
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1723]

 
                          TITLE 7--AGRICULTURE
 
        CHAPTER 41--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE
 
        SUBCHAPTER III--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS
 
Sec. 1723. Generation and use of foreign currencies by private 
        voluntary organizations and cooperatives
        

(a) Local sale and barter of commodities

    An agreement entered into between the Administrator and a private 
voluntary organization or cooperative to provide food assistance through 
such organization or cooperative under this subchapter may provide for 
the sale or barter in the recipient country, or in a country in the same 
region, of the commodities to be provided under such agreement.

(b) Minimum level of local sales

    In carrying out agreements of the type referred to in subsection (a) 
of this section, the Administrator shall permit private voluntary 
organizations and cooperatives to sell, in recipient countries, or in 
countries in the same region, an amount of commodities equal to not less 
than 15 percent of the aggregate amounts of all commodities distributed 
under non-emergency programs under this subchapter for each fiscal year, 
to generate foreign currency proceeds to be used as provided in this 
section.

(c) Description of intended uses

    A private voluntary organization or cooperative submitting a 
proposal to enter into a non-emergency food assistance agreement under 
this subchapter shall include in such proposal a description of the 
intended uses of any foreign currency proceeds that may be generated 
through the sale, in the recipient country, or in a country in the same 
region, of any commodities provided under an agreement entered into 
between the Administrator and the organization or cooperative.

(d) Use

    Foreign currencies generated from any partial or full sale or barter 
of commodities by a private voluntary organization or cooperative under 
a non-emergency food assistance agreement under this subchapter may--
        (1) be used to transport, store, distribute, and otherwise 
    enhance the effectiveness of the use of agricultural commodities 
    provided under this subchapter;
        (2) be used to implement income generating, community 
    development, health, nutrition, cooperative development, 
    agricultural, and other developmental activities within the 
    recipient country or within a country in the same region; or
        (3) be invested and any interest earned on such investment may 
    be used for the purposes for which the assistance was provided to 
    that organization, without further appropriation by Congress.

(July 10, 1954, ch. 469, title II, Sec. 203, 68 Stat. 458; May 28, 1956, 
ch. 327, title II, Sec. 208(c), 70 Stat. 201; Pub. L. 85-128, Sec. 1(3), 
Aug. 13, 1957, 71 Stat. 345; Pub. L. 86-341, title I, Sec. 3, Sept. 21, 
1959, 73 Stat. 606; Pub. L. 86-472, ch. VI, Sec. 601(b), May 14, 1960, 
74 Stat. 140; Pub. L. 87-128, title II, Sec. 202(1), Aug. 8, 1961, 75 
Stat. 307; Pub. L. 88-638, Sec. 1(13), (14), Oct. 8, 1964, 78 Stat. 
1037; Pub. L. 89-808, Sec. 2(C), Nov. 11, 1966, 80 Stat. 1535; Pub. L. 
95-88, title II, Sec. 209, Aug. 3, 1977, 91 Stat. 548; Pub. L. 98-473, 
title III, Sec. 305, Oct. 12, 1984, 98 Stat. 2195; Pub. L. 101-624, 
title XV, Sec. 1512, Nov. 28, 1990, 104 Stat. 3638; Pub. L. 104-127, 
title II, Sec. 208, Apr. 4, 1996, 110 Stat. 954.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-127, Sec. 208(1), inserted ``, or in 
a country in the same region,'' after ``in the recipient country''.
    Subsec. (b). Pub. L. 104-127, Sec. 208(2), inserted ``or in 
countries in the same region,'' after ``in recipient countries,'' and 
substituted ``15 percent'' for ``10 percent''.
    Subsec. (c). Pub. L. 104-127, Sec. 208(3), inserted ``or in a 
country in the same region,'' after ``recipient country,''.
    Subsec. (d)(2). Pub. L. 104-127, Sec. 208(4), inserted ``or within a 
country in the same region'' after ``recipient country''.
    1990--Pub. L. 101-624 amended section generally, substituting 
present provisions for provisions relating to the payment of costs and 
charges by the Commodity Credit Corporation for packaging, enrichment, 
preservation, processing, transportation, handling, and other incidental 
charges relating to commodities.
    1984--Pub. L. 98-473 inserted following cl. (4): ``in the case of 
commodities for urgent and extraordinary relief requirements, including 
pre-positioned commodities, transportation costs from designated points 
of entry or ports of entry abroad to storage and distribution sites and 
associated storage and distribution costs;''.
    1977--Pub. L. 95-88 substituted ``transportation from United States 
ports to designated points of entry abroad in the case (1) of landlocked 
countries, (2) where ports cannot be used effectively because of natural 
or other disturbances, (3) where carriers to a specific country are 
unavailable, or (4) where a substantial savings in costs or time can be 
effected by the utilization of points of entry other than ports'' for 
``, or, in the case of landlocked countries, transportation from United 
States ports to designated points of entry abroad''.
    1966--Pub. L. 89-808 reenacted, with linguistic changes, existing 
provisions for payment of costs and charges, included costs of 
acquisition, packaging, enrichment, preservation, fortification, 
processing, handling, other incidents, struck out provisions for 
authorization of appropriations for reimbursement of CCC, limitation on 
amount, and use of funds for purchase of foreign currencies, now covered 
by section 1724 of this title, and deleted other provisions for use of 
agencies, organizations, and facilities in making transfers, now covered 
by section 1722 of this title, and provision for transfer of funds from 
the CCC to such other Federal agency designated by the President for 
payment of ocean freight costs or for purchase of foreign currencies 
under this subchapter.
    1964--Pub. L. 88-638 substituted ``1965''; for ``1961'', ``1966'' 
for ``1964'', and ``$400,000,000'' for ``$300,000,000'', inserted ``or 
donated under said section 1431, or section 1431b or 1697 of this 
title'', provisions authorizing use of funds available under subchapter 
III, not exceeding $7,500,000 annually, to purchase foreign currencies 
accruing under subchapter II in order to meet costs designed to assure 
that commodities available under subchapters I or III are used to carry 
out more effectively the purposes for which such commodities are made 
available or to promote activities to alleviate the causes of the need 
for such assistance, provided that such funds are used to supplement, 
not substitute for, funds normally available for such purposes from 
other non-United States Government sources, and ``or for the purchase of 
foreign currencies'' after ``ocean freight costs''.
    1961--Pub. L. 87-128 substituted authorization provision for period 
beginning January 1, 1961, and ending December 31, 1964, for 
authorization provision beginning January 1, 1960, and ending December 
31, 1961, and made the annual limitation applicable to the amount 
programed rather than to the amount spent.
    1960--Pub. L. 86-472 authorized payment for transportation from 
United States ports to designated points of entry abroad in the case of 
landlocked countries, and permitted the payment of charges for general 
average contributions arising out of the ocean transport of transferred 
commodities.
    1959--Pub. L. 86-341 amended first sentence generally. Prior to 
amendment, first sentence read as follows: ``Not more than $800,000,000 
(including the Corporation's investment in such commodities) shall be 
expended for all such transfers and for other costs authorized by this 
subchapter.''
    1957--Pub. L. 85-128 increased limitation on expenditures from 
$500,000,000 to $800,000,000.
    1956--Act May 28, 1956, increased limitation on expenditures from 
$300,000,000 to $500,000,000, and authorized payment of ocean freight 
charges.


                    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 1977 Amendment

    Amendment by Pub. L. 95-88 effective Oct. 1, 1977, see section 215 
of Pub. L. 95-88, set out as a note under section 1702 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.


                    Effective Date of 1964 Amendment

    Section 1(13) of Pub. L. 88-638 provided that the substitution of 
``1965'' for ``1961'', ``1966'' for ``1964'', and ``$400,000,000'' for 
``$300,000,000'' are not effective until Jan. 1, 1965.


                    Effective Date of 1959 Amendment

    Section 3 of Pub. L. 86-341 provided that the amendment made by that 
section is effective Jan. 1, 1960.
