1. Export Food Aid Commodities Licensing Agreement Presentation

2. Background/History Why do we need EFAC Licensing Agreement Why do we need EFAC Licensing Agreement Problems/Issues with Commodities for Foreign Food Assistance Programs Problems/Issues with Commodities for Foreign Food Assistance Programs

3. OIG Audit Findings/Recommendations No proper regulatory and operational procedures to take administrative action at non-compliant facilities No proper regulatory and operational procedures to take administrative action at non-compliant facilities Develop USWA licensing agreement for port and transloading facilities Develop USWA licensing agreement for port and transloading facilities

4. United States Warehouse Act/Regulations Authority for USDA to license facilities for storage/handling of agricultural products for the purposes of interstate or foreign commerce Authority for USDA to license facilities for storage/handling of agricultural products for the purposes of interstate or foreign commerce Agricultural products (includes processed products) Agricultural products (includes processed products)

5. Development of USWA Licensing Agreement Federal Register Notice 3/15/11 Federal Register Notice 3/15/11 User Fee schedule published in Federal Register and WA-502 Export Food Aid Commodity Licensing Agreement issued 4/4/2012 User Fee schedule published in Federal Register and WA-502 Export Food Aid Commodity Licensing Agreement issued 4/4/2012

6. Development of USWA Licensing Agreement (Continued) 4/10/12 Notice letter was emailed to all facilities on the current approved list 4/10/12 Notice letter was emailed to all facilities on the current approved list 4/11/12 Notice letter sent to all International Food Aid participants announcing the new licensing requirement 4/11/12 Notice letter sent to all International Food Aid participants announcing the new licensing requirement Facilities must be licensed by 6/15/12 Facilities must be licensed by 6/15/12

7. Licensing Agreement for Export Food Aid Commodities Structured similar to other USWA Licensing Agreements Structured similar to other USWA Licensing Agreements All USWA Licensing Agreements on Commodity Operations Website All USWA Licensing Agreements on Commodity Operations Website Licensing Agreement will apply to Port Warehouses/Transload Facilities Licensing Agreement will apply to Port Warehouses/Transload Facilities

8. Voluntary Voluntary Fee Based Fee Based Specific Commodities Specific Commodities USWA EFAC License

9. Requirement for participation in International Food Assistance Programs Requirement for participation in International Food Assistance Programs Solicitation for Commodity Procurements will include the requirement that port/transload facilities be licensed Solicitation for Commodity Procurements will include the requirement that port/transload facilities be licensed USWA EFAC License

10. Review WA-502 EFAC Licensing Agreement, Fee Schedule and WA-50 Review WA-502 EFAC Licensing Agreement, Fee Schedule and WA-50 Send Completed WA-50 Send Completed WA-50 Articles of Incorporation, By-laws, if a corporation Articles of Incorporation, By-laws, if a corporation Articles of Organization and Operating Agreement if LLC Articles of Organization and Operating Agreement if LLC $100 Application Fee $100 Application Fee Proof of having Control of Facility Proof of having Control of Facility (deed or Lease) (deed or Lease) Steps Required to be Licensed

11. Application Fee $100 Application Fee $100 Inspection Fee $1,000 for 1 to 3 locations Inspection Fee $1,000 for 1 to 3 locations $ 300 for each additional location $ 300 for each additional location Annual User Fee $ 1,500 for 1 to 3 locations Annual User Fee $ 1,500 for 1 to 3 locations $ 300 for each additional location $ 300 for each additional location Fee Guidelines

12. New Application New Application Additions/Changes/Deletions of Space Additions/Changes/Deletions of Space Procedure/Process

13. Port Terminal Examination Port Terminal Examination Transload Facility Examination Transload Facility Examination Checklists Checklists Examination Guidelines

14. Original Original Subsequent Subsequent Special Special Types of Examinations

15. Facility Infrastructure Facility Infrastructure Commodity Storage Conditions Commodity Storage Conditions Pest Control Pest Control Security Security Port Terminal Checklist

16. Condition and Suitability of Warehouse Structure/Premises Condition and Suitability of Warehouse Structure/Premises Pest Control Pest Control Security Security Transload Facility Checklist

17. Report/Corrective Action Requests Report/Corrective Action Requests Completion of Examination

18. Questions/Discussion ? ? ? ? ?