§ 1489.16 - Contribution rules.

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In ATP generic promotion programs, an ATP Participant shall contribute a total amount in goods, services, and/or cash equal to at least 10 percent of the value of resources to be provided by the CCC for all generic promotion activities proposed to be undertaken by the ATP Participant.

In ATP brand promotion programs, an ATP Participant conducting its own brand promotion that is a U.S. agricultural cooperative or a small-sized brand participant shall contribute at least 50 percent of the total eligible expenditures made on each approved brand promotion.

An ATP Participant must use its own funds and may not use ATP program funds to pay any administrative costs of the ATP Participant's U.S. office(s), including legal fees, except as set forth in this subpart. Where the ATP Participant uses its own funds to pay for administrative costs, such costs may be counted in calculating the amount of contributions the ATP Participant contributes to ATP generic or brand promotion programs.

Eligible contributions:

In calculating the amount of contributions that it will make, and the contributions that the U.S. industry (including expenditures to be made by entities in the applicant's industry or agricultural sector in support of the entities' related promotion activities in the markets covered by the applicant's application) or State agency will make, the ATP applicant may include the costs listed under paragraph (d)(2) of this section if:

Expenditures are necessary and reasonable for accomplishment of an approved activity,

Expenditures are not included as contributions for any other Federal award;

Expenditures are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs.

Subject to paragraph (d)(1) of this section, as well as applicable cost principles (e.g., 2 CFR part 200) to the extent these principles do not directly conflict with the provisions of this subpart, eligible contributions are:

Cash;

Compensation paid to personnel;

The cost of acquiring materials, supplies or services;

The cost of office space;

A reasonable and justifiable proportion of general administrative costs and overhead;

Payments for indemnity and fidelity bond expenses;

The cost of business cards that target a foreign audience;

The cost of subscriptions that are of a technical, economic, or marketing nature and that are relevant to the approved activities of the ATP Participant;

The cost of activities conducted overseas;

Credit card fees;

The cost of any independent evaluation or audit that is not required by the CCC to ensure compliance with program agreement or regulatory requirements;

The cost of giveaways, awards, prizes and gifts;

The cost of product samples;

Fees for participating in U.S. government sponsored or endorsed export promotion activities;

The cost of air and local travel in the United States;

STRE and the cost associated with trade shows, seminars, and entertainment conducted in the United States where the STRE and costs associated with trade shows, seminars, and entertainment have a programmatic purpose and are authorized in the program agreement and/or the approval letter or authorized by prior written approval of the CCC;

Other administrative expenses (e.g., supervisory travel from the U.S. to an overseas office); and

(xviii) The cost of any activity expressly listed as reimbursable in this subpart.

The following are not eligible contributions:

Any portion of salary or compensation of an individual who is the target of an approved promotional activity;

Any expenditure, including that portion of salary and time spent, related to promoting membership in the Participant organization (sometimes referred to in the industry as “backsell”);

Any land costs other than allowable costs for office space;

The cost of refreshments and related equipment provided to office staff;

The cost of insuring articles owned by private individuals;

The cost of any arrangement that has the effect of reducing the selling price of a U.S. agricultural commodity;

The cost of product development, product modifications, or product research, except as described in § 1489.17(c)(22);

Slotting fees or similar sales expenditures;

Membership fees in clubs and social organizations; and

Any expenditure for an activity prior to the CCC's approval of that activity.

The CCC shall determine, at the CCC's discretion, whether any cost not expressly listed in this section may be included by the ATP Participant as an eligible contribution.