimbursable 

(§ 1485.17(c)(8)).

International travel expenditures: Reimbursable subject to 

conditions (§ 1485.17(c)(8)). 

Domestic travel expenditures: Reimbursable subject to 

prior written approval and subject to conditions 

(§ 1485.17(c)(24)). 

Brand promotion ....... Non-travel expenditures: Reimbursable (§ 1485.17(b)(7)) .... Non-travel expenditures: Reimbursable subject to conditions (§ 1485.17(b)(7)). 

International travel: Reimbursable up to 2 people 

(§ 1485.17(b)(8)).

International travel: Not reimbursable. 

Domestic travel: Not reimbursable. 

Comment: Twenty-five respondents 

provided similar comments stating that 

the phrasing was unclear in 

§ 1485.17(c)(24), which includes 

‘‘Expenditures associated with 

conducting international staff 

conferences.’’ The respondents 

requested that CCC clarify whether trade 

shows, seminars, educational training, 

international staff conferences, and 

meetings of international organizations 

are all eligible for reimbursement in the 

United States and overseas. Several of 

the respondents questioned if this 

included international conferences 

taking place in the United States and if 

so, whether that included travel. One 

respondent stated that it was unclear 

whether the international travel costs 

associated with having the industry’s 

trade representative attend the 

conference would be eligible. 

Twenty-five respondents commented 

in reference to § 1485.17(c)(25) and 

asked for clarification of ‘‘international 

organizations.’’ Three respondents 

proposed that the language be amended 

to include ‘‘and meetings of an 

international focus within the United 

States.’’ 

One stated that this section was 

confusing and implied that 

reimbursement for travel for trade 

shows, seminars, and educational 

training was authorized only for those 

events that are conducted outside the 

United States. The respondent asked for 

clarification on this and stated that it 

believed that was not the intent of CCC, 

as it would severely limit the use of 

MAP funds to educate foreign target 

audiences through courses and 

programs conducted in the United 

States. 

Response: CCC agrees that the 

phrasing in § 1485.17(c)(25) was unclear 

and has replaced it with new 

§§ 1485.17(c)(23)–(26). 

Regarding commenters’ request to 

clarify whether international staff 

conferences conducted in the United 

States and overseas are eligible for 

reimbursement, CCC observes initially 

that expenditures related to 

international staff conferences are 

reimbursable for generic promotions 

only. CCC has added a new 

§ 1485.17(c)(23), which provides that 

non-travel expenditures related to 

conducting international staff 

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conferences are reimbursable, regardless 

of whether the conferences are held in 

or outside the United States. These 

conferences are gatherings of the 

international staff of the MAP 

Participant. CCC further notes that 

international travel expenditures to 

such conferences for MAP Participants, 

whether held outside the United States 

or in the United States, are already 

reimbursable in accordance with 

§ 1485.17(c)(8). Thus, under 

§ 1485.17(c)(8), international travel costs 

associated with having the industry’s 

trade representative attend the 

Participant’s staff conference would be 

eligible if the individual is an employee 

or overseas contractor of the MAP 

Participant. Thus, in sum, for generic 

promotions only, both international 

travel expenditures and non-travel 

expenditures for international staff 

conferences are reimbursable, whether 

the conference is held outside the 

United States or in the United States. 

Domestic travel expenditures to attend 

such international staff conferences are 

not reimbursable. For brand promotions, 

no expenditures of any kind associated 

with international staff conferences are 

eligible for reimbursement. 

In response to commenters’ request to 

clarify whether trade shows conducted 

in the United States and overseas are 

eligible for reimbursement, CCC has 

added new § 1485.17(c)(24). That 

section allows reimbursement, for 

generic promotions only, subject to 

§ 1485.17(b)(18), of domestic travel 

expenditures related to international 

retail, trade and consumer exhibits and 

shows conducted in the United States 

upon prior written approval by CCC. 

CCC refers to its prior response to a 

similar comment above regarding 

eligibility of domestic travel and nontravel expenditures associated with 

participation in exhibits and shows held 

outside or inside the United States. 

In response to commenters’ request to 

clarify whether seminars and 

educational training conducted in the 

United States and overseas are eligible 

for reimbursement, CCC has added new 

§ 1485.17(b)(6) and new 

§ 1485.17(c)(25). Section 1485.17(b)(6) 

provides that, for both generic and 

brand promotions, non-travel 

expenditures associated with seminars 

and educational training, whether 

conducted inside or outside the United 

States, are reimbursable. Further, for 

generic promotions, international travel 

expenditures associated with seminars 

and educational training conducted 

inside or outside the United States are 

already reimbursable under 

§ 1485.17(c)(8). And, for generic 

promotions, new § 1485.17(c)(25) now 

reimburses domestic travel for seminars 

and educational training conducted in 

the United States. For brand 

promotions, no travel expenditures 

associated with seminars or educational 

training, whether conducted inside or 

outside the United States, are eligible 

for reimbursement. The chart below 

summarizes the reimbursement rules for 

seminars and educational training. 

Seminars and educational training outside U.S. Seminars and educational training inside U.S. 

Generic promotion .... Non-travel expenditures: Reimbursable (§ 1485.17(b)(6) ..... Non-travel expenditures: Reimbursable subject to conditions (§ 1485.17(b)(6)). 

International travel expenditures: Reimbursable 

(§ 1485.17(c)(8)).

International travel expenditures: Reimbursable 

(§ 1485.17(c)(8)). 

Domestic travel expenditures: Reimbursable 

(§ 1485.17(c)(25)). 

Brand promotion ....... Non-travel expenditures: Reimbursable (§ 1485.17(b)(6)) .... Non-travel expenditures: Reimbursable (§ 1485.17(b)(6)). 

International travel: Not reimbursable ................................... International travel: Not reimbursable. 

Domestic travel: Not reimbursable. 

CCC acknowledges the respondents’ 

request for clarification of the term 

‘‘international organizations’’ and their 

request to reimburse domestic travel to 

‘‘meetings of an international focus 

within the United States.’’ Due to 

difficulties in defining the criteria for 

eligible international organizations and 

meetings with an international focus, 

CCC has decided to eliminate the 

provision allowing reimbursement of 

domestic travel expenditures for a MAP 

Participant’s attendance at meetings of 

international technical organizations 

and declines to expand reimbursement 

to include ‘‘meetings with an 

international focus.’’ Unless such 

attendance falls within another covered 

category of reimbursement for domestic 

travel, domestic travel for these 

purposes will not be reimbursable under 

the MAP final rule. 

Finally, as noted previously, CCC has 

codified MAP Notice 06–002 in new 

§ 1485.17(c)(26). That section now 

allows, for generic promotion only, the 

reimbursement of domestic travel 

expenditures of a MAP Participant 

employee, a MAP Participant board 

member, or a state department of 

agriculture employee paid by the MAP 

Participant when such individual 

accompanies foreign trade missions or 

technical teams when such missions or 

teams are traveling in the United States. 

Such trade missions or technical team 

visits must be identified in the MAP 

Participant’s UES and must have been 

approved by CCC. MAP Notice 06–002 

will be removed from the FAS Web site. 

Comment: Ten respondents 

commented in reference to 

§ 1485.17(c)(31) and questioned if this 

included educational seminars in the 

United States and abroad. Three 

comments stated they supported the 

inclusion of activities that are intended 

to improve market access and therefore 

recommended the insertion of ‘‘or other 

appropriate activities’’ following 

‘‘educational training’’ and before 

‘‘designed to improve market access.’’ 

Response: CCC notes that 

§ 1485.17(c)(31) is now rendered 

redundant by § 1485.17(b)(6), 

§ 1485.17(c)(8), and § 1485.17(c)(25). 

Non-travel expenditures associated with 

seminars and educational training 

conducted inside or outside the United 

States are already reimbursable as noted 

above pursuant to § 1485.17(b)(6). 

International and domestic travel 

expenditures for such activities are 

reimbursable, for generic promotion 

only, pursuant to § 1485.17(c)(8) and 

§ 1485.17(c)(25). 

The intention of proposed 

§ 1485.17(c)(31) was to specifically 

permit reimbursement of educational 

seminars, whether in the United States 

or abroad, where such seminars are 

intended to address market constraints 

such as temporary or permanent trade 

barriers. CCC, however, agrees with the 

comments that other activities in 

addition to educational training can 

achieve this objective. Given that, and 

the fact educational training is already 

covered in other subsections of the MAP 

final rule, CCC consequently has 

modified § 1485.17(c)(31) (now 

§ 1485.17(c)(32)) to permit 

reimbursement for expenditures not 

otherwise prohibited from 

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reimbursement that are associated with 

an activity held in the United States or 

abroad designed to improve market 

access by specifically addressing 

temporary, permanent, or impending 

technical barriers to trade that prohibit 

or threaten U.S. exports of agricultural 

commodities. 

Comment: Twenty respondents 

commented in reference to proposed 

§ 1485.17(d) suggesting the sentence ‘‘A 

generic promotion activity may also 

involve the use of specific company 

names, logos or brand names’’ be 

clarified to read ‘‘specific U.S. company 

names, logos, or brand names.’’ The 

respondents stated that the absence of 

this clarification gives the impression 

that two foreign brands have to 

participate in activities, which would be 

impossible in the case of store brands. 

The respondents further commented on 

the phrase, ‘‘At least two U.S. 

companies participate.’’ Several of the 

comments stated that it was not often 

possible to garner two brands for 

participation in a generic promotion 

where brands are specifically identified. 

One respondent stated that this 

requirement was so onerous that it 

would significantly affect their ability to 

conduct promotions at retail. 

The respondents stated that some 

brands may choose not to participate; so 

this new regulation would limit the 

ability of a MAP Participant to 

undertake a generic promotion activity. 

They recommended that if the MAP 

Participant can demonstrate that all 

available brands are invited to 

participate then the final number of 

promotion participants would not have 

an impact on the eligibility of the 

activity for reimbursement. 

Response: CCC agrees with the 

respondents in regard to adding the 

clarification of ‘‘U.S.’’ to the reference to 

specific company names, logos, or brand 

names, and has modified the definition 

of generic promotion in § 1485.11 

accordingly. CCC has also added ‘‘U.S.’’ 

as a qualifier for promoting separate 

items from multiple U.S. companies 

under a generic promotion. However, 

CCC disagrees with the respondents in 

regard to requiring two brands for 

participation and will keep this 

requirement in the final rule to avoid 

any appearance of promoting a single 

brand under a generic promotional 

activity. The text of proposed 

§ 1485.17(d) has been moved into the 

definition of ‘‘generic promotion’’ in 

§ 1485.11. § 1485.17 has been reordered. 

Comment: One respondent 

recommended that this section be 

rewritten as follows: ‘‘A generic 

promotion activity may include the 

promotion of a foreign brand if the 

foreign brand uses the promoted U.S. 

agricultural commodity. A generic 

promotion activity may also involve the 

use of specific company names, logos, 

or brand names. However, in that case, 

the MAP Participant must ensure that 

all U.S. and/or foreign companies 

seeking to promote such U.S. 

agricultural commodity in the market 

have an equal opportunity to participate 

in the market and that at least two 

companies participate.’’ 

Response: CCC disagrees with the 

respondent, and the final rule will 

continue to reflect that a generic 

promotional activity may include the 

promotion of a foreign brand only if the 

foreign brand uses the promoted U.S. 

agricultural commodity from multiple 

U.S. suppliers. The text of proposed 

§ 1485.17(d) has been moved into the 

definition of ‘‘generic promotion’’ in 

§ 1485.11. § 1485.17 has been reordered. 

Comment: Fifteen respondents stated 

in reference to § 1485.17(d) that most 

foreign brands are developed for the 

local companies to add value and be 

competitive in the market and are not 

generally designed to be the way for 

U.S. products to enter the market. The 

objective should be to encourage foreign 

brands to incorporate U.S. agricultural 

commodities, but the phrase, ‘‘and is the 

primary market access to the targeted 

market for the U.S. agricultural 

commodity’’ appears to limit it. The 

respondents questioned what exactly 

does the phrase itself mean, and 

recommended that this section be 

rewritten or deleted altogether. 

Response: CCC believes that foreign 

brands are often very useful for 

increasing U.S. exports generically. 

Multiple foreign brands may use U.S. 

products, however, and a single foreign 

brand does not need to provide the 

‘‘primary market access to the targeted 

market.’’ Thus, CCC agrees with the 

respondents and has modified the 

proposed text of § 1485.17(d) to remove 

the phrase as requested. The text of 

proposed § 1485.17(d) has been moved 

into the definition of ‘‘generic 

promotion’’ in § 1485.11. § 1485.17 has 

been re-ordered. 

Comment: Sixteen respondents 

commented in reference to § 1485.17(d) 

that since Participants are currently 

allowed to promote foreign brands that 

are composed of U.S. commodities, this 

rule would place the U.S. companies at 

a disadvantage because Participants 

could promote their foreign competitors 

and not U.S. companies. The 

respondents suggested removing this 

language to open it up to Participants 

promoting U.S. company names, logos, 

or brand names that compete with 

foreign brands in their market. 

Response: CCC believes that 

§ 1485.17(d) in the proposed rule has 

been misunderstood in reference to the 

promotion of a foreign brand. Promoting 

a foreign brand constitutes a generic 

activity promoting the U.S. commodity 

because the foreign brand uses the 

promoted commodity from multiple 

U.S. suppliers. In contrast, promoting a 

single U.S. brand would constitute a 

branded activity. While § 1485.17(d) 

specifically states that a generic 

promotion activity may also involve the 

use of multiple specific U.S. company 

names, logos, or brand names, such 

branding must meet the conditions of 

§ 1485.17(d), which ensures that the 

activity remains ‘‘generic’’. The text of 

proposed § 1485.17(d) has been moved 

into the definition of ‘‘generic 

promotion’’ in § 1485.11. Section 

1485.17 has been re-ordered. In 

addition, as discussed in the response to 

a prior comment, CCC deleted the 

requirement that generic promotion 

activity may include the promotion of a 

foreign brand only if the foreign brand 

is the primary market access to the 

targeted market for the U.S. agricultural 

commodity. 

Comment: In reference to § 1485.17(d) 

fourteen respondents provided similar 

comments in regard to food service 

promotions. Several stated that 

generally food service operators rely on 

one U.S. supplier and the U.S. product 

is promoted as part of the food service 

item, identifying the U.S. origin but not 

the brand. The new regulation states, ‘‘a 

generic promotion activity may include 

the promotion of a foreign brand if the 

foreign brand uses the promoted U.S. 

agricultural commodity from multiple 

U.S. suppliers’’. The respondents stated 

this is not always achievable and they 

recommend recognizing the broad 

generic parameters achieved within the 

context of the entire activity (food 

service/retail/bakery, etc.) within a 

market. 

Response: CCC disagrees. CCC does 

not consider the promotion of a foreign 

brand that uses only a single supplier to 

be generic promotion. The text of 

proposed § 1485.17(d) has been moved 

into the definition of ‘‘generic 

promotion’’ in § 1485.11. Section 

1485.17 has been re-ordered. 

Comment: One respondent 

commented in reference to 

§ 1485.17(e)(19) (now § 1485.17(d)(19)), 

which provides that membership fees in 

clubs and social organizations are not 

reimbursable. The respondent asked for 

clarification whether fees paid to a 

professional industry-related 

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organization would be eligible for 

reimbursement. 

Response: CCC intends that fees paid 

to a professional, industry-related 

organization would be eligible for 

reimbursement, and has added new 

§ 1485.17(c)(33) to include such 

language for generic promotions only. 

Membership fees for clubs and social 

organizations remain ineligible. 

Comment: Three respondents stated 

that § 1485.17(e)(26) (now 

§ 1485.17(d)(26)) conflicts with 

§ 1485.17(c)(23) (now § 1485.17(c)(22)) 

and recommended that this be amended 

by adding ‘‘except as noted at 

§ 1485.17(c)(23).’’ 

Response: CCC agrees with the 

respondents’ comment and has 

amended new § 1485.17(d)(26) to 

reference § 1485.17(c)(22). 

Comment: Seventeen respondents 

commented in reference to 

§ 1485.17(e)(27) and suggested the 

phrase ‘‘negative comparison’’ be 

removed. One respondent suggested that 

if CCC believed that the concept needs 

to be addressed then the phrase should 

be replaced with ‘‘derogatory’’. Another 

questioned whether if a product from 

one MAP Participant has a better 

functionality in an end product than 

that of another MAP Participant, can 

such statement not be made. Another 

respondent stated that it was unclear as 

to the definition of ‘‘negative 

comparison’’ and questioned if this 

regulation only refers to comparing a 

U.S. source of the competitive product 

as compared to a local source or making 

a generic statement that does not 

reference national origin. This 

respondent requested that this 

regulation be clarified to permit valid 

comparisons of a promoted product 

with that of a locally produced or 

generically stated product. One stated 

that the term ‘‘negative’’ was too general 

and also stated that it was not possible 

to discuss advantages of one of its 

products without suggesting something 

negative about some of its competitors’ 

other products. Two respondents stated 

that the words ‘‘negative comparison’’ 

may be too restrictive a term if it 

prevents the forthright statement of facts 

and comparison of functionality and 

relative value of various commodities 

and products in a given use. Several 

recommended revising this section by 

removing the words ‘‘negative 

comparison.’’ 

Response: CCC agrees with the 

comments requesting the removal of the 

phrase ‘‘negative comparison’’ and with 

the comment asking to substitute 

‘‘derogatory’’ in its place. CCC has 

modified § 1485.17(e)(27) (now 

§ 1485.17(d)(27)) accordingly to prohibit 

reimbursement of any expenditure on 

an activity that includes any derogatory 

reference or comparison to other U.S. 

agricultural commodities. 

Comment: Four respondents 

commented on § 1485.17(e)(28), which 

provides that CCC will not reimburse 

the cost of any expenditure on an 

activity that contradicts U.S. foreign 

policy. Respondents stated that it was 

not clear how the exact standard of U.S. 

foreign policy is to be determined and 

what constitutes a contradiction of that 

policy. One stated that the regulation 

was too vague. Another stated that it 

agreed with the spirit of the regulation 

but were unsure how it should 

determine if it was contradicting U.S. 

foreign policy. The respondents 

recommended further clarification. 

Response: CCC agrees with the 

respondents that the U.S. foreign policy 

that applies to MAP Participants is not 

clearly articulated in the regulation. 

Moreover, independent regulations and 

Presidential Executive Orders setting 

out foreign policy related to specially 

designated nationals and other 

economic trade sanctions already apply 

to MAP Participants independent of the 

MAP final rule. Accordingly, CCC has 

deleted § 1485.17(e)(28) from the final 

rule. 

Comment: Two similar comments 

were made in reference to § 1485.17(f). 

One respondent stated that it supports 

the applicability of the GS–15 Step 10 

salary cap as it relates to non-U.S. 

citizens; however, it stated in the case 

of contractors (U.S. citizens or non-U.S. 

citizens), application of this pay scale 

should be left to the discretion of the 

Participant. The respondent stated that 

adherence to the pay scale does not 

relieve Participants from having to 

competitively bid the position; since the 

Participant will have to competitively 

bid the position, the Participant should 

be allowed to pay and be reimbursed for 

the bid amount, which is a 

compensation amount that is reasonable 

for the market. Another respondent 

stated that this method of rate-setting is 

unfair to companies in high cost regions 

of the world and that it benefits those 

located in less expensive areas, 

especially third-world countries. 

Response: § 1485.17(f) (now 

§ 1485.17(e)) refers to employees or 

contractors who are hired to act as 

employees, rather than contractors hired 

to undertake a specific activity. Thus, 

this is not a bidding situation. CCC has 

modified the final rule to clarify that the 

type of contractor subject to § 1485.17(e) 

are ‘‘contractors who are hired to act as 

employees.’’ If a MAP Participant 

chooses to employ an employee or 

contractor at a salary rate higher than is 

permissible in this section, then the 

MAP Participant must pay for the excess 

in compensation itself. 

Comment: Fourteen respondents 

commented in reference to § 1485.17(g) 

stating that since this sentence appears 

in the middle of the section, it is unclear 

as to what it applies. The respondents 

suggested that this be moved to the last 

item under the section. 

Response: CCC confirms that 

§ 1485.17(g) (now § 1485.17(j)) refers to 

all of § 1485.17. CCC agrees with the 

comment and has modified § 1485.17(j). 

That subsection now states ‘‘CCC may 

determine, at CCC’s discretion, whether 

any cost not expressly listed in 

§ 1485.17 will be reimbursed.’’ 

Sec. 1485.18 Reimbursement 

Procedures 

Comment: One respondent 

commented in reference to 

§ 1485.18(a)(5) that the requirement that 

claims for reimbursement include the 

applicable cost category greatly 

complicates the accounting process for 

Participants. The respondent stated that 

unless CCC has some practical need for 

cost category information, it 

recommended eliminating that reporting 

requirement. 

Response: CCC disagrees. The 

requirement that claims for 

reimbursement include cost category is 

not a new requirement. Moreover, this 

information is necessary as CCC is often 

asked by Congress to report 

expenditures by cost category. 

Sec. 1485.19 Advances 

CCC received 45 comments in regard 

to advances. 

Comment: Fifteen respondents 

provided similar comments in reference 

to § 1485.19(b). Each respondent 

recommended that language be included 

about the ability to apply for an advance 

in the current year if there is an 

outstanding advance from the previous 

year. The respondents stated that with 

the ability to apply for an advance for 

up to 3 months after the end of a 

program year this clarification is 

needed. They also stated that this was 

not spelled out in the new regulations 

and might be confusing to newer 

Participants. 

Response: CCC does not believe it is 

necessary to include language about the 

ability to apply for an advance while 

there is an outstanding advance from 

the previous year. In the proposed rule, 

CCC removed the current rule’s 

requirement that no advance will be 

made if an advance from a previous 

program year is still open. Thus, CCC 

believes § 1485.19(b) of the proposed 

rule, which does not contain any 

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prohibitions on a MAP Participant’s 

request for an advance (except to require 

that such Participant meet the criteria 

for advance payments set forth in the 

applicable parts of this title, e.g., parts 

3015, 3016, 3019), as written, allows 

Participants to apply for an advance in 

the current year if there is an 

outstanding advance from the previous 

year. In addition, CCC notes that the 

proposed rule already makes clear that 

a Participant may apply for an advance 

for up to 3 months after the end of its 

program year. The proposed rule 

provides, in part, that ‘‘CCC will not 

approve any request for an advance 

submitted later than 3 months after the 

end of a MAP Participant’s program 

year.’’ 

Comment: Four respondents 

commented regarding security in 

reference to § 1485.19(b). Two of the 

respondents requested clarification as to 

what circumstances would require 

submission of security and what type of 

security would be expected. One 

commented that the regulation was very 

vague and stated that they felt that a 

Participant capable of ‘‘fronting 

security’’ may not need an advance. 

Response: Section 1485.19(b) 

provides, in part, that ‘‘[i]f CCC 

approves the request, prior to making an 

advance, CCC may require the MAP 

Participant to submit security in a form 

and amount acceptable to CCC to 

protect CCC’s financial interests.’’ 

USDA’s uniform federal assistance 

regulations, in 7 CFR § 3015.17(a), 

already provide that ‘‘[i]f the recipient is 

not a unit of government, the awarding 

agency may require the recipient to 

carry adequate fidelity bond coverage 

where the absence of coverage for the 

grant-supported activity is considered as 

creat[ing] an unacceptable risk.’’ 

Similarly, USDA’s uniform 

administrative requirements for grants 

and agreements with nonprofit 

organizations, in 7 CFR § 3019.21(d), 

provide that ‘‘[t]he Federal awarding 

agency may require adequate fidelity 

bond coverage where the recipient lacks 

sufficient coverage to protect the 

Federal Government’s interest.’’ The 

proposed MAP rule explicitly observed 

that 7 CFR parts 3105 and 3109 apply 

to the MAP and MAP Participants (to 

the extent that they do not directly 

conflict with the MAP final rule). Thus, 

to the extent that CCC needs to take 

precautions to protect the federal 

government’s interests, USDA’s uniform 

regulations already provide a way for 

CCC to do so. 

To accommodate the respondents’ 

request to clarify what circumstances 

would require submission of security 

and what type of security would be 

expected, CCC has decided to delete the 

sentence from § 1485.19(b) quoted above 

and to add to the end of § 1485.19(b) the 

following: ‘‘When approving a request 

for an advance, CCC may require the 

MAP Participant to carry adequate 

fidelity bond coverage when the absence 

of such coverage is considered to create 

an unacceptable risk to the interests of 

the MAP. 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 MAP; 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.’’ Thus, CCC will make a 

determination, based on the applicable 

facts and circumstances presented by a 

particular MAP Participant’s advance 

request, whether the MAP Participant 

must obtain fidelity bond coverage and 

in what amount. 

Comment: Twenty-five respondents 

made similar comments in reference to 

§ 1485.19(c). Fifteen stated that the 

requirement for a quarterly financial 

statement to CCC for all funds advanced 

and all interest earned is onerous. These 

respondents further stated that an 

annual statement should suffice. Six of 

the comments received recommended a 

waiver of interest for smaller advances. 

Four of the respondents stated that 

Participants are expected to pay all 

expenses in advance of reimbursement 

and that the financing of these costs are 

significant and dramatically exceed any 

potential revenue generated by interest 

income therefore they specifically 

oppose this rule. 

Response: CCC agrees that requiring a 

quarterly statement on advances is 

unnecessary, given the fact that such 

information should be readily available 

in the UES system. Accordingly, CCC 

has deleted the last sentence from 

§ 1485.19(c) requiring the submission of 

a financial statement. 

Sec. 1485.20 Employment Practices 

CCC received 20 comments in regard 

to this section. 

Comment: Twenty respondents 

commented in reference to § 1485.20(a), 

which requires that MAP Participants 

enter into written contracts with all 

employees and that all terms, 

conditions, and related formalities of 

such contracts conform to governing 

local law. The respondents stated that 

this rule was onerous and 

counterproductive, and that they 

opposed this rule. 

Response: CCC disagrees that this rule 

is counterproductive or onerous. CCC is 

aware of several cases of MAP 

Participants being involved in lawsuits 

involving the Participant’s overseas 

employees. The written employment 

contract protects Participants’ and 

CCC’s interests. Furthermore, in order to 

properly perform its compliance and 

monitoring functions, CCC requires 

documentation to support all MAP 

expenditures. The written employment 

contract provides such documentation 

for overseas employees. 

Comment: Fourteen respondents 

asked if the intent was to require 

employment contracts with MAP 

Participant employees in foreign 

locations and suggested CCC restate this 

to be clear. Two questioned if this was 

intended for foreign staff only and 

stated that contracts would limit both 

the flexibility of the employer as well as 

employee and provide a much more 

difficult environment in cases of 

unsatisfactory performance by an 

employee. They also stated that it could 

lead to substantially higher costs for 

Participants. One commented that all of 

the 50 states are ‘‘at-will employment 

states’’ and that this doctrine covers 

employment practices for MAP 

Participants with domestic U.S. staff. 

Two respondents commented that 

written contracts should only be 

required by CCC in reference to 

employees paid for with MAP funds. 

Response: CCC intends that this 

section refers to the employment of 

overseas employees who are paid in 

whole or in part with MAP funds and 

has modified this section accordingly to 

require ‘‘written contracts with all 

overseas employees who are paid in 

whole or in part with MAP funds.’’ CCC 

disagrees with the comment that 

contracts would limit the employer’s 

and employee’s flexibility and make it 

more difficult to let go of an 

unsatisfactory employee. A written 

employment contract would not 

eliminate the ability of employers to fire 

employees at will if the contract 

includes an at-will clause. Similarly, an 

employment contract can be written to 

reflect the flexibility desired by the 

parties to the contract. 

Sec. 1485.21 Financial Management 

CCC received 18 comments in regard 

to this section. 

Comment: Sixteen respondents 

provided comments in regard to 

§ 1485.21(c). Fourteen of the 

respondents stated that the record 

retention policy is modified to delete 

the 5-year requirement without 

specifying the required retention period. 

They stated that they assumed it was 

included in 7 CFR part 1, subpart A— 

Official Records, but questioned the 

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point of referencing this part when the 

required retention time could be stated 

here. 

One respondent commented that there 

were several references in this section 

and others to ‘‘applicable parts of this 

title’’ and stated that was very vague. 

They asked CCC to clarify the reference 

more precisely. Another respondent 

stated they believed § 1485.21(c) 

pertained to employment records for 

non-U.S.-based employees and asked 

that the regulation be restated to clarify 

this. 

Response: CCC agrees with the 

respondents’ recommendation of an 

explicit statement of the required 

retention time. 7 U.S.C. § 5662 requires, 

in part, that MAP Participants maintain 

all records concerning a program 

transaction for a period not to exceed 5 

years after completion of the program 

transaction, and to permit the Secretary 

to have full and complete access, for 

such 5-year period, to such records. CCC 

has modified § 1485.21(c) accordingly to 

require retention of all records 

concerning a MAP program transaction 

for a period of 5 years after completion 

of the program transaction, and to 

permit CCC to have full and complete 

access, for such 5-year period, to such 

records. Additionally, in response to the 

comment questioning whether 

employment records had to be retained 

only for non-U.S.-based employees, CCC 

has modified § 1485.21(c) to explicitly 

state that records shall include all 

documents related to employment of 

any employees whose salaries are 

reimbursed in whole or in part with 

MAP funds, whether such employees 

are based in the United States or 

overseas. 

In response to the comments that refer 

to ‘‘applicable parts of this title’’ in the 

MAP final rule are vague, CCC refers to 

its prior response to a similar comment. 

Comment: One respondent referenced 

§ 1485.21(d)(6) and asked for 

clarification of the term ‘‘receipted paid 

bills.’’ They stated in the past 

‘‘stamped’’ paid bills were not 

considered an acceptable form of proof 

of payment and that instead there had 

to be evidence of a financial transaction 

which involved a third party such as a 

bank. 

Response: Receipted paid bills means 

bills for which receipt of payment has 

been confirmed in writing by the payee. 

This language has not been changed 

from the current regulation. CCC has not 

changed its past practice. CCC believes 

this term is well understood and does 

not believe it is necessary to codify any 

clarification. 

Comment: One respondent 

commented on § 1485.21(d)(7), which 

requires MAP Participants to maintain 

documentation supporting 

contributions. Such documentation 

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. 

The respondent stated that although the 

required documentation referenced in 

this section was relatively easy for a 

MAP Participant to provide, it was 

unreasonable to expect this level of 

detail in reports from the U.S. industry. 

Response: CCC disagrees. In order to 

properly perform its compliance and 

monitoring functions, CCC requires 

documentation to support all MAP 

contributions. If U.S. industry 

expenditures cannot be supported by 

adequate documentation, such 

expenditures will not count as eligible 

contributions. This language has not 

been changed from the current 

regulation. 

Sec. 1485.22 Reports 

CCC received four comments in 

regard to § 1485.22. One comment 

supported the proposed rule. CCC’s 

responses to these comments are below. 

In addition, CCC has modified 

§ 1485.22(e) to clarify that CCC can 

require a MAP Participant to submit an 

A–133 audit only when CCC is 

designated the cognizant agency for 

audit. 

Comment: One respondent 

commented on § 1485.22(a), stating that 

the format currently used to report 

contributions requires identification of 

amounts by cost category and source, 

not by activity code. The respondent 

stated that to track expenditures by 

activities would be burdensome, and it 

recommended that CCC retain the 

current format for reporting 

contributions. 

Response: CCC agrees with the 

respondent and has modified the 

section accordingly to delete the 

requirement to identify contributions by 

activity. 

Comment: Two respondents 

commented in reference to § 1485.22(b), 

stating that in many cases, 

documentation of travel and travel 

expenses were not received by the 

Participant until well beyond the 

proposed 45 day period after travel. The 

respondents proposed that the reference 

to ‘‘completion of travel’’ be replaced 

with ‘‘submission of claims for travel 

expenses.’’ 

Response: CCC disagrees with the 

respondent. Travel expense information 

is not required in trip reports. Moreover, 

this provision has been in place for at 

least 15 years, and reporting has become 

easier with the improvement in 

electronic technologies. 

Sec. 1485.23 Evaluation 

In reference to § 1485.23(b), CCC 

received six comments supporting the 

change in requirements for submission 

of the evaluation report from 3 months 

to 6 months. They stated this change 

will result in an improved ability to 

more accurately report the results of 

their activities. 

Sec. 1485.24 Compliance Reviews and 

Notices 

CCC received 107 substantive 

comments in reference to § 1485.24. 

CCC has also deleted the reference to ‘‘a 

notice of delinquency’’ from 

§ 1485.24(e)(2). Pursuant to 7 CFR part 

1403, when a debt is due CCC, only an 

initial written demand for payment is 

provided to the debtor. 

Comment: Fifteen respondents 

recommended that CCC develop and 

publish a realistic timeline for MAP 

Participants to come into compliance 

with the new regulations after the 

effective date. The respondents stated 

that compliance with the contracting 

guidelines and anti-fraud requirements 

requires a reasonable length of time. 

Response: CCC has delayed the 

effective date of the final rule until the 

MAP Participant’s 2013 program year 

(i.e., either 01/01/2013 or 07/01/2013). 

MAP Participants may, however, 

voluntarily choose to comply with 

§ 1485.15(a)–(b), § 1485.29(d) and 

§ 1485.31(a)(1) of the final rule in their 

2012 program year. 

In subsequent program years after 

2013, a new MAP Participant, including 

a former Participant that did not 

participate in the previous program 

year, will be required to submit its 

initial brand program operational 

procedures (as applicable), contracting 

guidelines and anti-fraud program as set 

forth in its approval letter. Returning 

MAP Participants will be required to 

submit their brand program operational 

procedures (as applicable) and antifraud program, as set forth in their 

approval letters. 

Comment: Twenty-two respondents 

stated their concern in reference to 

§ 1485.24(d). The respondents stated 

that they were concerned that the 

proposed rule states ‘‘the fact that a 

compliance review has been conducted 

by USDA staff does not signify that a 

MAP Participant is in compliance with 

its program agreement, approval letter 

and/or applicable laws and 

regulations.’’ 

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Response: This language is included 

to signify that a compliance review may 

not identify all occasions in which a 

Participant is out of compliance. The 

fact that a compliance review had 

occurred and did not uncover the noncompliant action is not a defense to any 

subsequent determination by CCC that 

the Participant is not in compliance 

with its program agreement, approval 

letter and/or applicable laws and 

regulations. Similarly, a future 

compliance review may include 

findings that were not identified in a 

previous review, although similar noncompliant actions may have occurred 

during the time period covered by the 

previous review. 

Comment: Fifteen respondents 

questioned how a Participant can be 

assured that it is in compliance with the 

MAP program if a compliance review 

cannot be used as a basis for 

establishing program compliance. 

Another respondent commented that 

§ 1485.24(d) seems to imply that a 

compliance review means only that the 

auditor has not found anything—yet. 

One respondent stated that when a 

Participant has acted in good faith, the 

determination long after the fact that a 

given practice was in error should not 

cause CCC to re-open previously 

audited expenditures for reimbursement 

to CCC. Several of the respondents 

stated that a successful review should 

be considered confirmation that a 

Participant is in compliance with its 

program agreement, approval letter and/ 

or applicable laws and regulations. They 

questioned what value a compliance 

review has if it doesn’t attest to a 

Participant’s compliance. 

Two respondents commented that the 

problems with this language are further 

compounded by the current rarity of 

reviews and the extended length of time 

it takes to receive the official concluding 

letter. Fourteen comments stated that 

the compliance staff should develop an 

approach that would be sufficient to 

cover all areas of the program and give 

all Participants (MAP Participants and 

USDA staff) a sense of confidence that 

a thorough review has been achieved. 

Response: CCC disagrees. When 

requesting and accepting MAP funding, 

MAP Participants become responsible 

for the effective control over all funds, 

property, and other assets they receive 

from the federal government. MAP 

Participants must act accordingly and 

institute their own internal controls for 

safeguarding these funds. 

CCC has a similar duty to ensure 

public funds are properly expended. 

Compliance reviews are one way in 

which CCC discharges, in part, this 

duty. The purpose of such reviews is to 

give assurance to CCC, not MAP 

Participants. These reviews are not 

comprehensive evaluations for 

Participants regarding their own 

internal controls and systems. 

Moreover, even the most stringent 

review would not necessarily bring 

about CCC’s complete confidence that a 

Participant’s program did not include 

any non-compliant actions. As an 

example, fraudulent behavior by a MAP 

Participant’s contractor may initially 

appear to be completely compliant upon 

review of well-crafted fraudulent 

documentation. A subsequent 

whistleblower complaint, however, may 

reveal the fraudulent activity. It is 

simply not possible for CCC to confirm 

that an entire program is in compliance 

for any MAP Participant, much less for 

all MAP Participants. 

In short, whether or not CCC’s 

compliance staff conducts a compliance 

review of a MAP Participant’s program 

and regardless of the outcome of that 

review, the Participant retains the 

ultimate responsibility, as a result of 

having accepted federal funds, for 

running its program in compliance with 

all applicable laws and regulations. 

Comment: Fourteen respondents 

proposed that additional language be 

added to this section, stating, ‘‘Should 

USDA staff determine that a MAP 

Participant is out of compliance, the 

MAP Participant will be required as in 

(b) and (c) of this subpart to return to 

CCC the amount of funding deemed to 

have been inappropriately spent for the 

reviewed program year. Notice will be 

made of the particular error and shared 

with all MAP Participants. A pattern of 

this error may be noted but the MAP 

Participant will only be required to 

reimburse CCC for the compliance 

finding resulting from the current 

review and at the time the finding was 

made and going forward and not liable 

for previously un-reviewed and 

undiscovered findings.’’ 

Response: CCC disagrees with this 

comment. CCC does not agree that all 

compliance findings are appropriate to 

share with other MAP Participants. 

While compliance findings often are the 

results of errors or misunderstandings, 

occasionally compliance findings 

involve intentional actions taken to 

violate the regulations. Such actions are 

often covered up by the perpetrator, and 

are sometimes not discovered through 

normal compliance reviews. CCC will 

continue its current practice of 

providing notice to MAP Participants of 

patterns of errors or misunderstandings 

that it has discovered through 

compliance reviews and that it deems 

appropriate to share with all MAP 

Participants. Also, as noted in previous 

responses, CCC disagrees that MAP 

Participants should not be liable for 

previously undiscovered instances of 

noncompliance. 

Comment: Nineteen respondents 

commented in reference to 

§ 1485.24(e)(1) stating that the reduction 

in the amount of time for a Participant 

to respond to an audit finding from 60 

to 30 days was an unreasonably short 

period of time, an unwarranted 

reduction and an onerous requirement. 

Several stated that staff members are not 

always in-country to begin working on 

a response immediately and that 30 

days does not provide sufficient time for 

the Participant to research and develop 

an adequate response or appeal. 

Response: CCC concurs with the 

commenters that the reduction in time 

to respond may create an onerous 

requirement as Participants are often in 

travel status. Therefore, CCC has 

changed § 1485.24(e)(1)’s period of time 

within which a MAP Participant may 

submit a response to a compliance 

report or written notice back to 60 days. 

In addition, CCC has made a 

corresponding change to § 1485.24(b) 

and (c), whereby if a MAP Participant 

notifies CCC within 30 days of the date 

of the written compliance report or 

written notice that the Participant 

intends to file an appeal pursuant to 

§ 1485.24(e), the amount owed to CCC 

by the MAP Participant is not due until 

the appeal procedures are finished and 

CCC has made a final determination as 

to the amount owed. 

Sec. 1485.25 Failure To Make 

Required Contribution 

CCC received 17 comments in 

reference to § 1485.25. 

Comment: Sixteen respondents stated 

that they believed that the time to remit 

payment for failure to make required 

contributions should be 6 months after 

the program year ends, not 90 days. Two 

respondents proposed the contributions 

should be within 6 months in order to 

be consistent with the proposed rule at 

§ 1485.23(b), which states that 

evaluation results be submitted within 6 

months following the end of the 

Participant’s program year. They stated 

the evaluation process is an essential 

component in determining a MAP 

Participant’s contribution level and 

therefore proposed that § 1485.25 be 

amended to read, ‘‘a MAP Participant 

shall remit such payment within 6 

months after the end of the program 

year.’’ 

Response: CCC agrees that the time to 

remit payment should be 6 months, 

because the MAP Participant has 6 

months to develop its contribution 

report and may not realize it has fallen 

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short in contributions until the report is 

complete. Section 1485.25 has been 

modified accordingly. 

Sec. 1485.28 Ethical Conduct 

CCC received 21 comments in 

reference to § 1485.28. 

Comment: One respondent 

commented on § 1485.28(b), which 

states that ‘‘A MAP Participant may, 

however, collect check-off funds and 

membership fees that are required for 

membership in the MAP Participant.’’ 

The commenter also refers to 

§ 1485.28(c), which states, in part, that 

‘‘A MAP Participant shall not limit 

participation in its MAP activities to 

members of its organization.’’ The 

respondent stated the two sections 

appear to be contradictory and further 

questioned how a MAP Participant 

recruits members, if all companies must 

have equal access to programs and 

information regardless of their 

membership in the Participant 

organization. This respondent stated 

that additionally, as the companies that 

are members are contributing financial 

resources to satisfy the MAP’s 

contribution requirements, it is only fair 

that these companies derive some 

benefit over companies that are nonmembers. 

Nineteen respondents commented in 

reference to § 1485.28(c) stating that 

they would like to know what method 

a MAP Participant is to use to 

incentivize membership (thus achieving 

the broadest base) if no preference is 

permitted as a benefit of membership. 

They stated that, while not excluding 

anyone from participating, it is possible 

to give some limited preference, such as 

first notice of events, etc. Three of the 

respondents stated that § 1485.28(c) 

would require non-members to 

participate in their marketing program 

using their brand. These commentators 

state that a farmer-owned agricultural 

cooperative cannot permit non-members 

to participate in the cooperative’s 

marketing program using the 

cooperative’s brand. The respondents 

believed this proposed rule was in 

direct contradiction with these statutory 

requirements. 

One respondent suggested the 

regulation should state that all 

commercial entities must have equal 

opportunity to access program 

information funded by MAP, but that 

such opportunity is provided only 

through membership in a Participant 

organization. 

Response: Section 1485.28(b) and 

§ 1485.28(c) are not contradictory. 

Under § 1485.28(b), a MAP Participant 

may collect check-off funds and 

membership fees that are required for 

membership in the MAP Participant. 

Section 1485.28(c) prohibits a MAP 

Participant from limiting participation 

in its MAP activities to members of its 

organization. The MAP final rule does 

not require equal access to the MAP 

Participant’s non-MAP-funded programs 

and information. To make clearer that 

the requirement of open participation is 

limited to MAP activities, CCC is 

modifying § 1485.28(c) to require that 

Participants agree to ensure that their 

MAP-funded programs and activities are 

open to all otherwise qualified 

individuals and entities on an equal 

basis and without regard to any nonmerit factors. 

It is CCC’s intention that the benefits 

of the MAP should be made broadly 

available throughout the relevant 

agricultural sector. Not all MAP 

Participants are similarly structured, 

and some organizations are far more 

inclusive than others. Because CCC 

cannot, and would not desire to, 

instruct industry groups how to 

organize themselves, this requirement is 

placed on those organizations that 

choose to participate in the MAP. 

Participating organizations are free to 

charge reasonable and documentable 

administrative fees to non-members that 

participate in MAP-funded activities. 

CCC notes that § 1485.28(c) is not 

intended to require MAP agricultural 

cooperatives to allow non-members to 

participate in their marketing program 

using the cooperative’s brands. In 

response to this comment and the 

following comment, CCC has modified 

§ 1485.28(c) accordingly to explicitly 

provide that this provision does not 

apply to U.S. agricultural cooperatives 

when implementing their own brand 

program. 

Comment: One respondent asked that 

FAS clarify that § 1485.28(c) and 

§ 1485.28(d) would not apply to 

nonprofit U.S. agricultural cooperatives 

with their own brand program. If FAS 

determines otherwise with respect to 

the document disclosure provision 

§ 1485.28(c), the respondent asked that 

the provision be made clear that it 

allows for the redaction of businessconfidential information from any 

documents provided pursuant to the 

provision. 

Response: As noted above, CCC has 

modified § 1485.28(c) in response to a 

prior comment so that the provision 

does not apply to agricultural 

cooperatives promoting their own brand 

program. Furthermore, § 1485.28(d) 

does not deal with brand promotion, but 

speaks only to how MAP Participants 

select industry representatives to 

participate in generic MAP activities. 

CCC has also modified § 1485.28(d) to 

clarify that the provision applies only to 

generic activities. 

Sec. 1485.29 Contracting Procedures 

CCC received 69 comments in 

reference to § 1485.29. Responses are set 

forth below. 

Comment: Three respondents 

provided similar comments in reference 

to § 1485.29(b). One comment asked if 

this section applies to items paid with 

MAP funds and income generated from 

programs or only the former. Two 

questioned if the ‘‘small purchase 

threshold referenced in 7 CFR part 3019 

is set at $100,000, to whom do the 

contracting plan requirements apply for 

contracts above $25,000?’’ One 

respondent questioned what contracting 

compliance procedures were affected by 

this dollar threshold. 

Response: CCC intends that any use of 

income generated by MAP funded 

activities should be governed by the 

MAP regulation. CCC has modified 

§ 1485.32 accordingly to state that the 

Participant’s use of such revenue or 

refunds generated from MAP-funded 

programs shall be governed by 7 CFR 

Part 1485. Thus, § 1485.29 would apply 

to items paid, in whole or in part, with 

income generated from MAP programs. 

Regarding the questions related to the 

$100,000 small purchase threshold and 

the $25,000 contract requirement, CCC 

notes these are two different thresholds 

that relate to two different provisions in 

the MAP final rule. In addition, CCC 

notes that it has increased the $25,000 

threshold to $35,000 in the MAP final 

rule as discussed below in response to 

a different comment. 

Proposed § 1485.29(d) of the MAP 

final rule created a new requirement for 

MAP Participants to submit a 

contracting plan that lists each contract 

with an annual value of $25,000 or 

more. In the MAP final rule, CCC 

changed § 1485.29(d) to require that 

‘‘[e]ach MAP Participant shall submit to 

CCC, for CCC approval, written 

contracting guidelines for contracts that 

are funded, in whole or in part, with 

MAP funds. CCC’s approval of such 

contracting guidelines will remain in 

place until CCC retracts its approval in 

writing or new guidelines are approved 

that supersede them. Once approved by 

CCC, these contracting guidelines shall 

govern all of a Participant’s MAPfunded contracting involving contracts 

with an annual value of $35,000 or 

more.’’ Thus, all MAP Participants must 

establish written contracting guidelines 

for contracts that are funded in whole or 

in part by MAP funds and that have an 

annual value of $35,000 or more. CCC 

also modified § 1485.29(c) and (d) to 

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make clear that these provisions apply 

only to MAP-funded contracts. 

In addition to this requirement for 

written contracting guidelines, 

§ 1485.29(b) also provides that ‘‘[a] MAP 

Participant shall comply with the 

procurement standards set forth below 

and in the applicable parts of this title 

when procuring goods and services and 

when engaging in construction to 

implement program agreements (e.g., 

7 CFR Parts 3015, 3016, and 3019). For 

purposes of this subpart, the ‘‘small 

purchase threshold’’ referenced in 7 

CFR part 3019 is the ‘‘simplified 

acquisition threshold’’ established by 41 

U.S.C. § 134.’’ Thus, the small purchase 

threshold of $100,000 referenced in 

§ 1485.29(b) relates to those 

procurement standards set out in part 

3019 of this title, which sets out the 

uniform administrative requirements for 

nonprofit organizations. 

To illustrate, both 7 CFR part 3019 

and 7 CFR part 3016 contain 

procurement requirements, some of 

which are tied to the ‘‘simplified 

acquisition threshold’’ (previously ‘‘the 

small purchase threshold’’) previously 

set out at 41 U.S.C. § 403(11), now 

codified at 41 U.S.C. § 134. See, e.g., 

7 CFR § 3019.44(e), 7 CFR § 3016.36(d). 

This threshold was, at one time, 

$25,000. It was subsequently increased 

to $100,000 by statute. Because the 

current 7 CFR part 3019 has not been 

updated to reflect the increase in that 

threshold from $25,000 to $100,000 as 

set forth in 41 U.S.C. § 403(11), now 

codified at 41 U.S.C. § 134, CCC 

clarified the current $100,000 threshold 

in proposed § 1485.29(b). In response to 

these comments, however, CCC believes 

that, to account for possible changes to 

the simplified acquisition threshold that 

may occur in the future, it would be best 

if the final rule referred to the statute 

fixing the threshold rather than specify 

the currently applicable threshold. 

Accordingly, CCC has modified 

§ 1485.29(b) to refer to the threshold set 

at 41 U.S.C. § 134 rather than a $100,000 

threshold. 

Comment: Thirty-one respondents 

stated that if the requirement to submit 

contracting ‘‘plans’’ is retained, they 

proposed an increase to the annual 

contract value greater than the current 

$25,000. A suggestion was made for 

$100,000. Four comments stated that the 

total cost is often not known until the 

bidding is completed. They stated that 

this regulation was too intrusive and 

would lead to multiple re-submittals of 

the contracting plan to account for new 

and revised contracts. They stated that 

this policy should not require a listing 

up-front of all contracts expected during 

that plan year. 

Comment: CCC received thirty-one 

similar comments in reference to 

§ 1485.29(d). All respondents opposed 

the regulation as written. Fifteen 

respondents stated that they believed 

these contracting requirements should 

apply only to those contracts that are 

fully funded and reimbursable by MAP 

and not those that will be paid for with 

industry funds (contributions). Several 

respondents stated that the proposed 

rule was too onerous and that, at most, 

MAP Participants should be required to 

provide a description of contracting 

guidelines, not procedures that could be 

applied to different contracting 

situations. 

Comment: Eighteen respondents 

provided comments that ‘‘contracting 

guidelines’’ should be substituted for 

‘‘contracting plan’’ and that once a plan 

(guideline) is approved in any given 

year, it should not need to be 

reapproved, unless it changes in some 

fundamental way. 

Comment: Seventeen respondents 

stated their strong opposition to the 

proposed rule and stated that the rule 

presented a number of challenges, 

including that the decision to use a 

contractor may not be made until the 

award letter is received and individual 

projects are approved. They stated that 

the timing of the award cycle would 

make this proposed requirement 

impossible and create an onerous preapproval process that not only 

micromanages program implementation 

but would be impossible under the 

timelines by which the program 

currently operates. 

Comment: One respondent proposed a 

change in the wording in the following 

passage to read, ‘‘Prior to entering into 

any contracts during a program year, a 

MAP Participant must submit to CCC for 

CCC approval a written contracting 

(procedure manual).’’ The commenter 

then asked when the MAP Participant 

could anticipate receiving approval of 

their contracting procedure manual. 

Another proposed that at most FAS 

require that the Participant develop a 

description of contracting procedures 

that could be applied to different 

contracting situations and would remain 

applicable over multiple years. 

Comment: Fourteen respondents 

questioned on what basis anyone at CCC 

would be qualified to judge a 

Participant’s contracting plan. They 

stated conversely, if the judgment was 

only related to whether there was a plan 

or whether it was adequately updated, 

then what was the point? They stated 

that this set of requirements created the 

need for a parallel notification process 

as Participants will be forced to amend 

the plan with each new need. 

Comment: Fifteen respondents 

commented in reference to 

§ 1485.29(d)(1) stating that much of this 

section was covered by inference in 

§ 1485.28; so it should not need to be 

spelled out here. 

Comment: Three respondents stated 

they supported the regulation for 

requiring an annual documented 

evaluation for in-country representation 

in lieu of the current arbitrary process 

of rebidding every 3 years. 

Response: The proposed rule 

established a requirement for a 

contracting plan in § 1485.29(d) because 

CCC has received many questions about 

appropriate contracting procedures over 

recent years. The proposal was not 

meant to be an onerous requirement. 

Rather, it was meant to encourage MAP 

Participants to formalize their 

contracting methods and intentions for 

a given year and to give MAP 

Participants the opportunity to obtain in 

advance CCC review and pre-approval 

of the Participants’ contracting methods. 

CCC understands that the bulk of the 

opposition to this proposal stems from 

the requirement to list all contracts. CCC 

agrees that this is unnecessary and 

actually detracts from the intended 

purpose. CCC has accordingly modified 

§ 1485.29(d) to require that MAP 

Participants establish contracting 

guidelines to follow as various 

contracting situations arise. Individual 

contracts need not be identified. 

Moreover, CCC has removed the 

requirement that a MAP Participant 

must submit its contracting plan to CCC 

prior to entering into any contracts 

during the program year. Rather, the 

MAP final rule now provides that after 

CCC approves the initial contracting 

guidelines, such approval will remain in 

place until CCC retracts its approval in 

writing or new guidelines are approved 

that supersede them. As discussed 

above in response to a separate 

comment, MAP Participants shall 

submit their contracting guidelines to 

CCC as set forth in their approval letters. 

The MAP final rule continues to allow 

the MAP Participant to modify and 

resubmit these guidelines for reapproval 

at any time. 

CCC agrees that these contracting 

requirements should apply only to those 

contracts that are funded, in whole or in 

part, by MAP funds and not those that 

are paid for with industry funds 

(contributions). CCC has modified 

§ 1485.29(d) accordingly. CCC observes 

that this would encompass all contracts 

funded in whole or in part with MAP 

funds, which would include contracts 

with U.S.-based organizations that are 

retained to implement or assist with 

approved international market 

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development efforts, if such contracts 

were funded by MAP. 

CCC does not agree with the 

suggestions to increase the threshold of 

$25,000 to $100,000 for contracts that 

are to be submitted in contracting 

‘‘plans.’’ First, CCC notes that the 

requirement no longer requests 

contracts to be listed. Second, CCC 

observes that CCC chose the $25,000 

level in the proposed rule because that 

is the same threshold that CCC has 

maintained since 1996, as reflected in 

MAP Notice 05–005, for the contract 

competition requirement. Since 1996, 

CCC has required MAP Participants to 

conduct an appropriate form of 

competition at least every three years on 

all contracts valued at $25,000. CCC 

believes that the $25,000 level is an 

appropriate level not only for when 

competition should be conducted but 

also for determining what contracts 

should be subject to written contracting 

guidelines. However, in recognition that 

the $25,000 level should be adjusted for 

inflation, using the Department of 

Labor’s Bureau of Labor Statistics 

inflation calculator, CCC has increased 

the minimum level to $35,000, with the 

possibility of future increases through 

written guidance announced to MAP 

Participants via a MAP notice issued on 

FAS’ Web site. Section 1485.29(d) has 

been modified accordingly. CCC notes 

that MAP Notice 99–003 is now obsolete 

and will be removed from FAS’ Web 

site. 

CCC disagrees that the substance of 

§ 1485.29(d)(1) can already be inferred 

from § 1485.28 and need not be spelled 

out in § 1485.29(d)(1). 

In response to the comment asking 

when the MAP Participant should 

expect approval of its contracting 

procedures, CCC will try to complete its 

review of contracting guidelines within 

21 calendar days of receipt. 

Comment: A respondent suggested 

that if an activity is approved in a 

particular city that MAP Participants be 

required to at least offer qualified 

contractors in that city or country an 

opportunity to bid on the project. The 

commenter further stated that contractor 

lists should be obtained from the local 

post rather than requiring potential 

contractors to register on a Web site. In 

addition, the commentator stated that 

the post should review the activity 

before it begins. 

Response: While CCC requires open, 

fair, and competitive contracting 

practices, CCC cannot and does not 

deem it appropriate to instruct MAP 

Participants in appropriate methods for 

identifying potential contractors in 

every market in the world. In addition, 

some FAS Posts could not review every 

activity in their markets. 

Comment: Two respondents provided 

similar comments in reference to 

§ 1485.29(d)(3) and stated that they 

understood the rationale for this 

proposal was ensuring that contracting 

procedures were open, fair and 

competitive. They stated that there are 

exceptions, especially in the area of 

highly technical services where there is 

reasonable cause to allow the same 

individual to draft specifications as to 

bid on them. The respondents proposed 

that such circumstances be treated as a 

rare exception and as one of the 

‘‘various situations’’ for which ‘‘separate 

procedures’’ are developed as cited in 

§ 1485.29(d)(2), to ensure that such 

exceptional cases result in an open, fair, 

and competitive contract. 

Response: In response to the 

commenters’ requests, CCC has 

modified § 1485.29(d)(3) to provide that 

MAP Participants’ written contracting 

guidelines may detail special situations 

where the prohibitions in this 

subsection 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. As discussed 

above, CCC must approve or disapprove 

of MAP Participants’ contracting 

guidelines. 

Respondents question whether 

§ 1485.29(d)(2) authorizes MAP 

Participants to develop separate 

procedures that would allow the same 

individual to draft specifications to bid 

on the solicitation. Section 

1485.29(d)(2) does not directly address 

this issue. Consequently, as discussed 

above, CCC has modified § 1485.29(d)(3) 

instead. 

Comment: Six respondents stated that 

this section does not discuss 

requirements for contracts of less than 

$25,000 (now $35,000). 

Response: While the contracting 

guidelines required by § 1485.29(d) 

apply only to contracts with an annual 

value of $35,000 or more, contracts with 

an annual value of less than that 

threshold are still subject to the 

remaining provisions of the MAP 

regulations, including § 1485.29(a)–(c), 

as well as other procurement provisions 

of the applicable parts of this Title. For 

example, § 1485.29(c) indicates that all 

contracting should be fair, open, and 

competitive. 

Sec. 1485.31 Anti-Fraud Requirements 

CCC received 85 comments in 

reference to this section. 

Comment: Twenty-one respondents 

provided similar comments in reference 

to § 1485.31(a)(1), stating that the 

regulation as written was too intrusive 

and onerous. Several of the respondents 

recommended either removing this 

regulation altogether and/or treating it 

like Civil Rights training by developing 

course work based on what was 

developed for the anti-fraud course 

offered by Western U.S. Agricultural 

Trade Association. The respondents 

stated that FAS could then require all 

MAP Participant staff and board with 

fiduciary responsibilities to take the 

course and submit certification 

statements to that effect. 

Response: CCC disagrees. CCC’s 

position is that anti-fraud efforts should 

be more structured and intensive than 

in the past. Recent incidents indicate 

fraud has the potential to cause 

considerable losses to the government. 

In addition to the requirement that they 

develop a fraud prevention program, 

MAP Participants are highly encouraged 

to attend anti-fraud training courses. 

Comment: Seventeen respondents 

stated that if necessary, this plan should 

be developed once, submitted and 

approved and only be resubmitted if 

there has been some fundamental 

change. As with the contracting subpart, 

they questioned what the timing was for 

submission of the MAP Participant’s 

fraud prevention program and when the 

MAP Participant should expect the 

program’s approval. 

Three respondents asked for 

clarification on when the information 

needs to be submitted and if the review 

was to be done by an independent third 

party or if it could be done in house. 

Two respondents provided comments 

proposing that the annual submission 

take place outside of the annual UES 

application process or that it be 

completed as part of the regular 

compliance review process. 

Response: CCC disagrees that plans 

should only be re-submitted if there are 

fundamental changes to the plan. While 

an initial plan would not need to be 

rewritten every year, CCC expects MAP 

Participants to review their anti-fraud 

plans annually and to submit these 

plans each year, regardless of whether 

they have fundamentally changed. CCC 

has modified § 1485.31(a)(1) to make 

clear that MAP Participants should 

review their fraud prevention programs 

annually. While a plan may not change 

dramatically from one year to the next, 

CCC expects that annual reviews would 

yield the need for minor changes from 

time to time and expects to review the 

current applicable plan for each 

program year. It is not necessary that the 

plan be developed by an independent 

third party if the MAP Participant has 

internal expertise. 

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As stated above in response to an 

earlier comment, it is expected that a 

2013 MAP Participant should submit its 

initial anti-fraud program as directed in 

its approval letter. Thus, annual 

submission will take place outside of 

the UES application process. In 

subsequent program years, a new 

Participant, including a former 

Participant that did not participate in 

the previous program year, will be 

required to submit its initial anti-fraud 

program as set forth in its approval 

letter. For continuing annual 

submissions, MAP Participants will 

submit their plans as directed in their 

approval letters. CCC does not agree that 

the anti-fraud submission should be 

completed as part of the regular 

compliance review process. First, as 

noted above in response to a similar 

request related to operational brand 

procedures, the purpose of the CCC 

review is to approve a plan at the start 

of a program year, before the program 

begins operation. Compliance reviews 

look at what has historically happened. 

Moreover, during the compliance 

review, CCC may review the 

implementation of the plan, rather than 

the plan itself. 

In response to the comment asking 

when the MAP Participant should 

expect approval of its program, CCC will 

endeavor to complete its review within 

21 calendar days of receipt. 

Comment: Sixteen respondents 

questioned if a MAP Participant has 

multiple locations with accounting 

responsibilities, does the annual review 

have to include all locations or just the 

corporate headquarters where the 

financial consolidation occurs? 

Response: Because fraud can occur 

both at corporate headquarters and field 

offices, CCC expects anti-fraud reviews 

to encompass all of a Participant’s 

offices. 

Comment: One respondent 

commented that this section appears to 

apply to exclude brand participants. 

The respondent stated that the current 

fraud prevention program covered by 

A–133 covers this requirement, and 

therefore it asserted that this regulation 

was redundant and recommended that 

this regulation be eliminated or A–133 

should be eliminated. 

Response: The anti-fraud 

requirements are imposed on MAP 

Participants, not brand participants that 

participate in the MAP program through 

MAP Participants. CCC disagrees that 

§ 1485.31’s requirements are redundant 

with OMB Circular A–133. OMB 

Circular A–133 requires, in part, that 

subject entities (those who expend 

$500,000 or more in federal awards) 

have an audit conducted. Such entities 

must maintain appropriate internal 

controls. In contrast, the MAP final rule 

applies to all MAP Participants (not just 

those who expend $500,000 or more) 

and requires a specific proactive and 

preemptive fraud prevention program. 

One of the objectives of the fraud 

prevention requirement is to make MAP 

Participants more aware of the specific 

risk for brand participants to defraud 

them. The MAP requirements are in 

addition to, not in lieu of, the 

requirements of OMB Circular A–133. 

Comment: Two respondents 

questioned if the cost of fraud 

prevention review would be 

reimbursable. 

Response: CCC does not intend for 

anti-fraud efforts to be reimbursable 

with MAP funds. CCC has added 

§ 1485.17(d)(31) to clarify this. 

Comment: One respondent stated that 

it (the Participant) has adhered to an 

internal controls document which 

includes language on fraudulent 

behavior. It stated that it would like 

clarification of the new anti-fraud 

preparation policies to ensure that its 

policies adhere to MAP regulations. 

Response: While CCC may provide 

anti-fraud training and guidance in the 

future, given the differences in structure 

between classes of MAP Participants, as 

well as differences between individual 

MAP Participants, CCC does not believe 

CCC should dictate a single set of antifraud procedures or a model anti-fraud 

plan for all MAP Participants to use. 

The respondent may submit its internal 

controls document to CCC by the time 

stated in its approval letter or any time 

before that, at which time CCC will 

review this document and respond. 

Comment: One respondent 

commented that it did not feel that each 

Participant should be responsible for 

developing its own anti-fraud program 

and that this would result in the 

application of different security 

standards. This respondent stated it 

would be more efficient and more 

economical if CCC, with the assistance 

of an outside contractor, could develop 

a set of minimum anti-fraud procedures 

for all Participants to use. 

Response: While CCC may provide 

anti-fraud training and guidance in the 

future, given the differences in structure 

between classes of MAP Participants, as 

well as differences between individual 

MAP Participants, CCC does not believe 

CCC should dictate a single set of antifraud procedures or a model anti-fraud 

plan for all MAP Participants to use. 

Comment: Three respondents 

provided similar comments in reference 

to § 1485.31(a)(2). All three suggested 

that the language be modified to read, 

‘‘notify CCC promptly when any 

instances of fraud have been 

substantially determined.’’ 

Response: CCC disagrees with the 

respondents and believes CCC should be 

a part of any investigation early enough 

to determine if fraud has occurred. 

Sec. 1485.32 Program Income 

CCC received six comments in regard 

to this issue. 

Comment: One respondent stated that 

as an organization that conducts 

activities spanning more than one 

program year, it felt there were several 

challenges with this language. It stated 

that it does not see a way to comply 

strictly with the proposed language and 

further stated that it recommended that 

Participants be allowed to create a 

program reserve (at an agreed upon 

level) from participation fees, with the 

understanding that any funds above that 

level be remitted to CCC as they occur 

and that the reserve fund itself remit to 

CCC if/when the Participant terminates 

participation in the MAP program. 

Comment: Four respondents stated 

they strongly support the proposed 

revision. 

Response: Proposed § 1485.32 

allowed the MAP Participant to expend 

program income in furtherance of the 

MAP Participant’s approved MAP 

activities in the program year in which 

the program income was received. CCC, 

however, acknowledges that a MAP 

Participant’s program can be funded 

over a multi-year basis. Therefore, given 

that the grant period may be multi-year 

and certain activities may occur over 

more than one calendar year, CCC has 

accordingly modified § 1485.32 to allow 

MAP Participants to use program 

income in furtherance of approved MAP 

activities during the program period 

over which the MAP Participant may 

expend the MAP funds, regardless of the 

specific program year that the income 

was received. Thus, for example, if a 

MAP activity in program year 1 yields 

a net revenue in program year 2 in a 

3-year MAP grant, the MAP Participant 

should apply that revenue to MAP 

activities conducted in program year 2 

or 3. CCC does not believe that allowing 

MAP Participants to establish a reserve 

fund with program proceeds is 

appropriate. 

Sec. 1485.36 Paperwork Reduction 

Requirements 

CCC received three comments to this 

section. 

Comment: Three respondents 

recommended that CCC transition from 

solely paper recordkeeping of MAP 

related files to electronic recordkeeping. 

Response: CCC understands the 

respondents’ comments to refer to CCC’s 

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use of the UES, the standardized online 

Internet application used by entities to 

apply to any USDA market development 

program, including the MAP. MAP 

Participants currently use the UES to 

submit reimbursement claims, trip 

reports, and other information to CCC 

under the MAP. While CCC believes 

MAP Participants’ use of the UES 

effectively reduces costs and increases 

efficiencies, MAP Participants cannot 

transition solely from paper 

recordkeeping to electronic 

recordkeeping. The MAP final rule 

requires Participants to maintain 

records of expenditures and 

contributions to substantiate their MAP 

activities. Such records must include, 

inter alia, original receipts for all STRE 

(e.g., actual vendor invoices or 

restaurant checks) and any other 

program-related expenditure in excess 

of $75.00 (e.g., canceled checks, 

receipted paid bills, contracts or 

purchase orders, per diem calculations, 

travel vouchers, and credit memos). 

Where the original documentation is 

provided in paper, MAP Participants 

must maintain and make such paper 

documentation available for review for 

compliance and monitoring purposes. 

List of Subjects in 7 CFR Part 1485 

Agricultural commodities, Exports. 

For the reasons stated in the 

preamble, CCC amends 7 CFR part 1485 

as follows: 

PART 1485—GRANT AGREEMENTS 

FOR THE DEVELOPMENT OF 

FOREIGN MARKETS FOR U.S. 

AGRICULTURAL COMMODITIES 

■ 1. The authority citation for 7 CFR 

part 1485 reads as follows: 

Authority: 7 U.S.C. 5623, 5662–5663 and 

sec. 203, 402–403, Pub. L. 95–501, as 

amended, 92 Stat 1685 and sec. 1302, Pub. 

L. 103–66, 107 Stat. 330. 

■ 2. Subpart B is revised to read as 

follows: 

Subpart B—Market Access Program 

Sec. 

1485.10 General purpose and scope. 

1485.11 Definitions. 

1485.12 Participation eligibility. 

1485.13 Application process. 

1485.14 Application review and formation 

of agreements. 

1485.15 Operational procedures for brand 

programs. 

1485.16 Contribution rules. 

1485.17 Reimbursement rules. 

1485.18 Reimbursement procedures. 

1485.19 Advances. 

1485.20 Employment practices. 

1485.21 Financial management. 

1485.22 Reports. 

1485.23 Evaluation. 

1485.24 Compliance reviews and notices. 

1485.25 Failure to make required 

contribution. 

1485.26 Submissions. 

1485.27 Disclosure of program information. 

1485.28 Ethical conduct. 

1485.29 Contracting procedures. 

1485.30 Property standards. 

1485.31 Anti-fraud requirements. 

1485.32 Program income. 

1485.33 Amendment. 

1485.34 Noncompliance with an agreement. 

1485.35 Suspension, termination, and 

closeout of agreements. 

1485.36 Paperwork reduction requirements. 

Subpart B—Market Access Program 

§ 1485.10 General purpose and scope. 

(a) This subpart sets forth the general 

terms, conditions, and policies 

governing the Commodity Credit 

Corporation’s (CCC) operation of the 

Market Access Program (MAP). 

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

this subpart, other regulations of general 

application issued by the U. S. 

Department of Agriculture (USDA), 

including the regulations set forth in 

Chapter XXX of this title, ‘‘Office of the 

Chief Financial Officer, Department of 

Agriculture,’’ may apply to the MAP 

and MAP Participants, to the extent that 

these regulations of general application 

do not directly conflict with the 

provisions of this subpart. These 

include, but are not limited to: 

(i) 7 CFR part 1, subpart A—Official 

Records 

(ii) 7 CFR part 3—Debt Management 

(iii) 7 CFR part 15, subpart A— 

Nondiscrimination 

(iv) 7 CFR part 3015—Uniform 

Federal Assistance Regulations 

(v) 7 CFR part 3016—Uniform 

Administrative Requirements for Grants 

and Cooperative Agreements to State 

and Local Governments 

(vi) 2 CFR part 417—Governmentwide Debarment and Suspension 

(Nonprocurement) 

(vii) 7 CFR part 3018—New 

Restrictions on Lobbying 

(viii) 7 CFR part 3019—Uniform 

Administrative Requirements for Grants 

and Other Agreements with Institutions 

of Higher Education, Hospitals, and 

Other Nonprofit Organizations 

(ix) 7 CFR part 3021—Governmentwide requirements for drug-free 

workplace (financial assistance) 

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

Local Governments, and Non-profit 

Organizations 

(xi) 48 CFR part 31—Contract Cost 

Principles and Procedures of the Federal 

Acquisition Regulations. 

(2) In addition, relevant provisions of 

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

seq.) and any other statutory provisions 

that are generally applicable to CCC are 

also applicable to the MAP and the 

regulations set forth in this part. 

(3) MAP Participants must also 

comply with Title VI of the Civil Rights 

Act of 1964 and related civil rights 

regulations and policies. 

(4) Other laws and regulations that 

apply to MAP Participants include, but 

are not limited to: 

(i) 2 CFR part 25—Universal Identifier 

and Central Contractor Registration 

(ii) 2 CFR part 170—Reporting 

Subaward and Executive Compensation 

Information 

(iii) 2 CFR part 175—Award Term for 

Trafficking in Persons 

(iv) 2 CFR part 180—OMB Guidelines 

to Agencies on Governmentwide 

Debarment and Suspension 

(Nonprocurement) 

(v) 37 CFR part 401.1—Rights to 

Inventions Made by Nonprofit 

Organizations and Small Business Firms 

Under Government Grants, Contracts, 

and Cooperative Agreements 

(vi) Executive Order 13224, as 

amended, Blocking Property and 

Prohibiting Transactions with Persons 

Who Commit, Threaten to Commit, or 

Support Terrorism 

(c) Under the MAP, CCC may provide 

grants to eligible U.S. entities to conduct 

certain marketing and promotion 

activities aimed at developing, 

maintaining, or expanding commercial 

export markets for U.S. agricultural 

commodities and products. MAP 

Participants may receive assistance for 

either generic or brand promotion 

activities. While activities generally take 

place overseas, reimbursable activities 

may also take place in the United States. 

CCC expects all activities that occur in 

the United States for which MAP 

reimbursement is sought to develop, 

maintain, or expand the commercial 

export market for the relevant U.S. 

agricultural commodity in accordance 

with the MAP Participant’s approved 

MAP program. When considering 

eligible nonprofit U.S. trade 

organizations, CCC gives priority to 

organizations that have the broadest 

producer representation and affiliated 

industry participation of the commodity 

being promoted. 

(d) The MAP generally operates on a 

reimbursement basis. 

(e) CCC’s policy is to ensure that 

benefits generated by MAP agreements 

are broadly available throughout the 

relevant agricultural sector and that no 

single entity gains an undue advantage. 

CCC also endeavors to enter into MAP 

agreements covering a broad array of 

agricultural commodity sectors. The 

MAP is administered by personnel of 

the Foreign Agricultural Service (FAS) 

acting on behalf of CCC. 

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§ 1485.11 Definitions. 

For purposes of this subpart the 

following definitions apply: 

Activity—a specific foreign market 

development effort undertaken by a 

MAP Participant. 

Administrative expenses or costs— 

expenses or costs of administering, 

directing, and controlling an 

organization that is a MAP Participant. 

Generally, this would include expenses 

or costs such as those related to: 

(1) Maintaining a physical office 

(including, but not limited to, rent, 

office equipment, office supplies, office 

de ́cor, office furniture, computer 

hardware and software, maintenance, 

extermination, parking, business cards); 

(2) Personnel (including, but not 

limited to, salaries, benefits, payroll 

taxes, individual insurance, training); 

(3) Communications (including, but 

not limited to, phone expenses, internet, 

mobile phones, personal digital 

assistants, email, mobile email devices, 

postage, courier services, television, 

radio, walkie talkies); 

(4) Management of an organization or 

unit of an organization (including, but 

not limited to, planning, supervision, 

supervisory travel, teambuilding, 

recruiting, hiring); 

(5) Utilities (including, but not 

limited to, sewer, water, energy); 

(6) Professional services (including, 

but not limited to, accounting expenses, 

financial services, investigatory 

services). 

Approval letter—a document by 

which CCC informs an applicant that its 

MAP application for a program year has 

been approved for funding. This letter 

may also approve specific activities and 

contain terms and conditions in 

addition to the program agreement. This 

letter requires a countersignature by the 

MAP Participant before it becomes 

effective. 

Attache ́/Counselor—the FAS 

employee representing USDA interests 

in the foreign country in which 

promotional activities are conducted. 

Brand participant—a small-sized U.S. 

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

cooperative that owns the brand(s) of 

the U.S. agricultural commodity to be 

promoted or has the exclusive rights to 

use such brand(s) and that is 

participating in the MAP brand 

promotion program of another MAP 

Participant. This definition does not 

include any U.S. agricultural 

cooperatives that are MAP Participants 

that apply for MAP funds to implement 

their own brand programs. 

Brand promotion—an activity that 

involves the exclusive or predominant 

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

the logo or brand name of a single U.S. 

company, or the brand of a U.S. 

agricultural cooperative, or any activity 

undertaken by a MAP Participant in the 

brand program. 

CCC—the Commodity Credit 

Corporation, including any agency or 

official of the United States delegated 

the responsibility to act on behalf of 

CCC. 

Contribution—an expenditure made 

by a MAP Participant, the U.S. industry, 

or State agency in support of an 

approved activity. This includes 

expenditures to be made by entities in 

the MAP Participant’s industry in 

support of the entities’ related 

promotion activities in the markets 

covered by the MAP Participant’s 

agreement. 

Credit memo—a commercial 

document, also known as a credit 

memorandum, issued by the MAP 

Participant to a commercial entity that 

owes the MAP Participant a certain 

sum. A credit memo is used when the 

MAP Participant owes the commercial 

entity a sum less than the amount the 

entity owes the Participant. The credit 

memo reflects an offset of the amount 

the MAP Participant owes the entity 

against the amount the entity owes to 

the MAP Participant. 

Demonstration projects—activities 

involving the erection or construction of 

a structure or facility or the installation 

of equipment. 

Expenditure—either payment via the 

transfer of funds or offset reflected in a 

credit memo in lieu of a transfer of 

funds. 

FAS—Foreign Agricultural Service, 

USDA. 

FAS Web site—a Web site maintained 

by FAS providing information on MAP. 

It is currently accessible at 

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

map.asp. 

Foreign third party—a foreign entity 

that a MAP Participant works with to 

promote the export of a U.S. agricultural 

commodity under the MAP program. 

Generic promotion—an activity that is 

not a brand promotion but, rather, 

promotes a U.S. agricultural 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 U.S. agricultural 

commodity or product 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 

MAP Participant must ensure that all 

U.S. companies seeking to promote such 

U.S. agricultural commodity in the 

market have an equal opportunity to 

participate in the activity and that at 

least two U.S. companies participate. In 

addition, an activity that promotes 

separate items from multiple 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. 

MAP—the Market Access Program. 

MAP Notice—Market Access Program 

notices are documents that CCC issues 

for informational purposes. These MAP 

notices are made available electronically 

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

programs/mnotice.html. These notices 

have no legal effect. They are intended 

to alert MAP Participants of various 

aspects of CCC’s current administration 

of the MAP program. For example, CCC 

issues MAP notices to alert MAP 

Participants of procedures for requesting 

advances, applicable federal pay scale 

rates, lists of economic and trade 

sanctions against certain foreign 

countries, reporting formats and 

computer codes to use with the UES. 

MAP Participant or Participant—an 

entity that has entered into a MAP 

program agreement with CCC. 

Market—the country or countries 

targeted by an activity. 

Notification—a document from the 

MAP Participant by which the MAP 

Participant proposes to CCC changes to 

the activities and/or funding levels in an 

approved MAP program agreement and/ 

or approval letter. 

Product samples—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 might 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—a document 

entered into between CCC and a MAP 

Participant setting forth the terms and 

conditions of approved activities under 

MAP, including any subsequent 

amendments to such agreement. 

Program year—Unless otherwise 

agreed in writing between CCC and a 

MAP Participant, a 12-month period 

during which a MAP Participant can 

undertake activities consistent with this 

subpart and its program agreement and 

approval letter with CCC. 

Promoted commodity—a U.S. 

agricultural commodity the sale of 

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which is the intended result of a 

promotion activity. 

Sales and trade relations 

expenditures (STRE)—expenditures 

made on breakfast, lunch, dinner, 

receptions, and refreshments at 

approved activities; miscellaneous 

courtesies such as checkroom fees, taxi 

fares and tips; and decorations for a 

special promotional occasion. 

Sales team—a group of individuals 

engaged in an approved activity 

intended to result in specific sales. 

Small-sized entity—a U.S. commercial 

entity that meets the small business size 

standards published at 13 CFR part 121, 

Small Business Size Regulations. 

SRTG—the acronym for State 

Regional Trade Group. An SRTG is a 

nonprofit association of state-funded 

agricultural promotion agencies. 

Supergrade—a salary level above the 

reimbursable salary range generally 

allowable under MAP, which CCC may 

approve on a case by case basis. This 

salary level is available only for certain 

non-U.S. employees who direct MAP 

Participants’ overseas offices. 

Temporary contractor—a contractor, 

typically a consultant or other highly 

paid professional, that is hired on a 

short term basis to assist in the 

performance of an activity. 

Trade team—a group of individuals 

engaged in an approved activity 

intended to promote the interests of an 

entire agricultural sector rather than to 

result in specific sales by any of its 

members. 

UES Web site—a Web site maintained 

by FAS through which applicants may 

apply online to MAP and any other 

USDA market development program. 

The Web site is currently accessible at 

www.fas.usda.gov/mos/ues/unified.asp. 

Unified Export Strategy (UES)—is a 

standardized online Internet application 

developed by USDA and available for 

use by entities to apply to any USDA 

market development program, including 

the MAP. 

U.S. agricultural commodity—any 

agricultural commodity, including any 

food, feed, fiber, forestry product, 

livestock, or insect of U.S. origin or fish 

harvested from a U.S. aquaculture farm 

or harvested by a vessel as defined in 

Title 46 of the United States Code, in 

waters that are not waters (including the 

territorial sea) of a foreign country, and 

any product thereof, excluding tobacco. 

An agricultural commodity shall be 

considered to be U.S. origin if it is 

comprised of at least 50 percent by 

weight, exclusive of added water, of 

agricultural commodities grown or 

raised in the United States. 

USDA—the United States Department 

of Agriculture. 

U.S. for-profit entity—a firm, 

association, or other entity organized or 

incorporated, located and doing 

business for profit in the United States, 

and engaged in the export or sale of a 

U.S. agricultural commodity. 

§ 1485.12 Participation eligibility. 

To participate in the MAP, an entity 

shall be: 

(a) A nonprofit U.S agricultural trade 

organization; 

(b) A nonprofit SRTG; 

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

(d) A State agency. 

§ 1485.13 Application process. 

(a) General application requirements. 

CCC will periodically publish a Notice 

in the Federal Register that it is 

accepting applications for participation 

in MAP. Applications shall be 

submitted in accordance with the terms 

and requirements specified in the 

Notice and in these regulations. 

Applicants are encouraged to submit a 

UES through the UES Internet Web site, 

but are not required to do so. Applicants 

may apply to conduct a generic 

promotion program and/or a brand 

promotion program that provides MAP 

funds to brand participants for branded 

promotion. An applicant who is a U.S. 

agricultural cooperative may also apply 

for funds to conduct its own brand 

promotion program. 

(1) Applicant and program 

information. 

(i) All applications shall contain: 

(A) The name, address, and Internet 

location of the home page of the 

applicant organization; 

(B) The name of the applicant’s Chief 

Executive Officer; 

(C) The name, telephone number, fax 

number, and email address of the 

applicant’s primary contact person; 

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

responsible for managing the proposed 

program; 

(E) A description of the applicant 

organization, including the type of 

organization of the applicant (e.g., 

nonprofit SRTG), its mission, and the 

statutory authorities by which it is 

constituted and under which it operates, 

if applicable; 

(F) Tax exempt identification number 

of the applicant, if applicable; 

(G) Beginning and ending dates for 

proposed program year (mm/dd/yy-mm/ 

dd/yy); 

(H) Dollar amount of CCC resources 

requested for generic activities; 

(I) Dollar amount of CCC resources 

requested for brand activities; 

(J) Total dollar amount of CCC 

resources requested; 

(K) Percentage of CCC resources 

requested for general administrative 

expenses; 

(L) A Dun and Bradstreet DUNS 

number for the applicant; 

(M) A description of the applicant 

organization’s membership and 

membership criteria; 

(N) A list of organizations affiliated 

with the applicant, including parent 

organizations, subsidiaries, and 

partnerships; 

(O) A description of the applicant’s 

management and administrative 

capability; 

(P) A description of the applicant’s 

prior export promotion experience; 

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

contributions from the applicant or the 

applicant’s proposed contribution stated 

as a percentage of the total dollar 

amount of CCC resources requested; and 

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

contributions from other sources. 

(ii) [Reserved] 

(2) Program justification. 

(i) All applications shall contain: 

(A) A description of the promoted 

U.S. agricultural commodity(s), its 

harmonized tariff classification, the 

applicable commodity aggregate code 

(available from the UES Web site) and 

the percentage of U.S. origin content by 

weight, exclusive of added water; 

(B) A description of the anticipated 

supply and demand situation for the 

promoted U.S. agricultural 

commodity(s); 

(C) The volume and value of exports 

of the promoted U.S. agricultural 

commodity(s) to the targeted markets for 

the most recent 3-year period; 

(D) If the proposal is for 2 or more 

years, an explanation why the proposal 

should be funded on a multi-year basis; 

and 

(E) A certification and, if requested by 

CCC, a written explanation supporting 

the certification that any funds received 

will supplement, but not supplant, any 

private or third-party funds or other 

contributions to program activities. An 

explanation, if one is requested, shall 

indicate why the applicant is unlikely to 

carry out the activities without Federal 

financial assistance. In determining 

whether Federal funds would 

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

consider the applicant’s prior overall 

marketing budget in the MAP program 

from year-to-year, variations in 

promotional strategies within a country, 

and new markets. 

(ii) [Reserved] 

(3) Proposed program’s strategic plan. 

(i) All applications shall include a 

strategic plan that contains: 

(A) A description of overall long term 

strategic goals to be advanced by the 

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proposed activities for the ensuing 3–5 

years; 

(B) An explanation of the 

organization’s strategic planning process 

and identification of priority target 

markets, including a summary of 

proposed budgets by country and 

commodity aggregate code; 

(C) A description of the world market 

situation for the exported U.S. 

agricultural commodity(s); 

(D) A description of competition from 

other exporters; 

(E) An evaluation plan describing the 

applicant’s goals and the applicant’s 

plans for monitoring and evaluating 

performance towards achieving these 

goals. This evaluation plan should set 

forth specific goals and benchmarks set 

at regular intervals to be used to identify 

results against identified constraints and 

opportunities and to measure progress 

made in the target market. Evaluation of 

a proposed MAP program’s effectiveness 

will depend on a clear statement by the 

applicant of goals, method of 

achievement, and expected results of 

programming at regular intervals. The 

overall goal of the MAP and of 

individual Participants’ programming is 

to achieve or maintain sales that would 

not have occurred in the absence of 

MAP funding. A MAP Participant may 

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

year. 

(F) For each target country, 5 years or 

as many years as are available of: 

(1) Historical U.S. export data; 

(2) U.S. market share; and 

(3) MAP funds received by the 

applicant; 

(G) For each target country, 3 years of 

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

market share; 

(H) Country strategy, including 

market constraint(s) impeding U.S. 

exports (e.g., trade barriers) or 

opportunities present and the strategy 

proposed to overcome constraints or 

take advantage of the opportunities, 

previous activities in the country, and 

the projected impact of the proposed 

program on U.S. exports; 

(I) A justification for any proposed 

overseas office, including a staffing plan 

listing job titles, position descriptions, 

salary ranges, any request for approval 

of supergrade salaries, and an itemized 

administrative budget; 

(J) A description of any demonstration 

projects, if applicable; 

(K) Data summarizing the applicant’s 

historical and projected exports, market 

share, and MAP budgets of the 

promoted U.S. agricultural 

commodity(s); 

(L) A written presentation of all 

proposed activities including: 

(1) A short description of the relevant 

market constraint or opportunity; 

(2) A budget for each proposed 

activity, identifying the source of funds. 

(ii) Applications for brand promotion 

assistance shall also include in their 

strategic plans: 

(A) A description of how the brand 

promotion program will be publicized 

to U.S. industry; and 

(B) The criteria that will be used to 

allocate funds to U.S. for-profit entities 

and U.S. agricultural cooperatives. 

(b) CCC may request any additional 

information that it deems necessary to 

evaluate an application, including, but 

not limited to, performance 

measurement information. 

(c) Special rules governing 

demonstration projects funded with 

CCC resources. 

(1) CCC will consider proposals for 

demonstration projects, provided: 

(i) No more than one such 

demonstration project per constraint is 

undertaken within a market; 

(ii) The constraint to be addressed in 

the target market is a lack of technical 

knowledge or expertise; 

(iii) The demonstration project is a 

practical and cost effective method of 

overcoming the constraint; and 

(iv) A third-party must participate in 

such project through a written 

agreement with the MAP Participant. 

(d) Universal Identifier and Central 

Contractor Registration (CCR) 

(1) In accordance with 2 CFR Part 25, 

each entity that applies to the MAP 

program and does not qualify for an 

exemption under 2 CFR 25.110 must: 

(i) Be registered in the CCR prior to 

submitting an application or plan; 

(ii) Maintain an active CCR 

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 

(iii) Provide its DUNS number in each 

application or plan it submits to CCC. 

(2) [Reserved] 

(e) Reporting Subaward and Executive 

Compensation Information. In 

accordance with 2 CFR Part 170, each 

entity that applies to the MAP 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 MAP funding. 

§ 1485.14 Application review and 

formation of agreements. 

(a) General. CCC will, subject to the 

availability of funds, approve those 

applications that it considers to present 

the best opportunity for developing, 

maintaining, or expanding export 

markets for U.S. agricultural 

commodities. The selection process, by 

its nature, involves the exercise of 

judgment. CCC’s choice of Participants 

and proposed promotion projects 

requires that it consider and weigh a 

number of factors, some of which 

cannot be mathematically measured— 

e.g., market opportunity, market 

strategy, and management capability. 

CCC may require that an applicant 

participate in the MAP through another 

MAP Participant or applicant. 

(b) Application review criteria. In 

assessing the likelihood of success of 

the applications it receives and deciding 

which it will approve, CCC will follow 

results-oriented management principles 

and consider the following criteria: 

(1) The effectiveness of program 

management; 

(2) Soundness of accounting 

procedures; 

(3) The nature of the applicant 

organization. With respect to nonprofit 

U.S. trade organizations, preference will 

be given to those organizations with the 

broadest base of producer representation 

of and affiliated industry participation 

for the commodity being promoted; 

(4) Prior export promotion experience; 

(5) Appropriateness of staffing; 

(6) Adequacy of the applicant’s 

strategic plan in the following 

categories; 

(i) Description of target market 

conditions; 

(ii) Description of and plan for 

addressing market constraints and 

opportunities; 

(iii) Breadth of industry participation 

in strategic planning process; 

(iv) Strategic prioritization identified 

in proposed plan; 

(v) Export volume and value and 

market share goals in each target 

country; 

(vi) Description of evaluation plan 

and suitability of the plan for 

performance measurement; and 

(vii) Past program results and/or 

evaluations, including program success 

stories. 

(c) Allocation factors. CCC determines 

which applications to approve and 

develops preliminary recommended 

funding levels for each approved 

application based on the following 

factors, in addition to those in 

paragraph (b) of this section. CCC 

determines final funding levels after 

allocating available funds to approved 

applications on the basis of criteria that 

will be fully described in each program 

year’s MAP announcement in the 

Federal Register: 

(1) Size of the budget request in 

relation to projected value of exports; 

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(2) Where applicable, size of the 

budget request in relation to actual 

value of exports in prior years; 

(3) Where applicable, Participant’s 

past projections of exports compared 

with actual exports; 

(4) Level of contributions by the 

applicant and by all other sources; 

(5) Market share goals in target 

country(ies); 

(6) The percentage by weight, 

exclusive of added water, of U.S. 

agricultural commodities contained in 

the promoted products; 

(7) The degree of value-added 

processing in the United States; and 

(8) Proposed MAP-funded general 

administrative and overhead costs 

compared to proposed MAP-funded 

direct promotional costs. 

(d) Approval decision. 

(1) CCC will approve those 

applications that it determines best 

satisfy the criteria and factors specified 

above. 

(2) Notification of decision. CCC will 

notify each applicant in writing of the 

final disposition of its application. 

(e) Formation of agreements. CCC will 

send a program agreement (or 

amendment to an existing program 

agreement), an approval letter, and a 

signature card to each approved 

applicant. The program agreement or 

amendment and the approval letter will 

outline which activities and budgets are 

approved and will specify any special 

terms and conditions applicable to a 

MAP Participant’s program, including 

any requirements with respect to 

contributions and program evaluations. 

An applicant that decides to accept the 

terms and conditions contained in the 

program agreement or amendment and 

the approval letter must so indicate by 

having its Chief Executive Officer (CEO) 

or designee 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. 

(f) Signature cards. The MAP 

Participant shall designate at least two 

individuals in its organization to sign 

program agreements and amendments, 

approval letters, reimbursement claims, 

and advance requests. The MAP 

Participant shall submit the signature 

card signed by those designated 

individuals and by the MAP 

Participant’s CEO to CCC. The 

Participant shall immediately notify 

CCC of any changes in signatories and 

shall submit a revised signature card 

accordingly. 

(g) UES ID and passwords. CCC will 

provide each MAP Participant with IDs 

and passwords for the UES Web site, as 

necessary. MAP Participants shall 

protect these IDs and passwords in 

accordance with USDA’s information 

technology policies that CCC will 

provide to MAP Participants. MAP 

Participants shall immediately notify 

CCC whenever a person who possesses 

the ID and password information no 

longer needs such information or a 

person who is not authorized gains such 

information. 

(h) A MAP Participant through which 

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

participating in the MAP program shall 

obtain annual certifications from all 

such entities that they are small-sized 

entities or U.S. agricultural cooperatives 

as defined in these regulations. The 

Participant shall retain these 

certifications in accordance with the 

recordkeeping requirements of this 

subpart. 

(i) Changes to activities and funding. 

(1) Adding a new activity. 

(i) A MAP Participant may not 

conduct a new activity without first 

obtaining an approved activity budget 

for such change. To request approval of 

such activity budget, the MAP 

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 market, constraint, or 

opportunity that the activity proposes to 

address. The notification shall contain 

the activity description, the proposed 

budget, and a justification of transfer of 

funds. 

(iii) After receipt of the notification, 

CCC will inform the MAP Participant 

via the UES Web site whether the 

requested budget is approved. 

(2) Modifying existing activities and 

their funding levels. 

(i) A MAP Participant desiring to 

increase the funding level for existing, 

approved activities addressing a single 

constraint or opportunity by more than 

$25,000 or 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 MAP Participant may make 

significant adjustments below that 

threshold to the funding levels for 

existing, approved activities without 

prior notification to CCC, 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. 

§ 1485.15 Operational procedures for 

brand programs. 

(a) Where CCC approves an 

application by a MAP Participant to run 

a brand promotion program that will 

include brand Participants, the MAP 

Participant shall establish brand 

program operational procedures. The 

MAP Participant annually shall submit 

to CCC for approval its proposed brand 

program operational procedures for 

such program year. CCC will notify all 

new and existing MAP Participants in 

writing in each Participant’s annual 

approval letter and through the FAS 

Web site 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. 

(b) The MAP Participant shall not 

enter into any participation agreements 

with brand participants nor shall it 

implement any MAP brand activities for 

the applicable program year unless and 

until CCC has communicated in writing 

its approval of the proposed operational 

procedures to the MAP Participant. 

(c) Participation agreements between 

MAP Participants and brand 

participants. Where CCC approves a 

MAP Participant’s application to run a 

brand promotion program that will 

include brand participants, the MAP 

Participant shall enter into participation 

agreements with brand participants. 

These agreements must: 

(1) Specify a time period for such 

brand promotion and require that all 

brand promotion expenditures be made 

within the MAP Participant’s approved 

program year; 

(2) Make no allowance for extension 

or renewal; 

(3) Limit reimbursable expenditures 

to those made in countries and for 

activities approved in the brand 

participant’s activity plan; 

(4) Specify the percentage of 

promotion expenditures that will be 

reimbursed, reimbursement procedures, 

and documentation requirements; 

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(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 U.S. 

agricultural commodity as ‘‘American’’, 

‘‘Product of the United States of 

America’’, ‘‘Product of the U.S.’’, 

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

America’’, ‘‘Grown in the United States 

of America’’, ‘‘Grown in the U.S.’’, 

‘‘Grown in the U.S.A.’’, ‘‘Grown in 

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

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

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

product of, grown in or made in any 

state or territory of the United States of 

America spelled out in its entirety, or 

other U.S. regional designation if 

approved in advance by CCC; that such 

origin identification will be 

conspicuously displayed in a manner 

easily observed as identifying the origin 

of the product; and that such origin 

identification will conform, to the 

extent possible, to the U.S. standard of 

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

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

the above terms as a descriptor or in the 

name of the product (e.g., Texas style 

chili, Bob’s American Pizza) does not 

satisfy the product origin requirement. 

Phrases ‘‘product of ’’, ‘‘grown in’’ or 

‘‘made in’’ are encouraged, but not 

required. A MAP Participant may 

request an exemption from this 

requirement on a case-by-case basis. All 

such requests shall be in writing and 

include justification satisfactory to CCC 

that this labeling requirement would 

hinder a MAP Participant’s promotional 

efforts. CCC will determine, on a case by 

case basis, whether sufficient 

justification exists to grant an 

exemption from the labeling 

requirement. In addition, CCC may 

temporarily waive this requirement 

where CCC has determined that such 

labeling will likely harm sales rather 

than help them. Such determinations 

will be announced to MAP Participants 

via a MAP notice issued on FAS’ Web 

site; 

(7) Include a written certification by 

the brand participant that it is either a 

small-sized entity as defined in this 

subpart or a U.S. agricultural 

cooperative; 

(8) Require that the brand participant 

submit to the MAP Participant a 

statement certifying that any Federal 

funds received will supplement, but not 

supplant, any private or third party 

funds or other contributions to program 

activities; and 

(9) Require the brand participant to 

maintain all original records and 

documents relating to program activities 

for 5 calendar years following the end 

of the applicable program year and 

make such records and documents 

available upon request to authorized 

officials of the U.S. Government. 

(d) MAP Participants may not provide 

assistance to a single entity including a 

entity reincorporated or re-organized 

under the same or different name if the 

reincorporated or re-organized entity is 

substantially similar to the pre-existing 

entity, for brand promotion in a single 

country for more than 5 years. Such 5 

years do not need to be consecutive. 

Such 5-year period shall not begin prior 

to the 1994 program year or the brand 

participant’s first program year, 

whichever is later. In limited 

circumstances, CCC may waive the 5 

year limitation if CCC determines that 

further assistance is in the best interests 

of the MAP. CCC shall, at its discretion, 

decide whether a reincorporated or reorganized entity is substantially similar 

to the pre-existing entity for purposes of 

applying this 5-year rule. Brand 

participants’ participation in certain 

international trade shows in foreign 

countries will not be considered when 

determining such brand participants’ 

time in country for purposes of the 5 

year graduation requirement. Such 

shows must meet two requirements: 

They are food or agricultural shows, 

with no less than 30% of exhibitors 

selling food or agricultural products, 

and they are international shows, 

meaning they target buyers, distributors 

and the like from more than one foreign 

country and no less than 15% of each 

show’s visitors are from countries other 

than the host country. CCC will compile 

a list of international trade shows that 

CCC exempts from the graduation 

requirement and such list will be 

announced to MAP Participants via a 

MAP notice issued on FAS’ Web site. 

§ 1485.16 Contribution rules. 

(a) In MAP generic promotion 

programs, a MAP Participant shall 

contribute a total amount in goods, 

services, and/or cash equal to at least 10 

percent of the value of resources to be 

provided by CCC for all generic 

promotion activities proposed to be 

undertaken by the MAP Participant. 

(b) In MAP brand promotion 

programs, a MAP Participant 

conducting its own brand promotion or 

a brand participant shall contribute at 

least 50 percent of the total eligible 

expenditures made on each approved 

brand promotion. 

(c) A MAP Participant must use its 

own funds and may not use MAP 

program funds to pay any 

administrative costs of the MAP 

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

legal fees, except as set forth in this 

subpart. Where the MAP Participant 

uses its own funds to pay for 

administrative costs, such costs may be 

counted in calculating the amount of 

contributions the MAP Participant 

contributes to MAP generic or brand 

promotion programs. 

(d) Eligible contributions. 

(1) In calculating the amount of 

contributions that it will make, and the 

contributions that the U.S. industry 

(including expenditures to be made by 

entities in the applicant’s industry in 

support of the entities’ related 

promotion activities in the markets 

covered by the applicant’s application) 

or State agency will make, the MAP 

applicant may include the costs listed 

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

(i) Expenditures will be made in 

furtherance of an approved activity, and 

(ii) The contributor has not been and 

will not be reimbursed by any source for 

such costs. 

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

section, as well as applicable cost 

principles (e.g., 2 CFR Parts 220, 225, 

and 230) to the extent these principles 

do not directly conflict with the 

provisions of this subpart, eligible 

contributions are: 

(i) Cash; 

(ii) Compensation paid to personnel; 

(iii) The cost of acquiring materials, 

supplies or services; 

(iv) The cost of office space; 

(v) A reasonable and justifiable 

proportion of general administrative 

costs and overhead; 

(vi) Payments for indemnity and 

fidelity bond expenses; 

(vii) The cost of business cards that 

target a foreign audience; 

(viii) The cost of seasonal greeting 

cards; 

(ix) Fees for office parking; 

(x) The cost of subscriptions that are 

of a technical, economic, or marketing 

nature and that are relevant to the 

approved activities of the MAP 

Participant; 

(xi) The cost of activities conducted 

overseas; 

(xii) Credit card fees; 

(xiii) The cost of any independent 

evaluation or audit that is not required 

by CCC to ensure compliance with 

program agreement or regulatory 

requirements; 

(xiv) The cost of giveaways, awards, 

prizes and gifts; 

(xv) The cost of product samples; 

(xvi) Fees for participating in U.S. 

government sponsored or endorsed 

export promotion activities; 

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(xvii) The cost of air and local travel 

in the United States; 

(xviii) Payment of employee’s or 

contractor’s share of personal taxes; 

(xix) STRE and the cost associated 

with trade shows, seminars, and 

entertainment conducted in the United 

States; 

(xx) Other administrative expenses 

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

an overseas office); and 

(xxi) The cost of any activity 

expressly listed as reimbursable in this 

subpart. 

(3) The following are not eligible 

contributions: 

(i) Any portion of salary or 

compensation of an individual who is 

the target of an approved promotional 

activity; 

(ii) Any expenditure, including that 

portion of salary and time spent, related 

to promoting membership in the 

Participant organization (sometimes 

referred to in the industry as 

‘‘backsell’’); 

(iii) Any land costs other than 

allowable costs for office space; 

(iv) Depreciation; 

(v) The cost of refreshments and 

related equipment provided to office 

staff; 

(vi) The cost of insuring articles 

owned by private individuals; 

(vii) The cost of any arrangement that 

has the effect of reducing the selling 

price of a U.S. agricultural commodity; 

(viii) The cost of product 

development, product modifications, or 

product research; 

(ix) Slotting fees or similar sales 

expenditures; 

(x) Membership fees in clubs and 

social organizations; and 

(xi) Any expenditure for an activity 

prior to CCC’s approval of that activity. 

(4) CCC shall determine, at CCC’s 

discretion, whether any cost not 

expressly listed in this section may be 

included by the MAP Participant as an 

eligible contribution. 

§ 1485.17 Reimbursement rules. 

(a) A MAP Participant may seek 

reimbursement for an eligible 

expenditure if: 

(1) The expenditure was made in 

furtherance of an approved activity; and 

(2) The Participant has not been and 

will not be reimbursed for such 

expenditure by any other source. 

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

of this section, as well as applicable cost 

principles (e.g., 2 CFR Parts 220, 225, 

and 230) to the extent these principles 

do not directly conflict with the 

provisions of this subpart, for either 

brand or generic promotion activities, 

CCC will reimburse, in whole or in part, 

the cost of: 

(1) Production and placement of 

advertising, in print, electronic media, 

billboards, or posters, which may 

include advertising the availability of 

price discounts, except that advertising 

associated with a coupon or price 

discount for the MAP promoted product 

is not reimbursable. If advertising is 

related to both coupons or price 

discounts for products other than the 

MAP Participant’s promoted products as 

well as for MAP-promoted products, 

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 includes, but is not 

limited to, radio, television, electronic 

mail, internet, telephone, text 

messaging, and podcasting; 

(2) Production and distribution of 

banners, recipe cards, table tents, shelf 

talkers, and other similar point of sale 

materials; 

(3) Direct mail advertising; 

(4) In-store and food service 

promotions, product demonstrations to 

the trade and to consumers, and 

distribution of product samples (but not 

the purchase of the product samples); 

(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 § 1485.17(b)(18), 

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: (1) a food or agricultural show with 

no less than 30% of exhibitors selling 

food or agricultural products, (2) an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 

15% of its visitors are from countries 

other than the host country, and (3) an 

exhibit or show that the MAP 

Participant has not participated in 

within the last three years using funds 

from a source other than the MAP. CCC 

will compile a list of approved retail, 

trade and consumer exhibits and shows 

held inside the United States for which 

MAP reimbursement is available and 

such list will be announced to MAP 

Participants via a MAP notice issued on 

FAS’ Web site; 

(8) Subject to § 1485.17(b)(18), 

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), for no more than two 

representatives of a single brand 

participant (or MAP 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; 

(9) Subscriptions that are of a 

technical, economic, or marketing 

nature and that are relevant to the 

approved activities of the MAP 

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 MAP 

Participants via a MAP notice issued on 

FAS’ Web site. Reimbursement is 

available only when: (1) The items are 

described in detail with a per unit cost 

in an approved strategic plan and (2) 

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 

program year in which the expenditure 

is made, if such packaging, labeling or 

origin identification is necessary to meet 

the importing requirements of a foreign 

country; 

(13) The design, production, and 

distribution of coupons for products 

other than the MAP Participant’s 

promoted products. If such activities 

include both coupons or price discounts 

for products other than the MAP 

Participant’s promoted products as well 

as for MAP-promoted products, 

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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 MAP Participant as 

required by Office of Management and 

Budget Circular A–133 if the MAP is the 

MAP 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 

Web sites 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), 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 MAP Participant’s UES; 

(ii) The trade mission included 

representatives, as defined in 

§ 1485.17(b)(8), 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)(A) The MAP 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: 

(1) A product showcase where the 

FAS overseas office approved an 

invitation list of qualified buyers; 

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

meetings; and 

(3) Evaluation and feedback sessions 

with FAS staff and trade mission 

sponsors. 

(B) Reimbursement is conditional on 

the MAP Participant having notified in 

writing the Attache ́/Counselor in the 

destination country in advance of the 

travel; 

(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, MAP funds may be used 

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

Participants located within the U.S. 

pavilion. Such expenditures must also 

adhere to the standard terms and 

conditions of the U.S. pavilion 

organizer. Upon written request, CCC 

may temporarily waive this subsection, 

on a case by case basis, where: the trade 

show is segregated into product 

pavilions, or a company’s distributor or 

importer is located outside the U.S. 

pavilion. Such waiver will be provided 

to the MAP Participant in writing; and 

(19) Contracts with U.S. based 

organizations when the only contracted 

service such organizations provide to a 

MAP 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 

MAP Participant’s domestic home office 

during a program year, any direct 

promotional services such organization 

provides to the Participant, whether for 

the Participant’s domestic or overseas 

offices, during the same program year 

are not reimbursable. 

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

this section, but for generic promotion 

activities only, CCC will also reimburse, 

in whole or in part, the cost of: 

(1) Compensation and allowances for 

housing, educational tuition, and cost of 

living adjustments paid to a U.S. citizen 

employee or a U.S. citizen contractor 

stationed overseas, except CCC will not 

reimburse that portion of: 

(i) The total of compensation and 

allowances that exceed 125 percent of 

the level of a GS–15 Step 10 salary for 

U.S. Government employees, and 

(ii) Allowances that exceed the rate 

authorized for U.S. Embassy personnel; 

(2) Approved supergrade salaries for 

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

contractors stationed overseas; 

(3) 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, except for approved 

supergrades, or 

(ii) Where an FSN salary plan does 

not exist, CCC will not reimburse any 

portion of such compensation that 

exceeds locally prevailing levels, which 

the MAP Participant shall document by 

a salary survey or other means, except 

for approved supergrades; 

(4) A retroactive salary adjustment for 

non-U.S. citizen staff employees or nonU.S. contractors stationed overseas that 

conforms to a change in FSN salary 

plans, effective as of the date of such 

change; 

(5) Accrued annual leave as of the 

time employment is terminated or as of 

such time as required by local law; 

(6) Overtime paid to clerical staff of 

approved MAP-funded overseas offices; 

(7) Temporary contractor fees for 

contractors stationed overseas, except 

CCC will not reimburse any portion of 

any such fee that exceeds the daily gross 

salary of a GS–15, Step 10 for U.S. 

Government employees in effect on the 

date the fee is earned, unless a bidding 

process reveals that such a contractor is 

not available at or below that salary rate; 

(8)(i) Subject to § 1485.17(b)(18), 

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. Federal Travel 

Regulations (41 CFR parts 301 through 

304), except that if the activity is 

participation in a retail, trade, or 

consumer exhibit or show held inside 

the United States, international travel 

expenditures are covered only if the 

exhibit or show is: (1) A food or 

agricultural show with no less than 30% 

of exhibitors selling food or agricultural 

products, (2) an international show that 

targets buyers, distributors and the like 

from more than one foreign country and 

no less than 15% of its visitors are from 

countries other than the host country, 

and (3) an exhibit or show that the MAP 

Participant has not participated in 

within the last three years using funds 

from a source other than the MAP. CCC 

will compile a list of approved retail, 

trade and consumer exhibits and shows 

held inside the United States for which 

MAP reimbursement is available and 

such list will be announced to MAP 

Participants via a MAP notice issued on 

FAS’ Web site. 

(ii) 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 MAP 

Participant fails to notify the Attache ́/ 

Counselor in the destination country in 

advance of the travel, unless the CCC 

determines it was impractical to provide 

such notice. If a traveler flies in 

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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 MAP 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 MAP Participant shall 

provide documentation establishing 

such average of the full fare economy 

class rates to support its reimbursement 

claim. 

(iii) In very limited circumstances, the 

MAP 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 CCC. Such circumstances 

are: 

(A) Regularly scheduled flights 

between origin and destination points 

do not offer economy class (or 

equivalent) airfare and the MAP 

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) An 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. 

(iv) Alternatively, in lieu of 

reimbursing up to the business class rate 

in such circumstances, 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. A stopover 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. All travel 

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; 

(9) Automobile mileage at the local 

U.S. Embassy rate or rental cars while 

in travel status; 

(10) Other allowable expenditures 

while in travel status as authorized by 

the U.S. Federal Travel Regulations 

(41 CFR parts 301 through 304); 

(11) Organization costs for overseas 

offices approved in MAP program 

agreements. Such costs include 

incorporation fees, brokers’ fees, fees to 

attorneys, accountants, or investment 

counselors, whether or not employees of 

the organization, incurred in connection 

with the establishment or reorganization 

of the overseas office, and rent, utilities, 

communications originating overseas, 

office supplies, accident liability 

insurance premiums, and routine 

accounting and legal services required 

to maintain the overseas office; 

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

or insurance premiums for, capital 

goods that have an expected useful life 

of at least 1 year, such as furniture, 

equipment, machinery, removable 

fixtures, draperies, blinds, floor 

coverings, computer hardware and 

software, and portable electronic 

communications devices (including 

mobile phones, wireless email devices, 

personal digital assistants); 

(13) Such premiums for health or 

accident insurance and other benefits 

for foreign national employees that the 

employer is required by law to pay; 

(14) Accident liability insurance 

premiums for facilities used jointly with 

third-party participants for MAP 

activities or for MAP-funded travel of 

third-party participants; 

(15) Market research, including 

research to determine the types of 

products that are desired in a market; 

(16) Independent evaluations and 

audits, if not otherwise required by 

CCC, to ensure compliance with 

program requirements; 

(17) Legal fees to obtain advice on the 

host country’s labor laws; 

(18) Employment agency fees; 

(19) STRE incurred outside of the 

United States, and STRE incurred in 

conjunction with an approved activity 

taking place within the United States 

with prior written approval from CCC. 

MAP Participants are required to use the 

appropriate American Embassy 

representational funding guidelines for 

breakfasts, lunches, dinners and 

receptions. MAP Participants may 

exceed Embassy guidelines only when 

they have received written authorization 

from the FAS Agricultural Counselor at 

the Embassy. The amount of 

unauthorized STRE expenses that 

exceed the guidelines will not be 

reimbursed. MAP Participants must pay 

the difference between the total cost of 

STRE events and the appropriate 

amount as determined by the 

guidelines. For STRE incurred in the 

United States, the MAP Participant 

should provide, in its request for 

approval, the basis for determining its 

proposed expenses; 

(20) Educational travel of dependent 

children, visitation travel, rest and 

recuperation travel, home leave travel, 

emergency visitation travel for U.S. 

overseas employees allowed under the 

Foreign Affairs Manual published by the 

U.S. Department of State; 

(21) Evacuation payments (safe haven) 

and shipment and storage of household 

goods and motor vehicles; 

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

support expenses for the National 

Association of State Departments of 

Agriculture, the SRTGs, and the 

Intertribal Agriculture Council; 

(23) Non-travel expenditures 

associated with conducting 

international staff conferences held 

either in or outside the United States; 

(24) Subject to § 1485.17(b)(18), 

domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304), 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: (1) A food or 

agricultural show with no less than 30% 

of exhibitors selling food or agricultural 

products, (2) an international show that 

targets buyers, distributors and the like 

from more than one foreign country and 

no less than 15% of its visitors are from 

countries other than the host country, 

and (3) an exhibit or show that the MAP 

Participant has not participated in 

within the last three years using funds 

from a source other than the MAP. CCC 

will compile a list of approved retail, 

trade and consumer exhibits and shows 

held inside the United States for which 

MAP reimbursement is available and 

such list will be announced to MAP 

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Participants via a MAP notice issued on 

FAS’ Web site; 

(25) Domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304), for seminars and educational 

training conducted in the United States; 

(26) Domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304), for one home office MAP 

Participant employee, one MAP 

Participant board member, or a state 

department of agriculture employee 

paid by the MAP Participant, when such 

individual accompanies 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 MAP 

Participant’s UES; 

(ii) Such trade missions or technical 

team visits have been approved by CCC; 

and 

(iii) The MAP-sponsored traveler 

submits a follow-up trip report to CCC 

that includes the following: 

(A) Purpose for the individual’s 

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. 

(27) Approved demonstration 

projects; 

(28) Expenditures related to 

copyright, trademark, or patent 

registration, including attorney fees; 

(29) Rental or lease expenditures for 

storage space for program-related 

materials; 

(30) Business cards that target a 

foreign audience; 

(31) Expenditures associated with 

developing, updating, and servicing 

Web sites on the Internet that: Contain 

a message related to exporting or 

international trade, include a 

discernible ‘‘link’’ to the FAS/ 

Washington homepage or an FAS 

overseas homepage, and have been 

specifically approved by the appropriate 

FAS commodity division. Expenditures 

related to Web sites or portions of Web 

sites that are accessible only to an 

organization’s members are not 

reimbursable. Reimbursement claims for 

Web sites that include any sort of 

‘‘members only’’ sections must be 

prorated to exclude the costs associated 

with those areas subject to restricted 

access; 

(32) 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 technical barriers to trade 

that prohibit or threaten U.S. exports of 

agricultural commodities; and 

(33) Membership fees in professional, 

industry-related organizations. 

(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, 

judgments or payments relating to legal 

suits, challenges or disputes; 

(3) The design and production of 

packaging, labeling or origin 

identification, except as specifically 

allowed in this subpart; 

(4) Product development, product 

modification or product research; 

(5) Product samples; 

(6) Slotting fees or similar sales 

expenditures; 

(7) The purchase of, construction of, 

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

constructed to remain permanently in 

the same location beyond one program 

year. However, CCC may, at its 

discretion, reimburse the construction 

or purchase of permanent displays on a 

case-by-case basis, if the Participant 

sought and received prior written 

approval from CCC of such construction 

or purchase; 

(8) Rental, lease or purchase of 

warehouse space, except for storage 

space for program-related material; 

(9) Coupon redemption or price 

discounts of the MAP promoted 

commodity; 

(10) Refundable deposits or advances; 

(11) Giveaways, awards, prizes, gifts 

and other similar promotional materials 

in excess of the limitation that CCC will 

determine. Such determination will be 

announced in writing via a MAP notice 

issued on FAS’ Web site; 

(12) Alcoholic beverages that are not 

an integral part of an approved 

promotional activity; 

(13) The purchase, lease (except for 

use in authorized travel status) or repair 

of motor vehicles; 

(14) Travel of applicants for 

employment interviews; 

(15) Unused non-refundable airline 

tickets or associated penalty fees, except 

where travel was restricted by U.S. 

Government action or advisory; 

(16) Independent evaluations or 

audits, including evaluations or audits 

of the activities of a subcontractor, if 

CCC determines that such a review is 

needed in order to confirm past or to 

ensure future program agreement or 

regulatory compliance; 

(17) Any arrangement that has the 

effect of reducing the selling price of a 

U.S. agricultural commodity; 

(18) Goods, services and salaries of 

personnel provided by U.S. industry or 

foreign third party; 

(19) Membership fees in clubs and 

social organizations; 

(20) Indemnity and fidelity bonds; 

(21) Fees for participating in U.S. 

Government sponsored activities, other 

than trade fairs and exhibits; 

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

domestic audience; 

(23) Seasonal greeting cards; 

(24) Office parking fees; 

(25) Subscriptions to publications that 

are not of a technical, economic, or 

marketing nature or that are not relevant 

to the approved activities of the MAP 

Participant; 

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

expenses, including communication 

costs, except as noted in 

§ 1485.17(c)(22) and except that usage 

costs for communications devices 

incurred while on reimbursable 

international or domestic travel for 

approved MAP 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); 

(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 MAP 

Participant to pay such employees’ or 

contractors’ share; 

(29) Any expenditure made for an 

activity prior to 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; and 

(31) Expenditures associated with a 

MAP Participant’s creation or review of 

their fraud prevention program, 

contracting procedures, or brand 

program operational procedures. 

(e) Special rules for approval of 

supergrades. 

(1) With respect to individuals who 

are not U.S. citizens and who are hired 

by MAP Participants either as 

employees or contractors who are hired 

to act as employees, ordinarily, CCC 

will not reimburse any portion of such 

individual’s compensation that exceeds 

the compensation prescribed for the 

most comparable position in the FSN 

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salary plan applicable to the country in 

which the employee or contractor 

works. However, a MAP Participant may 

seek a higher level of reimbursement for 

a non-U.S. citizen employee or 

contractor who will be employed as a 

country director or regional director by 

requesting that CCC approve that 

employee or contractor as a supergrade. 

(2) To request approval of a 

supergrade, the MAP Participant shall 

provide CCC with a detailed description 

of both the duties and responsibilities of 

the position and the qualifications and 

background of the employee or 

contractor concerned. The Participant 

shall also justify why the comparable 

FSN salary level is insufficient. 

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

employee or contractor will be 

employed as a country director, the 

MAP Participant may request approval 

for a ‘‘Supergrade I’’ salary level, 

equivalent to a grade increase over the 

existing top grade of the FSN salary 

plan. The supergrade and its step 

increases are calculated as the 

percentage difference between the 

second highest and the highest grade in 

the FSN salary plan, with that 

percentage applied to each of the steps 

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

citizen employee or contractor will be 

employed as a regional director, with 

responsibility for activities and/or 

offices in more than one country, the 

MAP Participant may request approval 

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

is calculated relative to a ‘‘Supergrade I’’ 

in the same way the latter is calculated 

relative to the highest grade in the FSN 

salary plan. 

(4) A U.S. citizen with dual 

citizenship with another foreign country 

or countries shall not be considered a 

non-U.S. citizen. 

(f) For a brand promotion activity, 

CCC will reimburse no more than 50 

percent of the total eligible expenditures 

made on that activity. 

(g) CCC will reimburse for 

expenditures made after the conclusion 

of a MAP Participant’s program year 

provided: 

(1) The activity was approved by CCC 

prior to the end of the program year; 

(2) The activity was completed within 

30 calendar days following the end of 

the program year; and 

(3) All expenditures were made for 

the activity within 6 months following 

the end of the program year. 

(h) A MAP Participant shall not use 

MAP funds for any activity or any 

expenses incurred by the MAP 

Participant prior to the date of the 

program agreement or after the date the 

program agreement is suspended or 

terminated, except as otherwise 

permitted by CCC. 

(i) Except as otherwise provided in 

this subpart, MAP-funded travel shall 

conform to U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304) and MAP-funded air travel shall 

conform to the requirements of the Fly 

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

MAP Participant shall notify the 

Attache ́/Counselor in the destination 

countries in writing in advance of any 

proposed travel. 

(j) CCC may determine, at CCC’s 

discretion, whether any cost not 

expressly listed in § 1485.17 will be 

reimbursed. 

§ 1485.18 Reimbursement procedures. 

(a) Participants are required to use 

CCC’s Internet-based UES system to 

request reimbursement for eligible MAP 

expenses. Claims for reimbursement 

shall contain the following information: 

(1) Activity type—brand or generic; 

(2) Activity number; 

(3) Commodity aggregate code; 

(4) Country code; 

(5) Cost category; 

(6) Amount to be reimbursed; 

(7) If applicable, any reduction in the 

amount of reimbursement claimed to 

offset CCC demand for refund of 

amounts previously reimbursed and 

reference to the relevant compliance 

report or written notice; and 

(8) If applicable, any amount 

previously claimed that has not been 

reimbursed. 

(b) All claims for reimbursement shall 

be submitted by the MAP Participant’s 

U.S. office to CCC. 

(c) CCC will not reimburse a claim for 

less than $10,000, except that CCC will 

reimburse a final claim for a MAP 

Participant’s program year for a lesser 

amount. 

(d) CCC will not reimburse claims 

submitted later than 6 months after the 

end of a MAP Participant’s program 

year. 

(e) If CCC overpays a reimbursement 

claim, the MAP Participant shall repay 

CCC within 30 days of such 

overpayment the amount of the 

overpayment either by submitting a 

check payable to CCC or by offsetting its 

next reimbursement claim. The MAP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(f) If a MAP Participant receives a 

reimbursement or offsets an advanced 

payment which is later disallowed, the 

MAP Participant shall repay CCC within 

30 days of such disallowance the 

amount disallowed either by submitting 

a check payable to CCC or by offsetting 

its next reimbursement claim. The MAP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(g) MAP funds may be expended by 

MAP Participants only on legitimate, 

approved activities as set forth in the 

program agreement and approval letter. 

If a MAP Participant discovers that MAP 

funds have not been properly spent, it 

shall notify CCC and shall within 30 

days of its discovery repay CCC the 

amount owed either by submitting a 

check payable to CCC or by offsetting its 

next reimbursement claim. The MAP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. 

(h) The MAP Participant shall report 

any actions that may have a bearing on 

the propriety of any claims for 

reimbursement in writing to CCC. 

§ 1485.19 Advances. 

(a) Policy. In general, CCC operates 

the MAP on a reimbursable basis. 

(b) Exception. A MAP Participant for 

generic promotion activities may 

request an advance of MAP funds from 

CCC, provided the MAP Participant 

meets the criteria for advance payments 

set forth in the applicable parts of this 

title (e.g., 7 CFR Parts 3015, 3016, and 

3019). CCC will not approve any request 

for an advance submitted later than 3 

months after the end of a MAP 

Participant’s program year. At any given 

time, total payments advanced shall not 

exceed 40 percent of a MAP 

Participant’s approved generic activity 

budget for the program year. CCC will 

not advance funds to a MAP Participant 

for brand promotion activities. When 

approving a request for an advance, CCC 

may require the MAP Participant to 

carry adequate fidelity bond coverage 

when the absence of such coverage is 

considered to create an unacceptable 

risk to the interests of the . 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 MAP; 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 MAP Participant shall 

deposit and maintain in an insured bank 

account in the United States all funds 

advanced by CCC. The account shall be 

interest-bearing, unless the exceptions 

in the applicable parts of this title apply 

(e.g., 7 CFR Parts 3015, 3016 and 3019). 

Interest earned by the MAP Participant 

on funds advanced by CCC is not 

program income. The MAP Participant 

shall remit any interest earned on the 

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advanced funds to the appropriate 

entity as set forth in the applicable parts 

of this title. 

(d) Refunds due CCC. A MAP 

Participant shall fully expend all 

advances on approved generic 

promotion activities within 90 calendar 

days after the date of disbursement by 

CCC. By the end of the 90 calendar days, 

the MAP Participant must submit 

reimbursement claims to offset the 

advance and submit a check made 

payable to CCC for any unexpended 

balance. The MAP Participant shall 

make such payment in U.S. dollars, 

unless otherwise approved in advance 

by CCC. 

§ 1485.20 Employment practices. 

(a) A MAP Participant shall enter into 

written contracts with all overseas 

employees who are paid in whole or in 

part with MAP funds and shall ensure 

that all terms, conditions, and related 

formalities of such contracts conform to 

governing local law. 

(b) A MAP Participant shall in its 

overseas offices conform its office hours, 

work week, and holidays to local law 

and to the custom generally observed by 

U.S. commercial entities in the local 

business community. 

(c) A MAP Participant may pay 

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

foreign). Participants should consult 

local laws regarding currency 

restrictions. 

§ 1485.21 Financial management. 

(a) A MAP Participant shall 

implement and maintain a financial 

management system that conforms to 

generally accepted accounting 

principles. A MAP Participant’s 

financial management system shall 

comply with the standards set forth in 

the applicable parts of this title (e.g., 7 

CFR Parts 3015, 3016 and 3019). 

(b) A MAP Participant shall institute 

internal controls and provide written 

guidance to commercial entities 

participating in its activities to ensure 

their compliance with these regulations. 

(c) A MAP Participant shall retain all 

records concerning a MAP program 

transaction for a period of 5 years after 

completion of the program transaction 

and permit CCC to have full and 

complete access, for such 5-year period, 

to such records. These records shall 

include all documents related to 

employment of any employees whose 

salaries are reimbursed in whole or in 

part with MAP funds, whether such 

employees are based in the United 

States or overseas, such as employment 

applications, contracts, position 

descriptions, leave records, salary 

changes, and all records pertaining to 

contractors. 

(d) A MAP Participant shall maintain 

its records of expenditures and 

contributions in a manner that allows it 

to provide information by activity plan, 

country, activity number, and cost 

category. Such records shall include: 

(1) Receipts for all STRE (actual 

vendor invoices or restaurant checks, 

rather than credit card receipts); 

(2) Original receipts for any other 

program-related expenditure in excess 

of $75.00. CCC may, from time to time, 

determine a different minimum level 

and announce that minimum level in 

writing to all MAP Participants via a 

MAP notice issued on the FAS Web site; 

(3) The exchange rate used to 

calculate the dollar equivalent of 

expenditures made in a foreign currency 

and the basis for such calculation; 

(4) Copies of reimbursement claims; 

(5) An itemized list of claims charged 

to each of the MAP Participant’s CCC 

resources accounts; 

(6) Documentation with 

accompanying English translation 

supporting each reimbursement claim, 

including original evidence to support 

the financial transactions such as 

canceled checks, receipted paid bills, 

contracts or purchase orders, per diem 

calculations, travel vouchers, and credit 

memos; and 

(7) Documentation supporting 

contributions. These must include the 

dates, purpose, and location of the 

activity for which the cash or in-kind 

items were claimed as a contribution; 

who conducted the activity; the 

participating groups or individuals; and, 

the method of computing the claimed 

contributions. MAP Participants must 

retain and make available for 

compliance review documentation 

related to claimed contributions. 

(e) Upon request, a MAP Participant 

shall provide to CCC originals of 

documents supporting reimbursement 

claims. 

§ 1485.22 Reports. 

(a)End-of-Year Contribution Report. 

Not later than 6 months after the end of 

its program year, a MAP Participant 

shall submit two copies of a report that 

identifies, by cost category and in U.S. 

dollar equivalent, contributions made 

by the Participant, the U.S. industry, 

and the States during that program year. 

A suggested format of a contribution 

report is available from FAS. Foreign 

third party contributions are not 

included in the end-of-year contribution 

report. 

(b)Trip reports. Not later than 45 days 

after completion of travel (other than 

local travel), a MAP Participant shall 

electronically submit a trip report. The 

report must include the name(s) of the 

traveler(s), purpose of travel, itinerary, 

names and affiliations of contacts, and 

a brief summary of findings, 

conclusions, recommendations, and 

specific accomplishments. 

(c) Research reports. Not later than 6 

months after the end of its program year, 

a MAP Participant shall submit a report 

on any research conducted pursuant to 

the approved MAP program. 

(d) Evaluation reports. Not later than 

6 months after the end of its program 

year, a MAP Participant shall submit a 

report on any evaluations conducted in 

accordance with the approved MAP 

program. 

(e) Where CCC is designated the 

cognizant agency for audit, CCC may 

require the MAP Participant to submit 

to CCC an annual OMB Circular A–133 

audit in accordance with 7 CFR Part 

3052. If CCC requires an additional 

audit with respect to a particular 

agreement, the MAP Participant shall 

arrange for such audit and shall submit 

to CCC, in the manner to be specified by 

CCC, such audit of the agreement. 

(f) CCC may require the submission of 

additional reports. 

(g) A MAP Participant’s program 

agreement and/or approval letter shall 

specify to whom the Participant shall 

submit the reports required in this 

section. 

§ 1485.23 Evaluation. 

(a) Policy. (1) The Government 

Performance and Results Act (GPRA) of 

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

1115–1119, 3515, 9703–9704) requires 

performance measurement of Federal 

programs, including the MAP. 

Evaluation of the MAP’s effectiveness 

will depend on a clear statement by 

Participants of goals to be met within a 

specified time, schedule of measurable 

milestones for gauging success, plan for 

achievement, and assessment of results 

of activities at regular intervals. The 

overall goal of the MAP and of 

individual Participants’ programming is 

to achieve or maintain sales that would 

not have occurred in the absence of 

MAP funding. A MAP Participant that 

can demonstrate such sales, taking into 

account extenuating factors beyond the 

Participant’s control, will have met the 

overall objective of the GPRA and the 

need for evaluation. 

(2) Evaluation is an integral element 

of program planning and 

implementation, providing the basis for 

the strategic plan. The evaluation results 

guide the development and scope of a 

MAP Participant’s program, 

contributing to program accountability, 

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and providing evidence of program 

effectiveness. 

(b) All MAP Participants must report 

annual results against their target 

market and/or regional constraint/ 

opportunity performance measures. 

These are outcome results usually based 

on multiple activities and should 

demonstrate progress made in the 

market. This report shall be completed 

and submitted to CCC no later than 6 

months following the end of the 

Participant’s program year. 

(c) MAP Participants conducting a 

branded program must also complete a 

brand promotion evaluation. A brand 

promotion evaluation is a review of the 

U.S. and foreign commercial entities’ 

export sales to determine whether the 

activity achieved the goals specified in 

the approved MAP program. This 

evaluation shall be completed and 

submitted to CCC no later than 6 

months following the end of the 

Participant’s program year. 

(d) When appropriate or required by 

CCC, a MAP Participant shall complete 

a program evaluation. A program 

evaluation is a review of the MAP 

Participant’s entire program, or an 

appropriate portion of the program as 

agreed to by the MAP Participant and 

CCC, to determine the effectiveness of 

the MAP Participant’s strategy in 

meeting specified goals. Actual scope 

and timing of the program evaluation 

shall be determined by the MAP 

Participant and CCC and specified in 

the approval letter. A MAP Participant 

shall submit, via a cover letter to CCC, 

an executive summary that assesses the 

program evaluation’s findings and 

recommendations and proposed 

changes in program strategy or design as 

a result of the evaluation. In addition to 

the requirements set forth in the 

applicable parts of this title (e.g., 7 CFR 

Parts 3015, 3016, and 3019), 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. 

(e) On an annual basis, or more often 

when appropriate or required by CCC, a 

MAP Participant shall complete and 

submit program success stories. CCC 

will announce to all MAP Participants 

in writing via a MAP notice issued on 

the FAS Web site the detailed 

requirements for completing and 

submitting program success stories. 

§ 1485.24 Compliance reviews and 

notices. 

(a) USDA staff may conduct 

compliance reviews of MAP 

Participants’ activities under the MAP 

program. MAP Participants shall 

cooperate fully with relevant USDA staff 

conducting compliance reviews and 

shall comply with all requests from 

USDA staff to facilitate the conduct of 

such reviews. 

(b) Upon conclusion of the 

compliance review, USDA staff will 

provide either a written compliance 

report or a letter to the MAP Participant. 

USDA staff will issue a compliance 

report if it appears that CCC may be 

entitled to recover funds from that 

Participant and/or it appears that the 

Participant is not complying with any of 

the terms or conditions of the program 

agreement, approval letter, or the 

applicable laws and regulations. The 

compliance report will explain the basis 

for any recovery of funds from the 

Participant. Within 30 days of the date 

of the compliance report, the MAP 

Participant shall repay CCC the amount 

owed either by submitting a check 

payable to CCC or by offsetting its next 

reimbursement claim. The MAP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. If, however, a MAP 

Participant notifies CCC within 30 days 

of the date of the compliance report that 

the Participant intends to file an appeal 

pursuant to § 1485.24(e), the amount 

owed to CCC by the MAP Participant is 

not due until the appeal procedures are 

concluded and CCC has made a final 

determination as to the amount owed. In 

the absence of any finding of funds due 

to CCC or other non-compliance, CCC 

will issue a letter to the MAP 

Participant. If, as a result of a 

compliance review, CCC determines 

that further review is needed in order to 

ensure compliance with the 

requirements of MAP, CCC may require 

the Participant to contract for an 

independent audit. 

(c) In addition, CCC may notify a 

MAP Participant in writing at any time 

if CCC determines that CCC may be 

entitled to recover funds from the 

Participant. CCC will explain the basis 

for any recovery of funds from the 

Participant in the written notice. The 

MAP Participant shall within 30 days of 

the date of the notice repay CCC the 

amount owed either by submitting a 

check payable to CCC or by offsetting its 

next reimbursement claim. The MAP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. If, however, a MAP 

Participant notifies CCC within 30 days 

of the date of the written notice that the 

Participant intends to file an appeal 

pursuant to § 1485.24(e), the amount 

owed to CCC by the MAP Participant is 

not due until the appeal procedures are 

concluded and 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 MAP Participant is in 

compliance with its program agreement, 

approval letter and/or applicable laws 

and regulations. 

(e) Appeals. 

(1) A MAP Participant may, within 60 

days of the date of the compliance 

report or written notice from CCC, 

submit a written response to CCC 

appealing the report or notice. CCC, at 

its discretion, may extend the period for 

response. 

(2) After review of the Participant’s 

response, CCC shall determine whether 

the Participant owes any funds to CCC 

and will inform the Participant in 

writing of the basis for the 

determination. CCC will initiate action 

to collect such amount by providing the 

Participant a written demand for 

payment of the debt pursuant to Debt 

Settlement Policies and Procedures, 7 

CFR part 1403. 

(3) Within 30 days of the date of the 

determination, the Participant may 

request in writing that CCC reconsider 

the determination and shall submit in 

writing the basis for such 

reconsideration. The Participant may 

also request a hearing. 

(4) If the Participant requests a 

hearing, CCC will set a date and time for 

the hearing. The hearing will be an 

informal proceeding. A transcript will 

not ordinarily be prepared unless the 

Participant bears the cost of a transcript; 

however, CCC may in its discretion have 

a transcript prepared at CCC’s expense. 

(5) CCC will base its final 

determination upon information 

contained in the administrative record. 

The Participant must exhaust all 

administrative remedies contained in 

this section before pursuing judicial 

review of a determination by CCC. 

§ 1485.25 Failure to make required 

contribution. 

A MAP Participant’s required 

contribution will be specified in the 

approval letter. If the MAP Participant’s 

required contribution is specified as a 

dollar amount and the MAP Participant 

does not make the required 

contribution, the MAP Participant shall 

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pay to CCC in dollars the difference 

between the amount actually 

contributed and the amount specified in 

the approval letter. If the MAP 

Participant’s required contribution is 

specified as a percentage of the total 

amount reimbursed by CCC, the MAP 

Participant may either return to CCC the 

amount of funds reimbursed by CCC to 

increase its actual contribution 

percentage to the required level or pay 

to CCC in dollars the difference between 

the amount actually contributed and the 

amount of funds necessary to increase 

its actual contribution percentage to the 

required level. A MAP Participant shall 

remit such payment within six months 

after the end of its program year. The 

MAP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance by CCC. 

§ 1485.26 Submissions. 

For all permissible methods of 

delivery, submissions required by this 

subpart shall be deemed submitted as of 

the date received by CCC. 

§ 1485.27 Disclosure of program 

information. 

(a) Documents submitted to CCC by 

MAP Participants are subject to the 

provisions of the Freedom of 

Information Act (FOIA), 5 U.S.C. 552, 7 

CFR part 1, subpart A—Official Records, 

and specifically 7 CFR 1.12, Handling 

Information from a Private Business. 

(b) Any research conducted by a MAP 

Participant pursuant to a MAP program 

agreement and/or approval letter shall 

be subject to the provisions relating to 

intangible property in the applicable 

parts of this title (e.g., 7 CFR Parts 3015, 

3016, and 3019). 

§ 1485.28 Ethical conduct. 

(a) A MAP Participant shall conduct 

its business in accordance with the laws 

and regulations of the country in which 

an activity is carried out and in 

accordance with applicable U.S. 

Federal, state and local laws, and 

regulations. A MAP Participant shall 

conduct its business in the United 

States in accordance with applicable 

Federal, state and local laws and 

regulations. All MAP Participants must 

comply with the regulations in the 

applicable parts of this title (e.g., 7 CFR 

Parts 1485, 3015, 3016, 3018, 3021, 

3019, and 3052). 

(b) Except for a U.S. agricultural 

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

neither a MAP Participant nor its 

affiliates shall make export sales of U.S. 

agricultural commodities and products 

covered under the terms of the 

applicable MAP agreement. Nor shall 

such entities charge a fee for facilitating 

an export sale. A MAP Participant may, 

however, collect check-off funds and 

membership fees that are required for 

membership in the MAP Participant. 

For the purposes of this paragraph, 

‘‘affiliate’’ means any partnership, 

association, company, corporation, 

trust, or any other such party in which 

the Participant has an investment other 

than in a mutual fund. 

(c) A MAP Participant shall not limit 

participation in its MAP activities to 

members of its organization. 

Participants shall ensure that their 

MAP-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 MAP Participant shall 

publicize its program and make 

participation possible for commercial 

entities throughout the relevant 

commodity sector or, in the case of 

SRTGs, throughout the corresponding 

region. This includes providing to such 

commercial entities, upon request, a 

copy of any document in its possession 

or control containing market 

information developed and produced 

under the terms of its MAP agreement. 

The Participant may charge a fee not to 

exceed the costs for assembling, 

duplicating and distributing the 

materials. This paragraph does not 

apply to U.S. agricultural cooperatives 

when implementing their own brand 

program. 

(d) A MAP Participant shall select 

U.S. agricultural industry 

representatives to participate in generic 

MAP activities such as trade teams, 

sales teams, and trade fairs based on 

criteria that ensure participation on an 

equitable basis by a broad cross section 

of the U.S. industry. If requested by 

CCC, a MAP Participant shall submit 

such selection criteria to CCC for 

approval. 

(e) All MAP Participants should 

endeavor to ensure fair and accurate 

fact-based advertising. Deceptive or 

misleading promotions may result in 

cancellation or termination of a 

Participant’s MAP agreement and the 

recovery of CCC funds related to such 

promotions from the Participant. 

(f) The MAP Participant must report 

any actions or circumstances that may 

have a bearing on the propriety of its 

MAP program to the appropriate 

Attache ́/Counselor, and its U.S. office 

shall report such actions or 

circumstances in writing to CCC. 

§ 1485.29 Contracting procedures. 

(a) Neither CCC nor any other agency 

of the U.S. Government nor any official 

or employee of CCC, FAS, USDA, or the 

U.S. Government has any obligation or 

responsibility with respect to MAP 

Participant contracts with third parties. 

(b) A MAP Participant shall comply 

with the procurement standards set 

forth below and in the applicable parts 

of this title when procuring goods and 

services and when engaging in 

construction to implement program 

agreements (e.g., 7 CFR Parts 3015, 

3016, and 3019). For purposes of this 

subpart, the ‘‘small purchase threshold’’ 

referenced in 7 CFR part 3019 is the 

‘‘simplified acquisition threshold’’ 

established by 41 U.S.C. 134. 

(c) Each MAP Participant shall 

establish contracting procedures for 

contracts that are funded, in whole or in 

part, with MAP funds that are open, fair, 

and competitive. 

(d) Each MAP Participant shall submit 

to CCC, for CCC approval, written 

contracting guidelines for contracts that 

are funded, in whole or in part, with 

MAP funds. CCC will notify all new and 

existing MAP Participants in writing in 

each Participant’s annual approval letter 

and through the FAS web site as to 

applicable submission dates for and 

dates for approvals of contracting 

guidelines. CCC’s approval of such 

contracting guidelines will remain in 

place until CCC retracts its approval in 

writing, or until new guidelines are 

approved that supersede them. Once 

approved by CCC, these contracting 

guidelines shall govern all of a 

Participant’s MAP-funded contracting 

involving contracts with an annual 

value of $35,000 or more. CCC may 

determine a different minimum value 

and announce that minimum value in 

writing to all MAP Participants via a 

MAP notice issued on the FAS Web site. 

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 MAP Participant 

may modify and resubmit these 

guidelines for re-approval at any time. 

In addition to the requirements set forth 

in the applicable parts of this title (e.g., 

7 CFR Parts 3015, 306, 3019), 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 

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Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 29513 

that states that no employee, officer, 

board member, or agent thereof of the 

MAP Participant will participate in the 

review, selection, award or 

administration of a contract if a real or 

apparent conflict of interest would arise. 

Such a conflict would arise when an 

employee, official, board member, agent, 

or the employee’s, officer’s, board 

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

organization that employs or is about to 

employ any of the parties indicated 

herein, has a financial or other interest 

in the firm selected for an award. 

Procedures shall provide that officers, 

employees, board members, and agents 

thereof shall neither solicit nor accept 

gratuities, favors, or anything of 

monetary value from contractors or 

subcontractors. Procedures shall also 

provide for disciplinary actions to be 

applied for violations of such standards 

by officers, employees, board members 

or agents thereof; 

(2) Procedures for reviewing 

proposals, bids, or other offers to 

provide goods and services. Separate 

procedures shall be developed for 

various situations, including, but not 

limited to: solicitations for highly 

technical services; solicitations for 

services that are not common in a 

specific market; solicitations that yield 

receipt of three or more bids; 

solicitations that yield receipt of fewer 

than three bids; 

(3) Requirements to conduct all 

contracting in an openly competitive 

manner. Individuals who develop or 

draft specifications, requirements, 

statements of work, invitations for bids, 

and/or requests for proposals for 

procurement of any goods or services, 

and such individuals’ families or 

partners, or an organization that 

employs or is about to employ any of 

the aforementioned, shall be excluded 

from competition for such procurement. 

MAP 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 3 

years on all multi-year contracts that are 

governed by the contracting guidelines. 

However, contracts for in-country 

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

Instead, the performance of in-country 

representation must be evaluated and 

documented by the MAP Participant 

annually to ensure that the terms of the 

contract are being met in a satisfactory 

manner; and 

(6) Requirements for written contracts 

with each provider of goods, services, or 

construction work. Such contracts shall 

require such providers to maintain 

adequate records to account for funds 

provided to them by the MAP 

Participant. 

(e) A MAP Participant may undertake 

MAP promotional activities directly or 

through a domestic or foreign third 

party. However, the MAP Participant 

shall remain responsible and 

accountable to CCC for all MAP 

promotional activities and related 

expenditures undertaken by such third 

party and shall be responsible for 

reimbursing CCC for any funds that CCC 

determines should be refunded to CCC 

in relation to such third-party’s 

promotional activities and expenditures. 

§ 1485.30 Property standards. 

The MAP Participant shall insure all 

MAP-funded real property and 

equipment acquired in furtherance of 

program activities and safeguard such 

against theft, damage and unauthorized 

use. The Participant shall promptly 

report any loss, theft, or damage of 

property to the insurance company. 

§ 1485.31 Anti-fraud requirements. 

(a) All MAP Participants. 

(1) All MAP Participants annually 

shall submit to CCC for approval a 

detailed fraud prevention program. CCC 

will notify all new and existing MAP 

Participants in writing in each 

Participant’s annual approval letter and 

through the FAS web site as to 

applicable submission dates for and 

dates for approvals of fraud prevention 

programs. MAP 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 

MAP Participant shall not conduct or 

permit any MAP promotion activities to 

occur unless and until CCC has 

communicated in writing approval of 

the MAP Participant’s fraud prevention 

program. 

(2) The MAP Participant, within five 

business days of receiving an allegation 

or information giving rise to a 

reasonable suspicion of 

misrepresentation or fraud that could 

give rise to a claim by CCC, shall report 

such allegation or information in 

writing to such USDA personnel as 

specified in the Participant’s MAP 

program agreement and/or approval 

letter. The MAP Participant shall 

cooperate fully in any USDA 

investigation of such allegation or 

occurrence of misrepresentation or 

fraud and shall comply with any 

directives given by CCC or USDA to the 

MAP Participant for the prompt 

investigation of such allegation or 

occurrence. 

(b) MAP Participants with brand 

programs. 

(1) The MAP Participant may charge 

a fee to brand participants to cover the 

cost of the fraud prevention program. 

(2) The MAP Participant shall repay 

to CCC funds paid to a brand participant 

through the MAP Participant on claims 

that the MAP Participant or CCC 

subsequently determines are 

unauthorized or otherwise nonreimbursable expenses within 30 days 

of the MAP Participant’s determination 

or CCC’s disallowance. The MAP 

Participant shall repay CCC by 

submitting a check to CCC or by 

offsetting the MAP Participant’s next 

reimbursement claim. The MAP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. A MAP Participant 

operating a brand program in strict 

accordance with an approved fraud 

prevention program, however, will not 

be liable to reimburse CCC for MAP 

funds paid on such claims if the claims 

were based on misrepresentations or 

fraud of the brand participant, its 

employees or agents, unless CCC 

determines that the MAP Participant 

was grossly negligent in the operation of 

the brand program regarding such 

claims. CCC shall communicate any 

such determination to the MAP 

Participant in writing. 

§ 1485.32 Program income. 

Any revenue or refunds generated 

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

proceeds of sales, refunds of value 

added taxes (VAT), the expenditures for 

which have been wholly or partially 

reimbursed with MAP funds, shall be 

used by the MAP Participant in 

furtherance of its approved MAP 

activities in the program period during 

which the MAP funds are available for 

obligation by the MAP Participant. The 

use of such revenue or refunds shall be 

governed by 7 CFR Part 1485. Interest 

earned on funds advanced by CCC is not 

program income. 

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29514 Federal Register / Vol. 77, No. 96 / Thursday, May 17, 2012 / Rules and Regulations 

§ 1485.33 Amendment. 

A program agreement may be 

amended in writing with the consent of 

CCC and the MAP Participant. 

§ 1485.34 Noncompliance with an 

agreement. 

If a MAP Participant fails to comply 

with any term in its program agreement 

or approval letter, CCC may take one or 

more of the enforcement actions set 

forth in the applicable parts of this title 

(e.g., 7 CFR Parts 3015, 3016, and 3019) 

and, if, appropriate, initiate a claim 

against the MAP Participant, following 

the procedures set forth in this subpart. 

CCC may also initiate a claim against a 

MAP Participant if program income or 

CCC-provided funds are lost due to an 

action or omission of the MAP 

Participant. 

§ 1485.35 Suspension, termination, and 

closeout of agreements. 

A program agreement may be 

suspended or terminated in accordance 

with the suspension and termination 

procedures in the applicable parts of 

this title (e.g., 7 CFR Parts 3015, 3016, 

3019). If an agreement is terminated, the 

applicable parts of this title will apply 

to the closeout of the agreement (e.g., 7 

CFR Parts 3015, 3016, 3019). 

§ 1485.36 Paperwork reduction 

requirements. 

The paperwork and recordkeeping 

requirements imposed by this subpart 

have been approved by OMB under the 

Paperwork Reduction Act of 1980. OMB 

has assigned control number 0551–0026 

for this information collection. 

Dated: May 4, 2012. 

Suzanne E Heinen, 

Administrator, Foreign Agricultural Service, 

and Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2012–11601 Filed 5–16–12; 8:45 am] 

BILLING CODE 3410–10–P 

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