United States Department of Agriculture

Agricultural Marketing Service

Federal Grain Inspection Service

Directive 9070.3 June 3, 2013

Distribution: FGIS, OSP, Industry Originating Office: QACD-IEB

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CONFLICT OF INTEREST

Contents

CONFLICT OF INTEREST �������������������������������������������������������������������������������������������������1

1. PURPOSE����������������������������������������������������������������������������������������������������������������������������

2. REPLACEMENT HIGHLIGHTS��������������������������������������������������������������������������������������������

3. AUTHORITY�������������������������������������������������������������������������������������������������������������������������

4. POLICY ��������������������������������������������������������������������������������������������������������������������������������

5. RESPONSIBILITY����������������������������������������������������������������������������������������������������������������

6. FURTHER INFORMATION ��������������������������������������������������������������������������������������������������
FGIS Directive 9070.3 June 3, 2013

Page 2

1. PURPOSE

This directive establishes procedures for addressing conflict-of-interest situations

involving agency personnel who provide services under the authority of the United 

States Grain standards Act (USGSA) and the Agricultural Marketing Act (AMA). Agenc

personnel include; (1) licensed official agency employees; (2) nonlicensed official 

agency personnel (i.e. directors, trustees, clerks, political appointees, stockholders

etc.); and (3) licensed personnel who provide services under contract for official 

agencies. In addition, this directive provides guidance for handling conflicts involving 

licensed personnel who provide services under contract with FGIS

NOTE: The Animal and Plant Health Inspection Service is responsible for 

addressing all conflict-of-interest situations involving FGIS employees.

2. REPLACEMENT HIGHLIGHTS

This directive supersedes FGIS Program Directive 9070.3, dated 10/05/00. This 

directive is updated to reflect FGIS organizational changes and minor procedural 

changes

3. AUTHORITY

The USGSA (7 U.S.C. 87) and sections 800.187, 195, 196, 198 and 199 of the 

regulations thereunder prohibit all licensed and authorized personnel from having 

conflicts of interest.

Sections 868.30 and 60 of the regulations under the AMA prohibit licensed and 

authorized personnel from having conflicts of interest.

4. POLICY

The Federal Grain Inspection Service (FGIS) must maintain the integrity of the 

national inspection and weighing system by ensuring that no conflicts of interest exist. 

Conflicts of interest generally involve financial relationships with entities engaged in the 

commercial transportation, storage, merchandizing, processing or handling of grain, 

commodities or related products. Such conflicts can be direct or indirect in nature. While 

The USGSA and AMA program authority differs, FGIS’s policy is to use the same criteria 

for determining whether a conflict exists, regardless of the statute. It is FGIS’s policy 

to use the same guidelines to decide the appropriateness of granting an exception for 

conflicts under either law (USGSA or AMA). All licensed, nonlicensed and authorized 

personnel are responsible for reporting and eliminating conflict-of-interest situations 

or the appearance thereof. In addition, all licensed and nonlicensed individuals must 

complete the conflict-of-interest information that appears on the following forms (FGIS944 or FGIS-100), as applicable. All licensed personnel must also submit a conflict of 

interest declaration through the FGIS Official Service Provider Licensing (FOL) program 

when initially applying for a license, during a triennial renewal and anytime there is a 

new change in conflict of interest or circumstances status (see the FOL HELP page for 

further information).
FGIS Directive 9070.3 June 3, 2013

Page 3

In instances where circumstances suggest that a conflict exists, the individual may be

eligible for an exception. In such cases, the affected individual(s) must provide written

justification to ensure that granting an exception will not jeopardize the integrity of the

official system. However, if facts relating to a conflict suggest a compromise of the

official system, the Quality Assurance and Compliance Division (QACD), Investigation

and Enforcement Branch (IEB) will not grant an exception and the affected individual(s)

must eliminate the conflict immediately.

5. RESPONSIBILITY

Agency manager(s) or his/her designee must:

a. Address each conflict or potential conflict situation(s) without delay;

b. Ensure that all licensed and nonlicensed personnel understand the

conflict-of-interest policies;

c. Obtain and forward to the field office written documentation that thoroughly 

explains the conflict situation that is indicated on forms FGIS-944 or FGIS-100;

d. Record conflict of interest status in the FOL program for all initial license 

applications; for all triennial renewals and anytime there is a change(s) or new 

circumstances(s) in the conflict-of-interest status;

e. Report to the field office any changes(s) or new circumstances(s) that create a 

conflict situation and provide written documentation that thoroughly explains the 

matter and;

f. Provide the field office written recommendation(s) that supports granting an 

exception for a conflict or explain why such a request is opposed. If an exception is 

granted, monitor the respective individual for adherence to all exception guidelines.

Field office manager(s) or his/her designee must:

a. Address each conflict or potential conflict situation(s) without delay;

b. Ensure that all agency managers, field office employees and licensees performing

services under contract with FGIS understand the conflict-of-interest policies;

c. View all license applications in the FOL program for a conflict-of-interest and do

not approve an application if a conflict exists;

d. Obtain from agency personnel or field office contractor(s) written documentation

that thoroughly explains the conflict situation;

e. Evaluate all pertinent information and determine whether a conflict or the

appearance thereof exists;
FGIS Directive 9070.3 June 3, 2013

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f. Send all documentation to the QACD-IEB which pertains to a conflict-of-interest

involving agency personnel and field office contractors;

g. Provide the QACD-IEB written recommendation(s) that supports granting an

exception for a conflict, or explains why you oppose such request;

h. Approve the license application after verifying in the FOL program that an

exception has been granted and the conflict exception guidelines are listed.

i. Monitor agency personnel and field office contractors for adherence to all

exception guidelines, if granted, during routine supervisory visits;

j. Remind agency managers and field office employees/contractors about the

standards of conduct policies that guard against the appearance of a loss of

impartiality and;

k. Advise agency managers and field office employees/contractors against engaging

in activities that could adversely affect the public’s confidence in the official

system.

QACD, IEB will:

a. Advise field office managers or agency managers regarding the presence or

absence of a conflict;

b. Immediately evaluate each conflict or potential conflict situation(s);

c. Provide exceptions for certain conflicts of interest or deny such requests;

d. Enter the results of the conflict evaluation into the DDR program. If an exception

has been granted, enter all conditions. Inform the field office managers and the

FOL administrator when the results of the evaluation are entered.

e. Provide written responses to field office or agency manager(s) and to the FOL

program manager regarding the granting of an exception for conflict situations

(including conditions) or explain why the request was denied; and

f. Maintain a conflict-of –interest database.
FGIS Directive 9070.3 June 3, 2013

Page 5

6. FURTHER INFORMATION

Direct question(s) concerning conflict-of-interest policies to the QACD-IEB.

Telephone number: (202) 720-0228

Fax: (202) 720-7786

In addition forward a copy of the conflict-of-interest report(s) to:

USGA-AMS-FGIS

QACD-IEB

Room 2409S, Stop 3604

1400 Independence Ave., S.W.

Washington D.C. 20250-3604