Market Access Program, 46027-46040 [E9-21552]

Agencies

• DEPARTMENT OF AGRICULTURE
• Commodity Credit Corporation

[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Proposed Rules]
[Pages 46027-46040]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21552]



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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1485

RIN 0551-AA72


Market Access Program

AGENCY: Foreign Agricultural Service and Commodity Credit Corporation, 
USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would revise and amend the regulations at 7 
CFR part 1485 used to administer the Market Access Program (MAP) by 
updating and merging the application requirements and the activity plan 
requirements to reflect the Unified Export Strategy (UES) system 
currently in place; clarifying the eligibility of activities designed 
to address international market access issues; modifying the list of 
eligible and ineligible contributions; revising the portions of the 
regulation regarding evaluations, contracting procedures, and the 
compliance review and appeals process; eliminating the Export Incentive 
Program/Market Access Program (EIP/MAP) as a separate subcomponent; and 
making other administrative changes for clarity and program integrity.

DATES: Comments concerning this proposed rule must be received by 
November 9, 2009 to be assured consideration.

ADDRESSES: Comments may be submitted by any of the following methods:
     Federal e-Rulemaking Portal: Go to https://www.regulations.gov. Follow the online instructions for submitting 
comments.
     E-Mail: podadmin@fas.usda.gov.
     Fax: (202) 720-9361.
     Hand Delivery or Courier: U.S. Department of Agriculture, 
Foreign Agricultural Service, Office of Trade Programs, Program 
Operations Division, Portals Office Building, Suite 400, 1250 Maryland 
Avenue, SW., Washington, DC 20024.
     U.S. Postal Delivery: U.S. Department of Agriculture, 
Foreign Agricultural Service, Office of Trade Programs, Program 
Operations Division, Stop 1023, 1400 Independence Avenue, SW., 
Washington, DC 20250-1042.
    Comments may be inspected in Suite 400, Portals Building, 1250 
Maryland Avenue, SW., Washington, DC, between 8 a.m. and 4:30 p.m., 
Monday through Friday, except holidays. A copy of this proposed rule is 
available through the Foreign Agricultural Service (FAS) home page at: 
https://www.fas.usda.gov/mos/programs/map.asp.

FOR FURTHER INFORMATION CONTACT: Mark Slupek by phone at (202) 720-
4327, by fax at (202) 720-9361, or by e-mail at: podadmin@fas.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

    On May 23, 2007, the Commodity Credit Corporation (CCC) published 
an advance notice of proposed rulemaking and public hearing in the 
Federal Register (72 FR 28901). This notice was intended to solicit 
comments on whether to amend and revise the existing MAP regulations. 
In addition, CCC held a public hearing on July 25, 2007, to receive 
oral and written comments. This proposed rule includes changes based on 
public comments and CCC's experience in operating the program. The 
following changes are proposed:
    CCC proposes to add a separate paragraph to note explicitly the 
applicability of other Federal statutes and regulations to the 
activities of MAP participants. CCC also proposes to add new 
definitions and to delete obsolete definitions. Of note, CCC proposes 
to clarify the definitions of U.S. agricultural commodity, brand 
promotion, CCC, contribution, credit memo, expenditure, generic 
promotion, supergrade, and small-sized entity. CCC proposes to remove 
the definitions of activity plan, activity plan amendment request 
(APAR), deputy administrator, division director, EIP/MAP, EIP/MAP 
participant, eligible commodity, exported commodity, unfair trade 
practice, U.S. commercial entity, and U.S. industry contribution. CCC 
proposes to add definitions of administrative expenses or costs, 
approval letter, brand participant, UES Web site, FAS Web site, 
notification, program agreement, program year, temporary contractor, 
U.S. for-profit entity, and UES.
    CCC proposes to modify the language that describes the application 
process and activity plan. CCC proposes to update and merge the list of 
application requirements and the activity plan requirements to better 
reflect the UES system that has been in place for several years.
    CCC proposes to modify the lists of reimbursable and non-
reimbursable activities to clarify the reimbursability of certain 
activities, e.g., to allow reimbursement for the use of electronic 
media in advertising (such as radio, television, electronic mail, 
Internet, telephone, text messaging, and podcasting) and portable 
electronic communications devices (such as mobile phones, wireless e-
mail devices, and personal digital assistants). Other clarifications 
address overseas office expenses, legal expenses, market research, 
coupons, permanent displays, subscriptions to publications, travel 
reimbursement, Office of Management and Budget (OMB) Circular A-133 
audits, and translation of written materials. CCC also proposes to 
clarify that expenditures associated with educational training designed 
to improve market access by addressing temporary or permanent trade 
barriers are reimbursable. Such activities are currently allowable, but 
were not specifically identified in the regulation.
    CCC proposes to modify the list of reimbursable activities to 
include development and use of Web sites; production of business cards 
that target a foreign audience; expenditures associated with conducting 
international staff conferences; expenditures related to copyright, 
trademark, or patent registration; leasing storage space overseas for 
storing program materials; and business class travel to be more 
consistent with the federal travel regulation.
    Throughout the program's history, certain domestic administrative 
costs have been reimbursable for regional or national groupings of 
state departments of agriculture. CCC proposes to broaden this 
eligibility to allow for domestic administrative costs for the 
Intertribal Agriculture Council, which is a similar grouping of Native 
American and Alaskan tribes.
    CCC proposes to modify the list of non-reimbursable activities to 
make ineligible expenditures on activities that include derogatory 
references or negative comparisons to other U.S. agricultural 
commodities and contributions to a contingency reserve. CCC also 
proposes to clarify that if a MAP participant discovers that MAP funds 
have not been spent properly, the participant has 30 days to inform CCC 
and repay the amount misspent.
    CCC proposes to clarify, separate, and include in a new paragraph 
MAP contribution rules that were originally subsumed in the application 
process paragraph.
    CCC proposes to separate existing paragraphs entitled ``Financial 
management, reports, evaluations, and appeals'' and ``Miscellaneous 
provisions'' into multiple paragraphs to provide greater clarity. CCC 
proposes to establish separate paragraphs to describe the compliance 
review and appeals processes; amendment of agreements; termination of 
agreements;

[[Page 46028]]

consequences of noncompliance with agreements; as well as new 
paragraphs on financial management, evaluation, information disclosure, 
ethical conduct, physical property, program income, and reporting. CCC 
proposes to extend the due date for evaluation reports and annual 
performance reports to 180 days following the end of a program year.
    CCC proposes a new paragraph establishing new requirements for a 
participant to submit to CCC, for CCC's approval, a contracting plan 
that outlines its procedures for developing and publicizing requests 
for proposals, invitations for bids, and similar documents that solicit 
third-party offers to provide goods or services; procedures for 
reviewing proposals, bids, or other offers to provide goods and 
services; and other contracting requirements, including conflict of 
interest provisions that extend beyond the relevant actor's immediate 
family.
    In addition, CCC proposes to add a paragraph requiring MAP 
participants that operate brand programs under MAP to establish certain 
operational procedures outlined in this proposed rule.
    CCC also proposes to add a paragraph imposing new requirements on 
participants to establish and maintain a fraud prevention program and 
to report to CCC any allegations regarding potential fraud against the 
program.
    Finally, CCC proposes to eliminate the EIP/MAP subcomponent, which 
was a part of the program limited to for-profit entities that entered 
into agreements with CCC. This applied when the program was available 
to large companies, but such companies are no longer eligible for the 
program.

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866. It has been determined to be not significant for the purposes of 
Executive Order 12866 and was not reviewed by OMB. A cost-benefit 
assessment of this rule was not completed.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. This rule does not preempt State or local laws, regulations, or 
policies unless they present an irreconcilable conflict with this rule. 
This rule would not be retroactive.

Executive Order 12372

    This program is not subject to Executive Order 12372, which 
requires intergovernmental consultation with State and local officials. 
See the notice related to 7 CFR part 3015, subpart V, published at 48 
FR 29115 (June 24, 1983).

Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
CCC is not required by 5 U.S.C. 553 or any other law to publish a 
notice of proposed rulemaking with respect to the subject matter of 
this rule.

Environmental Assessment

    CCC has determined that this proposed rule does not constitute a 
major State or Federal action that would significantly affect the human 
or natural environment. Consistent with the National Environmental 
Policy Act (NEPA), 40 CFR part 1502.4, ``Major Federal Actions 
Requiring the Preparation of Environmental Impact Statements'' and the 
regulations of the Council on Environmental Quality, 40 CFR parts 1500-
1508, no environmental assessment or environmental impact statement 
will be prepared.

Unfunded Mandates

    Although we are publishing this as a proposed rule, Title II of the 
Unfunded Mandates Reform Act of 1995 (UMRA) does not apply to this rule 
because it does not impose any enforceable duty or contain any unfunded 
mandate as described under the UMRA.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995, FAS has 
previously received approval from OMB with respect to the information 
collection required to support this program. The information collection 
is described below:
    Title: Foreign Market Development Program (FMD) and Market Access 
Program (MAP);
    OMB Control Number: 0551-0026.

E-Government Act Compliance

    CCC is committed to complying with the E-Government Act to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services and for other purposes. The forms, regulations, and other 
information collection activities required to be utilized by a person 
subject to this rule are available at: https://www.fas.usda.gov.

List of Subjects in 7 CFR Part 1485

    Agricultural commodities, Exports.

    For the reasons stated in the preamble, CCC proposes to amend 7 CFR 
part 1485 as follows:

PART 1485--GRANT AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS 
FOR U.S. AGRICULTURAL COMMODITIES

    1. The authority citation for 7 CFR part 1485 continues to read as 
follows:

    Authority: 7 U.S.C. 5623; 7 U.S.C. 5662-5663 and sec. 1302, 
Public Law 103-66, 107 Stat. 330.

    2. Subpart B is revised to read as follows:
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 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.
1485.26 Submissions.
1485.27 Disclosure of program information.
1485.28 Ethical conduct.
1485.29 Contracting procedures.
1485.30 Property standards.
1485.31 Anti-fraud requirements.
1485.32 Program income.
1485.33 Amendment.
1485.34 Noncompliance with an agreement.
1485.35 Suspension, termination, and closeout of agreements.
1485.36 Paperwork reduction requirements.

Subpart B--Market Access Program


Sec.  1485.10  General purpose and scope.

    (a) This subpart sets forth the general terms, conditions, and 
policies governing the Commodity Credit Corporation's (CCC) operation 
of the Market Access Program (MAP).
    (b)(1) In addition to the provisions of this subpart, other 
regulations of general application issued by the U. S. Department of 
Agriculture (USDA), including the regulations set forth in Chapter XXX 
of this title, ``Office of the Chief Financial Officer, Department of 
Agriculture,'' may apply to the MAP. These include, but are not limited 
to:

(i) 7 CFR part 1, subpart A--Official Records
(ii) 7 CFR part 3--Debt Management
(iii) 7 CFR part 15, subpart A--Nondiscrimination
(iv) 7 CFR part 3015--Uniform Federal Assistance Regulations
(v) 7 CFR part 3016--Uniform Administrative Requirements for

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Grants and Cooperative Agreements to State and Local Governments
(vi) 7 CFR part 3017--Government-wide Debarment and Suspension 
(Nonprocurement)
(vii) 7 CFR part 3018--New Restrictions on Lobbying
(viii) 7 CFR part 3019--Uniform Administrative Requirements for Grants 
and Other Agreements with Institutions of Higher Education, Hospitals, 
and Other Nonprofit Organizations
(ix) 7 CFR part 3021--Government-wide requirements for drug-free 
workplace (financial assistance)
(x) 7 CFR part 3052--Audits of States, Local Governments, and Non-
profit Organizations
(xi) 48 CFR part 31--Contract Cost Principles and Procedures of the 
Federal Acquisition Regulations.

    (2) In addition, relevant provisions of the CCC Charter Act (15 
U.S.C. 714 et seq.) and any other statutory provisions that are 
generally applicable to CCC are also applicable to the MAP and the 
regulations set forth in this part.
    (3) MAP participants must also comply with Title VI for the Civil 
Rights Act of 1964 and related civil rights regulations and policies.
    (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 and products. 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. When considering eligible 
nonprofit U.S. trade organizations, CCC gives priority to organizations 
that have the broadest producer representation and affiliated industry 
participation of the commodity being promoted.
    (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. CCC also 
endeavors to enter into MAP agreements covering a broad array of 
agricultural commodity sectors. The MAP is administered by personnel of 
the Foreign Agricultural Service (FAS) acting on behalf of CCC.


Sec.  1485.11  Definitions.

    For purposes of this subpart the following definitions apply:
    Activity--a specific foreign market development effort undertaken 
by a MAP participant.
    Administrative expenses or costs-- expenses or costs of 
administering, directing, and controlling an organization that is a MAP 
participant that are not directly identifiable with a specific market 
promotion activity. 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, business cards);
    (2) Personnel (including, but not limited to, salaries, benefits, 
payroll taxes, individual insurance, training);
    (3) Communications (including, but not limited to, phone expenses, 
Internet, mobile phones, personal digital assistants, e-mail, mobile e-
mail devices, postage, courier services, television, radio, walkie 
talkies);
    (4) Management of an organization or unit of an organization 
(including, but not limited to, planning, supervision, supervisory 
travel, teambuilding, recruiting, hiring);
    (5) Utilities (including, but not limited to, sewer, water, 
energy);
    (6) Professional services (including, but not limited to, 
accounting expenses, financial services, investigatory services).
    Approval letter--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 program agreement. This letter requires a 
countersignature by the MAP participant before it becomes effective.
    Attach[eacute]/Counselor--the FAS employee representing USDA 
interests in the foreign country in which promotional activities are 
conducted.
    Brand participant--a small-sized U.S. for-profit entity or a non-
profit U.S. agricultural cooperative that owns the brand(s) of the U.S. 
agricultural 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.
    Brand promotion--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 any activity undertaken by a MAP 
participant in the brand program.
    CCC--the Commodity Credit Corporation, including any agency or 
official of the United States delegated the responsibility to act on 
behalf of CCC.
    Contribution--an expenditure made by a MAP participant or U.S. 
industry in support of an approved activity.
    Credit memo--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--activities involving the erection or 
construction of a structure or facility or the installation of 
equipment.
    Expenditure--either payment via the transfer of funds or offset 
reflected in a credit memo in lieu of a transfer of funds.
    FAS--Foreign Agricultural Service, USDA.
    FAS Web site--a Web site maintained by FAS providing information on 
MAP. It is currently accessible at www.fas.usda.gov/mos/programs/map.asp.
    Foreign third party--a foreign entity that works with a MAP 
participant, in accordance with an approved MAP program agreement and/
or approval letter, in promoting the export of a U.S. agricultural 
commodity.
    Generic promotion--an activity that is not a brand promotion but, 
rather, promotes a U.S. agricultural commodity generally.
    MAP--the Market Access Program.
    MAP participant or Participant--an entity that has entered into a 
MAP program agreement with CCC.
    Market--the country or countries targeted by an activity.
    Notification--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 MAP program agreement and/or approval letter.
    Program agreement--a document entered into between CCC and a MAP 
participant setting forth the terms and conditions of approved 
activities under MAP, including any subsequent amendments to such 
agreement.
    Program year--Unless otherwise agreed 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 program 
agreement with CCC.

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    Promoted commodity--a U.S. agricultural commodity the sale of which 
is the intended result of a promotion activity.
    Sales and trade relations expenditures (STRE)--expenditures made on 
breakfast, lunch, dinner, receptions, and refreshments at approved 
activities; miscellaneous courtesies such as checkroom fees, taxi fares 
and tips; and decorations for a special promotional occasion.
    Sales team--a group of individuals engaged in an approved activity 
intended to result in specific sales.
    Small-sized entity--a U.S. commercial entity that meets the small 
business size standards published at 13 CFR part 121, Small Business 
Size Regulations.
    SRTG--the acronym for State Regional Trade Group. An SRTG is an 
association of State Departments of Agriculture.
    Supergrade--a salary level above the reimbursable salary range 
generally allowable under 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 participants' overseas offices.
    Temporary contractor--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--a group of individuals engaged in an approved activity 
intended to promote the interests of an entire agricultural sector 
rather than to result in specific sales by any of its members.
    UES Web site--a Web site maintained by FAS through which applicants 
may apply online to MAP and any other USDA market promotion program. 
The Web site is currently accessible at https://www.fas.usda.gov/mos/ues/unified.asp.
    Unified Export Strategy (UES)--is a standardized online Internet 
application developed by USDA and available for use by entities to 
apply to any USDA market development program.
    U.S. agricultural commodity--any food, feed, fiber, forestry 
product, livestock, or insect of U.S. origin or 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, 
excluding tobacco. An agricultural commodity shall be considered to be 
U.S. origin if it is comprised of at least 50 percent by weight, 
exclusive of added water, of agricultural commodities grown or raised 
in the United States.
    USDA-- the United States Department of Agriculture.
    U.S. for-profit entity--a firm, cooperative, association, or other 
entity organized or incorporated, located and doing business for profit 
in the United States and engaged in the export or sale of a U.S. 
agricultural commodity.


Sec.  1485.12  Participation eligibility.

    To participate in the MAP, an entity shall be:
    (a) A nonprofit U.S agricultural trade organization;
    (b) A nonprofit SRTG;
    (c) A nonprofit U.S. agricultural cooperative; or
    (d) A State agency.


Sec.  1485.13  Application process.

    (a) General application requirements. CCC will periodically publish 
a Notice in the Federal Register that it is accepting applications for 
participation in MAP. Applications shall be submitted in accordance 
with the terms and requirements specified in the Notice and in these 
regulations. Applicants are encouraged to submit a UES through the UES 
Internet Web site, but are not required to do so. Applicants may apply 
to conduct a generic promotion program, a brand promotion program that 
provides MAP funds to brand participants for branded promotion, or 
both.
    (1) Applicant and program information.
    (i) All applications shall contain:
    (A) The name, address, and Internet location of the home page of 
the applicant organization;
    (B) The name of the applicant's Chief Executive Officer;
    (C) The name, telephone number, fax number, and e-mail address of 
the applicant's primary contact person;
    (D) The name(s) of the person(s) responsible for managing the 
proposed program;
    (E) A description of the applicant organization, including the type 
of organization of the applicant (e.g., nonprofit SRTG), its mission, 
and the statutory authorities by which it is constituted and under 
which it operates, if applicable;
    (F) Tax exempt identification number of the applicant, if 
applicable;
    (G) Beginning and ending dates for proposed program year (mm/dd/yy-
mm/dd/yy);
    (H) Dollar amount of CCC resources requested for generic 
activities;
    (I) Dollar amount of CCC resources requested for brand activities;
    (J) Percentage of CCC resources requested for brand activities that 
will be made available to small-sized entities;
    (K) Total dollar amount of CCC resources requested;
    (L) Percentage of CCC resources requested for general 
administrative expenses;
    (M) A Dun and Bradstreet DUNS number for the applicant;
    (N) A description of the applicant organization's membership and 
membership criteria;
    (O) A list of organizations affiliated with the applicant, 
including parent organizations, subsidiaries, and partnerships;
    (P) A description of the applicant's management and administrative 
capability;
    (Q) A description of the applicant's prior export promotion 
experience;
    (R) Value, in U.S. dollars, of proposed contributions from the 
applicant;
    (S) The applicant's proposed contribution stated as a percentage of 
the total dollar amount of CCC resources requested; and
    (T) Value, in U.S. dollars, of proposed contributions from other 
sources.
    (ii) [Reserved]
    (2) Program justification.
    (i) All applications shall contain:
    (A) A description of the promoted U.S. agricultural commodity(s), 
its harmonized system code, the applicable commodity aggregate code 
(available from the UES Web site) and the percentage of U.S. origin 
content by weight, exclusive of added water;
    (B) A description of the anticipated supply and demand situation 
for the promoted U.S. agricultural commodity(s);
    (C) The volume and value of exports of the promoted U.S. 
agricultural commodity(s) to the targeted markets for the most recent 
3-year period;
    (D) If the proposal is for 2 or more years, an explanation why the 
proposal should be funded on a multi-year basis; and
    (E) A certification and, if requested by CCC, a written explanation 
supporting the certification that any funds received will supplement, 
but not supplant, any private or third-party funds or other 
contributions to program activities. An explanation, if one is 
requested, shall indicate why the applicant is unlikely to carry out 
the activities without Federal financial assistance. In determining 
whether Federal funds would supplement or supplant private or third-
party funds or contributions, CCC will consider the applicant's prior 
overall marketing budget in the MAP program from year-to-year, 
variations in promotional strategies within a country, and new markets.
    (ii) [Reserved]
    (3) Proposed program's strategic plan.

[[Page 46031]]

    (i) All applications shall include a strategic plan that contains:
    (A) A description of overall long term strategic goals to be 
advanced by the proposed activities for the ensuing 3-5 years;
    (B) An explanation of the organization's strategic planning process 
and identification of priority target markets, including a summary of 
proposed budgets by country and commodity aggregate code;
    (C) A description of the world market situation for the exported 
U.S. agricultural commodity(s);
    (D) A description of competition from other exporters;
    (E) A statement of goals and the applicant's plans for monitoring 
and evaluating performance towards achieving these goals;
    (F) For each country, 5 years or as many years as are available of:
    (1) Historical U.S. export data;
    (2) U.S. market share; and
    (3) MAP funds received by the applicant;
    (G) For each target country, 3 years of projected U.S. export data 
and U.S. market share;
    (H) Country strategy, including market constraint(s) impeding U.S. 
exports (e.g., trade barriers) or opportunities present and the 
strategy proposed to overcome constraints or take advantage of the 
opportunities, previous activities in the country, and the projected 
impact of the proposed program on U.S. exports;
    (I) A justification for any proposed overseas office, including a 
staffing plan listing job titles, position descriptions, salary ranges, 
any request for approval of supergrade salaries, and an itemized 
administrative budget;
    (J) A description of any demonstration projects, if applicable;
    (K) Data summarizing the applicant's historical and projected 
exports, market share, and MAP budgets of the promoted U.S. 
agricultural commodity(s);
    (L) A written presentation of all proposed activities including:
    (1) A short description of the relevant market constraint or 
opportunity;
    (2) A budget for each proposed activity, identifying the source of 
funds; and
    (M) An evaluation plan setting forth specific goals and benchmarks 
set at regular intervals to be used to identify results against 
identified constraints and opportunities and to measure progress made 
in the target market. Evaluation of a proposed MAP program's 
effectiveness will depend on a clear statement by the applicant of 
goals, method of achievement, and expected results of programming 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 may 
modify and resubmit this plan for re-approval at any time during the 
program year.
    (ii) Applications for brand promotion assistance shall also include 
in their strategic plans:
    (A) A description of how the brand promotion program will be 
publicized to U.S. industry; and
    (B) The criteria that will be used to allocate funds to U.S. for-
profit entities.
    (b) CCC may request any additional information that it deems 
necessary to evaluate an application, including, but not limited to, 
performance measurement information.
    (c) Special rules governing demonstration projects funded with CCC 
resources.
    (1) CCC will consider proposals for demonstration projects, 
provided:
    (i) No more than one such demonstration project per constraint is 
undertaken within a market;
    (ii) The constraint to be addressed in the target market is a lack 
of technical knowledge or expertise;
    (iii) The demonstration project is a practical and cost effective 
method of overcoming the constraint; and
    (iv) A third-party must participate in such project through a 
written agreement.


Sec.  1485.14  Application review and formation of agreements.

    (a) General. 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. The selection process, by its 
nature, involves the exercise of judgment. CCC's choice of participants 
and proposed promotion projects requires that it consider and weigh a 
number of factors, some of which cannot be mathematically measured--
e.g., market opportunity, market strategy, and management capability. 
CCC may require that an applicant participate in the MAP through 
another MAP participant or applicant.
    (b) Application review criteria. In assessing the likelihood of 
success of the applications it receives and deciding which it will 
approve, CCC will follow results-oriented management principles and 
consider the following criteria:
    (1) The effectiveness of program management;
    (2) Soundness of accounting procedures;
    (3) The nature of the applicant organization, with preference given 
to those organizations with the broadest base of producer 
representation and affiliated industry participation;
    (4) Prior export promotion experience;
    (5) Appropriateness of staffing;
    (6) Adequacy of the applicant's strategic plan in the following 
categories;
    (i) Description of target market conditions;
    (ii) Description of, and plan for addressing, market constraints 
and opportunities;
    (iii) Breadth of industry participation in strategic planning 
process;
    (iv) Strategic prioritization identified in proposed plan;
    (v) Export volume and value and market share goals in each target 
country;
    (vi) Description of evaluation plan and suitability of the plan for 
performance measurement; and
    (vii) Past program results and/or evaluations, including program 
success stories.
    (c) Allocation factors. CCC determines which applications to 
approve and develops preliminary recommended funding levels for each 
approved application based on the following factors, in addition to 
those in paragraph (b) of this section. 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 in the Federal Register:
    (1) Size of the budget request in relation to projected value of 
exports;
    (2) Where applicable, size of the budget request in relation to 
actual value of exports in prior years;
    (3) Where applicable, participant's past projections of exports 
compared with actual exports;
    (4) Level of contributions by the applicant and by all other 
sources;
    (5) Market share goals in target country(ies);
    (6) The percentage by weight, exclusive of added water, of U.S. 
agricultural commodities contained in the promoted products;
    (7) The degree of value-added processing in the United States;
    (8) General administrative and overhead costs compared to direct 
promotional costs; and
    (9) In the case of a brand promotion program, the percentage of the 
budget that will be made available to small-sized entities as a means 
of providing priority assistance to such entities.
    (d) Approval decision.
    (1) CCC will approve those applications that it determines best

[[Page 46032]]

satisfy the criteria and factors specified above.
    (2) Notification of decision. CCC will notify each applicant in 
writing of the final disposition of its application.
    (e) Formation of agreements. CCC will send a program agreement (or 
amendment to an existing program agreement), an approval letter, and a 
signature card to each approved applicant. The program agreement or 
amendment 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 contributions and program evaluations. An applicant 
that decides to accept the terms and conditions contained in the 
program agreement or amendment must so indicate by having its Chief 
Executive Officer (CEO) or designee sign the program agreement or 
amendment and submit it to CCC. Final agreement shall occur when the 
program agreement or amendment is signed on behalf of CCC.
    (f) Signature cards. The MAP participant shall designate at least 
two individuals in its organization to sign program agreements, 
reimbursement claims, and advance requests. The MAP participant shall 
submit the signature card signed by those designated individuals and by 
the participant's CEO to CCC. The participant shall immediately notify 
CCC of any changes in signatories and shall submit a revised signature 
card accordingly.
    (g) UES ID and passwords. CCC will provide each MAP participant 
with IDs and passwords for the UES website, as necessary. MAP 
participants shall protect these IDs and passwords in accordance with 
USDA's information technology policies that CCC will provide to MAP 
participants. 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.
    (h) A MAP participant through which small-sized U.S. for-profit 
entities are participating in the MAP program shall obtain annual 
certifications from all such entities that they are small-sized 
entities as defined in these regulations. The participant shall retain 
these certifications in accordance with the recordkeeping requirements 
of this subpart.
    (i) Changes to activities and funding.
    (1) Adding a new activity.
    (i) A MAP participant may not add a new activity to its approved 
MAP program without first obtaining CCC written approval of such 
change. To request approval of such change, the MAP participant shall 
submit a notification to CCC.
    (ii) A notification for a new activity shall provide an activity 
justification and proposed activity strategic plan similar to the 
program justification and proposed program's strategic plan required in 
new applications. The notification shall contain the activity 
description, the proposed budget, and a justification of transfer of 
funds.
    (iii) After receipt of the notification, CCC will inform the MAP 
participant in writing whether the requested change is approved.
    (2) Deleting or modifying existing activities and funding levels.
    (i) A MAP participant may make adjustments to its existing, 
approved activities and/or funding levels without prior approval of 
CCC, only if it submits a notification explaining the adjustments to 
CCC no later than 30 days after the change. However, a MAP participant 
desiring to increase the funding level for existing, approved 
activities addressing a single constraint or opportunity by more than 
$10,000 or 20 percent of the approved funding level, whichever is 
greater, must first submit a notification explaining the adjustment to 
CCC before making such change. If CCC does not disapprove of the 
proposed increase in funding level within 15 days, then the MAP 
participant may so adjust the level.
    (ii) A notification of a modified or deleted activity shall contain 
the activity description, the proposed budget, and a justification of 
transfer of funds, if applicable.
    (iii) A notification of changes to the approved funding levels of 
approved activities shall contain the activity description, the 
existing funding level, the proposed funding level, and a justification 
for 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 third party brand 
participants, the MAP participant shall establish brand program 
operational procedures. The MAP participant annually shall submit to 
CCC for approval, not later than 21 days prior to signing participation 
agreements with third party brand participants, its proposed brand 
program operational procedures for such program year. 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 third party 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 third 
party brand participants. Where CCC approves a MAP participant's 
application to run a brand promotion program that will include third 
party brand participants, the MAP participant shall enter into 
participation agreements with third party brand participants. These 
agreements must:
    (1) Specify a time period for such third party brand promotion and 
require that all third party 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 third party 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 third party 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 U.S. agricultural commodity 
as ``Product of the U.S.'', ``Product of the U.S.A.'', ``Grown in the 
U.S.'', ``Grown in the U.S.A.'', ``Made in America'' or other U.S. 
regional designation if approved in advance by CCC; that such origin 
identification will be conspicuously displayed; 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''. 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

[[Page 46033]]

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;
    (7) Include a written certification by the third party brand 
participant that it is a small-sized entity as defined in this subpart;
    (8) Require that the third party 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 contributions to program activities; and
    (9) Require the third party brand participant to maintain all 
original records and documents relating to program activities for 5 
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.
    (d) MAP participants may not provide assistance to a single 
company, including a company reincorporated or re-organized under the 
same or different name if the reincorporated or re-organized company is 
substantially similar to the pre-existing company, for brand promotion 
in a single country for more than 5 years. Such 5 years do not need to 
be consecutive. Such 5-year period shall not begin prior to the 1994 
program year or the brand participant's first program year, whichever 
is later. In limited circumstances, CCC may waive the 5-year limitation 
if CCC determines that further assistance is in the best interests of 
the MAP. CCC shall have the discretion to decide whether a 
reincorporated or re-organized company is substantially similar to the 
pre-existing company for purposes of applying this 5-year rule.


Sec.  1485.16  Contribution rules.

    (a) In MAP generic promotion programs, a MAP participant shall 
contribute a total amount in goods, services, and/or cash equal to at 
least 10 percent of the value of resources to be provided by CCC for 
all generic promotion activities proposed to be undertaken by the 
participant.
    (b) In MAP brand promotion programs, a brand participant shall 
contribute at least 50 percent of the total eligible expenditures made 
on each approved brand promotion.
    (c) A MAP participant must use its own funds and may not use MAP 
program 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.
    (d) Eligible contributions.
    (1) In calculating the amount of contributions that it will make, 
and the contributions 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 agency will make, the MAP applicant 
may include the costs listed under paragraph (d)(2) of this section if:
    (i) Expenditures will be made in furtherance of an approved 
activity, and
    (ii) The contributor has not been and will not be reimbursed by any 
source for such costs.
    (2) Subject to paragraphs (c) and (d)(1) of this section, eligible 
contributions are:
    (i) Cash;
    (ii) Compensation paid to personnel;
    (iii) The cost of acquiring materials, supplies or services;
    (iv) The cost of office space;
    (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) The cost of seasonal greeting cards;
    (ix) Fees for office parking;
    (x) The cost of subscriptions to publications;
    (xi) The cost of activities conducted overseas;
    (xii) Credit card fees;
    (xiii) The cost of any independent evaluation or audit that is not 
required by CCC to ensure compliance with program agreement or 
regulatory requirements;
    (xiv) The cost of giveaways, awards, prizes and gifts;
    (xv) The cost of product samples;
    (xvi) Fees for participating in U.S. Government activities;
    (xvii) The cost of air and local travel in the United States;
    (xviii) Payment of employee's or contractor's share of personal 
taxes;
    (xix) STRE in the United States and the cost associated with trade 
shows, seminars, and entertainment conducted in the United States;
    (xx) Other administrative expenses (e.g., supervisory travel from 
the U.S. to an overseas office); and
    (xxi) The cost of any activity expressly listed as reimbursable in 
this subpart.
    (3) The following are not eligible contributions:
    (i) Any portion of salary or compensation of an individual who is 
the target of an approved promotional activity;
    (ii) Any expenditure, including that portion of salary and time 
spent, related to promoting membership in the participant organization 
(sometimes referred to in the industry as ``backsell'');
    (iii) Any land costs other than allowable costs for office space;
    (iv) Depreciation;
    (v) The cost of refreshments and related equipment provided to 
office staff;
    (vi) The cost of insuring articles owned by private individuals;
    (vii) The cost of any arrangement that has the effect of reducing 
the selling price of a U.S. agricultural commodity;
    (viii) The cost of product development, product modifications, or 
product research;
    (ix) Slotting fees or similar sales expenditures;
    (x) Membership fees in clubs and social organizations; and
    (xi) 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.


Sec.  1485.17  Reimbursement rules.

    (a) A MAP participant may seek reimbursement for an eligible 
expenditure if:
    (1) The expenditure was made in furtherance 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 paragraph (a) of this section, CCC will reimburse, 
in whole or in part, the cost of:
    (1) Production and placement of advertising, in print, electronic 
media, billboards, or posters, which may include advertising the 
availability of price discounts. 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 promotional samples;
    (5) Temporary displays and rental of space for temporary displays;
    (6) Expenditures, other than travel expenditures, associated with 
retail, trade, consumer exhibits and shows,

[[Page 46034]]

seminars, and educational training, including participation fees, booth 
construction, transportation of related materials, rental of space and 
equipment, and duplication of related printed materials;
    (7) International air travel, not to exceed the full fare economy 
rate, or other means of international transportation and per diem, as 
allowed under the U.S. Federal Travel Regulations (41 CFR parts 301 
through 304), for no more than two representatives of a single brand 
participant to exhibit their company's products at a foreign trade 
show;
    (8) Subscriptions to publications that are of a technical, 
economic, or marketing nature and that are relevant to the approved 
activities of the participant;
    (9) Demonstrators, interpreters, translators, receptionists, and 
similar temporary workers who help with the implementation of discrete 
promotional activities, such as trade shows, in-store promotions, food 
service promotions, and trade seminars;
    (10) Giveaways, awards, prizes, gifts and other similar promotional 
materials, subject to such reimbursement limitation as CCC may, from 
time to time, determine and announce in writing to all MAP participants 
and on the FAS Web site;
    (11) 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;
    (12) The design, production, and distribution of coupons;
    (13) An audit of a MAP participant as required by the applicable 
parts of this title if the MAP is the MAP participant's largest source 
of Federal funding;
    (14) The translation of written materials as necessary to carry out 
approved activities; and
    (15) Expenditures associated with developing, updating, and 
servicing Web sites on the Internet that clearly target a foreign 
audience.
    (c) Subject to paragraph (a) of this section, 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, 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, and
    (ii) Allowances that exceed the rate authorized for U.S. Embassy 
personnel;
    (2) Approved supergrade salaries for non-U.S. citizens and non-U.S. 
contractors;
    (3) Compensation of non-U.S. citizen staff employees or non-U.S. 
contractors 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 mean, except for approved supergrades;
    (4) A retroactive salary adjustment for non-U.S. citizen staff 
employees or non-U.S. contractors 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;
    (7) Temporary contractor fees, except CCC will not reimburse any 
portion of any such fee that exceeds the daily gross salary of a GS-15, 
Step 10 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) International travel expenses, including passports, visas and 
inoculations, except that CCC generally will not reimburse any portion 
of air travel in excess of the full fare economy rate or when the 
participant fails to notify the Attach[eacute]/Counselor in the 
destination country in advance of the travel, unless the CCC determines 
it was impractical to provide such notice. 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. 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. In 
very limited circumstances, CCC will reimburse air travel up to the 
business class rate (i.e., a premium class rate other than the first 
class rate). CCC will, from time to time, determine a policy regarding 
the appropriate circumstances and announce that policy in writing to 
all MAP participants and on the FAS web site;
    (9) Per diem, except that CCC will not reimburse per diem in excess 
of the rates allowed under the U.S. Federal Travel Regulations (41 CFR 
parts 301 through 304);
    (10) Automobile mileage at the local U.S. Embassy rate or rental 
cars while in travel status;
    (11) Other allowable expenditures while in travel status as 
authorized by the U.S. Federal Travel Regulations (41 CFR parts 301 
through 304);
    (12) Organization costs for overseas offices approved in MAP 
program 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, and routine accounting and legal 
services required to maintain the overseas office;
    (13) The purchase, lease, or repair of, or insurance premiums for, 
capital goods that have an expected useful life of at least 1 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 e-
mail devices, personal digital assistants);
    (14) Such premiums for health or accident insurance and other 
benefits for foreign national employees that the employer is required 
by law to pay;
    (15) Accident liability insurance premiums for facilities used 
jointly with third-party participants for MAP activities or for travel 
of non-MAP participant personnel;
    (16) Market research, including research to determine the types of 
products that are desired in a market;
    (17) Independent evaluations or audits, if not otherwise required 
by CCC, to ensure compliance with program agreement or regulatory 
requirements;
    (18) Legal fees to obtain advice on the host country's labor laws;
    (19) Employment agency fees;
    (20) STRE;
    (21) Educational travel of dependent children, visitation travel, 
rest and recuperation travel, home leave travel, emergency visitation 
travel for U.S. overseas employees allowed under the Foreign Affairs 
Manual published by the U.S. Department of State;

[[Page 46035]]

    (22) Evacuation payments (safe haven) and shipment and storage of 
household goods and motor vehicles;
    (23) Domestic administrative support expenses for the National 
Association of State Departments of Agriculture, the SRTGs, and the 
Intertribal Agriculture Council;
    (24) Expenditures associated with conducting international staff 
conferences;
    (25) Travel expenditures associated with trade shows, seminars, 
educational training, international staff conferences conducted outside 
of the United States, and meetings of international organizations 
conducted in the United States;
    (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 web sites on the Internet that contain a message related to 
exporting or international trade; and
    (31) Expenditures associated with educational training designed to 
improve market access by addressing market constraints, such as 
temporary or permanent trade barriers.
    (d) A generic promotion activity may include the promotion of a 
foreign brand if the foreign brand uses the promoted U.S. agricultural 
commodity from multiple U.S. suppliers and is the primary market access 
to the targeted market for the U.S. agricultural commodity. A generic 
promotion activity may also involve the use of specific company names, 
logos or brand names. However, in that case, the MAP participant must 
ensure that all U.S. companies seeking to promote such U.S. 
agricultural 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 companies will be considered a generic promotion only if the 
promotion of the separate items maintains a unified theme and style and 
is subordinate to the promotion of the generic theme.
    (e) 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;
    (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 of, construction of, 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 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;
    (10) Refundable deposits or advances;
    (11) Giveaways, awards, prizes, gifts and other similar promotional 
materials in excess of the limitation described in this subpart;
    (12) Alcoholic beverages that are not an integral 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 
program agreement or regulatory compliance;
    (17) Any arrangement that has the effect of reducing the selling 
price of a U.S. agricultural commodity;
    (18) Goods, services and salaries of personnel provided by U.S. 
industry or foreign third-party;
    (19) Membership fees in clubs and social organizations;
    (20) Indemnity and fidelity bonds;
    (21) Fees for participating in U.S. Government sponsored 
activities, other than trade fairs 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) Home office domestic administrative expenses, including 
communication costs;
    (27) Any expenditure on an activity that includes any derogatory 
reference or negative comparison to other U.S. agricultural 
commodities;
    (28) Any expenditure on an activity that contradicts U.S. foreign 
policy;
    (29) 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;
    (30) Any expenditure made for an activity prior to CCC's approval 
of that activity; and
    (31) 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.
    (f) Special rules for 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, 
ordinarily, CCC will not 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 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 grade 
increase over the existing top grade of the FSN salary plan. The 
supergrade and its step increases are calculated as the percentage 
difference between the second highest and the highest grade in the FSN 
salary plan, with that percentage applied to each of the steps

[[Page 46036]]

in the top grade. 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.
    (g) CCC may determine, at CCC's discretion, whether any cost not 
expres