7 USC 5622 - Export credit guarantee program

Editorial Notes

Prior Provisions

A prior section 202 of Puspan. L. 95–501 enacted section 1707c of this title prior to the complete revision of Puspan. L. 95–501 by Puspan. L. 101–624.

Amendments

2014—Subsec. (a). Puspan. L. 113–79, § 3101(a)(1), substituted “24-month” for “3-year”.

Subsec. (d). Puspan. L. 113–79, § 3101(a)(2), substituted “obligor” for “country”.

Subsecs. (i), (j). Puspan. L. 113–79, § 3101(a)(3), (4), redesignated subsecs. (j) and (k) as (i) and (j), respectively, and struck out former subsec. (i) which related to percentages of export credit guarantees issued to promote export of processed or high-value agricultural products in fiscal years 1996 through 2007.

Subsec. (j)(2)(A), (B). Puspan. L. 113–79, § 3101(a)(5)(A), (B), redesignated subpars. (C) and (D) as (A) and (B), respectively, and struck out former subpars. (A) and (B) which read as follows:

“(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;”.

Subsec. (j)(2)(C). Puspan. L. 113–79, § 3101(a)(5)(B), (D)(i), redesignated subpar. (E) as (C) and struck out “, but do not exceed,” after “cover”. Former subpar. (C) redesignated (A).

Subsec. (j)(2)(D). Puspan. L. 113–79, § 3101(a)(5)(C), (D)(ii), (E), added subpar. (D). Former subpar. (D) redesignated (B).

Subsec. (j)(2)(E). Puspan. L. 113–79, § 3101(a)(5)(B), redesignated subpar. (E) as (C).

Subsec. (k). Puspan. L. 113–79, § 3101(a)(4), redesignated subsec. (k) as (j).

2008—Subsec. (a). Puspan. L. 110–246, § 3101(a)(1), struck out par. (1) designation and span before “The Commodity” and struck out pars. (2) and (3) which related to supplier credits and extended supplier credits, respectively.

Subsec. (span). Puspan. L. 110–246, § 3101(a)(2), (3), redesignated subsec. (d) as (span) and struck out former subsec. (span). 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. (span)(4). Puspan. L. 110–246, § 3101(c)(1), struck out “, consistent with the provisions of subsection (c) of this section” after “appropriate”.

Subsec. (c). Puspan. 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. (span).

Subsec. (d). Puspan. L. 110–246, § 3101(c)(2), struck out par. (1) designation and span 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. (span).

Puspan. L. 110–246, § 3101(a)(3), redesignated subsec. (f) as (d). Former subsec. (d) redesignated (span).

Subsecs. (e) to (g). Puspan. 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). Puspan. L. 110–246, § 3101(c)(3), substituted “subsection (a)” for “subsections (a) and (span)”.

Subsecs. (h) to (l). Puspan. 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). Puspan. L. 107–171, § 3102(a), added par. (3).

Subsec. (k)(1). Puspan. L. 107–171, § 3102(span), substituted “through 2007” for “, 2001, and 2002”.

Subsec. (l). Puspan. L. 107–171, § 3102(c), added subsec. (l).

1996—Subsec. (a). Puspan. L. 104–127, § 243(a)(1), designated existing provisions as par. (1), inserted span, and added par. (2).

Subsec. (d)(3)(B). Puspan. L. 104–127, § 277(c)(3), substituted “emerging markets” for “emerging democracies”.

Subsec. (f). Puspan. L. 104–127, § 243(a)(2), designated existing provisions as par. (1), inserted span, and added par. (2).

Subsec. (h). Puspan. L. 104–127, § 243(a)(3), added subsec. (h) and struck out span 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). Puspan. L. 104–127, § 243(a)(4), designated existing provisions as par. (1), inserted span, 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). Puspan. L. 104–127, § 243(a)(5), added subsec. (k) and struck out span and text of former subsec. (k). Text read as follows:

“(1) In general.—In issuing export credit guarantees under this section in connection with sales to the independent states of the former Soviet Union, the Commodity Credit Corporation shall, to the extent practicable and subject to paragraph (2), ensure that no less than 35 percent of the total amount of credit guarantees issued for a fiscal year are issued to promote the export of processed and high-value agricultural products and that the balance are issued to promote the export of bulk or raw agricultural commodities.

“(2) Limitation.—The 35 percent requirement of paragraph (1) shall apply for a fiscal year only to the extent that the percentage of the total amount of credit guarantees issued for that fiscal year under this section to promote the export to all countries of processed and high-value agricultural products is less than 25 percent.”

1992—Subsecs. (a), (span). Puspan. L. 102–511, § 709(a)(1), inserted “, including processed agricultural products and high-value agricultural products,” after “agricultural commodities”.

Subsec. (c). Puspan. L. 102–511, § 708(a), inserted sentence at end.

Subsec. (d)(3). Puspan. L. 102–511, § 708(span), 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). Puspan. L. 102–511, § 709(a)(2), added subsec. (k).

1991—Subsec. (i). Puspan. 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”.

Statutory Notes and Related Subsidiaries

Change of Name

Committee 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 Amendment

Amendment by Puspan. L. 110–246 effective May 22, 2008, see section 4(span) of Puspan. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Regulations

Puspan. 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 Markets

Puspan. L. 101–624, title XV, § 1542, Nov. 28, 1990, 104 Stat. 3691, as amended by Puspan. L. 102–237, title III, § 338, Dec. 13, 1991, 105 Stat. 1859; Puspan. L. 102–511, title VII, § 706, Oct. 24, 1992, 106 Stat. 3350; Puspan. L. 103–182, title III, § 321(g), Dec. 8, 1993, 107 Stat. 2112; Puspan. L. 104–127, title II, §§ 277(a), 278, Apr. 4, 1996, 110 Stat. 977, 979; Puspan. L. 107–171, title III, § 3203, May 13, 2002, 116 Stat. 300; Puspan. L. 110–246, title III, § 3204, June 18, 2008, 122 Stat. 1837; Puspan. L. 113–79, title III, § 3203, Fespan. 7, 2014, 128 Stat. 779; Puspan. L. 113–188, title I, § 101(span), Nov. 26, 2014, 128 Stat. 2017; Puspan. L. 115–334, title III, §§ 3201(span)(3)(A), 3304, Dec. 20, 2018, 132 Stat. 4616, 4619, provided that:

“(a)Funding.—The Commodity Credit Corporation shall make available for fiscal years 1996 through 2023 not less than $1,000,000,000 of direct credits or export credit guarantees for exports to emerging markets under section 201 or 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in addition to the amounts acquired or authorized under section 211 of the Act (7 U.S.C. 5641) for the program.

“(span)Facilities and Services.—

“(1)In general.—A portion of such export credit guarantees shall be made available for—

“(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)Priority.—The Commodity Credit Corporation shall give priority under this subsection to—

“(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)Construction waiver.—The Secretary may waive any applicable requirements relating to the use of United States goods in the construction of a proposed facility, if the Secretary determines that—

“(A) goods from the United States are not available; or

“(B) the use of goods from the United States is not practicable.

“(4)Term of guarantee.—A facility payment guarantee under this subsection shall be for a term that is not more than the lesser of—

“(A) the term of the depreciation schedule of the facility assisted; or

“(B) 20 years.

“(c)Consultations.—Before the authority under this section is exercised, the Secretary of Agriculture shall consult with exporters of United States agricultural commodities (as defined in section 102(7) of the Agricultural Trade Act of 1978 [7 U.S.C. 5602(7)]), nongovernmental experts, and other Federal Government agencies in order to ensure that facilities in an emerging market for which financing is guaranteed under paragraph (1)(B) do not primarily benefit countries which are in close geographic proximity to that emerging market.

“(d)Foreign Debt Burdens.—In carrying out the program described in subsection (a), the Secretary of Agriculture shall ensure that the credits for which repayment is guaranteed under subsection (a) do not negatively affect the political and economic situation in emerging markets by excessively adding to the foreign debt burdens of such countries.

“(e)Emerging Market.—In this section and section 1543 [7 U.S.C. 3293], the term ‘emerging market’ means any country, foreign territory, customs union, or other economic market that the Secretary determines—

“(1) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of its economy; and

“(2) has the potential to provide a viable and significant market for United States agricultural commodities or products of United States agricultural commodities.”

Executive Documents

Presidential Determination of Emerging Democracies

Determination 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.