[Code of Federal Regulations] [Title 7, Volume 10] [Revised as of January 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR1485] [Page 730-732] TITLE 7--AGRICULTURE CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE PART 1485_COOPERATIVE AGREEMENTS FOR THE DEVELOPMENT OF FOREIGN MARKETS FOR Subpart B_Market Access Program Sec. 1485.13 Application process and strategic plan. (a) General application requirements. CCC will periodically publish a Notice in the Federal Register that it is accepting applications for participation in MAP and EIP/MAP. Applications shall be submitted in accordance with the terms and requirements specified in the Notice. An application shall contain basic information about the applicant and the proposed program, a program justification and a strategic plan. (1) Basic applicant and program information. (i) All MAP and EIP/MAP applications shall contain: (A) The name and address of the applicant; (B) The name of the Chief Executive Officer; (C) The name and telephone number of the applicant's primary contact person; (D) The name(s) of the person(s) responsible for managing the program; (E) Type of organization--see Sec. 1485.12(a)(1); (F) Tax exempt identification number, if applicable; (G) Activity plan year (mm/dd/yy-mm/dd/yy); (H) Dollar amount of CCC resources requested for generic activities; (I) Dollar amount of CCC resources requested for brand activities; (J) Percentage of CCC resources requested for brand activities that will be made available to small-sized entities; (K) Total dollar amount of CCC resources requested; (L) Percentage of CCC resources requested for general administrative costs and overhead; and (M) Estimated cumulative carryover--i.e., the estimated amount of unexpended funds allocated to the applicant in any prior year; (ii) Applications submitted by nonprofit entities shall also contain: (A) A description of the organization; (B) A description of the organization's membership and membership criteria; (C) A list of affiliated organizations; (D) A description of management and administrative capability; (E) A description of prior export promotion experience; (F) Value, in dollars, that the applicant will contribute; (G) Applicant's contribution stated as a percent of 1(i)(K) above; (H) Value, in dollar, of contributions from other sources; (2) Program justification. (i) All MAP and EIP/MAP applications shall contain: (A) A description of the eligible agricultural commodity(s), its harmonized system code, the commodity aggregate code and the percentage of U.S. origin content by weight, exclusive of added water; (B) A description of the exported agricultural commodity(s), its harmonized system code, the commodity aggregate code and the percentage of U.S. origin content by weight, exclusive of added water; (C) A description of the promoted agricultural commodity(s), its harmonized system code, the commodity aggregate code and the percentage of U.S. origin content by weight, exclusive of added water; [[Page 731]] (D) A description of the anticipated supply and demand situation for the exported agricultural commodity(s); (E) The volume and value of the exported agricultural commodity(s) for the most recent 3-year period; (F) If the proposal is for two or more years, an explanation why the proposal should be funded on a multiyear basis; and (G) A certification and, if requested by the Deputy Administrator, 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. The justification shall indicate why the participant is unlikely to carry out the activities without Federal financial assistance. In determining whether federal funds received supplemented or supplanted private or third party funds or contributions, CCC will consider the participant's overall marketing budget from year to year, variations in promotional strategies within a country and new markets. (ii) Applications submitted by a small-sized entity seeking funds under an EIP/MAP agreement shall contain a certification that it is a small business within the standards established by 13 CFR part 121. For purposes of determining size, a cooperative will be considered a single entity. (iii) Applicants seeking funds for brand promotion shall contain the information required by Sec. 1485.16(g)(1) and (2) in order to justify a rate of reimbursement higher than specified therein. (3) Strategic plan. (i) All MAP and EIP/MAP applications shall contain: (A) A summary of proposed budgets by country and commodity aggregate code; (B) A description of the world market situation for the exported agricultural commodity; (C) A description of competition from other exporters, including U.S. firms, where applicable; (D) A statement of goals and the applicant's plans for monitoring and evaluating performance towards achieving these goals. (E) For each country, if applicable, five years of: (1) historical U.S. export data; (2) U.S. market share; and (3) MAP funds received; (F) For each country, three years of projected U.S. export data and U.S. market share; (G) Country strategy, including constraint(s) impeding U.S. exports, strategy to overcome constraints, previous activities in the country, the projected impact of the proposed program on U.S. exports; (H) A justification for any new overseas office; (I) A description of any demonstration projects, if applicable (see Sec. 1485.13(d)(1) through (4)); (J) Data summarizing historical and projected exports, market share and MAP budgets for the world; and (K) A description of overall program goals for the ensuing 3-5 years; (ii) MAP applications for brand promotion assistance shall also contain: (A) A description of how the brand promotion program will be publicized to U.S. and foreign commercial entities; (B) The criteria that will be used to allocate funds to U.S. and foreign commercial entities; and (C) A justification for conducting a brand promotion program with foreign commercial entities, if applicable. (b) CCC may request any additional information which it deems necessary to evaluate an MAP or EIP/MAP application. In particular, CCC may require additional performance measurement, as required by the Government Performance and Results Act of 1993. (c) Eligible contributions. (1) In calculating the amount of contributions that it will make, and the contributions it will receive from a U.S. industry, a foreign third party or a State agency, the MAP applicant may include the costs (or such prorated costs) listed under paragraph (c)(2) of this section if: (i) Expenditures will be made in furtherance of an approved activity, and (ii) The contributor has not been or will not be reimbursed by any other source for such costs. (2) Subject to paragraph (c)(1) of this section, eligible contributions are: (i) Cash; (ii) Compensation paid to personnel; [[Page 732]] (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; (viii) The cost of seasonal greeting cards; (ix) Fees for office parking; (x) The cost of subscriptions to publications; (xi) The cost of activities conducted overseas; (xii) Credit card fees; (xiii) The cost of any independent evaluation or audit that is not required by CCC to ensure compliance with program requirements; (xiv) The cost of giveaways, awards, prizes and gifts; (xv) The cost of product samples; (xvi) Fees for participating in U.S. government activities; (xvii) The cost of air and local travel in the United States; (xviii) Payment of employee's or contractor's share of personal taxes; and (xix) The cost associated with trade shows, seminars, entertainment and STRE conducted in the United States. (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 in promoting membership in the participant organization or in promoting the MAP among its members (sometimes referred to in the industry as ``backsell''); (iii) Any land costs other than allowable costs for office space; (iv) Depreciation; (v) The cost of refreshments and related equipment provided to office staff; (vi) The cost of insuring articles owned by private individuals; (vii) The cost of any arrangement which has the effect of reducing the selling price of an agricultural commodity; (viii) The cost of product development, product modifications, or product research; (ix) Slotting fees or similar sales expenditures; (x) Membership fees in clubs and social organizations; and (xi) Any expenditure for an activity prior to CCC's approval of that activity or amendment. (4) The Deputy Administrator shall determine, at the Deputy Administrator's discretion, whether any cost not expressly listed in this section may be included by the participant as an eligible contribution. (d) 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 market is a lack of technical knowledge or expertise; (3) The demonstration project is a practical and cost effective method of overcoming the constraint; (4) A third party participates in such project through a written agreement which provides that title to the structure, facility or equipment may transfer to the third party and that the MAP participant may use the structure, facility or equipment for a period specified in the agreement for the purpose of removing the constraint. [60 FR 6363, Feb. 1, 1995, as amended at 61 FR 32644, June 25, 1996; 63 FR 29940, June 2, 1998]