Federal Register Notices
[Federal Register: September 8, 2009 (Volume 74, Number 172)]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1485
Market Access Program
AGENCY: Foreign Agricultural Service and Commodity Credit Corporation,
ACTION: Proposed rule.
SUMMARY: This proposed rule would revise and amend the regulations at 7
CFR part 1485 used to administer the Market Access Program (MAP) by
updating and merging the application requirements and the activity plan
requirements to reflect the Unified Export Strategy (UES) system
currently in place; clarifying the eligibility of activities designed
to address international market access issues; modifying the list of
eligible and ineligible contributions; revising the portions of the
regulation regarding evaluations, contracting procedures, and the
compliance review and appeals process; eliminating the Export Incentive
Program/Market Access Program (EIP/MAP) as a separate subcomponent; and
making other administrative changes for clarity and program integrity.
DATES: Comments concerning this proposed rule must be received by
November 9, 2009 to be assured consideration.
ADDRESSES: Comments may be submitted by any of the following methods:
Federal e-Rulemaking Portal: Go to http://www.regulations.gov.
Follow the online instructions for submitting comments.
Fax: (202) 720-9361.
Hand Delivery or Courier: U.S. Department of Agriculture,
Foreign Agricultural Service, Office of Trade Programs, Program
Operations Division, Portals Office Building, Suite 400, 1250 Maryland
Avenue, SW., Washington, DC 20024.
U.S. Postal Delivery: U.S. Department of Agriculture,
Foreign Agricultural Service, Office of Trade Programs, Program
Operations Division, Stop 1023, 1400 Independence Avenue, SW.,
Washington, DC 20250-1042.
Comments may be inspected in Suite 400, Portals Building, 1250
Maryland Avenue, SW., Washington, DC, between 8 a.m. and 4:30 p.m.,
Monday through Friday, except holidays. A copy of this proposed rule is
available through the Foreign Agricultural Service (FAS) home page at:
FOR FURTHER INFORMATION CONTACT: Mark Slupek by phone at (202) 720-
4327, by fax at (202) 720-9361, or by e-mail at: email@example.com.
On May 23, 2007, the Commodity Credit Corporation (CCC) published
an advance notice of proposed rulemaking and public hearing in the
Federal Register (72 FR 28901). This notice was intended to solicit
comments on whether to amend and revise the existing MAP regulations.
In addition, CCC held a public hearing on July 25, 2007, to receive
oral and written comments. This proposed rule includes changes based on
public comments and CCC's experience in operating the program. The
following changes are proposed:
CCC proposes to add a separate paragraph to note explicitly the
applicability of other Federal statutes and regulations to the
activities of MAP participants. CCC also proposes to add new
definitions and to delete obsolete definitions. Of note, CCC proposes
to clarify the definitions of U.S. agricultural commodity, brand
promotion, CCC, contribution, credit memo, expenditure, generic
promotion, supergrade, and small-sized entity. CCC proposes to remove
the definitions of activity plan, activity plan amendment request
(APAR), deputy administrator, division director, EIP/MAP, EIP/MAP
participant, eligible commodity, exported commodity, unfair trade
practice, U.S. commercial entity, and U.S. industry contribution. CCC
proposes to add definitions of administrative expenses or costs,
approval letter, brand participant, UES Web site, FAS Web site,
notification, program agreement, program year, temporary contractor,
U.S. for-profit entity, and UES.
CCC proposes to modify the language that describes the application
process and activity plan. CCC proposes to update and merge the list of
application requirements and the activity plan requirements to better
reflect the UES system that has been in place for several years.
CCC proposes to modify the lists of reimbursable and non-
reimbursable activities to clarify the reimbursability of certain
activities, e.g., to allow reimbursement for the use of electronic
media in advertising (such as radio, television, electronic mail,
Internet, telephone, text messaging, and podcasting) and portable
electronic communications devices (such as mobile phones, wireless e-
mail devices, and personal digital assistants). Other clarifications
address overseas office expenses, legal expenses, market research,
coupons, permanent displays, subscriptions to publications, travel
reimbursement, Office of Management and Budget (OMB) Circular A-133
audits, and translation of written materials. CCC also proposes to
clarify that expenditures associated with educational training designed
to improve market access by addressing temporary or permanent trade
barriers are reimbursable. Such activities are currently allowable, but
were not specifically identified in the regulation.
CCC proposes to modify the list of reimbursable activities to
include development and use of Web sites; production of business cards
that target a foreign audience; expenditures associated with conducting
international staff conferences; expenditures related to copyright,
trademark, or patent registration; leasing storage space overseas for
storing program materials; and business class travel to be more
consistent with the federal travel regulation.
Throughout the program's history, certain domestic administrative
costs have been reimbursable for regional or national groupings of
state departments of agriculture. CCC proposes to broaden this
eligibility to allow for domestic administrative costs for the
Intertribal Agriculture Council, which is a similar grouping of Native
American and Alaskan tribes.
CCC proposes to modify the list of non-reimbursable activities to
make ineligible expenditures on activities that include derogatory
references or negative comparisons to other U.S. agricultural
commodities and contributions to a contingency reserve. CCC also
proposes to clarify that if a MAP participant discovers that MAP funds
have not been spent properly, the participant has 30 days to inform CCC
and repay the amount misspent.
CCC proposes to clarify, separate, and include in a new paragraph
MAP contribution rules that were originally subsumed in the application
CCC proposes to separate existing paragraphs entitled ``Financial
management, reports, evaluations, and appeals'' and ``Miscellaneous
provisions'' into multiple paragraphs to provide greater clarity. CCC
proposes to establish separate paragraphs to describe the compliance
review and appeals processes; amendment of agreements; termination of agreements;
consequences of noncompliance with agreements; as well as new
paragraphs on financial management, evaluation, information disclosure,
ethical conduct, physical property, program income, and reporting. CCC
proposes to extend the due date for evaluation reports and annual
performance reports to 180 days following the end of a program year.
CCC proposes a new paragraph establishing new requirements for a
participant to submit to CCC, for CCC's approval, a contracting plan
that outlines its procedures for developing and publicizing requests
for proposals, invitations for bids, and similar documents that solicit
third-party offers to provide goods or services; procedures for
reviewing proposals, bids, or other offers to provide goods and
services; and other contracting requirements, including conflict of
interest provisions that extend beyond the relevant actor's immediate
In addition, CCC proposes to add a paragraph requiring MAP
participants that operate brand programs under MAP to establish certain
operational procedures outlined in this proposed rule.
CCC also proposes to add a paragraph imposing new requirements on
participants to establish and maintain a fraud prevention program and
to report to CCC any allegations regarding potential fraud against the
Finally, CCC proposes to eliminate the EIP/MAP subcomponent, which
was a part of the program limited to for-profit entities that entered
into agreements with CCC. This applied when the program was available
to large companies, but such companies are no longer eligible for the
Executive Order 12866
This proposed rule is issued in conformance with Executive Order
12866. It has been determined to be not significant for the purposes of
Executive Order 12866 and was not reviewed by OMB. A cost-benefit
assessment of this rule was not completed.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988. This rule does not preempt State or local laws, regulations, or
policies unless they present an irreconcilable conflict with this rule.
This rule would not be retroactive.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires intergovernmental consultation with State and local officials.
See the notice related to 7 CFR part 3015, subpart V, published at 48
FR 29115 (June 24, 1983).
Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
CCC is not required by 5 U.S.C. 553 or any other law to publish a
notice of proposed rulemaking with respect to the subject matter of
CCC has determined that this proposed rule does not constitute a
major State or Federal action that would significantly affect the human
or natural environment. Consistent with the National Environmental
Policy Act (NEPA), 40 CFR part 1502.4, ``Major Federal Actions
Requiring the Preparation of Environmental Impact Statements'' and the
regulations of the Council on Environmental Quality, 40 CFR parts 1500-
1508, no environmental assessment or environmental impact statement
will be prepared.
Although we are publishing this as a proposed rule, Title II of the
Unfunded Mandates Reform Act of 1995 (UMRA) does not apply to this rule
because it does not impose any enforceable duty or contain any unfunded
mandate as described under the UMRA.
Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995, FAS has
previously received approval from OMB with respect to the information
collection required to support this program. The information collection
is described below:
Title: Foreign Market Development Program (FMD) and Market Access
OMB Control Number: 0551-0026.
E-Government Act Compliance
CCC is committed to complying with the E-Government Act to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services and for other purposes. The forms, regulations, and other
information collection activities required to be utilized by a person
subject to this rule are available at: http://www.fas.usda.gov.
List of Subjects in 7 CFR Part 1485
Agricultural commodities, Exports.
For the reasons stated in the preamble, CCC proposes to amend 7 CFR
part 1485 as follows:
PART 1485--GRANT AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS
FOR U.S. AGRICULTURAL COMMODITIES
1. The authority citation for 7 CFR part 1485 continues to read as
Authority: 7 U.S.C. 5623; 7 U.S.C. 5662-5663 and sec. 1302,
Public Law 103-66, 107 Stat. 330.
2. Subpart B is revised to read as follows:
Subpart B--Market Access Program
1485.10 General purpose and scope.
1485.12 Participation eligibility.
1485.13 Application process.
1485.14 Application review and formation of agreements.
1485.15 Operational procedures for brand programs.
1485.16 Contribution rules.
1485.17 Reimbursement rules.
1485.18 Reimbursement procedures.
1485.20 Employment practices.
1485.21 Financial management.
1485.24 Compliance reviews and notices.
1485.25 Failure to make required contribution.
1485.27 Disclosure of program information.
1485.28 Ethical conduct.
1485.29 Contracting procedures.
1485.30 Property standards.
1485.31 Anti-fraud requirements.
1485.32 Program income.
1485.34 Noncompliance with an agreement.
1485.35 Suspension, termination, and closeout of agreements.
1485.36 Paperwork reduction requirements.
Subpart B--Market Access Program
Sec. 1485.10 General purpose and scope.
(a) This subpart sets forth the general terms, conditions, and
policies governing the Commodity Credit Corporation's (CCC) operation
of the Market Access Program (MAP).
(b)(1) In addition to the provisions of this subpart, other
regulations of general application issued by the U. S. Department of
Agriculture (USDA), including the regulations set forth in Chapter XXX
of this title, ``Office of the Chief Financial Officer, Department of
Agriculture,'' may apply to the MAP. These include, but are not limited
(i) 7 CFR part 1, subpart A--Official Records
(ii) 7 CFR part 3--Debt Management
(iii) 7 CFR part 15, subpart A--Nondiscrimination
(iv) 7 CFR part 3015--Uniform Federal Assistance Regulations
(v) 7 CFR part 3016--Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments
(vi) 7 CFR part 3017--Government-wide Debarment and Suspension
(vii) 7 CFR part 3018--New Restrictions on Lobbying
(viii) 7 CFR part 3019--Uniform Administrative Requirements for Grants
and Other Agreements with Institutions of Higher Education, Hospitals,
and Other Nonprofit Organizations
(ix) 7 CFR part 3021--Government-wide requirements for drug-free
workplace (financial assistance)
(x) 7 CFR part 3052--Audits of States, Local Governments, and Non-
(xi) 48 CFR part 31--Contract Cost Principles and Procedures of the
Federal Acquisition Regulations.
(2) In addition, relevant provisions of the CCC Charter Act (15
U.S.C. 714 et seq.) and any other statutory provisions that are
generally applicable to CCC are also applicable to the MAP and the
regulations set forth in this part.
(3) MAP participants must also comply with Title VI for the Civil
Rights Act of 1964 and related civil rights regulations and policies.
(c) Under the MAP, CCC may provide grants to eligible U.S. entities
to conduct certain marketing and promotion activities aimed at
developing, maintaining, or expanding commercial export markets for
U.S. agricultural commodities and products. MAP participants may
receive assistance for either generic or brand promotion activities.
While activities generally take place overseas, reimbursable activities
may also take place in the United States. When considering eligible
nonprofit U.S. trade organizations, CCC gives priority to organizations
that have the broadest producer representation and affiliated industry
participation of the commodity being promoted.
(d) The MAP generally operates on a reimbursement basis.
(e) CCC's policy is to ensure that benefits generated by MAP
agreements are broadly available throughout the relevant agricultural
sector and that no single entity gains an undue advantage. CCC also
endeavors to enter into MAP agreements covering a broad array of
agricultural commodity sectors. The MAP is administered by personnel of
the Foreign Agricultural Service (FAS) acting on behalf of CCC.
Sec. 1485.11 Definitions.
For purposes of this subpart the following definitions apply:
Activity--a specific foreign market development effort undertaken
by a MAP participant.
Administrative expenses or costs-- expenses or costs of
administering, directing, and controlling an organization that is a MAP
participant that are not directly identifiable with a specific market
promotion activity. Generally, this would include expenses or costs
such as those related to:
(1) Maintaining a physical office (including, but not limited to,
rent, office equipment, office supplies, office d[eacute]cor, office
furniture, computer hardware and software, maintenance, extermination,
parking, business cards);
(2) Personnel (including, but not limited to, salaries, benefits,
payroll taxes, individual insurance, training);
(3) Communications (including, but not limited to, phone expenses,
Internet, mobile phones, personal digital assistants, e-mail, mobile e-
mail devices, postage, courier services, television, radio, walkie
(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,
(6) Professional services (including, but not limited to,
accounting expenses, financial services, investigatory services).
Approval letter--a document by which CCC informs an applicant that
its MAP application for a program year has been approved for funding.
This letter may also approve specific activities and contain terms and
conditions in addition to the program agreement. This letter requires a
countersignature by the MAP participant before it becomes effective.
Attach[eacute]/Counselor--the FAS employee representing USDA
interests in the foreign country in which promotional activities are
Brand participant--a small-sized U.S. for-profit entity or a non-
profit U.S. agricultural cooperative that owns the brand(s) of the U.S.
agricultural commodity to be promoted or has the exclusive rights to
use such brand(s) and that is participating in the MAP brand promotion
program of another MAP participant.
Brand promotion--an activity that involves the exclusive or
predominant use of a single U.S. company name, or the logo or brand
name of a single U.S. company, or any activity undertaken by a MAP
participant in the brand program.
CCC--the Commodity Credit Corporation, including any agency or
official of the United States delegated the responsibility to act on
behalf of CCC.
Contribution--an expenditure made by a MAP participant or U.S.
industry in support of an approved activity.
Credit memo--a commercial document, also known as a credit
memorandum, issued by the MAP participant to a commercial entity that
owes the MAP participant a certain sum. A credit memo is used when the
MAP participant owes the commercial entity a sum less than the amount
the entity owes the participant. The credit memo reflects an offset of
the amount the MAP participant owes the entity against the amount the
entity owes to the MAP participant.
Demonstration projects--activities involving the erection or
construction of a structure or facility or the installation of
Expenditure--either payment via the transfer of funds or offset
reflected in a credit memo in lieu of a transfer of funds.
FAS--Foreign Agricultural Service, USDA.
FAS Web site--a Web site maintained by FAS providing information on
MAP. It is currently accessible at www.fas.usda.gov/mos/programs/
Foreign third party--a foreign entity that works with a MAP
participant, in accordance with an approved MAP program agreement and/
or approval letter, in promoting the export of a U.S. agricultural
Generic promotion--an activity that is not a brand promotion but,
rather, promotes a U.S. agricultural commodity generally.
MAP--the Market Access Program.
MAP participant or Participant--an entity that has entered into a
MAP program agreement with CCC.
Market--the country or countries targeted by an activity.
Notification--a document from the MAP participant by which the MAP
participant proposes to CCC changes to the activities and/or funding
levels in an approved MAP program agreement and/or approval letter.
Program agreement--a document entered into between CCC and a MAP
participant setting forth the terms and conditions of approved
activities under MAP, including any subsequent amendments to such
Program year--Unless otherwise agreed in writing between CCC and a
MAP participant, a 12-month period during which a MAP participant can
undertake activities consistent with this subpart and its program
agreement with CCC.
Promoted commodity--a U.S. agricultural commodity the sale of which
is the intended result of a promotion activity.
Sales and trade relations expenditures (STRE)--expenditures made on
breakfast, lunch, dinner, receptions, and refreshments at approved
activities; miscellaneous courtesies such as checkroom fees, taxi fares
and tips; and decorations for a special promotional occasion.
Sales team--a group of individuals engaged in an approved activity
intended to result in specific sales.
Small-sized entity--a U.S. commercial entity that meets the small
business size standards published at 13 CFR part 121, Small Business
SRTG--the acronym for State Regional Trade Group. An SRTG is an
association of State Departments of Agriculture.
Supergrade--a salary level above the reimbursable salary range
generally allowable under MAP, which CCC may approve on a case by case
basis. This salary level is available only for certain non-U.S.
employees who direct participants' overseas offices.
Temporary contractor--a contractor, typically a consultant or other
highly paid professional, that is hired on a short term basis to assist
in the performance of an activity.
Trade team--a group of individuals engaged in an approved activity
intended to promote the interests of an entire agricultural sector
rather than to result in specific sales by any of its members.
UES Web site--a Web site maintained by FAS through which applicants
may apply online to MAP and any other USDA market promotion program.
The Web site is currently accessible at http://www.fas.usda.gov/mos/
Unified Export Strategy (UES)--is a standardized online Internet
application developed by USDA and available for use by entities to
apply to any USDA market development program.
U.S. agricultural commodity--any food, feed, fiber, forestry
product, livestock, or insect of U.S. origin or fish harvested from a
U.S. aquaculture farm or harvested by a vessel as defined in Title 46
of the United States Code, in waters that are not waters (including the
territorial sea) of a foreign country, and any product thereof,
excluding tobacco. An agricultural commodity shall be considered to be
U.S. origin if it is comprised of at least 50 percent by weight,
exclusive of added water, of agricultural commodities grown or raised
in the United States.
USDA-- the United States Department of Agriculture.
U.S. for-profit entity--a firm, cooperative, association, or other
entity organized or incorporated, located and doing business for profit
in the United States and engaged in the export or sale of a U.S.
Sec. 1485.12 Participation eligibility.
To participate in the MAP, an entity shall be:
(a) A nonprofit U.S agricultural trade organization;
(b) A nonprofit SRTG;
(c) A nonprofit U.S. agricultural cooperative; or
(d) A State agency.
Sec. 1485.13 Application process.
(a) General application requirements. CCC will periodically publish
a Notice in the Federal Register that it is accepting applications for
participation in MAP. Applications shall be submitted in accordance
with the terms and requirements specified in the Notice and in these
regulations. Applicants are encouraged to submit a UES through the UES
Internet Web site, but are not required to do so. Applicants may apply
to conduct a generic promotion program, a brand promotion program that
provides MAP funds to brand participants for branded promotion, or
(1) Applicant and program information.
(i) All applications shall contain:
(A) The name, address, and Internet location of the home page of
the applicant organization;
(B) The name of the applicant's Chief Executive Officer;
(C) The name, telephone number, fax number, and e-mail address of
the applicant's primary contact person;
(D) The name(s) of the person(s) responsible for managing the
(E) A description of the applicant organization, including the type
of organization of the applicant (e.g., nonprofit SRTG), its mission,
and the statutory authorities by which it is constituted and under
which it operates, if applicable;
(F) Tax exempt identification number of the applicant, if
(G) Beginning and ending dates for proposed program year (mm/dd/yy-
(H) Dollar amount of CCC resources requested for generic
(I) Dollar amount of CCC resources requested for brand activities;
(J) Percentage of CCC resources requested for brand activities that
will be made available to small-sized entities;
(K) Total dollar amount of CCC resources requested;
(L) Percentage of CCC resources requested for general
(M) A Dun and Bradstreet DUNS number for the applicant;
(N) A description of the applicant organization's membership and
(O) A list of organizations affiliated with the applicant,
including parent organizations, subsidiaries, and partnerships;
(P) A description of the applicant's management and administrative
(Q) A description of the applicant's prior export promotion
(R) Value, in U.S. dollars, of proposed contributions from the
(S) The applicant's proposed contribution stated as a percentage of
the total dollar amount of CCC resources requested; and
(T) Value, in U.S. dollars, of proposed contributions from other
(2) Program justification.
(i) All applications shall contain:
(A) A description of the promoted U.S. agricultural commodity(s),
its harmonized system code, the applicable commodity aggregate code
(available from the UES Web site) and the percentage of U.S. origin
content by weight, exclusive of added water;
(B) A description of the anticipated supply and demand situation
for the promoted U.S. agricultural commodity(s);
(C) The volume and value of exports of the promoted U.S.
agricultural commodity(s) to the targeted markets for the most recent
(D) If the proposal is for 2 or more years, an explanation why the
proposal should be funded on a multi-year basis; and
(E) A certification and, if requested by CCC, a written explanation
supporting the certification that any funds received will supplement,
but not supplant, any private or third-party funds or other
contributions to program activities. An explanation, if one is
requested, shall indicate why the applicant is unlikely to carry out
the activities without Federal financial assistance. In determining
whether Federal funds would supplement or supplant private or third-
party funds or contributions, CCC will consider the applicant's prior
overall marketing budget in the MAP program from year-to-year,
variations in promotional strategies within a country, and new markets.
(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) A statement of goals and the applicant's plans for monitoring
and evaluating performance towards achieving these goals;
(F) For each country, 5 years or as many years as are available of:
(1) Historical U.S. export data;
(2) U.S. market share; and
(3) MAP funds received by the applicant;
(G) For each target country, 3 years of projected U.S. export data
and U.S. market share;
(H) Country strategy, including market constraint(s) impeding U.S.
exports (e.g., trade barriers) or opportunities present and the
strategy proposed to overcome constraints or take advantage of the
opportunities, previous activities in the country, and the projected
impact of the proposed program on U.S. exports;
(I) A justification for any proposed overseas office, including a
staffing plan listing job titles, position descriptions, salary ranges,
any request for approval of supergrade salaries, and an itemized
(J) A description of any demonstration projects, if applicable;
(K) Data summarizing the applicant's historical and projected
exports, market share, and MAP budgets of the promoted U.S.
(L) A written presentation of all proposed activities including:
(1) A short description of the relevant market constraint or
(2) A budget for each proposed activity, identifying the source of
(M) An evaluation plan setting forth specific goals and benchmarks
set at regular intervals to be used to identify results against
identified constraints and opportunities and to measure progress made
in the target market. Evaluation of a proposed MAP program's
effectiveness will depend on a clear statement by the applicant of
goals, method of achievement, and expected results of programming at
regular intervals. The overall goal of the MAP and of individual
participants' programming is to achieve or maintain sales that would
not have occurred in the absence of MAP funding. A MAP participant may
modify and resubmit this plan for re-approval at any time during the
(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-
(b) CCC may request any additional information that it deems
necessary to evaluate an application, including, but not limited to,
performance measurement information.
(c) Special rules governing demonstration projects funded with CCC
(1) CCC will consider proposals for demonstration projects,
(i) No more than one such demonstration project per constraint is
undertaken within a market;
(ii) The constraint to be addressed in the target market is a lack
of technical knowledge or expertise;
(iii) The demonstration project is a practical and cost effective
method of overcoming the constraint; and
(iv) A third-party must participate in such project through a
Sec. 1485.14 Application review and formation of agreements.
(a) General. CCC will, subject to the availability of funds,
approve those applications that it considers to present the best
opportunity for developing, maintaining, or expanding export markets
for U.S. agricultural commodities. The selection process, by its
nature, involves the exercise of judgment. CCC's choice of participants
and proposed promotion projects requires that it consider and weigh a
number of factors, some of which cannot be mathematically measured--
e.g., market opportunity, market strategy, and management capability.
CCC may require that an applicant participate in the MAP through
another MAP participant or applicant.
(b) Application review criteria. In assessing the likelihood of
success of the applications it receives and deciding which it will
approve, CCC will follow results-oriented management principles and
consider the following criteria:
(1) The effectiveness of program management;
(2) Soundness of accounting procedures;
(3) The nature of the applicant organization, with preference given
to those organizations with the broadest base of producer
representation and affiliated industry participation;
(4) Prior export promotion experience;
(5) Appropriateness of staffing;
(6) Adequacy of the applicant's strategic plan in the following
(i) Description of target market conditions;
(ii) Description of, and plan for addressing, market constraints
(iii) Breadth of industry participation in strategic planning
(iv) Strategic prioritization identified in proposed plan;
(v) Export volume and value and market share goals in each target
(vi) Description of evaluation plan and suitability of the plan for
performance measurement; and
(vii) Past program results and/or evaluations, including program
(c) Allocation factors. CCC determines which applications to
approve and develops preliminary recommended funding levels for each
approved application based on the following factors, in addition to
those in paragraph (b) of this section. CCC determines final funding
levels after allocating available funds to approved applications on the
basis of criteria that will be fully described in each program year's
MAP announcement in the Federal Register:
(1) Size of the budget request in relation to projected value of
(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
(5) Market share goals in target country(ies);
(6) The percentage by weight, exclusive of added water, of U.S.
agricultural commodities contained in the promoted products;
(7) The degree of value-added processing in the United States;
(8) General administrative and overhead costs compared to direct
promotional costs; and
(9) In the case of a brand promotion program, the percentage of the
budget that will be made available to small-sized entities as a means
of providing priority assistance to such entities.
(d) Approval decision.
(1) CCC will approve those applications that it determines best
satisfy the criteria and factors specified above.
(2) Notification of decision. CCC will notify each applicant in
writing of the final disposition of its application.
(e) Formation of agreements. CCC will send a program agreement (or
amendment to an existing program agreement), an approval letter, and a
signature card to each approved applicant. The program agreement or
amendment and the approval letter will outline which activities and
budgets are approved and will specify any special terms and conditions
applicable to a MAP participant's program, including any requirements
with respect to contributions and program evaluations. An applicant
that decides to accept the terms and conditions contained in the
program agreement or amendment must so indicate by having its Chief
Executive Officer (CEO) or designee sign the program agreement or
amendment and submit it to CCC. Final agreement shall occur when the
program agreement or amendment is signed on behalf of CCC.
(f) Signature cards. The MAP participant shall designate at least
two individuals in its organization to sign program agreements,
reimbursement claims, and advance requests. The MAP participant shall
submit the signature card signed by those designated individuals and by
the participant's CEO to CCC. The participant shall immediately notify
CCC of any changes in signatories and shall submit a revised signature
(g) UES ID and passwords. CCC will provide each MAP participant
with IDs and passwords for the UES website, as necessary. MAP
participants shall protect these IDs and passwords in accordance with
USDA's information technology policies that CCC will provide to MAP
participants. MAP participants shall immediately notify CCC whenever a
person who possesses the ID and password information no longer needs
such information or a person who is not authorized gains such
(h) A MAP participant through which small-sized U.S. for-profit
entities are participating in the MAP program shall obtain annual
certifications from all such entities that they are small-sized
entities as defined in these regulations. The participant shall retain
these certifications in accordance with the recordkeeping requirements
of this subpart.
(i) Changes to activities and funding.
(1) Adding a new activity.
(i) A MAP participant may not add a new activity to its approved
MAP program without first obtaining CCC written approval of such
change. To request approval of such change, the MAP participant shall
submit a notification to CCC.
(ii) A notification for a new activity shall provide an activity
justification and proposed activity strategic plan similar to the
program justification and proposed program's strategic plan required in
new applications. The notification shall contain the activity
description, the proposed budget, and a justification of transfer of
(iii) After receipt of the notification, CCC will inform the MAP
participant in writing whether the requested change is approved.
(2) Deleting or modifying existing activities and funding levels.
(i) A MAP participant may make adjustments to its existing,
approved activities and/or funding levels without prior approval of
CCC, only if it submits a notification explaining the adjustments to
CCC no later than 30 days after the change. However, a MAP participant
desiring to increase the funding level for existing, approved
activities addressing a single constraint or opportunity by more than
$10,000 or 20 percent of the approved funding level, whichever is
greater, must first submit a notification explaining the adjustment to
CCC before making such change. If CCC does not disapprove of the
proposed increase in funding level within 15 days, then the MAP
participant may so adjust the level.
(ii) A notification of a modified or deleted activity shall contain
the activity description, the proposed budget, and a justification of
transfer of funds, if applicable.
(iii) A notification of changes to the approved funding levels of
approved activities shall contain the activity description, the
existing funding level, the proposed funding level, and a justification
for transfer of funds, if applicable.
Sec. 1485.15 Operational procedures for brand programs.
(a) Where CCC approves an application by a MAP participant to run a
brand promotion program that will include third party brand
participants, the MAP participant shall establish brand program
operational procedures. The MAP participant annually shall submit to
CCC for approval, not later than 21 days prior to signing participation
agreements with third party brand participants, its proposed brand
program operational procedures for such program year. Such procedures
shall include, at a minimum, a brand program application, application
procedures, application review criteria, brand participant eligibility
requirements, a participation agreement, reimbursement requirements,
compliance requirements, reporting and recordkeeping requirements,
employment practices, financial management requirements, contracting
procedures, and evaluation requirements.
(b) The MAP participant shall not enter into any participation
agreements with third party brand participants nor shall it implement
any MAP brand activities for the applicable program year unless and
until CCC has communicated in writing its approval of the proposed
operational procedures to the MAP participant.
(c) Participation agreements between MAP participants and third
party brand participants. Where CCC approves a MAP participant's
application to run a brand promotion program that will include third
party brand participants, the MAP participant shall enter into
participation agreements with third party brand participants. These
(1) Specify a time period for such third party brand promotion and
require that all third party brand promotion expenditures be made
within the MAP participant's approved program year;
(2) Make no allowance for extension or renewal;
(3) Limit reimbursable expenditures to those made in countries and
for activities approved in the third party brand participant's activity
(4) Specify the percentage of promotion expenditures that will be
reimbursed, reimbursement procedures, and documentation requirements;
(5) Include a written certification by the third party brand
participant that it either owns the brand of the product it will
promote or has exclusive rights to promote the brand in each of the
countries in which promotion activities will occur;
(6) Require that all product labels, promotional material, and
advertising will identify the origin of the U.S. agricultural commodity
as ``Product of the U.S.'', ``Product of the U.S.A.'', ``Grown in the
U.S.'', ``Grown in the U.S.A.'', ``Made in America'' or other U.S.
regional designation if approved in advance by CCC; that such origin
identification will be conspicuously displayed; and that such origin
identification will conform, to the extent possible, to the U.S.
standard of \1/6\ inch (.42 centimeters) in height based on the lower
case letter ``o''. A MAP participant may request an exemption from this
requirement on a case-by-case basis. All such requests shall be in
writing and include justification satisfactory to CCC that this
labeling requirement would hinder a MAP participant's promotional efforts. CCC
will determine, on a case by case basis, whether sufficient
justification exists to grant an exemption from the labeling
(7) Include a written certification by the third party brand
participant that it is a small-sized entity as defined in this subpart;
(8) Require that the third party brand participant submit to the
MAP participant a statement certifying that any Federal funds received
will supplement, but not supplant, any private or third party funds or
other contributions to program activities; and
(9) Require the third party brand participant to maintain all
original records and documents relating to program activities for 5
calendar years following the end of the applicable program year and
make such records and documents available upon request to authorized
officials of the U.S. Government.
(d) MAP participants may not provide assistance to a single
company, including a company reincorporated or re-organized under the
same or different name if the reincorporated or re-organized company is
substantially similar to the pre-existing company, for brand promotion
in a single country for more than 5 years. Such 5 years do not need to
be consecutive. Such 5-year period shall not begin prior to the 1994
program year or the brand participant's first program year, whichever
is later. In limited circumstances, CCC may waive the 5-year limitation
if CCC determines that further assistance is in the best interests of
the MAP. CCC shall have the discretion to decide whether a
reincorporated or re-organized company is substantially similar to the
pre-existing company for purposes of applying this 5-year rule.
Sec. 1485.16 Contribution rules.
(a) In MAP generic promotion programs, a MAP participant shall
contribute a total amount in goods, services, and/or cash equal to at
least 10 percent of the value of resources to be provided by CCC for
all generic promotion activities proposed to be undertaken by the
(b) In MAP brand promotion programs, a brand participant shall
contribute at least 50 percent of the total eligible expenditures made
on each approved brand promotion.
(c) A MAP participant must use its own funds and may not use MAP
program funds to pay any administrative costs of the MAP participant's
U.S. office(s), including legal fees, except as set forth in this
(d) Eligible contributions.
(1) In calculating the amount of contributions that it will make,
and the contributions that the U.S. industry (including expenditures to
be made by entities in the applicant's industry in support of the
entities' related promotion activities in the markets covered by the
applicant's application) or State agency will make, the MAP applicant
may include the costs listed under paragraph (d)(2) of this section if:
(i) Expenditures will be made in furtherance of an approved
(ii) The contributor has not been and will not be reimbursed by any
source for such costs.
(2) Subject to paragraphs (c) and (d)(1) of this section, eligible
(ii) Compensation paid to personnel;
(iii) The cost of acquiring materials, supplies or services;
(iv) The cost of office space;
(v) A reasonable and justifiable proportion of general
administrative costs and overhead;
(vi) Payments for indemnity and fidelity bond expenses;
(vii) The cost of business cards that target a foreign audience;
(viii) The cost of seasonal greeting cards;
(ix) Fees for office parking;
(x) The cost of subscriptions to publications;
(xi) The cost of activities conducted overseas;
(xii) Credit card fees;
(xiii) The cost of any independent evaluation or audit that is not
required by CCC to ensure compliance with program agreement or
(xiv) The cost of giveaways, awards, prizes and gifts;
(xv) The cost of product samples;
(xvi) Fees for participating in U.S. Government activities;
(xvii) The cost of air and local travel in the United States;
(xviii) Payment of employee's or contractor's share of personal
(xix) STRE in the United States and the cost associated with trade
shows, seminars, and entertainment conducted in the United States;
(xx) Other administrative expenses (e.g., supervisory travel from
the U.S. to an overseas office); and
(xxi) The cost of any activity expressly listed as reimbursable in
(3) The following are not eligible contributions:
(i) Any portion of salary or compensation of an individual who is
the target of an approved promotional activity;
(ii) Any expenditure, including that portion of salary and time
spent, related to promoting membership in the participant organization
(sometimes referred to in the industry as ``backsell'');
(iii) Any land costs other than allowable costs for office space;
(v) The cost of refreshments and related equipment provided to
(vi) The cost of insuring articles owned by private individuals;
(vii) The cost of any arrangement that has the effect of reducing
the selling price of a U.S. agricultural commodity;
(viii) The cost of product development, product modifications, or
(ix) Slotting fees or similar sales expenditures;
(x) Membership fees in clubs and social organizations; and
(xi) Any expenditure for an activity prior to CCC's approval of
(4) CCC shall determine, at CCC's discretion, whether any cost not
expressly listed in this section may be included by the MAP participant
as an eligible contribution.
Sec. 1485.17 Reimbursement rules.
(a) A MAP participant may seek reimbursement for an eligible
(1) The expenditure was made in furtherance of an approved
(2) The participant has not been and will not be reimbursed for
such expenditure by any other source.
(b) Subject to paragraph (a) of this section, CCC will reimburse,
in whole or in part, the cost of:
(1) Production and placement of advertising, in print, electronic
media, billboards, or posters, which may include advertising the
availability of price discounts. Electronic media includes, but is not
limited to, radio, television, electronic mail, internet, telephone,
text messaging, and podcasting;
(2) Production and distribution of banners, recipe cards, table
tents, shelf talkers, and other similar point of sale materials;
(3) Direct mail advertising;
(4) In-store and food service promotions, product demonstrations to
the trade and to consumers, and distribution of promotional samples;
(5) Temporary displays and rental of space for temporary displays;
(6) Expenditures, other than travel expenditures, associated with
retail, trade, consumer exhibits and shows,
seminars, and educational training, including participation fees, booth
construction, transportation of related materials, rental of space and
equipment, and duplication of related printed materials;
(7) International air travel, not to exceed the full fare economy
rate, or other means of international transportation and per diem, as
allowed under the U.S. Federal Travel Regulations (41 CFR parts 301
through 304), for no more than two representatives of a single brand
participant to exhibit their company's products at a foreign trade
(8) Subscriptions to publications that are of a technical,
economic, or marketing nature and that are relevant to the approved
activities of the participant;
(9) Demonstrators, interpreters, translators, receptionists, and
similar temporary workers who help with the implementation of discrete
promotional activities, such as trade shows, in-store promotions, food
service promotions, and trade seminars;
(10) Giveaways, awards, prizes, gifts and other similar promotional
materials, subject to such reimbursement limitation as CCC may, from
time to time, determine and announce in writing to all MAP participants
and on the FAS Web site;
(11) The design and production of packaging, labeling or origin
identification, to be used during the program year in which the
expenditure is made, if such packaging, labeling or origin
identification is necessary to meet the importing requirements of a
(12) The design, production, and distribution of coupons;
(13) An audit of a MAP participant as required by the applicable
parts of this title if the MAP is the MAP participant's largest source
of Federal funding;
(14) The translation of written materials as necessary to carry out
approved activities; and
(15) Expenditures associated with developing, updating, and
servicing Web sites on the Internet that clearly target a foreign
(c) Subject to paragraph (a) of this section, but for generic
promotion activities only, CCC will also reimburse, in whole or in
part, the cost of:
(1) Compensation and allowances for housing, educational tuition,
and cost of living adjustments paid to a U.S. citizen employee or a
U.S. citizen contractor stationed overseas, except CCC will not
reimburse that portion of:
(i) The total of compensation and allowances that exceed 125
percent of the level of a GS-15 Step 10 salary for U.S. Government
(ii) Allowances that exceed the rate authorized for U.S. Embassy
(2) Approved supergrade salaries for non-U.S. citizens and non-U.S.
(3) Compensation of non-U.S. citizen staff employees or non-U.S.
contractors subject to the following limitations:
(i) Where there is a local U.S. Embassy Foreign Service National
(FSN) salary plan, CCC will not reimburse any portion of such
compensation that exceeds the compensation prescribed for the most
comparable position in the FSN salary plan, except for approved
(ii) Where an FSN salary plan does not exist, CCC will not
reimburse any portion of such compensation that exceeds locally
prevailing levels, which the MAP participant shall document by a salary
survey or other mean, except for approved supergrades;
(4) A retroactive salary adjustment for non-U.S. citizen staff
employees or non-U.S. contractors that conforms to a change in FSN
salary plans, effective as of the date of such change;
(5) Accrued annual leave as of the time employment is terminated or
as of such time as required by local law;
(6) Overtime paid to clerical staff;
(7) Temporary contractor fees, except CCC will not reimburse any
portion of any such fee that exceeds the daily gross salary of a GS-15,
Step 10 for U.S. Government employees in effect on the date the fee is
earned, unless a bidding process reveals that such a contractor is not
available at or below that salary rate;
(8) International travel expenses, including passports, visas and
inoculations, except that CCC generally will not reimburse any portion
of air travel in excess of the full fare economy rate or when the
participant fails to notify the Attach[eacute]/Counselor in the
destination country in advance of the travel, unless the CCC determines
it was impractical to provide such notice. If a traveler flies in
business class or a different premium class, the basis for
reimbursement will be the full fare economy class rate for the same
flight. If economy class is not offered for the same flight or if the
traveler flies on a charter flight, the basis for reimbursement will be
the average of the full fare economy class rate for flights offered by
three different airlines between the same points on the same date. In
very limited circumstances, CCC will reimburse air travel up to the
business class rate (i.e., a premium class rate other than the first
class rate). CCC will, from time to time, determine a policy regarding
the appropriate circumstances and announce that policy in writing to
all MAP participants and on the FAS web site;
(9) Per diem, except that CCC will not reimburse per diem in excess
of the rates allowed under the U.S. Federal Travel Regulations (41 CFR
parts 301 through 304);
(10) Automobile mileage at the local U.S. Embassy rate or rental
cars while in travel status;
(11) Other allowable expenditures while in travel status as
authorized by the U.S. Federal Travel Regulations (41 CFR parts 301
(12) Organization costs for overseas offices approved in MAP
program agreements. Such costs include incorporation fees, brokers'
fees, fees to attorneys, accountants, or investment counselors, whether
or not employees of the organization, incurred in connection with the
establishment or reorganization of the overseas office, and rent,
utilities, communications originating overseas, office supplies,
accident liability insurance premiums, and routine accounting and legal
services required to maintain the overseas office;
(13) The purchase, lease, or repair of, or insurance premiums for,
capital goods that have an expected useful life of at least 1 year,
such as furniture, equipment, machinery, removable fixtures, draperies,
blinds, floor coverings, computer hardware and software, and portable
electronic communications devices (including mobile phones, wireless e-
mail devices, personal digital assistants);
(14) Such premiums for health or accident insurance and other
benefits for foreign national employees that the employer is required
by law to pay;
(15) Accident liability insurance premiums for facilities used
jointly with third-party participants for MAP activities or for travel
of non-MAP participant personnel;
(16) Market research, including research to determine the types of
products that are desired in a market;
(17) Independent evaluations or audits, if not otherwise required
by CCC, to ensure compliance with program agreement or regulatory
(18) Legal fees to obtain advice on the host country's labor laws;
(19) Employment agency fees;
(21) Educational travel of dependent children, visitation travel,
rest and recuperation travel, home leave travel, emergency visitation
travel for U.S. overseas employees allowed under the Foreign Affairs
Manual published by the U.S. Department of State;
(22) Evacuation payments (safe haven) and shipment and storage of
household goods and motor vehicles;
(23) Domestic administrative support expenses for the National
Association of State Departments of Agriculture, the SRTGs, and the
Intertribal Agriculture Council;
(24) Expenditures associated with conducting international staff
(25) Travel expenditures associated with trade shows, seminars,
educational training, international staff conferences conducted outside
of the United States, and meetings of international organizations
conducted in the United States;
(26) Approved demonstration projects;
(27) Expenditures related to copyright, trademark, or patent
registration, including attorney fees;
(28) Rental or lease expenditures for storage space for program-
(29) Business cards that target a foreign audience;
(30) Expenditures associated with developing, updating, and
servicing web sites on the Internet that contain a message related to
exporting or international trade; and
(31) Expenditures associated with educational training designed to
improve market access by addressing market constraints, such as
temporary or permanent trade barriers.
(d) A generic promotion activity may include the promotion of a
foreign brand if the foreign brand uses the promoted U.S. agricultural
commodity from multiple U.S. suppliers and is the primary market access
to the targeted market for the U.S. agricultural commodity. A generic
promotion activity may also involve the use of specific company names,
logos or brand names. However, in that case, the MAP participant must
ensure that all U.S. companies seeking to promote such U.S.
agricultural commodity in the market have an equal opportunity to
participate in the activity and that at least two U.S. companies
participate. In addition, an activity that promotes separate items from
multiple companies will be considered a generic promotion only if the
promotion of the separate items maintains a unified theme and style and
is subordinate to the promotion of the generic theme.
(e) CCC will not reimburse any cost of:
(1) Forward year financial obligations, such as severance pay,
attributable to employment of foreign nationals;
(2) Expenses, fines, settlements, judgments or payments relating to
legal suits, challenges or disputes;
(3) The design and production of packaging, labeling or origin
identification, except as specifically allowed in this subpart;
(4) Product development, product modification or product research;
(5) Product samples;
(6) Slotting fees or similar sales expenditures;
(7) The purchase of, construction of, or lease of space for
permanent, non-mobile displays, i.e., displays that are constructed to
remain permanently in the same location beyond one program year.
However, CCC may, at its discretion, reimburse the construction or
purchase of permanent displays on a case-by-case basis, if the
participant sought and received prior approval from CCC of such
construction or purchase;
(8) Rental, lease or purchase of warehouse space, except for
storage space for program-related material;
(9) Coupon redemption or price discounts;
(10) Refundable deposits or advances;
(11) Giveaways, awards, prizes, gifts and other similar promotional
materials in excess of the limitation described in this subpart;
(12) Alcoholic beverages that are not an integral part of an
approved promotional activity;
(13) The purchase, lease (except for use in authorized travel
status) or repair of motor vehicles;
(14) Travel of applicants for employment interviews;
(15) Unused non-refundable airline tickets or associated penalty
fees, except where travel was restricted by U.S. Government action or
(16) Independent evaluations or audits, including evaluations or
audits of the activities of a subcontractor, if CCC determines that
such a review is needed in order to confirm past or to ensure future
program agreement or regulatory compliance;
(17) Any arrangement that has the effect of reducing the selling
price of a U.S. agricultural commodity;
(18) Goods, services and salaries of personnel provided by U.S.
industry or foreign third-party;
(19) Membership fees in clubs and social organizations;
(20) Indemnity and fidelity bonds;
(21) Fees for participating in U.S. Government sponsored
activities, other than trade fairs and exhibits;
(22) Business cards that target a U.S. domestic audience;
(23) Seasonal greeting cards;
(24) Office parking fees;
(25) Subscriptions to publications that are not of a technical,
economic, or marketing nature or that are not relevant to the approved
activities of the MAP participant;
(26) Home office domestic administrative expenses, including
(27) Any expenditure on an activity that includes any derogatory
reference or negative comparison to other U.S. agricultural
(28) Any expenditure on an activity that contradicts U.S. foreign
(29) Payment of U.S. and foreign employees' or contractors' share
of personal taxes, except where a foreign country's laws require the
MAP participant to pay such employees' or contractors' share;
(30) Any expenditure made for an activity prior to CCC's approval
of that activity; and
(31) Contributions to a contingency reserve or any similar
provision made for events the occurrence of which cannot be foretold
with certainty as to time, intensity, or with an assurance of their
(f) Special rules for approval of supergrades.
(1) With respect to individuals who are not U.S. citizens and who
are hired by MAP participants either as employees or contractors,
ordinarily, CCC will not reimburse any portion of such individual's
compensation that exceeds the compensation prescribed for the most
comparable position in the FSN salary plan applicable to the country in
which the employee or contractor works. However, a MAP participant may
seek a higher level of reimbursement for a non-U.S. citizen employee or
contractor who will be employed as a country director or regional
director by requesting that CCC approve that employee or contractor as
(2) To request approval of a supergrade, the participant shall
provide CCC with a detailed description of both the duties and
responsibilities of the position and the qualifications and background
of the employee or contractor concerned. The participant shall also
justify why the comparable FSN salary level is insufficient.
(3) Where a non-U.S. citizen employee or contractor will be
employed as a country director, the MAP participant may request
approval for a ``Supergrade I'' salary level, equivalent to a grade
increase over the existing top grade of the FSN salary plan. The
supergrade and its step increases are calculated as the percentage
difference between the second highest and the highest grade in the FSN
salary plan, with that percentage applied to each of the steps
in the top grade. Where the non-U.S. citizen employee or contractor
will be employed as a regional director, with responsibility for
activities and/or offices in more than one country, the MAP participant
may request approval for a ``Supergrade II'' salary level, which is
calculated relative to a ``Supergrade I'' in the same way the latter is
calculated relative to the highest grade in the FSN salary plan.
(4) A U.S. citizen with dual citizenship with another foreign
country or countries shall not be considered a non-U.S. citizen.
(g) CCC may determine, at CCC's discretion, whether any cost not
expressly listed in this section will be reimbursed.
(h) For a brand promotion activity, CCC will reimburse no more than
50 percent of the total eligible expenditures made on that activity.
(i) CCC will reimburse for expenditures made after the conclusion
of participant's program year provided:
(1) The activity was approved by CCC prior to the end of the
(2) The activity was completed within 30 calendar days following
the end of the program year; and
(3) All expenditures were made for the activity within 6 months
following the end of the program year.
(j) A MAP participant shall not use MAP funds for any activity or
any expenses incurred by the MAP 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 CCC.
(k) Except as otherwise provided in this subpart, travel shall
conform to U.S. Federal Travel Regulations (41 CFR parts 301 through
304) and air travel shall conform to the requirements of the Fly
America Act (49 U.S.C. 40118). The MAP participant shall notify the
Attach[eacute]/Counselor in the destination countries in writing in
advance of any proposed travel.
Sec. 1485.18 Reimbursement procedures.
(a) Participants are required to use CCC's Internet-based system to
request reimbursement for eligible MAP 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
(8) If applicable, any amount previously claimed that has not been
(b) All claims for reimbursement shall be submitted by the MAP
participant's U.S. office to CCC.
(c) CCC will not reimburse a claim for less than $10,000, except
that CCC will reimburse a final claim for a MAP participant's program
year for a lesser amount.
(d) CCC will not reimburse claims submitted later than 6 months
after the end of a MAP participant's program year.
(e) If CCC overpays a reimbursement claim, the MAP participant
shall repay CCC within 30 days of such overpayment the amount of the
overpayment either by submitting a check payable to CCC or by
offsetting its next reimbursement claim. The MAP participant shall make
such payment in U.S. dollars, unless otherwise approved in advance by
(f) If a MAP participant receives a reimbursement or offsets an
advanced payment which is later disallowed, the MAP participant shall
repay CCC within 30 days of such disallowance the amount disallowed
either by submitting a check payable to CCC or by offsetting its next
reimbursement claim. The MAP participant shall make such payment in
U.S. dollars, unless otherwise approved in advance by CCC.
(g) MAP funds may be expended by MAP participants only on
legitimate, approved activities as set forth in the program agreement
and approval letter. If a MAP participant discovers that MAP funds have
not been properly spent, it shall notify CCC and shall within 30 days
of its discovery repay CCC the amount owed either by submitting a check
payable to CCC or by offsetting its next reimbursement claim. The MAP
participant shall make such payment in U.S. dollars, unless otherwise
approved in advance by CCC.
(h) The MAP participant shall report any actions that may have a
bearing on the propriety of any claims for reimbursement in writing to
Sec. 1485.19 Advances.
(a) Policy. In general, CCC operates the MAP on a reimbursable
basis. CCC will not advance funds to a MAP participant for brand
(b) Exception. A MAP participant for generic promotion activities
may request an advance of MAP funds from CCC, provided the MAP
participant meets the criteria for advance payments set forth in the
applicable parts of this title. If CCC approves the request, prior to
making an advance, CCC may require the MAP participant to submit
security in a form and amount acceptable to CCC to protect CCC's
financial interests. CCC will not approve any request for an advance
submitted later than 3 months after the end of a MAP participant's
program year. At any given time, total payments advanced shall not
exceed 40 percent of a MAP participant's approved generic activity
budget for the program year.
(c) Interest. A MAP participant shall deposit and maintain in an
insured bank account in the United States all funds advanced by CCC.
The account shall be interest-bearing, unless the exceptions in the
applicable part of this title apply. Interest earned by the MAP
participant on funds advanced by CCC is not program income. The MAP
participant shall remit any interest earned on the advanced funds to
the appropriate entity as set forth in the applicable part of this
title. The MAP participant shall, no later than 10 days after the end
of each calendar quarter, submit a financial statement to CCC
accounting for all funds advanced and all interest earned.
(d) Refunds due CCC. A MAP participant shall fully expend all
advances on approved generic promotion activities within 90 calendar
days after the date of disbursement by CCC. By the end of the 90
calendar days, the MAP participant must submit reimbursement claims to
offset the advance and submit a check made payable to CCC for any
unexpended balance. The MAP participant shall make such payment in U.S.
dollars, unless otherwise approved in advance by CCC.
Sec. 1485.20 Employment practices.
(a) A MAP participant shall enter into written contracts with all
employees and shall ensure that all terms, conditions, and related
formalities of such contracts conform to governing local law.
(b) A MAP participant shall in its overseas offices, conform its
office hours, work week, and holidays to local law and to the custom
generally observed by U.S. commercial entities in the local business
(c) A MAP participant may pay salaries or fees in any currency
(U.S. or foreign). Participants should consult local laws regarding
Sec. 1485.21 Financial management.
(a) A MAP participant shall implement and maintain a financial
management system that conforms to generally accepted accounting
principles. A MAP participant's financial
management system shall comply with the standards set forth in the
applicable parts of this title.
(b) A MAP participant shall institute internal controls and provide
written guidance to commercial entities participating in its activities
to ensure their compliance with these regulations.
(c) A MAP participant shall retain records and permit access to
records in accordance with the requirements of the applicable parts of
this title. These records shall include all documents related to
employment such as employment applications, contracts, position
descriptions, leave records, salary changes, and all records pertaining
(d) A MAP 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 $75.00. CCC may, from time to time, determine a different
minimum level and announce that minimum level in writing to all MAP
participants and on the FAS Web site;
(3) The exchange rate used to calculate the dollar equivalent of
expenditures made in a foreign currency and the basis for such
(4) Copies of reimbursement claims;
(5) An itemized list of claims charged to each of the 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 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. MAP participants must retain and make
available for audit documentation related to claimed contributions.
(e) Upon request, a MAP participant shall provide to CCC originals
of documents supporting reimbursement claims.
Sec. 1485.22 Reports.
(a) End-of-Year Contribution Report. Not later than 6 months after
the end of its program year, a MAP participant shall submit two copies
of a report that identifies, by activity and cost category and in U.S.
dollar equivalent, contributions made by the participant, the U.S.
industry, and the States during that program year. 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), a MAP 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 year, a MAP participant shall submit a report on any research
conducted pursuant to the approved MAP program.
(d) Evaluation reports. Not later than 6 months after the end of
its program year, a MAP participant shall submit a report on any
evaluations conducted in accordance with the approved MAP program.
(e) A MAP participant shall submit to CCC an annual audit in
accordance with the applicable parts of this title. If CCC requires an
additional audit with respect to a particular agreement, the MAP
participant shall arrange for such audit and shall submit to CCC, in
the manner to be specified by CCC, such audit of the agreement.
(f) CCC may require the submission of additional reports.
(g) A MAP participant's program agreement and/or approval letter
shall specify to whom the participant shall submit the reports required
in this section.
Sec. 1485.23 Evaluation.
(a) Policy. (1) The Government Performance and Results Act (GPRA)
of 1993 (5 U.S.C. 306; 31 U.S.C. 1105, 1115-1119, 3515, 9703-9704)
requires performance measurement of Federal programs, including the
MAP. Evaluation of the MAP's effectiveness will depend on a clear
statement by participants of goals to be met within a specified time,
schedule of measurable milestones for gauging success, plan for
achievement, and assessment of results of activities at regular
intervals. The overall goal of the MAP and of individual participants'
programming is to achieve or maintain sales that would not have
occurred in the absence of MAP funding. A MAP participant that can
demonstrate such sales, taking into account extenuating factors beyond
the participant's control, will have met the overall objective of the
GPRA and the need for evaluation.
(2) Evaluation is an integral element of program planning and
implementation, providing the basis for the strategic plan. The
evaluation results guide the development and scope of a MAP
participant's program, contributing to program accountability, and
providing evidence of program effectiveness.
(b) All MAP 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 CCC no later than 6 months
following the end of the participant's program year.
(c) MAP participants conducting a branded program must also
complete a brand promotion evaluation. A brand promotion evaluation is
a review of the U.S. and foreign commercial entities' export sales to
determine whether the activity achieved the goals specified in the
approved MAP program. This evaluation shall be completed and submitted
to CCC no later than 6 months following the end of the participant's
(d) When appropriate or required by CCC, a MAP participant shall
complete a program evaluation. A program evaluation is a review of the
MAP participant's entire program, or an appropriate portion of the
program as agreed to by the MAP participant and CCC, to determine the
effectiveness of the MAP participant's strategy in meeting specified
goals. Actual scope and timing of the program evaluation shall be
determined by the MAP participant and CCC and specified in the approval
letter. A MAP participant 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, 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
(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 CCC, a MAP participant shall complete and submit program success
stories. From time to time, CCC will announce to all MAP participants
in writing and on the FAS Web site the detailed requirements for
completing and submitting program success stories.
Sec. 1485.24 Compliance reviews and notices.
(a) USDA staff may conduct compliance reviews of MAP participants'
activities under the MAP program. MAP participants shall cooperate
fully with relevant USDA staff conducting compliance reviews and shall
comply with all requests from USDA staff to facilitate the conduct of
(b) Upon conclusion of the compliance review, USDA staff will
provide either a written compliance report or a letter to the MAP
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 MAP participant shall repay CCC
the amount owed either by submitting a check payable to CCC or by
offsetting its next reimbursement claim. The MAP participant shall make
such payment in U.S. dollars, unless otherwise approved in advance by
CCC. In the absence of any finding of funds due to CCC or other non-
compliance, CCC will issue a letter to the MAP participant. If, as a
result of a compliance review, CCC determines that further review is
needed in order to ensure compliance with the requirements of MAP, CCC
may require the participant to contract for an independent audit.
(c) In addition, CCC may notify a MAP participant in writing at any
time if CCC determines that CCC may be entitled to recover funds from
the participant. CCC will explain the basis for any recovery of funds
from the participant in the written notice. The MAP participant shall
within 30 days of the date of the notice repay CCC the amount owed
either by submitting a check payable to CCC or by offsetting its next
reimbursement claim. The MAP participant shall make such payment in
U.S. dollars, unless otherwise approved in advance by CCC.
(d) The fact that a compliance review has been conducted by USDA
staff does not signify that a MAP participant is in compliance with its
program agreement, approval letter and/or applicable laws and
(1) A MAP participant may, within 30 days of the date of the
compliance report or written notice from CCC, submit a response to CCC.
CCC, at its discretion, may extend the period for response.
(2) After review of the participant's response, CCC shall determine
whether the participant owes any funds to CCC and will inform the
participant in writing of the basis for the determination. CCC will
initiate action to collect such amount by providing the participant a
notice of delinquency and a 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 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, CCC will set a date and
time for the hearing. The hearing will be an informal proceeding. A
transcript will not ordinarily be prepared unless the participant bears
the cost of a transcript; however, CCC may in its discretion have a
transcript prepared at CCC's expense.
(5) CCC will base its final determination upon information
contained in the administrative record. The participant must exhaust
all administrative remedies contained in this section before pursuing
judicial review of a determination by CCC.
Sec. 1485.25 Failure to make required contribution.
A MAP participant's required contribution will be specified in the
approval letter. If the MAP participant's required contribution is
specified as a dollar amount and the MAP participant does not make the
required contribution, the MAP participant shall pay to CCC in dollars
the difference between the amount actually contributed and the amount
specified in the approval letter. If the MAP participant's required
contribution is specified as a percentage of the total amount
reimbursed by CCC, the MAP participant may either return to CCC the
amount of funds reimbursed by CCC to increase its actual contribution
percentage to the required level or pay to CCC in dollars the
difference between the amount actually contributed and the amount of
funds necessary to increase its actual contribution percentage to the
required level. A MAP participant shall remit such payment within 90
days after the end of its program year. The MAP participant shall make
such payment in U.S. dollars, unless otherwise approved in advance by
Sec. 1485.26 Submissions.
For all permissible methods of delivery, submissions required by
this subpart shall be deemed submitted as of the date received by CCC.
Sec. 1485.27 Disclosure of program information.
(a) Documents submitted to CCC by 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 a MAP participant pursuant to a MAP
program agreement and/or approval letter shall be subject to the
provisions relating to intangible property in the applicable parts of
Sec. 1485.28 Ethical conduct.
(a) A MAP 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. A MAP participant shall conduct its business in
the United States in accordance with applicable Federal, state and
local laws and regulations. All MAP participants must comply with the
regulations in the applicable parts of this title.
(b) Except for a nonprofit U.S. agricultural cooperative or a U.S.
for-profit entity, neither a MAP participant nor its affiliates shall
make export sales of U.S. agricultural commodities and products covered
under the terms of the agreement. Nor shall such entities charge a fee
for facilitating an export sale. A MAP participant may, however,
collect check-off funds and membership fees that are required for
membership in the MAP participant. 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) A MAP participant shall not limit participation in its MAP
activities to members of its organization. Participants agree to ensure
that its programs and activities are open to all otherwise qualified
individuals and entities on an equal basis and without regard to any
non-merit factors. The MAP participant shall publicize its program and
make participation possible for commercial entities throughout the
relevant commodity sector or, in the case of SRTGs, throughout the
corresponding region. This includes providing to such commercial
entities, upon request, a copy of any document in its possession or
control containing market information developed and produced under the
terms of its MAP agreement. The participant may charge a fee not to
exceed the costs for assembling, duplicating and distributing the
(d) A MAP participant shall select U.S. agricultural industry
representatives to participate in activities such as trade teams, sales
teams, and trade fairs based on criteria that ensure participation on
an equitable basis by a broad cross section of the U.S. industry. If
requested by CCC, a MAP participant shall submit such selection
criteria to CCC for approval.
(e) All MAP participants should endeavor to ensure fair and
accurate fact-based advertising. Deceptive or misleading promotions may
result in cancellation or termination of a participant's MAP agreement
and the recovery of CCC funds related to such promotions from the
(f) The MAP participant must report any actions or circumstances
that may have a bearing on the propriety of the program to the
appropriate Attach[eacute]/Counselor, and its U.S. office shall report
such actions in writing to CCC.
Sec. 1485.29 Contracting procedures.
(a) Neither CCC nor any other agency of the U.S. Government nor any
official or employee of CCC, FAS, USDA, or the U.S. Government has any
obligation or responsibility with respect to MAP participant contracts
with third parties.
(b) A MAP participant shall comply with the procurement standards
set forth below and in the applicable parts of this title when
procuring goods and services and when engaging in construction to
implement program agreements. For purposes of this subpart, the ``small
purchase threshold'' referenced in 7 CFR part 3019 is set at $100,000.
(c) Each MAP participant shall establish contracting procedures
that are open, fair, and competitive.
(d) Prior to entering into any contracts during a program year, a
MAP participant must submit to CCC, for CCC approval, a written
contracting plan. This contracting plan shall list each contract with
an annual value of $25,000 or more that the MAP participant expects to
be party to during the program year, the method for evaluating
proposals received for each contract competition, the method for
monitoring and evaluating performance under contracts, and the method
for initiating corrective action for unsatisfactory performance under
contracts. The MAP participant may modify and resubmit this plan for
re-approval at any time during the program year. In addition to the
requirements set forth in the applicable parts of this title, this plan
shall include, at a minimum, the following:
(1) Procedures for developing and publicizing requests for
proposals, invitations for bids, and similar documents that solicit
third party offers to provide goods or services. Solicitations for
professional and technical services shall be based on clear and
accurate descriptions of and requirements related to the services to be
procured. Such procedures must include a conflict-of-interest provision
that states that no employee, officer, board member, or agent thereof
of the MAP participant will participate in the review, selection, award
or administration of a contract if a real or apparent conflict of
interest would arise. Such a conflict would arise when an employee,
official, board member, agent, or the employee's, officer's, board
member's, 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
(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;
(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 exceeds $25,000 or more;
(5) Requirements to conduct an appropriate form of competition
every 3 years on all multi-year contracts with an annual value of
$25,000 or more. CCC may, from time to time, determine a different
minimum value and announce that minimum value in writing to all MAP
participants and on the FAS Web site. However, contracts for in-country
representation are not required to be re-competed after the initial
reward. Instead, the performance of in-country representation must be
evaluated and documented by the MAP participant annually to ensure that
the terms of the contract are being met in a satisfactory manner; and
(6) Requirements for written contracts with each provider of goods,
services, or construction work. Such contracts shall require such
providers to maintain adequate records to account for funds provided to
them by the MAP participant.
(e) A MAP participant may undertake MAP promotional activities
directly or through a domestic or foreign third-party. However, the MAP
participant shall remain responsible and accountable to CCC for all MAP
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 CCC in relation to such
third-party's promotional activities and expenditures.
Sec. 1485.30 Property standards.
The MAP participant shall insure all real 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. 1485.31 Anti-fraud requirements.
(a) All MAP participants.
(1) All MAP participants annually shall submit to CCC for approval
a detailed fraud prevention program. The fraud prevention program
shall, at a minimum, include an annual review of physical controls and
weaknesses, a standard process for investigating and remediation of
suspected fraud cases, and training in risk management and fraud
detection for all current and future employees. The MAP participant
shall not conduct or permit any MAP promotion activities to occur
unless and until CCC has communicated in writing approval of the MAP
participant's fraud prevention program.
(2) The MAP participant, within five business days of receiving an
allegation or information giving rise to a reasonable suspicion of
misrepresentation or fraud that could give rise to a claim by CCC,
shall report such allegation or information in writing to such USDA
personnel as specified in the participant's MAP program agreement and/
or approval letter. The MAP participant shall cooperate fully in any
USDA investigation of such allegation or occurrence of
misrepresentation or fraud and shall comply with any directives given
by CCC or USDA to the MAP participant for the prompt investigation of
such allegation or occurrence.
(b) MAP participants with brand programs.
(1) The MAP participant may charge a fee to brand participants to
cover the cost of the fraud prevention program.
(2) The MAP participant shall repay to CCC funds paid to a brand
participant through the MAP participant on claims that the MAP
participant or CCC subsequently determines are unauthorized or
otherwise non-reimbursable expenses within 30 days of the MAP
participant's determination or CCC's disallowance. The MAP participant
shall repay CCC by submitting a check to CCC or by offsetting the
participant's next reimbursement claim. The MAP participant shall make
such payment in U.S. dollars, unless otherwise approved in advance by
CCC. A MAP participant operating a brand program in strict accordance
with an approved fraud prevention program, however, will not be liable
to reimburse CCC for MAP funds paid on such claims if the claims were
based on misrepresentations or fraud of the brand participant, its
employees or agents, unless CCC determines that the MAP participant was
grossly negligent in the operation of the brand program regarding such
claims. CCC shall communicate any such determination to the MAP
participant in writing.
Sec. 1485.32 Program income.
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 MAP funds, shall be used by the MAP participant in
furtherance of its approved MAP activities in the program year in which
the program income was received. Interest earned on funds advanced by
CCC is not program income.
Sec. 1485.33 Amendment.
A program agreement may be amended only in writing with the consent
of CCC and the MAP participant.
Sec. 1485.34 Noncompliance with an agreement.
If a MAP participant fails to comply with any term in its program
agreement or approval letter, CCC may take one or more of the
enforcement actions set forth in the applicable parts of this title
and, if, appropriate, initiate a claim against the MAP participant,
following the procedures set forth in this subpart. CCC may also
initiate a claim against a MAP participant if program income or CCC-
provided funds are lost due to an action or omission of the MAP
Sec. 1485.35 Suspension, termination, and closeout of agreements.
A program agreement may be suspended or terminated in accordance
with the applicable parts of this title. If an agreement is terminated,
the applicable parts of this title will apply to the closeout of the
Sec. 1485.36 Paperwork reduction requirements.
The paperwork and recordkeeping requirements imposed by this
subpart have been approved by OMB under the Paperwork Reduction Act of
1980. OMB has assigned control number 0551-0026 for this information
Dated: August 19, 2009.
Michael V. Michener,
Administrator, Foreign Agricultural Service, and Executive Vice
President, Commodity Credit Corporation.