This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

3564

Vol. 60, No. 11

Wednesday, January 18, 1995

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1494

Export Bonus Programs

AGENCY: Commodity Credit Corporation

(CCC), USDA.

ACTION: Proposed rule.

SUMMARY: The Commodity Credit

Corporation is proposing to amend its

regulations to: (1) Delete the export

experience requirement for qualification

to participate in the Export

Enhancement Program (EEP) and the

Dairy Export Incentive Program (DEIP)

and (2) establish the time at which new

program participants would be eligible

to receive bonus payments. These

amendments are intended to provide the

opportunity for a greater number of U.S.

exporters to participate in the EEP and

the DEIP. The proposed rule would also

amend several provisions of the

regulations to make them clearer, easier

to read, and more consistent with the

regulations that apply to some of the

other CCC export programs.

DATES: Comments must be submitted on

or before March 20, 1995.

ADDRESSES: All comments concerning

these proposed regulations should be

addressed to L.T. McElvain, Director,

CCC Operations Division, Foreign

Agricultural Service, U.S. Department of

Agriculture, AG Box 1035, Washington,

DC 20250–1035; FAX (202) 720–2949.

All comments received will be available

for public inspection at the above

address during regular business hours.

FOR FURTHER INFORMATION CONTACT: L.T.

McElvain, Director, CCC Operations

Division, at the address stated above.

Telephone (202) 720–6211. The U.S.

Department of Agriculture (USDA)

prohibits discrimination in its programs

on the basis of race, color, national

origin, sex, religion, age, disability,

political beliefs and marital or familial

status. Persons with disabilities who

require alternative means for

communication of program information

(braille, large print, audiotape, etc.)

should contact the USDA Office of

Communications at (202) 720–5881

(voice) or (202) 720–7808 (TDD).

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule is issued in

conformance with Executive Order

12866. It has been determined to be

neither significant nor economically

significant for the purposes of E.O.

12866 and, therefore, has not been

reviewed by the Office of Management

and Budget (OMB).

Regulatory Flexibility Act

It has been determined that the

Regulatory Flexibility Act is not

applicable to this proposed rule since

CCC is not required by 5 U.S.C. 553 or

any other provision of law to publish a

notice of rulemaking with respect to the

subject matter of this rule.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which requires intergovernmental

consultation with State and local

officials. See notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115 (June 24, 1983).

Environmental Evaluation

It has been determined by an

environmental evaluation that this

action will not have a significant impact

on the quality of the human

environment. Therefore, neither an

Environmental Assessment nor an

Environmental Impact Statement is

needed.

Paperwork Reduction Act

The amendment to 7 CFR part 1494

set forth in this proposed rule does not

contain information collections that

require clearance by the OMB under the

provisions of 44 U.S.C. 35.

Executive Order 12778

This proposed rule has been reviewed

under Executive Order 12778, Civil

Justice Reform. The proposed rule

would have preemptive effect with

respect to any state or local laws,

regulations, or policies which conflict

with such provisions or which

otherwise impede their full

implementation. The rule would not

have retroactive effect. The regulations

currently require that certain

administrative remedies be exhausted

before suit may be filed, and the

proposed rule does not change this

requirement.

The Department of Agriculture is

committed to carrying out its statutory

and regulatory mandates in a manner

that best serves the public interest.

Therefore, where legal discretion

permits, the Department actively seeks

to promulgate regulations that promote

economic growth, create jobs, are

minimally burdensome, and are easy for

the public to understand, use or comply

with. In short, the Department is

committed to issuing regulations that

maximize net benefits to society and

minimize costs imposed by those

regulations.

Request for Public Comment

Comments are requested with respect

to this proposed rule and such

comments shall be considered in

developing the final rule.

Background

The current EEP regulations require

an exporter that seeks to participate in

the program to qualify in accordance

with the procedures set forth in 7 CFR

1494.301. These qualification

procedures also apply to the DEIP

pursuant to 7 CFR 1494.1200. One

provision, the current § 1494.301(a)(1),

requires a person seeking to qualify to

submit evidence of its experience,

within the preceding three calendar

years, in selling for export a particular

eligible commodity or an agricultural

commodity which CCC determines to be

similar to the eligible commodity.

Under the current regulations, an

exporter must qualify separately for

each eligible commodity that it intends

to export.

These requirements have limited

exporter participation in the EEP and

the DEIP. As a result, CCC is proposing

to delete the current § 1494.301(a)(1)

and dispense with the prior export

experience requirement. If the proposed

amendment is adopted, an exporter

would simply qualify one time to be

eligible to participate in a program and

could thereafter export any eligible

commodity under that program.

Accordingly, the proposed rule revises

the definition of ‘‘eligible exporter’’ in

§ 1494.201(q) and deletes the current

§ 1494.301(b), which sets forth the

procedure to qualify for additional

eligible commodities.
Federal Register / Vol. 60, No. 11 / Wednesday, January 18, 1995 / Proposed Rules 3565

An exporter that is currently qualified

to export a specific eligible

commodity(ies) under one of these

programs would be qualified to export

any eligible commodity under such

program. However, an exporter that

sought to participate in both the EEP

and the DEIP would have to qualify

separately for each program.

The proposed rule also provides, in

the revised § 1494.301(g), that a

qualified exporter (i.e., an ‘‘eligible

exporter’’) that has not yet demonstrated

its ability to participate successfully in

the EEP would become eligible to

receive a bonus payment(s) only after

the eligible commodity specified in an

EEP Agreement entered into the eligible

country. Such an exporter would have

to furnish performance security under

‘‘Option B’’ of the applicable Invitation

and follow the procedure specified in

§ 1494.701(d) to request the payment of

the bonus.

A qualified exporter could

demonstrate its ability to participate

successfully in the EEP by entering or

causing to be entered into the eligible

country at least 95% of the quantity of

the eligible commodity specified in any

one EEP Agreement. CCC would

consider that an exporter had proven its

ability to participate successfully in the

EEP as of the date on which CCC paid

to the exporter a bonus for entry of a

quantity that brought the total entered

quantity for any one EEP Agreement to

at least 95%. For all EEP Agreements

that such exporter entered into with

CCC subsequent to that date, the

exporter could furnish performance

security under ‘‘Option A’’ of the

applicable Invitation and be eligible to

receive bonus payments upon the

submission of export documents, in

accordance with § 1494.701(c).

CCC has not permitted exporters to

furnish performance security and seek

bonus payments under ‘‘Option B’’ in

recent EEP and DEIP Invitations. If this

proposed rule is adopted, then CCC

would again permit exporters to select

‘‘Option B.’’ CCC would set the

performance security rates for both

‘‘Option A’’ and ‘‘Option B’’ at the same

level. (Currently this rate is 10% of the

sales price, but the rate applicable to

offers made in response to an Invitation

will be specified in such Invitation.)

Therefore, the only difference between

the two options would be in the timing

of the bonus payment, i.e., after export

for ‘‘Option A’’ or after entry for

‘‘Option B.’’

The revised § 1494.301(g) would also

apply to the DEIP, pursuant to 7 CFR

§ 1494.1200. However, the EEP and the

DEIP would continue to be administered

separately and the entry of the eligible

commodity into a country under one

program would not satisfy the entry

requirement to demonstrate successful

performance under the other program.

This proposed amendment would

permit a new company without specific

export experience to demonstrate its

ability to participate successfully

without foregoing the benefit of the

export bonus. At the same time, by

paying the bonus to new program

participants only after the arrival of the

eligible commodity, CCC would protect

its interests.

CCC is also proposing to make several

other minor changes that would apply

to both the EEP and the DEIP. First, the

proposed rule would add, in the revised

§ 1494.301(a)(6), a requirement that

exporters interested in qualifying for

program participation certify that

neither the exporter nor any of its

principals has been debarred,

suspended, or proposed for debarment

from contracting with or participating in

programs administered by any U.S.

Government agency. This would make

the EEP and DEIP regulations consistent

with the regulations governing CCC’s

export credit guarantee programs.

Second, CCC is proposing to delete

the second sentence in the paragraph

that is currently designated

§ 1474.301(e) but that has been

redesignated as § 1494.301(d) in the

proposed rule. This sentence states that

persons with a history of unsatisfactory

participation in U.S. Government

programs or performance of contracts or

agreements with the U.S. Government

during the past three years will be

ineligible to participate in the EEP,

unless CCC determines that permitting

the interested person to participate

would be in the best interests of the

program. This sentence is unnecessary,

and potentially confusing, because CCC

already has the authority and

procedures to suspend or debar a person

from program participation for these

reasons pursuant to its suspension and

debarment regulations (7 CFR part

1407).

Third, CCC is proposing to delete the

paragraph designated § 1494.301(f)(3) in

the current regulations, which provides

that a person is ineligible to participate

in the EEP if such person employs any

individuals debarred or suspended from

contracting with or participating in

programs administered by any agency of

the U.S. Government. This language is

overly broad and CCC would be

adequately protected by § 1494.301(a)(6)

and (e) as revised in the proposed rule.

Fourth, CCC is proposing to rewrite

the paragraph that is currently

designated § 1474.301(g) but that has

been redesignated as § 1494.301(f) in the

proposed rule. The first sentence was

rewritten in the proposed rule to inform

qualified exporters in a more direct

fashion that they have a duty to update

the information they have provided to

CCC pursuant to § 1494.301(a) to ensure

that it is current and accurate. The

second sentence was deleted in the

proposed rule because it is unnecessary.

If CCC receives information indicating

that a qualified exporter should no

longer be permitted to participate in its

programs, it will take action to suspend

or debar such exporter pursuant to

CCC’s suspension and debarment

regulations.

The proposed rule contains other

minor, non-substantive changes that are

intended to make the rule clearer, easier

to read, and more consistent with the

regulations that apply to some of the

other CCC export programs.

List of Subjects in 7 CFR Part 1494

Administrative practice and

procedure, Agricultural commodities,

Exports, Government contracts,

Reporting and recordkeeping

requirements.

Accordingly, it is proposed that 7 CFR

part 1494 be amended as follows:

PART 1494—EXPORT BONUS

PROGRAMS

Subpart B—Export Enhancement

Program Operations

1. The authority citation for 7 CFR

part 1494, subpart B, continues to read

as follows:

Authority: 7 U.S.C. 5602, 5651, 5661, 5662,

5676; 15 U.S.C. 714c.

2. Paragraph (q) of Section 1494.201 is

revised to read as follows:

§ 1494.201 Definitions of terms.

* * * * *

(q) Eligible exporter—A person that

has been notified by CCC that such

person is qualified to submit offers in

response to Invitations.

* * * * *

3. Section 1494.301 is amended by

revising the introductory text and the

paragraph (a) introductory text; by

removing paragraph (a)(1) and

redesignating paragraphs (a)(2) through

(a)(6) as paragraphs (a)(1) through (a)(5),

respectively; by adding a new paragraph

(a)(6); by removing paragraph (b) and

redesignating paragraphs (c) through (g)

as paragraphs (b) through (f),

respectively; by revising newly

designated paragraphs (b), (d), (e) and

(f); and by adding a new paragraph (g)

to read as follows:
3566 Federal Register / Vol. 60, No. 11 / Wednesday, January 18, 1995 / Proposed Rules

§ 1494.301 Information required for

program participation.

Before CCC will consider an offer

from an interested person, such person

must qualify for participation in the

program. Based upon information

submitted by the interested person and

available from public sources, CCC will

determine whether the interested person

is eligible for participation in the

program.

(a) Submission of documentation. An

interested person that wishes to qualify

as an eligible exporter must furnish the

following information or documentation

to CCC at the address referenced in the

Notice to Exporters—EEP Contacts:

* * * * *

(6) The following certification: ‘‘I

certify, to the best of my knowledge and

belief, that neither [name of interested

person] nor any of its principals has

been debarred, suspended, or proposed

for debarment from contracting with or

participating in programs administered

by any U.S. Government agency.

[‘‘Principals,’’ for the purpose of this

certification, means officers; directors;

owners of five percent or more of stock;

partners; and persons having primary

management or supervisory

responsibility within a business entity

(e.g., general manager, plant manager,

head of a subsidiary division or

business segment, and similar

positions).] I further agree that, should

any such debarment, suspension, or

notice of proposed debarment occur in

the future, [name of interested person]

will immediately notify CCC.’’

(b) Necessity to qualify. An interested

person may not submit an offer, and

CCC will not consider any such offer,

until CCC has notified the interested

person that such person has qualified as

an eligible exporter.

* * * * *

(d) Previous performance. CCC may

request additional information with

respect to the interested person’s

performance under any U.S.

Government programs or in connection

with any contracts or agreements with

the U.S. Government during the past

three years.

(e) Ineligibility for program

participation. A person may be

ineligible to participate in the EEP if

such person:

(1) is currently debarred, suspended

or proposed for debarment from

contracting with or participating in any

program administered by a U.S.

Government agency; or

(2) is controlled or can be controlled,

in whole or in part, by any individuals

or entities currently debarred,

suspended or proposed for debarment

from contracting with or participating in

programs administered by a U.S.

Government agency.

(f) Duty to update information

provided to CCC. An eligible exporter is

under a continuing obligation to inform

CCC of any changes in the information

or documentation submitted to CCC

pursuant to paragraph (a) of this section

and to provide current and accurate

information to CCC.

(g) Payment of bonus to exporters

without proven EEP participation. An

eligible exporter that has not yet

demonstrated its ability to participate

successfully in the EEP will be eligible

to receive a bonus payment(s) only after

the eligible commodity specified in an

EEP Agreement has entered into the

eligible country. Such an exporter must

furnish performance security under

‘‘Option B’’ of the applicable Invitation

and follow the procedure specified in

§ 1494.701(d) to request the payment of

the bonus. An eligible exporter may

demonstrate its ability to participate

successfully in the EEP by entering or

causing to be entered into the eligible

country at least 95% of the quantity of

the eligible commodity specified in any

one EEP Agreement. CCC will consider

that an exporter has proven its ability to

participate successfully in the EEP as of

the date on which CCC pays to the

exporter a bonus for entry of a quantity

that brings the total entered quantity for

any one EEP Agreement to at least 95%.

For all EEP Agreements that such

exporter enters into with CCC

subsequent to that date, the exporter

may furnish performance security under

‘‘Option A’’ of the applicable Invitation

and will be eligible to receive bonus

payments in accordance with

§ 1494.701(c).

Signed at Washington, DC, on January 11,

1995.

Christopher E. Goldthwait,

General Sales Manager and Vice President,

Commodity Credit Corporation.

[FR Doc. 95–1192 Filed 1–17–95; 8:45 am]

BILLING CODE 3410–10–P

Rural Housing and Community

Development Service

Rural Business and Cooperative

Development Service

Rural Utilities Service

Consolidated Farm Service Agency

7 CFR Parts 1948 and 1951

RIN 0575–AB83

Intermediary Relending Program

AGENCIES: Rural Housing and

Community Development Service, Rural

Business and Cooperative Development

Service, Rural Utilities Service, and

Consolidated Farm Service Agency,

USDA.

ACTION: Proposed rule.

SUMMARY: The Rural Business and

Cooperative Development Service is

proposing to amend regulations for the

Intermediary Relending Program (IRP).

This action is needed to clarify and

revise procedures and requirements

regarding a variety of issues. The

amendments are expected to clarify the

roles of the Government and

intermediaries, make the program more

responsive to the needs of

intermediaries and ultimate recipients,

and facilitate continuing expansion of

the program.

DATES: Comments must be received on

or before March 20, 1995.

ADDRESSES: Submit written comments

in duplicate to the Chief, Regulations

Analysis and Control Branch, Rural

Economic and Community Development

Service, USDA, Ag. Box 0743,

Washington, DC 20250–0743. All

written comments made pursuant to this

notice will be available for public

inspection during regular working hours

at the above office, located in room

6348, South Agriculture Building, 14th

and Independence Avenue SW,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: M.

Wayne Stansbery, Business and

Industry Loan Specialist, Rural Business

and Cooperative Development Service,

USDA, Ag. Box 3221, Washington, DC

20250, Telephone (202) 720–6819.

SUPPLEMENTARY INFORMATION:

Classification

We are issuing this proposed rule in

conformance with Executive Order

12866, and have determined that it is a

‘‘significant regulatory action.’’

Programs Affected

The Catalog of Federal Domestic

Assistance program impacted by this