(1) In general.— The Secretary of Transportation shall reimburse the Secretary of Agriculture and the Commodity Credit Corporation for the amount by which, in any fiscal year—
(A)the total cost of ocean freight and ocean freight differential for which obligations are incurred by the Secretary of Agriculture and the Corporation on exports of agricultural commodities and their products under the agricultural export programs specified in section
55314(b) of this title; exceeds
(B)20 percent of the value of the commodities and their products and the cost of the ocean freight and ocean freight differential on which obligations are incurred by the Secretary of Agriculture and the Corporation during that fiscal year.
(2) Commodities shipped from inventory.— For purposes of this subsection, commodities shipped from the inventory of the Corporation shall be valued as provided in section 412(d) of the Food for Peace Act (7 U.S.C. 1736f(d)).
(c) Issuance and Purchase of Obligations.—
(1) Issuance.— To meet the expenses required to be assumed under subsection (b), the Secretary of Transportation shall issue obligations to the Secretary of the Treasury. The Secretary of Transportation, with the approval of the Secretary of the Treasury, shall prescribe the form, denomination, maturity, and other terms (except the interest rate) of the obligations. The Secretary of the Treasury shall set the interest rate for the obligations, considering the average market yield on outstanding marketable obligations of the United States Government of comparable maturities during the month before the obligations are issued.
(2) Purchase.— The Secretary of the Treasury shall purchase the obligations issued under this subsection. To purchase the obligations, the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale of securities issued under chapter
31 of title
31. The purposes for which securities may be issued under that chapter are extended to include the purchase of obligations under this subsection. A redemption or purchase of the obligations by the Secretary of the Treasury is a public debt transaction of the Government.
(d) Source of Funds for Reimbursement.— Reimbursement of the Secretary of Transportation for costs incurred under this section shall be made with appropriated funds rather than through cancellation of notes.
(1) Authorization.— Each fiscal year, there is authorized to be appropriated an amount sufficient to reimburse the Secretary of Transportation for the costs incurred under this section, including administrative expenses and the principal and interest due on obligations issued to the Secretary of the Treasury.
(2) Appropriation for administrative expenses.— Each fiscal year, such amounts as may be necessary are hereby appropriated to pay interest and to liquidate debt on obligations issued to the Secretary of the Treasury under this section.
(f) Notification to Congress of Insufficiency.— If the Secretary of Transportation is unable to obtain the funds necessary to finance the increased ocean freight charges resulting from the requirements of subsection (b), the Secretary shall notify Congress within 10 working days of the discovery of the insufficiency.
June 29, 1936, ch. 858, title IX, § 901d, as added Pub. L. 99–198, title XI, § 1142, Dec. 23, 1985, 99 Stat. 1493.
46 App.:1241h(d) (last sentence).
46 App.:1241h(d) (1st sentence).
46 App.:1241h note.
Pub. L. 100–202, 101(a) [title V (par. under heading “Ocean Freight Differential”)], Dec. 22, 1987, 101 Stat. 1329, 1329–27.
In subsection (b)(2), the words “section 412(d) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f(d))” are substituted for “section
1733(b) of title
7” because the latter provision, as amended in 1990, no longer contains provisions on valuation of commodities shipped from the inventory of the Commodity Credit Corporation, and a provision substantially the same as former 7 U.S.C. 1733(b) is now at 7 U.S.C. 1736f(e).
In subsection (c)(1), the words “considering the current average market yield on outstanding marketable obligations of the United States Government of comparable maturities during the month before the obligations are issued” are substituted for “taking into consideration the average market yield on outstanding marketable obligations of the United States with remaining periods of maturity comparable to the average maturities of such obligations during the month preceding the issuance of such obligations of the Secretary of Transportation” to eliminate unnecessary words.
In subsection (c)(2), the words “after December 23, 1985” are omitted as obsolete.
In subsection (e)(1), the words “commencing with the fiscal year beginning October 1, 1986” are omitted as obsolete.
In subsection (f), the words “Notwithstanding the provisions of this section” are omitted as unnecessary.
2008—Subsec. (b)(2). Pub. L. 110–246substituted “Food for Peace Act” for “Agricultural Trade Development and Assistance Act of 1954”.
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