Agricultural Trade Promotion Program, 44178-44195 [2018-18870]

Agencies

• DEPARTMENT OF AGRICULTURE
• Commodity Credit Corporation

[Federal Register Volume 83, Number 169 (Thursday, August 30, 2018)]
[Rules and Regulations]
[Pages 44178-44195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18870]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1489

RIN 0551-AA92


Agricultural Trade Promotion Program

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

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) is issuing a new 
regulation to implement the Agricultural Trade Promotion Program (ATP). 
The ATP provides assistance to U.S. agricultural industries to conduct 
activities that promote U.S. agricultural commodities in foreign 
markets for commodities impacted by tariffs, including activities that 
address existing or potential non-tariff barriers to trade. This rule 
specifies, among other things, eligibility requirements, activities 
eligible for reimbursement, contribution requirements, and application 
procedures for the ATP. This rule also proposes a new information 
collection for required program information. Specific program 
requirements will be set forth in future Notices of Funds Availability 
(NOFAs) announced through the Grants.gov website.

DATES: 
    Effective date: August 30, 2018.
    Comment date: We will consider comments on the Paperwork Reduction 
Act (PRA) that we receive by: October 29, 2018.

ADDRESSES: We invite you to submit comments as required by the PRA for 
the information collection activities. In your comment, specify RIN 
0551-NEW, and include the volume, date, and page number of this issue 
of the Federal Register. You may submit comments by any of the 
following methods:
     Federal Rulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Email: [email protected].
     Fax: (202) 720-9361.
     Mail or Courier Service: Director, Program Operations 
Division, OTP/FAS, U.S. Department of Agriculture, 1400 Independence 
Avenue SW, Room 6512, Stop 1020, Washington, DC 20250-1020.

Comments will be available for viewing online at https://www.regulations.gov. In addition, comments will be available for public 
inspection at the above address during business hours from 8 a.m. to 5 
p.m., Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Curt Alt, Director, Program Operations 
Division, by telephone: (202) 720-4327; or by fax: (202) 720-9361; or 
by email: [email protected].
    The U.S. Department of Agriculture (USDA) prohibits discrimination 
in its programs on the basis of race, color, national origin, sex, 
religion, sexual orientation, age, disability, political beliefs and 
marital or familial status. (Not all prohibited bases apply to all 
programs.) Persons with disabilities who require alternative means for 
communication of program information (braille, large print, audiotape, 
etc.) should contact the USDA TARGET Center at (202) 720-2600 (Voice 
and TDD).

SUPPLEMENTARY INFORMATION: 

Background

    The nature and severity of financial impacts of recent 
international trade actions (for example, the imposition of tariffs by 
other countries on U.S. agricultural products) are disrupting the 
marketing of U.S. agricultural commodities and are outside of the 
control of the industries that are being negatively affected. In 
response to these actions by foreign governments, the Commodity Credit 
Corporation (CCC) has decided to exercise its authority under Section 5 
of the CCC Charter Act, which includes authority for CCC to use its 
general powers to ``aid in the development of foreign markets for . . . 
agricultural commodities . . . .'' [15 U.S.C. 714c(f)], to provide 
assistance to eligible organizations for market promotion activities. 
ATP funding is intended to ameliorate the negative impacts of recent 
international trade actions on U.S. agriculture by developing, 
maintaining, and expanding commercial export markets for U.S. 
agricultural commodities and products. ATP Participants may receive 
assistance for either generic or branded promotion activities as well 
as assistance to conduct activities to address existing or potential 
non-tariff barriers to trade.
    The Foreign Agricultural Service (FAS) will administer the ATP on 
behalf of the CCC. Specific program requirements and details for 
applying for assistance under the ATP will be set forth in future NOFAs 
announced through the Grants.gov website.

Eligible Organizations

    The ATP is a cost-share program that is designed to reimburse 
nonprofit U.S. agricultural trade organizations, nonprofit state 
regional trade groups, state agencies, U.S. agricultural cooperatives, 
and other entities that conduct approved foreign market promotion 
activities and can demonstrate damages suffered as a result of tariffs 
imposed on U.S. agricultural products in 2018/2019. When considering 
eligible nonprofit U.S. trade organizations, the CCC gives priority to 
organizations that have the broadest producer representation and 
affiliated industry participation of the commodity being promoted. 
Eligible activities can be generic or branded in nature. In order to be 
eligible for ATP assistance, U.S. for-profit entities shall be limited 
to those whose size does not exceed 300 percent of the small business 
size standards established for their particular industry and published 
at 13 CFR part 121, Small Business Size Regulations. Eligible for-
profit entities may participate in an ATP Participant's brand promotion 
program. Any ATP Participant that operates a brand promotion program 
will be required to establish brand program operational

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procedures. An ATP Participant shall publicize its ATP program and make 
participation possible for commercial entities throughout the relevant 
commodity sector or, in the case of State Regional Trade Groups 
(SRTGs), throughout the corresponding region.

General Provisions

    The Unified Export Strategy (UES) internet-based system will be 
used to receive ATP applications and to receive reimbursement requests 
from ATP Participants. This is the system that the CCC uses for 
applications to and reimbursement requests under similar CCC programs, 
including the Market Access Program (MAP), the Foreign Market 
Development Cooperator Program (FMD), the Emerging Markets Program 
(EMP), the Technical Assistance for Specialty Crops Program (TASC), and 
the Quality Samples Program (QSP). Any eligible organization that 
applied for the 2019 MAP and FMD will be able to add application 
information specific to the ATP to its existing 2019 UES submission. 
Details about this process will be announced in the ATP NOFAs.
    Information required in an applicant's application are detailed in 
the regulation and include, among other things, a program justification 
describing the current market situation and a strategic plan that 
describes all proposed activities and how they will help accomplish the 
applicant's objective to increase exports and develop access to new 
markets. The 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.
    Participants in the ATP will be required to 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 the CCC for all generic 
promotion activities proposed to be undertaken by the ATP Participant. 
Branded participants will also be required to contribute in goods, 
services, and/or cash equal to at least 50 percent of all brand 
promotion activities they undertake under the ATP.
    Lists of expenses eligible and ineligible for reimbursement under 
the ATP are also included in the regulation. Procedures for requesting 
reimbursement for eligible expenditures, or, if appropriate, for 
advances of program funds, are described in the regulation. Because it 
is critical that program funds are managed and accounted for properly, 
and focused on achieving results, paragraphs regarding financial 
management, reporting on outcomes that tie assistance directly to 
increased trade, evaluation, compliance review, and ethical conduct are 
included. Finally, to ensure that funds provided under the ATP are 
expended in a cost-effective manner and protected from fraud, 
provisions regarding contracting and anti-fraud requirements are 
delineated in the regulation.

Effective Date

    The Administrative Procedure Act (5 U.S.C. 553) provides that 
notice and comment and a 30-day delay in the effective date of the rule 
are not required when the rule involves specified actions, including 
matters relating to grants or benefits. This rule establishes 
procedures and conditions related to the provision of assistance to 
entities conducting activities that promote U.S. agricultural 
commodities in foreign markets and thus falls within that exemption. 
Accordingly, this rule is effective upon publication in the Federal 
Register. Further, the opportunity for notice and comment provided in 
this document is limited to the PRA requirements for the information 
collection activities.

Executive Orders 12866, 13563, 13771 and 13777

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
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 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. Executive Order 13777, 
``Enforcing the Regulatory Reform Agenda,'' established a federal 
policy to alleviate unnecessary regulatory burdens on the American 
people.
    The Office of Management and Budget (OMB) designated this rule as 
economically significant under Executive Order 12866, ``Regulatory 
Planning and Review,'' and therefore, OMB has reviewed this rule. The 
costs and benefits of this rule are summarized below. The full cost 
benefit analysis is available on regulations.gov.
    Executive Order 13771, ``Reducing Regulation and Controlling 
Regulatory Costs,'' requires that for every new significant or 
economically significant regulation issued, the new costs must be 
offset by the elimination of at least two prior regulations. This rule 
is considered an E.O. 13771 regulatory action. The $200 million upfront 
cost, when annualized over a perpetual time horizon and discounted back 
to its 2016 equivalent using a 7 percent discount rate, is 
approximately $11 million.

Cost Benefit Analysis Summary

    The ATP is a program to help U.S. organizations that promote the 
export of U.S. agricultural commodities adjust to changes in export 
markets due to recent trade disruptions by providing funding to modify 
promotional efforts in disrupted markets and to increase promotional 
efforts in undisrupted markets. Up to $200 million is available for 
assistance through the ATP.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA, 
Pub. L. 104-121), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule whenever an agency is required by the 
Administrative Procedure Act or any other law to publish a proposed 
rule, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule is not subject to the Regulatory Flexibility Act because the 
CCC is not required by the Administrative Procedure Act or any other 
law to publish a proposed rule for this rulemaking.

Environmental Assessment

    The CCC has determined that the ATP 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) (42 U.S.C. 4321-4347), no environmental assessment or 
environmental impact statement will be prepared for this regulatory 
action.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affect by 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 State and local government coordination and review 
of proposed Federal financial

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assistance and direct Federal development. For reasons specified in the 
final rule related notice to 7 CFR part 3015, subpart V (48 FR 29115, 
June 24, 1983), the programs and activities within this rule are 
excluded from the scope of Executive Order 12372.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. The rule will not have retroactive effect. 
Before any judicial action may be brought regarding the provisions of 
this rule, the administrative appeal provisions of 7 CFR part 11 and 
this part must be exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

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 required tribal consultation under Executive 
Order 13175. If a tribe requests consultation, FAS will work with USDA 
Office of Tribal Relations to ensure meaningful consultation is 
provided where changes, additions, and modifications identified herein 
are not expressly mandated by Congress.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State local, and Tribal governments or the 
private sector. Agencies generally must prepare a written statement, 
including a cost benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under SBREFA. SBREFA normally 
requires that an agency delay the effective date of a major rule for 60 
days from the date of publication to allow for Congressional review.

Federal Assistance Programs

    The title and number of the Federal Domestic Assistance Program 
found in the Catalog of Federal Domestic Assistance to which this rule 
applies is TBD--Agricultural Trade Promotion Program and number.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (PRA), the 
following new information collection request that supports ATP was 
submitted to OMB for emergency approval. OMB approved the 6-month 
emergency information collection. Since the information collection 
activities will continue for more than the approved 6 months, in 
addition, through this rule, the CCC is requesting comments from 
interested individuals and organizations on the information collection 
activities related to the ATP as described in this rule. Following the 
60-day public comment period for this rule, the information collection 
request will be submitted to OMB for the 3-year approval to ensure 
adequate time for the information collection for the duration of the 
ATP.
    Title: Agricultural Trade Promotion Program.
    OMB Control Number: 0551-New.
    Type of Request: New Collection.
    Abstract: This information collection is required to support the 
regulation in 7 CFR part 1489 for the ATP. The primary objective of the 
ATP is to encourage and aid in the creation, maintenance, and expansion 
of commercial export markets for U.S. agricultural products through 
cost-share assistance to eligible organizations. The program is a 
cooperative effort between the CCC and the eligible organizations. 
Currently, FAS anticipates that about 70 organizations will participate 
directly in the program with activities in more than 100 countries.
    Prior to initiating program activities, each ATP Participant must 
submit a detailed application to FAS which includes an assessment of 
overseas market potential; market or country strategies, constraints, 
goals, and benchmarks; proposed market promotion activities; estimated 
budgets; and a methodology to track program results (including 
performance measurement). Each Participant is also responsible for 
submitting: (1) Reimbursement claims for approved costs incurred in 
carrying out approved activities, (2) an end-of-year contribution 
report, (3) travel reports, and (4) progress reports/evaluation 
studies. Participants must maintain records on all information 
submitted to FAS. The information collected is used by FAS to manage, 
plan, evaluate, and account for Government resources. The reports and 
records are required to ensure the proper and judicious use of public 
funds. For the following estimated total annual burden on respondents, 
the formula used to calculate the total burden hour is the estimated 
average time per response multiplied by the estimated total annual 
responses.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 15 hours per response.
    Respondents: Nonprofit agricultural trade organizations, state 
regional trade groups, agricultural cooperatives, state agencies, and 
commercial entities.
    Estimated Number of Respondents: 70.
    Estimated Number of Responses per Respondent: 60.
    Estimated Total Annual Burden on Respondents: 63,000 hours.
    FAS is requesting comments on all aspects of this information 
collection to help us to:
    (1) Evaluate whether the collection of information is necessary for 
the proper performance of the functions of the FAS, including whether 
the information will have practical utility;

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    (2) Evaluate the accuracy of the FAS's estimate of burden including 
the validity of the methodology and assumptions used;
    (3) Enhance the quality, utility and clarity of the information to 
be collected;
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    All comments received, including names and addresses when provided, 
will be a matter of public record. Comments will be summarized and 
included in the submission for Office of Management and Budget 
approval.

List of Subjects in 7 CFR Part 1489

    Agricultural commodities, Exports.

    Accordingly, the CCC amends title 7 of the Code of Federal 
Regulations by adding part 1489 to read as follows:

PART 1489--AGRICULTURAL TRADE PROMOTION PROGRAM

Sec.
1489.10 General purpose and scope.
1489.11 Definitions.
1489.12 Participation eligibility.
1489.13 Application process.
1489.14 Application review and formation of agreements.
1489.15 Operational procedures for brand programs.
1489.16 Contribution rules.
1489.17 Reimbursement rules.
1489.18 Reimbursement procedures.
1489.19 Advances.
1489.20 Financial management.
1489.21 Reports.
1489.22 Evaluation.
1489.23 Compliance reviews and notices.
1489.24 Failure to make required contribution.
1489.25 Submissions.
1489.26 Disclosure of program information.
1489.27 Ethical conduct.
1489.28 Contracting procedures.
1489.29 Property standards.
1489.30 Anti-fraud requirements.
1489.31 Program income.
1489.32 Amendment.
1489.33 Noncompliance with an agreement.
1489.34 Suspension, termination, and closeout of agreements.
1489.35 Paperwork reduction requirements.

    Authority: Section 5(f) of the CCC Charter Act, 15 U.S.C. 
714c(f).


Sec.  1489.10  General purpose and scope.

    (a) This part sets forth the general terms, conditions, and 
policies governing the Commodity Credit Corporation's (CCC) operation 
of the Agricultural Trade Promotion Program (ATP). This program will 
provide assistance to eligible organizations to conduct market 
promotion activities, including activities to address existing or 
potential non-tariff barriers to trade, that promote U.S. agricultural 
commodities in foreign markets. Specific program requirements will be 
set forth in future Notices of Funds Availability announced through the 
Grants.gov website.
    (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 ATP and ATP participants, to the extent 
that these regulations of general application do not directly conflict 
with the provisions of this subpart. 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) 2 CFR part 417--Government-wide Debarment and Suspension (Non-
procurement).
    (v) 2 CFR part 418--New Restrictions on Lobbying.
    (vi) 2 CFR part 421--Requirements for Drug-Free Workplace 
(Financial Assistance).
    (vii) 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 the CCC are also applicable to the ATP and the 
regulations set forth in this part.
    (3) ATP Participants must also comply with Title VI of the Civil 
Rights Act of 1964 and related civil rights regulations and policies.
    (4) Other laws and regulations that apply to the ATP and ATP 
Participants include, but are not limited to:
    (i) 2 CFR part 25--Universal Identifier and Central Contractor 
Registration.
    (ii) 2 CFR part 170--Reporting Subaward and Executive Compensation 
Information.
    (iii) 2 CFR part 175--Award Term for Trafficking in Persons.
    (iv) 2 CFR part 180--OMB Guidelines to Agencies on Governmentwide 
Debarment and Suspension (Nonprocurement).
    (v) 2 CFR part 200--Office of Management and Budget Guidance, 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards.
    (vi) 2 CFR part 400--Department of Agriculture, Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards.
    (vii) 37 CFR part 401.1--Rights to Inventions Made by Nonprofit 
Organizations and Small Business Firms Under Government Grants, 
Contracts, and Cooperative Agreements.
    (viii) Executive Order 13224, as amended, Blocking Property and 
Prohibiting Transactions with Persons Who Commit, Threaten to Commit, 
or Support Terrorism.
    (c) Under the ATP, the CCC may provide multi-year grant assistance 
to eligible U.S. entities to conduct certain marketing and promotion 
activities, including activities to address existing or potential non-
tariff trade barriers, aimed at developing, maintaining, or expanding 
commercial export markets for U.S. agricultural commodities. ATP 
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. The 
CCC expects all activities that occur in the United States for which 
ATP reimbursement is sought to develop, maintain, or expand the 
commercial export market for the relevant U.S. agricultural commodity 
in accordance with the ATP Participant's approved ATP program. When 
considering eligible nonprofit U.S. trade organizations, the CCC gives 
priority to organizations that have the broadest producer 
representation and affiliated industry participation of the commodity 
being promoted.
    (d) The ATP generally operates on a reimbursement basis.
    (e) The CCC's policy is to ensure that benefits generated by ATP 
agreements are broadly available throughout the relevant agricultural 
sector and that no single entity gains an undue advantage. The CCC also 
endeavors to enter into ATP agreements covering a broad array of 
agricultural commodity sectors. The ATP is administered by personnel of 
the Foreign Agricultural Service (FAS) acting on behalf of the CCC.


Sec.  1489.11   Definitions.

    For purposes of this subpart the following definitions apply:
    Activity means a specific foreign market development effort 
undertaken by an ATP Participant.
    Administrative expenses or costs means expenses or costs of 
administering, directing, and controlling an organization that is an 
ATP Participant. Generally, this would include expenses or costs such 
as those related to:
    (1) Maintaining a physical office (including, but not limited to, 
rent,

[[Page 44182]]

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, email, mobile 
email 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 means a document by which the CCC informs an 
applicant that its ATP application 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 ATP Participant before it becomes effective.
    ATP means the Agricultural Trade Promotion Program.
    ATP Notice means Agricultural Trade Promotion Program notices are 
documents that CCC issues for informational purposes. These ATP notices 
are made available electronically at www.fas.usda.gov/programs/agricultural-trade-promotion-program-atp. These notices have no legal 
effect. They are intended to alert ATP Participants of various aspects 
of CCC's current administration of the ATP program. For example, CCC 
issues ATP notices to alert ATP Participants of procedures for 
requesting advances, applicable Federal pay scale rates, lists of 
economic and trade sanctions against certain foreign countries, 
reporting formats and computer codes to use with the UES.
    ATP Participant or Participant means an entity that has entered 
into an ATP program agreement with the CCC.
    Attach[eacute]/Counselor means the FAS employee representing USDA 
interests in the foreign country in which promotional activities are 
conducted.
    Brand participant means a U.S. for-profit entity or a 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 ATP brand promotion 
program of an ATP Participant. This definition does not include any 
U.S. agricultural cooperatives that are ATP Participants that apply for 
ATP 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 brand participant in the 
brand program.
    CCC means the Commodity Credit Corporation, including any agency or 
official of the United States delegated the responsibility to act on 
behalf of the CCC.
    Contribution means an expenditure made by an ATP Participant, the 
U.S. industry, or State agency in support of an approved activity. This 
includes expenditures to be made by entities in the ATP Participant's 
industry in support of the entities' related promotion activities in 
the markets covered by the ATP Participant's agreement.
    Credit memo means a commercial document, also known as a credit 
memorandum, issued by the ATP Participant to a commercial entity that 
owes the ATP Participant a certain sum. A credit memo is used when the 
ATP 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 ATP Participant owes the entity against the amount the 
entity owes to the ATP Participant.
    Demonstration projects means activities involving the erection or 
construction of a structure or facility or the installation of 
equipment.
    Expenditure means either payment via the transfer of funds or 
offset reflected in a credit memo in lieu of a transfer of funds.
    FAS means Foreign Agricultural Service, USDA.
    FAS website means a website maintained by FAS providing information 
on ATP. It is currently accessible at www.fas.usda.gov/programs/agricultural-trade-promotion-program-atp.
    Foreign third party means a foreign entity that an ATP Participant 
works with to promote the export of a U.S. agricultural commodity under 
the ATP program.
    Generic promotion means an activity that is not a brand promotion 
but, rather, promotes a U.S. agricultural 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 U.S. agricultural commodity 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 ATP 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 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.
    Market means the country or countries targeted by an activity.
    Notification means a document from the ATP Participant by which the 
ATP Participant proposes to CCC changes to the activities and/or 
funding levels in an approved ATP program 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 
must 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 agreement means a document entered into between CCC and an 
ATP Participant setting forth the terms and conditions of approved 
activities under ATP, including any subsequent amendments to such 
agreement.
    Program period means a 12-month period during which an ATP 
Participant can undertake activities consistent with this subpart and 
its program agreement and approval letter with CCC. Program periods 
will begin on January 1 and end on December 31 of the same year, or 
begin on July 1 and end on June 30 of the subsequent year.
    Promoted commodity means a U.S. agricultural commodity the sale of 
which is the intended result of a promotional activity.
    Sales and trade relations expenditures (STRE) means expenditures 
made on breakfast, lunch, dinner, receptions, and refreshments at 
approved activities; miscellaneous

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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. for-profit entity that meets the 
small business size standards published at 13 CFR part 121, Small 
Business Size Regulations.
    SRTG means State Regional Trade Group. An SRTG is a nonprofit 
association of state-funded agricultural promotion agencies.
    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 
activity intended to promote the interests of an entire agricultural 
sector rather than to result in specific sales by any of its members.
    UES website means a website maintained by FAS through which 
applicants may apply online to ATP and any other USDA market 
development program. The website is currently accessible to persons 
with e-authentication certification at https://apps.fas.usda.gov/ues/webapp/.
    Unified Export Strategy (UES) means a standardized online internet 
application developed by USDA and available for use by entities to 
apply to any USDA market development program, including the ATP.
    U.S. agricultural commodity means any agricultural commodity, 
including 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 means the United States Department of Agriculture.
    U.S. for-profit entity means a firm, 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.  1489.12   Participation eligibility.

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


Sec.  1489.13   Application process.

    (a) General application requirements. CCC will periodically issue a 
Notice of Funds Availability through the Grants.gov website that it is 
accepting applications for participation in the ATP. 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 website, but are not required to 
do so. Applicants may apply to conduct a generic promotion program and/
or a brand promotion program that provides ATP funds to brand 
participants for branded promotion, as well as to conduct other market 
promotion activities including activities to address existing or 
potential non-tariff trade barriers. An applicant that is a U.S. 
agricultural cooperative may also apply for funds to conduct its own 
brand promotion program.
    (1) Applicant and program information. All applications shall 
contain:
    (i) The name, address, and internet location of the home page of 
the applicant organization;
    (ii) The name of the applicant's Chief Executive Officer;
    (iii) The name, telephone number, fax number, and email address of 
the applicant's primary contact person;
    (iv) The name(s) of the person(s) responsible for managing the 
proposed program;
    (v) 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;
    (vi) Tax exempt identification number of the applicant, if 
applicable;
    (vii) Beginning and ending dates for proposed program period (mm/
dd/yy-mm/dd/yy);
    (viii) Dollar amount of CCC resources requested for generic 
activities;
    (ix) Dollar amount of CCC resources requested for brand activities;
    (x) Dollar amount of CCC resources requested for other market 
promotion activities, including activities to address existing or 
potential non-tariff trade barriers;
    (xi) Total dollar amount of CCC resources requested;
    (xii) Percentage of CCC resources requested for general 
administrative expenses;
    (xiii) A Dun and Bradstreet DUNS number for the applicant;
    (xiv) A description of the applicant organization's membership and 
membership criteria;
    (xv) A list of organizations affiliated with the applicant, 
including parent organizations, subsidiaries, and partnerships;
    (xvi) A description of the applicant's management and 
administrative capability;
    (xvii) A description of the applicant's prior export promotion 
experience;
    (xviii) Value, in U.S. dollars, of proposed contributions from the 
applicant or the applicant's proposed contribution stated as a 
percentage of the total dollar amount of CCC resources requested; and
    (xix) Value, in U.S. dollars, of proposed contributions from other 
sources.
    (2) Program justification. All applications shall contain:
    (i) A description of the promoted U.S. agricultural commodity(s), 
its harmonized tariff classification, the applicable commodity 
aggregate code (available from the UES website) and the percentage of 
U.S. origin content by weight, exclusive of added water;
    (ii) A description of the anticipated supply and demand situation 
for the promoted U.S. agricultural commodity(s) as well as a 
demonstration of loss suffered as a result of imposed tariffs (reduced 
sales, lost revenue, and decreased market share, etc.);
    (iii) 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;
    (iv) If the proposal is for 2 or more years, an explanation why the 
proposal should be funded on a multi-year basis; and
    (v) 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 CCC market development programs from year-
to-year, variations in promotional

[[Page 44184]]

strategies within a country, and new markets.
    (3) Proposed program's strategic plan. (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) An evaluation plan describing the applicant's goals and the 
applicant's plans for monitoring and evaluating performance towards 
achieving these goals. This evaluation plan should set 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 ATP 
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 ATP and of 
individual Participants' programming is to restore or increase sales 
that would not have occurred in the absence of ATP funding. An ATP 
Participant may modify and resubmit this plan for re-approval at any 
time during the program period.
    (F) For each target country, five years or as many years as are 
available of:
    (1) Historical U.S. export data;
    (2) U.S. market share; and
    (3) CCC market development program funds received by the applicant;
    (G) For each target country, three 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 description of any demonstration projects, if applicable;
    (J) Data summarizing the applicant's historical and projected 
exports, market share, and CCC market development program budgets of 
the promoted U.S. agricultural commodity(s);
    (K) 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.
    (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 and U.S. agricultural cooperatives.
    (b) Requests for addition evaluation information. 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. CCC will consider proposals for demonstration projects, 
provided:
    (1) No more than one such demonstration project per constraint is 
undertaken within a market;
    (2) The constraint to be addressed in the target market is a lack 
of technical knowledge or expertise;
    (3) The demonstration project is a practical and cost effective 
method of overcoming the constraint; and
    (4) A third-party must participate in such project through a 
written agreement with the ATP Participant.
    (d) Universal Identifier and Central Contractor Registration (CCR). 
In accordance with 2 CFR part 25, each entity that applies to the ATP 
program and does not qualify for an exemption under 2 CFR 25.110 must:
    (1) Be registered in the CCR prior to submitting an application or 
plan;
    (2) Maintain an active CCR 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 in each application or plan it submits 
to CCC.
    (e) Reporting Subaward and Executive Compensation Information. In 
accordance with 2 CFR part 170, each entity that applies to the ATP 
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 ATP funding.


Sec.  1489.14   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 ATP through 
another ATP Participant.
    (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 respect to 
nonprofit U.S. trade organizations, preference will be given to those 
organizations with the broadest base of producer representation of and 
affiliated industry participation for the commodity being promoted;
    (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 CCC market development 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 period's 
ATP Notice of Funds Availability announcement:
    (1) Size of the budget request in relation to projected value of 
exports;

[[Page 44185]]

    (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 to meet minimum cost share requirements;
    (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) Proposed ATP-funded general administrative and overhead costs 
compared to proposed ATP-funded direct promotional costs; and
    (d) Approval decision--(1) Approval criteria and factors. CCC will 
approve those applications that it determines best satisfy the criteria 
and factors specified in paragraphs (b) and (c) of this section.
    (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 an ATP 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 and the approval letter must so indicate 
by having its Chief Executive Officer (CEO) or designee sign the 
program agreement or amendment and the approval letter and submit these 
to CCC. Final agreement shall occur when the program agreement or 
amendment and the approval letter are signed by both parties.
    (f) Signature cards. The ATP Participant shall designate at least 
two individuals in its organization to sign program agreements and 
amendments, approval letters, reimbursement claims, and advance 
requests. The ATP Participant shall submit the signature card signed by 
those designated individuals and by the ATP 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 ATP Participant 
with IDs and passwords for the UES website, as necessary. ATP 
Participants shall protect these IDs and passwords in accordance with 
USDA's information technology policies that CCC will provide to ATP 
Participants. ATP 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) Annual certifications. An ATP Participant through which U.S. 
for-profit entities are participating in the ATP program shall obtain 
annual certifications from all such entities that certify their size or 
their status as U.S. agricultural cooperatives, as defined in these 
regulations. The Participant shall retain these certifications in 
accordance with the recordkeeping requirements of this part.
    (i) Changes to activities and funding--(1) Adding a new activity. 
(i) An ATP 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 ATP 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 market, constraint, or opportunity 
that the activity proposes to address. 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 ATP 
Participant via the UES website whether the requested budget is 
approved.
    (2) Modifying existing activities and their funding levels. (i) An 
ATP 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) An ATP Participant may make significant adjustments below that 
threshold to the funding levels for existing, approved activities 
without prior notification to CCC, only if it submits a notification 
explaining the adjustments to CCC no later than 30 days after the 
change. Minor adjustments to existing, approved activities and/or 
funding levels do not require notification.
    (iii) Notifications shall describe the activity, changes to the 
activity, the existing funding level, the proposed funding level, and a 
justification for transfer of funds, if applicable.


Sec.  1489.15   Operational procedures for brand programs.

    (a) Where CCC approves an application by an ATP Participant to run 
a brand promotion program that will include brand participants, the ATP 
Participant shall establish brand program operational procedures. The 
ATP Participant shall submit to CCC for approval its proposed brand 
program operational procedures. CCC will notify all ATP 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 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. The ATP Participant must 
submit to CCC for approval any proposed changes to already approved 
brand program operational procedures before implementing such proposed 
changes.
    (b) The ATP Participant shall not enter into any participation 
agreements with brand participants nor shall it implement any ATP brand 
activities unless and until CCC has communicated in writing its 
approval of the proposed operational procedures to the ATP Participant.
    (c) Participation agreements between ATP Participants and brand 
participants: Where CCC approves an ATP Participant's application to 
run a brand promotion program that will include brand participants, the 
ATP Participant shall enter into participation agreements with brand 
participants. Brand participants' size may not exceed 300 percent of 
the applicable small business size standard. These agreements must:
    (1) Specify a time period for such brand promotion and require that 
all brand promotion expenditures be made within the ATP Participant's 
approved program period;
    (2) Make no allowance for extension or renewal;
    (3) Limit reimbursable expenditures to those made in countries and 
for

[[Page 44186]]

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 U.S. agricultural 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 the 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 the above terms as a descriptor 
or in the name of the product (e.g., Cincinnati style chili, Gina's 
American Pizza) does not satisfy the product origin requirement. 
Phrases ``product of'', ``grown in'' or ``made in'' are encouraged, but 
not required. An ATP 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 the CCC that this 
labeling requirement would hinder an ATP 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, the CCC may temporarily waive this 
requirement where the CCC has determined that such labeling will likely 
harm sales rather than help them. Such determinations will be announced 
to ATP Participants via an ATP notice issued on the FAS website;
    (7) Include a written certification by the brand participant that 
identifies its size on the date of its application for branded program 
funding or that it is a U.S. agricultural cooperative;
    (8) Require that the brand participant submit to the ATP 
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 brand participant to maintain all original records 
and documents relating to program activities for three calendar years 
following the end of the applicable program period and make such 
records and documents available upon request to authorized officials of 
the U.S. Government.


Sec.  1489.16   Contribution rules.

    (a) In ATP generic promotion programs, an ATP 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 the CCC 
for all generic promotion activities proposed to be undertaken by the 
ATP Participant.
    (b) In ATP brand promotion programs, an ATP Participant conducting 
its own brand promotion that is a U.S. agricultural cooperative or a 
small-sized brand participant shall contribute at least 50 percent of 
the total eligible expenditures made on each approved brand promotion.
    (c) An ATP Participant must use its own funds and may not use ATP 
program funds to pay any administrative costs of the ATP Participant's 
U.S. office(s), including legal fees, except as set forth in this 
subpart. Where the ATP Participant uses its own funds to pay for 
administrative costs, such costs may be counted in calculating the 
amount of contributions the ATP Participant contributes to ATP generic 
or brand promotion programs.
    (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 or agricultural sector 
in support of the entities' related promotion activities in the markets 
covered by the applicant's application) or State agency will make, the 
ATP applicant may include the 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 contributions 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.
    (2) Subject to paragraph (d)(1) of this section, as well as 
applicable cost principles (e.g., 2 CFR part 200) to the extent these 
principles do not directly conflict with the provisions of this 
subpart, 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 subscriptions that are of a technical, economic, 
or marketing nature and that are relevant to the approved activities of 
the ATP Participant;
    (ix) The cost of activities conducted overseas;
    (x) Credit card fees;
    (xi) The cost of any independent evaluation or audit that is not 
required by the CCC to ensure compliance with program agreement or 
regulatory requirements;
    (xii) The cost of giveaways, awards, prizes and gifts;
    (xiii) The cost of product samples;
    (xiv) Fees for participating in U.S. government sponsored or 
endorsed export promotion activities;
    (xv) The cost of air and local travel in the United States;
    (xvi) STRE and the cost associated with trade shows, seminars, and 
entertainment conducted in the United States where the STRE and costs 
associated with trade shows, seminars, and entertainment have a 
programmatic purpose and are authorized in the program agreement and/or 
the approval letter or authorized by prior written approval of the CCC;
    (xvii) Other administrative expenses (e.g., supervisory travel from 
the U.S. to an overseas office); and
    (xviii) 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'');

[[Page 44187]]

    (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, except as described in Sec.  1489.17(c)(22);
    (viii) Slotting fees or similar sales expenditures;
    (ix) Membership fees in clubs and social organizations; and
    (x) Any expenditure for an activity prior to the CCC's approval of 
that activity.
    (4) The CCC shall determine, at the CCC's discretion, whether any 
cost not expressly listed in this section may be included by the ATP 
Participant as an eligible contribution.


Sec.  1489.17  Reimbursement rules.

    (a) An ATP Participant may seek reimbursement for an eligible 
expenditure if:
    (1) The expenditure was necessary and reasonable for accomplishment 
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 
applicable cost principles (e.g., 2 CFR part 200) to the extent these 
principles do not directly conflict with the provisions of this 
subpart, for either brand or generic promotion activities, the 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, except that advertising associated 
with a coupon or price discount for the ATP-promoted product is not 
reimbursable. If advertising is related to both coupons or price 
discounts for products other than the ATP Participant's promoted 
products as well as for ATP-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, except as authorized in 
paragraph (c)(9) of this section).
    (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;
    (7) Subject to paragraph (b)(18) of this section, expenditures, 
other than travel expenditures, associated with retail, trade and 
consumer exhibits and shows, whether held outside or inside the United 
States, including participation fees, booth construction, 
transportation of related materials, rental of space and equipment, and 
duplication of related printed materials. However, with regard to non-
travel expenditures associated with retail, trade and consumer exhibits 
and shows held inside the United States, such expenditures are 
reimbursable only if the exhibit or show is: A food or agricultural 
show with no less than 30 percent of exhibitors selling food or 
agricultural products; and an international show that targets buyers, 
distributors and the like from more than one foreign country and no 
less than 15 percent of its visitors are from countries other than the 
host country. CCC will compile a list of approved retail, trade and 
consumer exhibits and shows held inside the United States for which ATP 
reimbursement is available and such list will be announced to ATP 
Participants via an ATP notice issued on FAS' website;
    (8) Subject to paragraph (b)(18) of this section, international 
travel expenditures, not to exceed the full fare economy rate, 
including any fees for modifying the originally purchased airline 
ticket, per diem, passports, visas and inoculations, as allowed under 
the U.S. Federal Travel Regulations (41 CFR parts 301 through 304) and 
2 CFR part 200, for no more than two representatives of a single brand 
participant (or ATP 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. All travel should follow a direct or usually traveled 
route;
    (9) Subscriptions that are of a technical, economic, or marketing 
nature and that are relevant to the approved activities of the ATP 
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 ATP Participants via an ATP 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 period 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 ATP Participant's promoted products. If such 
activities include both coupons or price discounts for products other 
than the ATP Participant's promoted products as well as for ATP-
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 an ATP Participant as required by 2 CFR part 200, 
subpart F, if the ATP is the ATP 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, not to exceed the full fare 
economy rate, including any fees for modifying the originally purchased 
airline ticket, per diem, passports, visas and inoculations, as allowed 
under the U.S. Federal Travel Regulations (41 CFR parts 301 through 
304) and 2 CFR part 200,

[[Page 44188]]

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 
ATP 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) The ATP 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:
    (A) A product showcase where the FAS overseas office approved an 
invitation list of qualified buyers;
    (B) Pre-arranged one-on-one business meetings; and
    (C) Evaluation and feedback sessions with FAS staff and trade 
mission sponsors.
    (v) Reimbursement is conditional on the ATP Participant having 
notified in writing the Attach[eacute]/Counselor in the destination 
country in advance of the travel. All travel should follow a direct or 
usually traveled route;
    (18) Where USDA has sponsored or endorsed a U.S. pavilion at a 
retail, trade and consumer exhibit or show, whether held outside or 
inside the United States, ATP funds may be used to reimburse the travel 
and/or non-travel expenditures of only those ATP Participants located 
within the U.S. pavilion. Such expenditures must also adhere to the 
standard terms and conditions of the U.S. pavilion organizer. All 
travel should follow a direct or usually traveled route. Upon written 
request, the CCC may temporarily waive this subsection, on a case by 
case basis, where:
    (i) The trade show is segregated into product pavilions; or
    (ii) A company's distributor or importer is located outside the 
U.S. pavilion. Such waiver will be provided to the ATP Participant in 
writing; and
    (19) Contracts with U.S.-based organizations when the only 
contracted service such organizations provide to an ATP 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 ATP Participant's 
domestic home office during a program period, any direct promotional 
services such organization provides to the Participant, whether for the 
Participant's domestic or overseas offices, during the same program 
period are not reimbursable.
    (c) Subject to paragraphs (a) and (d) of this section as well as 
applicable cost principles (e.g., 2 CFR part 200), but for generic 
promotion activities only, the CCC will also reimburse, in whole or in 
part, the cost of:
    (1) Temporary contractor fees for contractors stationed overseas, 
except the 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;
    (2) Subject to paragraph (b)(18) of this section, international 
travel expenditures, not to exceed the full fare economy rate, 
including any fees for modifying the originally purchased airline 
ticket, per diem, passports, visas and inoculations, for activities 
held outside the United States or in the United States, as allowed 
under the U.S. Federal Travel Regulations (41 CFR parts 301 through 
304) and 2 CFR part 200, 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 covered only if the 
exhibit or show is: A food or agricultural show with no less than 30 
percent of exhibitors selling food or agricultural products; and an 
international show that targets buyers, distributors and the like from 
more than one foreign country and no less than 15 percent of its 
visitors are from countries other than the United States. The CCC will 
compile a list of approved retail, trade and consumer exhibits and 
shows held inside the United States for which ATP reimbursement is 
available and such list will be announced to ATP Participants via an 
ATP notice issued on FAS' website.
    (i) The 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 or when the ATP 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 and the ATP 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 ATP Participant shall 
provide documentation establishing such average of the full fare 
economy class rates to support its reimbursement claim.
    (ii) In limited circumstances, the ATP 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) upon prior written 
approval by the CCC. Such circumstances are:
    (A) Regularly scheduled flights between origin and destination 
points do not offer economy class (or equivalent) airfare and the ATP 
Participant receives written documentation from its travel agent 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; and
    (C) If an eligible traveler is an employee, contractor, or member 
of an ATP participant organization, and the 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, 
ending with the scheduled arrival time, and including stopovers and 
changes of planes, exceeds 14 hours. In such case, 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.) 
immediately following the date of arrival.
    (D) If an eligible traveler is the target of a market development 
activity (e.g., a foreign buyer, foreign importer, member of the 
foreign media) the ATP Participant may be reimbursed for air travel up 
to the business class rate when the eligible traveler's origin and/or

[[Page 44189]]

destination are outside of the continental United States and the 
scheduled flight time, beginning with the scheduled departure time, 
ending with the scheduled arrival time, and including stopovers and 
changes of planes, exceeds five hours. In such case, 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.) 
immediately following the date of arrival.
    (iii) Alternatively, in lieu of reimbursing up to the business 
class rate in such circumstances noted in paragraphs (c)(2)(ii)(C) and 
(d) of this section, the 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.
    (iv) A stopover for purposes of this paragraph (c)(2) 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.
    (v) All travel under this paragraph (c)(2) 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. An eligible traveler that is the target of a 
market development activity is only eligible for a rest period when 
that traveler flies in economy class and meets the 14-hour test;
    (3) Automobile mileage at the local U.S. Embassy rate or rental 
cars while in travel status;
    (4) Other allowable expenditures while in travel status as 
authorized by the U.S. Federal Travel Regulations (41 CFR parts 301 
through 304) and 2 CFR part 200;
    (5) Accident liability insurance premiums for facilities used 
jointly with third-party participants for ATP activities or for ATP-
funded travel of third-party participants;
    (6) Market research, including research to determine the types of 
products that are desired in a market;
    (7) Legal fees incurred in resolving trade issues with foreign 
countries;
    (8) The sample purchase price, and the cost of transporting samples 
domestically in the United States to the port of export and then to the 
first foreign port or first point of entry, for samples of U.S. 
agricultural commodities used to provide on-site technical assistance 
to the trade necessary to facilitate successful use of the relevant 
U.S. agricultural commodity by importers. The target of such activity 
must be the trade, and not consumers, but any product resulting from 
the technical training can be used to determine consumer preferences;
    (9) STRE incurred outside of the United States and STRE incurred 
within the United States in conjunction with an approved activity where 
the STRE has a programmatic purpose and are authorized with prior 
written approval from the CCC. ATP Participants are required to use the 
appropriate American Embassy representational funding guidelines for 
breakfasts, lunches, dinners and receptions incurred outside of the 
United States as the basis for their calculating eligible expenses. ATP 
Participants may exceed Embassy guidelines by 25 percent without prior 
approval. ATP Participants may only exceed 125 percent of Embassy 
guidelines when they have received written authorization from the FAS 
Agricultural Counselor at the Embassy. The amount of unauthorized STRE 
expenses that exceed 125 percent of the guidelines will not be 
reimbursed. ATP Participants must pay the difference between the total 
cost of STRE events and the appropriate amount as determined by the 
guidelines and these regulations. For STRE incurred in the United 
States, the ATP Participant should provide, in its request for 
approval, the basis for determining its proposed expenses;
    (10) U.S. office(s) administrative support expenses, incurred 
specifically to administer the ATP, for the National Association of 
State Departments of Agriculture, the SRTGs, and the Intertribal 
Agriculture Council. The level of such funding will be established in 
the approval letter.
    (11) U.S. office(s) administrative support expenses, incurred 
specifically to administer the ATP, for any ATP Participants not 
identified in this paragraph (c)(11), will be considered, except for 
agricultural cooperatives. Reimbursement for such expenses shall not 
exceed six percent of the ATP Participant's total ATP budget. The level 
of such funding will be established in the approval letter.
    (13) Non-travel expenditures associated with conducting 
international staff conferences held either in or outside the United 
States;
    (14) Subject to paragraph (b)(18) of this section, domestic travel 
expenditures, as allowed under the U.S. Federal Travel Regulations (41 
CFR parts 301 through 304) and 2 CFR part 200, for international 
retail, trade and consumer exhibits and shows conducted in the United 
States upon prior written approval by CCC. Domestic travel expenses to 
such a show or exhibit are covered only if the exhibit or show is: A 
food or agricultural show with no less than 30 percent of exhibitors 
selling food or agricultural products; and an international show that 
targets buyers, distributors and the like from more than one foreign 
country and no less than 15 percent of its visitors are from countries 
other than the host country. CCC will compile a list of approved 
retail, trade and consumer exhibits and shows held inside the United 
States for which ATP reimbursement is available and such list will be 
announced to ATP Participants via an ATP notice issued on FAS' website;
    (15) Domestic travel expenditures, as allowed under the U.S. 
Federal Travel Regulations (41 CFR parts 301 through 304) and 2 CFR 
part 200, for seminars and educational training conducted in the United 
States;
    (16) Domestic travel expenditures, as allowed under the U.S. 
Federal Travel Regulations (41 CFR parts 301 through 304) and 2 CFR 
part 200, for up to two individuals, whether home office ATP 
Participant employees, ATP Participant board members, or state 
department of agriculture employees paid by the ATP Participant, or a 
combination thereof, when such individuals accompany 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 ATP Participant's UES;
    (ii) Such trade missions or technical team visits have been 
approved by CCC; and
    (iii) The ATP-sponsored travelers submit a follow-up trip report to 
CCC that includes the following:
    (A) Purpose for the individuals' participation;
    (B) Any pre-arranged business meetings;
    (C) Itinerary and/or agenda for the trip; and

[[Page 44190]]

    (D) Feedback from sponsors and trade mission/technical team members 
on the success of the trip.
    (17) Approved demonstration projects;
    (18) Expenditures related to copyright, trademark, or patent 
registration, including attorney fees;
    (19) Rental or lease expenditures for storage space for program-
related materials;
    (20) Business cards that target a foreign audience;
    (21)(i) Expenditures associated with developing, updating, and 
servicing websites on the internet that:
    (A) Contain a message related to exporting or international trade;
    (B) Include a discernible ``link'' to the FAS website or an FAS 
overseas office website; and
    (C) Have been specifically approved by the appropriate FAS 
division. Expenditures related to websites or portions of websites that 
are accessible only to an organization's members are not reimbursable.
    (ii) Reimbursement claims for websites that include ``members 
only'' sections must be prorated to exclude the costs associated with 
those areas subject to restricted access; and
    (22) 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 non-tariff barriers to trade that prohibit or 
threaten U.S. exports of agricultural commodities. Examples of such 
expenditures include, but are not limited to: Initial pre-clearance 
programs, educational training, policy advocacy, public relations 
efforts, foreign country audits of U.S. facilities, export protocol and 
work plan support, seminars and workshops, study tours, field surveys, 
development of pest lists, pest and disease research, database 
development, and reasonable logistical and administrative support.
    (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, or judgments relating to legal 
suits, challenges or disputes, except as otherwise allowed in 2 CFR 
part 200 and these regulations;
    (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, 
except as specified in paragraph (c)(22) of this section;
    (5) Product samples to be distributed to consumers;
    (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 period. 
However, the 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 the 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 ATP promoted 
commodity;
    (10) Refundable deposits or advances;
    (11) Giveaways, awards, prizes, gifts and other similar promotional 
materials in excess of the limitation that the CCC will determine. Such 
determination will be announced in writing via an ATP notice issued on 
FAS' website;
    (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 the 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, except as otherwise allowed in 2 
CFR part 200;
    (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 ATP Participant;
    (26) U.S. office(s) administrative expenses, including 
communication costs, except as noted in paragraphs (c)(11) and (12) of 
this section and except that usage costs for communications devices 
incurred while on reimbursable international or domestic travel for 
approved ATP brand or generic promotion activities are reimbursable as 
eligible travel expenditures as allowed under the U.S. Federal Travel 
Regulations (41 CFR parts 301 through 304) and 2 CFR part 200;
    (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;
    (29) Any expenditure made for an activity prior to the 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; and
    (31) Expenditures associated with an ATP Participant's creation or 
review of their fraud prevention program, contracting procedures, or 
brand program operational procedures.
    (e) For a brand promotion activity, the CCC will reimburse no more 
than 50 percent of the total eligible expenditures made on that 
activity by a brand participant.
    (f) The CCC will reimburse for expenditures made after the 
conclusion of an ATP Participant's program period provided:
    (1) The activity was approved by the CCC prior to the end of the 
program period;
    (2) The activity was completed within 30 calendar days following 
the end of the program period; and
    (3) All expenditures were made for the activity within 6 months 
following the end of the program period.
    (g) An ATP Participant shall not use ATP funds for any activity or 
any expenses incurred by the ATP Participant prior to the date of the 
program agreement or after the date the program agreement is suspended 
or terminated, except as otherwise permitted by the CCC.
    (h) Except as otherwise provided in this subpart, ATP-funded travel 
shall conform to U.S. Federal Travel Regulations (41 CFR parts 301 
through 304) and 2 CFR part 200 and ATP-

[[Page 44191]]

funded air travel shall conform to the requirements of the Fly America 
Act (49 U.S.C. 40118). For international travel, the ATP Participant 
shall notify the Attach[eacute]/Counselor in the destination countries 
in writing in advance of any proposed travel.
    (i) The CCC may determine, at the CCC's discretion, whether any 
cost not expressly listed in this section will be reimbursed.


Sec.  1489.18   Reimbursement procedures.

    (a) Participants are required to use the CCC's UES system to 
request reimbursement for eligible ATP expenses. Claims for 
reimbursement shall contain the following information:
    (1) Activity type--brand or generic;
    (2) Activity number;
    (3) Commodity aggregate code;
    (4) Country code;
    (5) Cost category;
    (6) Amount to be reimbursed;
    (7) If applicable, any reduction in the amount of reimbursement 
claimed to offset CCC demand for refund of amounts previously 
reimbursed and reference to the relevant compliance report or written 
notice; and
    (8) If applicable, any amount previously claimed that has not been 
reimbursed.
    (b) All claims for reimbursement shall be submitted by the ATP 
Participant's U.S. office to the CCC.
    (c) CCC will not reimburse a claim for less than $10,000, except 
that the CCC will reimburse a final claim for an ATP Participant's 
program period for a lesser amount.
    (d) The CCC will not reimburse claims submitted later than 6 months 
after the end of an ATP Participant's program period.
    (e) If the CCC overpays a reimbursement claim, the ATP Participant 
shall repay the CCC within 30 days of such overpayment the amount of 
the overpayment either by submitting a check payable to the CCC or by 
offsetting its next reimbursement claim. The ATP Participant shall make 
such payment in U.S. dollars, unless otherwise approved in advance by 
the CCC.
    (f) If an ATP Participant receives a reimbursement or offsets an 
advanced payment which is later disallowed, the ATP Participant shall 
repay the CCC within 30 days of such disallowance the amount disallowed 
either by submitting a check payable to the CCC or by offsetting its 
next reimbursement claim. The ATP Participant shall make such payment 
in U.S. dollars, unless otherwise approved in advance by the CCC.
    (g) ATP funds may be expended by ATP Participants only on 
legitimate, approved activities as set forth in the program agreement 
and approval letter. If an ATP Participant discovers that ATP funds 
have not been properly spent, it shall notify the CCC and shall within 
30 days of its discovery repay the CCC the amount owed either by 
submitting a check payable to the CCC or by offsetting its next 
reimbursement claim. The ATP Participant shall make such payment in 
U.S. dollars, unless otherwise approved in advance by the CCC.
    (h) The ATP Participant shall report any actions that may have a 
bearing on the propriety of any claims for reimbursement in writing to 
CCC.


Sec.  1489.19  Advances.

    (a) Policy. In general, the CCC operates the ATP on a reimbursable 
basis.
    (b) Exception. An ATP Participant for generic promotion activities 
may request an advance of ATP funds from the CCC, provided the ATP 
Participant meets the criteria for advance payments in 2 CFR part 200. 
The CCC will not approve any request for an advance submitted later 
than 3 months after the end of an ATP Participant's program period. At 
any given time, total payments advanced shall not exceed 40 percent of 
an ATP Participant's approved generic activity budget for the program 
period. The CCC will not advance funds to an ATP Participant for brand 
promotion activities. When approving a request for an advance, the CCC 
may require the ATP 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 ATP. 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 ATP; 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. An ATP Participant shall deposit and maintain in an 
insured bank account in the United States all funds advanced by the 
CCC. The account shall be interest-bearing, unless the exceptions in 2 
CFR part 200 apply. Interest earned by the ATP Participant on funds 
advanced by the CCC is not program income. The ATP Participant shall 
remit any interest earned on the advanced funds to the appropriate 
entity as set forth in the applicable parts of this title.
    (d) Refunds due the CCC. An ATP Participant shall fully expend all 
advances on approved generic promotion activities within 90 calendar 
days after the date of disbursement by the CCC. By the end of the 90 
calendar days, the ATP Participant must submit reimbursement claims to 
offset the advance and submit a check made payable to CCC for any 
unexpended balance. The ATP Participant shall make such payment in U.S. 
dollars, unless otherwise approved in advance by the CCC.


Sec.  1489.20   Financial management.

    (a) An ATP Participant shall implement and maintain a financial 
management system that conforms to generally accepted accounting 
principles. An ATP Participant's financial management system shall 
comply with the standards in 2 CFR part 200.
    (b) An ATP Participant shall institute internal controls and 
provide written guidance to commercial entities participating in its 
activities to ensure their compliance with these regulations.
    (c) An ATP Participant shall retain all records concerning an ATP 
program transaction for a period of three years after completion of the 
program transaction and permit the CCC to have full and complete 
access, for such three year period, to such records. These records 
shall include all records pertaining to contractors.
    (d) An ATP Participant shall maintain its records of expenditures 
and contributions in a manner that allows it to provide information by 
activity plan, country, activity number, and cost category. Such 
records shall include:
    (1) Receipts for all STRE (actual vendor invoices or restaurant 
checks, rather than credit card receipts);
    (2) Original receipts for any other program-related expenditure in 
excess of a set amount CCC will determine and announce in writing to 
all ATP Participants via an ATP notice issued on the FAS website. The 
CCC may, from time to time, set a different minimum amount. In that 
case, the CCC will announce the new amount in writing to all ATP 
Participants via an ATP notice issued on the FAS website;
    (3) The exchange rate used to calculate the dollar equivalent of 
expenditures made in a foreign currency and the basis for such 
calculation;
    (4) Copies of reimbursement claims;
    (5) An itemized list of claims charged to each of the ATP 
Participant's CCC resources accounts;
    (6) Documentation with accompanying English translation supporting 
each reimbursement claim, including original evidence to support the 
financial transactions such as

[[Page 44192]]

canceled checks, receipted paid bills, contracts or purchase orders, 
per diem calculations, travel vouchers, and credit memos; and
    (7) Documentation supporting contributions. These must include the 
dates, purpose, and location of the activity for which the cash or in-
kind items were claimed as a contribution; who conducted the activity; 
the participating groups or individuals; and, the method of computing 
the claimed contributions. ATP Participants must retain and make 
available for compliance review documentation related to claimed 
contributions.
    (e) Upon request, an ATP Participant shall provide to the CCC 
originals of documents supporting reimbursement claims.


Sec.  1489.21  Reports.

    (a) End-of-Year Contribution Report. Not later than 6 months after 
the end of its program period, an ATP Participant shall submit two 
copies of a report that identifies, by cost category and in U.S. dollar 
equivalent, contributions made by the Participant, the U.S. industry, 
and the States during that program period. A suggested format of a 
contribution report is available from FAS. Foreign third party 
contributions are not included in the end-of-year contribution report.
    (b) Trip reports. Not later than 45 days after completion of travel 
(other than local travel), an ATP Participant shall electronically 
submit a trip report. The report 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.
    (c) Research reports. Not later than 6 months after the end of its 
program period, an ATP Participant shall submit a report on any 
research conducted pursuant to the approved ATP program.
    (d) Evaluation reports. Not later than 6 months after the end of 
its program period, an ATP Participant shall submit a report on any 
evaluations conducted in accordance with the approved ATP program, 
including the outcome of action taken with ATP funding and the 
increased market access or exports that can be directly attributed to 
the ATP program.
    (e) Annual audits. Where the CCC is designated the cognizant agency 
for audit, the CCC may require the ATP Participant to submit to the CCC 
an annual audit in accordance with 2 CFR part 200. If the CCC requires 
an additional audit with respect to a particular agreement, the ATP 
Participant shall arrange for such audit and shall submit to the CCC, 
in the manner to be specified by the CCC, such audit of the agreement.
    (f) Additional reports. The CCC may require the submission of 
additional reports.
    (g) Approved letters. An ATP Participant's program agreement and/or 
approval letter shall specify to whom the Participant shall submit the 
reports required in this section.
    (h) Program reviews. FAS through its authorized representatives, 
may review project accomplishments, management control systems, and 
administration of funding provided through the program to ensure 
adherence to requirements. During such reviews, FAS will review 
recipients' files related to the grant-funded program and technical 
assistance may be required.


Sec.  1489.22  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 ATP. 
Evaluation of the ATP's effectiveness will depend on a clear statement 
by Participants of 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 ATP and of individual Participants' programming is to 
increase sales that would not have occurred in the absence of ATP 
funding. An ATP 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 an ATP 
Participant's program, contributing to program accountability, and 
providing evidence of program effectiveness that directly ties program 
funds to increased sales.
    (b) All ATP Participants must report annual results against their 
target market and/or regional constraint/opportunity performance 
measures. These are outcome results usually based on multiple 
activities and should demonstrate progress made in the market. This 
report shall be completed and submitted to the CCC no later than 6 
months following the end of the Participant's program period.
    (c) ATP 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 ATP program. This evaluation shall be completed and submitted 
to CCC no later than 6 months following the end of the Participant's 
program period.
    (d) When appropriate or required by the CCC, an ATP Participant 
shall complete a program evaluation. A program evaluation is a review 
of the ATP Participant's entire program, or an appropriate portion of 
the program as agreed to by the ATP Participant and CCC, to determine 
the effectiveness of the ATP Participant's strategy in meeting 
specified goals. Actual scope and timing of the program evaluation 
shall be determined by the ATP Participant and CCC and specified in the 
approval letter. An ATP 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 the applicable parts of this title (for 
example, 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 export sales achieved;
    (6) A summary of the findings, including an analysis of the 
strengths and weaknesses of the program(s); and
    (7) Recommendations for future programs.
    (e) On an annual basis, or more often when appropriate or required 
by the CCC, an ATP Participant shall complete and submit program 
success stories. The CCC will announce to all ATP Participants in 
writing via an ATP notice issued on the FAS website the detailed 
requirements for completing and submitting program success stories.


Sec.  1489.23   Compliance reviews and notices.

    (a) USDA staff may conduct compliance reviews of ATP Participants' 
activities under the ATP program. ATP Participants shall cooperate 
fully with relevant USDA staff conducting compliance reviews and shall 
comply with all requests from

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USDA staff to facilitate the conduct of such reviews.
    (b) Upon conclusion of the compliance review, USDA staff will 
provide either a written compliance report or a letter to the ATP 
Participant. USDA staff will issue a compliance report if it appears 
that CCC may be entitled to recover funds from that Participant and/or 
it appears that the Participant is not complying with any of the terms 
or conditions of the program agreement, approval letter, or the 
applicable laws and regulations. The compliance report will explain the 
basis for any recovery of funds from the Participant. Within 30 days of 
the date of the compliance report, the ATP Participant shall repay the 
CCC the amount owed either by submitting a check payable to the CCC or 
by offsetting its next reimbursement claim. The ATP Participant shall 
make such payment in U.S. dollars, unless otherwise approved in advance 
by the CCC. If, however, an ATP Participant notifies the CCC within 30 
days of the date of the compliance report that the Participant intends 
to file an appeal pursuant to paragraph (e) of this section, the amount 
owed to the CCC by the ATP Participant is not due until the appeal 
procedures are concluded and the CCC has made a final determination as 
to the amount owed. In the absence of any finding of funds due to the 
CCC or other non-compliance, the CCC will issue a letter to the ATP 
Participant. If, as a result of a compliance review, the CCC determines 
that further review is needed in order to ensure compliance with the 
requirements of ATP, the CCC may require the Participant to contract 
for an independent audit.
    (c) In addition, the CCC may notify an ATP Participant in writing 
at any time if CCC determines that CCC may be entitled to recover funds 
from the Participant. The CCC will explain the basis for any recovery 
of funds from the Participant in the written notice. The ATP 
Participant shall, within 30 days of the date of the notice, repay the 
CCC the amount owed either by submitting a check payable to the CCC or 
by offsetting its next reimbursement claim. The ATP Participant shall 
make such payment in U.S. dollars, unless otherwise approved in advance 
by the CCC. If, however, an ATP Participant notifies the CCC within 30 
days of the date of the written notice that the Participant intends to 
file an appeal pursuant to paragraph (e) of this section, the amount 
owed to the CCC by the ATP Participant is not due until the appeal 
procedures are concluded and the CCC has made a final determination as 
to the amount owed.
    (d) The fact that a compliance review has been conducted by USDA 
staff does not signify that an ATP Participant is in compliance with 
its program agreement, approval letter and/or applicable laws and 
regulations.
    (e) Appeals:
    (1) An ATP Participant may, within 60 days of the date of the 
compliance report or written notice from the CCC, submit a written 
response to the CCC appealing the report or notice. CCC, at its 
discretion, may extend the period for response.
    (2) After review of the Participant's response, the CCC shall 
determine whether the Participant owes any funds to the CCC and will 
inform the Participant in writing of the basis for the determination. 
The CCC will 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.
    (3) Within 30 days of the date of the determination, the 
Participant may request in writing that the CCC reconsider the 
determination and shall submit in writing the basis for such 
reconsideration. The Participant may also request a hearing.
    (4) If the Participant requests a hearing, the 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, the CCC may in its discretion have a 
transcript prepared at the CCC's expense.
    (5) The 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 the CCC.


Sec.  1489.24   Failure to make required contribution.

    An ATP Participant's required contribution will be specified in the 
approval letter. If the ATP Participant's required contribution is 
specified as a dollar amount and the ATP Participant does not make the 
required contribution, the ATP Participant shall pay to the CCC in 
dollars the difference between the amount actually contributed and the 
amount specified in the approval letter. If the ATP Participant's 
required contribution is specified as a percentage of the total amount 
reimbursed by the CCC, the ATP Participant may either return to the CCC 
the amount of funds reimbursed by the CCC to increase its actual 
contribution percentage to the required level or pay to the CCC in 
dollars the difference between the amount actually contributed and the 
amount of funds necessary to increase its actual contribution 
percentage to the required level. An ATP Participant shall remit such 
payment within six months after the end of its program period. The ATP 
Participant shall make such payment in U.S. dollars, unless otherwise 
approved in advance by the CCC.


Sec.  1489.25   Submissions.

    For all permissible methods of delivery, submissions required by 
this subpart shall be deemed submitted as of the date received by the 
CCC.


Sec.  1489.26   Disclosure of program information.

    (a) Documents submitted to CCC by ATP Participants are subject to 
the provisions of the Freedom of Information Act (FOIA), 5 U.S.C. 552, 
7 CFR part 1, subpart A--Official Records, and specifically 7 CFR 1.12, 
Handling Information from a Private Business.
    (b) Any research conducted by an ATP Participant pursuant to an ATP 
program agreement and/or approval letter shall be subject to the 
provisions relating to intangible property in 2 CFR part 200.


Sec.  1489.27  Ethical conduct.

    (a) An ATP Participant shall conduct its business in accordance 
with the laws and regulations of the country in which an activity is 
carried out and in accordance with applicable U.S. Federal, State and 
local laws, and regulations. An ATP Participant shall conduct its 
business in the United States in accordance with applicable Federal, 
State and local laws and regulations. All ATP Participants must comply 
with the regulations in 2 CFR part 200 and this part.
    (b) Except for a U.S. agricultural cooperative or a U.S. for-profit 
entity, neither an ATP Participant nor its affiliates shall make export 
sales of U.S. agricultural commodities and products covered under the 
terms of the applicable ATP agreement. Nor shall such entities charge a 
fee for facilitating an export sale. An ATP Participant may, however, 
collect check-off funds and membership fees that are required for 
membership in the ATP Participant. For the purposes of this paragraph, 
``affiliate'' means any partnership, association, company, corporation, 
trust, or any other such party in which the Participant has an 
investment other than in a mutual fund.
    (c) An ATP Participant shall not limit participation in its ATP 
activities to members of its organization.

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Participants shall ensure that their ATP-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 ATP 
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 ATP 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 any U.S. agricultural cooperative when implementing its own 
brand program.
    (d) An ATP Participant shall select U.S. agricultural industry 
representatives to participate in generic ATP 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 the CCC, an ATP Participant shall submit 
such selection criteria to the CCC for approval.
    (e) All ATP Participants should endeavor to ensure fair and 
accurate fact-based advertising. Deceptive or misleading promotions may 
result in cancellation or termination of a Participant's ATP agreement 
and the recovery of CCC funds related to such promotions from the 
Participant.
    (f) The ATP Participant must report any actions or circumstances 
that may have a bearing on the propriety of its ATP program to the 
appropriate Attach[eacute]/Counselor, and its U.S. office shall report 
such actions or circumstances in writing to the CCC.


Sec.  1489.28   Contracting procedures.

    (a) Neither the CCC nor any other agency of the U. S. Government 
nor any official or employee of the CCC, FAS, USDA, or the U.S. 
Government has any obligation or responsibility with respect to ATP 
Participant contracts with third parties.
    (b) An ATP Participant shall comply with the procurement standards 
set forth below and in the applicable parts of this title when 
procuring goods and services and when engaging in construction to 
implement program agreements (for example, 2 CFR part 200).
    (c) Each ATP Participant shall establish contracting procedures, 
for contracts that are funded, in whole or in part, with ATP funds, 
that are open, fair, and competitive.
    (d) Each ATP Participant shall submit to the CCC, for CCC approval, 
written contracting guidelines for contracts that are funded, in whole 
or in part, with ATP funds. The CCC will notify all new and existing 
ATP 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 contracting guidelines. The CCC's approval of such 
contracting guidelines will remain in place until the CCC retracts its 
approval in writing, or until new guidelines are approved that 
supersede them. Once approved by the CCC, these contracting guidelines 
shall govern all of a Participant's ATP-funded contracting involving 
contracts with a minimum annual value that CCC will determine and 
announce in writing to all ATP Participants via an ATP notice issued on 
the FAS website. The CCC may, from time to time, set a different 
minimum value. In that case, the CCC will announce the new amount in 
writing to all ATP Participants via an ATP 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 ATP 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 ATP 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, agent's family, partners, or an organization that employs or 
is about to employ any of the parties indicated herein, has a financial 
or other interest in the firm selected for an award. 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; solicitations that yield receipt of three 
or more bids; 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. ATP 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 three 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 ATP 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

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provided to them by the ATP Participant.
    (e) An ATP Participant may undertake ATP promotional activities 
directly or through a domestic or foreign third party. However, the ATP 
Participant shall remain responsible and accountable to the CCC for all 
ATP promotional activities and related expenditures undertaken by such 
third party and shall be responsible for reimbursing CCC for any funds 
that CCC determines should be refunded to the CCC in relation to such 
third party's promotional activities and expenditures.


Sec.  1489.29  Property standards.

    The ATP Participant shall insure all ATP-funded property and 
equipment acquired in furtherance of program activities and safeguard 
such against theft, damage and unauthorized use. The Participant shall 
promptly report any loss, theft, or damage of property to the insurance 
company.


Sec.  1489.30  Anti-fraud requirements.

    (a) All ATP Participants. (1) All ATP Participants shall submit to 
the CCC for approval a detailed fraud prevention program. The CCC will 
notify all new and existing ATP 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. ATP Participants should review their fraud 
prevention programs 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 ATP Participant shall not conduct or 
permit any ATP promotion activities to occur unless and until the CCC 
has communicated in writing approval of the ATP Participant's fraud 
prevention program.
    (2) The ATP 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 ATP program agreement and/
or approval letter. The ATP 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 the CCC or USDA to the ATP Participant for the prompt investigation 
of such allegation or occurrence.
    (b) ATP Participants with brand programs. (1) The ATP Participant 
may charge a fee to brand participants to cover the cost of the fraud 
prevention program.
    (2) The ATP Participant shall repay to the CCC funds paid to a 
brand participant through the ATP Participant on claims that the ATP 
Participant or the CCC subsequently determines are unauthorized or 
otherwise non-reimbursable expenses within 30 days of the ATP 
Participant's determination or CCC's disallowance. The ATP Participant 
shall repay CCC by submitting a check to CCC or by offsetting the ATP 
Participant's next reimbursement claim. The ATP Participant shall make 
such payment in U.S. dollars, unless otherwise approved in advance by 
CCC. An ATP Participant operating a brand program in strict accordance 
with an approved fraud prevention program, however, will not be liable 
to reimburse CCC for ATP funds paid on such claims if the claims were 
based on misrepresentations or fraud of the brand participant, its 
employees or agents, unless the CCC determines that the ATP Participant 
was grossly negligent in the operation of the brand program regarding 
such claims. The CCC shall communicate any such determination to the 
ATP Participant in writing.


Sec.  1489.31  Program income.

    Any revenue or refunds generated from an activity, e.g., 
participation fees, proceeds of sales, refunds of value added taxes 
(VAT), the expenditures for which have been wholly or partially 
reimbursed with ATP funds, shall be used by the ATP Participant in 
furtherance of its approved ATP activities in the program period during 
which the ATP funds are available for obligation by the ATP 
Participant. The use of such revenue or refunds shall be governed by 7 
CFR part 1489. Interest earned on funds advanced by the CCC is not 
program income.


Sec.  1489.32  Amendment.

    A program agreement may be amended in writing with the consent of 
the CCC and the ATP Participant.


Sec.  1489.33  Noncompliance with an agreement.

    If an ATP Participant fails to comply with any term in its program 
agreement or approval letter, the CCC may take one or more of the 
enforcement actions in 2 CFR part 200 and, if, appropriate, initiate a 
claim against the ATP Participant, following the procedures set forth 
in this subpart. The CCC may also initiate a claim against an ATP 
Participant if program income or CCC-provided funds are lost due to an 
action or omission of the ATP Participant.


Sec.  1489.34  Suspension, termination, and closeout of agreements.

    A program agreement may be suspended or terminated in accordance 
with the suspension and termination procedures in 2 CFR part 200. If an 
agreement is terminated, the applicable regulations in 2 CFR part 200 
will apply to the closeout of the agreement.


Sec.  1489.35  Paperwork reduction requirements.

    The paperwork and record keeping requirements imposed by this 
subpart have been submitted for review by OMB under the Paperwork 
Reduction Act of 1980. OMB has not yet assigned a control number for 
this information collection.

    Dated: August 27, 2018.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
    Dated: August 27, 2018.
Kenneth Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2018-18870 Filed 8-28-18; 8:45 am]
 BILLING CODE 3410-10-P