[Federal Register: January 17, 2003 (Volume 68, Number 12)]
[Notices]
[Page 2487-2489]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja03-29]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Announcement of the Quality Samples Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: Commodity Credit Corporation is inviting proposals for the
Quality Samples Program.
DATES: All proposals must be received by 5 p.m. eastern standard time,
March 10, 2003.
FOR FURTHER INFORMATION CONTACT: Marketing Operations Staff, Foreign
Agricultural Service, U.S. Department of Agriculture, Room 4932-S, STOP
1042, 1400 Independence Ave., SW., Washington, DC 20250-1042, (202)
720-4327.
SUPPLEMENTARY INFORMATION:
Introduction
The Commodity Credit Corporation (CCC) announces that proposals may
be submitted for participation in the Quality Samples Program (QSP).
The QSP is designed to encourage the development and expansion of
export markets for U.S. agricultural commodities by assisting U.S.
entities in providing commodity samples to potential foreign importers
to promote a better understanding and appreciation for the high quality
of U.S. agricultural commodities. All proposals will be reviewed
against the evaluation criteria
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contained herein and funds will be awarded on a competitive basis.
Financial assistance will be made available on a reimbursement basis.
The QSP is administered by the Foreign Agricultural Service (FAS).
Under the QSP, CCC enters into agreements with those entities whose
proposals have been accepted. The QSP agreement between CCC and the
participant will include the maximum amount of CCC funds that may be
used to reimburse certain activity costs that have been approved by CCC
and paid by the QSP participant. QSP participants will be responsible
for procuring (or arranging for the procurement of) commodity samples,
exporting the samples, and providing the technical assistance necessary
to facilitate successful use of the samples by importers. Participants
that are funded under this announcement may seek reimbursement for the
sample purchase price and the costs of transporting the samples
domestically to the port of export and then to the foreign port of
entry. Transportation costs from the foreign port, or point, of entry
to the final destination will not be eligible for reimbursement. CCC
will not reimburse the costs incidental to purchasing and transporting
samples, for example, inspection or documentation fees. Although
providing technical assistance is required for all projects, CCC will
not reimburse the costs of providing technical assistance. A QSP
participant will be reimbursed after CCC reviews its reimbursement
claim and determines that the claim is complete.
QSP agreements are subject to review and verification by the FAS
Compliance Review Staff. Upon request, a QSP participant shall provide
to CCC the original documents which support the participant's
reimbursement claims. CCC may deny a claim for reimbursement if the
claim is not supported by adequate documentation. Cash advances will
not be made available to any QSP participant.
This notice supercedes any prior notices concerning the QSP.
Authority
The QSP is authorized under section 5(f) of the CCC Charter Act, 15
U.S.C. 714c(f).
General Scope of QSP Projects
QSP projects are the activities undertaken by a QSP participant to
provide an appropriate sample of a U.S. agricultural commodity to a
foreign importer, or a group of foreign importers, in a given market.
The purpose of the project is to provide information to an appropriate
target audience regarding the attributes, characteristics, and proper
use of the U.S. commodity. A QSP project addresses a single market/
commodity combination. As a general matter, QSP projects should conform
to the following guidelines:
[sbull] Projects should benefit the represented U.S. industry and
not a specific company or brand;
[sbull] Projects should develop a new market for a U.S. product,
promote a new U.S. product, or promote a new use for a U.S. product,
rather than promote the substitution of one established U.S. product
for another;
[sbull] Sample commodities provided under a QSP project must be in
sufficient supply and available on a commercial basis;
[sbull] The QSP project must either subject the commodity sample to
further processing or substantial transformation in the importing
country, or the sample must be used in technical seminars designed to
demonstrate to an appropriate target audience the proper preparation or
use of the sample in the creation of an end product;
[sbull] Samples provided in a QSP project shall not be directly
used as part of a retail promotion or supplied directly to consumers.
However, the end product, that is, the product resulting from further
processing, substantial transformation, or a technical seminar, may be
provided to end use consumers to demonstrate to importers consumer
preference for that end product; and
[sbull] Samples shall be in quantities less than a typical
commercial sale and limited to the amount sufficient to achieve the
project goal (e.g., not more than a full commercial mill run in the
destination country).
QSP projects shall target foreign importers and target audiences who:
[sbull] Have not previously purchased the U.S. commodity which will
be transported under the QSP;
[sbull] Are unfamiliar with the variety, quality attribute, or end-
use characteristic of the U.S. commodity which will be transported
under the QSP;
[sbull] Have been unsuccessful in previous attempts to import,
process, and market the U.S. commodity which will be transported under
the QSP (e.g., because of improper specification, blending, or
formulation; or sanitary or phytosanitary (SPS) issues);
[sbull] Are interested in testing or demonstrating the benefits of
the U.S. commodity which will be transported under the QSP; or
[sbull] Need technical assistance in processing or using the U.S.
commodity that will be transported under the QSP.
Under this announcement, the number of projects per participant
will not be limited. However, individual projects will be limited to
$75,000 of QSP reimbursement. Projects comprised of technical
preparation seminars, that is, projects that do not include further
processing or substantial transformation, will be limited to $15,000 of
QSP reimbursement as these projects require smaller samples.
Proposal Process
In order to be considered for participation in the QSP, interested
parties should submit proposals to FAS as described in this notice. QSP
proposals must contain complete information about the proposed
projects. This notice is complemented by concurrent notices announcing
four other foreign market development programs administered by FAS,
including the Market Access Program (MAP), the Foreign Market
Development Cooperator (Cooperator) Program, the Emerging Markets
Program, the Technical Assistance for Specialty Crops Program, and the
Section 108 Foreign Currency Program.
The MAP and Cooperator Program notices detail a Unified Export
Strategy (UES) application process which provides a means for
interested applicants to submit a consolidated and strategically
coordinated single proposal that incorporates funding requests for any
or all of these programs. Some applicants to the QSP, particularly
those who also are applying for funding under the MAP or Cooperator
Program, are encouraged to use the UES application process. The
Internet-based UES application, including step-by-step instructions for
its use, is located at the following URL address: http://www.fas.usda.gov/cooperators.html.
Other applicants should follow the
application procedures contained in this notice.
Entities interested in participating in the QSP are not required to
submit proposals in any specific format; however, FAS recommends that
proposals contain, at a minimum, the following:
(a) Organizational information, including:
[sbull] Organization's name, address, Chief Executive Officer (or
designee), and Federal Tax Identification Number (TIN);
[sbull] Type of organization;
[sbull] Name, telephone number, fax number, and e-mail address of
the primary contact person;
[sbull] A description of the organization and its membership;
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[sbull] A description of the organization's prior export promotion
experience; and
[sbull] A description of the organization's experience in
implementing an appropriate trade/technical assistance component;
(b) Market information, including:
[sbull] An assessment of the market;
[sbull] A long-term strategy in the market; and
[sbull] U.S. export value/volume and market share (historic and
goals) for 1999-2004;
(c) Project information, including:
[sbull] A brief project title;
[sbull] Amount of funding requested;
[sbull] A brief description of the specific market development
trade constraint or opportunity to be addressed by the project,
performance measures for the years 2003-2005 which will be used to
measure the effectiveness of the project, a benchmark performance
measure for 2002, the viability of long term sales to this market, the
goals of the project, and the expected benefits to the represented
industry;
[sbull] A description of the activities planned to address the
constraint or opportunity, including how the sample will be used in the
end-use performance trial, the attributes of the sample to be
demonstrated and their end-use benefit, and details of the trade/
technical servicing component (including who will provide and who will
fund this component);
[sbull] A sample description (i.e., commodity, quantity, quality,
type, and grade), including a justification for selecting a sample with
such characteristics (this justification should explain in detail why
the project could not be effective with a smaller sample);
[sbull] An itemized list of all estimated costs associated with the
project for which reimbursement will be sought; and
[sbull] The importer's role in the project regarding handling and
processing the commodity sample;
(d) Information indicating all funding sources and amounts to be
contributed by each entity that will supplement implementation of the
proposed project. This may include the organization that submitted the
proposal, private industry entities, host governments, foreign third
parties, CCC, FAS, or other Federal agencies. Contributed resources may
include cash or goods and services.
Review Process
Proposals will be evaluated by the applicable FAS commodity
division. The divisions will review each proposal against the factors
described below. The purpose of this review is to identify meritorious
proposals, recommend an appropriate funding level for each proposal
based upon these factors, and submit the proposals and funding
recommendations to the Deputy Administrator, Commodity and Marketing
Programs.
FAS will use the following criteria in evaluating proposals:
[sbull] The ability of the organization to provide an experienced
staff with the requisite technical and trade experience to execute the
proposal;
[sbull] The extent to which the proposal is targeted to a market in
which the United States is generally competitive;
[sbull] The potential for expanding commercial sales in the
proposed market;
[sbull] The nature of the specific market constraint or opportunity
involved and how well it is addressed by the proposal;
[sbull] The extent to which the importer's contribution in terms of
handling and processing enhances the potential outcome of the project;
[sbull] The amount of reimbursement requested and the
organization's willingness to contribute resources, including cash and
goods and services of the U.S. industry and foreign third parties; and
[sbull] How well the proposed technical assistance component
assures that performance trials will effectively demonstrate the
intended end-use benefit.
Highest priority for funding under this announcement will be given to
meritorious proposals which target countries which meet either of the
following criteria:
[sbull] Per capita income less than $9,265 (the ceiling on upper
middle income economies as determined by the World Bank [World
Development Indicators 2001]); and population greater than 1 million.
Proposals may address suitable regional groupings, for example, the
islands of the Caribbean Basin; or
[sbull] U.S. market share of imports of the commodity identified in
the proposal of 10 percent or less.
Agreements
Following approval of a proposal, CCC will enter into an agreement
with the organization that submitted the proposal. Agreements will
incorporate the details of each project as approved by FAS. Each
agreement will identify terms and conditions pursuant to which CCC will
reimburse certain costs of each project. Agreements will also outline
the responsibilities of the participant, including, but not limited to,
procurement (or arranging for procurement) of the commodity sample at a
fair market price, arranging for transportation of the commodity sample
within the time limit specified in the agreement (organizations should
endeavor to ship commodities within 6 months of effective date of
agreement), compliance with cargo preference requirements (shipment on
United States flag vessels, as required), compliance with the Fly
America Act requirements (shipment on United States air carriers, as
required), timely and effective implementation of technical assistance,
and submission of a written evaluation report within 90 days of
expiration of the agreement. Evaluation reports should address all
performance measures which were presented in the proposal.
Closing Date for Proposals
All Internet-based applications must be properly submitted by 5
p.m. Eastern Standard Time, March 10, 2003. All paper copy proposals
must be submitted in duplicate and received by 5 p.m. Eastern Standard
Time, March 10, 2003, at one of the following addresses:
Hand Delivery (including FedEx, UPS, etc.): U.S. Department of
Agriculture, Foreign Agricultural Service, Marketing Operations Staff,
Room 4932-S, 14th and Independence Avenue, SW., Washington, DC 20250-
1042.
U.S. Postal Delivery: U.S. Department of Agriculture, Foreign
Agricultural Service, Marketing Operations Staff, STOP 1042, 1400
Independence Ave., SW., Washington, DC 20250-1042.
Signed at Washington, DC, on January 8, 2003.
Kenneth J. Roberts,
Acting Administrator, Foreign Agricultural Service, and Vice President,
Commodity Credit Corporation.
[FR Doc. 03-1118 Filed 1-16-03; 8:45 am]
BILLING CODE 3410-10-P