44178 Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Rules and Regulations 

(g) The direct attribution provisions in 

part 1400 of this chapter apply to MFP. 

Under those rules, any payment to any 

legal entity will also be considered for 

payment limitation purposes to be a 

payment to persons or legal entities 

with an interest in the legal entity or in 

a sub-entity. If any such interested 

person or legal entity is over the 

payment limitation because of direct 

payment or their indirect interests or a 

combination thereof, then the payment 

to the actual payee will be reduced 

commensurate with the amount of the 

interest of the interested person in the 

payee. If anyone with a direct or 

indirect interest in a legal entity or subentity of a payee entity exceeds the AGI 

levels that would allow a producer to 

directly receive an MFP payment, then 

the MFP payment to the actual payee 

will be reduced commensurately with 

that interest. 

(h) For the purposes of the effect of 

lien on eligibility for Federal programs 

(28 U.S.C. 3201(e)), CCC waives the 

restriction on receipt of funds under 

MFP but only as to beneficiaries who, as 

a condition of such waiver, agree to 

apply the MFP payments to reduce the 

amount of the judgment lien. 

(i) The provisions of § 718.304 of this 

title, ‘‘Failure to Fully Comply,’’ do not 

apply to this part. 

Richard Fordyce, 

Administrator, Farm Service Agency. 

Robert Stephenson, 

Executive Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2018–18842 Filed 8–28–18; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1489 

RIN 0551–AA92 

Agricultural Trade Promotion Program 

AGENCY: Foreign Agricultural Service 

and Commodity Credit Corporation, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Commodity Credit 

Corporation (CCC) is issuing a new 

regulation to implement the 

Agricultural Trade Promotion Program 

(ATP). The ATP provides assistance to 

U.S. agricultural industries to conduct 

activities that promote U.S. agricultural 

commodities in foreign markets for 

commodities impacted by tariffs, 

including activities that address existing 

or potential non-tariff barriers to trade. 

This rule specifies, among other things, 

eligibility requirements, activities 

eligible for reimbursement, contribution 

requirements, and application 

procedures for the ATP. This rule also 

proposes a new information collection 

for required program information. 

Specific program requirements will be 

set forth in future Notices of Funds 

Availability (NOFAs) announced 

through the Grants.gov website. 

DATES: 

Effective date: August 30, 2018. 

Comment date: We will consider 

comments on the Paperwork Reduction 

Act (PRA) that we receive by: October 

29, 2018. 

ADDRESSES: We invite you to submit 

comments as required by the PRA for 

the information collection activities. In 

your comment, specify RIN 0551–NEW, 

and include the volume, date, and page 

number of this issue of the Federal 

Register. You may submit comments by 

any of the following methods: 

• Federal Rulemaking Portal: Go to 

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

instructions for submitting comments. 

• Email: podadmin@fas.usda.gov. 

• Fax: (202) 720–9361. 

• Mail or Courier Service: Director, 

Program Operations Division, OTP/FAS, 

U.S. Department of Agriculture, 1400 

Independence Avenue SW, Room 6512, 

Stop 1020, Washington, DC 20250– 

1020. 

Comments will be available for viewing 

online at http://www.regulations.gov. In 

addition, comments will be available for 

public inspection at the above address 

during business hours from 8 a.m. to 5 

p.m., Monday through Friday, except 

holidays. 

FOR FURTHER INFORMATION CONTACT: Curt 

Alt, Director, Program Operations 

Division, by telephone: (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: 

Background 

The nature and severity of financial 

impacts of recent international trade 

actions (for example, the imposition of 

tariffs by other countries on U.S. 

agricultural products) are disrupting the 

marketing of U.S. agricultural 

commodities and are outside of the 

control of the industries that are being 

negatively affected. In response to these 

actions by foreign governments, the 

Commodity Credit Corporation (CCC) 

has decided to exercise its authority 

under Section 5 of the CCC Charter Act, 

which includes authority for CCC to use 

its general powers to ‘‘aid in the 

development of foreign markets for . . . 

agricultural commodities . . . .’’ [15 

U.S.C. 714c(f)], to provide assistance to 

eligible organizations for market 

promotion activities. ATP funding is 

intended to ameliorate the negative 

impacts of recent international trade 

actions on U.S. agriculture by 

developing, maintaining, and expanding 

commercial export markets for U.S. 

agricultural commodities and products. 

ATP Participants may receive assistance 

for either generic or branded promotion 

activities as well as assistance to 

conduct activities to address existing or 

potential non-tariff barriers to trade. 

The Foreign Agricultural Service 

(FAS) will administer the ATP on behalf 

of the CCC. Specific program 

requirements and details for applying 

for assistance under the ATP will be set 

forth in future NOFAs announced 

through the Grants.gov website. 

Eligible Organizations 

The ATP is a cost-share program that 

is designed to reimburse nonprofit U.S. 

agricultural trade organizations, 

nonprofit state regional trade groups, 

state agencies, U.S. agricultural 

cooperatives, and other entities that 

conduct approved foreign market 

promotion activities and can 

demonstrate damages suffered as a 

result of tariffs imposed on U.S. 

agricultural products in 2018/2019. 

When considering eligible nonprofit 

U.S. trade organizations, the CCC gives 

priority to organizations that have the 

broadest producer representation and 

affiliated industry participation of the 

commodity being promoted. Eligible 

activities can be generic or branded in 

nature. In order to be eligible for ATP 

assistance, U.S. for-profit entities shall 

be limited to those whose size does not 

exceed 300 percent of the small 

business size standards established for 

their particular industry and published 

at 13 CFR part 121, Small Business Size 

Regulations. Eligible for-profit entities 

may participate in an ATP Participant’s 

brand promotion program. Any ATP 

Participant that operates a brand 

promotion program will be required to 

establish brand program operational 


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procedures. An ATP Participant shall 

publicize its ATP program and make 

participation possible for commercial 

entities throughout the relevant 

commodity sector or, in the case of State 

Regional Trade Groups (SRTGs), 

throughout the corresponding region. 

General Provisions 

The Unified Export Strategy (UES) 

internet-based system will be used to 

receive ATP applications and to receive 

reimbursement requests from ATP 

Participants. This is the system that the 

CCC uses for applications to and 

reimbursement requests under similar 

CCC programs, including the Market 

Access Program (MAP), the Foreign 

Market Development Cooperator 

Program (FMD), the Emerging Markets 

Program (EMP), the Technical 

Assistance for Specialty Crops Program 

(TASC), and the Quality Samples 

Program (QSP). Any eligible 

organization that applied for the 2019 

MAP and FMD will be able to add 

application information specific to the 

ATP to its existing 2019 UES 

submission. Details about this process 

will be announced in the ATP NOFAs. 

Information required in an applicant’s 

application are detailed in the 

regulation and include, among other 

things, a program justification 

describing the current market situation 

and a strategic plan that describes all 

proposed activities and how they will 

help accomplish the applicant’s 

objective to increase exports and 

develop access to new markets. The 

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. 

Participants in the ATP will be 

required to contribute a total amount in 

goods, services, and/or cash equal to at 

least 10 percent of the value of resources 

to be provided by the CCC for all generic 

promotion activities proposed to be 

undertaken by the ATP Participant. 

Branded participants will also be 

required to contribute in goods, 

services, and/or cash equal to at least 50 

percent of all brand promotion activities 

they undertake under the ATP. 

Lists of expenses eligible and 

ineligible for reimbursement under the 

ATP are also included in the regulation. 

Procedures for requesting 

reimbursement for eligible 

expenditures, or, if appropriate, for 

advances of program funds, are 

described in the regulation. Because it is 

critical that program funds are managed 

and accounted for properly, and focused 

on achieving results, paragraphs 

regarding financial management, 

reporting on outcomes that tie 

assistance directly to increased trade, 

evaluation, compliance review, and 

ethical conduct are included. Finally, to 

ensure that funds provided under the 

ATP are expended in a cost-effective 

manner and protected from fraud, 

provisions regarding contracting and 

anti-fraud requirements are delineated 

in the regulation. 

Effective Date 

The Administrative Procedure Act (5 

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

comment and a 30-day delay in the 

effective date of the rule are not 

required when the rule involves 

specified actions, including matters 

relating to grants or benefits. This rule 

establishes procedures and conditions 

related to the provision of assistance to 

entities conducting activities that 

promote U.S. agricultural commodities 

in foreign markets and thus falls within 

that exemption. Accordingly, this rule is 

effective upon publication in the 

Federal Register. Further, the 

opportunity for notice and comment 

provided in this document is limited to 

the PRA requirements for the 

information collection activities. 

Executive Orders 12866, 13563, 13771 

and 13777 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review,’’ direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasized the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. Executive 

Order 13777, ‘‘Enforcing the Regulatory 

Reform Agenda,’’ established a federal 

policy to alleviate unnecessary 

regulatory burdens on the American 

people. 

The Office of Management and Budget 

(OMB) designated this rule as 

economically significant under 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and therefore, 

OMB has reviewed this rule. The costs 

and benefits of this rule are summarized 

below. The full cost benefit analysis is 

available on regulations.gov. 

Executive Order 13771, ‘‘Reducing 

Regulation and Controlling Regulatory 

Costs,’’ requires that for every new 

significant or economically significant 

regulation issued, the new costs must be 

offset by the elimination of at least two 

prior regulations. This rule is 

considered an E.O. 13771 regulatory 

action. The $200 million upfront cost, 

when annualized over a perpetual time 

horizon and discounted back to its 2016 

equivalent using a 7 percent discount 

rate, is approximately $11 million. 

Cost Benefit Analysis Summary 

The ATP is a program to help U.S. 

organizations that promote the export of 

U.S. agricultural commodities adjust to 

changes in export markets due to recent 

trade disruptions by providing funding 

to modify promotional efforts in 

disrupted markets and to increase 

promotional efforts in undisrupted 

markets. Up to $200 million is available 

for assistance through the ATP. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601–612), as amended by the 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA, Pub. L. 

104–121), generally requires an agency 

to prepare a regulatory flexibility 

analysis of any rule whenever an agency 

is required by the Administrative 

Procedure Act or any other law to 

publish a proposed rule, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

This rule is not subject to the Regulatory 

Flexibility Act because the CCC is not 

required by the Administrative 

Procedure Act or any other law to 

publish a proposed rule for this 

rulemaking. 

Environmental Assessment 

The CCC has determined that the ATP 

does not constitute a major State or 

Federal action that would significantly 

affect the human or natural 

environment. Consistent with the 

National Environmental Policy Act 

(NEPA) (42 U.S.C. 4321–4347), no 

environmental assessment or 

environmental impact statement will be 

prepared for this regulatory action. 

Executive Order 12372 

Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs,’’ requires consultation with 

State and local officials that would be 

directly affect by proposed Federal 

financial assistance. The objectives of 

the Executive Order are to foster an 

intergovernmental partnership and a 

strengthened Federalism, by relying on 

State and local processes for State and 

local government coordination and 

review of proposed Federal financial 


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44180 Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Rules and Regulations 

assistance and direct Federal 

development. For reasons specified in 

the final rule related notice to 7 CFR 

part 3015, subpart V (48 FR 29115, June 

24, 1983), the programs and activities 

within this rule are excluded from the 

scope of Executive Order 12372. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, ‘‘Civil Justice 

Reform.’’ This rule will not preempt 

State or local laws, regulations, or 

policies unless they represent an 

irreconcilable conflict with this rule. 

The rule will not have retroactive effect. 

Before any judicial action may be 

brought regarding the provisions of this 

rule, the administrative appeal 

provisions of 7 CFR part 11 and this part 

must be exhausted. 

Executive Order 13132 

This rule has been reviewed under 

Executive Order 13132, ‘‘Federalism.’’ 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

Federal government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government, except as required 

by law. Nor does this rule impose 

substantial direct compliance costs on 

State and local governments. Therefore, 

consultation with the States is not 

required. 

Executive Order 13175 

This rule has been reviewed for 

compliance with Executive Order 

13175, ‘‘Consultation and Coordination 

with Indian Tribal Governments.’’ 

Executive Order 13175 requires Federal 

agencies to consult and coordinate with 

tribes on a government-to-government 

basis on policies that have tribal 

implications, including regulations, 

legislative comments, proposed 

legislation, and other policy statements 

or actions that have substantial direct 

effects on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes or on the 

distribution of power and 

responsibilities between the Federal 

government and Indian tribes. 

FAS has assessed the impact of this 

rule on Indian tribes and determined 

that this rule does not, to the knowledge 

of FAS, have tribal implications that 

required tribal consultation under 

Executive Order 13175. If a tribe 

requests consultation, FAS will work 

with USDA Office of Tribal Relations to 

ensure meaningful consultation is 

provided where changes, additions, and 

modifications identified herein are not 

expressly mandated by Congress. 

The Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA, Pub. L. 

104–4) requires Federal agencies to 

assess the effects of their regulatory 

actions on State local, and Tribal 

governments or the private sector. 

Agencies generally must prepare a 

written statement, including a cost 

benefit analysis, for proposed and final 

rules with Federal mandates that may 

result in expenditures of $100 million or 

more in any 1 year for State, local, or 

Tribal governments, in the aggregate, or 

to the private sector. UMRA generally 

requires agencies to consider 

alternatives and adopt the more cost 

effective or least burdensome alternative 

that achieves the objectives of the rule. 

This rule contains no Federal mandates, 

as defined in Title II of UMRA, for State, 

local, and Tribal governments or the 

private sector. Therefore, this rule is not 

subject to the requirements of sections 

202 and 205 of UMRA. 

Small Business Regulatory Enforcement 

Fairness Act (SBREFA) 

This rule is not a major rule under 

SBREFA. SBREFA normally requires 

that an agency delay the effective date 

of a major rule for 60 days from the date 

of publication to allow for 

Congressional review. 

Federal Assistance Programs 

The title and number of the Federal 

Domestic Assistance Program found in 

the Catalog of Federal Domestic 

Assistance to which this rule applies is 

TBD—Agricultural Trade Promotion 

Program and number. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (PRA), the 

following new information collection 

request that supports ATP was 

submitted to OMB for emergency 

approval. OMB approved the 6-month 

emergency information collection. Since 

the information collection activities will 

continue for more than the approved 6 

months, in addition, through this rule, 

the CCC is requesting comments from 

interested individuals and organizations 

on the information collection activities 

related to the ATP as described in this 

rule. Following the 60-day public 

comment period for this rule, the 

information collection request will be 

submitted to OMB for the 3-year 

approval to ensure adequate time for the 

information collection for the duration 

of the ATP. 

Title: Agricultural Trade Promotion 

Program. 

OMB Control Number: 0551–New. 

Type of Request: New Collection. 

Abstract: This information collection 

is required to support the regulation in 

7 CFR part 1489 for the ATP. The 

primary objective of the ATP is to 

encourage and aid in the creation, 

maintenance, and expansion of 

commercial export markets for U.S. 

agricultural products through cost-share 

assistance to eligible organizations. The 

program is a cooperative effort between 

the CCC and the eligible organizations. 

Currently, FAS anticipates that about 70 

organizations will participate directly in 

the program with activities in more than 

100 countries. 

Prior to initiating program activities, 

each ATP Participant must submit a 

detailed application to FAS which 

includes an assessment of overseas 

market potential; market or country 

strategies, constraints, goals, and 

benchmarks; proposed market 

promotion activities; estimated budgets; 

and a methodology to track program 

results (including performance 

measurement). Each Participant is also 

responsible for submitting: (1) 

Reimbursement claims for approved 

costs incurred in carrying out approved 

activities, (2) an end-of-year 

contribution report, (3) travel reports, 

and (4) progress reports/evaluation 

studies. Participants must maintain 

records on all information submitted to 

FAS. The information collected is used 

by FAS to manage, plan, evaluate, and 

account for Government resources. The 

reports and records are required to 

ensure the proper and judicious use of 

public funds. For the following 

estimated total annual burden on 

respondents, the formula used to 

calculate the total burden hour is the 

estimated average time per response 

multiplied by the estimated total annual 

responses. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 15 hours per 

response. 

Respondents: Nonprofit agricultural 

trade organizations, state regional trade 

groups, agricultural cooperatives, state 

agencies, and commercial entities. 

Estimated Number of Respondents: 

70. 

Estimated Number of Responses per 

Respondent: 60. 

Estimated Total Annual Burden on 

Respondents: 63,000 hours. 

FAS is requesting comments on all 

aspects of this information collection to 

help us to: 

(1) Evaluate whether the collection of 

information is necessary for the proper 

performance of the functions of the 

FAS, including whether the information 

will have practical utility; 


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(2) Evaluate the accuracy of the FAS’s 

estimate of burden including the 

validity of the methodology and 

assumptions used; 

(3) Enhance the quality, utility and 

clarity of the information to be 

collected; 

(4) Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

All comments received, including 

names and addresses when provided, 

will be a matter of public record. 

Comments will be summarized and 

included in the submission for Office of 

Management and Budget approval. 

List of Subjects in 7 CFR Part 1489 

Agricultural commodities, Exports. 

Accordingly, the CCC amends title 7 

of the Code of Federal Regulations by 

adding part 1489 to read as follows: 

PART 1489—AGRICULTURAL TRADE 

PROMOTION PROGRAM 

Sec. 

1489.10 General purpose and scope. 

1489.11 Definitions. 

1489.12 Participation eligibility. 

1489.13 Application process. 

1489.14 Application review and formation 

of agreements. 

1489.15 Operational procedures for brand 

programs. 

1489.16 Contribution rules. 

1489.17 Reimbursement rules. 

1489.18 Reimbursement procedures. 

1489.19 Advances. 

1489.20 Financial management. 

1489.21 Reports. 

1489.22 Evaluation. 

1489.23 Compliance reviews and notices. 

1489.24 Failure to make required 

contribution. 

1489.25 Submissions. 

1489.26 Disclosure of program information. 

1489.27 Ethical conduct. 

1489.28 Contracting procedures. 

1489.29 Property standards. 

1489.30 Anti-fraud requirements. 

1489.31 Program income. 

1489.32 Amendment. 

1489.33 Noncompliance with an agreement. 

1489.34 Suspension, termination, and 

closeout of agreements. 

1489.35 Paperwork reduction requirements. 

Authority: Section 5(f) of the CCC Charter 

Act, 15 U.S.C. 714c(f). 

§ 1489.10 General purpose and scope. 

(a) This part sets forth the general 

terms, conditions, and policies 

governing the Commodity Credit 

Corporation’s (CCC) operation of the 

Agricultural Trade Promotion Program 

(ATP). This program will provide 

assistance to eligible organizations to 

conduct market promotion activities, 

including activities to address existing 

or potential non-tariff barriers to trade, 

that promote U.S. agricultural 

commodities in foreign markets. 

Specific program requirements will be 

set forth in future Notices of Funds 

Availability announced through the 

Grants.gov website. 

(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 ATP and 

ATP 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) 2 CFR part 417—Governmentwide Debarment and Suspension (Nonprocurement). 

(v) 2 CFR part 418—New Restrictions 

on Lobbying. 

(vi) 2 CFR part 421—Requirements for 

Drug-Free Workplace (Financial 

Assistance). 

(vii) 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 the CCC 

are also applicable to the ATP and the 

regulations set forth in this part. 

(3) ATP Participants must also 

comply with Title VI of the Civil Rights 

Act of 1964 and related civil rights 

regulations and policies. 

(4) Other laws and regulations that 

apply to the ATP and ATP 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) 2 CFR part 200—Office of 

Management and Budget Guidance, 

Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards. 

(vi) 2 CFR part 400—Department of 

Agriculture, Uniform Administrative 

Requirements, Cost Principles, and 

Audit Requirements for Federal Awards. 

(vii) 37 CFR part 401.1—Rights to 

Inventions Made by Nonprofit 

Organizations and Small Business Firms 

Under Government Grants, Contracts, 

and Cooperative Agreements. 

(viii) Executive Order 13224, as 

amended, Blocking Property and 

Prohibiting Transactions with Persons 

Who Commit, Threaten to Commit, or 

Support Terrorism. 

(c) Under the ATP, the CCC may 

provide multi-year grant assistance to 

eligible U.S. entities to conduct certain 

marketing and promotion activities, 

including activities to address existing 

or potential non-tariff trade barriers, 

aimed at developing, maintaining, or 

expanding commercial export markets 

for U.S. agricultural commodities. ATP 

Participants may receive assistance for 

either generic or brand promotion 

activities. While activities generally take 

place overseas, reimbursable activities 

may also take place in the United States. 

The CCC expects all activities that occur 

in the United States for which ATP 

reimbursement is sought to develop, 

maintain, or expand the commercial 

export market for the relevant U.S. 

agricultural commodity in accordance 

with the ATP Participant’s approved 

ATP program. When considering 

eligible nonprofit U.S. trade 

organizations, the CCC gives priority to 

organizations that have the broadest 

producer representation and affiliated 

industry participation of the commodity 

being promoted. 

(d) The ATP generally operates on a 

reimbursement basis. 

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

benefits generated by ATP agreements 

are broadly available throughout the 

relevant agricultural sector and that no 

single entity gains an undue advantage. 

The CCC also endeavors to enter into 

ATP agreements covering a broad array 

of agricultural commodity sectors. The 

ATP is administered by personnel of the 

Foreign Agricultural Service (FAS) 

acting on behalf of the CCC. 

§ 1489.11 Definitions. 

For purposes of this subpart the 

following definitions apply: 

Activity means a specific foreign 

market development effort undertaken 

by an ATP Participant. 

Administrative expenses or costs 

means expenses or costs of 

administering, directing, and controlling 

an organization that is an ATP 

Participant. Generally, this would 

include expenses or costs such as those 

related to: 

(1) Maintaining a physical office 

(including, but not limited to, rent, 


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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 means a document by 

which the CCC informs an applicant 

that its ATP application has been 

approved for funding. This letter may 

also approve specific activities and 

contain terms and conditions in 

addition to the program agreement. This 

letter requires a countersignature by the 

ATP Participant before it becomes 

effective. 

ATP means the Agricultural Trade 

Promotion Program. 

ATP Notice means Agricultural Trade 

Promotion Program notices are 

documents that CCC issues for 

informational purposes. These ATP 

notices are made available electronically 

at www.fas.usda.gov/programs/ 

agricultural-trade-promotion-programatp. These notices have no legal effect. 

They are intended to alert ATP 

Participants of various aspects of CCC’s 

current administration of the ATP 

program. For example, CCC issues ATP 

notices to alert ATP 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. 

ATP Participant or Participant means 

an entity that has entered into an ATP 

program agreement with the CCC. 

Attache ́/Counselor means the FAS 

employee representing USDA interests 

in the foreign country in which 

promotional activities are conducted. 

Brand participant means a U.S. forprofit entity 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 ATP brand 

promotion program of an ATP 

Participant. This definition does not 

include any U.S. agricultural 

cooperatives that are ATP Participants 

that apply for ATP funds to implement 

their own brand programs. 

Brand promotion means an activity 

that involves the exclusive or 

predominant use of a single U.S. 

company name, or the logo or brand 

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

brand of a U.S. agricultural cooperative, 

or any activity undertaken by a brand 

participant in the brand program. 

CCC means the Commodity Credit 

Corporation, including any agency or 

official of the United States delegated 

the responsibility to act on behalf of the 

CCC. 

Contribution means an expenditure 

made by an ATP Participant, the U.S. 

industry, or State agency in support of 

an approved activity. This includes 

expenditures to be made by entities in 

the ATP Participant’s industry in 

support of the entities’ related 

promotion activities in the markets 

covered by the ATP Participant’s 

agreement. 

Credit memo means a commercial 

document, also known as a credit 

memorandum, issued by the ATP 

Participant to a commercial entity that 

owes the ATP Participant a certain sum. 

A credit memo is used when the ATP 

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 ATP 

Participant owes the entity against the 

amount the entity owes to the ATP 

Participant. 

Demonstration projects means 

activities involving the erection or 

construction of a structure or facility or 

the installation of equipment. 

Expenditure means either payment 

via the transfer of funds or offset 

reflected in a credit memo in lieu of a 

transfer of funds. 

FAS means Foreign Agricultural 

Service, USDA. 

FAS website means a website 

maintained by FAS providing 

information on ATP. It is currently 

accessible at www.fas.usda.gov/ 

programs/agricultural-trade-promotionprogram-atp. 

Foreign third party means a foreign 

entity that an ATP Participant works 

with to promote the export of a U.S. 

agricultural commodity under the ATP 

program. 

Generic promotion means 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 

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 ATP 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. 

Market means the country or 

countries targeted by an activity. 

Notification means a document from 

the ATP Participant by which the ATP 

Participant proposes to CCC changes to 

the activities and/or funding levels in an 

approved ATP program agreement and/ 

or approval letter. 

Product samples means a 

representative part of a larger whole 

promoted commodity or group of 

promoted commodities. Product 

samples include all forms of a promoted 

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

independent of the ultimate utilization 

of the sample. Product samples must be 

used in support of international 

marketing activities including, but not 

limited to, displays, food process 

testing, cooking demonstrations, or 

trade and consumer tastings. 

Program agreement means a 

document entered into between CCC 

and an ATP Participant setting forth the 

terms and conditions of approved 

activities under ATP, including any 

subsequent amendments to such 

agreement. 

Program period means a 12-month 

period during which an ATP Participant 

can undertake activities consistent with 

this subpart and its program agreement 

and approval letter with CCC. Program 

periods will begin on January 1 and end 

on December 31 of the same year, or 

begin on July 1 and end on June 30 of 

the subsequent year. 

Promoted commodity means a U.S. 

agricultural commodity the sale of 

which is the intended result of a 

promotional activity. 

Sales and trade relations 

expenditures (STRE) means 

expenditures made on breakfast, lunch, 

dinner, receptions, and refreshments at 

approved activities; miscellaneous 


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courtesies such as checkroom fees, taxi 

fares and tips for approved activities; 

and decorations for a special 

promotional occasion that is part of an 

approved activity. 

Sales team means a group of 

individuals engaged in an approved 

activity intended to result in specific 

sales. 

Small-sized entity means a U.S. forprofit entity that meets the small 

business size standards published at 13 

CFR part 121, Small Business Size 

Regulations. 

SRTG means State Regional Trade 

Group. An SRTG is a nonprofit 

association of state-funded agricultural 

promotion agencies. 

Temporary contractor means a 

contractor, typically a consultant or 

other highly paid professional that is 

hired on a short term basis to assist in 

the performance of an activity. 

Trade team means a group of 

individuals engaged in an approved 

activity intended to promote the 

interests of an entire agricultural sector 

rather than to result in specific sales by 

any of its members. 

UES website means a website 

maintained by FAS through which 

applicants may apply online to ATP and 

any other USDA market development 

program. The website is currently 

accessible to persons with eauthentication certification at https://

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

Unified Export Strategy (UES) means 

a standardized online internet 

application developed by USDA and 

available for use by entities to apply to 

any USDA market development 

program, including the ATP. 

U.S. agricultural commodity means 

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 means the United States 

Department of Agriculture. 

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

association, or other entity organized or 

incorporated, located and doing 

business for profit in the United States, 

and engaged in the export or sale of a 

U.S. agricultural commodity. 

§ 1489.12 Participation eligibility. 

To participate in the ATP as an ATP 

Participant, 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. 

§ 1489.13 Application process. 

(a) General application requirements. 

CCC will periodically issue a Notice of 

Funds Availability through the 

Grants.gov website that it is accepting 

applications for participation in the 

ATP. 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 website, but are not 

required to do so. Applicants may apply 

to conduct a generic promotion program 

and/or a brand promotion program that 

provides ATP funds to brand 

participants for branded promotion, as 

well as to conduct other market 

promotion activities including activities 

to address existing or potential nontariff trade barriers. An applicant that is 

a U.S. agricultural cooperative may also 

apply for funds to conduct its own 

brand promotion program. 

(1) Applicant and program 

information. All applications shall 

contain: 

(i) The name, address, and internet 

location of the home page of the 

applicant organization; 

(ii) The name of the applicant’s Chief 

Executive Officer; 

(iii) The name, telephone number, fax 

number, and email address of the 

applicant’s primary contact person; 

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

responsible for managing the proposed 

program; 

(v) 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; 

(vi) Tax exempt identification number 

of the applicant, if applicable; 

(vii) Beginning and ending dates for 

proposed program period (mm/dd/yy– 

mm/dd/yy); 

(viii) Dollar amount of CCC resources 

requested for generic activities; 

(ix) Dollar amount of CCC resources 

requested for brand activities; 

(x) Dollar amount of CCC resources 

requested for other market promotion 

activities, including activities to address 

existing or potential non-tariff trade 

barriers; 

(xi) Total dollar amount of CCC 

resources requested; 

(xii) Percentage of CCC resources 

requested for general administrative 

expenses; 

(xiii) A Dun and Bradstreet DUNS 

number for the applicant; 

(xiv) A description of the applicant 

organization’s membership and 

membership criteria; 

(xv) A list of organizations affiliated 

with the applicant, including parent 

organizations, subsidiaries, and 

partnerships; 

(xvi) A description of the applicant’s 

management and administrative 

capability; 

(xvii) A description of the applicant’s 

prior export promotion experience; 

(xviii) 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 

(xix) Value, in U.S. dollars, of 

proposed contributions from other 

sources. 

(2) Program justification. All 

applications shall contain: 

(i) A description of the promoted U.S. 

agricultural commodity(s), its 

harmonized tariff classification, the 

applicable commodity aggregate code 

(available from the UES website) and 

the percentage of U.S. origin content by 

weight, exclusive of added water; 

(ii) A description of the anticipated 

supply and demand situation for the 

promoted U.S. agricultural 

commodity(s) as well as a 

demonstration of loss suffered as a 

result of imposed tariffs (reduced sales, 

lost revenue, and decreased market 

share, etc.); 

(iii) 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; 

(iv) If the proposal is for 2 or more 

years, an explanation why the proposal 

should be funded on a multi-year basis; 

and 

(v) 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 CCC market 

development programs from year-toyear, variations in promotional 


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strategies within a country, and new 

markets. 

(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 

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 ATP 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 ATP and of 

individual Participants’ programming is 

to restore or increase sales that would 

not have occurred in the absence of ATP 

funding. An ATP Participant may 

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

period. 

(F) For each target country, five years 

or as many years as are available of: 

(1) Historical U.S. export data; 

(2) U.S. market share; and 

(3) CCC market development program 

funds received by the applicant; 

(G) For each target country, three 

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 description of any demonstration 

projects, if applicable; 

(J) Data summarizing the applicant’s 

historical and projected exports, market 

share, and CCC market development 

program budgets of the promoted U.S. 

agricultural commodity(s); 

(K) 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) Requests for addition evaluation 

information. 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. CCC will consider 

proposals for demonstration projects, 

provided: 

(1) No more than one such 

demonstration project per constraint is 

undertaken within a market; 

(2) The constraint to be addressed in 

the target market is a lack of technical 

knowledge or expertise; 

(3) The demonstration project is a 

practical and cost effective method of 

overcoming the constraint; and 

(4) A third-party must participate in 

such project through a written 

agreement with the ATP Participant. 

(d) Universal Identifier and Central 

Contractor Registration (CCR). In 

accordance with 2 CFR part 25, each 

entity that applies to the ATP program 

and does not qualify for an exemption 

under 2 CFR 25.110 must: 

(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 CCC; and 

(3) Provide its DUNS number in each 

application or plan it submits to CCC. 

(e) Reporting Subaward and Executive 

Compensation Information. In 

accordance with 2 CFR part 170, each 

entity that applies to the ATP 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 ATP funding. 

§ 1489.14 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 ATP through another 

ATP Participant. 

(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 CCC market development 

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 

period’s ATP Notice of Funds 

Availability announcement: 

(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 to 

meet minimum cost share requirements; 

(5) Market share goals in target 

country(ies); 

(6) The percentage by weight, 

exclusive of added water, of U.S. 

agricultural commodities contained in 

the promoted products; 

(7) The degree of value-added 

processing in the United States; 

(8) Proposed ATP-funded general 

administrative and overhead costs 

compared to proposed ATP-funded 

direct promotional costs; and 

(d) Approval decision—(1) Approval 

criteria and factors. CCC will approve 

those applications that it determines 

best satisfy the criteria and factors 

specified in paragraphs (b) and (c) of 

this section. 

(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 an 

ATP 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 ATP 

Participant shall designate at least two 

individuals in its organization to sign 

program agreements and amendments, 

approval letters, reimbursement claims, 

and advance requests. The ATP 

Participant shall submit the signature 

card signed by those designated 

individuals and by the ATP 

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 ATP Participant with IDs 

and passwords for the UES website, as 

necessary. ATP Participants shall 

protect these IDs and passwords in 

accordance with USDA’s information 

technology policies that CCC will 

provide to ATP Participants. ATP 

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) Annual certifications. An ATP 

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

ATP program shall obtain annual 

certifications from all such entities that 

certify their size or their status as U.S. 

agricultural cooperatives, as defined in 

these regulations. The Participant shall 

retain these certifications in accordance 

with the recordkeeping requirements of 

this part. 

(i) Changes to activities and funding— 

(1) Adding a new activity. (i) An ATP 

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 ATP 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 ATP Participant via 

the UES website whether the requested 

budget is approved. 

(2) Modifying existing activities and 

their funding levels. (i) An ATP 

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) An ATP 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. 

§ 1489.15 Operational procedures for 

brand programs. 

(a) Where CCC approves an 

application by an ATP Participant to 

run a brand promotion program that 

will include brand participants, the ATP 

Participant shall establish brand 

program operational procedures. The 

ATP Participant shall submit to CCC for 

approval its proposed brand program 

operational procedures. CCC will notify 

all ATP Participants in writing in each 

Participant’s approval letter and through 

the FAS website as to applicable 

submission dates for and dates for 

approvals of brand program operation 

procedures. Such procedures shall 

include, at a minimum, a brand program 

application, application procedures, 

application review criteria, brand 

participant eligibility requirements, a 

participation agreement, reimbursement 

requirements, compliance requirements, 

reporting and recordkeeping 

requirements, employment practices, 

financial management requirements, 

contracting procedures, and evaluation 

requirements. The ATP Participant must 

submit to CCC for approval any 

proposed changes to already approved 

brand program operational procedures 

before implementing such proposed 

changes. 

(b) The ATP Participant shall not 

enter into any participation agreements 

with brand participants nor shall it 

implement any ATP brand activities 

unless and until CCC has communicated 

in writing its approval of the proposed 

operational procedures to the ATP 

Participant. 

(c) Participation agreements between 

ATP Participants and brand 

participants: Where CCC approves an 

ATP Participant’s application to run a 

brand promotion program that will 

include brand participants, the ATP 

Participant shall enter into participation 

agreements with brand participants. 

Brand participants’ size may not exceed 

300 percent of the applicable small 

business size standard. These 

agreements must: 

(1) Specify a time period for such 

brand promotion and require that all 

brand promotion expenditures be made 

within the ATP Participant’s approved 

program period; 

(2) Make no allowance for extension 

or renewal; 

(3) Limit reimbursable expenditures 

to those made in countries and for 


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activities approved in the brand 

participant’s activity plan; 

(4) Specify the percentage of 

promotion expenditures that will be 

reimbursed, reimbursement procedures, 

and documentation requirements; 

(5) Include a written certification by 

the brand participant that it either owns 

the brand of the product it will promote 

or has exclusive rights to promote the 

brand in each of the countries in which 

promotion activities will occur; 

(6) Require that all product labels, 

promotional material, and advertising 

will identify the origin of the 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 the CCC; that 

such origin identification will be 

conspicuously displayed in a manner 

easily observed as identifying the origin 

of the product; and that such origin 

identification will conform, to the 

extent possible, to the U.S. standard of 

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

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

the above terms as a descriptor or in the 

name of the product (e.g., Cincinnati 

style chili, Gina’s American Pizza) does 

not satisfy the product origin 

requirement. Phrases ‘‘product of’’, 

‘‘grown in’’ or ‘‘made in’’ are 

encouraged, but not required. An ATP 

Participant may request an exemption 

from this requirement on a case-by-case 

basis. All such requests shall be in 

writing and include justification 

satisfactory to the CCC that this labeling 

requirement would hinder an ATP 

Participant’s promotional efforts. CCC 

will determine, on a case by case basis, 

whether sufficient justification exists to 

grant an exemption from the labeling 

requirement. In addition, the CCC may 

temporarily waive this requirement 

where the CCC has determined that 

such labeling will likely harm sales 

rather than help them. Such 

determinations will be announced to 

ATP Participants via an ATP notice 

issued on the FAS website; 

(7) Include a written certification by 

the brand participant that identifies its 

size on the date of its application for 

branded program funding or that it is a 

U.S. agricultural cooperative; 

(8) Require that the brand participant 

submit to the ATP Participant a 

statement certifying that any Federal 

funds received will supplement, but not 

supplant, any private or third party 

funds or other contributions to program 

activities; and 

(9) Require the brand participant to 

maintain all original records and 

documents relating to program activities 

for three calendar years following the 

end of the applicable program period 

and make such records and documents 

available upon request to authorized 

officials of the U.S. Government. 

§ 1489.16 Contribution rules. 

(a) In ATP generic promotion 

programs, an ATP 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 the CCC for all generic 

promotion activities proposed to be 

undertaken by the ATP Participant. 

(b) In ATP brand promotion programs, 

an ATP Participant conducting its own 

brand promotion that is a U.S. 

agricultural cooperative or a small-sized 

brand participant shall contribute at 

least 50 percent of the total eligible 

expenditures made on each approved 

brand promotion. 

(c) An ATP Participant must use its 

own funds and may not use ATP 

program funds to pay any 

administrative costs of the ATP 

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

legal fees, except as set forth in this 

subpart. Where the ATP Participant uses 

its own funds to pay for administrative 

costs, such costs may be counted in 

calculating the amount of contributions 

the ATP Participant contributes to ATP 

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 or 

agricultural sector in support of the 

entities’ related promotion activities in 

the markets covered by the applicant’s 

application) or State agency will make, 

the ATP applicant may include the costs 

listed under paragraph (d)(2) of this 

section if: 

(i) Expenditures are necessary and 

reasonable for accomplishment of an 

approved activity, 

(ii) Expenditures are not included as 

contributions for any other Federal 

award; 

(iii) Expenditures are not paid by the 

Federal Government under another 

Federal award, except where the Federal 

statute authorizing a program 

specifically provides that Federal funds 

made available for such program can be 

applied to matching or cost sharing 

requirements of other Federal programs. 

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

section, as well as applicable cost 

principles (e.g., 2 CFR part 200) 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 subscriptions that 

are of a technical, economic, or 

marketing nature and that are relevant 

to the approved activities of the ATP 

Participant; 

(ix) The cost of activities conducted 

overseas; 

(x) Credit card fees; 

(xi) The cost of any independent 

evaluation or audit that is not required 

by the CCC to ensure compliance with 

program agreement or regulatory 

requirements; 

(xii) The cost of giveaways, awards, 

prizes and gifts; 

(xiii) The cost of product samples; 

(xiv) Fees for participating in U.S. 

government sponsored or endorsed 

export promotion activities; 

(xv) The cost of air and local travel in 

the United States; 

(xvi) STRE and the cost associated 

with trade shows, seminars, and 

entertainment conducted in the United 

States where the STRE and costs 

associated with trade shows, seminars, 

and entertainment have a programmatic 

purpose and are authorized in the 

program agreement and/or the approval 

letter or authorized by prior written 

approval of the CCC; 

(xvii) Other administrative expenses 

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

an overseas office); and 

(xviii) The cost of any activity 

expressly listed as reimbursable in this 

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’’); 


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(iii) Any land costs other than 

allowable costs for office space; 

(iv) The cost of refreshments and 

related equipment provided to office 

staff; 

(v) The cost of insuring articles owned 

by private individuals; 

(vi) The cost of any arrangement that 

has the effect of reducing the selling 

price of a U.S. agricultural commodity; 

(vii) The cost of product development, 

product modifications, or product 

research, except as described in 

§ 1489.17(c)(22); 

(viii) Slotting fees or similar sales 

expenditures; 

(ix) Membership fees in clubs and 

social organizations; and 

(x) Any expenditure for an activity 

prior to the CCC’s approval of that 

activity. 

(4) The CCC shall determine, at the 

CCC’s discretion, whether any cost not 

expressly listed in this section may be 

included by the ATP Participant as an 

eligible contribution. 

§ 1489.17 Reimbursement rules. 

(a) An ATP Participant may seek 

reimbursement for an eligible 

expenditure if: 

(1) The expenditure was necessary 

and reasonable for accomplishment 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 part 200) to the 

extent these principles do not directly 

conflict with the provisions of this 

subpart, for either brand or generic 

promotion activities, the 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 ATP-promoted product 

is not reimbursable. If advertising is 

related to both coupons or price 

discounts for products other than the 

ATP Participant’s promoted products as 

well as for ATP-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, 

except as authorized in paragraph (c)(9) 

of this section). 

(5) Temporary displays and rental of 

space for temporary displays; 

(6) Expenditures, other than travel 

expenditures, associated with seminars 

and educational training, whether 

conducted in the United States or 

outside the United States; 

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

section, expenditures, other than travel 

expenditures, associated with retail, 

trade and consumer exhibits and shows, 

whether held outside or inside the 

United States, including participation 

fees, booth construction, transportation 

of related materials, rental of space and 

equipment, and duplication of related 

printed materials. However, with regard 

to non-travel expenditures associated 

with retail, trade and consumer exhibits 

and shows held inside the United 

States, such expenditures are 

reimbursable only if the exhibit or show 

is: A food or agricultural show with no 

less than 30 percent of exhibitors selling 

food or agricultural products; and an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 15 

percent of its visitors are from countries 

other than the host country. CCC will 

compile a list of approved retail, trade 

and consumer exhibits and shows held 

inside the United States for which ATP 

reimbursement is available and such list 

will be announced to ATP Participants 

via an ATP notice issued on FAS’ 

website; 

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

section, international travel 

expenditures, not to exceed the full fare 

economy rate, including any fees for 

modifying the originally purchased 

airline ticket, per diem, passports, visas 

and inoculations, as allowed under the 

U.S. Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200, for no more than two 

representatives of a single brand 

participant (or ATP Participant directly 

running its own brand program) to 

exhibit their company’s (or 

cooperative’s) products at a retail, trade, 

or consumer exhibit or show held 

outside the United States. 

Representatives may include employees 

and board members of private 

companies, employees or members of 

cooperatives, or any broker, consultant, 

or marketing representative contracted 

by the company or cooperative to 

represent the company or cooperative in 

sales transactions. All travel should 

follow a direct or usually traveled route; 

(9) Subscriptions that are of a 

technical, economic, or marketing 

nature and that are relevant to the 

approved activities of the ATP 

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 ATP Participants 

via an ATP notice issued on FAS’ 

website. Reimbursement is available 

only when: 

(i) The items are described in detail 

with a per unit cost in an approved 

strategic plan; and 

(ii) Distribution of the promotional 

item is not contingent upon the 

consumer, or other target audience, 

purchasing a good or service to receive 

the promotional item; 

(12) The design and production of 

packaging, labeling or origin 

identification, to be used during the 

program period in which the 

expenditure is made, if such packaging, 

labeling or origin identification is 

necessary to meet the importing 

requirements of a foreign country; 

(13) The design, production, and 

distribution of coupons for products 

other than the ATP Participant’s 

promoted products. If such activities 

include both coupons or price discounts 

for products other than the ATP 

Participant’s promoted products as well 

as for ATP-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); 

(14) An audit of an ATP Participant as 

required by 2 CFR part 200, subpart F, 

if the ATP is the ATP Participant’s 

largest source of Federal funding; 

(15) The translation of written 

materials as necessary to carry out 

approved activities; 

(16) Expenditures associated with 

developing, updating, and servicing 

websites on the internet that clearly 

target a foreign audience; 

(17) International travel expenditures, 

not to exceed the full fare economy rate, 

including any fees for modifying the 

originally purchased airline ticket, per 

diem, passports, visas and inoculations, 

as allowed under the U.S. Federal 

Travel Regulations (41 CFR parts 301 

through 304) and 2 CFR part 200, 


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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 ATP Participant’s UES; 

(ii) The trade mission included 

representatives, as defined in paragraph 

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

of five different companies (or 

cooperatives), and no more than two 

representatives from each participating 

company (or cooperative); 

(iii) The appropriate FAS overseas 

office supported the trade mission by 

dedicating meaningful funding or other 

resources (such as facilities or staff time) 

to the activity; and 

(iv) The ATP Participant with the 

approved brand program produced an 

itinerary or agenda for the trade mission 

that demonstrated that company (or 

cooperative) representatives would be 

engaged for a minimum of 6 hours per 

day (except for the first and last days of 

the mission) in trade mission activities 

that include, at a minimum, each of the 

following: 

(A) A product showcase where the 

FAS overseas office approved an 

invitation list of qualified buyers; 

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

meetings; and 

(C) Evaluation and feedback sessions 

with FAS staff and trade mission 

sponsors. 

(v) Reimbursement is conditional on 

the ATP Participant having notified in 

writing the Attache ́/Counselor in the 

destination country in advance of the 

travel. All travel should follow a direct 

or usually traveled route; 

(18) Where USDA has sponsored or 

endorsed a U.S. pavilion at a retail, 

trade and consumer exhibit or show, 

whether held outside or inside the 

United States, ATP funds may be used 

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

Participants located within the U.S. 

pavilion. Such expenditures must also 

adhere to the standard terms and 

conditions of the U.S. pavilion 

organizer. All travel should follow a 

direct or usually traveled route. Upon 

written request, the CCC may 

temporarily waive this subsection, on a 

case by case basis, where: 

(i) The trade show is segregated into 

product pavilions; or 

(ii) A company’s distributor or 

importer is located outside the U.S. 

pavilion. Such waiver will be provided 

to the ATP Participant in writing; and 

(19) Contracts with U.S.-based 

organizations when the only contracted 

service such organizations provide to an 

ATP 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 

ATP Participant’s domestic home office 

during a program period, any direct 

promotional services such organization 

provides to the Participant, whether for 

the Participant’s domestic or overseas 

offices, during the same program period 

are not reimbursable. 

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

this section as well as applicable cost 

principles (e.g., 2 CFR part 200), but for 

generic promotion activities only, the 

CCC will also reimburse, in whole or in 

part, the cost of: 

(1) Temporary contractor fees for 

contractors stationed overseas, except 

the CCC will not reimburse any portion 

of any such fee that exceeds the daily 

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

Government employees in effect on the 

date the fee is earned, unless a bidding 

process reveals that such a contractor is 

not available at or below that salary rate; 

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

section, international travel 

expenditures, not to exceed the full fare 

economy rate, including any fees for 

modifying the originally purchased 

airline ticket, per diem, passports, visas 

and inoculations, for activities held 

outside the United States or in the 

United States, as allowed under the U.S. 

Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200, except that if the activity is 

participation in a retail, trade, or 

consumer exhibit or show held inside 

the United States, international travel 

expenditures are covered only if the 

exhibit or show is: A food or 

agricultural show with no less than 30 

percent of exhibitors selling food or 

agricultural products; and an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 15 

percent of its visitors are from countries 

other than the United States. The CCC 

will compile a list of approved retail, 

trade and consumer exhibits and shows 

held inside the United States for which 

ATP reimbursement is available and 

such list will be announced to ATP 

Participants via an ATP notice issued on 

FAS’ website. 

(i) The CCC generally will not 

reimburse any portion of air travel, 

including any fees for modifying the 

originally purchased ticket, in excess of 

the full fare economy rate or when the 

ATP Participant fails to notify the 

Attache ́/Counselor in the destination 

country in advance of the travel, unless 

the CCC determines it was impractical 

to provide such notice. If a traveler flies 

in business class or a different premium 

class, the basis for reimbursement will 

be the full fare economy class rate for 

the same flight and the ATP 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 ATP Participant shall 

provide documentation establishing 

such average of the full fare economy 

class rates to support its reimbursement 

claim. 

(ii) In limited circumstances, the ATP 

Participant may be reimbursed for air 

travel up to the business class rate (i.e., 

a premium class rate other than the first 

class rate) upon prior written approval 

by the CCC. Such circumstances are: 

(A) Regularly scheduled flights 

between origin and destination points 

do not offer economy class (or 

equivalent) airfare and the ATP 

Participant receives written 

documentation from its travel agent to 

that effect at the time the tickets are 

purchased; 

(B) Business class air travel is 

necessary to accommodate an eligible 

traveler’s disability. Such disability 

must be substantiated in writing by a 

physician; and 

(C) If an eligible traveler is an 

employee, contractor, or member of an 

ATP participant organization, and the 

eligible traveler’s origin and/or 

destination are outside of the 

continental United States and the 

scheduled flight time, beginning with 

the scheduled departure time, ending 

with the scheduled arrival time, and 

including stopovers and changes of 

planes, exceeds 14 hours. In such case, 

per diem and other allowable expenses 

will also be reimbursable for the day of 

arrival. However, no expenses will be 

reimbursable for a rest period or for any 

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

holidays, personal leave, etc.) 

immediately following the date of 

arrival. 

(D) If an eligible traveler is the target 

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

foreign buyer, foreign importer, member 

of the foreign media) the ATP 

Participant may be reimbursed for air 

travel up to the business class rate when 

the eligible traveler’s origin and/or 


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destination are outside of the 

continental United States and the 

scheduled flight time, beginning with 

the scheduled departure time, ending 

with the scheduled arrival time, and 

including stopovers and changes of 

planes, exceeds five hours. In such 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. 

(iii) Alternatively, in lieu of 

reimbursing up to the business class rate 

in such circumstances noted in 

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

section, the CCC will reimburse 

economy class airfare plus per diem and 

other allowable travel expenses related 

to a rest period of up to 24 hours, either 

en route or upon arrival at the 

destination. For a trip with multiple 

destinations, each origin/destination 

combination will be considered 

separately when applying the 14-hour 

rule for eligibility of reimbursement of 

business class travel or rest period 

expenses. 

(iv) A stopover for purposes of this 

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

spends at an airport, other than the 

originating or destination airport, which 

is a normally scheduled part of a flight. 

A change of planes is the time a traveler 

spends at an airport, other than the 

originating or destination airport, to 

disembark from one flight and embark 

on another. 

(v) All travel under this paragraph 

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

traveled route. Under no circumstances 

should a traveler select flights in a 

manner that extends the scheduled 

flight time to beyond 14 hours in part 

to secure eligibility for reimbursement 

of business class travel. An eligible 

traveler that is the target of a market 

development activity is only eligible for 

a rest period when that traveler flies in 

economy class and meets the 14-hour 

test; 

(3) Automobile mileage at the local 

U.S. Embassy rate or rental cars while 

in travel status; 

(4) Other allowable expenditures 

while in travel status as authorized by 

the U.S. Federal Travel Regulations (41 

CFR parts 301 through 304) and 2 CFR 

part 200; 

(5) Accident liability insurance 

premiums for facilities used jointly with 

third-party participants for ATP 

activities or for ATP-funded travel of 

third-party participants; 

(6) Market research, including 

research to determine the types of 

products that are desired in a market; 

(7) Legal fees incurred in resolving 

trade issues with foreign countries; 

(8) The sample purchase price, and 

the cost of transporting samples 

domestically in the United States to the 

port of export and then to the first 

foreign port or first point of entry, for 

samples of U.S. agricultural 

commodities used to provide on-site 

technical assistance to the trade 

necessary to facilitate successful use of 

the relevant U.S. agricultural 

commodity by importers. The target of 

such activity must be the trade, and not 

consumers, but any product resulting 

from the technical training can be used 

to determine consumer preferences; 

(9) STRE incurred outside of the 

United States and STRE incurred within 

the United States in conjunction with an 

approved activity where the STRE has a 

programmatic purpose and are 

authorized with prior written approval 

from the CCC. ATP Participants are 

required to use the appropriate 

American Embassy representational 

funding guidelines for breakfasts, 

lunches, dinners and receptions 

incurred outside of the United States as 

the basis for their calculating eligible 

expenses. ATP Participants may exceed 

Embassy guidelines by 25 percent 

without prior approval. ATP 

Participants may only exceed 125 

percent of Embassy guidelines when 

they have received written authorization 

from the FAS Agricultural Counselor at 

the Embassy. The amount of 

unauthorized STRE expenses that 

exceed 125 percent of the guidelines 

will not be reimbursed. ATP 

Participants must pay the difference 

between the total cost of STRE events 

and the appropriate amount as 

determined by the guidelines and these 

regulations. For STRE incurred in the 

United States, the ATP Participant 

should provide, in its request for 

approval, the basis for determining its 

proposed expenses; 

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

support expenses, incurred specifically 

to administer the ATP, for the National 

Association of State Departments of 

Agriculture, the SRTGs, and the 

Intertribal Agriculture Council. The 

level of such funding will be established 

in the approval letter. 

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

support expenses, incurred specifically 

to administer the ATP, for any ATP 

Participants not identified in this 

paragraph (c)(11), will be considered, 

except for agricultural cooperatives. 

Reimbursement for such expenses shall 

not exceed six percent of the ATP 

Participant’s total ATP budget. The level 

of such funding will be established in 

the approval letter. 

(13) Non-travel expenditures 

associated with conducting 

international staff conferences held 

either in or outside the United States; 

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

this section, domestic travel 

expenditures, as allowed under the U.S. 

Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200, for international retail, trade and 

consumer exhibits and shows 

conducted in the United States upon 

prior written approval by CCC. 

Domestic travel expenses to such a 

show or exhibit are covered only if the 

exhibit or show is: A food or 

agricultural show with no less than 30 

percent of exhibitors selling food or 

agricultural products; and an 

international show that targets buyers, 

distributors and the like from more than 

one foreign country and no less than 15 

percent of its visitors are from countries 

other than the host country. CCC will 

compile a list of approved retail, trade 

and consumer exhibits and shows held 

inside the United States for which ATP 

reimbursement is available and such list 

will be announced to ATP Participants 

via an ATP notice issued on FAS’ 

website; 

(15) Domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

304) and 2 CFR part 200, for seminars 

and educational training conducted in 

the United States; 

(16) Domestic travel expenditures, as 

allowed under the U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

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

individuals, whether home office ATP 

Participant employees, ATP Participant 

board members, or state department of 

agriculture employees paid by the ATP 

Participant, or a combination thereof, 

when such individuals accompany 

foreign trade missions or technical 

teams while traveling in the United 

States where the following conditions 

are met: 

(i) Such trade missions or technical 

team visits are identified in the ATP 

Participant’s UES; 

(ii) Such trade missions or technical 

team visits have been approved by CCC; 

and 

(iii) The ATP-sponsored travelers 

submit a follow-up trip report to CCC 

that includes the following: 

(A) Purpose for the individuals’ 

participation; 

(B) Any pre-arranged business 

meetings; 

(C) Itinerary and/or agenda for the 

trip; and 


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(D) Feedback from sponsors and trade 

mission/technical team members on the 

success of the trip. 

(17) Approved demonstration 

projects; 

(18) Expenditures related to 

copyright, trademark, or patent 

registration, including attorney fees; 

(19) Rental or lease expenditures for 

storage space for program-related 

materials; 

(20) Business cards that target a 

foreign audience; 

(21)(i) Expenditures associated with 

developing, updating, and servicing 

websites on the internet that: 

(A) Contain a message related to 

exporting or international trade; 

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

FAS website or an FAS overseas office 

website; and 

(C) Have been specifically approved 

by the appropriate FAS division. 

Expenditures related to websites or 

portions of websites that are accessible 

only to an organization’s members are 

not reimbursable. 

(ii) Reimbursement claims for 

websites that include ‘‘members only’’ 

sections must be prorated to exclude the 

costs associated with those areas subject 

to restricted access; and 

(22) Expenditures not otherwise 

prohibited from reimbursement that are 

associated with activities held in the 

United States or abroad designed to 

improve market access by specifically 

addressing temporary, permanent, or 

impending non-tariff barriers to trade 

that prohibit or threaten U.S. exports of 

agricultural commodities. Examples of 

such expenditures include, but are not 

limited to: Initial pre-clearance 

programs, educational training, policy 

advocacy, public relations efforts, 

foreign country audits of U.S. facilities, 

export protocol and work plan support, 

seminars and workshops, study tours, 

field surveys, development of pest lists, 

pest and disease research, database 

development, and reasonable logistical 

and administrative support. 

(d) CCC will not reimburse any cost 

of: 

(1) Forward year financial obligations, 

such as severance pay, attributable to 

employment of foreign nationals; 

(2) Expenses, fines, settlements, or 

judgments relating to legal suits, 

challenges or disputes, except as 

otherwise allowed in 2 CFR part 200 

and these regulations; 

(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, except 

as specified in paragraph (c)(22) of this 

section; 

(5) Product samples to be distributed 

to consumers; 

(6) Slotting fees or similar sales 

expenditures; 

(7) The purchase of, construction of, 

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

constructed to remain permanently in 

the same location beyond one program 

period. However, the CCC may, at its 

discretion, reimburse the construction 

or purchase of permanent displays on a 

case-by-case basis, if the Participant 

sought and received prior written 

approval from the CCC of such 

construction or purchase; 

(8) Rental, lease or purchase of 

warehouse space, except for storage 

space for program-related material; 

(9) Coupon redemption or price 

discounts of the ATP promoted 

commodity; 

(10) Refundable deposits or advances; 

(11) Giveaways, awards, prizes, gifts 

and other similar promotional materials 

in excess of the limitation that the CCC 

will determine. Such determination will 

be announced in writing via an ATP 

notice issued on FAS’ website; 

(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 the 

CCC determines that such a review is 

needed in order to confirm past or to 

ensure future program agreement or 

regulatory compliance; 

(17) Any arrangement that has the 

effect of reducing the selling price of a 

U.S. agricultural commodity; 

(18) Goods, services and salaries of 

personnel provided by U.S. industry or 

foreign third party; 

(19) Membership fees in clubs and 

social organizations; 

(20) Indemnity and fidelity bonds, 

except as otherwise allowed in 2 CFR 

part 200; 

(21) Fees for participating in U.S. 

Government sponsored activities, other 

than trade fairs and exhibits; 

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

domestic audience; 

(23) Seasonal greeting cards; 

(24) Office parking fees; 

(25) Subscriptions to publications that 

are not of a technical, economic, or 

marketing nature or that are not relevant 

to the approved activities of the ATP 

Participant; 

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

expenses, including communication 

costs, except as noted in paragraphs 

(c)(11) and (12) of this section and 

except that usage costs for 

communications devices incurred while 

on reimbursable international or 

domestic travel for approved ATP brand 

or generic promotion activities are 

reimbursable as eligible travel 

expenditures as allowed under the U.S. 

Federal Travel Regulations (41 CFR 

parts 301 through 304) and 2 CFR part 

200; 

(27) Any expenditure on an activity 

that includes any derogatory reference 

or comparison to other U.S. agricultural 

commodities; 

(28) Payment of U.S. and foreign 

employees’ or contractors’ share of 

personal taxes; 

(29) Any expenditure made for an 

activity prior to the CCC’s approval of 

that activity; 

(30) Contributions to a contingency 

reserve or any similar provision made 

for events the occurrence of which 

cannot be foretold with certainty as to 

time, intensity, or with an assurance of 

their happening; and 

(31) Expenditures associated with an 

ATP Participant’s creation or review of 

their fraud prevention program, 

contracting procedures, or brand 

program operational procedures. 

(e) For a brand promotion activity, the 

CCC will reimburse no more than 50 

percent of the total eligible expenditures 

made on that activity by a brand 

participant. 

(f) The CCC will reimburse for 

expenditures made after the conclusion 

of an ATP Participant’s program period 

provided: 

(1) The activity was approved by the 

CCC prior to the end of the program 

period; 

(2) The activity was completed within 

30 calendar days following the end of 

the program period; and 

(3) All expenditures were made for 

the activity within 6 months following 

the end of the program period. 

(g) An ATP Participant shall not use 

ATP funds for any activity or any 

expenses incurred by the ATP 

Participant prior to the date of the 

program agreement or after the date the 

program agreement is suspended or 

terminated, except as otherwise 

permitted by the CCC. 

(h) Except as otherwise provided in 

this subpart, ATP-funded travel shall 

conform to U.S. Federal Travel 

Regulations (41 CFR parts 301 through 

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funded air travel shall conform to the 

requirements of the Fly America Act (49 

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

the ATP Participant shall notify the 

Attache ́/Counselor in the destination 

countries in writing in advance of any 

proposed travel. 

(i) The CCC may determine, at the 

CCC’s discretion, whether any cost not 

expressly listed in this section will be 

reimbursed. 

§ 1489.18 Reimbursement procedures. 

(a) Participants are required to use the 

CCC’s UES system to request 

reimbursement for eligible ATP 

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 ATP Participant’s 

U.S. office to the CCC. 

(c) CCC will not reimburse a claim for 

less than $10,000, except that the CCC 

will reimburse a final claim for an ATP 

Participant’s program period for a lesser 

amount. 

(d) The CCC will not reimburse claims 

submitted later than 6 months after the 

end of an ATP Participant’s program 

period. 

(e) If the CCC overpays a 

reimbursement claim, the ATP 

Participant shall repay the CCC within 

30 days of such overpayment the 

amount of the overpayment either by 

submitting a check payable to the CCC 

or by offsetting its next reimbursement 

claim. The ATP Participant shall make 

such payment in U.S. dollars, unless 

otherwise approved in advance by the 

CCC. 

(f) If an ATP Participant receives a 

reimbursement or offsets an advanced 

payment which is later disallowed, the 

ATP Participant shall repay the CCC 

within 30 days of such disallowance the 

amount disallowed either by submitting 

a check payable to the CCC or by 

offsetting its next reimbursement claim. 

The ATP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance by the 

CCC. 

(g) ATP funds may be expended by 

ATP Participants only on legitimate, 

approved activities as set forth in the 

program agreement and approval letter. 

If an ATP Participant discovers that 

ATP funds have not been properly 

spent, it shall notify the CCC and shall 

within 30 days of its discovery repay the 

CCC the amount owed either by 

submitting a check payable to the CCC 

or by offsetting its next reimbursement 

claim. The ATP Participant shall make 

such payment in U.S. dollars, unless 

otherwise approved in advance by the 

CCC. 

(h) The ATP Participant shall report 

any actions that may have a bearing on 

the propriety of any claims for 

reimbursement in writing to CCC. 

§ 1489.19 Advances. 

(a) Policy. In general, the CCC 

operates the ATP on a reimbursable 

basis. 

(b) Exception. An ATP Participant for 

generic promotion activities may 

request an advance of ATP funds from 

the CCC, provided the ATP Participant 

meets the criteria for advance payments 

in 2 CFR part 200. The CCC will not 

approve any request for an advance 

submitted later than 3 months after the 

end of an ATP Participant’s program 

period. At any given time, total 

payments advanced shall not exceed 40 

percent of an ATP Participant’s 

approved generic activity budget for the 

program period. The CCC will not 

advance funds to an ATP Participant for 

brand promotion activities. When 

approving a request for an advance, the 

CCC may require the ATP 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 ATP. 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 ATP; 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. An ATP Participant shall 

deposit and maintain in an insured bank 

account in the United States all funds 

advanced by the CCC. The account shall 

be interest-bearing, unless the 

exceptions in 2 CFR part 200 apply. 

Interest earned by the ATP Participant 

on funds advanced by the CCC is not 

program income. The ATP Participant 

shall remit any interest earned on the 

advanced funds to the appropriate 

entity as set forth in the applicable parts 

of this title. 

(d) Refunds due the CCC. An ATP 

Participant shall fully expend all 

advances on approved generic 

promotion activities within 90 calendar 

days after the date of disbursement by 

the CCC. By the end of the 90 calendar 

days, the ATP Participant must submit 

reimbursement claims to offset the 

advance and submit a check made 

payable to CCC for any unexpended 

balance. The ATP Participant shall 

make such payment in U.S. dollars, 

unless otherwise approved in advance 

by the CCC. 

§ 1489.20 Financial management. 

(a) An ATP Participant shall 

implement and maintain a financial 

management system that conforms to 

generally accepted accounting 

principles. An ATP Participant’s 

financial management system shall 

comply with the standards in 2 CFR part 

200. 

(b) An ATP Participant shall institute 

internal controls and provide written 

guidance to commercial entities 

participating in its activities to ensure 

their compliance with these regulations. 

(c) An ATP Participant shall retain all 

records concerning an ATP program 

transaction for a period of three years 

after completion of the program 

transaction and permit the CCC to have 

full and complete access, for such three 

year period, to such records. These 

records shall include all records 

pertaining to contractors. 

(d) An ATP Participant shall maintain 

its records of expenditures and 

contributions in a manner that allows it 

to provide information by activity plan, 

country, activity number, and cost 

category. Such records shall include: 

(1) Receipts for all STRE (actual 

vendor invoices or restaurant checks, 

rather than credit card receipts); 

(2) Original receipts for any other 

program-related expenditure in excess 

of a set amount CCC will determine and 

announce in writing to all ATP 

Participants via an ATP notice issued on 

the FAS website. The CCC may, from 

time to time, set a different minimum 

amount. In that case, the CCC will 

announce the new amount in writing to 

all ATP Participants via an ATP notice 

issued on the FAS website; 

(3) The exchange rate used to 

calculate the dollar equivalent of 

expenditures made in a foreign currency 

and the basis for such calculation; 

(4) Copies of reimbursement claims; 

(5) An itemized list of claims charged 

to each of the ATP 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 


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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. ATP Participants must 

retain and make available for 

compliance review documentation 

related to claimed contributions. 

(e) Upon request, an ATP Participant 

shall provide to the CCC originals of 

documents supporting reimbursement 

claims. 

§ 1489.21 Reports. 

(a) End-of-Year Contribution Report. 

Not later than 6 months after the end of 

its program period, an ATP 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 

period. 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), an ATP 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 

period, an ATP Participant shall submit 

a report on any research conducted 

pursuant to the approved ATP program. 

(d) Evaluation reports. Not later than 

6 months after the end of its program 

period, an ATP Participant shall submit 

a report on any evaluations conducted 

in accordance with the approved ATP 

program, including the outcome of 

action taken with ATP funding and the 

increased market access or exports that 

can be directly attributed to the ATP 

program. 

(e) Annual audits. Where the CCC is 

designated the cognizant agency for 

audit, the CCC may require the ATP 

Participant to submit to the CCC an 

annual audit in accordance with 2 CFR 

part 200. If the CCC requires an 

additional audit with respect to a 

particular agreement, the ATP 

Participant shall arrange for such audit 

and shall submit to the CCC, in the 

manner to be specified by the CCC, such 

audit of the agreement. 

(f) Additional reports. The CCC may 

require the submission of additional 

reports. 

(g) Approved letters. An ATP 

Participant’s program agreement and/or 

approval letter shall specify to whom 

the Participant shall submit the reports 

required in this section. 

(h) Program reviews. FAS through its 

authorized representatives, may review 

project accomplishments, management 

control systems, and administration of 

funding provided through the program 

to ensure adherence to requirements. 

During such reviews, FAS will review 

recipients’ files related to the grantfunded program and technical 

assistance may be required. 

§ 1489.22 Evaluation. 

(a)(1) The Government Performance 

and Results Act (GPRA) of 1993 (5 

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

3515, 9703–9704) requires performance 

measurement of Federal programs, 

including the ATP. Evaluation of the 

ATP’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 

ATP and of individual Participants’ 

programming is to increase sales that 

would not have occurred in the absence 

of ATP funding. An ATP 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 an 

ATP Participant’s program, contributing 

to program accountability, and 

providing evidence of program 

effectiveness that directly ties program 

funds to increased sales. 

(b) All ATP 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 the CCC no later than 

6 months following the end of the 

Participant’s program period. 

(c) ATP 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 ATP program. This 

evaluation shall be completed and 

submitted to CCC no later than 6 

months following the end of the 

Participant’s program period. 

(d) When appropriate or required by 

the CCC, an ATP Participant shall 

complete a program evaluation. A 

program evaluation is a review of the 

ATP Participant’s entire program, or an 

appropriate portion of the program as 

agreed to by the ATP Participant and 

CCC, to determine the effectiveness of 

the ATP Participant’s strategy in 

meeting specified goals. Actual scope 

and timing of the program evaluation 

shall be determined by the ATP 

Participant and CCC and specified in 

the approval letter. An ATP 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 (for 

example, 2 CFR part 200), 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 the 

CCC, an ATP Participant shall complete 

and submit program success stories. The 

CCC will announce to all ATP 

Participants in writing via an ATP 

notice issued on the FAS website the 

detailed requirements for completing 

and submitting program success stories. 

§ 1489.23 Compliance reviews and 

notices. 

(a) USDA staff may conduct 

compliance reviews of ATP 

Participants’ activities under the ATP 

program. ATP Participants shall 

cooperate fully with relevant USDA staff 

conducting compliance reviews and 

shall comply with all requests from 


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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 ATP 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 ATP 

Participant shall repay the CCC the 

amount owed either by submitting a 

check payable to the CCC or by 

offsetting its next reimbursement claim. 

The ATP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance by the 

CCC. If, however, an ATP Participant 

notifies the CCC within 30 days of the 

date of the compliance report that the 

Participant intends to file an appeal 

pursuant to paragraph (e) of this section, 

the amount owed to the CCC by the ATP 

Participant is not due until the appeal 

procedures are concluded and the CCC 

has made a final determination as to the 

amount owed. In the absence of any 

finding of funds due to the CCC or other 

non-compliance, the CCC will issue a 

letter to the ATP Participant. If, as a 

result of a compliance review, the CCC 

determines that further review is needed 

in order to ensure compliance with the 

requirements of ATP, the CCC may 

require the Participant to contract for an 

independent audit. 

(c) In addition, the CCC may notify an 

ATP Participant in writing at any time 

if CCC determines that CCC may be 

entitled to recover funds from the 

Participant. The CCC will explain the 

basis for any recovery of funds from the 

Participant in the written notice. The 

ATP Participant shall, within 30 days of 

the date of the notice, repay the CCC the 

amount owed either by submitting a 

check payable to the CCC or by 

offsetting its next reimbursement claim. 

The ATP Participant shall make such 

payment in U.S. dollars, unless 

otherwise approved in advance by the 

CCC. If, however, an ATP Participant 

notifies the CCC within 30 days of the 

date of the written notice that the 

Participant intends to file an appeal 

pursuant to paragraph (e) of this section, 

the amount owed to the CCC by the ATP 

Participant is not due until the appeal 

procedures are concluded and the CCC 

has made a final determination as to the 

amount owed. 

(d) The fact that a compliance review 

has been conducted by USDA staff does 

not signify that an ATP Participant is in 

compliance with its program agreement, 

approval letter and/or applicable laws 

and regulations. 

(e) Appeals: 

(1) An ATP Participant may, within 

60 days of the date of the compliance 

report or written notice from the CCC, 

submit a written response to the CCC 

appealing the report or notice. CCC, at 

its discretion, may extend the period for 

response. 

(2) After review of the Participant’s 

response, the CCC shall determine 

whether the Participant owes any funds 

to the CCC and will inform the 

Participant in writing of the basis for the 

determination. The CCC will initiate 

action to collect such amount by 

providing the Participant a written 

demand for payment of the debt 

pursuant to Debt Settlement Policies 

and Procedures, 7 CFR part 1403. 

(3) Within 30 days of the date of the 

determination, the Participant may 

request in writing that the CCC 

reconsider the determination and shall 

submit in writing the basis for such 

reconsideration. The Participant may 

also request a hearing. 

(4) If the Participant requests a 

hearing, the CCC will set a date and 

time for the hearing. The hearing will be 

an informal proceeding. A transcript 

will not ordinarily be prepared unless 

the Participant bears the cost of a 

transcript; however, the CCC may in its 

discretion have a transcript prepared at 

the CCC’s expense. 

(5) The CCC will base its final 

determination upon information 

contained in the administrative record. 

The Participant must exhaust all 

administrative remedies contained in 

this section before pursuing judicial 

review of a determination by the CCC. 

§ 1489.24 Failure to make required 

contribution. 

An ATP Participant’s required 

contribution will be specified in the 

approval letter. If the ATP Participant’s 

required contribution is specified as a 

dollar amount and the ATP Participant 

does not make the required 

contribution, the ATP Participant shall 

pay to the CCC in dollars the difference 

between the amount actually 

contributed and the amount specified in 

the approval letter. If the ATP 

Participant’s required contribution is 

specified as a percentage of the total 

amount reimbursed by the CCC, the 

ATP Participant may either return to the 

CCC the amount of funds reimbursed by 

the CCC to increase its actual 

contribution percentage to the required 

level or pay to the CCC in dollars the 

difference between the amount actually 

contributed and the amount of funds 

necessary to increase its actual 

contribution percentage to the required 

level. An ATP Participant shall remit 

such payment within six months after 

the end of its program period. The ATP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by the CCC. 

§ 1489.25 Submissions. 

For all permissible methods of 

delivery, submissions required by this 

subpart shall be deemed submitted as of 

the date received by the CCC. 

§ 1489.26 Disclosure of program 

information. 

(a) Documents submitted to CCC by 

ATP 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 an 

ATP Participant pursuant to an ATP 

program agreement and/or approval 

letter shall be subject to the provisions 

relating to intangible property in 2 CFR 

part 200. 

§ 1489.27 Ethical conduct. 

(a) An ATP 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. An ATP Participant shall 

conduct its business in the United 

States in accordance with applicable 

Federal, State and local laws and 

regulations. All ATP Participants must 

comply with the regulations in 2 CFR 

part 200 and this part. 

(b) Except for a U.S. agricultural 

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

neither an ATP Participant nor its 

affiliates shall make export sales of U.S. 

agricultural commodities and products 

covered under the terms of the 

applicable ATP agreement. Nor shall 

such entities charge a fee for facilitating 

an export sale. An ATP Participant may, 

however, collect check-off funds and 

membership fees that are required for 

membership in the ATP 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) An ATP Participant shall not limit 

participation in its ATP activities to 

members of its organization. 


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Participants shall ensure that their ATPfunded programs and activities are open 

to all otherwise qualified individuals 

and entities on an equal basis and 

without regard to any non-merit factors. 

The ATP 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 ATP 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 any U.S. agricultural 

cooperative when implementing its own 

brand program. 

(d) An ATP Participant shall select 

U.S. agricultural industry 

representatives to participate in generic 

ATP activities such as trade teams, sales 

teams, and trade fairs based on criteria 

that ensure participation on an equitable 

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

industry. If requested by the CCC, an 

ATP Participant shall submit such 

selection criteria to the CCC for 

approval. 

(e) All ATP 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 ATP agreement and the 

recovery of CCC funds related to such 

promotions from the Participant. 

(f) The ATP Participant must report 

any actions or circumstances that may 

have a bearing on the propriety of its 

ATP program to the appropriate 

Attache ́/Counselor, and its U.S. office 

shall report such actions or 

circumstances in writing to the CCC. 

§ 1489.28 Contracting procedures. 

(a) Neither the CCC nor any other 

agency of the U. S. Government nor any 

official or employee of the CCC, FAS, 

USDA, or the U.S. Government has any 

obligation or responsibility with respect 

to ATP Participant contracts with third 

parties. 

(b) An ATP Participant shall comply 

with the procurement standards set 

forth below and in the applicable parts 

of this title when procuring goods and 

services and when engaging in 

construction to implement program 

agreements (for example, 2 CFR part 

200). 

(c) Each ATP Participant shall 

establish contracting procedures, for 

contracts that are funded, in whole or in 

part, with ATP funds, that are open, fair, 

and competitive. 

(d) Each ATP Participant shall submit 

to the CCC, for CCC approval, written 

contracting guidelines for contracts that 

are funded, in whole or in part, with 

ATP funds. The CCC will notify all new 

and existing ATP Participants in writing 

in each Participant’s approval letter and 

through the FAS website as to 

applicable submission dates for and 

dates for approvals of contracting 

guidelines. The CCC’s approval of such 

contracting guidelines will remain in 

place until the CCC retracts its approval 

in writing, or until new guidelines are 

approved that supersede them. Once 

approved by the CCC, these contracting 

guidelines shall govern all of a 

Participant’s ATP-funded contracting 

involving contracts with a minimum 

annual value that CCC will determine 

and announce in writing to all ATP 

Participants via an ATP notice issued on 

the FAS website. The CCC may, from 

time to time, set a different minimum 

value. In that case, the CCC will 

announce the new amount in writing to 

all ATP Participants via an ATP notice 

issued on the FAS website. The 

guidelines shall indicate the method for 

evaluating proposals received for all 

contract competitions, the method for 

monitoring and evaluating performance 

under contracts, and the method for 

initiating corrective action for 

unsatisfactory performance under 

contracts. The ATP Participant may 

modify and resubmit these guidelines 

for re-approval at any time. In addition 

to the requirements in 2 CFR part 200, 

these guidelines shall include, at a 

minimum, the following: 

(1) Procedures for developing and 

publicizing requests for proposals, 

invitations for bids, and similar 

documents that solicit third party offers 

to provide goods or services. 

Solicitations for professional and 

technical services shall be based on 

clear and accurate descriptions of and 

requirements related to the services to 

be procured. Such procedures must 

include a conflict-of-interest provision 

that states that no employee, officer, 

board member, or agent thereof of the 

ATP 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. 

ATP Participants’ written contracting 

guidelines may detail special situations 

where the prohibitions in this 

subparagraph do not apply, such as in 

situations involving highly specialized 

technical services or situations where 

the services are not commonly offered 

in a specific market; 

(4) Requirements to perform and 

document in the procurement files some 

form of price or cost analysis, such as 

a comparison of price quotations to 

market prices or other price indicia, to 

determine the reasonableness of the 

offered prices in connection with every 

procurement action that is governed by 

the contracting guidelines; 

(5) Requirements to conduct an 

appropriate form of competition every 

three years on all multi-year contracts 

that are governed by the contracting 

guidelines. However, contracts for incountry representation are not required 

to be re-competed after the initial 

reward. Instead, the performance of incountry representation must be 

evaluated and documented by the ATP 

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 


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Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Rules and Regulations 44195 

provided to them by the ATP 

Participant. 

(e) An ATP Participant may undertake 

ATP promotional activities directly or 

through a domestic or foreign third 

party. However, the ATP Participant 

shall remain responsible and 

accountable to the CCC for all ATP 

promotional activities and related 

expenditures undertaken by such third 

party and shall be responsible for 

reimbursing CCC for any funds that CCC 

determines should be refunded to the 

CCC in relation to such third party’s 

promotional activities and expenditures. 

§ 1489.29 Property standards. 

The ATP Participant shall insure all 

ATP-funded property and equipment 

acquired in furtherance of program 

activities and safeguard such against 

theft, damage and unauthorized use. 

The Participant shall promptly report 

any loss, theft, or damage of property to 

the insurance company. 

§ 1489.30 Anti-fraud requirements. 

(a) All ATP Participants. (1) All ATP 

Participants shall submit to the CCC for 

approval a detailed fraud prevention 

program. The CCC will notify all new 

and existing ATP Participants in writing 

in each Participant’s approval letter and 

through the FAS website as to 

applicable submission dates for and 

dates for approvals of fraud prevention 

programs. ATP 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 

ATP Participant shall not conduct or 

permit any ATP promotion activities to 

occur unless and until the CCC has 

communicated in writing approval of 

the ATP Participant’s fraud prevention 

program. 

(2) The ATP 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 ATP 

program agreement and/or approval 

letter. The ATP Participant shall 

cooperate fully in any USDA 

investigation of such allegation or 

occurrence of misrepresentation or 

fraud and shall comply with any 

directives given by the CCC or USDA to 

the ATP Participant for the prompt 

investigation of such allegation or 

occurrence. 

(b) ATP Participants with brand 

programs. (1) The ATP Participant may 

charge a fee to brand participants to 

cover the cost of the fraud prevention 

program. 

(2) The ATP Participant shall repay to 

the CCC funds paid to a brand 

participant through the ATP Participant 

on claims that the ATP Participant or 

the CCC subsequently determines are 

unauthorized or otherwise nonreimbursable expenses within 30 days 

of the ATP Participant’s determination 

or CCC’s disallowance. The ATP 

Participant shall repay CCC by 

submitting a check to CCC or by 

offsetting the ATP Participant’s next 

reimbursement claim. The ATP 

Participant shall make such payment in 

U.S. dollars, unless otherwise approved 

in advance by CCC. An ATP Participant 

operating a brand program in strict 

accordance with an approved fraud 

prevention program, however, will not 

be liable to reimburse CCC for ATP 

funds paid on such claims if the claims 

were based on misrepresentations or 

fraud of the brand participant, its 

employees or agents, unless the CCC 

determines that the ATP Participant was 

grossly negligent in the operation of the 

brand program regarding such claims. 

The CCC shall communicate any such 

determination to the ATP Participant in 

writing. 

§ 1489.31 Program income. 

Any revenue or refunds generated 

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

proceeds of sales, refunds of value 

added taxes (VAT), the expenditures for 

which have been wholly or partially 

reimbursed with ATP funds, shall be 

used by the ATP Participant in 

furtherance of its approved ATP 

activities in the program period during 

which the ATP funds are available for 

obligation by the ATP Participant. The 

use of such revenue or refunds shall be 

governed by 7 CFR part 1489. Interest 

earned on funds advanced by the CCC 

is not program income. 

§ 1489.32 Amendment. 

A program agreement may be 

amended in writing with the consent of 

the CCC and the ATP Participant. 

§ 1489.33 Noncompliance with an 

agreement. 

If an ATP Participant fails to comply 

with any term in its program agreement 

or approval letter, the CCC may take one 

or more of the enforcement actions in 2 

CFR part 200 and, if, appropriate, 

initiate a claim against the ATP 

Participant, following the procedures set 

forth in this subpart. The CCC may also 

initiate a claim against an ATP 

Participant if program income or CCCprovided funds are lost due to an action 

or omission of the ATP Participant. 

§ 1489.34 Suspension, termination, and 

closeout of agreements. 

A program agreement may be 

suspended or terminated in accordance 

with the suspension and termination 

procedures in 2 CFR part 200. If an 

agreement is terminated, the applicable 

regulations in 2 CFR part 200 will apply 

to the closeout of the agreement. 

§ 1489.35 Paperwork reduction 

requirements. 

The paperwork and record keeping 

requirements imposed by this subpart 

have been submitted for review by OMB 

under the Paperwork Reduction Act of 

1980. OMB has not yet assigned a 

control number for this information 

collection. 

Dated: August 27, 2018. 

Robert Stephenson, 

Executive Vice President, Commodity Credit 

Corporation. 

Dated: August 27, 2018. 

Kenneth Isley, 

Administrator, Foreign Agricultural Service. 

[FR Doc. 2018–18870 Filed 8–28–18; 8:45 am] 

BILLING CODE 3410–10–P 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 217 and 225 

[Regulations Q and Y; Docket No. R–1619] 

RIN 7100–AF 13 

Small Bank Holding Company and 

Savings and Loan Holding Company 

Policy Statement and Related 

Regulations; Changes to Reporting 

Requirements 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Interim final rule with request 

for comment; changes to reporting 

requirements. 

SUMMARY: The Board invites comment 

on an interim final rule that raises the 

asset size threshold for determining 

applicability of the Board’s Small Bank 

Holding Company and Savings and 

Loan Holding Company Policy 

Statement (Regulation Y, appendix C) 

(Policy Statement) to $3 billion from $1 

billion of total consolidated assets. The 

interim final rule also makes related and 

conforming revisions to the Board’s 

regulatory capital rule (Regulation Q) 

and requirements for bank holding 

companies (Regulation Y). In 


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