7 U.S.C. § 1733 — General provisions

Page 992 TITLE 7—AGRICULTURE § 1733 level to solve development problems in a for- eign country in which the organization is lo- cated, except that the term does not include an organization that is primarily an agency or instrumentality of the government of the for- eign country. (8) Private voluntary organization The term ‘‘private voluntary organization’’ means a not-for-profit, nongovernmental orga- nization (in the case of a United States organi- zation, 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 as- sistance activities (other than religious activi- ties). (9) Secretary The term ‘‘Secretary’’ means the Secretary of Agriculture, unless otherwise specified in this chapter. (July 10, 1954, ch. 469, title IV, § 402, as added Pub. L. 86–341, title I, § 14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, § 201(2), Sept. 27, 1962, 76 Stat. 611; Pub. L. 89–808, § 2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 92–42, July 1, 1971, 85 Stat. 99; Pub. L. 95–113, title XII, § 1205, Sept. 29, 1977, 91 Stat. 956; Pub. L. 96–72, § 24, Sept. 29, 1979, 93 Stat. 536; Pub. L. 97–98, title XII, § 1213, Dec. 22, 1981, 95 Stat. 1281; Pub. L. 98–623, title IV, § 405(b), Nov. 8, 1984, 98 Stat. 3409; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3645; Pub. L. 104–127, title II, § 211(b), Apr. 4, 1996, 110 Stat. 955; Pub. L. 110–246, title III, § 3015, June 18, 2008, 122 Stat. 1826.) Editorial Notes AMENDMENTS 2008—Pars. (3) to (9). Pub. L. 110–246 added par. (3) and redesignated former pars. (3) to (8) as (4) to (9), respec- tively. 1996—Par. (6). Pub. L. 104–127 added par. (6) and struck out heading and text of former par. (6). Prior to amend- ment, text read as follows: ‘‘The term ‘indigenous non- governmental organization’ means an organization that operates under the laws of the recipient country, or that has its principal place of activity in such coun- try, and that works at the local level to solve develop- ment problems in the foreign country in which it is lo- cated, except that the term does not include an organi- zation that is primarily an agent or instrumentality of the foreign government.’’ 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions defining ag- ricultural commodity. 1984—Pub. L. 98–623 inserted ‘‘(including fish, without regard to whether such fish are harvested in aquacultural operations)’’ and struck out provision that subject to the availability of appropriations there- for, any domestically produced fishery product could be made available under this chapter. 1981—Pub. L. 97–98 substituted ‘‘wine, beer, distilled spirits, or other alcoholic beverage’’ for ‘‘wine or beer’’. 1979—Pub. L. 96–72 inserted reference to beer. 1977—Pub. L. 95–113 required that in allocation of funds made available under subchapter II of this chap- ter priority be given to financing the sale of food and fiber commodities. 1971—Pub. L. 92–42 inserted sentence that proviso ex- cluding alcoholic beverages from term ‘‘agricultural commodity’’ shall not be construed as prohibiting do- mestic wine industry from participating in market de- velopment activities for expansion of export sales of domestic agricultural commodities. 1966—Pub. L. 89–808 substituted definition of agricul- tural commodity and provisions as to availability of fishery products for former provisions respecting agree- ments for delivery of surplus agricultural commodities, period, and security for payments in relation to long- term supply contracts, now covered by subchapter II of this chapter. See section 1707 of this title. 1962—Pub. L. 87–703 authorized executive agreements with financial institutions acting in behalf of friendly nations and administrative sales agreements with for- eign and United States private trade with provision for security for payments. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effec- tive Date note under section 8701 of this title. 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. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–623 to be considered as hav- ing taken effect before Sept. 8, 1982, for purposes of sec- tion 135 of Pub. L. 97–253 (set out as a note under sec- tion 612c of this title), see section 405(d) of Pub. L. 98–623, set out as a note under section 1707a of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title. § 1733. General provisions (a) Prohibition No agricultural commodity, food procured outside of the United States, food voucher, or cash transfer for food shall be made available under this chapter unless it is determined that— (1) in the case of the provision of an agricul- tural commodity, 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 com- modity; and (2) the distribution of the agricultural com- modity or use of the food procured outside of the United States, food voucher, or cash trans- fer for food in the recipient country will not result in a substantial disincentive to or inter- ference with domestic production or mar- keting in that country. (b) Impact on local farmers and economy The Secretary or the Administrator, as appro- priate, shall ensure that the importation of United States agricultural commodities, the use Page 993 TITLE 7—AGRICULTURE § 1733 of food procured outside of the United States, food vouchers, and cash transfers for food, and the use of local currencies for development pur- poses will not have a disruptive impact on the farmers or the local economy of the recipient country. The Secretary or the Administrator, as appropriate, shall seek information, as part of the regular proposal and submission process, from implementing agencies on the potential costs and benefits to the local economy within the recipient country. (c) Transshipment The Secretary or the Administrator, as appro- priate, shall, under such terms and conditions as are determined to be appropriate, require com- mitments designed to prevent or restrict the re- sale or transshipment to other countries, or use for other than domestic purposes, of agricul- tural 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 coun- tries with respect to— (1) sales from privately owned stocks; (2) sales from stocks owned by the Com- modity Credit Corporation; and (3) donations. Small businesses shall be provided adequate and fair opportunity to participate in such sales. (e) World prices (1) In general In carrying out this chapter, reasonable pre- cautions 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 commer- cial trade with foreign countries. (2) Sale price Sales of agricultural commodities described in paragraph (1) shall be made at a reasonable market price in the economy where the agri- cultural commodity is to be sold, as deter- mined by the Secretary or the Administrator, as appropriate. (f) Publicity Commitments shall be obtained from coun- tries or private entities, as appropriate, receiv- ing commodities under this chapter that such countries or private entities will widely pub- licize, 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 appro- priate, shall encourage the private sector of the United States and private importers in devel- oping countries to participate in the programs established under this chapter. (h) Safeguard usual marketings In carrying out this chapter, reasonable pre- cautions shall be taken to safeguard the usual marketings of the United States and to avoid displacing any sales of the United States agri- cultural commodities that the Secretary or Ad- ministrator determines would otherwise be made. (i) Military distribution of food aid (1) In general The Secretary or the Administrator, as ap- propriate, shall attempt to ensure that agri- cultural commodities made available under this chapter will be provided without regard to the political affiliation, geographic location, ethnic, tribal, or religious identity of the re- cipient or without regard to other extraneous factors. (2) Prohibition on handling of commodities by the military (A) In general Except as provided in subparagraph (B), the Secretary or the Administrator, as ap- propriate, shall not enter into an agreement under this chapter to provide agricultural commodities if such agreement requires or permits the distribution, handling, or alloca- tion of such commodities by the military forces of any government or insurgent group. (B) Exception Notwithstanding subparagraph (A), the Secretary or the Administrator, as appro- priate, may authorize the handling or dis- tribution of commodities by the military forces of a country in exceptional cir- cumstances in which— (i) nonmilitary channels are not avail- able for such handling or distribution; (ii) such action is consistent with the re- quirements of paragraph (1); and (iii) the Secretary or the Administrator, as appropriate, determines that such ac- tion is necessary to meet the emergency health, safety, or nutritional requirements of the recipient population. (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 com- modities and other relief supplies and to es- tablish safe zones for medical and humani- tarian treatment and evacuation of injured persons. (j) Violations of human rights (1) Ineligible countries The Secretary or the Administrator, as ap- propriate, shall not enter into any agreement under this chapter to provide agricultural commodities, or to finance the sale of agricul- tural commodities, to the government of any country determined by the President to en- gage in a consistent pattern of gross viola- tions of internationally recognized human rights, including— (A) the torture or cruel, inhuman, or de- grading treatment or punishment of individ- uals; Page 994 TITLE 7—AGRICULTURE § 1733 (B) the prolonged detention of individuals without charges; (C) the responsibility for causing the dis- appearance of individuals through the ab- duction 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 provi- sion of assistance to such a country if the as- sistance is targeted to the most needy people in such country and is made available in such country through channels other than the gov- ernment. (k) Abortion prohibition Local currencies that are made available for use under this chapter may not be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions. (l) Sale procedure (1) In general Subsections (b) and (h) shall apply to sales of commodities in recipient countries to gen- erate proceeds to carry out projects under— (A) subchapters II and III; (B) section 1431(b) of this title; and (C) the Food for Progress Act of 1985 (7 U.S.C. 1736o). (2) Currency A sale described in paragraph (1) may be made in United States dollars or other cur- rencies. (July 10, 1954, ch. 469, title IV, § 403, as added Pub. L. 86–341, title I, § 14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, § 201(3), Sept. 27, 1962, 76 Stat. 611; Pub. L. 88–638, § 1(17), Oct. 8, 1964, 78 Stat. 1037; Pub. L. 89–808, § 2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 95–113, title XII, § 1206, Sept. 29, 1977, 91 Stat. 956; Pub. L. 96–533, title IV, § 407, Dec. 16, 1980, 94 Stat. 3151; Pub. L. 97–98, title XII, § 1214, Dec. 22, 1981, 95 Stat. 1282; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3646; Pub. L. 102–237, title III, § 321, Dec. 13, 1991, 105 Stat. 1857; Pub. L. 104–127, title II, § 213, Apr. 4, 1996, 110 Stat. 956; Pub. L. 107–171, title III, § 3009(a), May 13, 2002, 116 Stat. 283; Pub. L. 113–79, title III, § 3008, Feb. 7, 2014, 128 Stat. 775; Pub. L. 115–334, title III, §§ 3109, 3112(b), Dec. 20, 2018, 132 Stat. 4604, 4606.) Editorial Notes REFERENCES IN TEXT The Food for Progress Act of 1985, referred to in sub- sec. (l)(1)(C), is Pub. L. 99–198, title XI, § 1110, Dec. 23, 1985, 99 Stat. 1472, which is classified to section 1736o of this title. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 3109(a)(1), inserted ‘‘, food procured outside of the United States, food voucher, or cash transfer for food’’ after ‘‘agricultural commodity’’ in introductory provisions. Subsec. (a)(1). Pub. L. 115–334, § 3109(a)(2), inserted ‘‘in the case of the provision of an agricultural com- modity,’’ before ‘‘adequate’’. Subsec. (a)(2). Pub. L. 115–334, § 3109(a)(3), substituted ‘‘agricultural commodity or use of the food procured outside of the United States, food voucher, or cash transfer for food’’ for ‘‘commodity’’. Subsec. (b). Pub. L. 115–334, § 3109(b), in first sentence, inserted ‘‘, the use of food procured outside of the United States, food vouchers, and cash transfers for food,’’ after ‘‘agricultural commodities’’ and, in second sentence, struck out ‘‘of sales of agricultural commod- ities’’ after ‘‘benefits to the local economy’’. Subsec. (m). Pub. L. 115–334, § 3112(b), struck out sub- sec. (m) which related to annual report on use of funds. 2014—Subsec. (b). Pub. L. 113–79, § 3008(a), inserted at end ‘‘The Secretary or the Administrator, as appro- priate, shall seek information, as part of the regular proposal and submission process, from implementing agencies on the potential costs and benefits to the local economy of sales of agricultural commodities within the recipient country.’’ Subsec. (m). Pub. L. 113–79, § 3008(b), added subsec. (m). 2002—Subsec. (e). Pub. L. 107–171, § 3009(a)(1), des- ignated existing provisions as par. (1), inserted heading, and added par. (2). Subsec. (l). Pub. L. 107–171, § 3009(a)(2), added subsec. (l). 1996—Subsec. (b). Pub. L. 104–127, § 213(1), inserted heading and struck out former heading ‘‘Consulta- tions’’ and in text struck out ‘‘consult with representa- tives from the International Monetary Fund, the Inter- national Bank for Reconstruction and Development, the World Bank, and other donor organizations to’’ be- fore ‘‘ensure that’’. Subsec. (c). Pub. L. 104–127, § 213(2), struck out ‘‘from countries’’ after ‘‘require commitments’’ and sub- stituted ‘‘or use for other’’ for ‘‘for use for other’’. Subsec. (f). Pub. L. 104–127, § 213(3), inserted ‘‘or pri- vate entities, as appropriate,’’ after ‘‘from countries’’ and ‘‘or private entities’’ after ‘‘such countries’’. Subsec. (i)(2)(C). Pub. L. 104–127, § 213(4), struck out heading and text of subpar. (C). Text read as follows: ‘‘Not later than 30 days after an authorization is pro- vided under subparagraph (B), the Secretary or the Ad- ministrator, 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.’’ 1991—Subsec. (i)(2)(C). Pub. L. 102–237 substituted ‘‘committees’’ for ‘‘Committees’’. 1990—Pub. L. 101–624 amended section generally, sub- stituting present provisions for provisions authorizing appropriations necessary for this chapter, classifying such expenditures under international affairs and fi- nance 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 Presi- dent to transfer up to 15 percent of funding for any fis- cal year from any subchapter of this chapter to any other subchapter. 1981—Subsec. (b). Pub. L. 97–98 inserted ‘‘a price not greater than’’. 1980—Subsec. (c). Pub. L. 96–533 added subsec. (c). 1977—Pub. L. 95–113 designated existing provisions as subsec. (a) and added subsec. (b). 1966—Pub. L. 89–808 substituted provisions for author- ization of appropriations, including reimbursement of Commodity Credit Corporation, and classification of expenditures, formerly covered in former section 1703(a) of this title, for provision for payment for com- modities, now provided for by section 1706(a) of this title. 1964—Pub. L. 88–638 substituted ‘‘less than the min- imum rate required by section 2161 of Title 22 for loans made under that section’’ for ‘‘more than the cost of the funds to the United States Treasury as determined by the Secretary of the Treasury, taking into consider- ation the current average market yields on outstanding marketable obligations of the United States having maturity comparable to the maturities of loans made by the President under this section’’. Page 995 TITLE 7—AGRICULTURE § 1734 1962—Pub. L. 87–703 substituted ‘‘reasonable’’ for ‘‘ap- proximately equal’’ annual amounts and provided for deferral of date for beginning annual payment. Statutory Notes and Related Subsidiaries 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. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title. Executive Documents DELEGATION OF FUNCTIONS Functions of President under subsec. (j) of this sec- tion delegated to Secretary of State by section 4(b) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title. § 1734. Agreements (a) In general Before entering into agreements with foreign countries under subchapters II and III–A for the provision of commodities, the Secretary or the Administrator, as appropriate, shall consider the extent to which the recipient country is un- dertaking measures for economic development purposes in order to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable development. (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 pro- posed to be made available to the country or eligible organization under the agreement; (2) with respect to agreements entered into with foreign countries under subchapters II and III–A, include a statement of the manner in which the agricultural commodities pro- vided 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 agricul- tural development, alleviate poverty, and pro- mote broad-based, equitable, and sustainable agriculture and broad-based economic growth; (3) with respect to agreements entered into under subchapters II and III–A, include a statement of the manner in which competitive private sector participation within the recipi- ent country in the storage, marketing, trans- portation, and distribution of agricultural commodities made available under this chap- ter will be encouraged; (4) include a statement that such agreement shall be subject to the availability, during each fiscal year to which the agreement ap- plies, of the necessary appropriations and agri- cultural commodities; and (5) contain such other terms and conditions as the Secretary or the Administrator, as ap- propriate, determines to be necessary. (c) Multi-year agreements (1) In general Agreements to provide assistance on a multi-year basis to recipient countries or to eligible organizations— (A) may be made available under sub- chapters II and III–A; and (B) shall be made available under sub- chapter III. (2) Exception The Secretary or the Administrator, as ap- propriate, may determine not to make assist- ance available on a multi-year basis with re- spect to a recipient country or an eligible or- ganization if it is determined that assistance should be provided to such country or through such organization only on an annual basis be- cause— (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 ap- propriate, indicate there is only a need for a 1 year agreement. (d) Review of agreements The Secretary or the Administrator, as appro- priate, may make a determination to terminate, or refuse to enter into, a multi-year agreement with respect to a recipient country if the Sec- retary 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 Adminis- trator, as appropriate, may consider the extent to which the country is— (1) making significant economic develop- ment reforms; (2) promoting free and open markets for food and agricultural producers; and (3) fostering increased food security. (July 10, 1954, ch. 469, title IV, § 404, as added Pub. L. 86–341, title I, § 14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 89–808, § 2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 96–53, title II, § 209, Aug. 14, 1979, 93 Stat. 370; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3648; Pub. L. 104–127, title II, § 214, Apr. 4, 1996, 110 Stat. 956.) Editorial Notes AMENDMENTS 1996—Subsec. (a). Pub. L. 104–127, § 214(1), inserted ‘‘with foreign countries’’ after ‘‘Before entering into agreements’’. Subsec. (b)(2). Pub. L. 104–127, § 214(2), inserted ‘‘with foreign countries’’ after ‘‘agreements entered into’’ and ‘‘and broad-based economic growth’’ before semicolon at end.