§ 1736a. — Administrative provisions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1736a]
TITLE 7--AGRICULTURE
CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
SUBCHAPTER IV--GENERAL AUTHORITIES AND REQUIREMENTS
Sec. 1736a. Administrative provisions
(a) Subchapter II programs
(1) Acquisitions
The importing country or private entity that enters into an
agreement under subchapter II of this chapter shall acquire the
agricultural commodities to be financed under subchapter II of this
chapter.
(2) Invitation for bid
No purchase of agricultural commodities from private stock or
purchase of ocean transportation shall be financed under subchapter
II of this chapter unless such purchases are made on the basis of an
invitation for bid that is publicly advertised in the United States,
and on the basis of bid offerings that shall conform to such
invitation and be received and publicly opened in the United States.
All awards in the purchase of commodities or ocean transportation
financed under subchapter II of this chapter shall be consistent
with open, competitive, and responsive bid procedures, as determined
appropriate by the Secretary. Resulting contracts may contain such
terms and conditions as the Secretary determines are necessary and
appropriate.
(b) Agents
(1) Authority of Secretary or Commodity Credit Corporation
(A) General rule
Except as provided in subparagraph (B), if it is determined
appropriate, the Secretary or the Commodity Credit Corporation
may serve as the purchasing or shipping agent, or both, for the
importer or importing country in arranging the purchase or
shipping of commodities financed under subchapter II of this
chapter.
(B) Exception
Notwithstanding subparagraph (A), the Secretary or the
Commodity Credit Corporation may award, under a competitive
bidding process, contracts for establishing freight agents who
shall act on behalf of the Secretary or the Corporation to
handle the shipping of commodities financed under this chapter.
(C) Avoidance of conflict of interest of contractors
Freight agents employed by the Secretary or the Commodity
Credit Corporation under subchapter II of this chapter shall not
represent any foreign government during the period of their
contract with the United States Government.
(2) Reasonable fees and commissions
(A) Fees
Notwithstanding any other provision of law, the Secretary or
the Commodity Credit Corporation may enter into an agreement
with the importer or importing country that contains the terms
and conditions that will govern the provision of purchasing or
shipping agent services by the Secretary or the Corporation,
including the establishment of fees for such services. Any such
fees shall be fair and reasonable in relation to the services
performed and shall be available as reimbursement for costs
incurred in providing such services.
(B) Prohibition on commissions
Commissions, fees, or other payments to any selling agent or
to any agent of a purchaser shall be prohibited in the purchase
of agricultural commodities that are financed under subchapter
II of this chapter.
(3) Limitations
No commission, fees, or other payments to an agent, broker,
consultant, or other representative of the importer or importing
country for ocean transportation brokerage services in connection
with the carriage of commodities provided under subchapter II of
this chapter may--
(A) be paid in excess of an amount determined appropriate by
the Secretary; and
(B) be shared by such person with the importer or importing
country or any agent thereof.
(4) Avoidance of conflict of interest
A person may not be an agent, broker, consultant, or other
representative of the United States Government, an importer, or an
importing country in connection with agricultural commodities
provided under this chapter during a fiscal year in which such
person provides or acts as an agent, broker, consultant, or other
representative of a person engaged in providing ocean transportation
or transportation-related services for such commodities. For the
purpose of this paragraph, the term ``transportation-related
services'' means lightening, stevedoring, bagging, or inland
transportation to the destination point.
(c) Subchapters III and III-A program
(1) Acquisition
(A) In general
The Administrator shall transfer, arrange for the
transportation, and take other steps necessary to make available
agricultural commodities to be provided under subchapter III and
subchapter III-A of this chapter.
(B) Certain commodities made available for nonemergency
assistance
In the case of agricultural commodities made available for
nonemergency assistance under subchapter III of this chapter for
least developed countries that meet the poverty and other
eligibility criteria established by the International Bank for
Reconstruction and Development for financing under the
International Development Association, the Administrator may pay
the transportation costs incurred in moving the agricultural
commodities from designated points of entry or ports of entry
abroad to storage and distribution sites and associated storage
and distribution costs.
(2) Freight procurement
Notwithstanding the Federal Property and Administrative Services
Act of 1949 \1\ or other similar provisions of law relating to the
making or performance of Federal Government contracts, ocean
transportation under subchapters III and III-A of this chapter may
be procured on the basis of full and open competitive procedures.
Resulting contracts may contain such terms and conditions as the
Administrator determines are necessary and appropriate.
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\1\ See References in Text note below.
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(3) Avoidance of conflict of interest
Freight agents employed by the Agency for International
Development under subchapters III and III-A of this chapter shall
not represent any foreign government during the period of their
contract with the United States Government.
(4) Prepositioning
Funds made available for fiscal years 2001 through 2007 to carry
out subchapters III and III-A of this chapter may be used by the
Administrator to procure, transport, and store agricultural
commodities for prepositioning within the United States and in
foreign countries, except that for each such fiscal year not more
than $2,000,000 of such funds may be used to store agricultural
commodities for prepositioning in foreign countries.
(d) Timing of shipments
In determining the timing of the shipment of agricultural
commodities to be provided under this chapter, the Secretary or the
Administrator, as appropriate, shall consider--
(1) the time of harvest of any competing commodities in the
recipient country; and
(2) such other concerns determined to be appropriate.
(e) Deadline for agreements under subchapters II and III-A of this
chapter
An agreement under subchapters II and III-A of this chapter shall,
to the extent practicable, be entered into not later than--
(1) November 30 of the first fiscal year in which agricultural
commodities are to be shipped under the agreement; or
(2) 60 days after the date of enactment of the annual Rural
Development, Agriculture, and Related Agencies Appropriations Act
for the first fiscal year in which agricultural commodities are to
be shipped under the agreement,
whichever is later.
(f) Annual reports
(1) In general
The President shall prepare an annual report concerning the
programs and activities implemented under this chapter for the
preceding fiscal year.
(2) Contents
Each report shall include--
(A) the countries and organizations receiving food and other
assistance provided to each country and organization under this
chapter;
(B) a general description of the projects or activities
implemented under this chapter, including local currency funded
activities;
(C) a statement of the amount of agricultural commodities
made available to each country pursuant to section 1431(b) of
this title and the Food for Progress Act of 1985 [7 U.S.C.
1736o]; and
(D) an assessment of the progress towards achieving food
security in each country receiving food assistance from the
United States Government, with special emphasis on the
nutritional status of the poorest populations in each country.
(3) Submission
The President shall submit such report not later than January 15
of each year to the Committee on Agriculture and the Committee on
Foreign Affairs of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
(July 10, 1954, ch. 469, title IV, Sec. 407, as added Pub. L. 89-808,
Sec. 2(E), Nov. 11, 1966, 80 Stat. 1537; amended Pub. L. 90-436, Sec. 8,
July 29, 1968, 82 Stat. 451; Pub. L. 94-161, title II, Sec. 210, Dec.
20, 1975, 89 Stat. 854; Pub. L. 101-508, title I, Sec. 1204(b)(3), Nov.
5, 1990, 104 Stat. 1388-11; Pub. L. 101-624, title XV, Sec. 1512, Nov.
28, 1990, 104 Stat. 3650; Pub. L. 102-237, title III, Secs. 319, 324,
325, 328, 329, 332, Dec. 13, 1991, 105 Stat. 1857, 1858; Pub. L. 104-66,
title I, Sec. 1011(e), Dec. 21, 1995, 109 Stat. 709; Pub. L. 104-127,
title II, Sec. 216, Apr. 4, 1996, 110 Stat. 957; Pub. L. 106-472, title
III, Sec. 310(b), Nov. 9, 2000, 114 Stat. 2076; Pub. L. 107-171, title
III, Secs. 3010, 3011, May 13, 2002, 116 Stat. 284.)
References in Text
The Federal Property and Administrative Services Act of 1949,
referred to in subsec. (c)(2), is act June 30, 1949, ch. 288, 63 Stat.
377, as amended. Except for title III of the Act, which is classified
generally to subchapter IV (Sec. 251 et seq.) of chapter 4 of Title 41,
Public Contracts, the Act was repealed and reenacted by Pub. L. 107-217,
Secs. 1, 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304, as chapters 1 to 11
of Title 40, Public Buildings, Property, and Works.
The Food for Progress Act of 1985, referred to in subsec. (f)(2)(C),
is Pub. L. 99-198, title XI, Sec. 1110, Dec. 23, 1985, 99 Stat. 1472, as
amended, which is classified to section 1736o of this title.
Amendments
2002--Subsec. (c)(1). Pub. L. 107-171, Sec. 3011, designated
existing provisions as subpar. (A), inserted heading, and added subpar.
(B).
Subsec. (c)(4). Pub. L. 107-171, Sec. 3010, substituted ``through
2007'' for ``and 2002''.
2000--Subsec. (c)(4). Pub. L. 106-472 added par. (4).
1996--Pub. L. 104-127, Sec. 216(2)-(5), which directed amendment of
subsecs. (c), (d), (g), and (h), respectively, of this section, was
executed to subsecs. (b), (c), (f), and (g), respectively, of this
section, to reflect the probable intent of Congress and the intervening
amendment by Pub. L. 104-66 which struck out subsec. (b) and
redesignated subsecs. (c) to (h) as (b) to (g), respectively. See 1995
Amendment note below.
Subsec. (a)(1). Pub. L. 104-127, Sec. 216(1)(A), inserted ``or
private entity that enters into an agreement under subchapter II of this
chapter'' after ``importing country''.
Subsec. (a)(2). Pub. L. 104-127, Sec. 216(1)(B), inserted at end
``Resulting contracts may contain such terms and conditions as the
Secretary determines are necessary and appropriate.''
Subsec. (b)(1)(A), (2)(A). Pub. L. 104-127, Sec. 216(2), inserted
``importer or'' before ``importing country''.
Subsec. (c)(2). Pub. L. 104-127, Sec. 216(3)(A), added par. (2) and
struck out heading and text of former par. (2). Text read as follows:
``No purchase of agricultural commodities from private stocks or
purchase of ocean transportation services by the United States
Government shall be financed under subchapters III and III-A of this
chapter unless such purchases are made on the basis of full and open
competition utilizing such procedures as are determined necessary and
appropriate by the Administrator.''
Subsec. (c)(4). Pub. L. 104-127, Sec. 216(3)(B), struck out heading
and text of par. (4). Text read as follows: ``Notwithstanding any
provision of the Federal Property and Administrative Services Act of
1949 (40 U.S.C. 471 et seq.) or other similar provisions relating to the
making or performance of Federal Government contracts, the Administrator
may procure ocean transportation services under this chapter under such
full and open competitive procedures as the Administrator determines are
necessary and appropriate.''
Subsec. (f)(2)(D). Pub. L. 104-127, Sec. 216(4), added subpar. (D).
Subsec. (g). Pub. L. 104-127, Sec. 216(5), struck out heading and
text of subsec. (g). Text read as follows: ``On World Food Day, October
16 of each year, the President shall submit to the appropriate
committees of Congress a report, prepared with the assistance of the
Secretary and the Administrator, assessing progress towards food
security in each country receiving United States Government food
assistance. Special emphasis should be given in such report to the
nutritional status of the poorest populations in such countries.''
1995--Subsecs. (b) to (h). Pub. L. 104-66 redesignated subsecs. (c)
to (h) as (b) to (g), respectively, and struck out former subsec. (b)
which required reporting of agricultural commodity or ocean
transportation supplier fees.
1991--Subsec. (b)(1). Pub. L. 102-237, Sec. 329, struck out ``or
agricultural commodity donated'' after ``ocean transportation
financed''.
Subsec. (c)(1)(A). Pub. L. 102-237, Sec. 324, substituted
``subchapter II of this chapter'' for ``this section''.
Subsec. (c)(1)(C). Pub. L. 102-237, Sec. 325, struck out ``other''
before ``foreign government''.
Subsec. (c)(2)(B), (3). Pub. L. 102-237, Sec. 319, inserted
``subchapter II of'' before ``this chapter''.
Subsec. (c)(4). Pub. L. 102-237, Sec. 328(a), inserted ``provides
or'' after ``in which such person'' and substituted ``of a person'' for
``if the person is''.
Subsec. (d)(3). Pub. L. 102-237, Sec. 328(b), struck out ``other''
before ``foreign government''.
Subsec. (d)(4). Pub. L. 102-237, Sec. 332, substituted ``the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 471 et
seq.)'' for ``the Federal Property Act of 1949, as amended,''.
1990--Pub. L. 101-624 amended section generally, substituting
present provisions for provisions which established an Advisory
Committee to survey the general policies relating to the administration
of this chapter, including implementation of self-help provisions, uses
to be made of foreign currencies, amount of currencies to be reserved in
sales agreements for loans to private industry, rates of exchange,
interest rates, and terms under which dollar credit sales are made.
Subsec. (c)(4). Pub. L. 101-508 substituted ``providing ocean
transportation or'' for ``providing ocean''.
1975--Pub. L. 94-161 inserted ``, or their designees (who shall be
members of such committees or, in the case of members from the executive
branch, who shall have been confirmed by the Senate)'' in first
sentence.
1968--Pub. L. 90-436 struck out provisions that the vice chairman
and one ranking minority member of the specified House committees and
the next ranking majority member and one ranking minority member of the
specified Senate committees be members of the Advisory Committee, and
inserted provisions requiring the Advisory Committee to meet not less
than four times during each calendar year and setting forth the order of
precedence at such meetings.
Change of Name
Committee on Foreign Affairs of House of Representatives treated as
referring to Committee on International Relations of House of
Representatives by section 1(a) of Pub. L. 104-14, set out as a note
preceding section 21 of Title 2, The Congress.
Effective Date of 1990 Amendments
Amendment by Pub. L. 101-624 effective Jan. 1, 1991, see section
1513 of Pub. L. 101-624, set out as a note under section 1691 of this
title.
Amendment by Pub. L. 101-508 effective Nov. 29, 1990, see section
1301 of Pub. L. 101-508, set out as a note under section 511r of this
title.
Effective Date
Section effective Jan. 1, 1967, see section 5 of Pub. L. 89-808, set
out as an Effective Date of 1966 Amendment note under section 1691 of
this title.
Delegation of Functions
Functions of President under subsec. (h) [now (g)] of this section
delegated to Administrator of the Agency for International Development
by section 4(c) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set
out as a note under section 1691 of this title.
Preparation of Annual Report
For provisions requiring Food Assistance Policy Council to prepare
annual report pursuant to subsec. (g)(1) [now (f)(1)] of this section,
see Ex. Ord. No. 12752, Sec. 3(c), Feb. 25, 1991, 56 F.R. 8256, set out
as a note under section 1691 of this title.
Section Referred to in Other Sections
This section is referred to in section 1431 of this title.
