2013 US Code
Title 7 - Agriculture
Chapter 87 - EXPORT PROMOTION (§§ 5601 - 5723)
Subchapter II - AGRICULTURAL EXPORT PROGRAMS (§§ 5621 - 5641)
Part A - Programs (§§ 5621 - 5625)
Section 5622 - Export credit guarantee program
Publication Title | United States Code, 2012 Edition, Supplement 1, Title 7 - AGRICULTURE |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 7 - AGRICULTURE CHAPTER 87 - EXPORT PROMOTION SUBCHAPTER II - AGRICULTURAL EXPORT PROGRAMS Part A - Programs Sec. 5622 - Export credit guarantee program |
Contains | section 5622 |
Date | 2013 |
Laws in Effect as of Date | January 16, 2014 |
Positive Law | No |
Disposition | standard |
Source Credit | Pub. L. 95-501, title II, §202, as added Pub. L. 101-624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3673; amended Pub. L. 102-237, title III, §334, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102-511, title VII, §§708, 709(a), Oct. 24, 1992, 106 Stat. 3351; Pub. L. 104-127, title II, §§243(a), 277(c)(3), Apr. 4, 1996, 110 Stat. 965, 979; Pub. L. 107-171, title III, §3102(a)-(c), May 13, 2002, 116 Stat. 289; Pub. L. 110-246, title III, §3101(a), (c), June 18, 2008, 122 Stat. 1831, 1832. |
Statutes at Large References | 104 Stat. 3673, 3691 105 Stat. 1859 106 Stat. 3351, 3350 107 Stat. 2112 110 Stat. 965, 967, 977 116 Stat. 289, 300 122 Stat. 1831, 1837 |
Public Law References | Public Law 95-501, Public Law 101-624, Public Law 102-237, Public Law 102-511, Public Law 103-182, Public Law 104-127, Public Law 107-171, Public Law 110-246 |
Congressional Bill Reference | Unknown Value6 110th Congress |
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The Commodity Credit Corporation may guarantee the repayment of credit made available to finance commercial export sales of agricultural commodities, including processed agricultural products and high-value agricultural products, from privately owned stocks on credit terms that do not exceed a 3-year period.
(b) Purpose of programThe Commodity Credit Corporation may use export credit guarantees authorized under this section—
(1) to increase exports of agricultural commodities;
(2) to compete against foreign agricultural exports;
(3) to assist countries in meeting their food and fiber needs, particularly—
(A) developing countries; and
(B) countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and
(4) for such other purposes as the Secretary determines appropriate.
(c) Restrictions on use of credit guaranteesExport credit guarantees authorized by this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales with respect to which credit is guaranteed under this section.
(d) RestrictionsThe Commodity Credit Corporation shall not make credit guarantees available in connection with sales of agricultural commodities to any country that the Secretary determines cannot adequately service the debt associated with such sale.
(e) TermsExport credit guarantees issued pursuant to this section shall contain such terms and conditions as the Commodity Credit Corporation determines to be necessary.
(f) United States agricultural commoditiesThe Commodity Credit Corporation shall finance or guarantee under this section only United States agricultural commodities.
(g) Ineligibility of financial institutions (1) In generalA financial institution shall be ineligible to receive an assignment of a credit guarantee issued by the Commodity Credit Corporation under this section if it is determined by the Corporation, at the time of the assignment, that such financial institution—
(A) is the financial institution issuing the letter of credit or a subsidiary of such institution; or
(B) is owned or controlled by an entity that owns or controls that financial institution issuing the letter of credit.
(2) Third country banksThe Commodity Credit Corporation may guarantee under subsection (a) of this section the repayment of credit made available to finance an export sale irrespective of whether the obligor is located in the country to which the export sale is destined.
(h) Conditions for fish and processed fish productsIn making available any guarantees of credit under this section in connection with sales of fish and processed fish products, the Secretary shall make such guarantees available under terms and conditions that are comparable to the terms and conditions that apply to guarantees provided with respect to sales of other agricultural commodities under this section.
(i) Processed and high-value products (1) In generalIn issuing export credit guarantees under this section, the Commodity Credit Corporation shall, subject to paragraph (2), ensure that not less than 25 percent for each of fiscal years 1996 and 1997, 30 percent for each of fiscal years 1998 and 1999, and 35 percent for each of fiscal years 2000 through 2007, of the total amount of credit guarantees issued for a fiscal year is issued to promote the export of processed or high-value agricultural products and that the balance is issued to promote the export of bulk or raw agricultural commodities.
(2) LimitationThe percentage requirement of paragraph (1) shall apply for a fiscal year to the extent that a reduction in the total amount of credit guarantees issued for the fiscal year is not required to meet the percentage requirement.
(j) Consultation on agricultural export credit programsThe Secretary and the United States Trade Representative shall consult on a regular basis with the Committee on Agriculture, and the Committee on International Relations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the status of multilateral negotiations regarding agricultural export credit programs.
(k) Administration (1) Definition of long termIn this subsection, the term "long term" means a period of 10 or more years.
(2) GuaranteesIn administering the export credit guarantees authorized under this section, the Secretary shall—
(A) maximize the export sales of agricultural commodities;
(B) maximize the export credit guarantees that are made available and used during the course of a fiscal year;
(C) develop an approach to risk evaluation that facilitates accurate country risk designations and timely adjustments to the designations (on an ongoing basis) in response to material changes in country risk conditions, with ongoing opportunity for input and evaluation from the private sector;
(D) adjust risk-based guarantees as necessary to ensure program effectiveness and United States competitiveness; and
(E) work with industry to ensure, to the maximum extent practicable, that risk-based fees associated with the guarantees cover, but do not exceed, the operating costs and losses over the long term.
(Pub. L. 95–501, title II, §202, as added Pub. L. 101–624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3673; amended Pub. L. 102–237, title III, §334, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102–511, title VII, §§708, 709(a), Oct. 24, 1992, 106 Stat. 3351; Pub. L. 104–127, title II, §§243(a), 277(c)(3), Apr. 4, 1996, 110 Stat. 965, 979; Pub. L. 107–171, title III, §3102(a)–(c), May 13, 2002, 116 Stat. 289; Pub. L. 110–246, title III, §3101(a), (c), June 18, 2008, 122 Stat. 1831, 1832.)
PRIOR PROVISIONSA prior section 202 of Pub. L. 95–501 enacted section 1707c of this title prior to the complete revision of Pub. L. 95–501 by Pub. L. 101–624.
AMENDMENTS2008—Subsec. (a). Pub. L. 110–246, §3101(a)(1), struck out par. (1) designation and heading before "The Commodity" and struck out pars. (2) and (3) which related to supplier credits and extended supplier credits, respectively.
Subsec. (b). Pub. L. 110–246, §3101(a)(2), (3), redesignated subsec. (d) as (b) and struck out former subsec. (b). Prior to amendment, text read as follows: "Subject to the provisions of subsection (c) of this section, the Commodity Credit Corporation may guarantee the repayment of credit made available by financial institutions in the United States to finance commercial export sales of agricultural commodities, including processed agricultural products and high-value agricultural products, from privately owned stocks on credit terms that are for not less than a 3-year period nor for more than a 10-year period in a manner that will directly benefit United States agricultural producers."
Subsec. (b)(4). Pub. L. 110–246, §3101(c)(1), struck out ", consistent with the provisions of subsection (c) of this section" after "appropriate".
Subsec. (c). Pub. L. 110–246, §3101(a)(2), (3), redesignated subsec. (e) as (c) and struck out former subsec. (c) which related to requirements for guarantees under former subsec. (b).
Subsec. (d). Pub. L. 110–246, §3101(c)(2), struck out par. (1) designation and heading before "The Commodity" and struck out par. (2) which related to criteria for the determination required under this subsec. with respect to credit guarantees under former subsec. (b).
Pub. L. 110–246, §3101(a)(3), redesignated subsec. (f) as (d). Former subsec. (d) redesignated (b).
Subsecs. (e) to (g). Pub. L. 110–246, §3101(a)(3), redesignated subsecs. (g) to (i) as (e) to (g), respectively. Former subsecs. (e) and (f) redesignated (c) and (d), respectively.
Subsec. (g)(2). Pub. L. 110–246, §3101(c)(3), substituted "subsection (a)" for "subsections (a) and (b)".
Subsecs. (h) to (l). Pub. L. 110–246, §3101(a)(3), (4), redesignated subsecs. (j) to (l) as (h) to (j), respectively, and added subsec. (k). Former subsecs. (h) and (i) redesignated (f) and (g), respectively.
2002—Subsec. (a)(3). Pub. L. 107–171, §3102(a), added par. (3).
Subsec. (k)(1). Pub. L. 107–171, §3102(b), substituted "through 2007" for ", 2001, and 2002".
Subsec. (l). Pub. L. 107–171, §3102(c), added subsec. (l).
1996—Subsec. (a). Pub. L. 104–127, §243(a)(1), designated existing provisions as par. (1), inserted heading, and added par. (2).
Subsec. (d)(3)(B). Pub. L. 104–127, §277(c)(3), substituted "emerging markets" for "emerging democracies".
Subsec. (f). Pub. L. 104–127, §243(a)(2), designated existing provisions as par. (1), inserted heading, and added par. (2).
Subsec. (h). Pub. L. 104–127, §243(a)(3), added subsec. (h) and struck out heading and text of former subsec. (h). Text read as follows: "The Commodity Credit Corporation shall finance or guarantee under this section only United States agricultural commodities. The Commodity Credit Corporation shall not finance or guarantee under this section the value of any foreign agricultural component."
Subsec. (i). Pub. L. 104–127, §243(a)(4), designated existing provisions as par. (1), inserted heading, struck out former par. (1) which read as follows: "is not in a sound financial condition;", redesignated pars. (2) and (3) as subpars. (A) and (B), respectively, of par. (1), and added par. (2).
Subsec. (k). Pub. L. 104–127, §243(a)(5), added subsec. (k) and struck out heading and text of former subsec. (k). Text read as follows:
"(1)
"(2)
1992—Subsecs. (a), (b). Pub. L. 102–511, §709(a)(1), inserted ", including processed agricultural products and high-value agricultural products," after "agricultural commodities".
Subsec. (c). Pub. L. 102–511, §708(a), inserted sentence at end.
Subsec. (d)(3). Pub. L. 102–511, §708(b), amended par. (3) generally. Prior to amendment, par. (3) read as follows: "to assist countries, particularly developing countries, in meeting their food and fiber needs; and".
Subsec. (k). Pub. L. 102–511, §709(a)(2), added subsec. (k).
1991—Subsec. (i). Pub. L. 102–237 substituted "issued by the Commodity Credit Corporation under this section if it is determined by the Corporation, at the time of the assignment, that" for "or proceeds payable under a credit guarantee issued by the Commodity Credit Corporation under this section if it is determined by the Corporation that".
CHANGE OF NAMECommittee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.
EFFECTIVE DATE OF 2008 AMENDMENTAmendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.
REGULATIONSPub. L. 104–127, title II, §243(d), Apr. 4, 1996, 110 Stat. 967, provided that: "Not later than 180 days after the date of enactment of this Act [Apr. 4, 1996], the Secretary of Agriculture shall issue regulations to carry out the amendments made by this section [amending this section and sections 5602 and 5641 of this title]."
PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETSPub. L. 101–624, title XV, §1542, Nov. 28, 1990, 104 Stat. 3691, as amended by Pub. L. 102–237, title III, §338, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102–511, title VII, §706, Oct. 24, 1992, 106 Stat. 3350; Pub. L. 103–182, title III, §321(g), Dec. 8, 1993, 107 Stat. 2112; Pub. L. 104–127, title II, §§277(a), 278, Apr. 4, 1996, 110 Stat. 977, 979; Pub. L. 107–171, title III, §3203, May 13, 2002, 116 Stat. 300; Pub. L. 110–246, title III, §3204, June 18, 2008, 122 Stat. 1837, provided that:
"(a)
"(b)
"(1)
"(A) the establishment or improvement of facilities, or
"(B) the provision of services or United States produced goods,
in emerging markets by United States persons to improve handling, marketing, processing, storage, or distribution of imported agricultural commodities and products thereof if the Secretary of Agriculture determines that such guarantees will primarily promote the export of United States agricultural commodities (as defined in section 102(7) of the Agricultural Trade Act of 1978 [7 U.S.C. 5602(7)]).
"(2)
"(A) projects that encourage the privatization of the agricultural sector or that benefit private farms or cooperatives in emerging markets; and
"(B) projects for which nongovernmental persons agree to assume a relatively larger share of the costs.
"(3)
"(A) goods from the United States are not available; or
"(B) the use of goods from the United States is not practicable.
"(4)
"(A) the term of the depreciation schedule of the facility assisted; or
"(B) 20 years.
"(c)
"(d)
"(1)
"(A)
"(i)
"(ii)
"(B)
"(i) by providing assistance to teams consisting primarily of agricultural consultants, farmers, other persons from the private sector, and government officials expert in assessing the food and rural business systems of other countries to enable such teams to conduct the assessments, make the recommendations, and identify the opportunities and projects specified in subparagraph (A) in emerging markets;
"(ii) by providing necessary subsistence expenses in the United States and necessary transportation expenses by individuals designated by emerging markets to enable such individuals to consult with food and rural business system experts in the United States to enhance such systems of such emerging markets; and
"(iii) by providing for necessary subsistence expenses in emerging markets and necessary transportation expenses of United States agricultural producers and other individuals knowledgeable in agricultural and agribusiness matters to assist in transferring their knowledge and expertise to entities in emerging markets.
"(C)
"(D)
"(E)
"(F)
"(G)
"(H)
"(2)
"(A)
"(B)
"(i) compile, through contacts with the governments of emerging markets and private sector officials in emerging markets, a list of their agricultural institutions, including the location, capabilities, and needs of the institutions;
"(ii) make such information available through an appropriate agency of the Department of Agriculture to agribusinesses and agricultural institutions in the United States and other agencies of the United States Government; and
"(iii) carry out a program—
"(I) to review available agricultural information resources, to determine which would be useful for the purposes of this program;
"(II) to arrange for the exchange of persons associated with such agricultural institutions and agribusinesses with experience or interest in the areas of need identified in clause (i);
"(III) to help establish contacts between agricultural entrepreneurs and businesses in the United States and emerging markets, which may include individuals and entities participating in the program established under paragraph (1), to facilitate cooperation and joint enterprises; and
"(IV) to provide for the exchange of administrators and faculty members from agricultural and other institutions to strengthen and revise educational programs in agricultural economics, agribusiness, and agrarian law, to support change towards a free market economy in emerging markets.
"(C)
"(D)
"(e)
"(1)
"(2)
"(A) the amount and allocation, by country, of credit guarantees issued under subsection (a);
"(B) the aggregate foreign debt burdens of countries receiving commodities or facilities under such credit guarantees, expressed in terms of debt on account of agricultural commodities or products thereof, or facilities for which guarantees may be made under subsection (a)(1)(B), and all other debt;
"(C) the activities of creditor governments and private creditors to reschedule or reduce payments due on existing debt owed to such creditors by a country in cases where such country has been unable to fully meet its debt obligations; and
"(D) an analysis of—
"(i) the economic effects of the foreign debt burden of each recipient country, and in particular the economic effects on each recipient country of the credits for which repayment is guaranteed under subsection (a); and
"(ii) the relationship between any negative economic effects on any recipient country caused by its overall foreign debt burden and debt incurred under subsection (a) and such country's political stability.
"(f)
"(1) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of the economy of the country; and
"(2) has the potential to provide a viable and significant market for United States agricultural commodities or products of United States agricultural commodities."
PRESIDENTIAL DETERMINATION OF EMERGING DEMOCRACIESDetermination of President of the United States, No. 95–35, Aug. 10, 1995, 60 F.R. 44723, provided:
Pursuant to the authority vested in me by section 1542(f) of the Food, Agriculture, Conservation and Trade Act of 1990, as amended (7 U.S.C. 5622 note) (hereinafter "the Act"), I hereby determine that the following countries are taking the steps set forth in section 1542(f) of the Act to qualify as emerging democracies for purposes of that section:
Albania, Bangladesh, Belarus, Bosnia and Herzegovina, Bulgaria, Cambodia, Croatia, Czech Republic, Egypt, El Salvador, Estonia, the Former Yugoslav Republic of Macedonia, Ghana, Guatemala, Hungary, Jordan, Kazakhstan, Latvia, Lithuania, Morocco, Namibia, Nicaragua, Pakistan, Panama, the Philippines, Poland, Romania, Russia, Slovak Republic, Slovenia, South Africa, Tanzania, Tunisia, Ukraine, Yemen, and Zimbabwe.
In making this determination, I have considered the eligibility only of those countries for which programs are underway or currently contemplated by the Department of Agriculture.
The Secretary of State is authorized and directed to publish this determination in the Federal Register.
William J. Clinton.
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