Regulations Governing the Financing of Commercial Sales of Agricultural Commodities

SUMMARY: The Commodity Credit Corporation (CCC) proposes to revise the

regulations applicable to the financing of the sale and exportation of

agricultural commodities pursuant to title I of the Agricultural Trade

Development and Assistance Act of 1954, as amended (Pub. L. 480).

The purpose of these changes is to simplify the purchasing

procedures and shorten the regulations, keep the costs of the Pub. L.

480, title I program as low as possible, reflect the provisions of the

Federal Agricultural Improvement and Reform Act of 1996 (``FAIR Act of

1996''), and reduce the public reporting burden.

DATES: Written comments in duplicate should be submitted on or before

March 28, 1997.

ADDRESSES: Comments should be sent to Christopher E. Goldthwait,

General Sales Manager, Foreign Agricultural Service, U.S. Department of

Agriculture, Room 5071 South Building, Stop 1001, 1400 Independence

Ave., S.W., Washington, D.C. 20250-1001.

FOR FURTHER INFORMATION CONTACT: Connie B. Delaplane, Director, P.L.

480 Operations Division, Export Credits, Foreign Agricultural Service,

Room 4549 South Building, Stop 1033, U.S. Department of Agriculture,

1400 Independence Ave., S.W., Washington, D.C. 20250-1033. Telephone:

(202) 720-3664.

SUPPLEMENTARY INFORMATION: This proposed rule is issued in conformance

with Executive Order 12866. It has been determined significant for the

purposes of E.O. 12866 and, therefore, has been reviewed by the Office

of Management and Budget (OMB).

Regulatory Flexibility Act

This proposed rule has been reviewed with regard to the

requirements of the Regulatory Flexibility Act. The Vice President,

CCC, who is the General Sales Manager, has certified that this rule

will not have a significant economic impact on a substantial number of

small entities. The proposed rule would eliminate several existing

program requirements which should make it easier for firms to

participate, including small businesses, and may result in some

suppliers receiving payment more quickly. A copy of this proposed rule

has been submitted to the General Counsel, Small Business

Administration.

Executive Order 12372

This program is not subject to the provisions of Executive Order

12372 which requires intergovernmental consultation with state and

local officials. See the Notice related to 7 CFR Part 3015, Subpart V,

published at 48 FR 29115 (June 24, 1983).

Paperwork Reduction Act

This proposed rule revises the Pub. L. 480, title I financing

regulations. CCC has submitted the information collection requirements

in this proposed rule to the Office of Management and Budget (OMB) for

approval under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

Title: Regulations--Financing Commercial Sales of Agricultural

Commodities Under Title I, Pub. L. 480.

OMB Control Number: 0551-0005.

Expiration Date of Approval: Three years from OMB approval.

Type of Request: Revision.

Abstract: The purpose of the changes in this proposed rule is to

simplify the purchasing procedures and shorten the regulations, keep

the costs of the Pub. L. 480, title I program as low as possible,

reflect the provisions of the ``FAIR Act of 1996'', and reduce the

public reporting burden. The proposed rule would eliminate the

requirement that suppliers report to USDA payments to representatives

of importing countries and the requirement that prospective commodity

suppliers submit information to the P.L. 480 Operations Division in

order to participate. Prospective suppliers that have been determined

to be eligible for participation in the GSM-102 or GSM-103 export

credit guarantee programs could participate in title I sales.

Prospective suppliers that are not yet eligible for GSM programs would

have to submit information to GSM; this information is not as extensive

as that presently required for becoming an eligible supplier under

title I. CCC would require shipping agents to provide complete

information on the firm and its activities only once per fiscal year

instead of doing so each time they are nominated by a title I importer.

The recordkeeping requirement would be retained. Successful

commodity suppliers would still be required to report to USDA the

details of sales made under the program for price review and to submit

to USDA, for approval, information on any amendments to the sales.

Estimate of Burden: CCC estimates the public reporting burden to be

1 hour for new suppliers that need to develop the information necessary

for eligibility under GSM programs; 1\1/4\ hours for shipping agents to

prepare a complete package of information required by the regulations

each fiscal year and \1/4\ hour to prepare each subsequent submission

updating information as changes occur; and \1/4\ hour for commodity

suppliers to prepare telephonic notices of sale and requests for

approval of sale amendments.

Respondents: Commodity suppliers that are interested in becoming

eligible to participate in title I sales; shipping agents that have

been selected by importers to help them purchase Title I commodities

and arrange ocean transportation; and commodity suppliers that have

been awarded sales under the program.

Estimated Number of Respondents: Eight new commodity suppliers; 10

shipping agents; and 15 successful commodity suppliers.

Estimated Number of Responses per Respondent: One for each new

commodity supplier; between 1 and 4 for each shipping agent; and,

between 1 and 25 for each successful commodity supplier.

Estimated Total Annual Burden on Respondents: Including

recordkeeping requirements, 455 burden hours.

CCC requests comments regarding: (a) Whether the collection of

information is necessary for the proper performance of

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the functions of the agency, including whether the information will

have practical utility; (b) the accuracy of the agency's estimate of

burden including the validity of the methodology and assumptions used;

(c) ways to enhance the quality, utility, and clarity of the

information to be collected; (d) ways to minimize the burden of the

collection of information on those who are to respond, including

through the use of appropriate automated, electronic, mechanical, or

other technological collection techniques or other forms of information

technology.

USDA will accept comments on this information collection at: Desk

Officer for Agriculture, Office of Information and Regulatory Affairs,

Office of Management and Budget, Washington, D.C. 20503, and to Connie

B. Delaplane, Director, Pub. L. 480 Operations Division, Export

Credits, Foreign Agricultural Service, Room 4549 South Building, Stop

1033, U.S. Department of Agriculture, 1400 Independence Avenue, SW,

Washington, DC 20250-1033. USDA will incorporate all comments as part

of the public record.

The Paperwork Reduction Act requires OMB to make a decision

concerning the collection(s) of information contained in this proposed

rule between 30 and 60 days after publication of this document in the

Federal Register. Therefore, a comment to OMB is best assured of having

its full effect if OMB receives it within 30 days of publication. This

does not affect the deadline for the public to comment to USDA on the

proposed rule. CCC submitted the information collection requirements to

OMB totaling 455 burden hours.

Executive Order 12988

This proposed rule has been reviewed under Executive Order 12988,

Civil Justice Reform. The proposed rule would have preemptive effect

with respect to any state or local laws, regulations, or policies which

conflict with such provisions or which otherwise impede their full

implementation. The final rule would not have retroactive effect. The

rule does not require that administrative remedies be exhausted before

suit may be filed.

Background

Title I of the Agricultural Trade Development and Assistance Act of

1954, as amended (Pub. L. 480) authorizes CCC to finance the sale and

exportation of agricultural commodities on concessional credit terms. 7

U.S.C. 1701 et seq. On September 13, 1995, the Foreign Agricultural

Service (FAS) published an Advance Notice of Proposed Rulemaking (60 FR

47495) requesting comments on how to streamline and simplify the

purchasing and shipment procedures under the Public Law 480, title I

program. CCC considered these comments in drafting the proposed rule,

and welcomes further input regarding the issues raised in the ANPRM at

this stage of rulemaking procedure. The key comments received are

discussed below, except those that were outside the scope of the ANPRM

and those which have already been implemented by final rules published

on December 7, 1995 (60 FR 62072) and April 23, 1996 (61 FR 17823). A

copy of the ``Benefit-Cost Assessment'' prepared in connection with

this proposed rule can be obtained from Connie B. Delaplane. See ``For

Further Information Contact.''

Discussion of Comments

Purchase Authorization

After CCC and the participant have signed a title I agreement, CCC

issues a purchase authorization (``PA'') which establishes general

specifications for the commodity to be purchased, sets the contracting

and delivery periods, and establishes conditions for CCC's financing of

the commodity and any authorized ocean transportation costs. The

participant issues, upon CCC approval, public Invitations for Bids

(``IFB's'') for commodities and ocean transportation. These IFB's

contain the importer's requirements including precise commodity

specifications, delivery dates, and payment documents. Subsequently the

importer and suppliers of commodities and ocean transportation enter

into contracts based upon offers received in response to these IFB's.

The ANPRM asked for comments on whether the PA could be eliminated,

with the relevant portions being incorporated into the financing

regulations or the IFB, as appropriate. Most comments stated there was

no urgent need for the PA, agreeing that the PA terms could be

incorporated in the title I agreement, the buyer's IFB or the

regulations. One comment supported retaining the PA, suggesting that

the PA terms were not appropriate for either the regulations or the

IFB.

The proposed rule would retain the PA. By doing so CCC could delete

from the regulations Appendix A (Contracting Requirements) and Appendix

B (Documentary Requirements). CCC's up-to-date contracting and

documentary requirements for a commodity would appear in the PA. (The

regulations specify that the PA may contain requirements in addition

to, or in lieu of, the regulations.) Through the PA we could quickly

update CCC's program requirements, if needed, and make that information

widely available. If the PA did not exist, it would be necessary to

make such changes by amending the regulations or the title I agreement,

which could delay purchasing and shipment of the commodities. If the

buyer were required to include such information in the IFB's, those

documents would be longer and more complex.

Some respondents felt that the PA issuance procedure could cause

delays in implementing the program. We would like to receive specific

examples of such delays to help us improve the process. A delay in PA

issuance may simply reflect the fact that the participant is not ready

to purchase.

Letters of Credit

After the participant enters into commodity and ocean freight

contracts, the existing regulations provide that the importer must

cause a separate letter of credit to be opened for the commodity

supplier, and for the supplier of ocean transportation when CCC is

financing any part of the ocean transportation. CCC also issues a

Letter of Commitment to the U.S. bank that has issued, confirmed or

advised the letter of credit. The supplier receives payment from the

bank upon presentation of required documentation. CCC will reimburse

the bank, pursuant to this Letter of Commitment, for payments made

under the letter of credit.

The ANPRM asked for comments on an alternative procedure under

which CCC would simply pay the suppliers directly for the commodity and

for ocean freight costs which are financed by CCC. The participant

would not open a letter of credit for these amounts, and there would be

no need for CCC to issue any Letters of Commitment.

Most comments supported direct payment by CCC, noting that the bank

charges associated with letters of credit ranged from 1-2% of the value

of the letter of credit. Since the buyers were required to bear these

costs, the benefit of the title I program to the recipient was

lessened. Under the proposed rule, title I recipients would save about

$2.5-$5 million each year in banking costs, based on an estimated $250

million per year which would be paid directly to suppliers by CCC

instead of through letters of credit. U.S. banks would bear some costs

from this change, based on the loss of these fees, and reduced

opportunities to develop business relationships with food aid

recipients.

[[Page 3812]]

The change is proposed based on the assessment that the cost to U.S.

banks would be outweighed by the significant benefits to food aid

recipients, given the relatively small size of these letter of credit

fees relative to total bank income, the static or declining food aid

budget, and the length of time needed for recipients to develop into

commercial opportunities for U.S. banks. There would still be

opportunities for banks to issue letters of credit for a portion of the

ocean freight costs, as discussed in detail below. Based on the fiscal

year 1996 title I program, such letters of credit might be opened for

about $16 million, generating banking fees of $160,000-$320,000.

Commodity suppliers have generally been unwilling to load vessels

without a letter of credit to secure payment. Such delayed loading can

be costly to the recipient, which may owe ``carrying charges'' to the

commodity supplier and ``detention'' to the supplier of ocean

transportation. These costs are not financed by CCC and they can be

significant; for example, one day of ``detention'' for a U.S.-flag

vessel can cost the recipient as much as $25,000.

Finally, some title I recipient countries do not have well

established banking systems through which to open letters of credit.

As a result, the proposed rule would adopt the procedure for direct

payment by CCC for all commodity and freight costs which are financed

by CCC (see Sec. 17.9.) In connection with this change, the proposed

rule would also prohibit certain payments which are permitted under

existing regulations, but which cannot be financed by CCC. This

includes consular fees for legalization of documents, and total ocean

transportation brokerage commissions in excess of 2\1/2\ percent of the

freight. Under existing regulations, the supplier is required to show

on the invoice any amounts which are not eligible for financing by CCC.

The bank may then pay the supplier the total invoice amount under the

importer's letter of credit, and CCC would deduct the ineligible amount

from its reimbursement to the bank under the Letter of Commitment. With

the proposed direct payment procedure, there is no simple mechanism to

allow a supplier to be paid for such costs while protecting CCC from

ultimately bearing the costs. It would not be equitable to prohibit a

supplier from recouping these costs as part of the supplier's sales

price and such a rule may discourage firms from showing on the invoice

any amounts ineligible for CCC financing. Consequently, the proposed

rule would prohibit payment of these costs; however, suggestions are

requested regarding other ways to address the issue of costs which are

ineligible for CCC financing.

Several comments expressed concern about how quickly CCC would pay

suppliers, saying that direct payment would not be beneficial if it

took longer than payment by a bank under a letter of credit. CCC plans

to pay suppliers as promptly as a bank does, upon receipt of the

documentation required by the importer and by CCC.

This proposal is not expected to significantly increase USDA's

workload, although there will be a slight increase in burden for the

Farm Service Agency (``FSA''), which would be responsible for making

the payments to suppliers.

One comment raised the issue of potential financial exposure on the

part of CCC for financing a product that did not meet specifications,

for example. CCC would examine each document with reasonable care to

ascertain that it appears on its face to be in accord with documentary

requirements specified in the regulations, the PA, and the buyer's own

IFB or contract. Agreements between CCC and the participants would

provide that CCC would be liable only for breaching this standard of

review.

Comments indicated some confusion regarding payment of ocean

transportation costs. CCC would not require the participant to open a

letter of credit for shipments for which the participant paid the

entire freight costs, or in the rare instances when CCC financed 100%

of the freight costs. However, when CCC financed a portion of the

freight costs on a shipment and the participant paid the balance, the

participant would be required to open a letter of credit for its share

of the freight costs. For example, when commodities are shipped on a

U.S.-flag vessel and CCC finances only the ocean freight differential,

the supplier would collect the ocean freight differential from CCC and

the balance from a U.S. bank under the participant's letter of credit.

The regulations would require the participant to open this partial

letter of credit in order to provide the supplier of ocean

transportation a high level of confidence that the participant's

portion of the freight would be paid in accordance with the contract.

This should keep freight costs down and encourage competition.

CCC would not pay any commodity or freight costs which were not to

be financed by CCC, which is consistent with the current operation of

the program.

Cost and Freight

The ANPRM asked for comments on whether CCC should finance

commodity contracts on a cost and freight (C&F) basis, or a cost,

insurance and freight (CIF) basis, instead of requiring separate

contracts for the commodity and the ocean transportation. Under such

contracts the commodity supplier would be responsible for securing

ocean transportation.

Respondents were concerned that such contracts would keep smaller

commodity suppliers, which do not own or control vessels, from offering

competitively. They also noted that it would be more difficult to

enforce cargo preference requirements for use of U.S.-flag vessels with

C&F or CIF sales. Several comments stated that contracting under these

terms would blur the distinction between the commodity costs and the

freight costs, complicating both commodity price review and the

determination of ``fair and reasonable'' U.S.-flag freight rates by the

Maritime Administration, Department of Transportation. The proposed

rule retains the option for such contracts; however, permitting such

contracts would be a matter of agency policy, as at present.

Other Comments

The proposed rule contains several provisions based on other

comments submitted in response to the ANPRM. For example, shipping

agents (firms helping the buyers arrange the purchase and shipment of

Title I commodities) would be required to provide complete information

on the firm and its activities only once per fiscal year. At present,

they must submit the information each time a firm is nominated by a

recipient. The firm would certify, in conjunction with any subsequent

nominations as shipping agent during the fiscal year, that the

information initially submitted was still current, or would specify any

changes. This proposal would reduce the reporting burden on shipping

agents and also save a small amount of FAS staff time.

Another comment recommended that the Form FAS-359 (``Declaration of

Sale'') and the Form CCC-105 (``Request for Vessel Approval'') be

eliminated. We believe that it is necessary to retain a written price

approval document, a purpose served by the existing ``Declaration of

Sale'' form. This key document insures that all parties--the commodity

supplier, FAS, and the entity making payment--clearly understand the

terms of the sale as approved for financing by CCC. The document

includes the unit price,

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delivery period, and commodity specifications.

The Form CCC-105, submitted to FAS by the charterer, is the formal

written notification from the importer regarding the ocean freight

contract and contains the information on which the written ``Advice of

Vessel Approval'' is based (Form CCC-106). The latter form is a

required payment document, which shows the amount of freight to be

financed by CCC, along with the main contract terms. If the Form CCC-

105 were eliminated, the CCC-106 would be more likely to contain errors

and thus delay payment to the supplier.

Other Key Changes

The proposed rule would contain a definition of ``private entity,''

and would amend the definition of ``participant'' to cover both private

entities and foreign countries. This reflects the FAIR Act of 1996

which permitted title I agreements to be signed with private entities.

(References to ``private trade entities,'' no longer included under the

legislation, have been deleted.) The proposed rule would require that,

in order to participate, a private entity would need to have a legal

presence in the United States.

The proposed rule would eliminate the requirement in existing

Sec. 17.7 that prospective commodity suppliers must submit information

to the P.L. 480 Operations Division, FAS, including a current financial

statement, to be determined eligible to participate. Any supplier

eligible under the GSM-102 or GSM-103 programs could participate.

Financial information on the firm and experience as an exporter are not

required for eligibility under the GSM-102 and GSM-103 programs, which

are fully commercial. Comments are requested as to whether the bid and

performance bond requirements in the importer's IFB would be sufficient

to insure performance by a supplier.

Approximately ten firms per year wish to become eligible commodity

suppliers under title I. Two or three of those firms are already

eligible under the GSM programs, and would have no additional reporting

burden to be eligible under title I. The remaining seven or eight firms

would require only about an hour to develop the information needed for

eligibility under the GSM programs instead of the three hours currently

estimated for title I. FAS would also save a small amount of staff time

by deleting this separate eligibility requirement for title I

suppliers.

The proposed rule would also require that cotton suppliers report

sales to FAS, instead of to the Kansas City Commodity Office, Farm

Service Agency. FAS would become responsible for price review and for

vessel approval for cotton shipments, as it is now for all other

commodities purchased under title I.

The proposed rule would eliminate the requirement in existing

Sec. 17.12 that suppliers report to USDA any payments made to

representatives of the importer or importing country. The underlying

legislation was repealed in December 1995 by the Federal Reports

Elimination and Sunset Act of 1995. CCC will not finance such payments,

however, except for ocean transportation brokerage commissions which do

not exceed 2-\1/2\% of the freight.

The ocean transportation provisions in Sec. 17.8(b)(2) of the

proposed rule would not contain the prohibition in existing

Sec. 17.14(b)(2) against ``clarification or submission of additional

information'' under competitive freight IFB's. This is not intended to

reflect a substantive policy change. Only freight offers which were

responsive to the terms of the IFB as of the date and time for receipt

of offers could be considered, as at present. No information or

clarification submitted after that date and time could be used to make

the offer responsive. The prohibition against negotiation also remains

in the regulations. This change would simply acknowledge that it is

occasionally necessary to seek factual information after an offer has

been submitted, such as the maximum tonnage which can be loaded at a

certain port, given existing draft conditions and stowage factors for

the commodity in question.

The proposed rule does not contain the requirement in existing

Sec. 17.18(c)(7) that a ``transshipment certification'' be placed on

the commodity invoice in certain circumstances. The Maritime

Administration of the U.S. Department of Transportation published a

final rule on May 17, 1996 (61 FR 24895) which amended the definition

of ``available'' commercial U.S.-flag service for shipments during the

1996-2000 Great Lakes shipping seasons. This change made the

transshipment certification unnecessary. (Purchase authorizations for

affected commodities already exempt exporters from this requirement.)

The proposed rule would not provide for the obsolete ``letter of

conditional reimbursement'' procedure (existing Sec. 17.4(h)), nor for

the ``reimbursement method of financing,'' (existing Sec. 17.16) which

would no longer be necessary with direct payment to suppliers by CCC.

List of Subjects in 7 CFR Part 17

Agricultural commodities, Exports, Finance, Maritime carriers.

Accordingly, it is proposed to revise Part 17 of 7 CFR as follows:

PART 17--SALES OF AGRICULTURAL COMMODITIES MADE AVAILABLE UNDER

TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF

1954, AS AMENDED

Subpart A--Regulations Governing the Financing of Commercial Sales

of Agricultural Commodities

Sec.

17.1 General.

17.2 Definition of terms.

17.3 Purchase authorizations.

17.4 Agents of the participant or importer.

17.5 Contracts between commodity suppliers and importers.

17.6 Discounts, fees, commissions and payments.

17.7 Notice of sale procedures.

17.8 Ocean transportation.

17.9 CCC payment to suppliers.

17.10 Refunds and insurance.

17.11 Recordkeeping and access to records.

Authority: 7 U.S.C. 1701-1704, 1731-1736b, 1736f, 5676; E.O.

12220, 45 FR 44245, 3 CFR, 1980 Comp., p. 263.

Subpart A--Regulations Governing the Financing of Commercial Sales

of Agricultural Commodities

Sec. 17.1 General.

(a) What this subpart covers. This subpart contains the regulations

governing the financing of the sale and exportation of agricultural

commodities by the Commodity Credit Corporation (CCC), through private

trade channels to the maximum extent practicable, under the authority

of Title I of the Agricultural Trade Development and Assistance Act of

1954, as amended (hereinafter called ``the Act'').

(b) Agricultural commodities agreements. (1) Under the Act, the

Government of the United States enters into Agricultural Commodities

Agreements with governments of foreign countries or with private

entities. These agreements cover financing of the sale and exportation

of agricultural commodities, including certain ocean transportation

costs.

(2) Agricultural Commodities Agreements may provide that a

participant will repay CCC for the financing extended by CCC either in

dollars or in local currencies.

(c) Purchase authorizations. This subpart covers, among other

things, the issuance by the General Sales Manager of purchase

authorizations which authorize the participant to

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(1) Purchase agricultural commodities and

(2) Procure ocean transportation therefor.

(d) Financing. For amounts to be financed by CCC, CCC will pay the

supplier of commodity or of ocean transportation upon receipt of the

documents specified in the subpart, the purchase authorization and the

IFB. The cost of ocean freight or ocean freight differential will be

financed by CCC only when specifically provided for in the purchase

authorization.

(e) Where information is available. General information about

operations under this subpart is available from the Director, Public

Law 480 Operations Division, Foreign Agricultural Service, U.S.

Department of Agriculture, Washington, D.C. 20250-1033. Information

about financing operations under this subpart, including forms

prescribed for use thereunder, is available from the Controller,

Commodity Credit Corporation, U.S. Department of Agriculture, P.O. Box

2415, Washington, D.C. 20013-2415.

Sec. 17.2 Definition of terms.

Terms used in the regulations in this subpart are defined or

identified as follows, subject to amplification in subsequent sections:

Affiliate and associated company--any legal entity which owns or

controls, or is owned or controlled by, another legal entity. For a

corporation, ownership of the voting stock is the controlling

criterion. A legal entity is considered to own or control a second

legal entity if--

(1) The legal entity owns an interest of 50 percent or more in the

second legal entity, or

(2) The legal entity and one or more other legal entities, in which

it owns an interest of 50 percent or more, together own an interest of

50 percent or more in the second legal entity, or

(3) The legal entity owns an interest of 50 percent or more in

another legal entity which in turn owns an interest of 50 percent or

more in the second legal entity.

CCC--the Commodity Credit Corporation, U.S. Department of

Agriculture.

Commodity--an agricultural commodity produced in the United States,

or product thereof produced in the United States.

Controller--the Controller, Commodity Credit Corporation, or the

Controller's designee.

Copy--a photocopy or other type of copy of an original document

showing all data shown on the original, including signature or the name

of the person signing the original or, if the signature or name is not

shown on the copy, a statement that the original was signed.

Delivery--the transfer to or for the account of an importer of

custody and right of possession of the commodity at U.S. ports or

Canadian transshipment points in accordance with the delivery terms of

the contract and purchase authorization. For purposes of financing,

delivery is deemed to occur as of the on-board date shown on the ocean

bill of lading.

Destination country--the foreign country to which the commodity is

exported.

Director--the Director, Public Law 480 Operations Division, Foreign

Agricultural Service.

Expediting services--services provided to the vessel owner at the

discharge port in order to facilitate the discharge and sailing of the

vessel; this may include assisting with paperwork, obtaining permits

and inspections, supervision and consultation.

FAS--the Foreign Agricultural Service, U.S. Department of

Agriculture.

FSA--the Farm Service Agency, U.S. Department of Agriculture.

FSA Office--the office designated in the purchase authorization to

administer this financing operation on behalf of CCC.

Finance--To expend CCC funds, whether or not the participant is

required to repay the funds to CCC. For example, this subpart refers to

CCC ``financing'' both the ocean freight differential, which the

participant does not repay, and the commodity cost, which the

participant does repay.

Form CCC-106--the form entitled ``Advice of Vessel Approval.''

Form CCC-329--the signed original of the form entitled ``Supplier's

Certificate.''

General Sales Manager and GSM--the General Sales Manager, FAS, or

the General Sales Manager's designee.

Importer--the person that contracts with the supplier for the

importation of the commodity. The importer may be the participant or

any person to which a participant has issued a subauthorization.

Importing country--any nation with which an agreement has been

signed under the Act.

Invitation for bids and IFB--a publicly advertised request for

offers.

Legal entity includes, but is not limited to, an individual (except

that an individual and his or her spouse and their minor children are

considered as one legal entity), partnership, association, company,

corporation and trust.

Letter of credit--an irrevocable commercial letter of credit

issued, confirmed, or advised by a banking institution in the United

States and payable in U.S. dollars.

Local currency and foreign currency--interchangeable terms; the

currency of the importing or destination country.

Notice of arrival--a written notice in accordance with Sec. 17.8(g)

stating that the vessel has arrived at the first port of discharge.

Ocean bill of lading--

(1) In the case of cargo carried on a vessel other than LASH

barges: An ``on-board'' bill of lading, or a bill of lading with an

``on-board'' endorsement, which is dated and signed or initialed on

behalf of the carrier, or

(2) In the case of cargo carried in a LASH barge:

(i) For the purpose of financing commodity price, an ``on-board''

bill of lading showing the date the commodity was loaded on board

barges, which is dated and signed or initialed on behalf of the

carrier, or a bill of lading or a LASH barge bill of lading with an

``on-board barge'' endorsement which is dated and signed or initialed

on behalf of the carrier.

(ii) For the purpose of financing ocean freight or ocean freight

differential, a bill of lading which is dated and signed or initialed

on behalf of the carrier indicating that the barge containing the cargo

was placed aboard the vessel named in the Form CCC-106 not later than

eight running days after the last LASH barge loading date (contract

layday) specified in the Form CCC-106. This may be either an ``on

board'' bill of lading or a bill of lading or a LASH barge bill of

lading with an ``on-board ocean vessel'' endorsement.

(3) Documentary requirements for a copy of an ``ocean bill of

lading'' refer to a non-negotiable copy thereof.

Ocean freight contract--a charter party or liner booking note.

Ocean transportation--interchangeable with the term ``ocean

freight''.

Ocean transportation brokerage--services provided by shipping

agents related to their engagement to arrange ocean transportation and

services provided by ships brokers related to their engagement to

arrange employment of vessels.

Ocean transportation-related services--furnishing the following

services: lightening, stevedoring, and bagging (whether these services

are performed at load or discharge), and inland transportation, i.e.,

transportation from the discharge port to the designated inland point

of entry in the destination country, if the discharge

[[Page 3815]]

port is not located in the destination country.

Participant--the collective term used to denote the importing

country or the private entity with which an agreement has been

negotiated under the Act.

Person--an individual or other legal entity.

Private entity--the nongovernmental legal entity with which an

agreement has been signed under the Act. A foreign private entity must

maintain a bona fide business office in the United States and have a

person, principal, or agent on whom service of judicial process may be

had in the United States.

Purchase authorization--Form FAS-480, ``Authorization to Purchase

Agricultural Commodities,'' issued to a participant under this subpart.

Purchasing agent--any person engaged by a participant to procure

agricultural commodities.

Secretary--the Secretary of Agriculture of the United States, or

the Secretary's designee.

Selling agent--a representative for the supplier of the commodity,

who is not employed by or otherwise connected with the importer or the

participant.

Shipping agent--any person engaged by a participant to arrange

ocean transportation.

Ships broker--any person engaged by a supplier of ocean

transportation to arrange employment of vessels.

Supplier--any person who sells a commodity to an importer under the

terms of a purchase authorization, or who sells ocean transportation to

an importer or supplier of the commodity under the terms of a purchase

authorization.

United States--the 50 States, the District of Columbia, and Puerto

Rico.

USDA--the U.S. Department of Agriculture; includes all or any of

the agencies mentioned in this section.

Sec. 17.3 Purchase authorizations.

(a) Issuance. After an agreement is signed, the GSM will issue a

purchase authorization to the participant for each commodity included

in the agreement.

(b) Contents. Each purchase authorization includes the following

information:

(1) The commodity to be purchased and specifications, approximate

quantity and maximum dollar amount authorized;

(2) Contracting requirements;

(3) The contracting period, during which suppliers and importers

must enter into contracts; and the delivery period, during which the

commodity must be delivered;

(4) The terms of delivery to the importer;

(5) Documentation required for CCC financing in addition to or in

lieu of the documentation specified in Sec. 17.9;

(6) Provisions relating to payment to CCC, if applicable;

(7) The address of the FSA office administering the financing

operation on behalf of CCC;

(8) The method of financing provided under the Agricultural

Commodities Agreement;

(9) Any provisions relating to financing by CCC in addition to or

in lieu of those specified in this subpart;

(10) Authorization to procure ocean transportation, and provisions

relating to the financing of ocean freight or ocean freight

differential, as applicable;

(11) Any other provisions considered necessary by the General Sales

Manager.

(c) Applicability of this subpart. In addition to the provisions of

a particular purchase authorization, each purchase authorization,

unless otherwise provided, is subject to the provisions of this subpart

to the same extent as if the provisions were fully set forth in the

purchase authorization.

(d) Modification or revocation. The General Sales Manager reserves

the right at any time for any reason or cause whatsoever to supplement,

modify or revoke any purchase authorization, including the termination

of deliveries, if it is determined to be in the interest of the U.S.

Government. CCC shall reimburse suppliers who would otherwise be

entitled to be financed by CCC for costs which were incurred as a

result of such action by the GSM in connection with firm sales or

shipping contracts, and which were not otherwise recovered by the

supplier after a reasonable effort to minimize such costs: Provided,

however, That such reimbursement shall not be made to a supplier if the

GSM determines that the GSM's action was taken because the supplier

failed to comply with the requirements of the regulations in this

subpart or the applicable purchase authorization; Provided further,

That reimbursement to suppliers of ocean transportation shall not

exceed the ocean freight differential when the purchase authorization

provides only for financing the differential.

(e) Subauthorizations. The participant may issue subauthorizations

to importers consistent with the terms of the applicable purchase

authorization. The participant, in subauthorizing, shall specify to

importers all the provisions of the applicable purchase authorization

which apply to the subauthorization.

(f) Cotton textiles. (1) Except as provided in paragraph (f)(2) of

this section, financing of textiles under this subpart is limited to

cotton yarns and fabrics processed up to and including the dyed and

printed state, and preshrinking. Any processing of such yarns and

fabrics beyond this stage will be at the expense of the participant.

(2) Purchase authorizations may permit cotton textiles processed

beyond the stage described in paragraph (f)(1) of this section to be

purchased, but the maximum financing by CCC is limited to the

equivalent value of the cotton yarns and fabrics described in paragraph

(f)(1) of this section, contained in the textiles, plus eligible ocean

transportation costs.

(3) Financing is available only for textiles manufactured entirely

of U.S. cotton in the United States.

Sec. 17.4 Agents of the participant or importer.

(a) General. (1) A participant or importer is not required to use a

purchasing agent or shipping agent, or employ the services of any other

agent, broker, consultant, or other representative (hereafter

``agent'') in connection with arranging the purchase of agricultural

commodities under title I of the Act and arranging ocean transportation

for such commodities. However, if an agent is used, the participant

shall submit a written nomination of the agent to the Deputy

Administrator, Export Credits, along with a copy of the proposed

agreement between the participant or importer and such agent. The

written nomination shall also specify the period of time to be covered

by the nomination. A person may not act as agent for a participant or

importer unless the Deputy Administrator, Export Credits, has provided

a written statement that the nomination is accepted in accordance with

the provisions of this section.

(2) See Sec. 17.6(c) regarding commissions, fees, or other

compensation of any kind to agents of a participant or importer.

(3) A freight agent employed by the Agency for International

Development under titles II and III of the Act is not eligible to act

as an agent for the participant or importer during the period of such

employment. A subcontractor of such freight agent is not eligible to

act as an agent for the participant or importer during the period of

its subcontract.

(b) Affiliate defined. For purposes of this section, the term

affiliate has the meaning provided in Sec. 17.2 and, in addition,

persons will also be considered to be affiliates if any of the

following conditions are met:

(1) There are any common officers or directors.

[[Page 3816]]

(2) There is any investment by eligible commodity suppliers,

selling agents, or persons engaged in furnishing ocean transportation

or ocean transportation-related services for commodities provided under

any title of the Act, section 416(b) of the Agricultural Act of 1949,

or the Food for Progress Act of 1985, whether or not any part of the

ocean transportation is financed by the U.S. Government, or by agents

of such persons, or their officers or directors, in the agent of the

participant or importer.

(3) There is any investment by the agent of the participant or

importer, or its officers or directors, in approved commodity

suppliers; selling agents; or persons engaged in furnishing ocean

transportation or ocean transportation-related services for commodities

provided under any title of the Act, section 416(b) of the Agricultural

Act of 1949, or the Food for Progress Act of 1985, whether or not any

part of the ocean transportation is financed by the U.S. Government, or

in agents of such persons. These conditions include those cases in

which investment has been concealed by the utilization of any scheme or

device to circumvent the purposes of this section but does not include

investment in any mutual fund.

(c) Information to be furnished. A person nominated to act as an

agent of the participant or importer, and any independent contractor

that may be hired by such person to perform functions of a shipping

agent, shall furnish to the Deputy Administrator, Export Credits, the

following information or documentation as may be applicable:

(1) The names of all incorporators;

(2) The names and titles of all officers and directors;

(3) The names of all affiliates, including the names and titles of

all officers and directors of each affiliate, and a description of the

type of business in which the affiliate is engaged;

(4) The names and proportionate share interest of all stockholders;

(5) If beneficial interest in stock is held by other than the named

shareholders, the names of the holders of the beneficial interest and

the proportionate share of each;

(6) The amount of the subscribed capital;

(7) For USDA acceptance of a nomination covering services provided

during each U.S. fiscal year (October 1--September 30), a written

statement signed by such person:

(i) Certifying that, during the U.S. fiscal year covered by USDA's

acceptance of the nomination, the person has not engaged in, and will

not engage in, supplying commodities under any title of the Act or the

Food for Progress Act of 1985 or furnishing ocean transportation or

ocean transportation-related services for commodities provided under

any title of the Act, section 416(b) of the Agricultural Act of 1949,

or the Food for Progress Act of 1985, whether any part of the ocean

transportation is financed by the U.S. Government; and that the person

has not served and will not serve as an agent of firms engaged in

providing such commodities, ocean transportation and ocean

transportation-related services;

(ii) Certifying that, for ocean transportation brokerage services

provided during the U.S. fiscal year covered by USDA's acceptance of

the nomination, the person has not shared and will not share freight

commissions with the participant, the importer, or any agent of the

participant or the importer, whether CCC finances any part of the ocean

freight. CCC will consider as sharing a commission a situation where

the agent forgoes part or all of a commission and the supplier of ocean

transportation pays a commission directly to the participant, the

importer, or any other person on behalf of the participant or the

importer; and

(iii) Undertaking that, during the U.S. fiscal year covered by

USDA's acceptance of the nomination, affiliates of such person have not

engaged in and will not engage in the activities or actions prohibited

in this paragraph (c)(7).

(8) A certification that neither the person nor any affiliates has

arranged to give or receive any payment, kickback, or illegal benefit

in connection with the person's selection as agent of the participant

or importer.

(d) USDA acceptance. (1) USDA will consider accepting the

nomination of a person to act as an agent of the participant or

importer when the documents required to be submitted by this section

are received by the Deputy Administrator, Export Credits.

(2) USDA's acceptance of such nomination shall remain in effect for

the period of time requested by the participant or such shorter period

as the Deputy Administrator, Export Credits, may determine. USDA will

withdraw such acceptance if the agent of the participant or importer,

or any of the affiliates of such agent, violates the certifications or

undertakings made pursuant to paragraphs (c) (7) and (8) of this

section.

(3) A person is required to submit the information and

documentation required by paragraph (c) of this section to support the

person's first nomination to act as an agent of any participant or

importer for each fiscal year. For subsequent nominations covering the

same fiscal year, the person must provide a written certification that

all the information and documentation provided earlier is still

accurate and complete, or must provide the details of any changes.

(e) Notification. The Deputy Administrator, Export Credits shall

promptly notify persons nominated as agents of the participant or

importer, of the determination or of the need for further inquiry, and

shall provide a written response within 30 calendar days of receipt of

all the required documents. If USDA will not accept the nomination, the

notification shall state the reasons therefor. The determination of the

Deputy Administrator, Export Credits is effective immediately and

continues in effect pending the result of any appeal to the General

Sales Manager.

(f) Non-acceptance or withdrawal. (1) If USDA does not accept the

nomination of a person, or if acceptance has been withdrawn pursuant to

the provisions of this section, the person may, within 30 calendar

days, present to the General Sales Manager, orally or in writing, any

reasons as to why such action should not stand. Nothing in this

paragraph shall be construed as to prohibit a person whose nomination

has not been accepted or whose acceptance has been withdrawn by USDA

from being nominated at a later time.

(2) If, in the procurement of commodities made available under

title I, Public Law 480, a participant or importer uses an agent whose

nomination has not been accepted in writing by the Deputy

Administrator, Export Credits, USDA may withhold sales approval.

(3) If, in the shipping of commodities made available under title

I, Public Law 480, a participant or importer uses an agent whose

nomination has not been accepted in writing by the Deputy

Administrator, Export Credits, USDA may withhold vessel approval or may

deduct from the ocean freight differential to be paid, the amount of

any commission to the agent in connection with the shipment.

(g) No competitive advantage. A shipping agent may not take any

action which would give a competitive advantage to any supplier of

commodities or ocean transportation. This includes, but is not limited

to, providing advance notice of IFB's or amendments, or selectively

enforcing IFB or contract requirements.

[[Page 3817]]

Sec. 17.5 Contracts between commodity suppliers and importers.

(a) Commodity suppliers and selling agents. (1) In order to

participate in the Public Law 480, title I program, a prospective

commodity supplier must submit to CCC the information required by 7 CFR

1493.30.

(2) If, at the time the commodity supplier reports the sale it is

determined that an agent employed or engaged by a commodity supplier to

obtain a contract is not a selling agent as defined in Sec. 17.2, the

sale will not be eligible for financing.

(b) Eligibility for financing. To be eligible for financing,

commodity contracts must comply with the following requirements unless

otherwise specified in the purchase authorization.

(1) Commodity contracts between suppliers and importers are

considered to be conditioned on the approval by USDA of the contract

price; conformance of the sale to the provisions of the purchase

authorization; responsiveness of the offer to IFB terms; and compliance

by the supplier and the selling agent, if any, with paragraph (a) of

this section.

(2) Importers and suppliers must enter into contracts within the

contracting period specified in the purchase authorization. The

contracts must provide for deliveries to the importer in accordance

with the delivery terms and during the delivery period specified in the

purchase authorization, or any amendment or modification thereto.

(3) Contracts for a commodity, under a purchase authorization which

limits delivery terms to f.o.b. or f.a.s., must be separate and apart

from the contracts for ocean transportation of the commodity.

(4) The supplier's sales price may not exceed the prevailing range

of export market prices as applied to the terms of sale at the time of

sale, as determined by USDA. The ``time of sale'' is the date and time

specified in the IFB for receipt of offers; or the date of the contract

amendment if the amendment affects the sale price, as determined by

USDA. The contract price may not be on a cost plus a percentage-of-cost

basis.

(c) Contracting procedures--(1) Purchasing--general. (i) Importers

must purchase commodities on the basis of IFB's.

(ii) The participant shall maintain a record of all offers received

from suppliers until the expiration of three years after final payment

under contracts awarded under the purchase authorization. The GSM may

examine these records or request specific information in connection

with the offers.

(2) Invitations for bids. The following conditions shall apply on

all purchases of commodities on the basis of IFB's:

(i) The General Sales Manager must approve the terms of the IFB

before it is issued by the importer.

(ii) The importer shall issue the IFB in the United States and

shall open all offers in public in the United States at the time and

place specified in the IFB.

(iii) The IFB must permit submission of offers from all suppliers

who meet the requirements of this subpart.

(iv) The IFB may not preclude offers for shipment from any United

States port(s) unless the purchase authorization provides for

exportation only from certain ports.

(v) The IFB may not establish minimum quantities to be offered or

which will be considered.

(vi) The IFB must be in compliance with the regulations, the

purchase authorization, and sound commercial standards.

(3) Contract awards. (i) The importer shall consider only offers

which are responsive to the IFB and shall make awards either on the

basis of the lowest commodity price(s) offered or on the basis of

lowest landed cost. However, when vessels offered under the flag of the

participant, the importing country or the destination country; or

vessels controlled by the participant, the importing country or the

destination country are to be used, the participant must purchase

commodities for shipment on such vessels only on the basis of the

lowest commodity price(s) offered. This limitation may, however, be

waived by the GSM:

(A) When the lowest commodity price(s) offered are in locations

where vessels cannot reasonably be made available without a substantial

increase in freight costs to the participant;

(B) For small quantities offered at additional loading points (in

aggregate not more than 15 percent of the total tonnage offered by a

vessel); or

(C) Where this limitation would conflict with the purposes of the

program.

(ii) For purposes of this section, ``lowest commodity price(s)''

means the lowest commodity price(s) offered for loading onto the type

of vessel (dry bulk carrier, tanker, etc.) to be utilized to carry the

commodity purchased.

(iii) For purposes of this section, ``lowest landed cost'' means

the combination of commodity price and ocean freight rate resulting in

the lowest total cost to deliver the commodity to the importing

country, considering the quantity which must be shipped on privately

owned U.S.-flag commercial vessels, as determined by the Director.

Lowest landed cost may be defined on either a foreign flag or U.S. flag

basis. Awards may not be made on the lowest landed cost basis unless

IFB's are issued for commodity and ocean freight so that all commodity

and ocean freight offers are reviewed simultaneously.

(iv) Participants are encouraged to purchase commodities on the

basis of lowest landed cost when U.S. flag vessels are to be used. If

such commodity purchases are not made on the basis of lowest landed

cost (U.S. flag), ocean freight differential payments will nonetheless

be calculated on the rates of U.S. flag vessels which would represent

the lowest landed cost.

(v) Announcement of awards shall be made in the United States. The

importer shall promptly submit to the Director copies of all offers

received with a copy of the IFB which was issued. No sale can be

approved for financing until this information has been received by FAS.

The decision of the GSM shall be final regarding the responsiveness of

offers to IFB terms in the awarding of contracts.

(d) Contract quantity eligible for financing. The quantity eligible

for financing in the contract between the supplier and the importer may

not exceed that quantity approved by the Public Law 480 Operations

Division, FAS, including any approved contract tolerance.

(e) Contract disputes. Contracts between suppliers and importers

should stipulate the responsibility of each party for payment of any

costs not eligible for financing by CCC. Questions as to payment of

ineligible costs should be resolved between the contracting parties.

(f) Contract provisions. Each contract entered into for financing

under this subpart is deemed to include all terms and conditions

required by this subpart.

(g) Export Trade Act (Webb-Pomerene Law). A supplier who is a

member of a Webb-Pomerene association and who enters into contracts

with importers as a member of such an association shall so indicate in

a statement on, or attached to, the copy of the supplier's detailed

invoice referred to in Sec. 17.9(c)(2).

Sec. 17.6 Discounts, fees, commissions and payments.

For purposes of this section, the term ``payment'' means a

commission, fee or other compensation of any kind. The term ``other

compensation of any kind'' includes anything given in return for any

consideration, services, or benefits received or to be received.

(a) Discounts. If a contract provides for one or more discounts

(including but not limited to trade or quantity

[[Page 3818]]

discounts and discounts for prompt payment) whether expressed as such

or as ``commissions'' to the importer, CCC will only pay the invoice

amount after the discount (supplier's contracted price less all

discounts).

(b) Selling agents. (1) A supplier may not make a payment to a

selling agent employed or engaged by the supplier to obtain a contract.

This prohibition applies to any payment to a person who has acted as a

selling agent to obtain a contract even though the payment may be for

services performed that are not themselves services to obtain a

contract.

(2) A person is deemed to act ``to obtain a contract'' if the

person acts on behalf of a commodity supplier to:

(i) Influence a buyer to award a contract to the supplier;

(ii) Give the supplier a competitive advantage in relation to other

potential suppliers; or

(iii) Influence CCC to approve a contract for financing under these

regulations.

(3) CCC will not consider acts which are purely ministerial in

nature and do not require the exercise of personal influence, judgment,

or discretion (such as attending bid openings or presenting offers at

bid openings), or services to implement a contract after it has been

entered into by the parties (such as handling documentation problems or

contract disputes), as acts to obtain a contract.

(c) Other prohibitions. (1) Suppliers of commodities or ocean

transportation may not:

(i) Pay a commission to the participant or importer; to any agency,

including an agency of the government of the importing country or the

destination country; or to a corporation owned or controlled by the

participant or the government of the importing country or the

destination country.

(ii) Pay a commission to any affiliate of the participant, if the

participant is a private entity;

(iii) Make any payment to an agent of the participant or importer,

in the person's capacity as such agent, other than total ocean

transportation brokerage commissions which do not exceed 2\1/2\ percent

of the freight.

(iv) Pay an address commission or payment.

(2) For ocean transportation, in addition to this paragraph, see

also Sec. 17.8(j).

(3) If a payment is made in violation of this section, CCC may

demand dollar refund of the entire amount financed by CCC under the

contract.

Sec. 17.7 Notice of sale procedures.

(a) Telephonic notice of sale. The supplier shall, immediately upon

making a firm sale, telephone a notice of sale to Public Law 480

Operations Division, FAS. A sale is considered firm when the supplier

has been notified by the importer of an award, even though the contract

is conditioned on approval by FAS (see Sec. 17.5(b)(1).) If the

supplier fails to furnish a notice of sale within 3 working days after

the date of sale, CCC has the right to refuse to finance the sale.

(b) Sale approval. (1) Public Law 480 Operations Division will

notify the supplier by telephone of approval of the notice of sale.

(2) The supplier will prepare Form FAS-359, ``Declaration of

Sale,'' and submit it to Public Law 480 Operations Division promptly as

soon as FAS has provided the CCC Registration Number to the supplier.

The supplier or the supplier's authorized representative must sign the

form.

(3) Each Form FAS-359 shall cover only a single sale contract. If a

sale is made under two or more purchase authorizations, the supplier

will prepare separate forms for each purchase authorization.

(4) If any correction is needed to the Form FAS-359, the supplier

must immediately notify FAS. If a contract is amended, the supplier

should present the original Form FAS-359 for payment along with a copy

of the written USDA approval of the contract amendment.

(c) Sale disapproval. (1) Public Law 480 Operations Division, FAS,

will notify the supplier by telephone when a sale is disapproved for

financing. The related contract between the supplier and importer

shall, for purposes of financing, be considered null and void.

(2) On receipt of a notice of disapproval, the supplier shall

promptly notify the importer.

(d) Contract delivery period. Price approval is limited to exports

made during the delivery period stated in the notice of sale or any

contract amendment approved by the Public Law 480 Operations Division,

FAS. If the supplier cannot complete delivery by the terminal delivery

date of the contract delivery period, the supplier and the participant

or importer shall submit a notice of contract amendment as provided in

paragraph (e) of this section. If the supplier fails to comply,

Sec. 17.10(d) of the regulations shall apply.

(e) Contract amendments. (1) The supplier and the participant or

importer shall each submit a written notice of each contract amendment

to the Director immediately after the amendment to the contract is

made. This includes not only any change in the contract delivery period

or any other terms and conditions of the contract as provided in the

information given in the original notice of sale or any amendment

thereto, but also any change in any other terms and conditions of the

contract.

(2) The notice of contract amendment must contain the following:

(i) A request that USDA approve an amendment to the specifically

identified sale contract between (the participant or importer) and (the

commodity supplier).

(ii) A statement of what the amendment consists of (as, extension

of delivery period through (date)) and a detailed explanation of the

reasons for the amendment.

(iii) A statement that the contract amendment has been agreed to by

both buyer and seller.

(3) Public Law 480 Operations Division, FAS, will notify the

supplier as to whether the amendment is approved or disapproved.

(4) The supplier shall furnish a copy of the USDA approval of the

amendment with other documentation submitted to obtain payment.

(5) If the supplier fails to furnish notice of a contract amendment

to Public Law 480 Operations Division, FAS, within 3 working days after

the date of such amendment, CCC has the right to refuse to finance the

sale or any portion of the sale.

(6) Any amendment must be consistent with the provisions of the

purchase authorization and this subpart and must otherwise be

acceptable to Public Law 480 Operations Division, FAS.

Sec. 17.8 Ocean transportation.

(a) General. (1) This section applies to the financing of ocean

freight or ocean freight differential. Ocean freight will be financed

by CCC only to the extent specifically provided for in the purchase

authorization. The purchase authorization may provide requirements in

addition to or in lieu of those specified in this section.

(2) The supplier of ocean transportation must be engaged in the

business of furnishing ocean transportation from the United States and

must have a person, principal or agent, on whom service of judicial

process may be had in the United States.

(3) The quantity of the commodity which must be shipped on

privately owned U.S.-flag commercial vessels will be determined by the

Director.

(4) The supplier of ocean transportation shall release copies of

the ocean bills of lading to the supplier of the commodity promptly

upon completion of loading of the vessel.

(5) When CCC finances any part of the ocean freight or the ocean

freight

[[Page 3819]]

differential, the participant must open an operable irrevocable letter

of credit for the portion of the ocean freight not financed by CCC. The

amount of the letter of credit shall be computed using the information

provided in the Form CCC-106. The letter of credit shall provide for

sight payment or acceptance of a draft, payable in U.S. dollars, on the

basis of the quantities specified in the applicable ocean freight

contract. If the supplier of ocean transportation accepts the commodity

before receipt of an acceptable letter of credit from a bank, the

supplier takes such action at its own risk. This action in itself does

not affect eligibility for CCC financing.

(b) Contracting procedures.--(1) Invitations for Bids (IFB's). (i)

Public freight ``Invitations for Bids'' are required in the

solicitation of freight offers from all U.S. and non-U.S. flag vessels

when CCC is financing any portion of the ocean freight.

(ii) For non-U.S. flag vessels when CCC is not financing any

portion of the ocean freight, public freight IFB's are also required

unless otherwise authorized by the Director, or unless the participant

requires the use of vessels under its flag, the flag of the destination

country, or other non-U.S. flag vessels under its control. Vessels

considered to be under the control of the participant or the

destination country include vessels under time charters, bare boat

charters, consecutive voyage charters, or other contractual

arrangements for the carriage of commodities which provide guaranteed

access to vessels.

(iii) Prior to release to the trade, all freight IFB's must be

submitted to the Director for approval. Freight IFB's must be issued by

means of the Transportation News Ticker, New York, plus at least one

other means of communication.

(iv) All freight IFBs must:

(A) Specify a closing time for the receipt of offers and state that

late offers will not be considered;

(B) Provide that offers are required to have a canceling date no

later than the last contract layday specified in the IFB;

(C) Provide the same deadline for receipt of offers from both U.S.

flag vessels and non-U.S. flag vessels.

(2) Competitive bidding. When CCC is financing any portion of the

freight, all offers shall be opened in public in the United States at

the time and place specified in the IFB. Offers shall be opened prior

to receipt of offers for the sale of commodities as the Director

determines appropriate. Only offers which are responsive to the IFB may

be considered, and no negotiation shall be permitted.

(3) Records of offers. Copies of all offers received must be

promptly furnished to the Director, who may require the participant, or

its shipping agent, to submit a written certification to the GSM that

all offers received (with the times of receipt designated thereon) were

transmitted to the Department. For purposes of this paragraph ``time of

receipt'' shall be the time a hand-carried offer, mailed offer, or

telegram was received at the designated location for presentation or,

if transmitted electronically, the time the offer was received, as

supported by evidence satisfactory to the Director.

(4) Re-tenders. The Director may permit or require a participant to

refuse any and all bids, and in such case a participant may conduct a

re-tender with the approval of the Director. The Director shall not

approve or require freight re-tenders unless they will increase the

likelihood of meeting U.S. flag cargo preference requirements, will

permit the desired quantity to be shipped, will likely result in

reduced CCC expenditures, or are otherwise determined to be in the best

interest of the program.

(c) Request for vessel approval. The pertinent terms of all

proposed charters and all proposed liner bookings, regardless of

whether any portion of ocean freight is financed by CCC, must be

submitted to the Director for review and approval before fixture of the

vessel. Tentative advance vessel approvals may be obtained by telephone

provided Form CCC-105, Ocean Shipment Data--Pub. L. 480 (Request for

Vessel Approval), is furnished promptly confirming the information

supplied by telephone. The Form CCC-105 shall be submitted in duplicate

to the Director.

(d) Advice of vessel approval. (1) USDA will give written approval

of charters and liner bookings on Form CCC-106, ``Advice of Vessel

Approval.'' The Form CCC-106 will state whether CCC will finance any

part of the ocean freight. For f.a.s. or f.o.b. shipments, CCC will

issue a signed original of Form CCC-106 to the ocean carrier when CCC

finances any part of the ocean freight. For c.& f. or c.i.f. shipments,

CCC will issue Form CCC-106 to the supplier of commodity.

(2) If CCC agrees to finance any portion of the ocean freight, the

participant or its agent shall forward a copy of the ocean freight

contract immediately after execution to the Director for review and

approval prior to issuance of Form CCC-106.

(3) CCC may also require the supplier of ocean transportation to

submit copies of lightening, stevedoring, or bagging contracts for any

voyage for which CCC finances ocean freight or ocean freight

differential.

(e) Special charter party provisions required when any part of

ocean freight is financed by CCC. This paragraph applies when CCC

finances any part of the ocean freight for commodities booked on

charter terms. In the event of any conflict between the provisions of

the regulations in this subpart and the charter party or ocean bills of

lading issued pursuant thereto, the provisions of the regulations in

this subpart shall prevail. The charter party shall contain or, for the

purpose of financing pursuant to the regulations in this subpart, be

deemed to contain the following provisions:

(1) That if there is any failure on the part of the supplier of

ocean transportation to perform the charter party after the vessel has

tendered at the loading port, the charterer shall be entitled to incur

all expenses which in the judgment of the General Sales Manager are

required to enable the vessel to carry out her obligations under the

charter party including, but not limited to, expenses for lifting any

liens asserted against the vessel.

(2) That, notwithstanding any prior assignments of freight made by

the owner or operator, the expenses authorized in paragraph (e)(1) of

this section may be deducted from the freight earned under the charter

party.

(3) That ocean freight is earned and that 100% thereof is payable

by the charterers when the vessel and cargo arrive at the first port of

discharge, subject to paragraph (e)(4) of this section, and to the

further condition that if a force majeure as described in paragraph

(l)(1) of this section results in the loss of part of the vessel's

cargo, 100% of the ocean freight is payable on the part so lost. This

provision does not relieve the carrier of the obligation to carry to

other points of discharge if so required by the charter party.

(4) That if a force majeure as described in paragraph (l)(1) of

this section prevents the vessel's arrival at the first port of

discharge, the freight shall be payable by the charterer at the time

the General Sales Manager determines that such force majeure was the

cause of nonarrival.

(5) That laydays are non-reversible.

(6) That in a dispute involving any rights and obligations of CCC,

including rights and obligations as successor or assignee, which cannot

be settled by agreement, the dispute shall not be subject to

arbitration.

(f) Special charter party information required when any part of

ocean freight is financed by CCC. When CCC finances

[[Page 3820]]

any part of the ocean freight for commodities booked on charter terms,

the charter party shall contain the following information:

(1) The name of each party participating in the ocean freight

brokerage commission, if any, and the percentage thereof payable to

each party;

(2) The name of the vessel and the name of the substitute vessel,

if any.

(g) Notice of arrival. Each Form CCC-106 will indicate whether a

notice of arrival is required. A notice of arrival, when required, must

be furnished promptly by the participant or its designated agent or

other source acceptable to CCC (excluding the carrier or its agent) and

must include the name of the vessel, the purchase authorization number,

the first port of discharge, and the date of arrival. The notice of

arrival of the vessel also constitutes prima facie evidence of arrival

of the cargo.

(h) Foreign flag vessels. The cost of ocean transportation will be

financed by CCC on non-U.S. flag vessels only when, and to the extent,

specifically provided in the applicable purchase authorization.

(i) U.S.-flag vessels. When a commodity is required to be shipped

on a privately owned U.S.-flag commercial vessel, Form CCC-106 will set

forth:

(1) The rate of the ocean freight differential, if any, which the

Director determines to exist between the prevailing foreign-flag vessel

rate and the U.S.-flag vessel rate; and

(2) The approximate tonnage for which CCC will authorize

reimbursement of ocean freight or ocean freight differential, as

appropriate.

(j) Items not eligible for financing by CCC. The following costs

will not be financed by CCC, either separately or as part of the

commodity contract price:

(1) Loading, trimming, and other related shipping expenses unless

included in the ocean freight rate;

(2) Discharge costs unless included in the ocean freight rate;

(3) The cost of ``dead freight'';

(4) Cargo dues and taxes assessed by the importing or recipient

country;

(5) Surcharges assessed by steamship conferences or carriers,

unless specifically authorized by the Director;

(6) General average contributions;

(7) Stevedoring overtime and vessel crew overtime;

(8) Ship's disbursements;

(9) Ocean transportation brokerage commissions in excess of 2-1/2

percent of the freight;

(10) Any payments prohibited in Sec. 17.6(b) and (c); and

(11) Detention.

(k) General financing provisions. When any part of ocean freight

will be financed either separately or as part of the commodity contract

price, the following shall apply:

(1) Ocean freight contracts must show the ocean freight rate from

one loading port to one discharge port, and may provide for an increase

in rate for an additional port of loading or discharge, or other

option. CCC, however, will finance initially the lowest such rate or

OFD, as appropriate. Increased amounts due because of the exercise of

such option will be financed only after receipt of an ocean bill of

lading or other evidence showing that the option was exercised.

(2) In the case of transshipment to a foreign flag vessel, CCC

will finance the ocean freight or OFD, as appropriate, only to the

point of transshipment, at a rate determined by the GSM, and CCC will

not finance any part of the ocean freight beyond the point of

transshipment unless specifically approved by the GSM. If the commodity

was transported from a U.S. port and was transshipped at another U.S.

port, CCC will not finance, without prior approval of the GSM, any part

of the ocean freight incurred before transshipment.

(3) The ocean freight rate eligible for CCC financing and the rate

used for the U.S.--flag vessel in calculating ocean freight

differential shall not exceed the following rates for the category of

the vessel concerned:

(i) For commodities covered by published tariff rates--the

published conference contract rate;

(ii) For other commodities--the market rate prevailing at the time

of request for approval as determined by the Director, but in any event

not in excess of rates charged other shippers (irrespective of booking

dates) for like commodities on the voyage concerned.

(4) Payment will be made for ocean freight or OFD, as appropriate,

from loading points to discharge points at rates approved by the

Director on Form CCC-106 in conformity with paragraph (k)(3) of this

section.

(5) Freight for a vessel designated on Form CCC-106 as a U.S. flag

vessel shall not be eligible for financing unless such vessel complies

with the provisions of Public Law 87-266.

(6) Ocean freight contracts must specify that the participant

shall be liable for detention of the vessel for loading delays

attributable solely to the decision of the supplier of ocean

transportation not to commence loading because of the failure of the

participant to establish an ocean freight letter of credit in

accordance with paragraph (a)(4) of this section. However, ocean

freight contracts may not contain a specified detention rate. The ocean

transportation supplier shall be entitled to reimbursement for

detention costs for all time so lost, for each calendar day or any part

of the calendar day, including Saturdays, Sundays and holidays. The

period of such delay shall not commence earlier than upon presentation

of the vessel at the designated loading port within the laydays

specified in the ocean freight contract, and upon notification of the

vessel's readiness to load in accordance with the terms of the

applicable ocean freight contract. The period of such delay shall end

at the time that operable irrevocable letters of credit have been

established for the applicable ocean freight or the time the vessel

begins loading, whichever is earlier. Time calculated as detention

shall not count as laytime. Reimbursement for such detention shall be

payable no later than upon the vessel's arrival at the first port of

discharge.

(l) Force majeure. (1) The GSM will waive the requirement for the

notice of arrival required by Form CCC-106 by a written notice to the

supplier of ocean transportation on the receipt of evidence

satisfactory to the General Sales Manager that the vessel is lost or

unable to proceed to destination after completion of loading as a

result of one or more of the following causes: Damage caused by perils

of the sea or other waters; collisions; wrecks; stranding without the

fault of the carrier; jettison; fire from any cause; Act of God; public

enemies or pirates; arrest or restraint of princes, rulers or peoples

without the fault of the supplier of ocean transportation; wars; public

disorders; captures; or detention by public authority in the interest

of public safety. The supplier may substitute such waiver for the

notice of arrival.

(2) The determination of a force majeure by the GSM shall not

relieve the participant from its obligation under the Agricultural

Commodities Agreement to pay CCC, when due, the dollar amount of ocean

freight, plus interest (exclusive of ocean freight differential),

financed by CCC.

(m) Demurrage/despatch. CCC will not finance demurrage and CCC

will not share in despatch earnings. Owners and commodity suppliers

will settle laytime accounts at load port(s) and owners and charterers

will settle laytime accounts at discharge port(s). Under no

circumstances shall CCC be responsible for resolving disputes involving

calculation of laytime or the payment of demurrage or despatch.

(n) Ocean freight included in the commodity contract price. For

cost and freight or c.i.f. contracts the ocean

[[Page 3821]]

freight, or the ocean freight differential, as appropriate, will be

financed only to the extent specifically provided in the applicable

purchase authorization.

(o) Separate freight contracts. Contracts for ocean transportation,

under a purchase authorization which limits delivery terms to f.o.b. or

f.a.s., must be separate and apart from the contracts for the

commodity.

Sec. 17.9 CCC payment to suppliers.

(a) General. (1) The supplier shall request payment from CCC for

the amount of the commodity price or the ocean freight or ocean freight

differential to be financed by CCC.

(2) The supplier shall support such a request for payment by

presenting to CCC the documents required by this section, the purchase

authorization, and the IFB, unless such documents were previously

submitted to CCC. Such documents, however, need not be submitted when

and to the extent that the Controller determines that the intended

purpose of a document is served by documents otherwise available to or

under the control of CCC or by alternate documents specified in such

determination.

(3) CCC will examine each document with reasonable care to

ascertain that it appears on its face to be in accord with documentary

requirements. When CCC has determined that all required documents have

been submitted and that the documents are acceptable, CCC will pay the

supplier for the commodity price or the ocean freight or ocean freight

differential to be financed by CCC which is supported by the documents.

(b) General documentation requirements. The supplier must put the

appropriate purchase authorization number on all required documents

which are prepared under the supplier's control, and should arrange for

the appropriate purchase authorization number to be put on all other

required documents at the time of their preparation.

(c) Documents required for payment--commodity. The general

provisions relating to required documents are as follows. Additional

requirements for payment to commodity suppliers for c.& f. or c.i.f.

sales are contained in paragraph (c)(8) of this section.

(1) Supplier's certificate. A signed original of Form CCC-329

``Supplier's Certificate'' from the commodity supplier covering the net

invoice price for the commodity.

(2) Supplier's detailed invoice. Two copies of the supplier's

detailed invoice showing quantity, description, contracted price, net

total invoice price expressed in dollars, the amount for which

financing is requested from CCC, the amount not eligible for financing

by CCC, and basis of delivery of the commodity (e.g., f.o.b. vessel).

In arriving at the net invoice price there shall be deducted:

(i) All discounts from the supplier's contracted price through

payments, credits, or other allowances made or to be made to the

importer, the importer's agent or consignee;

(ii) All purchasing agents' commissions;

(iii) All other amounts not eligible for financing.

(3) Additional payment. A request for an additional payment

submitted for a transaction for which all or part of the required

documents have been previously submitted to CCC shall be supported by a

Form CCC-329 ``Supplier's Certificate'' and the supplier's detailed

invoice, covering the additional amount requested. The supplier's

invoice must show the date, serial number and the amount of the

original invoice and the basis for the additional amount claimed.

(4) Weight certificate. The weight certificate shall be issued by

or on authority of a State or other governmental weighing department,

Chamber of Commerce, Board of Trade, Grain Exchange, or other

independent organization or firm providing public weighing services.

Such organization or firm must have

(i) Qualified, impartial, paid employees who are stationed at the

port facility or, if authorized under the applicable purchase

authorization, other facility where weights customarily are determined,

one of whom performed the weighing covered by the certificate, or

(ii) Qualified, independent, impartial, supervised, weighmasters

stationed at the port facility or, if authorized under the applicable

purchase authorization, other facility where weights are customarily

determined, one of whom supervised the employee of such a facility in

the performance of the weighing covered by the certificate.

(5) Federal appeal inspection certificate. A Federal appeal

inspection certificate, when included in the documents presented for

payment, shall supersede any other inspection certificate required by

this subpart, the applicable purchase authorization, the IFB or the

contract.

(6) Form CCC-359. (i) Form FAS-359, ``Declaration of Sale,'' signed

for the GSM, is the written document by which USDA notified the

supplier that the sale was approved for financing. The supplier shall

submit Form FAS-359 to CCC with the documents covering the first

transaction under the contract. The unit price shown on the supplier's

invoice must not exceed the approved unit price shown on the Form FAS-

359.

(ii) For subsequent transactions under the same contract, the

supplier shall certify on the CCC copy of the detailed invoice as

follows:

I hereby certify that the applicable Form FAS-359 was submitted

to CCC with documents covering Invoice No.

________________ dated ________________________ for

$____________________.

(7) Bill of lading. Four copies of the ocean bill of lading.

(8) C.&.f. or c.i.f. sales. In addition to the above, the following

requirements apply for c.& f. or c.i.f. sales:

(i) Signed original of Form CCC-106.

(ii) The supplier's detailed invoice shall show a computation of

the dollar amount of ocean freight differential, whenever the Form CCC-

106 provides for an ocean freight rate differential on a cost and

freight or c.i.f. sale and authorizes financing of any portion of ocean

freight by CCC. In arriving at the net invoice price the supplier shall

deduct the ocean freight, or portion thereof which is not being

financed by CCC.

(iii) One nonnegotiable copy of the insurance certificate or policy

where the cost of insurance is included in the price of the commodity

to be financed by CCC.

(iv) A request for an additional payment shall also include a

statement signed by the ship's master or owner (or agent of either of

them) showing exercise of the higher-rated option, if the payment is

stated to be due because of the exercise of a higher-rated option

provided in an ocean freight contract.

(d) Documents required for payment--ocean freight financed

separately from commodity price.

(1) Supplier's certificate. A signed original of Form CCC-329,

``Supplier's Certificate'', to be executed by the carrier or its agent,

covering the dollar cost of ocean freight or ocean freight

differential.

(2) Ocean bill of lading. One copy of the ocean bill of lading and,

if required by the related Form CCC-106, a notice of arrival at the

first port of discharge of the vessel named in the Form CCC-106. In

lieu of a notice of arrival the carrier may present a waiver of the

notice of arrival signed by the GSM or Controller.

(3) Invoice. One copy of the carrier's invoice which shows the

total freight costs, the amount not eligible for financing by CCC, and

the amount for which payment is requested from CCC. If the invoice

relates to a U.S.-flag

[[Page 3822]]

vessel, such invoice shall contain the following typed or stamped

certification, executed by the supplier:

The undersigned hereby certifies that the vessel named herein

and for which ocean freight is claimed, qualifies as a privately

owned U.S.-flag commercial vessel within the requirements of Pub. L.

87-266 and is an eligible U.S.-flag vessel for the purposes of Pub.

L. 664, 83rd Congress.

(4) Form CCC-106. Signed original of Form CCC-106.

(5) Ocean freight contract. One copy of the ocean freight contract.

(6) Higher rated option. A request for payment of any amounts

claimed because of the exercise of a higher rated option following

payment of a lower rated option pursuant to Sec. 17.8(k)(1) shall be

supported by the following documents:

(i) One copy of the carrier's invoice as described in paragraph

(d)(3) of this section except for the certification required therein.

(ii) The Form CCC-329, Supplier's Certificate, for the balance

claimed.

(iii) A statement signed by the ship's master, owner, or owner's

agent, and signed laytime statements or other written concurrence of

charterer or the charterer's agent showing the exercise of the higher

rated option.

(e) Payment of freight by CCC prior to the vessel's arrival at the

discharge port.

(1) Upon request by the supplier, CCC may pay the ocean freight or

ocean freight differential to be financed by CCC before the vessel

arrives at the first port of discharge if the supplier furnishes CCC

financial coverage in the form of an acceptable letter of credit from a

U.S. bank.

(2) The amount of security required by CCC under paragraph (e)(1)

of this section may be computed by multiplying the ocean freight rate

or ocean freight differential rate financed by CCC as shown on the

related Form CCC-106 times either--

(i) The tonnage shown on the related bill of lading, if the bill of

lading is furnished to CCC; or

(ii) The tonnage stated in the ocean freight contract (without

tolerance).

(3) On receipt of an acceptable letter of credit, the Controller

will issue a waiver of the notice of arrival which is required under

paragraph (d)(2) of this section.

(f) Advice of amount financed. CCC will forward advice of payment

to the participant.

Sec. 17.10 Refunds and insurance.

(a) Participant--failure to comply. The participant shall pay in

U.S. dollars promptly to CCC on demand by the General Sales Manager the

entire amount financed by CCC (or such lesser amount as the GSM may

demand) whenever the GSM determines that the participant has failed to

comply with any agreement or commitment made by the participant in

connection with the transaction financed or with the applicable

Agricultural Commodities Agreement between the U.S. and the

participant.

(b) Adjustment refunds. All claims by importers for adjustment

refunds arising out of terms of the contract or out of the normal

customs of the trade, including arbitration and appeal awards,

allowances, and claims for overpayment of ocean transportation, if such

refunds relate to amounts financed by CCC, shall be settled by payment

in U.S. dollars and such payment shall be remitted by the supplier to

CCC. The remittance shall be identified with the date and amount of the

original payment and the applicable purchase authorization number.

(c) Insurance on c.i.f. sales. The provisions of this paragraph

apply only to transactions under purchase authorizations that

specifically authorize c.i.f. sales in which the cost of insurance is

included in the net c.i.f. invoice price of the commodity financed.

When the supplier furnishes insurance in favor of or for the account of

the importer, the policies or certificates of insurance shall include a

loss payable clause which provides that all claims shall be paid in

U.S. dollars to the Controller. Such payments shall be accompanied by

advice of the purchase authorization number, the names and addresses of

the supplier and importer, the nature of the claim, the quantity of the

commodity involved in the claim, the date of shipment, the bill of

lading number, and the name of the vessel. CCC will credit the account

of the participant or will refund local currency in accordance with

paragraph (e) of this section.

(d) Refund of ineligible amounts. If a sale has been financed and

CCC determines that the sales price exceeds the price permissible under

Sec. 17.5(b)(4), or that the sale is otherwise ineligible for

financing, in whole or in part, the supplier shall refund in dollars

such excess price or ineligible amount to CCC promptly on demand. If

not promptly refunded, such amount may be set off by CCC against monies

it owes to the supplier. The making of any such refund to CCC, or any

such setoff by CCC shall not prejudice the right of the supplier to

challenge such determination in a court action brought against CCC for

recovery of the amount refunded or set off.

(e) Refund of local currency or reduction of amount due.

Immediately after receipt by CCC of U.S. dollar payment from suppliers

or from or for the account of the participant under this section, CCC

will provide for payment to the participant of the local currency

equivalent of dollars received, if such local currency has been

deposited for the particular transaction or will credit the

participant's account as follows:

(1) For payments under this section, except paragraph (a), the

local currency refunded will be at the exchange rate agreed to by the

Government of the United States and the participant in effect at the

time the local currency is paid to or for the account of the importer

except that if there has been a change in the exchange system or

structure of the importing country or the destination country, such

payment shall be made at the agreed exchange rate which was in effect

on the date of dollar disbursement for the transaction financed, and

except further that local currency shall not be paid when the dollars

are to be reauthorized for replacement of the commodity.

(2) For payment under paragraph (a) of this section, the local

currency refunded will be at the agreed exchange rate in effect on the

date of the dollar disbursement for the transaction financed: Provided,

that local currency will not be refunded to the extent that deposits of

such currency have been made available to the participant on a grant

basis.

(3) For refunds received by CCC under long-term credit agreements

the participant's account shall be credited with the dollar amount

refunded or otherwise recovered, and the participant notified

accordingly.

Sec. 17.11 Recordkeeping and access to records.

Suppliers and agents of the participant or importer shall keep

accurate books, records and accounts with respect to all contracts

entered into hereunder, including those pertaining to ocean

transportation-related services and records of all payments by

suppliers to representatives of the importer or participant, if CCC

finances any part of the ocean freight. Suppliers and agents shall

permit authorized representatives of the U.S. Government to have access

to their premises during regular hours to inspect, examine, audit and

make copies of such books, records and accounts. Suppliers and agents

shall retain such records until the expiration of three years after

final payment under such contracts.

[[Page 3823]]

Signed at Washington, D.C. on September 13, 1996.

Christopher E. Goldthwait,

General Sales Manager, Foreign Agricultural Service and Vice-President,

Commodity Credit Corporation.

[FR Doc. 97-1736 Filed 1-24-97; 8:45 am]

BILLING CODE 3410-10-P