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(g) The direct attribution provisions in
part 1400 of this chapter apply to MFP.
Under those rules, any payment to any
legal entity will also be considered for
payment limitation purposes to be a
payment to persons or legal entities
with an interest in the legal entity or in
a sub-entity. If any such interested
person or legal entity is over the
payment limitation because of direct
payment or their indirect interests or a
combination thereof, then the payment
to the actual payee will be reduced
commensurate with the amount of the
interest of the interested person in the
payee. If anyone with a direct or
indirect interest in a legal entity or subentity of a payee entity exceeds the AGI
levels that would allow a producer to
directly receive an MFP payment, then
the MFP payment to the actual payee
will be reduced commensurately with
that interest.
(h) For the purposes of the effect of
lien on eligibility for Federal programs
(28 U.S.C. 3201(e)), CCC waives the
restriction on receipt of funds under
MFP but only as to beneficiaries who, as
a condition of such waiver, agree to
apply the MFP payments to reduce the
amount of the judgment lien.
(i) The provisions of § 718.304 of this
title, ‘‘Failure to Fully Comply,’’ do not
apply to this part.
Richard Fordyce,
Administrator, Farm Service Agency.
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. 2018–18842 Filed 8–28–18; 8:45 am]
BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

7 CFR Part 1489
RIN 0551–AA92

Agricultural Trade Promotion Program
Foreign Agricultural Service
and Commodity Credit Corporation,
USDA.
ACTION: Final rule.
AGENCY:

The Commodity Credit
Corporation (CCC) is issuing a new
regulation to implement the
Agricultural Trade Promotion Program
(ATP). The ATP provides assistance to
U.S. agricultural industries to conduct
activities that promote U.S. agricultural
commodities in foreign markets for
commodities impacted by tariffs,
including activities that address existing
or potential non-tariff barriers to trade.

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

FOR FURTHER INFORMATION CONTACT:

Commodity Credit Corporation

SUMMARY:

This rule specifies, among other things,
eligibility requirements, activities
eligible for reimbursement, contribution
requirements, and application
procedures for the ATP. This rule also
proposes a new information collection
for required program information.
Specific program requirements will be
set forth in future Notices of Funds
Availability (NOFAs) announced
through the Grants.gov website.
DATES:
Effective date: August 30, 2018.
Comment date: We will consider
comments on the Paperwork Reduction
Act (PRA) that we receive by: October
29, 2018.
ADDRESSES: We invite you to submit
comments as required by the PRA for
the information collection activities. In
your comment, specify RIN 0551–NEW,
and include the volume, date, and page
number of this issue of the Federal
Register. You may submit comments by
any of the following methods:
• Federal Rulemaking Portal: Go to
http://www.regulations.gov. Follow the
instructions for submitting comments.
• Email: podadmin@fas.usda.gov.
• Fax: (202) 720–9361.
• Mail or Courier Service: Director,
Program Operations Division, OTP/FAS,
U.S. Department of Agriculture, 1400
Independence Avenue SW, Room 6512,
Stop 1020, Washington, DC 20250–
1020.
Comments will be available for viewing
online at http://www.regulations.gov. In
addition, comments will be available for
public inspection at the above address
during business hours from 8 a.m. to 5
p.m., Monday through Friday, except
holidays.

SUPPLEMENTARY INFORMATION:

Background
The nature and severity of financial
impacts of recent international trade

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actions (for example, the imposition of
tariffs by other countries on U.S.
agricultural products) are disrupting the
marketing of U.S. agricultural
commodities and are outside of the
control of the industries that are being
negatively affected. In response to these
actions by foreign governments, the
Commodity Credit Corporation (CCC)
has decided to exercise its authority
under Section 5 of the CCC Charter Act,
which includes authority for CCC to use
its general powers to ‘‘aid in the
development of foreign markets for . . .
agricultural commodities . . . .’’ [15
U.S.C. 714c(f)], to provide assistance to
eligible organizations for market
promotion activities. ATP funding is
intended to ameliorate the negative
impacts of recent international trade
actions on U.S. agriculture by
developing, maintaining, and expanding
commercial export markets for U.S.
agricultural commodities and products.
ATP Participants may receive assistance
for either generic or branded promotion
activities as well as assistance to
conduct activities to address existing or
potential non-tariff barriers to trade.
The Foreign Agricultural Service
(FAS) will administer the ATP on behalf
of the CCC. Specific program
requirements and details for applying
for assistance under the ATP will be set
forth in future NOFAs announced
through the Grants.gov website.
Eligible Organizations
The ATP is a cost-share program that
is designed to reimburse nonprofit U.S.
agricultural trade organizations,
nonprofit state regional trade groups,
state agencies, U.S. agricultural
cooperatives, and other entities that
conduct approved foreign market
promotion activities and can
demonstrate damages suffered as a
result of tariffs imposed on U.S.
agricultural products in 2018/2019.
When considering eligible nonprofit
U.S. trade organizations, the CCC gives
priority to organizations that have the
broadest producer representation and
affiliated industry participation of the
commodity being promoted. Eligible
activities can be generic or branded in
nature. In order to be eligible for ATP
assistance, U.S. for-profit entities shall
be limited to those whose size does not
exceed 300 percent of the small
business size standards established for
their particular industry and published
at 13 CFR part 121, Small Business Size
Regulations. Eligible for-profit entities
may participate in an ATP Participant’s
brand promotion program. Any ATP
Participant that operates a brand
promotion program will be required to
establish brand program operational

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procedures. An ATP Participant shall
publicize its ATP program and make
participation possible for commercial
entities throughout the relevant
commodity sector or, in the case of State
Regional Trade Groups (SRTGs),
throughout the corresponding region.
General Provisions
The Unified Export Strategy (UES)
internet-based system will be used to
receive ATP applications and to receive
reimbursement requests from ATP
Participants. This is the system that the
CCC uses for applications to and
reimbursement requests under similar
CCC programs, including the Market
Access Program (MAP), the Foreign
Market Development Cooperator
Program (FMD), the Emerging Markets
Program (EMP), the Technical
Assistance for Specialty Crops Program
(TASC), and the Quality Samples
Program (QSP). Any eligible
organization that applied for the 2019
MAP and FMD will be able to add
application information specific to the
ATP to its existing 2019 UES
submission. Details about this process
will be announced in the ATP NOFAs.
Information required in an applicant’s
application are detailed in the
regulation and include, among other
things, a program justification
describing the current market situation
and a strategic plan that describes all
proposed activities and how they will
help accomplish the applicant’s
objective to increase exports and
develop access to new markets. The
CCC will, subject to the availability of
funds, approve those applications that it
considers to present the best
opportunity for developing,
maintaining, or expanding export
markets for U.S. agricultural
commodities.
Participants in the ATP will be
required to contribute a total amount in
goods, services, and/or cash equal to at
least 10 percent of the value of resources
to be provided by the CCC for all generic
promotion activities proposed to be
undertaken by the ATP Participant.
Branded participants will also be
required to contribute in goods,
services, and/or cash equal to at least 50
percent of all brand promotion activities
they undertake under the ATP.
Lists of expenses eligible and
ineligible for reimbursement under the
ATP are also included in the regulation.
Procedures for requesting
reimbursement for eligible
expenditures, or, if appropriate, for
advances of program funds, are
described in the regulation. Because it is
critical that program funds are managed
and accounted for properly, and focused

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on achieving results, paragraphs
regarding financial management,
reporting on outcomes that tie
assistance directly to increased trade,
evaluation, compliance review, and
ethical conduct are included. Finally, to
ensure that funds provided under the
ATP are expended in a cost-effective
manner and protected from fraud,
provisions regarding contracting and
anti-fraud requirements are delineated
in the regulation.
Effective Date
The Administrative Procedure Act (5
U.S.C. 553) provides that notice and
comment and a 30-day delay in the
effective date of the rule are not
required when the rule involves
specified actions, including matters
relating to grants or benefits. This rule
establishes procedures and conditions
related to the provision of assistance to
entities conducting activities that
promote U.S. agricultural commodities
in foreign markets and thus falls within
that exemption. Accordingly, this rule is
effective upon publication in the
Federal Register. Further, the
opportunity for notice and comment
provided in this document is limited to
the PRA requirements for the
information collection activities.
Executive Orders 12866, 13563, 13771
and 13777
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review,’’ direct agencies
to assess all costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasized the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. Executive
Order 13777, ‘‘Enforcing the Regulatory
Reform Agenda,’’ established a federal
policy to alleviate unnecessary
regulatory burdens on the American
people.
The Office of Management and Budget
(OMB) designated this rule as
economically significant under
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ and therefore,
OMB has reviewed this rule. The costs
and benefits of this rule are summarized
below. The full cost benefit analysis is
available on regulations.gov.
Executive Order 13771, ‘‘Reducing
Regulation and Controlling Regulatory
Costs,’’ requires that for every new

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significant or economically significant
regulation issued, the new costs must be
offset by the elimination of at least two
prior regulations. This rule is
considered an E.O. 13771 regulatory
action. The $200 million upfront cost,
when annualized over a perpetual time
horizon and discounted back to its 2016
equivalent using a 7 percent discount
rate, is approximately $11 million.
Cost Benefit Analysis Summary
The ATP is a program to help U.S.
organizations that promote the export of
U.S. agricultural commodities adjust to
changes in export markets due to recent
trade disruptions by providing funding
to modify promotional efforts in
disrupted markets and to increase
promotional efforts in undisrupted
markets. Up to $200 million is available
for assistance through the ATP.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601–612), as amended by the
Small Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA, Pub. L.
104–121), generally requires an agency
to prepare a regulatory flexibility
analysis of any rule whenever an agency
is required by the Administrative
Procedure Act or any other law to
publish a proposed rule, unless the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.
This rule is not subject to the Regulatory
Flexibility Act because the CCC is not
required by the Administrative
Procedure Act or any other law to
publish a proposed rule for this
rulemaking.
Environmental Assessment
The CCC has determined that the ATP
does not constitute a major State or
Federal action that would significantly
affect the human or natural
environment. Consistent with the
National Environmental Policy Act
(NEPA) (42 U.S.C. 4321–4347), no
environmental assessment or
environmental impact statement will be
prepared for this regulatory action.
Executive Order 12372
Executive Order 12372,
‘‘Intergovernmental Review of Federal
Programs,’’ requires consultation with
State and local officials that would be
directly affect by proposed Federal
financial assistance. The objectives of
the Executive Order are to foster an
intergovernmental partnership and a
strengthened Federalism, by relying on
State and local processes for State and
local government coordination and
review of proposed Federal financial

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assistance and direct Federal
development. For reasons specified in
the final rule related notice to 7 CFR
part 3015, subpart V (48 FR 29115, June
24, 1983), the programs and activities
within this rule are excluded from the
scope of Executive Order 12372.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, ‘‘Civil Justice
Reform.’’ This rule will not preempt
State or local laws, regulations, or
policies unless they represent an
irreconcilable conflict with this rule.
The rule will not have retroactive effect.
Before any judicial action may be
brought regarding the provisions of this
rule, the administrative appeal
provisions of 7 CFR part 11 and this part
must be exhausted.

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Executive Order 13132
This rule has been reviewed under
Executive Order 13132, ‘‘Federalism.’’
The policies contained in this rule do
not have any substantial direct effect on
States, on the relationship between the
Federal government and the States, or
on the distribution of power and
responsibilities among the various
levels of government, except as required
by law. Nor does this rule impose
substantial direct compliance costs on
State and local governments. Therefore,
consultation with the States is not
required.
Executive Order 13175
This rule has been reviewed for
compliance with Executive Order
13175, ‘‘Consultation and Coordination
with Indian Tribal Governments.’’
Executive Order 13175 requires Federal
agencies to consult and coordinate with
tribes on a government-to-government
basis on policies that have tribal
implications, including regulations,
legislative comments, proposed
legislation, and other policy statements
or actions that have substantial direct
effects on one or more Indian tribes, on
the relationship between the Federal
Government and Indian tribes or on the
distribution of power and
responsibilities between the Federal
government and Indian tribes.
FAS has assessed the impact of this
rule on Indian tribes and determined
that this rule does not, to the knowledge
of FAS, have tribal implications that
required tribal consultation under
Executive Order 13175. If a tribe
requests consultation, FAS will work
with USDA Office of Tribal Relations to
ensure meaningful consultation is
provided where changes, additions, and
modifications identified herein are not
expressly mandated by Congress.

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The Unfunded Mandates Reform Act of
1995
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA, Pub. L.
104–4) requires Federal agencies to
assess the effects of their regulatory
actions on State local, and Tribal
governments or the private sector.
Agencies generally must prepare a
written statement, including a cost
benefit analysis, for proposed and final
rules with Federal mandates that may
result in expenditures of $100 million or
more in any 1 year for State, local, or
Tribal governments, in the aggregate, or
to the private sector. UMRA generally
requires agencies to consider
alternatives and adopt the more cost
effective or least burdensome alternative
that achieves the objectives of the rule.
This rule contains no Federal mandates,
as defined in Title II of UMRA, for State,
local, and Tribal governments or the
private sector. Therefore, this rule is not
subject to the requirements of sections
202 and 205 of UMRA.
Small Business Regulatory Enforcement
Fairness Act (SBREFA)
This rule is not a major rule under
SBREFA. SBREFA normally requires
that an agency delay the effective date
of a major rule for 60 days from the date
of publication to allow for
Congressional review.
Federal Assistance Programs
The title and number of the Federal
Domestic Assistance Program found in
the Catalog of Federal Domestic
Assistance to which this rule applies is
TBD—Agricultural Trade Promotion
Program and number.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (PRA), the
following new information collection
request that supports ATP was
submitted to OMB for emergency
approval. OMB approved the 6-month
emergency information collection. Since
the information collection activities will
continue for more than the approved 6
months, in addition, through this rule,
the CCC is requesting comments from
interested individuals and organizations
on the information collection activities
related to the ATP as described in this
rule. Following the 60-day public
comment period for this rule, the
information collection request will be
submitted to OMB for the 3-year
approval to ensure adequate time for the
information collection for the duration
of the ATP.
Title: Agricultural Trade Promotion
Program.
OMB Control Number: 0551–New.

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

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(2) Evaluate the accuracy of the FAS’s
estimate of burden including the
validity of the methodology and
assumptions used;
(3) Enhance the quality, utility and
clarity of the information to be
collected;
(4) Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology.
All comments received, including
names and addresses when provided,
will be a matter of public record.
Comments will be summarized and
included in the submission for Office of
Management and Budget approval.
List of Subjects in 7 CFR Part 1489
Agricultural commodities, Exports.
Accordingly, the CCC amends title 7
of the Code of Federal Regulations by
adding part 1489 to read as follows:
PART 1489—AGRICULTURAL TRADE
PROMOTION PROGRAM
Sec.
1489.10 General purpose and scope.
1489.11 Definitions.
1489.12 Participation eligibility.
1489.13 Application process.
1489.14 Application review and formation
of agreements.
1489.15 Operational procedures for brand
programs.
1489.16 Contribution rules.
1489.17 Reimbursement rules.
1489.18 Reimbursement procedures.
1489.19 Advances.
1489.20 Financial management.
1489.21 Reports.
1489.22 Evaluation.
1489.23 Compliance reviews and notices.
1489.24 Failure to make required
contribution.
1489.25 Submissions.
1489.26 Disclosure of program information.
1489.27 Ethical conduct.
1489.28 Contracting procedures.
1489.29 Property standards.
1489.30 Anti-fraud requirements.
1489.31 Program income.
1489.32 Amendment.
1489.33 Noncompliance with an agreement.
1489.34 Suspension, termination, and
closeout of agreements.
1489.35 Paperwork reduction requirements.
Authority: Section 5(f) of the CCC Charter
Act, 15 U.S.C. 714c(f).

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§ 1489.10

General purpose and scope.

(a) This part sets forth the general
terms, conditions, and policies
governing the Commodity Credit
Corporation’s (CCC) operation of the
Agricultural Trade Promotion Program
(ATP). This program will provide
assistance to eligible organizations to

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conduct market promotion activities,
including activities to address existing
or potential non-tariff barriers to trade,
that promote U.S. agricultural
commodities in foreign markets.
Specific program requirements will be
set forth in future Notices of Funds
Availability announced through the
Grants.gov website.
(b)(1) In addition to the provisions of
this subpart, other regulations of general
application issued by the U. S.
Department of Agriculture (USDA),
including the regulations set forth in
Chapter XXX of this title, ‘‘Office of the
Chief Financial Officer, Department of
Agriculture,’’ may apply to the ATP and
ATP participants, to the extent that
these regulations of general application
do not directly conflict with the
provisions of this subpart. These
include, but are not limited to:
(i) 7 CFR part 1, subpart A—Official
Records.
(ii) 7 CFR part 3—Debt Management.
(iii) 7 CFR part 15, subpart A—
Nondiscrimination.
(iv) 2 CFR part 417—Governmentwide Debarment and Suspension (Nonprocurement).
(v) 2 CFR part 418—New Restrictions
on Lobbying.
(vi) 2 CFR part 421—Requirements for
Drug-Free Workplace (Financial
Assistance).
(vii) 48 CFR part 31—Contract Cost
Principles and Procedures of the Federal
Acquisition Regulations.
(2) In addition, relevant provisions of
the CCC Charter Act (15 U.S.C. 714 et
seq.) and any other statutory provisions
that are generally applicable to the CCC
are also applicable to the ATP and the
regulations set forth in this part.
(3) ATP Participants must also
comply with Title VI of the Civil Rights
Act of 1964 and related civil rights
regulations and policies.
(4) Other laws and regulations that
apply to the ATP and ATP Participants
include, but are not limited to:
(i) 2 CFR part 25—Universal Identifier
and Central Contractor Registration.
(ii) 2 CFR part 170—Reporting
Subaward and Executive Compensation
Information.
(iii) 2 CFR part 175—Award Term for
Trafficking in Persons.
(iv) 2 CFR part 180—OMB Guidelines
to Agencies on Governmentwide
Debarment and Suspension
(Nonprocurement).
(v) 2 CFR part 200—Office of
Management and Budget Guidance,
Uniform Administrative Requirements,
Cost Principles, and Audit
Requirements for Federal Awards.
(vi) 2 CFR part 400—Department of
Agriculture, Uniform Administrative

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Requirements, Cost Principles, and
Audit Requirements for Federal Awards.
(vii) 37 CFR part 401.1—Rights to
Inventions Made by Nonprofit
Organizations and Small Business Firms
Under Government Grants, Contracts,
and Cooperative Agreements.
(viii) Executive Order 13224, as
amended, Blocking Property and
Prohibiting Transactions with Persons
Who Commit, Threaten to Commit, or
Support Terrorism.
(c) Under the ATP, the CCC may
provide multi-year grant assistance to
eligible U.S. entities to conduct certain
marketing and promotion activities,
including activities to address existing
or potential non-tariff trade barriers,
aimed at developing, maintaining, or
expanding commercial export markets
for U.S. agricultural commodities. ATP
Participants may receive assistance for
either generic or brand promotion
activities. While activities generally take
place overseas, reimbursable activities
may also take place in the United States.
The CCC expects all activities that occur
in the United States for which ATP
reimbursement is sought to develop,
maintain, or expand the commercial
export market for the relevant U.S.
agricultural commodity in accordance
with the ATP Participant’s approved
ATP program. When considering
eligible nonprofit U.S. trade
organizations, the CCC gives priority to
organizations that have the broadest
producer representation and affiliated
industry participation of the commodity
being promoted.
(d) The ATP generally operates on a
reimbursement basis.
(e) The CCC’s policy is to ensure that
benefits generated by ATP agreements
are broadly available throughout the
relevant agricultural sector and that no
single entity gains an undue advantage.
The CCC also endeavors to enter into
ATP agreements covering a broad array
of agricultural commodity sectors. The
ATP is administered by personnel of the
Foreign Agricultural Service (FAS)
acting on behalf of the CCC.
§ 1489.11

Definitions.

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

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office equipment, office supplies, office
de´cor, office furniture, computer
hardware and software, maintenance,
extermination, parking, business cards);
(2) Personnel (including, but not
limited to, salaries, benefits, payroll
taxes, individual insurance, training);
(3) Communications (including, but
not limited to, phone expenses, internet,
mobile phones, personal digital
assistants, email, mobile email devices,
postage, courier services, television,
radio, walkie talkies);
(4) Management of an organization or
unit of an organization (including, but
not limited to, planning, supervision,
supervisory travel, teambuilding,
recruiting, hiring);
(5) Utilities (including, but not
limited to, sewer, water, energy);
(6) Professional services (including,
but not limited to, accounting expenses,
financial services, investigatory
services).
Approval letter means a document by
which the CCC informs an applicant
that its ATP application has been
approved for funding. This letter may
also approve specific activities and
contain terms and conditions in
addition to the program agreement. This
letter requires a countersignature by the
ATP Participant before it becomes
effective.
ATP means the Agricultural Trade
Promotion Program.
ATP Notice means Agricultural Trade
Promotion Program notices are
documents that CCC issues for
informational purposes. These ATP
notices are made available electronically
at www.fas.usda.gov/programs/
agricultural-trade-promotion-programatp. These notices have no legal effect.
They are intended to alert ATP
Participants of various aspects of CCC’s
current administration of the ATP
program. For example, CCC issues ATP
notices to alert ATP Participants of
procedures for requesting advances,
applicable Federal pay scale rates, lists
of economic and trade sanctions against
certain foreign countries, reporting
formats and computer codes to use with
the UES.
ATP Participant or Participant means
an entity that has entered into an ATP
program agreement with the CCC.
Attache´/Counselor means the FAS
employee representing USDA interests
in the foreign country in which
promotional activities are conducted.
Brand participant means a U.S. forprofit entity or a U.S. agricultural
cooperative that owns the brand(s) of
the U.S. agricultural commodity to be
promoted or has the exclusive rights to
use such brand(s) and that is
participating in the ATP brand

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promotion program of an ATP
Participant. This definition does not
include any U.S. agricultural
cooperatives that are ATP Participants
that apply for ATP funds to implement
their own brand programs.
Brand promotion means an activity
that involves the exclusive or
predominant use of a single U.S.
company name, or the logo or brand
name of a single U.S. company, or the
brand of a U.S. agricultural cooperative,
or any activity undertaken by a brand
participant in the brand program.
CCC means the Commodity Credit
Corporation, including any agency or
official of the United States delegated
the responsibility to act on behalf of the
CCC.
Contribution means an expenditure
made by an ATP Participant, the U.S.
industry, or State agency in support of
an approved activity. This includes
expenditures to be made by entities in
the ATP Participant’s industry in
support of the entities’ related
promotion activities in the markets
covered by the ATP Participant’s
agreement.
Credit memo means a commercial
document, also known as a credit
memorandum, issued by the ATP
Participant to a commercial entity that
owes the ATP Participant a certain sum.
A credit memo is used when the ATP
Participant owes the commercial entity
a sum less than the amount the entity
owes the Participant. The credit memo
reflects an offset of the amount the ATP
Participant owes the entity against the
amount the entity owes to the ATP
Participant.
Demonstration projects means
activities involving the erection or
construction of a structure or facility or
the installation of equipment.
Expenditure means either payment
via the transfer of funds or offset
reflected in a credit memo in lieu of a
transfer of funds.
FAS means Foreign Agricultural
Service, USDA.
FAS website means a website
maintained by FAS providing
information on ATP. It is currently
accessible at www.fas.usda.gov/
programs/agricultural-trade-promotionprogram-atp.
Foreign third party means a foreign
entity that an ATP Participant works
with to promote the export of a U.S.
agricultural commodity under the ATP
program.
Generic promotion means an activity
that is not a brand promotion but,
rather, promotes a U.S. agricultural
commodity generally. A generic
promotion activity may include the
promotion of a foreign brand (i.e., a

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brand owned primarily by foreign
interests and being used to market a
commodity or product in a foreign
market), if the foreign brand uses the
promoted U.S. agricultural commodity
from multiple U.S. suppliers. A generic
promotion activity may also involve the
use of specific U.S. company names,
logos or brand names. However, in that
case, the ATP Participant must ensure
that all U.S. companies seeking to
promote such U.S. agricultural
commodity in the market have an equal
opportunity to participate in the activity
and that at least two U.S. companies
participate. In addition, an activity that
promotes separate items from multiple
U.S. companies will be considered a
generic promotion only if the promotion
of the separate items maintains a unified
theme (i.e., a dominant idea or motif)
and style and is subordinate to the
promotion of the generic theme.
Market means the country or
countries targeted by an activity.
Notification means a document from
the ATP Participant by which the ATP
Participant proposes to CCC changes to
the activities and/or funding levels in an
approved ATP program agreement and/
or approval letter.
Product samples means a
representative part of a larger whole
promoted commodity or group of
promoted commodities. Product
samples include all forms of a promoted
commodity (e.g., fresh or processed),
independent of the ultimate utilization
of the sample. Product samples must be
used in support of international
marketing activities including, but not
limited to, displays, food process
testing, cooking demonstrations, or
trade and consumer tastings.
Program agreement means a
document entered into between CCC
and an ATP Participant setting forth the
terms and conditions of approved
activities under ATP, including any
subsequent amendments to such
agreement.
Program period means a 12-month
period during which an ATP Participant
can undertake activities consistent with
this subpart and its program agreement
and approval letter with CCC. Program
periods will begin on January 1 and end
on December 31 of the same year, or
begin on July 1 and end on June 30 of
the subsequent year.
Promoted commodity means a U.S.
agricultural commodity the sale of
which is the intended result of a
promotional activity.
Sales and trade relations
expenditures (STRE) means
expenditures made on breakfast, lunch,
dinner, receptions, and refreshments at
approved activities; miscellaneous

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courtesies such as checkroom fees, taxi
fares and tips for approved activities;
and decorations for a special
promotional occasion that is part of an
approved activity.
Sales team means a group of
individuals engaged in an approved
activity intended to result in specific
sales.
Small-sized entity means a U.S. forprofit entity that meets the small
business size standards published at 13
CFR part 121, Small Business Size
Regulations.
SRTG means State Regional Trade
Group. An SRTG is a nonprofit
association of state-funded agricultural
promotion agencies.
Temporary contractor means a
contractor, typically a consultant or
other highly paid professional that is
hired on a short term basis to assist in
the performance of an activity.
Trade team means a group of
individuals engaged in an approved
activity intended to promote the
interests of an entire agricultural sector
rather than to result in specific sales by
any of its members.
UES website means a website
maintained by FAS through which
applicants may apply online to ATP and
any other USDA market development
program. The website is currently
accessible to persons with eauthentication certification at https://
apps.fas.usda.gov/ues/webapp/.
Unified Export Strategy (UES) means
a standardized online internet
application developed by USDA and
available for use by entities to apply to
any USDA market development
program, including the ATP.
U.S. agricultural commodity means
any agricultural commodity, including
any food, feed, fiber, forestry product,
livestock, or insect of U.S. origin or fish
harvested from a U.S. aquaculture farm
or harvested by a vessel as defined in
Title 46 of the United States Code, in
waters that are not waters (including the
territorial sea) of a foreign country, and
any product thereof, excluding tobacco.
An agricultural commodity shall be
considered to be U.S. origin if it is
comprised of at least 50 percent by
weight, exclusive of added water, of
agricultural commodities grown or
raised in the United States.
USDA means the United States
Department of Agriculture.
U.S. for-profit entity means a firm,
association, or other entity organized or
incorporated, located and doing
business for profit in the United States,
and engaged in the export or sale of a
U.S. agricultural commodity.

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§ 1489.12

Participation eligibility.

To participate in the ATP as an ATP
Participant, an entity shall be:
(a) A nonprofit U.S agricultural trade
organization;
(b) A nonprofit SRTG;
(c) A U.S. agricultural cooperative; or
(d) A State agency.
§ 1489.13

Application process.

(a) General application requirements.
CCC will periodically issue a Notice of
Funds Availability through the
Grants.gov website that it is accepting
applications for participation in the
ATP. Applications shall be submitted in
accordance with the terms and
requirements specified in the Notice
and in these regulations. Applicants are
encouraged to submit a UES through the
UES internet website, but are not
required to do so. Applicants may apply
to conduct a generic promotion program
and/or a brand promotion program that
provides ATP funds to brand
participants for branded promotion, as
well as to conduct other market
promotion activities including activities
to address existing or potential nontariff trade barriers. An applicant that is
a U.S. agricultural cooperative may also
apply for funds to conduct its own
brand promotion program.
(1) Applicant and program
information. All applications shall
contain:
(i) The name, address, and internet
location of the home page of the
applicant organization;
(ii) The name of the applicant’s Chief
Executive Officer;
(iii) The name, telephone number, fax
number, and email address of the
applicant’s primary contact person;
(iv) The name(s) of the person(s)
responsible for managing the proposed
program;
(v) A description of the applicant
organization, including the type of
organization of the applicant (e.g.,
nonprofit SRTG), its mission, and the
statutory authorities by which it is
constituted and under which it operates,
if applicable;
(vi) Tax exempt identification number
of the applicant, if applicable;
(vii) Beginning and ending dates for
proposed program period (mm/dd/yy–
mm/dd/yy);
(viii) Dollar amount of CCC resources
requested for generic activities;
(ix) Dollar amount of CCC resources
requested for brand activities;
(x) Dollar amount of CCC resources
requested for other market promotion
activities, including activities to address
existing or potential non-tariff trade
barriers;
(xi) Total dollar amount of CCC
resources requested;

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(xii) Percentage of CCC resources
requested for general administrative
expenses;
(xiii) A Dun and Bradstreet DUNS
number for the applicant;
(xiv) A description of the applicant
organization’s membership and
membership criteria;
(xv) A list of organizations affiliated
with the applicant, including parent
organizations, subsidiaries, and
partnerships;
(xvi) A description of the applicant’s
management and administrative
capability;
(xvii) A description of the applicant’s
prior export promotion experience;
(xviii) Value, in U.S. dollars, of
proposed contributions from the
applicant or the applicant’s proposed
contribution stated as a percentage of
the total dollar amount of CCC resources
requested; and
(xix) Value, in U.S. dollars, of
proposed contributions from other
sources.
(2) Program justification. All
applications shall contain:
(i) A description of the promoted U.S.
agricultural commodity(s), its
harmonized tariff classification, the
applicable commodity aggregate code
(available from the UES website) and
the percentage of U.S. origin content by
weight, exclusive of added water;
(ii) A description of the anticipated
supply and demand situation for the
promoted U.S. agricultural
commodity(s) as well as a
demonstration of loss suffered as a
result of imposed tariffs (reduced sales,
lost revenue, and decreased market
share, etc.);
(iii) The volume and value of exports
of the promoted U.S. agricultural
commodity(s) to the targeted markets for
the most recent 3-year period;
(iv) If the proposal is for 2 or more
years, an explanation why the proposal
should be funded on a multi-year basis;
and
(v) A certification and, if requested by
CCC, a written explanation supporting
the certification that any funds received
will supplement, but not supplant, any
private or third-party funds or other
contributions to program activities. An
explanation, if one is requested, shall
indicate why the applicant is unlikely to
carry out the activities without Federal
financial assistance. In determining
whether Federal funds would
supplement or supplant private or thirdparty funds or contributions, CCC will
consider the applicant’s prior overall
marketing budget in CCC market
development programs from year-toyear, variations in promotional

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strategies within a country, and new
markets.
(3) Proposed program’s strategic plan.
(i) All applications shall include a
strategic plan that contains:
(A) A description of overall long term
strategic goals to be advanced by the
proposed activities for the ensuing 3–5
years;
(B) An explanation of the
organization’s strategic planning process
and identification of priority target
markets, including a summary of
proposed budgets by country and
commodity aggregate code;
(C) A description of the world market
situation for the exported U.S.
agricultural commodity(s);
(D) A description of competition from
other exporters;
(E) An evaluation plan describing the
applicant’s goals and the applicant’s
plans for monitoring and evaluating
performance towards achieving these
goals. This evaluation plan should set
forth specific goals and benchmarks set
at regular intervals to be used to identify
results against identified constraints and
opportunities and to measure progress
made in the target market. Evaluation of
a proposed ATP program’s effectiveness
will depend on a clear statement by the
applicant of goals, method of
achievement, and expected results of
programming at regular intervals. The
overall goal of the ATP and of
individual Participants’ programming is
to restore or increase sales that would
not have occurred in the absence of ATP
funding. An ATP Participant may
modify and resubmit this plan for reapproval at any time during the program
period.
(F) For each target country, five years
or as many years as are available of:
(1) Historical U.S. export data;
(2) U.S. market share; and
(3) CCC market development program
funds received by the applicant;
(G) For each target country, three
years of projected U.S. export data and
U.S. market share;
(H) Country strategy, including
market constraint(s) impeding U.S.
exports (e.g., trade barriers) or
opportunities present and the strategy
proposed to overcome constraints or
take advantage of the opportunities,
previous activities in the country, and
the projected impact of the proposed
program on U.S. exports;
(I) A description of any demonstration
projects, if applicable;
(J) Data summarizing the applicant’s
historical and projected exports, market
share, and CCC market development
program budgets of the promoted U.S.
agricultural commodity(s);

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(K) A written presentation of all
proposed activities including:
(1) A short description of the relevant
market constraint or opportunity;
(2) A budget for each proposed
activity, identifying the source of funds.
(ii) Applications for brand promotion
assistance shall also include in their
strategic plans:
(A) A description of how the brand
promotion program will be publicized
to U.S. industry; and
(B) The criteria that will be used to
allocate funds to U.S. for-profit entities
and U.S. agricultural cooperatives.
(b) Requests for addition evaluation
information. CCC may request any
additional information that it deems
necessary to evaluate an application,
including, but not limited to,
performance measurement information.
(c) Special rules governing
demonstration projects funded with
CCC resources. CCC will consider
proposals for demonstration projects,
provided:
(1) No more than one such
demonstration project per constraint is
undertaken within a market;
(2) The constraint to be addressed in
the target market is a lack of technical
knowledge or expertise;
(3) The demonstration project is a
practical and cost effective method of
overcoming the constraint; and
(4) A third-party must participate in
such project through a written
agreement with the ATP Participant.
(d) Universal Identifier and Central
Contractor Registration (CCR). In
accordance with 2 CFR part 25, each
entity that applies to the ATP program
and does not qualify for an exemption
under 2 CFR 25.110 must:
(1) Be registered in the CCR prior to
submitting an application or plan;
(2) Maintain an active CCR
registration with current information at
all times during which it has an active
Federal award or an application or plan
under consideration by CCC; and
(3) Provide its DUNS number in each
application or plan it submits to CCC.
(e) Reporting Subaward and Executive
Compensation Information. In
accordance with 2 CFR part 170, each
entity that applies to the ATP program
and does not qualify for an exception
under 2 CFR 170.110(b) must ensure it
has the necessary processes and systems
in place to comply with the applicable
reporting requirements of 2 CFR part
170 should it receive ATP funding.
§ 1489.14 Application review and
formation of agreements.

(a) General. CCC will, subject to the
availability of funds, approve those
applications that it considers to present

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the best opportunity for developing,
maintaining, or expanding export
markets for U.S. agricultural
commodities. The selection process, by
its nature, involves the exercise of
judgment. CCC’s choice of Participants
and proposed promotion projects
requires that it consider and weigh a
number of factors, some of which
cannot be mathematically measured—
e.g., market opportunity, market
strategy, and management capability.
CCC may require that an applicant
participate in the ATP through another
ATP Participant.
(b) Application review criteria. In
assessing the likelihood of success of
the applications it receives and deciding
which it will approve, CCC will follow
results-oriented management principles
and consider the following criteria:
(1) The effectiveness of program
management;
(2) Soundness of accounting
procedures;
(3) The nature of the applicant
organization. With respect to nonprofit
U.S. trade organizations, preference will
be given to those organizations with the
broadest base of producer representation
of and affiliated industry participation
for the commodity being promoted;
(4) Prior export promotion experience;
(5) Appropriateness of staffing;
(6) Adequacy of the applicant’s
strategic plan in the following
categories:
(i) Description of target market
conditions;
(ii) Description of and plan for
addressing market constraints and
opportunities;
(iii) Breadth of industry participation
in strategic planning process;
(iv) Strategic prioritization identified
in proposed plan;
(v) Export volume and value and
market share goals in each target
country;
(vi) Description of evaluation plan
and suitability of the plan for
performance measurement; and
(vii) Past CCC market development
program results and/or evaluations,
including program success stories.
(c) Allocation factors. CCC determines
which applications to approve and
develops preliminary recommended
funding levels for each approved
application based on the following
factors, in addition to those in
paragraph (b) of this section. CCC
determines final funding levels after
allocating available funds to approved
applications on the basis of criteria that
will be fully described in each program
period’s ATP Notice of Funds
Availability announcement:
(1) Size of the budget request in
relation to projected value of exports;

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(2) Where applicable, size of the
budget request in relation to actual
value of exports in prior years;
(3) Where applicable, Participant’s
past projections of exports compared
with actual exports;
(4) Level of contributions by the
applicant and by all other sources to
meet minimum cost share requirements;
(5) Market share goals in target
country(ies);
(6) The percentage by weight,
exclusive of added water, of U.S.
agricultural commodities contained in
the promoted products;
(7) The degree of value-added
processing in the United States;
(8) Proposed ATP-funded general
administrative and overhead costs
compared to proposed ATP-funded
direct promotional costs; and
(d) Approval decision—(1) Approval
criteria and factors. CCC will approve
those applications that it determines
best satisfy the criteria and factors
specified in paragraphs (b) and (c) of
this section.
(2) Notification of decision. CCC will
notify each applicant in writing of the
final disposition of its application.
(e) Formation of agreements. CCC will
send a program agreement (or
amendment to an existing program
agreement), an approval letter, and a
signature card to each approved
applicant. The program agreement or
amendment and the approval letter will
outline which activities and budgets are
approved and will specify any special
terms and conditions applicable to an
ATP Participant’s program, including
any requirements with respect to
contributions and program evaluations.
An applicant that decides to accept the
terms and conditions contained in the
program agreement or amendment and
the approval letter must so indicate by
having its Chief Executive Officer (CEO)
or designee sign the program agreement
or amendment and the approval letter
and submit these to CCC. Final
agreement shall occur when the
program agreement or amendment and
the approval letter are signed by both
parties.
(f) Signature cards. The ATP
Participant shall designate at least two
individuals in its organization to sign
program agreements and amendments,
approval letters, reimbursement claims,
and advance requests. The ATP
Participant shall submit the signature
card signed by those designated
individuals and by the ATP
Participant’s CEO to CCC. The
Participant shall immediately notify
CCC of any changes in signatories and
shall submit a revised signature card
accordingly.

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(g) UES ID and passwords. CCC will
provide each ATP Participant with IDs
and passwords for the UES website, as
necessary. ATP Participants shall
protect these IDs and passwords in
accordance with USDA’s information
technology policies that CCC will
provide to ATP Participants. ATP
Participants shall immediately notify
CCC whenever a person who possesses
the ID and password information no
longer needs such information or a
person who is not authorized gains such
information.
(h) Annual certifications. An ATP
Participant through which U.S. forprofit entities are participating in the
ATP program shall obtain annual
certifications from all such entities that
certify their size or their status as U.S.
agricultural cooperatives, as defined in
these regulations. The Participant shall
retain these certifications in accordance
with the recordkeeping requirements of
this part.
(i) Changes to activities and funding—
(1) Adding a new activity. (i) An ATP
Participant may not conduct a new
activity without first obtaining an
approved activity budget for such
change. To request approval of such
activity budget, the ATP Participant
shall submit a notification to CCC.
(ii) A notification for a new activity
shall provide an activity justification
and identify any related adjustments to
the approved strategic plan, including
changes in market, constraint, or
opportunity that the activity proposes to
address. The notification shall contain
the activity description, the proposed
budget, and a justification of transfer of
funds.
(iii) After receipt of the notification,
CCC will inform the ATP Participant via
the UES website whether the requested
budget is approved.
(2) Modifying existing activities and
their funding levels. (i) An ATP
Participant desiring to increase the
funding level for existing, approved
activities addressing a single constraint
or opportunity by more than $25,000 or
25 percent of the approved funding
level, whichever is greater, must first
submit a notification explaining the
adjustment to CCC before making such
change.
(ii) An ATP Participant may make
significant adjustments below that
threshold to the funding levels for
existing, approved activities without
prior notification to CCC, only if it
submits a notification explaining the
adjustments to CCC no later than 30
days after the change. Minor
adjustments to existing, approved
activities and/or funding levels do not
require notification.

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(iii) Notifications shall describe the
activity, changes to the activity, the
existing funding level, the proposed
funding level, and a justification for
transfer of funds, if applicable.
§ 1489.15 Operational procedures for
brand programs.

(a) Where CCC approves an
application by an ATP Participant to
run a brand promotion program that
will include brand participants, the ATP
Participant shall establish brand
program operational procedures. The
ATP Participant shall submit to CCC for
approval its proposed brand program
operational procedures. CCC will notify
all ATP Participants in writing in each
Participant’s approval letter and through
the FAS website as to applicable
submission dates for and dates for
approvals of brand program operation
procedures. Such procedures shall
include, at a minimum, a brand program
application, application procedures,
application review criteria, brand
participant eligibility requirements, a
participation agreement, reimbursement
requirements, compliance requirements,
reporting and recordkeeping
requirements, employment practices,
financial management requirements,
contracting procedures, and evaluation
requirements. The ATP Participant must
submit to CCC for approval any
proposed changes to already approved
brand program operational procedures
before implementing such proposed
changes.
(b) The ATP Participant shall not
enter into any participation agreements
with brand participants nor shall it
implement any ATP brand activities
unless and until CCC has communicated
in writing its approval of the proposed
operational procedures to the ATP
Participant.
(c) Participation agreements between
ATP Participants and brand
participants: Where CCC approves an
ATP Participant’s application to run a
brand promotion program that will
include brand participants, the ATP
Participant shall enter into participation
agreements with brand participants.
Brand participants’ size may not exceed
300 percent of the applicable small
business size standard. These
agreements must:
(1) Specify a time period for such
brand promotion and require that all
brand promotion expenditures be made
within the ATP Participant’s approved
program period;
(2) Make no allowance for extension
or renewal;
(3) Limit reimbursable expenditures
to those made in countries and for

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activities approved in the brand
participant’s activity plan;
(4) Specify the percentage of
promotion expenditures that will be
reimbursed, reimbursement procedures,
and documentation requirements;
(5) Include a written certification by
the brand participant that it either owns
the brand of the product it will promote
or has exclusive rights to promote the
brand in each of the countries in which
promotion activities will occur;
(6) Require that all product labels,
promotional material, and advertising
will identify the origin of the U.S.
agricultural commodity as ‘‘American’’,
‘‘Product of the United States of
America’’, ‘‘Product of the U.S.’’,
‘‘Product of the U.S.A.’’, ‘‘Product of
America’’, ‘‘Grown in the United States
of America’’, ‘‘Grown in the U.S.’’,
‘‘Grown in the U.S.A.’’, ‘‘Grown in
America’’, ‘‘Made in the United States of
America,’’ ‘‘Made in the U.S.’’, ‘‘Made
in the U.S.A.’’, ‘‘Made in America’’, or
product of, grown in or made in any
state or territory of the United States of
America spelled out in its entirety, or
other U.S. regional designation if
approved in advance by the CCC; that
such origin identification will be
conspicuously displayed in a manner
easily observed as identifying the origin
of the product; and that such origin
identification will conform, to the
extent possible, to the U.S. standard of
1⁄6 inch (.42 centimeters) in height based
on the lower case letter ‘‘o’’. The use of
the above terms as a descriptor or in the
name of the product (e.g., Cincinnati
style chili, Gina’s American Pizza) does
not satisfy the product origin
requirement. Phrases ‘‘product of’’,
‘‘grown in’’ or ‘‘made in’’ are
encouraged, but not required. An ATP
Participant may request an exemption
from this requirement on a case-by-case
basis. All such requests shall be in
writing and include justification
satisfactory to the CCC that this labeling
requirement would hinder an ATP
Participant’s promotional efforts. CCC
will determine, on a case by case basis,
whether sufficient justification exists to
grant an exemption from the labeling
requirement. In addition, the CCC may
temporarily waive this requirement
where the CCC has determined that
such labeling will likely harm sales
rather than help them. Such
determinations will be announced to
ATP Participants via an ATP notice
issued on the FAS website;
(7) Include a written certification by
the brand participant that identifies its
size on the date of its application for
branded program funding or that it is a
U.S. agricultural cooperative;

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(8) Require that the brand participant
submit to the ATP Participant a
statement certifying that any Federal
funds received will supplement, but not
supplant, any private or third party
funds or other contributions to program
activities; and
(9) Require the brand participant to
maintain all original records and
documents relating to program activities
for three calendar years following the
end of the applicable program period
and make such records and documents
available upon request to authorized
officials of the U.S. Government.
§ 1489.16

Contribution rules.

(a) In ATP generic promotion
programs, an ATP Participant shall
contribute a total amount in goods,
services, and/or cash equal to at least 10
percent of the value of resources to be
provided by the CCC for all generic
promotion activities proposed to be
undertaken by the ATP Participant.
(b) In ATP brand promotion programs,
an ATP Participant conducting its own
brand promotion that is a U.S.
agricultural cooperative or a small-sized
brand participant shall contribute at
least 50 percent of the total eligible
expenditures made on each approved
brand promotion.
(c) An ATP Participant must use its
own funds and may not use ATP
program funds to pay any
administrative costs of the ATP
Participant’s U.S. office(s), including
legal fees, except as set forth in this
subpart. Where the ATP Participant uses
its own funds to pay for administrative
costs, such costs may be counted in
calculating the amount of contributions
the ATP Participant contributes to ATP
generic or brand promotion programs.
(d) Eligible contributions:
(1) In calculating the amount of
contributions that it will make, and the
contributions that the U.S. industry
(including expenditures to be made by
entities in the applicant’s industry or
agricultural sector in support of the
entities’ related promotion activities in
the markets covered by the applicant’s
application) or State agency will make,
the ATP applicant may include the costs
listed under paragraph (d)(2) of this
section if:
(i) Expenditures are necessary and
reasonable for accomplishment of an
approved activity,
(ii) Expenditures are not included as
contributions for any other Federal
award;
(iii) Expenditures are not paid by the
Federal Government under another
Federal award, except where the Federal
statute authorizing a program
specifically provides that Federal funds

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made available for such program can be
applied to matching or cost sharing
requirements of other Federal programs.
(2) Subject to paragraph (d)(1) of this
section, as well as applicable cost
principles (e.g., 2 CFR part 200) to the
extent these principles do not directly
conflict with the provisions of this
subpart, eligible contributions are:
(i) Cash;
(ii) Compensation paid to personnel;
(iii) The cost of acquiring materials,
supplies or services;
(iv) The cost of office space;
(v) A reasonable and justifiable
proportion of general administrative
costs and overhead;
(vi) Payments for indemnity and
fidelity bond expenses;
(vii) The cost of business cards that
target a foreign audience;
(viii) The cost of subscriptions that
are of a technical, economic, or
marketing nature and that are relevant
to the approved activities of the ATP
Participant;
(ix) The cost of activities conducted
overseas;
(x) Credit card fees;
(xi) The cost of any independent
evaluation or audit that is not required
by the CCC to ensure compliance with
program agreement or regulatory
requirements;
(xii) The cost of giveaways, awards,
prizes and gifts;
(xiii) The cost of product samples;
(xiv) Fees for participating in U.S.
government sponsored or endorsed
export promotion activities;
(xv) The cost of air and local travel in
the United States;
(xvi) STRE and the cost associated
with trade shows, seminars, and
entertainment conducted in the United
States where the STRE and costs
associated with trade shows, seminars,
and entertainment have a programmatic
purpose and are authorized in the
program agreement and/or the approval
letter or authorized by prior written
approval of the CCC;
(xvii) Other administrative expenses
(e.g., supervisory travel from the U.S. to
an overseas office); and
(xviii) The cost of any activity
expressly listed as reimbursable in this
subpart.
(3) The following are not eligible
contributions:
(i) Any portion of salary or
compensation of an individual who is
the target of an approved promotional
activity;
(ii) Any expenditure, including that
portion of salary and time spent, related
to promoting membership in the
Participant organization (sometimes
referred to in the industry as
‘‘backsell’’);

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(iii) Any land costs other than
allowable costs for office space;
(iv) The cost of refreshments and
related equipment provided to office
staff;
(v) The cost of insuring articles owned
by private individuals;
(vi) The cost of any arrangement that
has the effect of reducing the selling
price of a U.S. agricultural commodity;
(vii) The cost of product development,
product modifications, or product
research, except as described in
§ 1489.17(c)(22);
(viii) Slotting fees or similar sales
expenditures;
(ix) Membership fees in clubs and
social organizations; and
(x) Any expenditure for an activity
prior to the CCC’s approval of that
activity.
(4) The CCC shall determine, at the
CCC’s discretion, whether any cost not
expressly listed in this section may be
included by the ATP Participant as an
eligible contribution.

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§ 1489.17

Reimbursement rules.

(a) An ATP Participant may seek
reimbursement for an eligible
expenditure if:
(1) The expenditure was necessary
and reasonable for accomplishment of
an approved activity; and
(2) The Participant has not been and
will not be reimbursed for such
expenditure by any other source.
(b) Subject to paragraphs (a) and (d)
of this section, as well as applicable cost
principles (e.g., 2 CFR part 200) to the
extent these principles do not directly
conflict with the provisions of this
subpart, for either brand or generic
promotion activities, the CCC will
reimburse, in whole or in part, the cost
of:
(1) Production and placement of
advertising, in print, electronic media,
billboards, or posters, which may
include advertising the availability of
price discounts, except that advertising
associated with a coupon or price
discount for the ATP-promoted product
is not reimbursable. If advertising is
related to both coupons or price
discounts for products other than the
ATP Participant’s promoted products as
well as for ATP-promoted products,
expenditures for such advertising will
not be reimbursed in whole or in part
(e.g., expenditures may not be prorated
and submitted for reimbursement).
Electronic media includes, but is not
limited to, radio, television, electronic
mail, internet, telephone, text
messaging, and podcasting;
(2) Production and distribution of
banners, recipe cards, table tents, shelf
talkers, and other similar point of sale
materials;

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(3) Direct mail advertising;
(4) In-store and food service
promotions, product demonstrations to
the trade and to consumers, and
distribution of product samples (but not
the purchase of the product samples,
except as authorized in paragraph (c)(9)
of this section).
(5) Temporary displays and rental of
space for temporary displays;
(6) Expenditures, other than travel
expenditures, associated with seminars
and educational training, whether
conducted in the United States or
outside the United States;
(7) Subject to paragraph (b)(18) of this
section, expenditures, other than travel
expenditures, associated with retail,
trade and consumer exhibits and shows,
whether held outside or inside the
United States, including participation
fees, booth construction, transportation
of related materials, rental of space and
equipment, and duplication of related
printed materials. However, with regard
to non-travel expenditures associated
with retail, trade and consumer exhibits
and shows held inside the United
States, such expenditures are
reimbursable only if the exhibit or show
is: A food or agricultural show with no
less than 30 percent of exhibitors selling
food or agricultural products; and an
international show that targets buyers,
distributors and the like from more than
one foreign country and no less than 15
percent of its visitors are from countries
other than the host country. CCC will
compile a list of approved retail, trade
and consumer exhibits and shows held
inside the United States for which ATP
reimbursement is available and such list
will be announced to ATP Participants
via an ATP notice issued on FAS’
website;
(8) Subject to paragraph (b)(18) of this
section, international travel
expenditures, not to exceed the full fare
economy rate, including any fees for
modifying the originally purchased
airline ticket, per diem, passports, visas
and inoculations, as allowed under the
U.S. Federal Travel Regulations (41 CFR
parts 301 through 304) and 2 CFR part
200, for no more than two
representatives of a single brand
participant (or ATP Participant directly
running its own brand program) to
exhibit their company’s (or
cooperative’s) products at a retail, trade,
or consumer exhibit or show held
outside the United States.
Representatives may include employees
and board members of private
companies, employees or members of
cooperatives, or any broker, consultant,
or marketing representative contracted
by the company or cooperative to
represent the company or cooperative in

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44187

sales transactions. All travel should
follow a direct or usually traveled route;
(9) Subscriptions that are of a
technical, economic, or marketing
nature and that are relevant to the
approved activities of the ATP
Participant;
(10) Demonstrators, interpreters,
translators, receptionists, and similar
temporary workers who help with the
implementation of individual
promotional activities, such as trade
shows, in-store promotions, food service
promotions, and trade seminars;
(11) Giveaways, awards, prizes, gifts
and other similar promotional materials,
subject to such reimbursement
limitation as CCC may determine and
announce in writing to ATP Participants
via an ATP notice issued on FAS’
website. Reimbursement is available
only when:
(i) The items are described in detail
with a per unit cost in an approved
strategic plan; and
(ii) Distribution of the promotional
item is not contingent upon the
consumer, or other target audience,
purchasing a good or service to receive
the promotional item;
(12) The design and production of
packaging, labeling or origin
identification, to be used during the
program period in which the
expenditure is made, if such packaging,
labeling or origin identification is
necessary to meet the importing
requirements of a foreign country;
(13) The design, production, and
distribution of coupons for products
other than the ATP Participant’s
promoted products. If such activities
include both coupons or price discounts
for products other than the ATP
Participant’s promoted products as well
as for ATP-promoted products,
expenditures for such activities will not
be reimbursed in whole or in part (e.g.,
expenditures may not be prorated and
submitted for reimbursement);
(14) An audit of an ATP Participant as
required by 2 CFR part 200, subpart F,
if the ATP is the ATP Participant’s
largest source of Federal funding;
(15) The translation of written
materials as necessary to carry out
approved activities;
(16) Expenditures associated with
developing, updating, and servicing
websites on the internet that clearly
target a foreign audience;
(17) International travel expenditures,
not to exceed the full fare economy rate,
including any fees for modifying the
originally purchased airline ticket, per
diem, passports, visas and inoculations,
as allowed under the U.S. Federal
Travel Regulations (41 CFR parts 301
through 304) and 2 CFR part 200,

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incurred for a foreign trade mission
conducted outside the United States
that is an activity under an approved
branded program and that has met the
following conditions:
(i) Trade mission travel for company
(or cooperative) representatives was
identified as a separate approved
activity in the ATP Participant’s UES;
(ii) The trade mission included
representatives, as defined in paragraph
(b)(8) of this section, from a minimum
of five different companies (or
cooperatives), and no more than two
representatives from each participating
company (or cooperative);
(iii) The appropriate FAS overseas
office supported the trade mission by
dedicating meaningful funding or other
resources (such as facilities or staff time)
to the activity; and
(iv) The ATP Participant with the
approved brand program produced an
itinerary or agenda for the trade mission
that demonstrated that company (or
cooperative) representatives would be
engaged for a minimum of 6 hours per
day (except for the first and last days of
the mission) in trade mission activities
that include, at a minimum, each of the
following:
(A) A product showcase where the
FAS overseas office approved an
invitation list of qualified buyers;
(B) Pre-arranged one-on-one business
meetings; and
(C) Evaluation and feedback sessions
with FAS staff and trade mission
sponsors.
(v) Reimbursement is conditional on
the ATP Participant having notified in
writing the Attache´/Counselor in the
destination country in advance of the
travel. All travel should follow a direct
or usually traveled route;
(18) Where USDA has sponsored or
endorsed a U.S. pavilion at a retail,
trade and consumer exhibit or show,
whether held outside or inside the
United States, ATP funds may be used
to reimburse the travel and/or nontravel expenditures of only those ATP
Participants located within the U.S.
pavilion. Such expenditures must also
adhere to the standard terms and
conditions of the U.S. pavilion
organizer. All travel should follow a
direct or usually traveled route. Upon
written request, the CCC may
temporarily waive this subsection, on a
case by case basis, where:
(i) The trade show is segregated into
product pavilions; or
(ii) A company’s distributor or
importer is located outside the U.S.
pavilion. Such waiver will be provided
to the ATP Participant in writing; and
(19) Contracts with U.S.-based
organizations when the only contracted

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service such organizations provide to an
ATP Participant is carrying out a
specific market promotion activity in
the United States directed to a foreign
audience (e.g., a trade mission of foreign
buyers coming to the United States to
visit U.S. exporters). Such contracts may
be reimbursable as a direct promotional
expense. If a U.S.-based organization
provides administrative services to the
ATP Participant’s domestic home office
during a program period, any direct
promotional services such organization
provides to the Participant, whether for
the Participant’s domestic or overseas
offices, during the same program period
are not reimbursable.
(c) Subject to paragraphs (a) and (d) of
this section as well as applicable cost
principles (e.g., 2 CFR part 200), but for
generic promotion activities only, the
CCC will also reimburse, in whole or in
part, the cost of:
(1) Temporary contractor fees for
contractors stationed overseas, except
the CCC will not reimburse any portion
of any such fee that exceeds the daily
gross salary of a GS–15, Step 10 for U.S.
Government employees in effect on the
date the fee is earned, unless a bidding
process reveals that such a contractor is
not available at or below that salary rate;
(2) Subject to paragraph (b)(18) of this
section, international travel
expenditures, not to exceed the full fare
economy rate, including any fees for
modifying the originally purchased
airline ticket, per diem, passports, visas
and inoculations, for activities held
outside the United States or in the
United States, as allowed under the U.S.
Federal Travel Regulations (41 CFR
parts 301 through 304) and 2 CFR part
200, except that if the activity is
participation in a retail, trade, or
consumer exhibit or show held inside
the United States, international travel
expenditures are covered only if the
exhibit or show is: A food or
agricultural show with no less than 30
percent of exhibitors selling food or
agricultural products; and an
international show that targets buyers,
distributors and the like from more than
one foreign country and no less than 15
percent of its visitors are from countries
other than the United States. The CCC
will compile a list of approved retail,
trade and consumer exhibits and shows
held inside the United States for which
ATP reimbursement is available and
such list will be announced to ATP
Participants via an ATP notice issued on
FAS’ website.
(i) The CCC generally will not
reimburse any portion of air travel,
including any fees for modifying the
originally purchased ticket, in excess of
the full fare economy rate or when the

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ATP Participant fails to notify the
Attache´/Counselor in the destination
country in advance of the travel, unless
the CCC determines it was impractical
to provide such notice. If a traveler flies
in business class or a different premium
class, the basis for reimbursement will
be the full fare economy class rate for
the same flight and the ATP Participant
shall provide documentation
establishing such full fare economy
class rate to support its reimbursement
claim. If economy class is not offered for
the same flight or if the traveler flies on
a charter flight, the basis for
reimbursement will be the average of
the full fare economy class rate for
flights offered by three different airlines
between the same points on the same
date and the ATP Participant shall
provide documentation establishing
such average of the full fare economy
class rates to support its reimbursement
claim.
(ii) In limited circumstances, the ATP
Participant may be reimbursed for air
travel up to the business class rate (i.e.,
a premium class rate other than the first
class rate) upon prior written approval
by the CCC. Such circumstances are:
(A) Regularly scheduled flights
between origin and destination points
do not offer economy class (or
equivalent) airfare and the ATP
Participant receives written
documentation from its travel agent to
that effect at the time the tickets are
purchased;
(B) Business class air travel is
necessary to accommodate an eligible
traveler’s disability. Such disability
must be substantiated in writing by a
physician; and
(C) If an eligible traveler is an
employee, contractor, or member of an
ATP participant organization, and the
eligible traveler’s origin and/or
destination are outside of the
continental United States and the
scheduled flight time, beginning with
the scheduled departure time, ending
with the scheduled arrival time, and
including stopovers and changes of
planes, exceeds 14 hours. In such case,
per diem and other allowable expenses
will also be reimbursable for the day of
arrival. However, no expenses will be
reimbursable for a rest period or for any
non-work days (e.g., weekends,
holidays, personal leave, etc.)
immediately following the date of
arrival.
(D) If an eligible traveler is the target
of a market development activity (e.g., a
foreign buyer, foreign importer, member
of the foreign media) the ATP
Participant may be reimbursed for air
travel up to the business class rate when
the eligible traveler’s origin and/or

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destination are outside of the
continental United States and the
scheduled flight time, beginning with
the scheduled departure time, ending
with the scheduled arrival time, and
including stopovers and changes of
planes, exceeds five hours. In such case,
per diem and other allowable expenses
will also be reimbursable for the day of
arrival. However, no expenses will be
reimbursable for a rest period or for any
non-work days (e.g., weekends,
holidays, personal leave, etc.)
immediately following the date of
arrival.
(iii) Alternatively, in lieu of
reimbursing up to the business class rate
in such circumstances noted in
paragraphs (c)(2)(ii)(C) and (d) of this
section, the CCC will reimburse
economy class airfare plus per diem and
other allowable travel expenses related
to a rest period of up to 24 hours, either
en route or upon arrival at the
destination. For a trip with multiple
destinations, each origin/destination
combination will be considered
separately when applying the 14-hour
rule for eligibility of reimbursement of
business class travel or rest period
expenses.
(iv) A stopover for purposes of this
paragraph (c)(2) is the time a traveler
spends at an airport, other than the
originating or destination airport, which
is a normally scheduled part of a flight.
A change of planes is the time a traveler
spends at an airport, other than the
originating or destination airport, to
disembark from one flight and embark
on another.
(v) All travel under this paragraph
(c)(2) should follow a direct or usually
traveled route. Under no circumstances
should a traveler select flights in a
manner that extends the scheduled
flight time to beyond 14 hours in part
to secure eligibility for reimbursement
of business class travel. An eligible
traveler that is the target of a market
development activity is only eligible for
a rest period when that traveler flies in
economy class and meets the 14-hour
test;
(3) Automobile mileage at the local
U.S. Embassy rate or rental cars while
in travel status;
(4) Other allowable expenditures
while in travel status as authorized by
the U.S. Federal Travel Regulations (41
CFR parts 301 through 304) and 2 CFR
part 200;
(5) Accident liability insurance
premiums for facilities used jointly with
third-party participants for ATP
activities or for ATP-funded travel of
third-party participants;

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(6) Market research, including
research to determine the types of
products that are desired in a market;
(7) Legal fees incurred in resolving
trade issues with foreign countries;
(8) The sample purchase price, and
the cost of transporting samples
domestically in the United States to the
port of export and then to the first
foreign port or first point of entry, for
samples of U.S. agricultural
commodities used to provide on-site
technical assistance to the trade
necessary to facilitate successful use of
the relevant U.S. agricultural
commodity by importers. The target of
such activity must be the trade, and not
consumers, but any product resulting
from the technical training can be used
to determine consumer preferences;
(9) STRE incurred outside of the
United States and STRE incurred within
the United States in conjunction with an
approved activity where the STRE has a
programmatic purpose and are
authorized with prior written approval
from the CCC. ATP Participants are
required to use the appropriate
American Embassy representational
funding guidelines for breakfasts,
lunches, dinners and receptions
incurred outside of the United States as
the basis for their calculating eligible
expenses. ATP Participants may exceed
Embassy guidelines by 25 percent
without prior approval. ATP
Participants may only exceed 125
percent of Embassy guidelines when
they have received written authorization
from the FAS Agricultural Counselor at
the Embassy. The amount of
unauthorized STRE expenses that
exceed 125 percent of the guidelines
will not be reimbursed. ATP
Participants must pay the difference
between the total cost of STRE events
and the appropriate amount as
determined by the guidelines and these
regulations. For STRE incurred in the
United States, the ATP Participant
should provide, in its request for
approval, the basis for determining its
proposed expenses;
(10) U.S. office(s) administrative
support expenses, incurred specifically
to administer the ATP, for the National
Association of State Departments of
Agriculture, the SRTGs, and the
Intertribal Agriculture Council. The
level of such funding will be established
in the approval letter.
(11) U.S. office(s) administrative
support expenses, incurred specifically
to administer the ATP, for any ATP
Participants not identified in this
paragraph (c)(11), will be considered,
except for agricultural cooperatives.
Reimbursement for such expenses shall
not exceed six percent of the ATP

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Participant’s total ATP budget. The level
of such funding will be established in
the approval letter.
(13) Non-travel expenditures
associated with conducting
international staff conferences held
either in or outside the United States;
(14) Subject to paragraph (b)(18) of
this section, domestic travel
expenditures, as allowed under the U.S.
Federal Travel Regulations (41 CFR
parts 301 through 304) and 2 CFR part
200, for international retail, trade and
consumer exhibits and shows
conducted in the United States upon
prior written approval by CCC.
Domestic travel expenses to such a
show or exhibit are covered only if the
exhibit or show is: A food or
agricultural show with no less than 30
percent of exhibitors selling food or
agricultural products; and an
international show that targets buyers,
distributors and the like from more than
one foreign country and no less than 15
percent of its visitors are from countries
other than the host country. CCC will
compile a list of approved retail, trade
and consumer exhibits and shows held
inside the United States for which ATP
reimbursement is available and such list
will be announced to ATP Participants
via an ATP notice issued on FAS’
website;
(15) Domestic travel expenditures, as
allowed under the U.S. Federal Travel
Regulations (41 CFR parts 301 through
304) and 2 CFR part 200, for seminars
and educational training conducted in
the United States;
(16) Domestic travel expenditures, as
allowed under the U.S. Federal Travel
Regulations (41 CFR parts 301 through
304) and 2 CFR part 200, for up to two
individuals, whether home office ATP
Participant employees, ATP Participant
board members, or state department of
agriculture employees paid by the ATP
Participant, or a combination thereof,
when such individuals accompany
foreign trade missions or technical
teams while traveling in the United
States where the following conditions
are met:
(i) Such trade missions or technical
team visits are identified in the ATP
Participant’s UES;
(ii) Such trade missions or technical
team visits have been approved by CCC;
and
(iii) The ATP-sponsored travelers
submit a follow-up trip report to CCC
that includes the following:
(A) Purpose for the individuals’
participation;
(B) Any pre-arranged business
meetings;
(C) Itinerary and/or agenda for the
trip; and

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(D) Feedback from sponsors and trade
mission/technical team members on the
success of the trip.
(17) Approved demonstration
projects;
(18) Expenditures related to
copyright, trademark, or patent
registration, including attorney fees;
(19) Rental or lease expenditures for
storage space for program-related
materials;
(20) Business cards that target a
foreign audience;
(21)(i) Expenditures associated with
developing, updating, and servicing
websites on the internet that:
(A) Contain a message related to
exporting or international trade;
(B) Include a discernible ‘‘link’’ to the
FAS website or an FAS overseas office
website; and
(C) Have been specifically approved
by the appropriate FAS division.
Expenditures related to websites or
portions of websites that are accessible
only to an organization’s members are
not reimbursable.
(ii) Reimbursement claims for
websites that include ‘‘members only’’
sections must be prorated to exclude the
costs associated with those areas subject
to restricted access; and
(22) Expenditures not otherwise
prohibited from reimbursement that are
associated with activities held in the
United States or abroad designed to
improve market access by specifically
addressing temporary, permanent, or
impending non-tariff barriers to trade
that prohibit or threaten U.S. exports of
agricultural commodities. Examples of
such expenditures include, but are not
limited to: Initial pre-clearance
programs, educational training, policy
advocacy, public relations efforts,
foreign country audits of U.S. facilities,
export protocol and work plan support,
seminars and workshops, study tours,
field surveys, development of pest lists,
pest and disease research, database
development, and reasonable logistical
and administrative support.
(d) CCC will not reimburse any cost
of:
(1) Forward year financial obligations,
such as severance pay, attributable to
employment of foreign nationals;
(2) Expenses, fines, settlements, or
judgments relating to legal suits,
challenges or disputes, except as
otherwise allowed in 2 CFR part 200
and these regulations;
(3) The design and production of
packaging, labeling or origin
identification, except as specifically
allowed in this subpart;
(4) Product development, product
modification or product research, except

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as specified in paragraph (c)(22) of this
section;
(5) Product samples to be distributed
to consumers;
(6) Slotting fees or similar sales
expenditures;
(7) The purchase of, construction of,
or lease of space for permanent, nonmobile displays, i.e., displays that are
constructed to remain permanently in
the same location beyond one program
period. However, the CCC may, at its
discretion, reimburse the construction
or purchase of permanent displays on a
case-by-case basis, if the Participant
sought and received prior written
approval from the CCC of such
construction or purchase;
(8) Rental, lease or purchase of
warehouse space, except for storage
space for program-related material;
(9) Coupon redemption or price
discounts of the ATP promoted
commodity;
(10) Refundable deposits or advances;
(11) Giveaways, awards, prizes, gifts
and other similar promotional materials
in excess of the limitation that the CCC
will determine. Such determination will
be announced in writing via an ATP
notice issued on FAS’ website;
(12) Alcoholic beverages that are not
an integral part of an approved
promotional activity;
(13) The purchase, lease (except for
use in authorized travel status) or repair
of motor vehicles;
(14) Travel of applicants for
employment interviews;
(15) Unused non-refundable airline
tickets or associated penalty fees, except
where travel was restricted by U.S.
Government action or advisory;
(16) Independent evaluations or
audits, including evaluations or audits
of the activities of a subcontractor, if the
CCC determines that such a review is
needed in order to confirm past or to
ensure future program agreement or
regulatory compliance;
(17) Any arrangement that has the
effect of reducing the selling price of a
U.S. agricultural commodity;
(18) Goods, services and salaries of
personnel provided by U.S. industry or
foreign third party;
(19) Membership fees in clubs and
social organizations;
(20) Indemnity and fidelity bonds,
except as otherwise allowed in 2 CFR
part 200;
(21) Fees for participating in U.S.
Government sponsored activities, other
than trade fairs and exhibits;
(22) Business cards that target a U.S.
domestic audience;
(23) Seasonal greeting cards;
(24) Office parking fees;
(25) Subscriptions to publications that
are not of a technical, economic, or

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marketing nature or that are not relevant
to the approved activities of the ATP
Participant;
(26) U.S. office(s) administrative
expenses, including communication
costs, except as noted in paragraphs
(c)(11) and (12) of this section and
except that usage costs for
communications devices incurred while
on reimbursable international or
domestic travel for approved ATP brand
or generic promotion activities are
reimbursable as eligible travel
expenditures as allowed under the U.S.
Federal Travel Regulations (41 CFR
parts 301 through 304) and 2 CFR part
200;
(27) Any expenditure on an activity
that includes any derogatory reference
or comparison to other U.S. agricultural
commodities;
(28) Payment of U.S. and foreign
employees’ or contractors’ share of
personal taxes;
(29) Any expenditure made for an
activity prior to the CCC’s approval of
that activity;
(30) Contributions to a contingency
reserve or any similar provision made
for events the occurrence of which
cannot be foretold with certainty as to
time, intensity, or with an assurance of
their happening; and
(31) Expenditures associated with an
ATP Participant’s creation or review of
their fraud prevention program,
contracting procedures, or brand
program operational procedures.
(e) For a brand promotion activity, the
CCC will reimburse no more than 50
percent of the total eligible expenditures
made on that activity by a brand
participant.
(f) The CCC will reimburse for
expenditures made after the conclusion
of an ATP Participant’s program period
provided:
(1) The activity was approved by the
CCC prior to the end of the program
period;
(2) The activity was completed within
30 calendar days following the end of
the program period; and
(3) All expenditures were made for
the activity within 6 months following
the end of the program period.
(g) An ATP Participant shall not use
ATP funds for any activity or any
expenses incurred by the ATP
Participant prior to the date of the
program agreement or after the date the
program agreement is suspended or
terminated, except as otherwise
permitted by the CCC.
(h) Except as otherwise provided in
this subpart, ATP-funded travel shall
conform to U.S. Federal Travel
Regulations (41 CFR parts 301 through
304) and 2 CFR part 200 and ATP-

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

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§ 1489.18

Reimbursement procedures.

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

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approved activities as set forth in the
program agreement and approval letter.
If an ATP Participant discovers that
ATP funds have not been properly
spent, it shall notify the CCC and shall
within 30 days of its discovery repay the
CCC the amount owed either by
submitting a check payable to the CCC
or by offsetting its next reimbursement
claim. The ATP Participant shall make
such payment in U.S. dollars, unless
otherwise approved in advance by the
CCC.
(h) The ATP Participant shall report
any actions that may have a bearing on
the propriety of any claims for
reimbursement in writing to CCC.
§ 1489.19

Advances.

(a) Policy. In general, the CCC
operates the ATP on a reimbursable
basis.
(b) Exception. An ATP Participant for
generic promotion activities may
request an advance of ATP funds from
the CCC, provided the ATP Participant
meets the criteria for advance payments
in 2 CFR part 200. The CCC will not
approve any request for an advance
submitted later than 3 months after the
end of an ATP Participant’s program
period. At any given time, total
payments advanced shall not exceed 40
percent of an ATP Participant’s
approved generic activity budget for the
program period. The CCC will not
advance funds to an ATP Participant for
brand promotion activities. When
approving a request for an advance, the
CCC may require the ATP Participant to
carry adequate fidelity bond coverage
when the absence of such coverage is
considered to create an unacceptable
risk to the interests of the ATP. Whether
an ‘‘unacceptable risk’’ exists in a
particular situation will depend on a
number of factors, such as, for example,
the Participant’s history of performance
in ATP; the Participant’s perceived
financial stability and resources; and
any other factors presented in the
particular situation that may reflect on
the Participant’s responsibility or the
riskiness of its activities.
(c) Interest. An ATP Participant shall
deposit and maintain in an insured bank
account in the United States all funds
advanced by the CCC. The account shall
be interest-bearing, unless the
exceptions in 2 CFR part 200 apply.
Interest earned by the ATP Participant
on funds advanced by the CCC is not
program income. The ATP Participant
shall remit any interest earned on the
advanced funds to the appropriate
entity as set forth in the applicable parts
of this title.
(d) Refunds due the CCC. An ATP
Participant shall fully expend all

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advances on approved generic
promotion activities within 90 calendar
days after the date of disbursement by
the CCC. By the end of the 90 calendar
days, the ATP Participant must submit
reimbursement claims to offset the
advance and submit a check made
payable to CCC for any unexpended
balance. The ATP Participant shall
make such payment in U.S. dollars,
unless otherwise approved in advance
by the CCC.
§ 1489.20

Financial management.

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

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

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§ 1489.21

Reports.

(a) End-of-Year Contribution Report.
Not later than 6 months after the end of
its program period, an ATP Participant
shall submit two copies of a report that
identifies, by cost category and in U.S.
dollar equivalent, contributions made
by the Participant, the U.S. industry,
and the States during that program
period. A suggested format of a
contribution report is available from
FAS. Foreign third party contributions
are not included in the end-of-year
contribution report.
(b) Trip reports. Not later than 45 days
after completion of travel (other than
local travel), an ATP Participant shall
electronically submit a trip report. The
report must include the name(s) of the
traveler(s), purpose of travel, itinerary,
names and affiliations of contacts, and
a brief summary of findings,
conclusions, recommendations, and
specific accomplishments.
(c) Research reports. Not later than 6
months after the end of its program
period, an ATP Participant shall submit
a report on any research conducted
pursuant to the approved ATP program.
(d) Evaluation reports. Not later than
6 months after the end of its program
period, an ATP Participant shall submit
a report on any evaluations conducted
in accordance with the approved ATP
program, including the outcome of
action taken with ATP funding and the
increased market access or exports that
can be directly attributed to the ATP
program.
(e) Annual audits. Where the CCC is
designated the cognizant agency for
audit, the CCC may require the ATP
Participant to submit to the CCC an
annual audit in accordance with 2 CFR
part 200. If the CCC requires an
additional audit with respect to a
particular agreement, the ATP
Participant shall arrange for such audit

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and shall submit to the CCC, in the
manner to be specified by the CCC, such
audit of the agreement.
(f) Additional reports. The CCC may
require the submission of additional
reports.
(g) Approved letters. An ATP
Participant’s program agreement and/or
approval letter shall specify to whom
the Participant shall submit the reports
required in this section.
(h) Program reviews. FAS through its
authorized representatives, may review
project accomplishments, management
control systems, and administration of
funding provided through the program
to ensure adherence to requirements.
During such reviews, FAS will review
recipients’ files related to the grantfunded program and technical
assistance may be required.
§ 1489.22

Evaluation.

(a)(1) The Government Performance
and Results Act (GPRA) of 1993 (5
U.S.C. 306; 31 U.S.C. 1105, 1115–1119,
3515, 9703–9704) requires performance
measurement of Federal programs,
including the ATP. Evaluation of the
ATP’s effectiveness will depend on a
clear statement by Participants of goals
to be met within a specified time,
schedule of measurable milestones for
gauging success, plan for achievement,
and assessment of results of activities at
regular intervals. The overall goal of the
ATP and of individual Participants’
programming is to increase sales that
would not have occurred in the absence
of ATP funding. An ATP Participant
that can demonstrate such sales, taking
into account extenuating factors beyond
the Participant’s control, will have met
the overall objective of the GPRA and
the need for evaluation.
(2) Evaluation is an integral element
of program planning and
implementation, providing the basis for
the strategic plan. The evaluation results
guide the development and scope of an
ATP Participant’s program, contributing
to program accountability, and
providing evidence of program
effectiveness that directly ties program
funds to increased sales.
(b) All ATP Participants must report
annual results against their target
market and/or regional constraint/
opportunity performance measures.
These are outcome results usually based
on multiple activities and should
demonstrate progress made in the
market. This report shall be completed
and submitted to the CCC no later than
6 months following the end of the
Participant’s program period.
(c) ATP Participants conducting a
branded program must also complete a
brand promotion evaluation. A brand

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promotion evaluation is a review of the
U.S. and foreign commercial entities’
export sales to determine whether the
activity achieved the goals specified in
the approved ATP program. This
evaluation shall be completed and
submitted to CCC no later than 6
months following the end of the
Participant’s program period.
(d) When appropriate or required by
the CCC, an ATP Participant shall
complete a program evaluation. A
program evaluation is a review of the
ATP Participant’s entire program, or an
appropriate portion of the program as
agreed to by the ATP Participant and
CCC, to determine the effectiveness of
the ATP Participant’s strategy in
meeting specified goals. Actual scope
and timing of the program evaluation
shall be determined by the ATP
Participant and CCC and specified in
the approval letter. An ATP Participant
shall submit, via a cover letter to CCC,
an executive summary that assesses the
program evaluation’s findings and
recommendations and proposed
changes in program strategy or design as
a result of the evaluation. In addition to
the requirements set forth in the
applicable parts of this title (for
example, 2 CFR part 200), a program
evaluation shall contain:
(1) The name of the party conducting
the evaluation;
(2) The scope of the evaluation;
(3) A concise statement of the market
constraint(s)/opportunity(ies) and the
goals specified in the approved strategic
plan;
(4) A description of the evaluation
methodology;
(5) A description of export sales
achieved;
(6) A summary of the findings,
including an analysis of the strengths
and weaknesses of the program(s); and
(7) Recommendations for future
programs.
(e) On an annual basis, or more often
when appropriate or required by the
CCC, an ATP Participant shall complete
and submit program success stories. The
CCC will announce to all ATP
Participants in writing via an ATP
notice issued on the FAS website the
detailed requirements for completing
and submitting program success stories.
§ 1489.23
notices.

Compliance reviews and

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

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USDA staff to facilitate the conduct of
such reviews.
(b) Upon conclusion of the
compliance review, USDA staff will
provide either a written compliance
report or a letter to the ATP Participant.
USDA staff will issue a compliance
report if it appears that CCC may be
entitled to recover funds from that
Participant and/or it appears that the
Participant is not complying with any of
the terms or conditions of the program
agreement, approval letter, or the
applicable laws and regulations. The
compliance report will explain the basis
for any recovery of funds from the
Participant. Within 30 days of the date
of the compliance report, the ATP
Participant shall repay the CCC the
amount owed either by submitting a
check payable to the CCC or by
offsetting its next reimbursement claim.
The ATP Participant shall make such
payment in U.S. dollars, unless
otherwise approved in advance by the
CCC. If, however, an ATP Participant
notifies the CCC within 30 days of the
date of the compliance report that the
Participant intends to file an appeal
pursuant to paragraph (e) of this section,
the amount owed to the CCC by the ATP
Participant is not due until the appeal
procedures are concluded and the CCC
has made a final determination as to the
amount owed. In the absence of any
finding of funds due to the CCC or other
non-compliance, the CCC will issue a
letter to the ATP Participant. If, as a
result of a compliance review, the CCC
determines that further review is needed
in order to ensure compliance with the
requirements of ATP, the CCC may
require the Participant to contract for an
independent audit.
(c) In addition, the CCC may notify an
ATP Participant in writing at any time
if CCC determines that CCC may be
entitled to recover funds from the
Participant. The CCC will explain the
basis for any recovery of funds from the
Participant in the written notice. The
ATP Participant shall, within 30 days of
the date of the notice, repay the CCC the
amount owed either by submitting a
check payable to the CCC or by
offsetting its next reimbursement claim.
The ATP Participant shall make such
payment in U.S. dollars, unless
otherwise approved in advance by the
CCC. If, however, an ATP Participant
notifies the CCC within 30 days of the
date of the written notice that the
Participant intends to file an appeal
pursuant to paragraph (e) of this section,
the amount owed to the CCC by the ATP
Participant is not due until the appeal
procedures are concluded and the CCC
has made a final determination as to the
amount owed.

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(d) The fact that a compliance review
has been conducted by USDA staff does
not signify that an ATP Participant is in
compliance with its program agreement,
approval letter and/or applicable laws
and regulations.
(e) Appeals:
(1) An ATP Participant may, within
60 days of the date of the compliance
report or written notice from the CCC,
submit a written response to the CCC
appealing the report or notice. CCC, at
its discretion, may extend the period for
response.
(2) After review of the Participant’s
response, the CCC shall determine
whether the Participant owes any funds
to the CCC and will inform the
Participant in writing of the basis for the
determination. The CCC will initiate
action to collect such amount by
providing the Participant a written
demand for payment of the debt
pursuant to Debt Settlement Policies
and Procedures, 7 CFR part 1403.
(3) Within 30 days of the date of the
determination, the Participant may
request in writing that the CCC
reconsider the determination and shall
submit in writing the basis for such
reconsideration. The Participant may
also request a hearing.
(4) If the Participant requests a
hearing, the CCC will set a date and
time for the hearing. The hearing will be
an informal proceeding. A transcript
will not ordinarily be prepared unless
the Participant bears the cost of a
transcript; however, the CCC may in its
discretion have a transcript prepared at
the CCC’s expense.
(5) The CCC will base its final
determination upon information
contained in the administrative record.
The Participant must exhaust all
administrative remedies contained in
this section before pursuing judicial
review of a determination by the CCC.
§ 1489.24 Failure to make required
contribution.

An ATP Participant’s required
contribution will be specified in the
approval letter. If the ATP Participant’s
required contribution is specified as a
dollar amount and the ATP Participant
does not make the required
contribution, the ATP Participant shall
pay to the CCC in dollars the difference
between the amount actually
contributed and the amount specified in
the approval letter. If the ATP
Participant’s required contribution is
specified as a percentage of the total
amount reimbursed by the CCC, the
ATP Participant may either return to the
CCC the amount of funds reimbursed by
the CCC to increase its actual
contribution percentage to the required

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level or pay to the CCC in dollars the
difference between the amount actually
contributed and the amount of funds
necessary to increase its actual
contribution percentage to the required
level. An ATP Participant shall remit
such payment within six months after
the end of its program period. The ATP
Participant shall make such payment in
U.S. dollars, unless otherwise approved
in advance by the CCC.
§ 1489.25

Submissions.

For all permissible methods of
delivery, submissions required by this
subpart shall be deemed submitted as of
the date received by the CCC.
§ 1489.26 Disclosure of program
information.

(a) Documents submitted to CCC by
ATP Participants are subject to the
provisions of the Freedom of
Information Act (FOIA), 5 U.S.C. 552, 7
CFR part 1, subpart A—Official Records,
and specifically 7 CFR 1.12, Handling
Information from a Private Business.
(b) Any research conducted by an
ATP Participant pursuant to an ATP
program agreement and/or approval
letter shall be subject to the provisions
relating to intangible property in 2 CFR
part 200.
§ 1489.27

Ethical conduct.

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

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Participants shall ensure that their ATPfunded programs and activities are open
to all otherwise qualified individuals
and entities on an equal basis and
without regard to any non-merit factors.
The ATP Participant shall publicize its
program and make participation
possible for commercial entities
throughout the relevant commodity
sector or, in the case of SRTGs,
throughout the corresponding region.
This includes providing to such
commercial entities, upon request, a
copy of any document in its possession
or control containing market
information developed and produced
under the terms of its ATP agreement.
The Participant may charge a fee not to
exceed the costs for assembling,
duplicating and distributing the
materials. This paragraph does not
apply to any U.S. agricultural
cooperative when implementing its own
brand program.
(d) An ATP Participant shall select
U.S. agricultural industry
representatives to participate in generic
ATP activities such as trade teams, sales
teams, and trade fairs based on criteria
that ensure participation on an equitable
basis by a broad cross section of the U.S.
industry. If requested by the CCC, an
ATP Participant shall submit such
selection criteria to the CCC for
approval.
(e) All ATP Participants should
endeavor to ensure fair and accurate
fact-based advertising. Deceptive or
misleading promotions may result in
cancellation or termination of a
Participant’s ATP agreement and the
recovery of CCC funds related to such
promotions from the Participant.
(f) The ATP Participant must report
any actions or circumstances that may
have a bearing on the propriety of its
ATP program to the appropriate
Attache´/Counselor, and its U.S. office
shall report such actions or
circumstances in writing to the CCC.

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§ 1489.28

Contracting procedures.

(a) Neither the CCC nor any other
agency of the U. S. Government nor any
official or employee of the CCC, FAS,
USDA, or the U.S. Government has any
obligation or responsibility with respect
to ATP Participant contracts with third
parties.
(b) An ATP Participant shall comply
with the procurement standards set
forth below and in the applicable parts
of this title when procuring goods and
services and when engaging in
construction to implement program
agreements (for example, 2 CFR part
200).
(c) Each ATP Participant shall
establish contracting procedures, for

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contracts that are funded, in whole or in
part, with ATP funds, that are open, fair,
and competitive.
(d) Each ATP Participant shall submit
to the CCC, for CCC approval, written
contracting guidelines for contracts that
are funded, in whole or in part, with
ATP funds. The CCC will notify all new
and existing ATP Participants in writing
in each Participant’s approval letter and
through the FAS website as to
applicable submission dates for and
dates for approvals of contracting
guidelines. The CCC’s approval of such
contracting guidelines will remain in
place until the CCC retracts its approval
in writing, or until new guidelines are
approved that supersede them. Once
approved by the CCC, these contracting
guidelines shall govern all of a
Participant’s ATP-funded contracting
involving contracts with a minimum
annual value that CCC will determine
and announce in writing to all ATP
Participants via an ATP notice issued on
the FAS website. The CCC may, from
time to time, set a different minimum
value. In that case, the CCC will
announce the new amount in writing to
all ATP Participants via an ATP notice
issued on the FAS website. The
guidelines shall indicate the method for
evaluating proposals received for all
contract competitions, the method for
monitoring and evaluating performance
under contracts, and the method for
initiating corrective action for
unsatisfactory performance under
contracts. The ATP Participant may
modify and resubmit these guidelines
for re-approval at any time. In addition
to the requirements in 2 CFR part 200,
these guidelines shall include, at a
minimum, the following:
(1) Procedures for developing and
publicizing requests for proposals,
invitations for bids, and similar
documents that solicit third party offers
to provide goods or services.
Solicitations for professional and
technical services shall be based on
clear and accurate descriptions of and
requirements related to the services to
be procured. Such procedures must
include a conflict-of-interest provision
that states that no employee, officer,
board member, or agent thereof of the
ATP Participant will participate in the
review, selection, award or
administration of a contract if a real or
apparent conflict of interest would arise.
Such a conflict would arise when an
employee, official, board member, agent,
or the employee’s, officer’s, board
member’s, agent’s family, partners, or an
organization that employs or is about to
employ any of the parties indicated
herein, has a financial or other interest
in the firm selected for an award.

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Procedures shall provide that officers,
employees, board members, and agents
thereof shall neither solicit nor accept
gratuities, favors, or anything of
monetary value from contractors or
subcontractors. Procedures shall also
provide for disciplinary actions to be
applied for violations of such standards
by officers, employees, board members
or agents thereof;
(2) Procedures for reviewing
proposals, bids, or other offers to
provide goods and services. Separate
procedures shall be developed for
various situations, including, but not
limited to: Solicitations for highly
technical services; solicitations for
services that are not common in a
specific market; solicitations that yield
receipt of three or more bids;
solicitations that yield receipt of fewer
than three bids;
(3) Requirements to conduct all
contracting in an openly competitive
manner. Individuals who develop or
draft specifications, requirements,
statements of work, invitations for bids,
and/or requests for proposals for
procurement of any goods or services,
and such individuals’ families or
partners, or an organization that
employs or is about to employ any of
the aforementioned, shall be excluded
from competition for such procurement.
ATP Participants’ written contracting
guidelines may detail special situations
where the prohibitions in this
subparagraph do not apply, such as in
situations involving highly specialized
technical services or situations where
the services are not commonly offered
in a specific market;
(4) Requirements to perform and
document in the procurement files some
form of price or cost analysis, such as
a comparison of price quotations to
market prices or other price indicia, to
determine the reasonableness of the
offered prices in connection with every
procurement action that is governed by
the contracting guidelines;
(5) Requirements to conduct an
appropriate form of competition every
three years on all multi-year contracts
that are governed by the contracting
guidelines. However, contracts for incountry representation are not required
to be re-competed after the initial
reward. Instead, the performance of incountry representation must be
evaluated and documented by the ATP
Participant annually to ensure that the
terms of the contract are being met in a
satisfactory manner; and
(6) Requirements for written contracts
with each provider of goods, services, or
construction work. Such contracts shall
require such providers to maintain
adequate records to account for funds

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Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Rules and Regulations
provided to them by the ATP
Participant.
(e) An ATP Participant may undertake
ATP promotional activities directly or
through a domestic or foreign third
party. However, the ATP Participant
shall remain responsible and
accountable to the CCC for all ATP
promotional activities and related
expenditures undertaken by such third
party and shall be responsible for
reimbursing CCC for any funds that CCC
determines should be refunded to the
CCC in relation to such third party’s
promotional activities and expenditures.
§ 1489.29

Property standards.

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

amozie on DSK3GDR082PROD with RULES

§ 1489.30

Anti-fraud requirements.

(a) All ATP Participants. (1) All ATP
Participants shall submit to the CCC for
approval a detailed fraud prevention
program. The CCC will notify all new
and existing ATP Participants in writing
in each Participant’s approval letter and
through the FAS website as to
applicable submission dates for and
dates for approvals of fraud prevention
programs. ATP Participants should
review their fraud prevention programs
annually. The fraud prevention program
shall, at a minimum, include an annual
review of physical controls and
weaknesses, a standard process for
investigating and remediation of
suspected fraud cases, and training in
risk management and fraud detection for
all current and future employees. The
ATP Participant shall not conduct or
permit any ATP promotion activities to
occur unless and until the CCC has
communicated in writing approval of
the ATP Participant’s fraud prevention
program.
(2) The ATP Participant, within five
business days of receiving an allegation
or information giving rise to a
reasonable suspicion of
misrepresentation or fraud that could
give rise to a claim by CCC, shall report
such allegation or information in
writing to such USDA personnel as
specified in the Participant’s ATP
program agreement and/or approval
letter. The ATP Participant shall
cooperate fully in any USDA
investigation of such allegation or
occurrence of misrepresentation or
fraud and shall comply with any
directives given by the CCC or USDA to
the ATP Participant for the prompt

VerDate Sep<11>2014

16:35 Aug 29, 2018

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investigation of such allegation or
occurrence.
(b) ATP Participants with brand
programs. (1) The ATP Participant may
charge a fee to brand participants to
cover the cost of the fraud prevention
program.
(2) The ATP Participant shall repay to
the CCC funds paid to a brand
participant through the ATP Participant
on claims that the ATP Participant or
the CCC subsequently determines are
unauthorized or otherwise nonreimbursable expenses within 30 days
of the ATP Participant’s determination
or CCC’s disallowance. The ATP
Participant shall repay CCC by
submitting a check to CCC or by
offsetting the ATP Participant’s next
reimbursement claim. The ATP
Participant shall make such payment in
U.S. dollars, unless otherwise approved
in advance by CCC. An ATP Participant
operating a brand program in strict
accordance with an approved fraud
prevention program, however, will not
be liable to reimburse CCC for ATP
funds paid on such claims if the claims
were based on misrepresentations or
fraud of the brand participant, its
employees or agents, unless the CCC
determines that the ATP Participant was
grossly negligent in the operation of the
brand program regarding such claims.
The CCC shall communicate any such
determination to the ATP Participant in
writing.
§ 1489.31

Program income.

Any revenue or refunds generated
from an activity, e.g., participation fees,
proceeds of sales, refunds of value
added taxes (VAT), the expenditures for
which have been wholly or partially
reimbursed with ATP funds, shall be
used by the ATP Participant in
furtherance of its approved ATP
activities in the program period during
which the ATP funds are available for
obligation by the ATP Participant. The
use of such revenue or refunds shall be
governed by 7 CFR part 1489. Interest
earned on funds advanced by the CCC
is not program income.
§ 1489.32

§ 1489.33 Noncompliance with an
agreement.

If an ATP Participant fails to comply
with any term in its program agreement
or approval letter, the CCC may take one
or more of the enforcement actions in 2
CFR part 200 and, if, appropriate,
initiate a claim against the ATP
Participant, following the procedures set

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forth in this subpart. The CCC may also
initiate a claim against an ATP
Participant if program income or CCCprovided funds are lost due to an action
or omission of the ATP Participant.
§ 1489.34 Suspension, termination, and
closeout of agreements.

A program agreement may be
suspended or terminated in accordance
with the suspension and termination
procedures in 2 CFR part 200. If an
agreement is terminated, the applicable
regulations in 2 CFR part 200 will apply
to the closeout of the agreement.
§ 1489.35 Paperwork reduction
requirements.

The paperwork and record keeping
requirements imposed by this subpart
have been submitted for review by OMB
under the Paperwork Reduction Act of
1980. OMB has not yet assigned a
control number for this information
collection.
Dated: August 27, 2018.
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
Dated: August 27, 2018.
Kenneth Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2018–18870 Filed 8–28–18; 8:45 am]
BILLING CODE 3410–10–P

FEDERAL RESERVE SYSTEM
12 CFR Parts 217 and 225
[Regulations Q and Y; Docket No. R–1619]
RIN 7100–AF 13

Small Bank Holding Company and
Savings and Loan Holding Company
Policy Statement and Related
Regulations; Changes to Reporting
Requirements
Board of Governors of the
Federal Reserve System (Board).
ACTION: Interim final rule with request
for comment; changes to reporting
requirements.
AGENCY:

The Board invites comment
on an interim final rule that raises the
asset size threshold for determining
applicability of the Board’s Small Bank
Holding Company and Savings and
Loan Holding Company Policy
Statement (Regulation Y, appendix C)
(Policy Statement) to $3 billion from $1
billion of total consolidated assets. The
interim final rule also makes related and
conforming revisions to the Board’s
regulatory capital rule (Regulation Q)
and requirements for bank holding
companies (Regulation Y). In

SUMMARY:

Amendment.

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

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