[Federal Register Volume 63, Number 214 (Thursday, November 5, 1998)]
[Rules and Regulations]
[Pages 59691-59692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29588]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 63, No. 214 / Thursday, November 5, 1998 /
Rules and Regulations
[[Page 59691]]
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DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 17
RIN 0551-AA54
Regulations Governing the Financing of Commercial Sales of
Agricultural Commodities
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: This rule revises the regulations applicable to the financing
of the sale and exportation of agricultural commodities pursuant to
title I of the Agricultural Trade Development and Assistance Act of
1954, as amended (Pub. L. 480). The rule would permit a waiver of the
present requirement that only private entities with a business office
or agent in the United States are eligible to enter into title I, Pub.
L. 480 agreements when the General Sales Manager determines that there
is adequate assurance of repayment to CCC. This change would allow
additional foreign private entities to participate in title I, and
thereby increase exports of U.S. agricultural commodities.
DATES: This rule is effective November 5, 1998.
ADDRESSES: Comments should be sent to Grant Pettrie, Acting Director,
Program Development Division, Foreign Agricultural Service, U.S.
Department of Agriculture, Room 4506, South Building, Stop 1034,
Washington, DC 20250-1034.
FOR FURTHER INFORMATION CONTACT: Acting Director, Program Development
Division, Foreign Agricultural Service, U.S. Department of Agriculture,
Room 4506, South Building, Stop 1034, Washington, DC 20250-1034;
telephone: (202) 720-4221; Facsimile: (202) 690-0251.
SUPPLEMENTARY INFORMATION: This rule is issued in conformance with
Executive Order 12866. Based on information compiled by the Department,
it has been determined that this rule:
(1) Would have an annual effect on the economy of less than $100
million;
(2) Would not adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities;
(3) Would not create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency;
(4) Would not alter the budgetary impact of entitlements, grants,
user fees, or loan programs or rights and obligations of recipients
thereof; and
(5) Would not raise novel legal or policy issues arising out of
legal mandates, the President's priorities, or principles set forth in
Executive Order 12866.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act. The Vice President, CCC, who is the General
Sales Manager, has certified that this rule will not have a significant
economic impact on a substantial number of small entities. Under title
I, Pub. L. 480 CCC enters into agreements with foreign governments or
private entities to finance their purchase and importation of U.S.
agricultural commodities. The rule would allow a waiver of an existing
program requirement that restricts the eligibility of businesses in
foreign countries to enter into these agreements with CCC. A copy of
this rule has been submitted to the General Counsel, Small Business
Administration.
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 the Notice related to 7 CFR Part 3015, Subpart V,
published at 48 FR 29115 (June 24, 1983).
Paperwork Reduction Act
The information collection requirements imposed by this rule have
been previously submitted to the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35). OMB
has assigned control number 0551-0005 for this information collection.
This rule would not require the collection of additional information.
Executive Order 12988
This rule has been reviewed under Executive order 12988, 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 final rule does not have a retroactive effect. The rule does not
require that administrative remedies be exhausted before suit may be
filed.
Background
Title I of the Agricultural Trade Development and Assistance Act of
1954, as amended (Pub. L. 480) authorizes CCC to finance the sale and
exportation of agricultural commodities on concessional credit terms, 7
U.S.C. 1701 et seq. CCC may enter into title I, Pub. L. 480 agreements
with private entities. Current regulations provide that, in order to be
eligible for a title I, Pub. L. 480 agreement, a private entity must
maintain a bona fide business office in the United States and have a
person, principal, or agent on whom service of judicial process may be
had in the United States.
On August 7, 1998, CCC published a proposed rule (63 FR 42283) that
would allow the General Sales Manager to waive this requirement if the
foreign private entity provides adequate assurances of repayment to CCC
for the financing extended to it under the Pub. L. 480 agreement.
The purpose of the proposed rule was to allow CCC more flexibility
in programming in order to take advantage of viable export
opportunities. CCC did not receive any comments on the proposed rule
and is adopting it as a final rule without change.
List of Subjects in 7 CFR Part 17
Agricultural commodities, Exports, Finance, Maritime carriers.
Accordingly, this rule amends part 17 of 7 CFR As follows:
[[Page 59692]]
Part 17--Sales of Agricultural Commodities Made Available Under
Title I of the Agricultural Trade Development and Assistance Act of
1954, as Amended
1. The authority citation for part 17 continues to read as follows:
Authority: 7 U.S.C. 1701-1704, 1731-1736b, 1736f, 5676,; E.O.
12220, 45 FR 44245.
2. Section 17.1(b)(3) is revised to read as follows:
Sec. 17.1 General.
* * * * *
(b) * * *
(3) A private entity must maintain a bona fide business office in
the United States and have a person, principal, or agent on whom
service of judicial process may be had in the United States unless the
General Sales Manager determines that there are adequate assurances of
repayment to CCC for the financing extended by CCC.
* * * * *
Signed at Washington, DC, on October 14, 1998.
Lon Hatamiya,
Administrator, Foreign Agricultural Service and Vice President,
Commodity Credit Corporation.
[FR Doc. 98-29588 Filed 11-4-98; 8:45 am]
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