(As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3643.) AMENDMENTS 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions requiring submission of annual report by recipient countries to President on activities and progress of Food for Development Program. EFFECTIVE DATE OF 1990 AMENDMENT 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. USE OF FOREIGN CURRENCIES Foreign currencies accruing to United States under this subchapter may be used for purposes set forth in this section, see Ex. Ord. No. 12752, § 2(b)(1), Feb. 25, 1991, 56 F.R. 8255, set out as a note under section 1691 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1727d of this title. 88 1727f, 1727g. Omitted CODIFICATION Sections were omitted in the general revision of this chapter by Pub. L. 101-624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3633. Section 1727f, act July 10, 1954, ch. 469, title III, 307, as added Aug. 3, 1977, Pub. L. 95-88, title II, § 211(a)(2), 91 Stat. 551; amended Aug. 14, 1979, Pub. L. 96-53, title II, § 207(b), 93 Stat. 369, related to annual presidential review of agreements for use of proceeds from sales of commodities. Section 1727g, acts July 10, 1954, ch. 469, title III, § 310, formerly § 303, 68 Stat. 459; Sept. 6, 1958, Pub. L. 85-931, § 6, 72 Stat. 1791; July 29, 1968, Pub. L. 90-436, 7, 82 Stat. 451; renumbered § 310, Aug. 3, 1977, Pub. L. 95-88, title II, § 211(a)(1), 91 Stat. 548; Dec. 23, 1985, Pub. L. 99-198, title XI, § 1167(c), 99 Stat. 1503, related to authority of Secretary to barter agricultural commodities for strategic and other materials. BARTER OF AGRICULTURAL COMMODITIES FOR STRATEGIC AND CRITICAL MATERIALS Section 1167(a) of Pub. L. 99-198, which provided for findings by Congress concerning the barter or exchange of agricultural commodities for strategic and critical materials for the national defense stockpile, was repealed by Pub. L. 101-624, title XV, § 1572(3), Nov. 28, 1990, 104 Stat. 3702. SUBCHAPTER IV-GENERAL § 1731. Commodity determinations After consulting with other agencies of the Federal Government affected and within policies established by the President for implementing this chapter, and after taking into consideration productive capacity, domestic requirements, farm and consumer price levels, commercial exports, and adequate carryover, the Secretary shall determine, prior to the beginning of each fiscal year, the agricultural commodities and quantities thereof available for disposition under this chapter. (b) Modification The Secretary may, during the fiscal year, modify a determination made under subsection (a) of this section if the Secretary provides to the Congress prior notice of that modification (including a statement of the reasons for the modification). (c) Commodities not available No commodity shall be available for disposition under this chapter if such disposition would reduce the domestic supply of such commodity below that needed to meet domestic requirements, adequate carryover, and anticipated exports for dollars as determined by the Secretary, unless the Secretary determines that some part of the supply should be used to carry out urgent humanitarian purposes under this chapter. (d) Policies for implementing chapter The Secretary shall, to the extent practicable, seek to maintain a stable level of available agricultural commodities under this chapter of the kind and type needed to provide food assistance to developing countries and should attempt to make such commodities available to the degree necessary to fulfill multi-year agreements entered into under this chapter. (e) Ineligible commodities (1) Alcoholic beverages Alcoholic beverages shall not be made available for disposition under this chapter. (2) Tobacco Tobacco or the products thereof shall not be made available under section 1727b of this title or subchapter III of this chapter. (f) Market development activities Subsection (e)(1) of this section shall not be construed to prohibit representatives of the United States wine, beer, distilled spirits, or other alcoholic beverage industry from participating in agricultural market development activities carried out by the Secretary with foreign currencies made available under subchapter II of this chapter. (As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3645.) AMENDMENTS 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions authorizing Secretary to determine types and quantities of commodities available for distribution, limiting distribution where domestic supply is threatened, and requiring available storage facilities in recipient country prior to making commodities available to such country as well as finding that distribution will not result in interference with production or marketing in that country. EFFECTIVE DATE OF 1990 AMENDMENT 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. EXPORT SALES OF DAIRY PRODUCTS Pub. L. 99-198, title XI, § 1163, Dec. 23, 1985, 99 Stat. 1499, as amended by Pub. L. 100-435, title I, § 107, Sept. 19, 1988, 102 Stat. 1651; Pub. L. 101-624, title I, § 111, Nov. 28, 1990, 104 Stat. 3380, provided that: "(a) In each of the fiscal years 1986 through 1995, the Secretary of Agriculture shall sell for export, at TITLE 7-AGRICULTURE such prices as the Secretary determines appropriate, not less than 150,000 metric tons of dairy products owned by the Commodity Credit Corporation, of which not less than 100,000 metric tons shall be butter and not less than 20,000 metric tons shall be cheese, if that disposition of such commodities will not interfere with the usual marketings of the United States nor disrupt world prices of agricultural commodities and normal patterns of commercial trade. "(b) Such sales shall be made through the Commodity Credit Corporation under existing authority available to the Secretary or the Commodity Credit Corporation. "(c) Through September 30, 1995, the Secretary shall report semiannually to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the volume of sales made under this section." The term "Administrator" means the Administrator of the Agency for International Development, unless otherwise specified in this chapter. (2) Agricultural commodity The term "agricultural commodity", unless otherwise provided for in this chapter, includes any agricultural commodity or the products thereof produced in the United States, including wood and processed wood products, fish, and livestock as well as valueadded, fortified, or high-value agricultural products. Effective beginning on October 1, 1991, for purposes of subchapter III of this chapter, a product of an agricultural commodity shall not be considered to be produced in the United States if it contains any ingredient that is not produced in the United States, if that ingredient is produced and is commercially available in the United States at fair and reasonable prices. (3) Cooperative The term "cooperative" means a private sector organization whose members own and control the organization and share in its services and its profits and that provides business services and outreach in cooperative development for its membership. (4) Developing country The term "developing country" means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels. (5) Food security Page 724 The term "food security" means access by all people at all times to sufficient food and nutrition for a healthy and productive life. (6) Indigenous nongovernmental organization The term "indigenous nongovernmental organization" means an organization that operates under the laws of the recipient country, or that has its principal place of activity in such country, and that works at the local level to solve development problems in the foreign country in which it is located, except that the term does not include an organization that is primarily an agent or instrumentality of the foreign government. (7) Private voluntary organization The term "private voluntary organization" means a not-for-profit, nongovernmental organization (in the case of a United States organization, an organization that is exempt from Federal income taxes under section 501(c)(3) of title 26) that receives funds from private sources, voluntary contributions of money, staff time, or in-kind support from the public, and that is engaged in or is planning to engage in voluntary, charitable, or development assistance activities (other than religious activities). (8) Secretary The term “Secretary” means the Secretary of Agriculture, unless otherwise specified in this chapter. (As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3645.) AMENDMENTS 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions defining agricultural commodity. EFFECTIVE DATE OF 1990 AMENDMENT 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. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 17360 of this title. § 1733. General provisions (a) Prohibition No agricultural commodity shall be made available under this chapter unless it is determined that (1) adequate storage facilities will be available in the recipient country at the time of the arrival of the commodity to prevent the spoilage or waste of the commodity; and (2) the distribution of the commodity in the recipient country will not result in a substantial disincentive to or interference with domestic production or marketing in that country. (b) Consultations The Secretary or the Administrator, as appropriate, shall consult with representatives from the International Monetary Fund, the Interna tional Bank for Reconstruction and Development, the World Bank, and other donor organizations to ensure that the importation of United States agricultural commodities and the use of local currencies for development purposes will not have a disruptive impact on the farmers or the local economy of the recipient country. (c) Transshipment The Secretary or the Administrator, as appropriate, shall, under such terms and conditions as are determined to be appropriate, require commitments from countries designed to prevent or restrict the resale or transshipment to other countries, for use for other than domestic purposes, of agricultural commodities donated or purchased under this chapter. (d) Private trade channels and small business Private trade channels shall be used under this chapter to the maximum extent practicable in the United States and in the recipient countries with respect to (1) sales from privately owned stocks; (2) sales from stocks owned by the Commodity Credit Corporation; and (3) donations. Small businesses shall be provided adequate and fair opportunity to participate in such sales. (e) World prices In carrying out this chapter, reasonable precautions shall be taken to assure that sales or donations of agricultural commodities will not unduly disrupt world prices for agricultural commodities or normal patterns of commercial trade with foreign countries. (f) Publicity Commitments shall be obtained from countries receiving commodities under this chapter that such countries will widely publicize, to the extent practicable, through the use of the public media and through other means, that such commodities are being provided through the friendship of the American people as food for peace. (g) Participation of private sector The Secretary or the Administrator, as appropriate, shall encourage the private sector of the United States and private importers in developing countries to participate in the programs established under this chapter. (h) Safeguard usual marketings In carrying out this chapter, reasonable precautions shall be taken to safeguard the usual marketings of the United States and to avoid displacing any sales of the United States agricultural commodities that the Secretary or Administrator determines would otherwise be made. (i) Military distribution of food aid (1) In general The Secretary or the Administrator, as appropriate, shall attempt to ensure that agricultural commodities made available under this chapter will be provided without regard to the political affiliation, geographic loca tion, ethnic, tribal, or religious identity of the recipient or without regard to other extraneous factors. (2) Prohibition on handling of commodities by military (A) In general Except as provided in subparagraph (B), the Secretary or the Administrator, es appropriate, shall not enter into an agreement under this chapter to provide agricultural commodities if such agreement requires or permits the distribution, handling, or allocation of such commodities by the military forces of any government or insurgent group. (B) Exception Notwithstanding subparagraph (A), the Secretary or the Administrator, as appropriate, may authorize the handling or distribution of commodities by the military forces of a country in exceptional circumstances in which (i) nonmilitary channels are not available for such handling or distribution; (ii) such action is consistent with the requirements of paragraph (1); and (iii) the Secretary or the Administrator, as appropriate, determines that such action is necessary to meet the emergency health, safety, or nutritional requirements of the recipient population. (C) Report Not later than 30 days after an authorization is provided under subparagraph (B), the Secretary or the Administrator, as appropriate, shall prepare and submit to the appropriate committees of Congress a report concerning such authorization and include in any such report the reason for the authorization, including an explanation of why no alternatives to such handling or distribution were available. (3) Encouragement of safe passage When entering into agreements under this chapter that involve areas within recipient countries that are experiencing protracted warfare or civil strife, the Secretary or the Administrator, as appropriate, shall, to the extent practicable, encourage all parties to the conflict to permit safe passage of the commodities and other relief supplies and to establish safe zones for medical and humanitarian treatment and evacuation of injured persons. (j) Violations of human rights (1) Ineligible countries The Secretary or the Administrator, as appropriate, shall not enter into any agreement under this chapter to provide agricultural commodities, or to finance the sale of agricultural commodities, to the government of any country determined by the President to engage in a consistent pattern of gross violations of internationally recognized human rights, including (A) the torture or cruel, inhuman, or degrading treatment or punishment of individuals; (B) the prolonged detention of individuals without charges; (C) the responsibility for causing the disappearance of individuals through the abduction and clandestine detention of such individuals; or (D) other flagrant denials of the right to life, liberty, and the security of persons. (2) Waiver Paragraph (1) shall not prohibit the provision of assistance to such a country if the assistance is targeted to the most needy people in such country and is made available in such country through channels other than the government. 1991-Subsec. (i)(2)(C). Pub. L. 102-237 substituted "committees" for "Committees". 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions authorizing appropriations necessary for this chapter, classifying such expenditures under international affairs and finance rather than agriculture, valuing commodity, for purpose of reimbursing Commodity Credit Corporation, at price not greater than export market price at time commodity was made available, and authorizing President to transfer up to 15 percent of funding for any fiscal year from any subchapter of this chapter to any other subchapter. EFFECTIVE DATE OF 1990 AMENDMENT 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. (b) Terms of agreement An agreement entered into under this chapter shall (1) include an estimate of the annual value or volume of agricultural commodities proposed to be made available to the country or eligible organization under the agreement; (2) with respect to agreements entered into under subchapters II and III-A of this chapter, include a statement of the manner in which the agricultural commodities provided under the agreement or the revenues generated by the sale of such commodities (if such commodities are sold), will be integrated into the overall development plans of the country to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable agriculture; (3) with respect to agreements entered into under subchapters II and III-A of this chapter, include a statement of the manner in which competitive private sector participation within the recipient country in the storage, marketing, transportation, and distribution of agricultural commodities made available under this chapter will be encouraged; (4) include a statement that such agreement shall be subject to the availability, during each fiscal year to which the agree ment applies, of the necessary appropriations and agricultural commodities; and (5) contain such other terms and conditions as the Secretary or the Administrator, as appropriate, determines to be necessary. (c) Multi-year agreements (1) In general Agreements to provide assistance on a multi-year basis under this chapter shall be made available to recipient countries or to eligible organizations. (2) Exception The Secretary or the Administrator, as appropriate, may determine not to make assistance available on a multi-year basis with respect to a recipient country or an eligible organization if it is determined that assistance should be provided to such country or through such organization only on an annual basis because (A) the past performance of the country or organization in meeting program objectives does not warrant a multi-year agreement; (B) it is anticipated that the need of the country or organization for food aid does not extend beyond 1 year; or (C) other circumstances, as determined by the Secretary or the Administrator, as appropriate, indicate there is only a need for a 1 year agreement. (d) Review of agreements The Secretary or the Administrator, as appropriate, may make a determination to terminate, or refuse to enter into, a multi-year agreement with respect to a recipient country if the Secretary or the Administrator determines that such country is not fulfilling the objectives or requirements of this chapter. In making such a determination, the Secretary or the Administrator, as appropriate, may consider the extent to which the country is- (1) making significant economic development reforms; (2) promoting free and open markets for food and agricultural producers; and (3) fostering increased food security. (As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3648.) AMENDMENTS 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions outlining aims of assistance programs, namely humanitarian and national interest objectives, and requiring assessments of recipient countries to determine types and quantities of commodities needed, conditions under which distribution should take place, most suitable timing for delivery, etc. EFFECTIVE Date of 1990 AMENDMENT 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. § 1735. Consultation The Secretary and the Administrator shall cooperate and consult in the implementation of this chapter. (As amended Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3650.) AMENDMENTS 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions requiring funds and authority under this chapter be used to assist friendly countries determined to increase their self-reliance in food production and managing population growth. EFFECTIVE DATE OF 1990 AMENDMENT 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. § 1736. Use of Commodity Credit Corporation (a) In general The Commodity Credit Corporation shall acquire and make available such agricultural commodities (that have been determined to be available under section 1731(a) of this title) as necessary to carry out agreements under this chapter. (b) Included expenses With respect to commodities made available under this chapter, the Commodity Credit Corporation may pay (1) the cost of acquiring such commodities; (2) the costs associated with packaging, enrichment, preservation, and fortification of such commodities; (3) the processing, transportation, handling, and other incidental costs up to the time of the delivery of such commodities free on board vessels in United States ports; (4) the ocean freight charges from United States ports to designated ports of entry abroad; (5) the costs associated with transporting such commodities from United States ports to designated points of entry abroad in the case (A) of landlocked countries; (B) of ports that cannot be used effectively because of natural or other disturbances; (C) of the unavailability of carriers to a specific country; or (D) of substantial savings in costs or time that may be effected by the utilization of points of entry other than ports; (6) in the case of commodities for urgent and extraordinary relief requirements (including pre-positioned commodities) the transportation costs incurred in moving the commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs; and (7) the charges for general average contributions arising out of the ocean transport of commodities transferred pursuant thereto. (c) Commodity Credit Corporation The funds, facilities, and authorities of the Commodity Credit Corporation may be used to carry out this chapter. (d) Availability of funds Funds shall be available under this chapter only to the extent provided in advance in appropriation Acts. (As amended Nov. 5, 1990, Pub. L. 101-508, title I, § 1204(b)(2), 104 Stat. 1388-11; Nov. 28, 1990, Pub. L. 101-624, title XV, § 1512, 104 Stat. 3650; Dec. 13, 1991, Pub. L. 102-237, title III, § 323, 105 Stat. 1857.) AMENDMENTS 1991-Subsec. (b)(5)(D). Pub. L. 102-237 substituted "time" for "items". 1990-Pub. L. 101-624 amended section generally, substituting present provisions for provisions authorizing appropriations and authorizing the President to administer a program of farmer-to-farmer assistance, enter into agreements or make grants to train farmers in recipient countries, seek exchange of farm youth and farm leaders with developing countries, conduct research in tropical and subtropical agriculture, coordinate program with other foreign assistance programs, establish conditions for eligibility in farmer-tofarmer program, and pay costs of program through use of foreign currencies accruing from sale of commodities. Subsec. (d). Pub. L. 101-508 added subsec. (d). 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. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1431 of this title; title 22 section 5423. § 1736-1. Special Assistant for Agricultural Trade and Food Assistance [See main edition for text of (a) and (b)] 1 |