[Federal Register Volume 85, Number 8 (Monday, January 13, 2020)]
[Rules and Regulations]
[Pages 1731-1747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27965]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Rules
and Regulations
[[Page 1731]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1485
RIN 0551-AA97
Market Access Program
AGENCY: Commodity Credit Corporation and Foreign Agricultural Service,
USDA.
ACTION: Final rule.
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SUMMARY: The Commodity Credit Corporation (CCC) is revising the Market
Access Program (MAP) regulations to eliminate the 5-year limit on
participation by branded products in the program, as required in the
Agriculture Improvement Act of 2018, and to incorporate changes that
conform the operation of the program to the requirements in the Uniform
Guidance and Federal grant-making best practices.
DATES: This rule is effective on January 13, 2020.
FOR FURTHER INFORMATION CONTACT: Curt Alt, (202) 690-4784,
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The MAP is authorized under Section 203 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5623), as amended. The MAP program regulations
appear at 7 CFR part 1485. The Agriculture Improvement Act of 2018
(Pub. L. 115-334), which reauthorized the program for fiscal years
2019-2023, increased the program's flexibility and usefulness to
stakeholders by eliminating the 5-year limit on participation by
branded products in the program and making minor legislative changes to
the program. In addition, FAS is updating the regulations to bring the
operation of the program into conformance with the requirements in the
Uniform Guidance. Additional changes, such as the flexibility to
announce program funding opportunities on the Grants.gov portal and
edits to bring more consistency between the Market Access Program (MAP)
and the Foreign Market Development (FMD) program, are desirable to
bring the administration of the program into line with current best
practices in Federal grant-making.
Notice and Comment
This rule is being issued as a final rule without prior notice and
opportunity for comment. The Administrative Procedure Act (5 U.S.C.
553) exempts rules ``relating . . . to public property, loans, grants,
benefits, or contracts'' from the statutory requirements for prior
notice and opportunity for comment and publication of the rule not less
than 30 days before its effective date (5 U.S.C. 553(a)(2)).
Accordingly, this final rule is effective when published in the Federal
Register.
Catalog of Federal Domestic Assistance
The program covered by this regulation is listed in the Catalog of
Federal Domestic Assistance (CFDA) under the following FAS CFDA number:
10.601, Market Access Program.
E-Government Act Compliance
FAS is committed to complying with the E-Government Act of 2002 (44
U.S.C. chapter 36), to promote the use of the internet and other
information technologies to provide increased opportunities for
citizens' access to Government information and services, and for other
purposes.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988, ``Civil Justice Reform.'' This rule does not preempt State or
local laws, regulations, or policies unless they present an
irreconcilable conflict with this rule. This rule will not be
retroactive.
Executive Order 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with officials of State and local
governments that would be directly affected by the 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 the State and local
government coordination and review of proposed Federal financial
assistance and direct Federal development. This rule will not directly
affect State or local governments, and, for this reason, it is excluded
from the scope of Executive Order 12372.
Executive Order 12866 and 13563
Executive Orders 12866 and 13563 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 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This final rule has been determined to be not significant
and was not reviewed by the Office of Management and Budget (OMB) in
conformance with Executive Order 12866.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs has designated this
rule as not a major rule, as defined by 5 U.S.C. 804(2).
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 require tribal
consultation under Executive Order 13175. If a tribe requests
consultation, FAS will work with USDA Office of Tribal Relations to
ensure
[[Page 1732]]
meaningful consultation is provided where changes, additions, and
modifications identified herein are not expressly mandated by Congress.
Executive Order 13771
Executive Order 13771 directs agencies to reduce regulation and
control regulatory costs and provides that for every new regulation
issued, at least two prior regulations be identified for elimination,
and that the cost of planned regulations be prudently managed and
controlled through a budgeting process. This rule is not an Executive
Order 13771 regulatory action because this rule is not significant
under Executive Order 12866.
List of Subjects in 7 CFR Part 1485
Agricultural commodities, Exports.
For the reasons discussed in the preamble, CCC revises 7 CFR part
1485 to read as follows:
PART 1485--GRANT AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS
FOR U.S. AGRICULTURAL COMMODITIES
Subpart A--[Reserved]
Subpart B--Market Access Program
Sec.
1485.10 General purpose and scope.
1485.11 Definitions.
1485.12 Participation eligibility.
1485.13 Application process.
1485.14 Application review and formation of agreements.
1485.15 Operational procedures for brand programs.
1485.16 Contribution and cost share rules.
1485.17 Reimbursement rules.
1485.18 Reimbursement procedures.
1485.19 Advances.
1485.20 Employment practices.
1485.21 Financial management.
1485.22 Reports.
1485.23 Evaluation.
1485.24 Compliance reviews and notices.
1485.25 Failure to make required contribution or cost share.
1485.26 Submissions.
1485.27 Disclosure of program information.
1485.28 Ethical conduct.
1485.29 Subawarding procedures.
1485.30 Property standards.
1485.31 Anti-fraud requirements.
1485.32 Program income.
1485.33 Amendments.
1485.34 Subrecipients.
1485.35 Audit requirements.
1485.36 Suspension and termination of agreements.
1485.37 Noncompliance with an agreement.
1485.38 Paperwork reduction requirements.
Authority: 7 U.S.C. 5623, 5662-5663
Subpart A--[Reserved]
Subpart B--Market Access Program
Sec. 1485.10 General purpose and scope.
(a) This subpart sets forth the general terms and conditions
governing the Commodity Credit Corporation's (CCC) operation of the
Market Access Program (MAP).
(b)(1) The Office of Management and Budget (OMB) issued guidance on
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards in 2 CFR part 200. In 2 CFR 400.1, the
U.S. Department of Agriculture (USDA) adopted OMB's guidance in
subparts A through F of 2 CFR part 200, as supplemented by 2 CFR part
400, as USDA policies and procedures for uniform administrative
requirements, cost principles, and audit requirements for Federal
awards.
(2) The OMB guidance at 2 CFR part 200, as supplemented by 2 CFR
part 400 and this subpart, applies to the Market Access Program (MAP)
Program.
(3) In addition to the provisions of this subpart, other
regulations that are generally applicable to grants and cooperative
agreements of USDA, including the applicable regulations set forth in 2
CFR chapters I, II, and IV, also apply to the MAP, to the extent that
these regulations do not directly conflict with the provisions of this
subpart. The provisions of the CCC Charter Act (15 U.S.C. 714 et seq.)
and any other statutory or regulatory provisions that are generally
applicable to CCC also apply to the MAP.
(c) Under the MAP, CCC may provide grants to eligible U.S. entities
to conduct certain marketing and promotion activities aimed at
developing, maintaining, or expanding commercial export markets for
U.S. agricultural commodities. MAP 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. CCC expects all activities that occur in
the United States for which MAP reimbursement is sought to develop,
maintain, or expand the commercial export market for the relevant U.S.
agricultural commodity in accordance with the MAP Participant's
approved MAP program.
(d) The MAP generally operates on a reimbursement basis.
(e) CCC's policy is to ensure that benefits generated by MAP
agreements are broadly available throughout the relevant agricultural
sector and that no single entity gains an undue advantage or sole
benefit from program activities. CCC also endeavors to enter into MAP
agreements covering a broad array of agricultural commodity sectors.
The MAP is administered by the Foreign Agricultural Service (FAS)
acting on behalf of CCC.
Sec. 1485.11 Definitions.
For purposes of this subpart the following definitions apply:
Activity means a specific foreign market development effort
undertaken by a MAP Participant.
Administrative expenses or costs means expenses or costs of
administering, directing, and controlling an organization that is a MAP
Participant. Generally, this would include expenses or costs such as
those related to:
(1) Maintaining a physical office (including, but not limited to:
Rent, office equipment, office supplies, office d[eacute]cor, office
furniture, computer hardware and software, maintenance, extermination,
parking, and business cards);
(2) Personnel (including, but not limited to: Salaries, benefits,
payroll taxes, individual insurance, and 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, and walkie
talkies);
(4) Management of an organization or unit of an organization
(including, but not limited to: Planning, supervision, supervisory
travel, teambuilding, recruiting, and hiring);
(5) Utilities (including, but not limited to: Sewer, water, and
energy);
(6) Professional services (including, but not limited to:
Accounting expenses, financial services, and investigatory services).
Affiliate means any partnership, association, company, corporation,
trust, or any other such party in which the Participant has an
investment, other than a mutual fund.
Agreement means a legally binding grant entered into between CCC
and a MAP applicant setting forth the terms and conditions to implement
approved activities under the MAP program, including any subsequent
amendments to such agreement.
Approval letter means a document by which CCC informs an applicant
that its MAP application for a program year has been approved for
funding. This letter may also approve specific activities and contain
terms and conditions in addition to the agreement. This letter requires
a countersignature by the MAP Participant before it becomes effective.
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Attach[eacute]/Counselor means the FAS employee representing USDA
interests in the foreign country in which promotional activities are
conducted.
Brand participant means a small-sized U.S. for-profit entity or a
U.S. agricultural cooperative that owns the brand(s) of the eligible
commodity to be promoted or has the exclusive rights to use such
brand(s) and that is participating in the MAP brand promotion program
of another MAP Participant. This definition does not include any U.S.
agricultural cooperatives that are MAP Participants that apply for MAP
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 MAP Participant in the
brand program.
Constraint means a condition in a particular country or region that
needs to be addressed in order to develop, expand, or maintain exports
of a specific eligible commodity.
Contribution means the funds, e.g., money, personnel, materials,
services, facilities, or supplies, provided by a MAP Participant, State
agency or entities in the MAP Participant's industry (``U.S.
industry'') in support of a MAP Participant's generic promotion program
as well as funds provided by the MAP Participant, U.S. industry, or
State agency in support of related promotion activities in the markets
covered by the MAP Participant's agreement.
Cost share means the funds, e.g., money, personnel, materials,
services, facilities, or supplies, provided by a MAP Participant,
entities in the MAP Participant's industry, or State agency in support
of an approved activity.
Credit memo means a commercial document, also known as a credit
memorandum, issued by the MAP Participant to a commercial entity that
owes the MAP Participant a certain sum. A credit memo is used when the
MAP 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 MAP Participant owes the entity against the amount the
entity owes to the MAP Participant.
Demonstration projects means activities involving the erection or
construction of a structure or facility or the installation of
equipment.
Eligible commodity means any agricultural commodity or product
thereof, excluding tobacco, that is comprised of at least 50 percent by
weight, exclusive of added water, of agricultural commodities grown or
raised in the United States.
Expenditure means either payment via the transfer of funds or
offset reflected in a credit memo in lieu of a transfer of funds.
FAS website means a website maintained by FAS providing information
on the MAP. It is currently accessible at www.fas.usda.gov/programs/market-access-program-map.
Foreign subrecipient means a foreign entity that a MAP Participant
works with, in accordance with this subpart, to promote the export of
an eligible commodity under the MAP program.
Generic promotion means an activity that is not a brand promotion
but, rather, promotes an eligible 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 eligible commodity or product 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 MAP Participant must ensure that all U.S. companies seeking
to promote such eligible 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.
MAP is the acronym for the Market Access Program.
MAP Participant or Participant means an entity that has entered
into an agreement with CCC.
Market means a country or region targeted by an activity.
Notification means a document from the MAP Participant by which the
MAP Participant proposes to CCC changes to the activities and/or
funding levels in an approved 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
might 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 notice means documents that CCC issues for informational
purposes. These notices are currently made available electronically
through the FAS website. These notices have no legal effect. They are
intended to alert MAP Participants of various aspects of CCC's current
administration of the MAP program. For example, CCC issues notices to
alert Participants of applicable Federal pay scale rates and lists of
economic and trade sanctions against certain foreign countries.
Program year means, unless otherwise agreed to in writing between
CCC and a MAP Participant, a 12-month period during which a MAP
Participant can undertake activities consistent with this subpart and
its agreement and approval letter with CCC. This is also known as a
project period, which in multiple year awards will be divided into
budget periods.
Promoted commodity means an eligible commodity the sale of which is
the intended result of a promotional activity under the MAP.
Sales and trade relations expenditures (STRE) means expenditures
made on breakfast, lunch, dinner, receptions, and refreshments at
approved activities; miscellaneous 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. commercial entity that meets the
small business size standards published at 13 CFR part 121, Small
Business Size Regulations.
SRTG is the acronym for State Regional Trade Group. An SRTG is a
nonprofit association of state-funded agricultural promotion agencies.
Supergrade means a salary level above the reimbursable salary range
generally allowable under the MAP, which CCC may approve on a case by
case basis. This salary level is available only for certain non-U.S.
employees who direct MAP Participants' overseas offices.
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
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activity intended to promote the interests of an entire agricultural
sector rather than to result in specific sales by any of its members.
Unified Export Strategy (UES) means a holistic marketing plan that
outlines an applicant's proposed foreign market development activities
and requested funding under each of the FAS market development
programs.
Unified Export Strategy (UES) system means an online internet
system maintained by FAS through which applicants may currently apply
to the MAP and other FAS market development programs. The system is
currently accessible at https://apps.fas.usda.gov/ues/webapp/. FAS may
prescribe a different system through which applicants may apply to MAP
and will announce such system in the applicable Notice of Funding
Opportunity (NOFO).
U.S. agricultural commodity means any agricultural commodity of
U.S. origin, including food, feed, fiber, forestry product, livestock,
insects, and 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.
U.S. for-profit entity means an organized or incorporated firm,
association, or other entity that is located and doing business for
profit in the United States and is engaged in the export or sale of an
eligible commodity.
Sec. 1485.12 Participation eligibility.
(a) To participate in the MAP, an entity shall be:
(1) A nonprofit U.S agricultural trade organization;
(2) A nonprofit SRTG;
(3) A U.S. agricultural cooperative; or
(4) A State agency.
(b) CCC will enter into an agreement only for the promotion of an
eligible commodity.
(c) FAS may set forth specific eligibility information, including
any factors or priorities that will affect the eligibility of an
applicant or application for selection, in the full text of the
applicable NOFO posted on the U.S. Government website for grant
opportunities.
Sec. 1485.13 Application process.
(a) General application requirements. CCC will periodically
announce through a NOFO that it is accepting applications for
participation in the MAP for a specified program year. This
announcement will be posted on the U.S. Government website for grant
opportunities. Applications shall be submitted in accordance with the
terms and requirements specified in the announcement and in this part.
Currently, applicants are encouraged to submit applications through the
UES system but are not required to do so. Applicants may apply to
conduct a generic promotion program and/or a brand promotion program
that provides MAP funds to brand participants for branded promotion. An
applicant that is a U.S. agricultural cooperative may also apply for
funds to conduct its own brand promotion program.
(b) Universal identifier and System for Award Management (SAM). In
accordance with 2 CFR part 25, each entity that applies to the MAP
program and does not qualify for an exemption under 2 CFR 25.110 must:
(1) Be registered in the SAM prior to submitting an application or
plan;
(2) Maintain an active SAM 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, or a unique identifier designated as a
DUNS replacement, in each application or plan it submits to CCC.
(c) Reporting subaward and executive compensation information. In
accordance with 2 CFR part 170, each entity that applies to the MAP
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 MAP funding.
Sec. 1485.14 Application review and formation of agreements.
(a) General. (1) 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. CCC will review all proposals for
eligibility and completeness. CCC will evaluate and score each proposal
against the factors described in the NOFO. The purpose of this review
is to identify meritorious proposals, recommend an appropriate funding
level for each proposal, and submit the proposals and funding
recommendations to appropriate officials for decision. CCC may, when
appropriate to the subject matter of the proposal, request the
assistance of other U.S. Government experts in evaluating the merits of
a proposal.
(2) When considering eligible nonprofit U.S. trade organizations,
CCC may weigh which organizations have the broadest producer
representation and affiliated industry participation of the commodity
being promoted. CCC may require that an applicant participate in the
MAP through another MAP Participant or applicant. All reviewers will be
required to sign a conflict of interest form, and when conflicts of
interests are identified the reviewer will be recused from the
objective review process.
(b) Application review criteria. CCC follows results-oriented
management principles and considers the following criteria when
assessing the likelihood of success of the applications it receives,
determining which applications to recommend for approval, and
developing preliminary recommended funding levels:
(1) Strategic planning (25%);
(2) Program implementation (25%); and
(3) Program results and evaluation (50%).
(c) Allocation factors. 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 year's MAP
announcement. Generally, extensions will not be allowable.
(d) Approval decision--(1) Approval decision. CCC will approve
those applications that it determines best satisfy the criteria and
factors specified in paragraphs (a), (b), and (c) of this section.
(2) Notification of decision. CCC will notify each applicant in
writing of the final disposition of its application. CCC will send an
agreement, an approval letter, and a signature card to each approved
applicant. The agreement and the approval letter will outline which
activities and budgets are approved and will specify any special terms
and conditions applicable to a MAP Participant's program, including any
requirements with respect to contribution, cost share and program
evaluations. An applicant that decides to accept the terms and
conditions contained in the agreement and the approval letter must so
indicate by having its Chief Executive Officer (CEO) or designee sign
the agreement and the approval letter and submit these to CCC. Final
agreement shall occur when the agreement and the approval letter are
signed by both parties. The agreement, approval letter, and this
subpart shall establish the terms and conditions of a MAP agreement
between CCC and the approved applicant.
(e) Signature cards. The MAP Participant shall designate at least
two individuals in its organization to sign agreements and amendments,
approval letters, reimbursement claims, and
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advance requests. The MAP Participant shall submit the signature card
signed by those designated individuals and by the MAP Participant's CEO
to CCC prior to the start of the program year. The Participant shall
immediately notify CCC of any changes in signatories (e.g., removal or
addition of individuals, name changes, etc.), and shall submit a
revised signature card accordingly.
(f) UES ID and passwords. CCC will provide each MAP Participant
with IDs and passwords for the UES system, as necessary. MAP
Participants shall protect these IDs and passwords in accordance with
USDA's information technology policies. MAP 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.
(g) Annual size certification. A MAP Participant through which
small-sized U.S. for-profit entities and/or U.S. agricultural
cooperatives are participating in the MAP program shall obtain annual
certifications from all such entities that they are small-sized U.S.
entities or U.S. agricultural cooperatives as defined in these
regulations. The Participant shall retain these certifications in
accordance with the recordkeeping requirements of this subpart.
(h) Changes to activities and funding--(1) Adding a new activity.
(i) A MAP 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 MAP 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 the market, constraint, or
opportunity that the activity proposes to address. The notification
shall contain the activity description, the proposed budget, and a
justification for the transfer of funds.
(iii) After receipt of the notification, CCC will inform the MAP
Participant via the UES system whether the requested budget is
approved.
(2) Modifying existing activities and their funding levels. (i) A
MAP 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) A MAP Participant may make significant adjustments below that
threshold to the funding levels for existing, approved activities
without prior notification to CCC, but only if it submits a
notification explaining the adjustments to CCC no later than 30
calendar days after the change. Minor adjustments to existing, approved
activities and/or funding levels do not require notification.
(iii) Notifications shall describe the activity and any changes to
the activity, the existing funding level, or the proposed funding level
and shall include a justification for the transfer of funds, if
applicable.
Sec. 1485.15 Operational procedures for brand programs.
(a) Where CCC approves an application by a MAP Participant to run a
brand promotion program that will include brand participants, the MAP
Participant shall establish brand program operational procedures. The
MAP Participant annually shall submit to CCC for approval its proposed
brand program operational procedures for such program year. CCC will
notify all new and existing MAP Participants in writing in each
Participant's approval letter and through the FAS website as to
applicable submission dates for 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.
(b) The MAP Participant shall not enter into any participation
agreements with brand participants nor shall it implement any MAP brand
activities for the applicable program year unless and until CCC has
communicated in writing its approval of the proposed operational
procedures to the MAP Participant.
(c) Participation agreements between MAP Participants and brand
participants. Where CCC approves a MAP Participant's application to run
a brand promotion program that will include brand participants, the MAP
Participant shall enter into participation agreements with brand
participants. These agreements must:
(1) Specify a time period for such brand promotion and require that
all brand promotion expenditures be made within the MAP Participant's
approved program year;
(2) Make no allowance for extension or renewal;
(3) Limit reimbursable expenditures to those made in countries and
for 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 eligible 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 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 these terms as a descriptor or in the
name of the product (e.g., Texas style chili, Bob's American Pizza)
does not satisfy the product origin requirement. Phrases ``product
of,'' ``grown in,'' or ``made in'' are encouraged, but not required. A
MAP 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 CCC that this labeling requirement would
hinder a MAP 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, CCC may
temporarily waive this requirement where CCC has determined that such
labeling will likely harm sales rather than help them. Such
determinations will be announced to MAP Participants via a program
notice issued on FAS' website;
(7) Include a written certification by the brand participant that
it is either a small-sized entity as defined in this
[[Page 1736]]
subpart or a U.S. agricultural cooperative;
(8) Require that the brand participant submit to the MAP
Participant a statement certifying that any Federal funds received will
supplement, but not supplant, any private or third-party funds or other
contribution or cost share to program activities; and
(9) Require the brand participant to maintain all original records
and documents relating to program activities for five calendar years
following the end of the applicable program year and make such records
and documents available upon request to authorized officials of the
U.S. Government.
Sec. 1485.16 Contribution and cost share rules.
(a) A MAP Participant implementing a MAP generic promotion program
shall make contributions equal to at least 10 percent of the total
amount reimbursed by CCC for all approved generic promotion activities
undertaken by the MAP Participant. The contribution amount will be
reflected in the award budget.
(b) A MAP Participant conducting its own brand promotion or a brand
participant that is participating in the MAP brand promotion program of
another MAP Participant shall provide funds for the branded activity in
an amount that is at least equivalent to the amount of assistance they
get from MAP for that activity.
(c) A MAP Participant must use its own funds and may not use MAP
funds to pay any administrative costs of the MAP Participant's U.S.
office(s), including legal fees, except as set forth in this subpart.
Where the MAP Participant uses its own funds to pay for administrative
costs, such costs may be counted in calculating the amount of
contribution or cost share the MAP Participant contributes to MAP
generic or brand promotion programs.
(d)(1) In calculating the amount of contribution or cost share that
it will make, and the contribution or cost share that the U.S. industry
(including expenditures to be made by entities in the applicant's
industry in support of the entities' related promotion activities in
the markets covered by the applicant's application) or State or local
agency will make, the MAP applicant may include the costs (or such
prorated 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 cost share 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; and
(iv) The contribution or cost share is made during the period
covered by the agreement.
(2) Subject to paragraph (d)(1) of this section, as well as the
cost principles in 2 CFR part 200 to the extent these principles do not
directly conflict with the provisions of this subpart, the following
are eligible contribution or cost share:
(i) Cash;
(ii) Compensation paid to personnel;
(iii) The cost of acquiring materials, supplies, or services;
(iv) The cost of office space, including legal fees;
(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) Fees for office parking;
(ix) The cost of subscriptions that are of a technical, economic,
or marketing nature and that are relevant to the approved activities of
the MAP Participant;
(x) The cost of activities conducted overseas;
(xi) Credit card fees;
(xii) The cost of any independent evaluation or audit that is not
required by CCC to ensure compliance with agreement or regulatory
requirements;
(xiii) The cost of giveaways, awards, prizes, and gifts;
(xiv) The cost of product samples;
(xv) Fees for participating in U.S. Government sponsored or
endorsed export promotion activities;
(xvi) The cost of air and local travel in the United States related
to a foreign market development effort;
(xvii) Transportation and shipping costs;
(xviii) The cost of displays and promotional materials;
(xix) Advertising costs;
(xx) Reasonable travel costs and expenses related to undertaking a
foreign market development activity;
(xxi) The costs associated with trade shows, seminars, and STRE
conducted in the United States, and costs associated with entertainment
conducted in the United States where such entertainment costs have a
programmatic purpose and are authorized in the agreement and/or the
approval letter or are authorized by prior written approval of CCC;
(xxii) Product research that is undertaken to benefit an industry
and has a specific export application;
(xxiii) Other administrative expenses (e.g., supervisory travel
from the U.S. to an overseas office); and
(xxiv) The cost of any activity expressly listed as reimbursable in
this subpart.
(3) The following are not eligible contribution or cost share:
(i) Any portion of salary or compensation of an individual who is
the target of a promotional activity;
(ii) Any expenditure, including that portion of salary and time
spent, related to promoting membership in the Participant's
organization;
(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;
(viii) Slotting fees or similar sales expenditures;
(ix) Funds, services, capital goods, or personnel provided by any
U.S. Government agency;
(x) The value of any services generated by a MAP Participant or
third party that involve no expenditure by the MAP Participant or third
party, e.g., free publicity;
(xi) Membership fees in clubs and social organizations; and
(xii) Any expenditure for an activity prior to CCC's approval of
that activity.
(4) CCC shall determine, at CCC's discretion, whether any cost not
expressly listed in this section may be included by the MAP Participant
as an eligible contribution or cost share.
Sec. 1485.17 Reimbursement rules.
(a) A MAP Participant may seek reimbursement for an eligible
expenditure if:
(1) The expenditure was necessary and reasonable for the
performance 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
the cost principles in 2 CFR 200 to the extent these principles do not
directly conflict with the provisions of this subpart, for
[[Page 1737]]
either brand or generic promotion activities, CCC will reimburse, in
whole or in part, the cost of:
(1) Production and placement of advertising, including 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 MAP-promoted product is not
reimbursable. If advertising is related to both coupons or price
discounts for products other than the MAP Participant's promoted
products as well as for MAP-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), including shipment of samples
or other program materials from the United States to foreign countries;
(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, including space rental, equipment
rental, and duplication of seminar materials;
(7) Subject to paragraph (b)(18) of this section, non-travel
expenditures, including participation fees, booth construction,
transportation of related materials, rental of space and equipment, and
duplication of related printed materials, associated with retail,
trade, and consumer exhibits and shows, whether held outside or inside
the United States. However, non-travel expenditures associated with
retail, trade, and consumer exhibits and shows held inside the United
States are reimbursable only if the exhibit or show is included on the
list of approved U.S. exhibits and shows announced via a program notice
issued on FAS' website and the exhibit or show is one that the MAP
Participant has not participated in within the last three years using
funds from a source other than the MAP. Retail, trade, and consumer
exhibits and shows held inside the United States may be considered for
inclusion on the list of approved exhibits and shows if they are:
(i) A food or agricultural exhibit or show with no less than 30% of
exhibitors selling food or agricultural products; and
(ii) An international exhibit or show that targets buyers,
distributors, and the like from more than one foreign country and no
less than 15% of its visitors are from countries other than the host
country;
(8) Subject to paragraph (b)(18) of this section, international
travel expenditures (with airfare limited to the full fare economy
rate), including per diem and any fees for passports, visas,
inoculations, and modifying the originally purchased airline ticket, as
allowed under the U.S. Federal Travel Regulations (41 CFR parts 300
through 304), for no more than two representatives of a single brand
participant (or MAP 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;
(9) Subscriptions that are of a technical, economic, or marketing
nature and that are relevant to the approved activities of the MAP
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 MAP Participants via a program
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 year 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 MAP Participant's promoted products. If such
activities include both coupons or price discounts for products other
than the MAP Participant's promoted products as well as for MAP-
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 a MAP Participant as required by 2 CFR part 200,
subpart F if the MAP is the MAP 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 (with airfare limited to the
full fare economy rate), including per diem and any fees for passports,
visas, inoculations, and modifying the originally purchased airline
ticket, as allowed under the U.S. Federal Travel Regulations (41 CFR
parts 300 through 304), 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
MAP 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)(A) The MAP 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:
[[Page 1738]]
(1) A product showcase where the FAS overseas office approved an
invitation list of qualified buyers;
(2) Pre-arranged one-on-one business meetings; and
(3) Evaluation and feedback sessions with FAS staff and trade
mission sponsors.
(B) Reimbursement is conditional on the MAP Participant having
notified in writing the Attach[eacute]/Counselor in the destination
country in advance of the travel;
(18) Where USDA has sponsored or endorsed a U.S. pavilion at a
retail, trade, or consumer exhibit or show, whether held outside or
inside the United States, MAP funds may be used to reimburse the travel
and/or non-travel expenditures of only those MAP Participants located
within the U.S. pavilion. Such expenditures must also adhere to the
standard terms and conditions of the U.S. pavilion organizer. Upon
written request, CCC may temporarily waive this subsection, on a case
by case basis, where the trade show is segregated into product
pavilions or a company's distributor or importer is located outside the
U.S. pavilion. Such waiver will be provided to the MAP Participant in
writing; and
(19) Contracts with U.S.-based organizations when the only
contracted service such organizations provide to a MAP 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 MAP Participant's
domestic home office during a program year, any direct promotional
services such organization provides to the Participant, whether for the
Participant's domestic or overseas offices, during the same program
year are not reimbursable.
(c) Subject to paragraphs (a) and (d) of this section, as well as
the cost principles in 2 CFR part 200 to the extent these principles do
not directly conflict with the provisions of this subpart, but for
generic promotion activities only, CCC will also reimburse, in whole or
in part, the cost of:
(1) Compensation and allowances for housing, educational tuition,
and cost of living adjustments paid to a U.S. citizen employee or a
U.S. citizen contractor stationed overseas, provided such benefits are
granted under established written policies, except CCC will not
reimburse that portion of:
(i) The total of compensation and allowances that exceed 125
percent of the level of a GS-15 Step 10 salary for U.S. Government
employees; or
(ii) Allowances that exceed the rate authorized for U.S. Embassy
personnel.
(2) Approved Supergrade salaries for non-U.S. citizen employees and
non-U.S. contractors stationed overseas;
(3) Compensation of non-U.S. citizen staff employees or non-U.S.
contractors stationed overseas, subject to the following limitations:
(i) Where there is a local U.S. Embassy Foreign Service National
(FSN) salary plan, CCC will not reimburse any portion of such
compensation that exceeds the compensation prescribed for the most
comparable position in the FSN salary plan, except for approved
Supergrades; or
(ii) Where an FSN salary plan does not exist, CCC will not
reimburse any portion of such compensation that exceeds locally
prevailing levels, which the MAP Participant shall document by a salary
survey or other means, except for approved Supergrades;
(4) A retroactive salary adjustment for non-U.S. citizen staff
employees or non-U.S. contractors stationed overseas that conforms to a
change in FSN salary plans, effective as of the date of such change;
(5) Accrued annual leave as of the time employment is terminated or
as of such time as required by local law;
(6) Overtime paid to clerical staff of approved MAP-funded overseas
offices;
(7) Temporary contractor fees for contractors stationed overseas,
except CCC will not reimburse any portion of any such fee that exceeds
the daily gross GS-15, Step 10 salary 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;
(8)(i) Subject to paragraph (b)(18) of this section, international
travel expenditures, including per diem and any fees for passports,
visas, inoculations, and modifying the originally purchased airline
ticket, for activities held outside the United States or in the United
States, as allowed under the U.S. Federal Travel Regulations (41 CFR
parts 300 through 304), 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 reimbursable only if the
exhibit or show is included on the list of approved U.S. exhibits and
shows announced via a program notice issued on FAS' website and the
exhibit or show is one that the Participant has not participated in
within the last three years using funds from a source other than the
MAP. Retail, trade, and consumer exhibits and shows held inside the
United States may be considered for inclusion on the list of approved
exhibits and shows if they are:
(A) A food or agricultural exhibit or show with no less than 30% of
exhibitors selling food or agricultural products; and
(B) An international exhibit or show that targets buyers,
distributors, and the like from more than one foreign country and no
less than 15% of its visitors are from countries other than the host
country.
(ii) 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. 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 MAP
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 MAP
Participant shall provide documentation establishing such average of
the full fare economy class rates to support its reimbursement claim.
(iii) In very limited circumstances, the MAP 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). Such circumstances
are:
(A) Regularly scheduled flights between the origin and destination
points do not offer economy class (or equivalent) airfare and the MAP
Participant receives written documentation 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; or
(C) An 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 and ending with the scheduled arrival
time, including stopovers and changes of planes, exceeds 14 hours. In
such cases, 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.)
[[Page 1739]]
immediately following the date of arrival. A stopover 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. All travel 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;
(iv) Alternatively, in lieu of reimbursing up to the business class
rate in such circumstances, 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;
(9) Automobile mileage at the local U.S. Embassy rate or rental
cars while in travel status;
(10) Other allowable expenditures while in travel status as
authorized by the U.S. Federal Travel Regulations (41 CFR parts 300
through 304);
(11) Organization costs for overseas offices approved in
agreements. Such costs include incorporation fees, brokers' fees, fees
to attorneys, accountants, or investment counselors, whether or not
employees of the organization, incurred in connection with the
establishment or reorganization of the overseas office, and rent,
utilities, communications originating overseas, office supplies,
accident liability insurance premiums (provided the types and extent
and cost of coverage are in accordance with the MAP Participant's
policy and sound business practice), and routine accounting and legal
services required to maintain the overseas office;
(12) With prior CCC approval, the purchase, lease, or repair of, or
insurance premiums for, capital goods that have an expected useful life
of at least one year, such as furniture, equipment, machinery,
removable fixtures, draperies, blinds, floor coverings, computer
hardware and software, and portable electronic communications devices
(including mobile phones, wireless email devices, and personal digital
assistants);
(13) Such premiums for health or accident insurance and other
benefits for foreign national employees that the employer is required
by law to pay, provided that such benefits are granted under
established written policies;
(14) Accident liability insurance premiums for facilities used
jointly with third-party participants for MAP activities or for MAP-
funded travel of third-party participants, provided the types and
extent and cost of coverage are in accordance with the MAP
Participant's policy and sound business practice;
(15) Market research, including research to determine the types of
products that are desired in a market;
(16) Independent evaluations and audits, if not otherwise required
by CCC, to ensure compliance with program requirements;
(17) Legal fees to obtain advice on the host country's labor laws;
(18) Employment agency fees;
(19) STRE incurred outside of the United States, and STRE incurred
in conjunction with an approved activity taking place within the United
States with prior written approval from CCC. MAP Participants are
required to use the appropriate American Embassy representational
funding guidelines for breakfasts, lunches, dinners, and receptions.
MAP Participants may exceed Embassy guidelines only when they have
received written authorization from the FAS Attach[eacute]/Counselor at
the Embassy. The amount of unauthorized STRE expenses that exceed the
guidelines will not be reimbursed. MAP Participants must pay the
difference between the total cost of STRE events and the appropriate
amount as determined by the guidelines. For STRE incurred in the United
States, the MAP Participant should provide, in its request for
approval, the basis for determining its proposed expenses;
(20) Evacuation payments (safe haven) and shipment and storage of
household goods and motor vehicles for relocations lasting at least 12
months;
(21) U.S. office(s) administrative support expenses for the
National Association of State Departments of Agriculture, the SRTGs,
and the Intertribal Agriculture Council;
(22) Non-travel expenditures associated with conducting
international staff conferences held either in or outside the United
States;
(23) Subject to paragraph (b)(18) of this section, domestic travel
expenditures, as allowed under the U.S. Federal Travel Regulations (41
CFR parts 300 through 304), for international retail, trade, and
consumer exhibits and shows conducted in the United States. Domestic
travel expenses to such a show or exhibit are covered only if the
exhibit or show is included on the list of approved U.S. exhibits and
shows announced via a program notice issued on FAS' website and the
exhibit or show is one that the Participant has not participated in
within the last three years using funds from a source other than the
MAP. Retail and trade exhibits and shows held inside the United States
may be considered for inclusion on the list of approved exhibits and
shows if they are:
(i) A food or agricultural exhibit or show with no less than 30% of
exhibitors selling food or agricultural products; and
(ii) An international exhibit or show that targets buyers,
distributors, and the like from more than one foreign country and no
less than 15% of its visitors are from countries other than the host
country;
(24) Domestic travel expenditures, as allowed under the U.S.
Federal Travel Regulations (41 CFR parts 300 through 304), for seminars
and educational training conducted in the United States;
(25) Domestic travel expenditures, as allowed under the U.S.
Federal Travel Regulations (41 CFR parts 300 through 304), for one home
office MAP Participant employee, one MAP Participant board member, or a
state department of agriculture employee paid by the MAP Participant,
when such individual accompanies 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 MAP Participant's UES;
(ii) Such trade missions or technical team visits have been
approved by CCC; and
(iii) The MAP-sponsored traveler submits a follow-up trip report to
CCC that includes the following:
(A) Purpose for the individual's participation;
(B) Any pre-arranged business meetings;
(C) Itinerary and/or agenda for the trip; and
(D) Feedback from sponsors and trade mission/technical team members
on the success of the trip.
(26) Approved demonstration projects;
(27) Expenditures related to copyright, trademark, or patent
registration, including attorney fees;
(28) Rental or lease expenditures for storage space for program-
related materials;
(29) Business cards that target a foreign audience;
(30) Expenditures associated with developing, updating, and
servicing
[[Page 1740]]
websites on the internet that: Contain a message related to exporting
or international trade, include a discernible ``link'' to the FAS/
Washington homepage or an FAS overseas homepage, and have been
specifically approved by FAS. Expenditures related to websites or
portions of websites that are accessible only to an organization's
members are not reimbursable. Reimbursement claims for websites that
include any sort of ``members only'' sections must be prorated to
exclude the costs associated with those areas subject to restricted
access;
(31) 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 technical barriers to trade that prohibit or
threaten U.S. exports of agricultural commodities;
(32) Membership fees in professional, industry-related
organizations;
(33) Travel costs for dependents, as allowed in 2 CFR part 200
(e.g., for travel of duration of six months or more with prior approval
of CCC);
(34) That portion of airtime for wireless phones that is devoted to
program activities and monthly service fees prorated at the proportion
of program-related airtime to total airtime; and
(35) Production and distribution of publications.
(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, judgments, or payments relating
to legal suits, challenges, or disputes, except as otherwise allowed in
2 CFR part 200;
(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;
(5) Product samples;
(6) Slotting fees or similar sales expenditures;
(7) The purchase, construction, or lease of space for permanent,
non-mobile displays, i.e., displays that are constructed to remain
permanently in the same location beyond one program year. However, 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 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 promoted commodity;
(10) Refundable deposits or advances;
(11) Giveaways, awards, prizes, gifts, and other similar
promotional materials in excess of the limitation that CCC will
determine. Such determination will be announced in writing via a
program notice issued on FAS' website;
(12) Alcoholic beverages that are not a promoted commodity and 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 CCC determines that
such a review is needed in order to confirm past or to ensure future
agreement or regulatory compliance;
(17) Any arrangement that has the effect of reducing the selling
price of an agricultural commodity;
(18) Goods, services, and salaries of personnel provided by a 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, shows, 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 MAP Participant;
(26) U.S. office(s) administrative expenses, including
communication costs, except as noted in paragraph (c)(21) of this
section and except that usage costs for communications devices incurred
while on reimbursable international or domestic travel for approved MAP
brand or generic promotion activities are reimbursable as eligible
travel expenditures as allowed under the U.S. Federal Travel
Regulations (41 CFR parts 300 through 304);
(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, except where a foreign country's laws require the
MAP Participant to pay such employees' or contractors' share;
(29) Any expenditure made for an activity prior to 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;
(31) Credit card fees;
(32) Entertainment, e.g., amusements, diversions, cover charges,
personal gifts, or tickets to theatrical or sporting events;
(33) Refreshments, or related equipment, for office staff; and
(34) Expenditures associated with a MAP Participant's creation or
review of their fraud prevention program, contracting procedures, or
brand program operational procedures.
(e) Paragraphs (e)(1) through (4) of this section shall apply to
the approval of Supergrades.
(1) With respect to individuals who are not U.S. citizens and who
are hired by MAP Participants either as employees or contractors acting
as employees, CCC will not ordinarily reimburse any portion of such
individual's compensation that exceeds the compensation prescribed for
the most comparable position in the FSN salary plan applicable to the
country in which the employee or contractor works. However, a MAP
Participant may seek a higher level of reimbursement for a non-U.S.
citizen employee or contractor who will be employed as a country
director or regional director by requesting that CCC approve that
employee or contractor as a Supergrade.
(2) To request approval of a Supergrade, the MAP Participant shall
provide CCC with a detailed description of both the duties and
responsibilities of the position and the qualifications and background
of the employee or contractor concerned. The Participant shall also
justify why the comparable FSN salary level is insufficient.
(3) Where a non-U.S. citizen employee or contractor will be
employed as a country director, the MAP Participant may request
approval for a ``Supergrade I'' salary level, equivalent to a single
grade increase over the existing top grade of the FSN salary plan. The
Supergrade I and its step increases are calculated by increasing each
of the steps in the top FSN grade by the percentage difference between
the second highest and the
[[Page 1741]]
highest grade in the FSN salary plan. Where the non-U.S. citizen
employee or contractor will be employed as a regional director, with
responsibility for activities and/or offices in more than one country,
the MAP Participant may request approval for a ``Supergrade II'' salary
level, which is calculated relative to a Supergrade I in the same way
the latter is calculated relative to the highest grade in the FSN
salary plan.
(4) A U.S. citizen with dual citizenship with another foreign
country or countries shall not be considered a non-U.S. citizen.
(f) For a brand promotion activity, CCC will reimburse no more than
50 percent of the total eligible expenditures made on that activity.
(g) CCC will reimburse for expenditures made after the conclusion
of a MAP Participant's program year provided:
(1) The activity was approved by CCC prior to the end of the
program year;
(2) The activity was completed within 30 calendar days following
the end of the program year; and
(3) All expenditures were made for the activity within 6 months
following the end of the program year.
(h) A MAP Participant shall not use MAP funds for any activity, or
any expenses incurred by the MAP Participant prior to the date
specified in the approval letter or after the date the agreement is
suspended or terminated, except as otherwise permitted by CCC.
(i) Except as otherwise provided in this subpart, MAP-funded travel
shall conform to the U.S. Federal Travel Regulations (41 CFR parts 300
through 304) and 2 CFR part 200, and MAP-funded air travel shall
conform to the requirements of the Fly America Act (49 U.S.C. 40118).
The MAP Participant shall notify the Attach[eacute]/Counselor in the
destination country(ies) in writing in advance of any proposed travel.
The timing of such notice should be far enough in advance to enable the
Attach[eacute]/Counselor to schedule appointments, make preparations,
or otherwise provide any assistance being requested. Failure to provide
advance notification of travel generally will result in disallowance of
the expenses related to the travel, unless CCC determines it was
impractical to provide such notification.
(j) CCC may determine, at CCC's discretion, whether any cost not
expressly listed in this section will be reimbursed.
Sec. 1485.18 Reimbursement procedures.
(a) Following the implementation of a project for which CCC has
agreed to provide funding, a Participant may submit claims for
reimbursement of eligible expenses incurred in implementing MAP
activities, to the extent that CCC has agreed to pay such expenses. Any
changes to approved activities must be approved in writing by CCC
before any reimbursable expenses associated with the change can be
incurred. A Participant will be reimbursed after CCC reviews the claim
and determines that it is complete.
(b) All claims for reimbursement shall be submitted by the MAP
Participant's U.S. office to CCC. CCC will make all payments to
Participants in U.S. dollars. FAS will initiate payment within 30 days
after receipt of the billing, unless the billing is improper.
(c) Participants will be authorized to submit requests for
reimbursement or advance at least monthly when electronic fund
transfers (EFTs) are not used, and as frequently as desired when
electronic transfers are used, in accordance with the provisions of the
Electronic Fund Transfer Act (15 U.S.C. 1693-1693r).
(d) CCC will not reimburse claims submitted later than 6 months
after the end of a MAP Participant's program year.
(e) If CCC overpays a reimbursement claim, the MAP Participant
shall repay CCC within 30 calendar days of such overpayment the amount
of the overpayment either by submitting a check payable to CCC or by
offsetting its next reimbursement claim. The MAP Participant shall make
such payment in U.S. dollars, unless otherwise approved in advance by
CCC.
(f) If a MAP Participant receives a reimbursement or offsets an
advanced payment which is later disallowed, the MAP Participant shall
repay CCC within 30 calendar days of such disallowance the amount
disallowed either by submitting a check payable to CCC or by offsetting
its next reimbursement claim. The MAP Participant shall make such
payment in U.S. dollars, unless otherwise approved in advance by CCC.
(g) MAP funds may be expended by MAP Participants only on
legitimate, approved activities as set forth in the agreement and
approval letter. If a MAP Participant discovers that MAP funds have not
been properly spent, it shall notify CCC and shall within 30 calendar
days of its discovery repay CCC the amount owed either by submitting a
check payable to CCC or by offsetting its next reimbursement claim. The
MAP Participant shall make such payment in U.S. dollars, unless
otherwise approved in advance by CCC.
(h) The MAP Participant shall report any actions that may have a
bearing on the propriety of any claims for reimbursement in writing to
the appropriate Attach[eacute]/Counselor and its U.S. office shall
report such actions in writing to the appropriate FAS Division
Director.
Sec. 1485.19 Advances.
(a) Policy. In general, CCC operates the MAP on a reimbursable
basis.
(b) Exception. A MAP Participant may request an advance of MAP
funds from CCC for generic promotion activities, provided the MAP
Participant meets the criteria for advance payments in 2 CFR part 200.
CCC will not approve any request for an advance submitted after the end
of a MAP Participant's program year. At any given time, total payments
advanced shall not exceed 40 percent of a MAP Participant's total
approved generic activity budget for the program year. CCC will not
advance funds to a MAP Participant for brand promotion activities. When
approving a request for an advance, CCC may require the MAP 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 MAP. 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 the MAP, 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. A MAP Participant shall deposit and maintain all
funds advanced by CCC in an insured account in the United States. The
account shall be interest-bearing, unless the exceptions in 2 CFR part
200 apply. Interest earned by the MAP Participant on funds advanced by
CCC is not program income. Up to $500 of interest earned per year may
be retained by the MAP Participant for administrative expenses. Any
additional interest earned on MAP advances shall be remitted annually
to the appropriate entity as required in 2 CFR part 200.
(d) Refunds due CCC. A MAP Participant shall fully expend all
advances on approved generic promotion activities within 90 calendar
days after the date of disbursement by CCC. By the end of the 90
calendar days, the MAP Participant must submit reimbursement claims to
offset the advance and submit a check made payable to CCC for any
unexpended balance. The MAP Participant shall make such payment in U.S.
dollars, unless otherwise approved in advance by CCC.
[[Page 1742]]
Sec. 1485.20 Employment practices.
(a) A MAP Participant shall enter into written contracts with all
overseas employees who are paid in whole or in part with MAP funds and
shall ensure that all terms, conditions, and related formalities of
such contracts conform to governing local law.
(b) A MAP Participant shall, in its overseas offices, conform its
office hours, work week, and holidays to local law and to the custom
generally observed by U.S. commercial entities in the local business
community.
(c) A MAP Participant may pay salaries or fees in any currency
(U.S. or foreign) in conformance with contract specifications.
Participants should consult local laws regarding currency restrictions.
Sec. 1485.21 Financial management.
(a) A MAP Participant shall implement and maintain a financial
management system that conforms to generally accepted accounting
principles and complies with the standards in 2 CFR part 200.
(b) A MAP Participant shall institute internal controls and provide
written guidance to commercial entities participating in its activities
to ensure their compliance with these regulations.
(c) A MAP Participant shall retain all records concerning a MAP
program transaction for a period of five years after completion of the
transaction and permit authorized officials of the U.S. Government to
have full and complete access, for such five-year period, to such
records. These records shall include all documents related to
employment of any employees whose salaries are reimbursed in whole or
in part with MAP funds, whether such employees are based in the United
States or overseas, such as employment applications, contracts,
position descriptions, leave records, salary changes, and all records
pertaining to contractors.
(d) A MAP Participant shall also maintain adequate documentation
related to the proper disposition of all personal property having a
useful life of more than one year and an acquisition cost of $500 or
more purchased by the Participant and for which the Participant is
reimbursed, in whole or in part, with MAP funds.
(e) A MAP Participant shall maintain its records of expenditures,
contributions, and cost share in a manner that allows it to provide
information by program year, activity plan, country or region (as
applicable), activity number, and cost category. Such records shall
include copies of:
(1) Receipts for all STRE (actual vendor invoices or restaurant
checks, rather than credit card receipts);
(2) Receipts for any other program-related expenditure in excess of
a minimum level that CCC shall determine and announce in writing to all
MAP Participants via a program notice issued on the FAS website.
Receipts for all actual M&IE reimbursements must be maintained,
regardless of the amount;
(3) The exchange rate used to calculate the dollar equivalent of
expenditures made in a foreign currency and the basis for such
calculation;
(4) Reimbursement claims;
(5) An itemized list of claims charged to each of the MAP
Participant's MAP accounts;
(6) Documentation, with accompanying English translation,
supporting each reimbursement claim, including evidence to support the
financial transactions, such as canceled checks, receipted paid bills,
contracts, purchase orders, per diem calculations, travel vouchers, and
credit memos; and
(7)(i) Each MAP Participant must keep records documenting all
claimed contributions and cost share, to include:
(A) Copies of invoices or receipts for expenses paid by the U.S.
industry or State agency and not reimbursed by the MAP Participant for
the joint activity, or
(B) If invoices are not available, an itemized statement from the
U.S. industry or State agency as to what costs it incurred pursuant to
the joint activity, or
(C) If neither of the foregoing is available, a statement from the
U.S. industry or State agency as to what goods and services it
provided, or
(D) If none of the foregoing are available, a memo to the files of
the MAP Participant's estimate of what contribution or cost share was
made by the U.S. industry or State agency, item by item, and the method
used to assign a value to each.
(ii) The documentation required in paragraph (e)(7)(i) of this
section must include the dates, purpose, and location of the activity
for which the cash or in-kind items were claimed as a contribution or
cost share, who conducted the activity, the participating groups or
individuals, and the method of computing the claimed contribution or
cost share. MAP Participants must retain and make available for
compliance reviews and audits documentation related to claimed
contribution or cost share.
(f) Upon request, a MAP Participant shall provide documents
supporting reimbursement claims to CCC. CCC may deny a claim for
reimbursement if the claim is not supported by adequate documentation.
Sec. 1485.22 Reports.
(a) Participants are required to submit regular financial and
performance reports in accordance with their agreement. Reporting
requirements and formats for the required financial and performance
reports will be specified in the agreement between CCC and the
Participant.
(b)(1) In addition to the information required in 2 CFR
200.328(b)(2), a Participant's performance reports must include
pertinent information regarding the Participant's progress, measured
against established indicators, baselines, and targets, towards
achieving the expected results specified in the agreement. This
reporting must include, for each performance indicator, a comparison of
actual accomplishments with the baseline and the targets established
for the period. When actual accomplishments deviate significantly from
targeted goals, the Participant must provide an explanation in the
report.
(2) A Participant must ensure the accuracy and reliability of the
performance data submitted to FAS in performance reports. At any time
during the period of performance of the agreement, FAS may review the
Participant's performance data to determine whether it is accurate and
reliable. The Participant must comply with all requests made by FAS or
an entity designated by FAS in relation to such reviews.
(c) All final performance reports will be made available to the
public.
(d) Not later than 45 calendar days after the completion of travel
(other than local travel), a MAP Participant shall submit a trip
report. The report must be submitted to the appropriate Attach[eacute]/
Counselor(s) and 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.
(e) Not later than 90 calendar days after the end of its program
year, a MAP Participant shall submit a report on any research conducted
pursuant to the approved MAP program.
(f) If requested by FAS, a Participant must provide to FAS
additional information or reports relating to the agreement.
(g) If a Participant requires an extension of a reporting deadline,
it must ensure that FAS receives an extension request at least five
business days prior to the reporting deadline. FAS may decline to
consider a request
[[Page 1743]]
for an extension that it receives after this time period. FAS will
consider requests for reporting deadline extensions on a case by case
basis and will make a decision based on the merits of each request. FAS
will consider factors such as unforeseen or extenuating circumstances
and past performance history when evaluating requests for extensions.
Sec. 1485.23 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 MAP.
Evaluation of the MAP's effectiveness will depend on a clear statement
by Participants of the constraints and opportunities facing U.S.
exports, 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 MAP and of individual Participants' programming is to
achieve or maintain sales that would not have occurred in the absence
of MAP funding. A MAP 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 a MAP
Participant's program, contribute to program accountability, and
provide evidence of program effectiveness.
(b) A MAP Participant shall complete at least one program
evaluation each year. A program evaluation is a review of the MAP
Participant's entire program, or an appropriate portion of the program
as agreed to by the MAP Participant and CCC, to determine the
effectiveness of the MAP Participant's strategy in meeting specified
goals. The actual scope and timing of the program evaluation shall be
determined by the MAP Participant and CCC and specified in the approval
letter. A MAP Participant may contract with an independent evaluator to
satisfy this requirement, although CCC reserves the right to have
direct input and control over the design, scope, and methodology of any
such evaluation, including direct contact with and provision of
guidance to the independent evaluator. A MAP 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 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 additional export sales achieved, including
the ratio of additional export sales in relation to the MAP
Participant's program funding received;
(6) A summary of the findings, including an analysis of the
strengths and weaknesses of the program(s); and
(7) Recommendations for future programs.
(c) MAP 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 MAP program. This evaluation shall be completed and submitted
to CCC no later than 6 months following the end of the Participant's
program year.
(d) On an annual basis, or more often when appropriate or required
by CCC, a MAP Participant shall complete and submit program success
stories. CCC will announce to all MAP Participants the detailed
requirements for completing and submitting program success stories.
Sec. 1485.24 Compliance reviews and notices.
(a) USDA staff may conduct compliance reviews of the Participant's
activities under this program to ensure compliance with this subpart,
applicable Federal laws and regulations, and the terms of the
agreements and approval letters. Participants shall cooperate fully
with relevant USDA staff conducting compliance reviews and shall comply
with all requests from USDA staff to facilitate the conduct of such
reviews. Program funds spent inappropriately or on unapproved
activities must be returned to CCC.
(b) Any project or activity funded under the program is subject to
review or audit at any time during the course of implementation or
after the completion of the project.
(c) Upon conclusion of the compliance review, USDA staff will
provide a written compliance report to the Participant. The compliance
report will detail any instances where it appears that the Participant
is not complying with any of the terms or conditions of the agreement,
approval letter, or the applicable laws and regulations. The report
will also specify if it appears that CCC may be entitled to recover
funds from the Participant and will explain the basis for any recovery
of funds from the Participant. If, as a result of a compliance review,
CCC determines that further review is needed in order to ensure
compliance with the requirements of the program, CCC may require the
Participant to contract for an independent audit.
(d) In addition, CCC may notify a Participant in writing at any
time if CCC determines that CCC may be entitled to recover funds from
the Participant. CCC will explain the basis for any recovery of funds
from the Participant in the written notice. The Participant shall,
within 30 calendar days of the date of the notice, repay CCC the amount
owed either by submitting a check payable to CCC or by offsetting its
next reimbursement claim. The Participant shall make such payment in
U.S. dollars, unless otherwise approved in advance by CCC. If, however,
a Participant notifies CCC within 30 calendar days of the date of the
written notice that the Participant intends to file an appeal pursuant
to the provisions of this subpart, the amount owed to CCC by the
Participant is not due until the appeal procedures are concluded and
CCC has made a final determination as to the amount owed.
(e) The fact that a compliance review has been conducted by USDA
staff does not signify that a Participant is in full compliance with
its agreement, approval letter, and/or applicable laws and regulations.
(f) For a Participant response to compliance report:
(1) A Participant shall, within 60 calendar days of the date of the
issuance of a compliance report, submit a written response to CCC. The
response may include additional documentation for consideration or a
request for reconsideration of any finding along with supporting
justification. If the Participant does not wish to contest the
compliance report, the response shall include any money owed to CCC,
which may be returned by submitting a check payable to CCC or by
offsetting a reimbursement claim. The Participant shall make any
payments in U.S. dollars, unless otherwise approved in advance by CCC.
CCC, at its discretion, may extend the period for response.
[[Page 1744]]
(2) After reviewing the response, CCC shall determine whether the
Participant owes any funds to CCC and will inform the Participant in
writing of the basis for the determination. CCC may 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.
(g) For Participant appeals of CCC determinations:
(1) Within 30 calendar days of the date of the issuance of a
determination, the Participant may appeal the determination by making a
request in writing that includes the basis for such reconsideration.
The Participant may also request a hearing.
(2) If the Participant requests a hearing, 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, CCC may, at its discretion, have a
transcript prepared at CCC's expense.
(3) 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 CCC.
Sec. 1485.25 Failure to make required contribution or cost share.
A MAP Participant's required contribution or cost share will be
specified in the approval letter. If the MAP Participant's required
contribution or cost share is specified as a dollar amount and the MAP
Participant does not make the required contribution or cost share, the
MAP Participant shall pay to CCC in dollars the difference between the
amount actually contributed and the amount specified in the approval
letter. If the MAP Participant's required contribution or cost share is
specified as a percentage of the total amount reimbursed by CCC, the
MAP Participant may either return to CCC the necessary amount of funds
reimbursed by CCC to increase its actual contribution or cost share
percentage to the required level or pay to CCC in dollars the
difference between the amount actually contributed and the amount of
funds necessary to increase its actual contribution or cost share
percentage to the required level. A MAP Participant shall remit such
payment within six months after the end of its program year. The MAP
Participant shall make such payment in U.S. dollars, unless otherwise
approved in advance by CCC.
Sec. 1485.26 Submissions.
For all permissible methods of delivery, submissions required by
this subpart shall be deemed submitted as of the date received by CCC.
Sec. 1485.27 Disclosure of program information.
(a) Documents submitted to CCC by MAP Participants are subject to
the provisions of the Freedom of Information Act (FOIA), 5 U.S.C. 552,
7 CFR part 1, subpart A, and specifically 7 CFR 1.12.
(b) Upon request, a Participant shall provide to any person a copy
of any document in its possession or control containing market
information developed and produced under the terms of its agreement.
The Participant may charge a fee not to exceed the costs for
assembling, duplicating, and distributing the materials.
(c) Any research conducted by a MAP Participant pursuant to an
agreement and/or approval letter shall be subject to the provisions
relating to intangible property in 2 CFR part 200.
Sec. 1485.28 Ethical conduct.
(a) A MAP Participant shall conduct its business in accordance with
the laws and regulations of the country(s) in which an activity is
carried out and in accordance with applicable U.S. Federal, state, and
local laws and regulations. A MAP Participant shall conduct its
business in the United States in accordance with applicable Federal,
state, and local laws and regulations.
(b) Except for a U.S. agricultural cooperative or a U.S. for-profit
entity, neither a MAP Participant nor its affiliates shall make export
sales of eligible commodities covered under the terms of the applicable
MAP agreement. Nor shall such entities charge a fee for facilitating an
export sale. A MAP Participant may, however, collect check-off funds
and membership fees that are required for membership in the MAP
Participant's organization.
(c) A MAP Participant shall not limit participation in its MAP
activities to members of its organization. Participants shall ensure
that their MAP-funded 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 MAP 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 MAP 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 U.S.
agricultural cooperatives when implementing their own brand program.
(d) A MAP Participant shall select U.S. agricultural industry
representatives to participate in generic MAP 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 CCC, a MAP Participant shall submit such
selection criteria to CCC for approval.
(e) All MAP Participants should endeavor to ensure fair and
accurate fact-based advertising. Deceptive or misleading promotions may
result in cancellation or termination of a MAP Participant's agreement
and the recovery of CCC funds related to such promotions from the
Participant.
(f) The MAP Participant must report any actions or circumstances
that may have a bearing on the propriety of its MAP program to the
appropriate Attach[eacute]/Counselor, and its U.S. office shall report
such actions or circumstances in writing to CCC.
Sec. 1485.29 Subawarding procedures.
(a) MAP Participants have full and sole responsibility for the
legal sufficiency of all contracts and assume financial liability for
any costs or claims resulting from suits, challenges, or other disputes
based on contracts entered into by the MAP Participant. Neither CCC nor
any other agency of the U.S. Government nor any official or employee of
CCC, FAS, USDA, or the U.S. Government has any obligation or
responsibility with respect to MAP Participant contracts with third
parties.
(b) A MAP Participant shall comply with the procurement standards
set forth below and in 2 CFR part 200 when procuring goods and services
and when engaging in construction to implement agreements.
(c) Each MAP Participant shall establish open, fair, and
competitive contracting procedures for contracts that are funded, in
whole or in part, with MAP funds.
(d) Each MAP Participant shall submit to CCC, for CCC approval,
written contracting guidelines for contracts that are funded, in whole
or in part, with MAP funds. CCC will notify all new and existing MAP
Participants in writing in
[[Page 1745]]
each Participant's approval letter and through the FAS website as to
applicable submission dates for and dates for approvals of contracting
guidelines. CCC's approval of such contracting guidelines will remain
in place until CCC retracts its approval in writing, or until new
guidelines are approved that supersede them. Once approved by CCC,
these contracting guidelines shall govern all of a Participant's MAP-
funded contracting involving contracts with an annual minimum value
that CCC shall determine and announce in writing to all MAP
Participants via a program 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 MAP
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 MAP 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, or agent's family, partners, or an organization that employs
or is about to employ any of these parties or their affiliates has a
financial or other interest in the contract. 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; sole source contracts; solicitations that
yield receipt of three or more bids; or 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. MAP 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 3 years on all multi-year contracts that are governed by the
contracting guidelines. However, contracts for in-country
representation are not required to be re-competed after the initial
reward. Instead, the performance of in-country representation must be
evaluated and documented by the MAP 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 provided to
them by the MAP Participant.
(e) A MAP Participant may undertake MAP promotional activities
directly or through a domestic or foreign subrecipient. However, the
MAP Participant shall remain responsible and accountable to CCC for all
MAP promotional activities and related expenditures undertaken by such
subrecipient and shall be responsible for reimbursing CCC for any funds
that CCC determines should be refunded to CCC in relation to such
subrecipient's promotional activities and expenditures.
Sec. 1485.30 Property standards.
(a) A Participant shall maintain an inventory of all personal
property having a useful life of more than one year and an acquisition
cost of $500 or more that was acquired in furtherance of program
activities. The inventory shall list and number each item and include
the date of purchase or acquisition, cost of purchase, replacement
value, serial number, make, model, and electrical requirements, as
applicable.
(b) The Participant shall insure all real property and equipment
that was acquired, in whole or in part, with MAP funds at a level
minimally equal to the equivalent insurance coverage for property owned
by the Participant. The Participant shall safeguard such property and
equipment against theft, damage, and unauthorized use. The Participant
shall promptly report any loss, theft, or damage of such property and
equipment to the insurance company.
(c) Personal property having a useful life of more than one year
and an acquisition cost of $500 or more purchased by the Participant,
and for which the Participant is reimbursed, in whole or in part, with
MAP funds, that is unusable, unserviceable, or no longer needed for
project purposes shall be disposed of in one of the following ways. The
Participant may:
(1) Exchange or sell the property, provided that it applies any
exchange allowance, insurance proceeds, or sales proceeds toward the
purchase of other property needed in the project;
(2) With CCC approval, transfer the property to other Participants
for their activities, or to a foreign entity; or
(3) Upon Attach[eacute]/Counselor approval, donate the property to
a local charity, or convey the property to the Attach[eacute]/
Counselor, along with an itemized inventory list and any documents of
title.
(d) The Participant is responsible for reimbursing CCC for the
value of any uninsured property at the time of the loss or theft of the
property.
Sec. 1485.31 Anti-fraud requirements.
(a) All MAP Participants. (1) All MAP Participants annually shall
submit to CCC for approval a detailed fraud prevention program. CCC
will notify all new and existing MAP 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. MAP Participants should review their fraud
prevention programs
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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 MAP Participant shall not conduct or permit any
MAP promotion activities to occur unless and until CCC has communicated
in writing approval of the MAP Participant's fraud prevention program.
(2) The MAP 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 agreement and/or approval
letter. The MAP 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 CCC or USDA to the
MAP Participant for the prompt investigation of such allegation or
occurrence.
(b) MAP Participants with brand programs. (1) The MAP Participant
may charge a fee to brand participants to cover the cost of the fraud
prevention program.
(2) The MAP Participant shall repay to CCC funds paid to a brand
participant through the MAP Participant on claims that the MAP
Participant or CCC subsequently determines are unauthorized or
otherwise non-reimbursable expenses within 30 calendar days of the MAP
Participant's determination or CCC's disallowance. The MAP Participant
shall repay CCC by submitting a check to CCC or by offsetting the MAP
Participant's next reimbursement claim. The MAP Participant shall make
such payment in U.S. dollars, unless otherwise approved in advance by
CCC. A MAP Participant operating a brand program in strict accordance
with an approved fraud prevention program, however, will not be liable
to reimburse CCC for MAP funds paid on such claims if the claims were
based on misrepresentations or fraud of the brand participant, its
employees, or agents, unless CCC determines that the MAP Participant
was grossly negligent in the operation of the brand program regarding
such claims. CCC shall communicate any such determination to the MAP
Participant in writing.
Sec. 1485.32 Program income.
Program income is gross income earned by the non-Federal entity
that is directly generated by a supported activity or earned as a
result of the Federal award during the period of performance. Any
income generated from an activity, the expenditures for which have been
wholly or partially reimbursed with MAP funds, shall be used by the MAP
Participant in furtherance of its approved MAP activities in the
program year during which the MAP funds are available for obligation by
the MAP Participant, or must be returned to CCC. The use of such income
shall be governed by this subpart. Interest earned on funds advanced by
CCC is not program income. Reasonable activity fees or registration
fees, if identified as such in a project budget, may be charged for
approved activities. The intent to charge a fee must be part of the
original proposal, along with an explanation of how such fees are to be
used. Any activity fees charged must be used to offset activity
expenses or returned to FAS. Such fees may not be used as profit or
counted as contribution or cost share.
Sec. 1485.33 Amendments.
An agreement may be amended in writing with the consent of CCC and
the MAP Participant. All requests for program amendments must be
submitted to CCC in writing and contain a justification for why the
amendment is necessary. All amendment requests must be reviewed and
approved by CCC before an amendment can be issued.
Sec. 1485.34 Subrecipients.
(a) A Participant may utilize the services of a subrecipient to
implement activities under the agreement if this is provided for in the
agreement. The subrecipient may receive CCC-provided funds, program
income, or other resources from the Participant for this purpose. The
Participant must enter in to a written subaward with the subrecipient
and comply with the applicable provisions of 2 CFR 200.331 and/or the
Federal Acquisition Regulation (FAR), if applicable. If required by the
agreement, the Participant must provide a copy of such subaward to FAS,
in the manner set forth in the agreement, prior to the transfer of CCC-
provided funds or program income to the subrecipient.
(b) A Participant must include the following requirements in a
subaward:
(1) The subrecipient is required to comply with the applicable
provisions of this part and 2 CFR parts 200 and 400 and/or the FAR, if
applicable. The applicable provisions are those that relate
specifically to subrecipients, as well as those relating to non-Federal
entities that impose requirements that would be reasonable to pass
through to a subrecipient because they directly concern the
implementation by the subrecipient of one or more activities under the
agreement. If there is a question about whether a particular provision
is applicable, FAS will make the determination.
(2) The subrecipient must pay to the Participant the value of CCC-
provided funds, interest, or program income that are not used in
accordance with the subaward, or that are lost, damaged, or misused as
a result of the subrecipient's failure to exercise reasonable care.
(3) In accordance with 2 CFR 200.501(h), subawards must include a
description of the applicable compliance requirements and the
subrecipient's compliance responsibility. Methods to ensure compliance
may include pre-award audits, monitoring during the agreement, and
post-award audits.
(c) A Participant must monitor the actions of a subrecipient as
necessary to ensure that CCC-provided funds and program income provided
to the subrecipient are used for authorized purposes in compliance with
applicable U.S. Federal laws and regulations and the subaward and that
performance indicator targets are achieved for both activities and
results under the agreement.
Sec. 1485.35 Audit requirements.
(a) Subpart F of 2 CFR part 200 applies to all Participants and
subrecipients under this part other than those that are for-profit
entities, foreign public entities, or foreign organizations.
(b) A Participant or subrecipient that is a for-profit entity or a
subrecipient that is a foreign organization and that expends, during
its fiscal year, a total of at least the audit requirement threshold in
2 CFR 200.501 in Federal awards, is required to obtain an audit. Such a
Participant or subrecipient has the following two options to satisfy
this requirement:
(1)(i) A financial audit of the agreement or subaward, in
accordance with the Government Auditing Standards issued by the United
States Government Accountability Office (GAO), if the Participant or
subrecipient expends Federal awards under only one FAS program during
such fiscal year; or
(ii) A financial audit of all Federal awards from FAS, in
accordance with GAO's Government Auditing Standards, if the Participant
or subrecipient expends Federal awards under multiple
[[Page 1747]]
FAS programs during such fiscal year; or
(2) An audit that meets the requirements contained in subpart F of
2 CFR part 200.
(c) A Participant or subrecipient that is a for-profit entity or a
subrecipient that is a foreign organization and that expends, during
its fiscal year, a total that is less than the audit requirement
threshold in 2 CFR 200.501 in Federal awards, is exempt from
requirements under this section for an audit for that year, except as
provided in paragraphs (d) and (f) of this section, but it must make
records available for review by appropriate officials of Federal
agencies.
(d) FAS may require an annual financial audit of an agreement or
subaward when the audit requirement threshold in 2 CFR 200.501 is not
met. In that case, FAS must provide funds under the agreement for this
purpose, and the Participant or subrecipient, as applicable, must
arrange for such audit and submit it to FAS.
(e) When a Participant or subrecipient that is a for-profit entity
or a subrecipiet that is a foreign organization is required to obtain a
financial audit under this section, it must provide a copy of the audit
to FAS within 60 days after the end of its fiscal year.
(f) FAS, the USDA Office of Inspector General, or GAO may conduct
or arrange for additional audits of any Participants or subrecipients,
including for-profit entities and foreign organizations. Participants
and subrecipients must promptly comply with all requests related to
such audits. If FAS conducts or arranges for an additional audit, such
as an audit with respect to a particular agreement, FAS will fund the
full cost of such an audit, in accordance with 2 CFR 200.503(d).
Sec. 1485.36 Suspension and termination of agreements.
(a) An agreement or subaward may be suspended or terminated in
accordance with 2 CFR 200.338 or 200.339. FAS may suspend or terminate
an agreement if it determines that:
(1) One of the bases in 2 CFR 200.338 or 200.339 for termination or
suspension by FAS has been satisfied; or
(2) The continuation of the assistance provided under the agreement
is no longer necessary or desirable.
(b) If an agreement is terminated, the Participant:
(1) Is responsible for using or returning any CCC-provided funds,
interest, or program income that have not been disbursed, as agreed to
by FAS; and
(2) Must comply with any closeout and post-closeout procedures
specified in the agreement and 2 CFR 200.343 and 200.344.
Sec. 1485.37 Noncompliance with an agreement.
(a) If a MAP Participant fails to comply with any term in its
agreement or approval letter, CCC may take one or more of the
enforcement actions in 2 CFR part 200 and, if appropriate, initiate a
claim against the MAP Participant, following the procedures set forth
in this subpart. CCC may also initiate a claim against a MAP
Participant if program income or CCC-provided funds are lost due to an
action or omission of the MAP Participant. If any MAP Participant has
engaged in fraud with respect to the MAP, or has otherwise violated
program requirements under this subpart, CCC may:
(1) Hold such MAP Participant liable for any and all losses to CCC
resulting from such fraud or violation;
(2) Require a refund of any assistance provided to such MAP
Participant plus interest as determined by FAS; and
(3) Collect liquidated damages from such MAP Participant in an
amount determined appropriate by FAS.
(b) The provisions of this section shall be without prejudice to
any other remedy that is available under any other provision of law.
Sec. 1485.38 Paperwork reduction requirements.
The paperwork and recordkeeping requirements imposed by this
subpart have been approved by OMB under the Paperwork Reduction Act of
1980. OMB has assigned control number 0551-0026 for this information
collection.
Dated: December 6, 2019.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
In concurrence with:
Dated: December 6, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019-27965 Filed 1-10-20; 8:45 am]
BILLING CODE 3410-10-P