12 U.S.C. § 635q — Establishment of tied aid credit program

Page 254 TITLE 12—BANKS AND BANKING § 635p govern the use of export credit subsidies gen- erally. (Pub. L. 98–181, title I [title VI, § 642], Nov. 30, 1983, 97 Stat. 1263.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this part’’, meaning part C (§§ 641–647, 650) of title VI of Pub. L. 98–181, title I, Nov. 30, 1983, 97 Stat. 1263, known as the Trade and Development Enhancement Act of 1983, which enacted this subchapter and section 1671g of Title 19, Customs Duties, and amended sections 1671a and 1671b of Title 19. For complete classification of this Act to the Code, see Short Title note below and Tables. Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 98–181, title I [title VI, § 641], Nov. 30, 1983, 97 Stat. 1263, provided that: ‘‘This part [part C (§§ 641–647, 650) of title VI, enacting this subchapter and section 1671g of Title 19, Customs Duties, and amending sec- tions 1671a and 1671b of Title 19] may be referred to as the ‘Trade and Development Enhancement Act of 1983’.’’ § 635p. Presidential mandate to negotiate; objec- tives The President shall vigorously pursue negotia- tions to limit and set rules for the use of tied aid for exports. The negotiating objectives of the United States should include reaching agree- ments— (1) to define the various forms of tied aid credit, particularly mixed credits under the Arrangement on Guidelines for Officially Sup- ported Export Credits established through the Organization for Economic Cooperation and Development (hereinafter in this subchapter referred to as the ‘‘Arrangement’’); (2) to phase out the use of government-mixed credits by a date certain; (3) to set rules governing the use of public- private cofinancing, or other forms of mixed financing, which may have the same result as government-mixed credits of drawing on concessional development assistance to produce subsidized export financing; (4) to raise the threshold for notification of the use of tied aid credit to a 50 per centum level of concessionality; (5) to improve notification procedures so that advance notification must be given on all uses of tied aid credit; and (6) to prohibit the use of tied aid credit for production facilities for goods which are in structural oversupply in the world. (Pub. L. 98–181, title I [title VI, § 643], Nov. 30, 1983, 97 Stat. 1263.) § 635q. Establishment of tied aid credit program in United States Export-Import Bank (a) Establishment and elements of program; co- operation with Trade and Development Agency and private institutions and entities (1) The Chairman of the Export-Import Bank of the United States shall establish, within the Export-Import Bank of the United States, a pro- gram of tied aid credits for United States ex- ports. (2) The program shall be carried out in co- operation with the Trade and Development Agency and with private financial institutions or entities, as appropriate. (3) The program may include— (A) the combined use of the credits, loans, or guarantees offered by the Export-Import Bank of the United States with concessional financ- ing or grants made available under section 635r(d) of this title, by methods including the blending of the financing of, or parallel financ- ing by, the Bank and the Trade and Develop- ment Agency; and (B) the combined use of credits, loans, or guarantees offered by the Bank, with financ- ing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel financing by, the Bank and private institutions or entities. (b) Purpose of program The purpose of the tied aid credit program under this section is to offer or arrange for fi- nancing for the export of United States goods and services which is substantially as concessional as foreign financing for which there is reasonable proof that such foreign fi- nancing is being offered to, or arranged for, a bona fide foreign competitor for a United States export sale. (c) Fund The Chairman of the Bank is authorized to es- tablish a fund, as necessary, for carrying out the tied aid credit program described in this section. (d) Availability of concessional financing or grants Concessional financing or grants made avail- able under section 635r(d) of this title for the purposes of the mixed financing program estab- lished under this section shall be made available in accordance with the provisions of section 635r(c) of this title. (Pub. L. 98–181, title I [title VI, § 644], Nov. 30, 1983, 97 Stat. 1264; Pub. L. 100–418, title II, § 2204(c)(1)(A), Aug. 23, 1988, 102 Stat. 1330; Pub. L. 102–549, title II, § 202(c)(1), Oct. 28, 1992, 106 Stat. 3658.) Editorial Notes AMENDMENTS 1992—Subsec. (a)(2), (3)(A). Pub. L. 102–549 substituted ‘‘Development Agency’’ for ‘‘Development Program’’. 1988—Subsec. (a)(2). Pub. L. 100–418, § 2204(c)(1)(A)(i), substituted ‘‘Trade and Development Program’’ for ‘‘Agency for International Development’’. Subsec. (a)(3)(A). Pub. L. 100–418, § 2204(c)(1)(A)(ii), substituted ‘‘made available under section 635r(d) of this title’’ for ‘‘offered by the Agency for International Development’’ and ‘‘Trade and Development Program’’ for ‘‘Agency for International Development’’. Subsec. (d). Pub. L. 100–418, § 2204(c)(1)(A)(iii), sub- stituted ‘‘made available under section 635r(d) of this title’’ for ‘‘offered by the Agency for International De- velopment’’ and ‘‘section 635r(c) of this title’’ for ‘‘sub- sections (c) and (d) of section 635r of this title’’. Statutory Notes and Related Subsidiaries TRANSITION PROVISIONS Pub. L. 100–418, title II, § 2204(d)(2), Aug. 23, 1988, 102 Stat. 1331, provided that: Page 255 TITLE 12—BANKS AND BANKING § 635r ‘‘(A) The Administrator of the Agency for Inter- national Development shall transfer to the Director of the Trade and Development Program [now Trade and Development Agency] all records, contracts, applica- tions, and any other documents or information in con- nection with the functions transferred by virtue of the amendments made by subsection (c)(1) [amending sec- tions 635q and 635r of this title]. ‘‘(B) All determinations, regulations, and contracts— ‘‘(i) which have been issued, made, granted, or al- lowed to become effective by the President, the Agen- cy for International Development, or by a court of competent jurisdiction, in the performance of the functions transferred by virtue of the amendments made by subsection (c)(1), and ‘‘(ii) which are in effect at the time this section takes effect, shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the President, the Direc- tor of the Trade and Development Program [now Trade and Development Agency], or other authorized official, by a court of competent jurisdiction, or by operation of law. ‘‘(C)(i) The amendments made by subsection (c)(1) shall not affect any proceedings, including notices of proposed rulemaking, or any application for any finan- cial assistance, which is pending on the effective date of this section [Aug. 23, 1988] before the Agency for International Development in the exercise of functions transferred by virtue of the amendments made by sub- section (c)(1). Such proceedings and applications, to the extent that they relate to functions so transferred, shall be continued. ‘‘(ii) Orders shall be issued in such proceedings, ap- peals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section [amending sections 635q, 635r, and 635s of this title, sec- tion 5314 of Title 5, Government Organization and Em- ployees, and section 2421 of Title 22, Foreign Relations and Intercourse, and enacting provisions set out as a note under section 2421 of Title 22] had not been en- acted. Orders issued in any such proceedings shall con- tinue in effect until modified, terminated, superseded, or revoked by the Director of the Trade and Develop- ment Program [now Trade and Development Agency] or other authorized official, by a court of competent juris- diction, or by operation of law. ‘‘(iii) Nothing in this subparagraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted. ‘‘(iv) The Director of the Trade and Development Pro- gram [now Trade and Development Agency] is author- ized to issue regulations providing for the orderly transfer to the Trade and Development Program of pro- ceedings continued under this subparagraph. ‘‘(D) With respect to any function transferred by vir- tue of the amendments made by subsection (c)(1) and exercised on or after the effective date of this section [Aug. 23, 1988], reference in any other Federal law to the Agency for International Development or any offi- cer shall be deemed to refer to the Trade and Develop- ment Program [now Trade and Development Agency] or other official to which such function is so transferred.’’ § 635r. Establishment of tied aid credit program administered by Trade and Development Agency (a) Establishment and elements of program The Director of the Trade and Development Agency shall carry out a program of tied aid credits for United States exports. The program shall be carried out in cooperation with the Ex- port-Import Bank of the United States and with private financial institutions or entities, as ap- propriate. The program may include— (1) the combined use of the credits, loans, or guarantees offered by the Bank with concessional financing or grants made avail- able under subsection (d), by methods includ- ing the blending of the financing of, or parallel financing by, the Bank and the Trade and De- velopment Agency; and (2) the combination of concessional financ- ing or grants made available under subsection (d) with financing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel fi- nancing by, the Trade and Development Agen- cy and private institutions or entities. (b) Combination of funds with financing by Ex- port-Import Bank or private commercial fi- nancing These funds may be combined with financing by the Export-Import Bank of the United States or private commercial financing in order to offer, or arrange for, financing for the expor- tation of United States goods and services which is substantially as concessional as foreign fi- nancing for which there is reasonable proof that such foreign financing is being offered to, or ar- ranged for, a bona fide foreign competitor for a United States export sale. (c) Limitation on use of Agency funds; authoriza- tion for establishment of fund (1) Funds which are used to carry out a tied aid credit program authorized by subsections (a) and (b) shall be offered only to finance United States exports which can reasonably be expected to contribute to the advancement of the devel- opment objectives of the importing country or countries, and shall be consistent with the eco- nomic, security, and political criteria used to establish country allocations of Economic Sup- port Funds. (2) The Director of the Trade and Development Agency is authorized to establish a fund, as nec- essary, for carrying out a tied aid credit financ- ing program as described in this section. (d) Use of Economic Support Funds Funds available to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 [22 U.S.C. 2346 et seq.] may be used by the Director of the Trade and Development Agency, with the concurrence of the Secretary of State (as pro- vided under section 531 of the Foreign Assist- ance Act of 1961 [22 U.S.C. 2346]), for the pur- poses for which funds made available under this subsection are authorized to be used in section 635q of this title and this section. The Secretary of State shall exercise his authority in coopera- tion with the Administrator of the Agency for International Development. Funds made avail- able pursuant to this subsection may be used to finance a tied aid credit activity in any country eligible for tied aid credits under this sub- chapter. (Pub. L. 98–181, title I [title VI, § 645], Nov. 30, 1983, 97 Stat. 1264; Pub. L. 100–418, title II, § 2204(c)(1)(B), Aug. 23, 1988, 102 Stat. 1330; Pub. L. 102–549, title II, § 202(c), Oct. 28, 1992, 106 Stat. 3658.)