SUBCHAPTER III—EXPORT ENHANCEMENT PROGRAM

§5651. Export enhancement program

(a) In general

The Commodity Credit Corporation shall carry out an export enhancement program in accordance with this section to encourage the commercial sale of United States agricultural commodities in world markets at competitive prices. The program shall be carried out in a market sensitive manner. Activities under the program shall not be limited to responses to unfair trade practices.

(b) Export bonus

(1) In general

In carrying out the program established under this section, the Commodity Credit Corporation may—

(A) make agricultural commodities, acquired by the Commodity Credit Corporation, available to exporters, users, processors, or foreign purchasers at no cost either directly or through the issuance of commodity certificates; and

(B) make cash payments to exporters, users, and processors.

(2) Calculation of bonus levels

The Commodity Credit Corporation shall—

(A) maintain an established procedure for evaluating program bonus requests, with guidelines for determining prevailing market prices for targeted commodities and destinations to be used in the calculation of acceptable bonus levels;

(B) use a clear set of established procedures for measuring transportation and incidental costs to be used in the calculation of acceptable bonus levels and for determining the amount of such costs actually incurred; and

(C) maintain consistent and effective controls and procedures for auditing and reviewing payment of bonuses and for securing refunds where appropriate.

(3) Disclosure of information

The Secretary may, notwithstanding the provisions of section 552 of title 5, provide for withholding from the public the procedures and guidelines established under paragraphs (2)(A) and (B) if the Secretary determines that release of such information would adversely affect the operation of the program. Nothing in this paragraph shall be construed to authorize the withholding of information, including such procedures and guidelines, from the Congress.

(4) Competitive disadvantage

The Secretary shall take such action as is necessary to ensure that equal treatment is provided to domestic and foreign purchasers and users of agricultural commodities in any case in which the importation of a manufactured product made, in whole or in part, from a commodity made available for export under this section would place domestic users of the commodity at a competitive disadvantage.

(5) Different commodities

The Commodity Credit Corporation may provide to an exporter, user, or processor, or foreign purchaser, under the program established under this section, agricultural commodities of a kind different than the agricultural commodity involved in the transaction for which assistance under this section is being provided.

(6) Other export programs

The Commodity Credit Corporation may provide bonuses under this section in conjunction with other export promotion programs conducted by the Secretary or the Commodity Credit Corporation.

(7) Avoidance of preferential application

When using the authorities of this section to promote the exporting of wheat, the Secretary shall make reasonable efforts to avoid giving a preference to one class of wheat disproportionately more than another class.

(8) Displacement

The Secretary shall avoid the displacement of usual marketings of United States agricultural commodities in carrying out this section.

(c) Priority in case of livestock

In the case of proposals for bonuses for dairy cattle or other appropriate livestock, the Commodity Credit Corporation shall give priority to proposals that include, in connection with the purchase of the livestock, appropriate herd management training, veterinary services, nutritional training, and other technical assistance necessary for the adaptation of the livestock to foreign environments.

(d) Inapplicability of price restrictions

Any price restrictions that otherwise may be applicable to dispositions of agricultural commodities owned by the Commodity Credit Corporation shall not apply to agricultural commodities provided under this section.

(e) Funding levels

(1) In general

The Commodity Credit Corporation shall make available to carry out the program established under this section not more than—

(A) $350,000,000 for fiscal year 1996;

(B) $250,000,000 for fiscal year 1997;

(C) $500,000,000 for fiscal year 1998;

(D) $550,000,000 for fiscal year 1999;

(E) $579,000,000 for fiscal year 2000;

(F) $478,000,000 for fiscal year 2001; and

(G) $478,000,000 for fiscal year 2002.

(2) Set-asides

(A) For each fiscal year, the Corporation shall, to the extent practicable and subject to subparagraph (B), ensure that no less than 25 percent of the total of—

(i) the funds expended, and

(ii) the value of any commodities made available,

under this section in connection with sales of agricultural commodities to the independent states of the former Soviet Union is used to promote the export of processed and high-value United States agricultural products and that the balance of the funds expended and commodities made available under this section in connection with such sales is used to promote the export of bulk or raw United States agricultural commodities.

(B) The 25 percent requirement of subparagraph (A) shall apply for a fiscal year only to the extent that the percentage of the total of—

(i) the funds expended, and

(ii) the value of commodities made available,

for that fiscal year under this section to promote the export to all countries of processed and high-value United States agricultural products is less than 15 percent.

(f) Effect on third countries

It is not the purpose of the program established under this section to affect adversely the exports of fairly traded agricultural commodities.

(g) Consistency with international obligations

Notwithstanding any other provision of this section, the Commodity Credit Corporation shall administer and carry out the program authorized by this section in a manner consistent, as determined by the President, with the obligations undertaken by the United States set forth in the Uruguay Round Agreements.

(h) Priority funding for intermediate products

(1) In general

Effective beginning in fiscal year 1996, and consistent, as determined by the Secretary, with the obligations and reduction commitments undertaken by the United States under the Uruguay Round Agreements, the Secretary may make available not more than $100,000,000 for each fiscal year under this section for the sale of intermediate agricultural products in sufficient quantities to attain the volume of export sales consistent with the volume of intermediate agricultural products exported by the United States during the Uruguay Round base period years of 1986 through 1990.

(2) Additional assistance

Notwithstanding paragraph (1), if the export sale of any intermediate agricultural product attains the volume of export sales consistent with the volume of the intermediate agricultural product exported by the United States during the Uruguay Round base period years of 1986 through 1990, the Secretary may make available additional amounts under this section for the encouragement of export sales of the intermediate agricultural product.

(Pub. L. 95–501, title III, §301, as added Pub. L. 101–624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3678; amended Pub. L. 102–237, title III, §311, Dec. 13, 1991, 105 Stat. 1856; Pub. L. 102–511, title VII, §709(b), Oct. 24, 1992, 106 Stat. 3352; Pub. L. 103–465, title IV, §411(a)(3), (4), Dec. 8, 1994, 108 Stat. 4963; Pub. L. 104–127, title II, §245, Apr. 4, 1996, 110 Stat. 968.)

Prior Provisions

A prior section 301 of Pub. L. 95–501 amended sections 1761, 1762, 1764, and 1765 of this title prior to the complete revision of Pub. L. 95–501 by Pub. L. 101–624.

Amendments

1996—Subsec. (e)(1). Pub. L. 104–127, §245(a), added par. (1) and struck out heading and text of former par. (1). Text read as follows: "The Commodity Credit Corporation shall make available for each of the fiscal years 1991 through 2001 not less than $500,000,000 of the funds or commodities of the Commodity Credit Corporation to carry out the program established under this section."

Subsec. (h). Pub. L. 104–127, §245(b), added subsec. (h).

1994—Subsec. (a). Pub. L. 103–465, §411(a)(3), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: "The Commodity Credit Corporation shall carry out in accordance with this section a program to discourage unfair trade practices by making United States agricultural commodities, including processed agricultural products and high-value agricultural products, competitive."

Subsec. (e)(1). Pub. L. 103–465, §411(a)(4)(A), substituted "2001" for "1995".

Subsec. (g). Pub. L. 103–465, §411(a)(4)(B), added subsec. (g).

1992—Subsec. (a). Pub. L. 102–511, §709(b)(1), inserted ", including processed agricultural products and high-value agricultural products," after "agricultural commodities".

Subsec. (e). Pub. L. 102–511, §709(b)(2), designated existing provisions as par. (1), inserted heading, and added par. (2).

1991—Subsecs. (f), (g). Pub. L. 102–237 redesignated subsec. (g) as (f).

Effective Date of 1996 Amendment

Section 245(a) of Pub. L. 104–127 provided that the amendment made by that section is effective Oct. 1, 1995.

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–465 effective on the date of entry into force of the WTO Agreement with respect to the United States (Jan. 1, 1995), except as otherwise provided, see section 451 of Pub. L. 103–465, set out as an Effective Date note under section 3601 of Title 19, Customs Duties.

Section Referred to in Other Sections

This section is referred to in sections 5653, 5661, 5662 of this title.

§5652. Relief from unfair trade practices

(a) Use of programs

(1) In general

The Secretary may, for each article described in paragraph (2), make available some or all of the commercial export promotion programs of the Department of Agriculture and the Commodity Credit Corporation to help mitigate or offset the effects of the unfair trade practice serving as the basis for the proceeding described in paragraph (2).

(2) Commodities specified

Paragraph (1) shall apply in the case of articles for which the United States has instituted, under any international trade agreement, any dispute settlement proceeding based on an unfair trade practice if such proceeding has been prevented from progressing to a decision by the refusal of the party maintaining the unfair trade practice to permit the proceeding to progress.

(b) Consultations required

For any article described in subsection (a)(2) of this section, the Secretary shall—

(1) promptly consult with representatives of the industry producing such articles and other allied groups or individuals regarding specific actions or the development of an integrated marketing strategy utilizing some or all of the commercial export programs of the Department of Agriculture and the Commodity Credit Corporation to help mitigate or offset the effects of the unfair trade practice identified in subsection (a)(2) of this section; and

(2) ascertain and take into account the industry preference for the practical use of available commercial export promotion programs in implementing subsection (a)(1) of this section.

(Pub. L. 95–501, title III, §302, as added Pub. L. 101–624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3680.)

§5653. Equitable treatment of high-value and value-added United States agricultural commodities

In the case of any program, such as that established under section 5651 of this title, operated by the Secretary or the Commodity Credit Corporation during the fiscal years 1991 through 1995, for the purpose of discouraging unfair trade practices, the Secretary shall establish as an objective to expend annually at least 25 percent of the total funds available (or 25 percent of the value of any commodities employed) for program activities involving the export sales of high-value agricultural commodities and value-added products of United States agricultural commodities.

(Pub. L. 95–501, title III, §303, as added Pub. L. 101–624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3680.)