§ 5651. — Export enhancement program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC5651]
TITLE 7--AGRICULTURE
CHAPTER 87--EXPORT PROMOTION
SUBCHAPTER III--EXPORT ENHANCEMENT PROGRAM
Sec. 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 each of fiscal years 2002 through 2007.
(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, Sec. 301, as added Pub. L. 101-624, title
XV, Sec. 1531, Nov. 28, 1990, 104 Stat. 3678; amended Pub. L. 102-237,
title III, Sec. 311, Dec. 13, 1991, 105 Stat. 1856; Pub. L. 102-511,
title VII, Sec. 709(b), Oct. 24, 1992, 106 Stat. 3352; Pub. L. 103-465,
title IV, Sec. 411(a)(3), (4), Dec. 8, 1994, 108 Stat. 4963; Pub. L.
104-127, title II, Sec. 245, Apr. 4, 1996, 110 Stat. 968; Pub. L. 107-
171, title III, Sec. 3104(a), May 13, 2002, 116 Stat. 290.)
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
2002--Subsec. (e)(1)(G). Pub. L. 107-171 substituted ``each of
fiscal years 2002 through 2007'' for ``fiscal year 2002''.
1996--Subsec. (e)(1). Pub. L. 104-127, Sec. 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, Sec. 245(b), added subsec. (h).
1994--Subsec. (a). Pub. L. 103-465, Sec. 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, Sec. 411(a)(4)(A), substituted
``2001'' for ``1995''.
Subsec. (g). Pub. L. 103-465, Sec. 411(a)(4)(B), added subsec. (g).
1992--Subsec. (a). Pub. L. 102-511, Sec. 709(b)(1), inserted ``,
including processed agricultural products and high-value agricultural
products,'' after ``agricultural commodities''.
Subsec. (e). Pub. L. 102-511, Sec. 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.
