7 U.S.C. § 5621 — Direct credit sales program

Page 1759 TITLE 7—AGRICULTURE § 5621 subsection (b)(2) of section 6921 of this title (referred to in this section as the ‘‘Advisory Committee’’), shall seek— (A) to support the greater inclusion of Tribal agricultural and food products in Fed- eral trade-related activities; and (B) to increase the collaboration between Federal trade promotion efforts and other Federal trade-related activities in support of the greater inclusion sought under subpara- graph (A). (2) Interdepartmental coordination In carrying out activities to increase the collaboration described in paragraph (1)(B), the Secretary shall coordinate with— (A) the Secretary of Commerce; (B) the Secretary of State; (C) the Secretary of the Interior; and (D) the heads of any other relevant Fed- eral agencies. (b) Report; goals (1) Report Not later than 2 years after December 20, 2018, the Secretary shall submit a report de- scribing the efforts of the Department of Agri- culture and other Federal agencies under this section to— (A) the Advisory Committee; (B) the Committee on Agriculture of the House of Representatives; (C) the Committee on Energy and Com- merce of the House of Representatives; (D) the Committee on Agriculture, Nutri- tion, and Forestry of the Senate; (E) the Committee on Commerce, Science, and Transportation of the Senate; and (F) the Committee on Indian Affairs of the Senate. (2) Goals Not later than 90 days after December 20, 2018, the Secretary shall establish goals for measuring, in an objective and quantifiable format, the extent to which Indian Tribes and Tribal agricultural and food products are in- cluded in the trade-related activities of the Department of Agriculture. (Pub. L. 115–334, title III, § 3312, Dec. 20, 2018, 132 Stat. 4623.) Editorial Notes CODIFICATION Section was enacted as part of the Agriculture Im- provement Act of 2018, and not as part of the Agricul- tural Trade Act of 1978 which comprises this chapter. Statutory Notes and Related Subsidiaries DEFINITION OF ‘‘SECRETARY’’ ‘‘Secretary’’ as meaning the Secretary of Agri- culture, see section 2 of Pub. L. 115–334, set out as a note under section 9001 of this title. SUBCHAPTER II—AGRICULTURAL EXPORT PROGRAMS PART A—PROGRAMS § 5621. Direct credit sales program (a) Short-term program To promote the sale of agricultural commod- ities, the Commodity Credit Corporation may fi- nance the commercial export sale of such com- modities from privately owned stocks on credit terms for not to exceed a 3-year period. (b) Intermediate-term program Subject to subsection (c), to promote the sale of agricultural commodities the Commodity Credit Corporation may finance the commercial export sales of agricultural commodities from privately owned stocks on credit terms for a pe- riod of not less than 3 years nor in excess of 10 years in a manner that will directly benefit United States agricultural producers. (c) Determinations The Commodity Credit Corporation shall not finance an export sale under subsection (b) un- less the Secretary determines that such sale will— (1) develop, expand, or maintain the import- ing country as a foreign market, on a long- term basis, for the commercial sale and export of United States agricultural commodities, without displacing normal commercial sales; (2) improve the capability of the importing country to purchase and use, on a long-term basis, United States agricultural commodities; or (3) otherwise promote the export of United States agricultural commodities. The reference in paragraphs (1) and (2) to ‘‘on a long-term basis’’ shall not apply in the case of determinations with respect to sales to the inde- pendent states of the former Soviet Union. (d) Use of program (1) General uses The Commodity Credit Corporation may use export sales financing authorized under this section— (A) to increase exports of agricultural commodities; (B) to compete against foreign agricultural exports; (C) to assist countries in meeting their food and fiber needs, particularly— (i) developing countries; and (ii) countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote eco- nomic freedom, private domestic produc- tion of food commodities for domestic con- sumption, and the creation and expansion of efficient domestic markets for the pur- chase and sale of agricultural commod- ities; and (D) for such other purposes as the Sec- retary determines appropriate consistent with the provisions of subsection (c). (2) General restrictions Export sales financing authorized under this section shall not be used for foreign aid, for- eign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales financed under this section. (e) Terms of credit assistance Any contract for the financing of exports by the Commodity Credit Corporation under this section shall include— Page 1760 TITLE 7—AGRICULTURE § 5622 (1) a requirement that repayment shall be made in dollars with interest accruing thereon as determined appropriate by the Secretary; and (2) a requirement, if the Secretary deter- mines such requirement appropriate to protect the interests of the United States, that an ini- tial payment be made by the purchaser at the time of sale or shipment of the agricultural commodity that is subject to the contract. (f) Restrictions The Commodity Credit Corporation may not make export sales financing authorized under this section available in connection with sales of an agricultural commodity to any country that the Secretary determines cannot adequately service the debt associated with such sale. (Pub. L. 95–501, title II, § 201, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3672; amended Pub. L. 102–511, title VII, § 707(a)–(c), Oct. 24, 1992, 106 Stat. 3350, 3351; Pub. L. 104–127, title II, § 277(c)(2), Apr. 4, 1996, 110 Stat. 979.) Editorial Notes PRIOR PROVISIONS A prior section 201 of Pub. L. 95–501 enacted section 1707b of this title prior to the complete revision of Pub. L. 95–501 by Pub. L. 101–624. AMENDMENTS 1996—Subsec. (d)(1)(C)(ii). Pub. L. 104–127 substituted ‘‘emerging markets’’ for ‘‘emerging democracies’’. 1992—Subsec. (c). Pub. L. 102–511, § 707(a), inserted sentence at end. Subsec. (d)(1)(C). Pub. L. 102–511, § 707(b), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: ‘‘to assist countries, particularly devel- oping countries, in meeting their food and fiber needs; and’’. Subsec. (f). Pub. L. 102–511, § 707(c), added subsec. (f). Statutory Notes and Related Subsidiaries REGULATIONS Pub. L. 102–511, title VII, § 707(d), Oct. 24, 1992, 106 Stat. 3351, required Secretary of Agriculture to issue final regulations to implement this section not later than 30 days after Oct. 24, 1992, prior to repeal by Pub. L. 104–127, title II, § 276, Apr. 4, 1996, 110 Stat. 977. § 5622. Export credit guarantee program (a) Short-term credit guarantees The Commodity Credit Corporation may guar- antee 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 24-month period. (b) Purpose of program The Commodity Credit Corporation may use export credit guarantees authorized under this section— (1) to increase exports of agricultural com- modities; (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 eco- nomic freedom, private domestic production of food commodities for domestic consump- tion, and the creation and expansion of effi- cient 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 guarantees Export credit guarantees authorized by this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provi- sions of the cargo preference laws shall not apply to export sales with respect to which cred- it is guaranteed under this section. (d) Restrictions The Commodity Credit Corporation shall not make credit guarantees available in connection with sales of agricultural commodities to any obligor that the Secretary determines cannot adequately service the debt associated with such sale. (e) Terms Export credit guarantees issued pursuant to this section shall contain such terms and condi- tions as the Commodity Credit Corporation de- termines to be necessary. (f) United States agricultural commodities The Commodity Credit Corporation shall fi- nance or guarantee under this section only United States agricultural commodities. (g) Ineligibility of financial institutions (1) In general A 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 insti- tution; or (B) is owned or controlled by an entity that owns or controls that financial institu- tion issuing the letter of credit. (2) Third country banks The Commodity Credit Corporation may guarantee under subsection (a) the repayment of credit made available to finance an export sale irrespective of whether the obligor is lo- cated in the country to which the export sale is destined. (h) Conditions for fish and processed fish prod- ucts In 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 agricul- tural commodities under this section.