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[Federal Register Volume 61, Number 22 (Thursday, February 1, 1996)]
[Rules and Regulations]
[Pages 3547-3548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1206]

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[[Page 3548]]

DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

7 CFR Part 1485

Agreements for the Development of Foreign Markets for 
Agricultural Commodities

AGENCY: Commodity Credit Corporation (CCC).

ACTION: Interim final rule.

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SUMMARY: This interim final rule amends regulations implementing the 
Market Promotion Program (MPP) authorized by Section 203 of the 
Agricultural Trade Act of 1978. This rule revises procedural and 
documentation requirements pertaining to program participants' 
contracts with third parties. The rule also corrects an erroneous 
cross-reference.

DATES: This interim rule is effective on February 1, 1996. Comments 
must be received in writing by February 15, 1996 to be assured of 
consideration.

ADDRESSES: Sharon L. McClure, Director, Marketing Operations Staff, 
Foreign Agricultural Service, United States Department of Agriculture, 
14th and Independence Avenue, SW., Washington, DC 20250-1042.

FOR FURTHER INFORMATION CONTACT: Sharon L. McClure, (202) 720-5521.

SUPPLEMENTARY INFORMATION: This interim final rule is issued in 
conformance with Executive Order 12866. It has been determined to be 
significant for the purposes of E.O. 12866 and, therefore, has been 
reviewed by the Office of Mangement and Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to the interim final 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).

Executive Order 12778

    This rule has been reviewed under the Executive Order 12778, Civil 
Justice Reform. The 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 rule does not require 
that administrative remedies be exhausted before suit may be filed.

Background

    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.
    On February 1, 1995, Commodity Credit Corporation (``CCC'') 
published final rules governing the MPP. These new rules were 
applicable beginning with a participant's 1995 marketing year. 
Following publication, CCC participated with interested parties in five 
information sessions designed to familiarize participants with the new 
regulations and offer participants an additional opportunity to 
identify any problem areas. At these sessions, participants expressed 
concern that new regulatory requirements applicable to a participant's 
contracts with third parties imposed an undue administrative burden 
and, because of the relatively late announcement of 1995 MPP 
allocations, could significantly delay effective implementation of some 
participants' 1995 programs. Specifically, participants expressed 
concern regarding the requirements for a price or cost analysis for 
each contract, 7 CFR 1485.23(c)(2)(v), and for certain procedural 
requirements in the solicitation of bids, 7 CFR 1485.23(c)(2)(vi).
    CCC agrees that these requirements may unnecessarily increase costs 
to participants and may delay implementation of many activities and 
thereby be detrimental to the operation of an efficient market 
development program. Consequently, this rule will eliminate the current 
requirements in 7 CFR 1485.23(c)(2)(vi) regarding specific procurement 
procedures. In addition, the regulation regarding price or cost 
analysis is revised to indicate that CCC is not requiring a specific 
type of analysis or formal procedure for such analysis. Rather, the 
regulation makes it clear that various types of informal analysis 
should suffice, e.g., a simple comparison of price quotes with present 
market conditions. In this way, CCC requires the participant to act in 
a reasonable manner when entering into obligations to be reimbursed 
with project funds, without imposing any undue administrative burden on 
the participant.
    This rule also revises an erroneous cross-reference presently in 
Sec. 1485.16(c)(24).

Information Collection Requirements

    The amendment set forth in this interim final rule does not impose 
any new reporting or record keeping requirements. The information 
collection requirements for participating in the MPP were approved for 
use by the Office of Management and Budget under OMB control number 
00551-0027.

List of Subjects in 7 CFR Part 1485

    Agricultural commodities, Exports.

PART 1485--AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR 
AGRICULTURAL COMMODITIES

    1. The authority citation for Part 1485 continues to read:

    Authority: 7 U.S.C. 5623, 5662-5664 and sec. 1302, Pub. L. 103-
66, 107 Stat. 330.

Subpart B--Market Promotion Program

    2. Section 1485.16(c)(24) is revised to read as follows:

Sec. 1485.16  Reimbursement rules.

* * * * *
    (c) * * *
    (24) Generic commodity promotions (see Sec. 1486.16(f));
* * * * *
    3. Section 1485.23 is amended by revising paragraph (c)(2)(v) to 
read as follows and by deleting paragraph (c)(2)(vi):

Sec. 1485.23  Miscellaneous provisions.

* * * * *
    (c) * * *
    (2) * * *
    (v) Perform 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.
* * * * *
    Signed at Washington, DC, this 25th day of January 1996.
August Schumacher, Jr.,
Administrator, Foreign Agricultural Service and Vice President, 
Commodity Credit Corporation.
[FR Doc. 96-1206 Filed 1-31-96; 8:45 am]
BILLING CODE 3410-10-P
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