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without regard to risks for all amounts $ 1483. Interest charges. not recovered from the U.S. bank of the
The account receivable assigned to agency or branch bank. (1) Under special circumstances, on
CCC and the related bank dolization(s) application in writing, the Vice Presi
shall bear interest until paid. The Vice dent, CCC, may reduce or waive the re
President, CCC, or his designee shall quirement for 10 percent confirmation
from time to time establish rates of interby a U.S. bank or agency or branch bank,
est applicable to financing agreements, but a bank will not be relieved from an
which shall be announced in the CCC obligation once it has been undertaken.
Monthly Sales List. The interest rate ap(g) Any bank obligation which pro
plicable to a particular financing agreevides for a bank acceptance of a time
ment shall be specified in the financing draft drawn by CCC banker's accept
approval. The interest rate applicable to ance) shall not be acceptable to CCC.
that portion of an account receivable, the (h) CCC will consent to cancellation
payment of which is assured by a bank or reduction of a bank obligation to the
obligation issued by a U.S. bank or an extent that it receives payment from
agency or branch bank, or by a pro rata other sources of amounts otherwise pay
confirmation of a U.S. bank or an agency able under such bank obligation.
or branch bank, shall be 1 percent (1) Collection of accounts receivable
lower than the interest rate established purchased under this program will be
for the remainder of the account receiteffected through the issuance by CCC of
able. The criteria to be used in determin. sight drafts against the bank obliga
ing the rate of interest will be those estions, but this method of collection shall
tablished on consultation witle and after not be exclusive of any other collection
approval by the National Advisory Counprocedures or rights available to CCC.
cil on International Monetary and Fi
nancial Policies. Interest shall accrue on 1483.5 CCC drafts.
the account receivable and the related Under those bank obligations which
bank obligation(s) from the date of deare partially confirmed, CCC will draw
livery, or the weighted average delivery separate drafts for the amounts con
date, of the agricultural commodities de firmed and the amounts not confirmed.
livered under the financing agreement to to which CCC will attach any related
the date of expiration of the financing instruments evidencing the account re
period or of the bank obligation, whichceivable, endorsed to the US. bank or
ever occurs first, and shall be payable as agency or branch bank. II a CCC draft
specified in the financing approval. is dishonored, the U.S. bank or agency
Thereafter, interest shall acerue on any or branch bank shall return the dis
unpaid part of both the principal and honored draft together with any related
interest due as of such expiration date. instruments and its statement of the § 1488.7 Expiration of period for deliv. reasons for nonpayment. For confirmed ery and export. amounts, a Us.bank or agency or branch (a) Unless delivery by the exporter to bank may request refund from CCC of the amount paid if it certifies to CCC
the importer is made within such pethat it is unable to recover funds from
riod as may be provided in the financing the foreign bank due to a stipulated
approval or in any amendment thereof,
or under paragraph (b) of this section, political risk which existed on the date
or, if no such period is so provided, payment was made to CCC under the
within a period of 90 days from the date draft. On approval by CCC of such re- of the financing approval, the financing quest, the refund shall be promptly approval will no longer be valid. made, together with interest at the Ped- (b) If the Vice President, CCC, or his eral Reserve Bank of New York dis- designee, determines that delay in decount rate from the date payment was livery was due solely to causes without originally made to CCC to but not in- the fault or negligence of the exporter, cluding the date of refund by CCC, and the period of delivery may be extended by any related instruments shall be re- CCC to include the period of such delay. turned to CCC. For unconfirmed (c) It delivery is made before export amounts, remittance to CCC shall be under the terms of the financing agreeconsidered final, and the US. bank or ment, failure to export within the peagency or branch bank shall not there- riod specified therefor in the financing after have recourse to CCC.
approval shall constitute a breach of the
(ii) states the quantity of the commod- remittance or refund required by ity entered under bond and date of $$ 1488.8 and 1488.15, together with inentry into the destination country and terest thereon at the face rate of the (iii) certifies that the commodity will related instruments or other documents be withdrawn from bonded storage at a evidencing the account receivable, as later date for consumption in the desti- well as for any liquidated damages pronation country. If the evidence of im- vided for in § 1488.13. The liability of the portation is in other than the English bank and the importer under their relanguage, the exporter shall also provide spective obligations shall be several. the Assistant Sales Manager for Export
$ 1488.13 Liquidated damages. Credit with an English translation thereof. Within 20 days, or such exten- Failure of the exporter to export or sion of time as may be granted in writ- cause to be exported, within the period ing by the Assistant Sales Manager for provided therefor, any agricultural comExport Credit, following shipment from modity financed, when delivery is made the United States of any agricultural before export under the terms of the commodity exported under the financ- financing agreement, or failure of the ing agreement, the exporter shall also exporter to enter or cause the entry of furnish to the Assistant Sales Manager such commodity into the country of for Export Credit nonnegotiable copies destination, shall constitute a breach of or photocopies or other types of copies the financing agreement which will reof all applicable bills of lading properly sult in serious and substantial damage identified with the financing approval to CCC and to its programs. Since it will number. If such evidence is not fur- be difficult, if not impossible, to prove nished within the time specified, the fi- the exact amount of such damage, the nancing agreement may be terminated exporter shall pay to CCC promptly on by the Assistant Sales Manager for Ex- demand, as reasonable compensation port Credit and on such termination, if and not as a penalty, liquidated damages payment under the bank obligation or in lieu of probable actual damages, as account receivable has not yet been re- follows: (a) For each week of delay in ceived, at the option of CCC the bank exportation after the final date for exobligation and the account receivable portation, 1 percent of the amount shall become due and payable. Failure financed under the financing agreement to furnish, within the time specified, evi- for the commodity not exported; (b) for dence of entry of the commodity into failure to export or cause exportation, the country of destination shall con- 5 percent of the amount financed under stitute prima facie evidence of failure the financing agreement for the comto enter or cause the entry of the com- modity not exported; and (c) for failure, modity into such country as required. after exportation, to enter or cause the The remedy herein provided shall not be entry of the commodity into the country exclusive of other rights available to the of destination, at the rate of 5 percent a Federal Government as a result of the
year of the amount financed under the entry of a commodity, exported under a financing agreement for such commodity financing agreement, into a country from the start of the financing period other than that specified in the financ- until payment to CCC of the amount ing agreement.
financed: Provided, That the aggregate § 1488.12 Liability for payment.
of any amounts assessed under this
§ 1488.13 with respect to the same comIf delivery is made within the coverage
modity shall not exceed 5 percent of the of the bank obligation(s) submitted in
amount financed for such commodity. accordance with $ 1488.9, CCC will look
Liquidated damages shall not be assessed to the obligating bank or banks and the
under paragraph (a) of this section to foreign importer, rather than to the ex
the extent that the Assistant Sales porter, for payment of all amounts due
Manager for Export Credit, or his desigat maturity of the instruments or other
nee, determines that the delay was due documents evidencing the account receivable and of the bank obligation(s),
to such causes as acts of God or goybut the exporter shall remain liable for
ernment or the public enemy, fires, any loss arising from breach of any cer
floods, epidemics, quarantine restrictification or warranty made by him, any tions, strikes, freight embargoes, or unamounts not covered by the bank obliga- usually severe weather. Liquidated damtion which are owing to CCC, and any ages shall not be assessed under
paragraph (b) or (c) of this section if § 1488.18 Exporter's records and acthe Assistant Sales Manager for Export counts. Credit, or his designee, determines that
The Vice President, CCC, and his desfailure to export was due to loss, damage,
Ignees, shall have access to and the right destruction or deterioration of the com
to examine any directly pertinent books, modity or that failure to enter or cause
documents, papers, and records of the the entry of the commodity into country
exporter involving transactions related of destination was due to loss or
to contracts between the exporter and destruction of the commodity or act of
the importer until the expiration of 3 government.
years after maturity of the related & 1488.14 Assignment.
financing agreement. The exporter shall not assign any § 1488.19 Communications. claim or rights to any amounts payable
Unless otherwise provided, any written under the financing agreement, in whole
requests, notifications, or communicaor in part, without written approval of
tions by the applicant pertaining to the the Vice President, CCC, or his designee.
financing agreement shall be addressed $ 1488.15 Covenant against contingent to the Assistant Sales Manager for Exfees.
port Credit, Export Marketing Service, The exporter warrants that no person
U.S. Department of Agriculture, Washor selling agency has been employed or ington, D.C. 20250. retained to solicit or secure the financing NOTE: The recordkeeping and reporting agreement on an agreement or under- requirements of the regulations of this substanding for a commission, percentage, part have been approved by, and subsequent
recordkeeping and reporting requirements brokerage, or contingent fee, except bona
will be subject to the approval of the Bufide employees or bona fide established
reau of the Budget in accordance with the commercial or selling agencies main
Federal Reports Act of 1942. tained by the exporter for the purpose
SUPPLEMENT I-BEET BREEDING CATTLE of securing business. For breach or violation of this warranty, CCC shall have A. Additional definitions. 1. “Port value” the right, without limitation on any means the net amount of the exporter's sales other rights it may have, to annul the price for beef breeding cattle to be exportad
under the financing agreement, basis l.a.s. or financing agreement without liability to
1.0.b. export carrier at U.S. ports, at 0.8. borCCC. Should the financing agreement
der points of exit, or at U.S. points of night if be annulled, CCC will promptly consent
transported by air freight. The point of oxto the reduction or cancellation of re- portation for animals shall be designated by lated bank obligations except for the Agricultural Research Service, U.s. Deamounts outstanding under a financing partment of Agriculture. The port value shall agreement. Such outstanding amounts not include the ocean freight for a c. & f.
sale or ocean freight and marine and war shall, on demand, be refunded to CCC
risk insurance for a c.1.1. sale, and shall also by the exporter.
not include any animal care or servicing 8 1488.16 Shipment of commodities on cost incurred after such animals are loaded
vessels calling at Cuban and North aboard the export carrier. The net amount Vietnamese ports.
of the exporter's sales price means the con
tract price for the animals less any payments Any commodity exported under the made by the importer and less any discounts, CCC financing agreement shall not be credits, or allowances to the importer. Such shipped from the United States on a net amount shall not exceed (a) for regis
tered bulls, $1,200 each or, with prior apvessel which has called at a Cuban port
proval of the Assistant Sales Manager for on or after January 1, 1963, or at a
Export Credit, $2,500 11 performance has been North Vietnamese port on or after Jan
superior to the performance records specined uary 25, 1966.
in Exhibit II to this supplement; (b) for $ 1488.17 Officials not to benefit.
registered females, $600 each or, with prior
approval of the Assistant Sales Manager for No member of or delegate to Congress,
Export Credit, $1,000 11 performance has or Resident Commissioner, shall be ad- been superior to the performance records mitted to any share or part of the financ- specified in Exhibit I to this supplement; ing agreement or to any benefit that may
(c) for nonregistered females, an average, arise therefrom, but this provision shall
for the sale, of $450 each or, with prior apnot be construed to extend to the financ- proval of the Assistant Sales Manager for ing agreement is made with a corpora- Export Credit, $650 11 performance has been tion for its general benefit.
superior to the performance records specified
of linseed oil the “official inspection certificate" may also mean an inspection certificate issued by or under the supervision of a surveyor or chemist mutually agreed upon by the seller, buyer, and CCC. $ 1486.157 U.S. Government agency.
U.S. Government agency means any corporation wholly owned by the Federal Government and any department, bureau, administration or other unit of the Federal Government, as for example, the Departments of the Army, Navy, and Air Force, the Agency for International Development, the Army and Air Force Exchange Service, and the Panama Canal Company. Sales to foreign buyers, including foreign governments, though financed with funds made available by a U.S. agency such as the Agency for International Development or the ExportImport Bank, are not sales to a U.S. Government agency, provided the commodity is not for transfer by such buyer to a U.S. Government agency.
NOTE: The record keeping and reporting requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act, of 1942.
NOTICE TO EXPORTERS The Department of Commerce, Bureau of International Commerce, pursuant to regulations under the Export Control Act of 1949, prohibits the exportation or reexportation by anyone of any commodities under this program to Cuba, the Soviet Bloc or Communist-controlled areas of the Far East including Communist China, North Korea, and the Communist-controlled area of Viet Nam, except under validated license issued by the U.S. Department of Commerce, Bureau of International Commerce.
For all exportations, one of the destination control statements specified in Commerce Department Regulations (Comprehensive Export Schedule § 379.10(C)) is required to be placed on all copies of the shipper's export declaration, all copies of the bill of lading, and all copies of the commercial invoices. For additional information as to which destination control statement to use, the exporter should communicate with the Bureau of International Commerce or one of the field offices of the Department of Commerce.
Exporters should consult the applicable Commerce Department regulations for more detalled information 1 desired and for any changes that may be made therein.
PART 1488—FINANCING OF SALES
OF AGRICULTURAL COMMODITIES Subpart A-Financing of Export Sales
of Agricultural Commodities From Private Stocks Under CCC Export Credit Sales Program (GSM-4,
Revised) Sec. 1488.1 General statement. 1488.2 Definition of terms. 1488.3 Submission of applications for
financing. 1488.4 Coverage of bank obligations. 1488.5 CCC drafts. 1488.6 Interest charges. 1488.7 Expiration of period for delivery
and export. 1488.8 Advance payment. 1488.9 Documents required after delivery. 1488.10 Evidence of export and warranty. 1488.11 Evidence of entry into country of
destination. 1488.12 Liability for payment. 1488.13 Liquidated damages. 1488.14 Assignment. 1488.15 Covenant against contingent fees. 1488.16 Shipment of commodities on vessels
calling at Cuban and North Viet
namese ports. 1488.17 Officials not to benefit. 1488.18 Exporter's records and accounts. 1488.19 Communications. Supplement I-Beef Breeding Cattle. Supplement II—Dairy Breeding Cattle.
AUTHORITY: The provisions of this Subpart A issued under sec. 5(f), 62 Stat. 1072; 15 U.S.C. 714c; sec. 407, 63 Stat. 1065, as amended, 7 U.S.C. 1427; sec. 4, 80 Stat. 1538, 7 U.S.C. 1707a.
SOURCE: The provisions of this Subpart A appear at 34 F.R. 19705, Dec. 16, 1969, unless otherwise noted. § 1488.1 General statement.
(a) Except as otherwise provided in this paragraph, the regulations contained in this subpart supersede Announcement GSM-3, Revision II, as amended, and set forth the terms and conditions governing the CCC Export Credit Sales Program (GSM-4). The maximum financing period shall be 3 years. GSM-3, Revision II, as amended, shall remain in effect for all transactions under credit approvals issued thereunder before April 27, 1967, the effective date of GSM-4.
(b) On approval by CCC of an application for financing under this program, an eligible exporter may, but will not be obligated to, make export sales of agri
cultural commodities from private stocks on a deferred payment basis in accordance with the applicable financing arrangement. After delivery, subject to the terms and conditions set forth in this subpart, CCC will purchase for cash the exporter's account receivable arising from such export sale.
(c) The provisions of Public Law 83– 664 are not applicable to the exporter's shipments under this program.
(d) The regulations contained in this subpart may be supplemented by such additional terms and conditions, applicable to specified agricultural commodities, as may be set forth in supplements hereto, and, to the extent that they may be in conflict or inconsistent with any other provisions of this subpart, such additional terms and conditions shall prevall. 8 1488.2 Definition of terms.
Terms used in this subpart are defined as follows:
(a) “Account receivable" means the contractual obligation of the foreign importer to the exporter for the portion of the port value of the commodity delivered for which the exporter is extending credit to the importer. The account receivable shall be evidenced by a promissory note or accepted draft in form and substance satisfactory to CCC, except that it may be evidenced by other documents, in form and substance satisfactory to CCC, evidencing the contractual obligation of the foreign importer when the account receivable is assured by an obligation issued by a U.S. bank or when the Vice President, CCC, or his designee, determines under special circumstances that it is in the interest of CCC. All such notes, accepted drafts and other documents evidencing the account receivable shall provide for (1) payment in U.S. dollars in the United States, (2) interest in accordance with $ 1488.6, and (3) acceleration of payment thereunder in accordance with the terms and conditions of GSM-4. As used in GSM-4, "instrument” means a promissory note or accepted draft.
(b) "Agency or branch bank" means a foreign agency or branch bank supervised by New York State banking authorities or the banking authorities of any other State providing similar supervision, as approved by the Vice President, CCC, or his designee.
(c) "ASCS office" means the New Orleans Commodity Office of the Agricultural Stabilization and Conservation Service, U.S. Department of Agriculture.
(d) “Bank obligation" means an obligation, acceptable to CCC, of a U.S. bank, agency or branch bank, or foreign bank to pay to CCC in U.S. dollars the amount of the port value which is to be financed by CCC, plus interest in accordance with $ 1488.6. The bank obligation shall be in the form of an irrevocable letter of credit. issued, confirmed or advised by a U.S. bank or an agency or branch bank. The bank obligation shall provide for payment under the terms and conditions of the financing agreement and shall be payable not later than the date of expiration of the financing period or of the bank obligation, whichever occurs first, if payment is not received from other sources.
(e) “CCC” means the Commodity Credit Corporation, U.S. Department of Agriculture.
(f) "Commercial risk" means risk of loss due to any cause other than a political risk.
(g) (1) "Delivery" means the delivery, either before or at point of export, required by the export sale contract to transfer to the importer full or conditional title to the agricultural commodities. Delivery before export shall be at a warehouse in the United States acceptable to CCC. Delivery at point of export shall be f.a.s. or f.o.b. export carrier at U.S. ports, at U.S. border ports of exit or, if transshipped through Canada via the Great Lakes, at ports on the St. Lawrence River.
(2) "Date of delivery" means the onboard date of the ocean bill of lading or, if exported by rail or truck, the date of entry shown on an authenticated landing certificate or similar document issued by an official of the government of the importing country, or, if delivery is before export, the date(s) of the warehouse receipts or other evidence of delivery, acceptable to CCC, of the commodity to a warehouse.
(h) "EMS" means the Export Marketing Service, U.S. Department of Agriculture.
(1) "Eligible commodities" means those agricultural commodities, including eligible cotton, which are produced in the United States and which are designated as eligible for export under CCC's