name and emblem for a specific year will be received by the calendar manufacturer from the Administrator.

(e) During each year that the authorization is in effect, art work, copy and related plans for each complete calendar and any pertinent changes from the original approved sales and distribution plan, must be submitted for approval to the Administrator, Federal Extension Service, U. S. Department of Agriculture, Washington 25, D. C.

(f) The main illustration shall be used only on the calendar series for which authorization is granted and shall not be used on other calendars. The main illustration and other illustrations used shall be in keeping with the ideals, spirit and objectives of the 4-H Club Program. Natural color oil paintings or photo reproductions of real life situations depicting the educational work of 4-H Clubs shall be used.

(g) All calendar copy must contain a line near the advertiser's name indicating that the distribution of the calendar is designed to further the educational program of 4-H Club work.

(h) Copy, art work, subject matter, and information appearing in or on the calendar shall not in any way imply endorsement of the firm or individual sponsoring the calendar, nor of its products, services, or calendar copy by the United States Department of Agriculture, land-grant colleges, or Extension Service, including the 4-H Clubs, or its representatives.

(i) Space devoted to advertising shall not exceed 10 percent of the total calendar space. The name of only one sponsor or advertiser shall appear on a calendar.

(j) It is preferred that calendars be sold or distributed by purveyors of common necessities such as credit (banks), farm machinery, seeds, fertilizers, groceries, lumber, etc., or through farm organizations, insurance companies, etc.

(k) Calendars bearing the 4-H Club name and emblem shall not be sold to or distributed through any business whose sponsorship or use thereof might reflect unfavorably on the Extension Service or on 4-H Club work. Sales are strictly prohibited to any firm or individual engaging primarily in the manufacture, sale or distribution of liquor and to any establishment engaged primarily in the manufacture, distribution and sale of tobacco products.

(1) Appropriate staff members of the Extension Service shall have the privilege of passing at any time upon the general classification and character of firms to whom calendars are sold. Calendar manufacturers shall refrain from selling and distributing calendars in any State where approval for sales and distribution is not first given by the State Extension Director.

(m) Sales representatives shall contact the State Extension Director or his representative before conducting sales in that State, and shall contact the County Extension office before selling or distributing within a county. State or county staff members will advise with authorized company representatives relative to acceptable sales and distribution policies and plans in the State or county concerned.

(n) To the extent practicable, the State Extension Director shall receive an annual list of sponsors of calendars in his State, including the number purchased by each and the distribution by counties.

(0) Calendar

manufacturers shall fully inform their promotional, educational and sales representatives regarding the organization, structure, objective and policies of the Cooperative Extension Service of which the 4-H Club program is a part, as they relate to carrying out the provisions of these regulations. Special care must be exercised to avoid statements or implications which would embarrass the Cooperative Extension Service. No claims may be made of an exclusive franchise or agency for 4-H calendars.

§ 8.10 Mailing lists and sales promotion by employees.

The Extension Service or its employees shall not make available mailing lists of 4-H Club leaders, members, or other cooperators. Extension Service employees may not engage in or promote the sale of calendars.

11.57 Reports.

11.58 Initiation of projects.

11.59

Consideration of project proposals. 11.60 Delegations by Administrator. 11.61 Further information.

Subpart A-Regulations Governing the Financing of Commercial Sales of Surplus Agricultural Commodities for Foreign Currencies

AUTHORITY: The provisions of this Subpart A issued under secs. 2, 101, 102, 106, 109, 304, 68 Stat. 454, 455, 457, 459, 69 Stat. 44, 78 Stat. 1035; 7 U.S.C. 1691, 1693, 1701, 1702, 1706, 1709. E.O. 10900, 3 CFR 1959-1963 Comp., p. 429.

SOURCE: The provisions of this Subpart ▲ appear at 30 F.R. 15514, Dec. 16, 1965, unless otherwise noted.

agricultural commodities or the products thereof for foreign currencies under Title I of Public Law 480, Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1701-1709). Under this statute, Agricultural Commodities Agreements are entered into by the governments of the importing countries and the United States of America covering financing of the sale and exportation of surplus agricultural commodities and products thereof including certain ocean' transportation costs. The agreements provide for repayment to the United States in the currency of the importing country. The Administrator, Foreign Agricultural Service, administers this program. These regulations prescribe procedures to be followed by importing countries in making application to the Administrator, Foreign Agricultural Service, for authorizations to purchase such commodities and products thereof, the issuance of such purchase authorization by the Administrator, and the financing by Commodity Credit Corporation of the sale and exportation of such commodities or products thereof through private trade channels to the maximum extent practicable, including the financing of certain ocean transportation costs!

(b) Purchase authorizations and `approval of vessels. After approval of the importing country's application therefor, purchase authorization (s) will be issued by the Administrator, Foreign Agricultural Service. The importing country through its authorized importers or agents will procure the commodities from U.S. sources and will arrange for shipment in U.S.-flag vessels when such vessels are required to be used. Following issuance of purchase authorizations and upon application, the Controller, Commodity Credit Corporation, will issue letters of commitment to U.S. Banking institutions designated by the importing country and acceptable to Commodity Credit Corporation (see § 11.11), unless the importing country elects to procure the commodities under the reimbursement method of financing (see § 11.10). Prior approval for the use of all vessels must be obtained from the applicable office of the U.S. Department of Agriculture (see § 11.12(b)). ... The advice of vessel approval will state whether or not the cost of ocean transportation will be financed by Commodity Credit Corporation and the amount, if

any, of the freight differential approved for each vessel.

(c) Letters of commitment and reimbursement method of financing. If the purchase authorization is issued under the letter of commitment method of financing the U.S. suppliers of agricultural commodities will receive payment under letters of credit opened or requested by the approved applicant (see definition in § 11.2 (c) (2)) in the importing country, issued, confirmed or advised by the U.S. bank, for the cost of the commodities and, when authorized and included as a part of the commodity cost, the cost of ocean transportation and insurance. If the purchase authorization is issued under the reimbursement method of filnancing, the U.S. suppliers will obtain payment from the importing country or its assignee (see § 11.10(c)). When the cost of ocean transportation is approved for financing and is to be financed separately from the commodity cost, the supplier of ocean transportation will obtain payment from the importing country or its assignee. Commodity Credit Corporation will reimburse U.S. banks for payments made under letters of commitment and will reimburse the importing country or its assignee for the cost of ocean transportation which is financed separately from the commodity cost and for commodities procured under the reimbursement method of financing.

(d) Advice of amount financed and deposit of foreign currency. The U.S. bank will forward documents and advice of the amount financed by Commodity Credit Corporation to the foreign correspondent bank, and advice of payment will also be furnished to the approved applicant or its designee if it is other than the foreign correspondent bank, in the case of payments under the letter of commitment method of financing. CCC will forward advice of the amount financed to the importing country or its assignee in the case of payments under the reimbursement method of financing. The importing country will arrange for prompt deposit of the equivalent foreign currency.

(e) Where information is obtainable. General information about this program and information about purchase authorizations and related operations under the program may be obtained from the Director, Program Operations Division, FAS, U.S. Department of Agriculture, Washington, D.C., 20250. Information about financing operations under the

Terms used in this subpart, subject to amplification in subsequent sections, are defined as follows:

(a) Terms relating to the United States, its agencies and officials. (1) "C&MS" shall mean Consumer and Marketing Service, U.S. Department of Agriculture.

(2) "CCC" shall mean the Commodity Credit Corporation, U.S. Department of Agriculture.

(3) "The Controller, CCC", shall mean the Controller, Commodity Credit Corporation, or his designee.

(4) "ASCS" shall mean the Agricultural Stabilization and Conservation Service, U.S. Department of Agriculture.

(5) "ASCS Offices" shall mean the ASCS Offices listed in § 11.16, and any other offices or agencies which may sucIceed to the functions of such offices.

(6) "FAS" shall mean the Foreign Agricultural Service, U.S. Department of Agriculture.

(7) "USDA” shall mean the U.S. Department of Agriculture and shall include all or any of the offices mentioned in subparagraphs (1) through (6) of this paragraph.

(8) "The Administrator" shall mean the Administrator of the Foreign Agricultural Service or his designee.

(9) "United States" shall mean the 50 States, the District of Columbia, and Puerto Rico.

(b) Terms relating to ocean transportation. (1) "Dry bulk carriers” are irregularly scheduled vessels commonly referred to as "tramps". They go where full cargoes are offered. Rates are negotiated by charter arrangements covering the movement of a specific commodity, a specific quantity, at a specific time from a specific port or ports to specific destination port or ports. Cargoes generally include grain, coal, fertilizers, lumber, pitch, salt, sugar, etc.

(2) "Dry cargo liners" are regularly scheduled vessels on specific trade routes. Any cargo can be shipped in this service including part-cargoes (parcels) of bulk items as grain, coal, etc., generally not

exceeding 60 percent of the capacity of the vessel. Petroleum, vegetable oils, and similar bulk liquids carried in deep tanks of dry cargo liner vessels are classified as liner cargoes.

(3) "Tankers" are vessels which are designed to carry full cargoes of liquids. Because of compartmentation, tankers can carry a combination of such cargoes, including bulk grain. Rates are negotiated by charter arrangements in the same manner as with dry bulk carriers.

(4) "Form CCC 106" shall mean “Advice of Vessel Approval", Form CCC 106-1 (Supplier of Commodity), Form CCC 106-2 (Ocean Carrier), or Form CCC 106-3 (Cotton), or any or all of them, as applicable. Colors of the original form are: Form CCC 106-1 yellow; Form CCC 106-2 blue; and Form CCC 106-3 white.

(5) "Ocean bill of lading" shall mean a non-negotiable copy (or photostat) of an "On-Board" bill of lading or a bill of lading with an "On-Board" endorsement dated and signed or initialed on behalf of the carrier.

(6) "Ocean Transportation" shall mean, and is interchangeable with, the term "ocean freight”.

(7) "Notice of Arrival" shall mean a written notice or copy of a cablegram acceptable to CCC reciting that the vessel has arrived at the first port of discharge.

(c) Other terms. (1) "Affiliate": A firm (corporation, partnership, individual, or other legal entity) is an "affiliate" of another firm, if either owns more than a 50 percent interest in or controls the other or if a third firm owns more than a 50 percent interest in, or controls, both. (2) "Approved applicant" shall mean the bank in the importing country or any other agency designated by the importing country acceptable to USDA, named in any letter of commitment issued to a banking institution under this subpart. This term shall include any agent authorized to act on behalf of such an applicant.

(3) "Banking institution" shall mean a banking institution organized under the laws of the United States, any State, or the District of Columbia.

(4) "Form CCC 329" shall mean the signed original of Form CCC 329, Supplier's Certificate, with Invoice and Contract Abstract on the reverse.

(5) "Commodity" shall mean the surplus agricultural commodity or product thereof specified in the applicable purchase authorization.

(6) "Copy" shall mean a copy or photostat 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.

(7) "Delivery" shall mean the transfer to or for the account of an importer of custody and right of possession of the commodity in export channels as specified in the purchase authorization.

(8) "Importer" shall mean any person or organization, governmental or otherwise, in the importing country who contracts with the supplier for the importation of the commodity.

(9) "Importing country" shall mean any nation with which an agreement has been negotiated pursuant to Title I, Public Law 480.

(10) "Letters of credit" shall mean irrevocable commercial letters of credit issued, confirmed, or advised by a banking institution on behalf of an approved applicant.

(11) "Purchase Authorization" shall mean FAS Form 480-A, "Authorization to Purchase Surplus Agricultural Commodities with Foreign Currency", or FAS Form 480-A (Ocean Transportation), "Authorization to Procure Ocean Transportation", issued to an importing country pursuant to this subpart.

(12) "Supplier" shall mean any firm (corporation, partnership, individual, or other legal entity) which sells any agricultural commodity or products thereof to an importer under the terms of a purchase authorization for delivery to such importer in export channels, or which sells ocean transportation to an importer or supplier of the commodity under the terms of a purchase authorization.

(13) "Selling Agent" shall mean any firm (corporation, partnership, individual, or other legal entity) which operates as a formally appointed sales agent for the supplier of the commodity and who is not affiliated with the importer or the importing country.

(14) "Foreign Currency" shall mean, and is interchangeable with the term "Local Currency", and refers to the currency of the country which signs an Agricultural Commodities Agreement with the United States and to which a purchase authorization is issued.

(15) "Title I" shall mean Title I of the Agricultural Trade Development and Assistance Act of 1954, as amended. (80 F.R. 15514, Dec. 16, 1965, as amended at 31 F.R. 3059, Feb. 24, 1966]

§ 11.3

Purchase authorizations.

(a) Application. The importing country shall submit an Application for authorization to purchase agricultural commodities with foreign currency or authorization to procure ocean transportation, or both, for each commodity to the Administrator. The application shall be submitted in triplicate on FAS Form 480-1 and shall include a statement as to the usual marketings of the commodity in accordance with the applicable Agricultural Commodities Agreement

and any other information required by the Administrator.

(b) Issuance of purchase authorizations. Upon approval of the application by the Administrator, appropriate purchase authorizations as described below will be issued to the importing country, and financing should be in accordance with such purchase authorization.

(1) Authorization to Purchase Surplus Agricultural Commodities with Foreign Currency, FAS Form 480-A.

(2) Authorization to Procure Ocean Transportation, FAS Form 480-A (Ocean Transportation).

(c) Provisions of purchase authorizations. Each purchase authorization will specify:

(1) Authorizations to purchase surplus agricultural commodities with foreign currency. (1) The commodity to be purchased, and the approximate quantity and maximum dollar value thereof;

(ii) Contracting requirements in addition to or in lieu of those enumerated in Appendix A of this subpart, if any;

(iii) The periods during which contracts between suppliers and importers may be entered into and during which deliveries may be made;

(iv) The terms of delivery to the importer in export channels of trade;

(v) Documentation required in support of drafts presented to banking institutions by suppliers, other than the documentation specified in this subpart;

(vi) Provisions relating to local currency deposits;

(vii) The ASCS Office which will administer the financing operation on behalf of CCC;

(viii) The method of financing;

(2) Authorization to procure Ocean Transportation, FAS Form 480-A. (1) The commodity to be shipped;

(ii) The delivery period;

(iii) The maximum dollar amount; (iv) Provisions relating to local currency deposits;

(v) Any other provisions deemed necessary by the Administrator.

(3) Applicability of this subpart. In addition to the provisions of the particular purchase authorization, each purchase authorization shall be subject to the provisions of the regulations in this subpart to the same extent as if they were fully set forth in the purchase authorization.

(d) Modification or revocation. The Administrator 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 thereunder. CCC shall reimburse suppliers of commodities and ocean transportation who would otherwise be entitled to be financed, for costs incurred as a result of such action by the Administrator in connection with firm sales or shipping contracts, and not otherwise recovered after a reasonable effort to minimize such costs: Provided, however, That such reimbursement shall not be made to a supplier if the Administrator determines that his action was taken because the supplier failed to comply with the requirements of these regulations or the applicable purchase authorizations.

(e) Refund to CCC. The importing country shall pay in U.S. dollars promptly to CCC upon demand by the Administrator the entire amount financed by CCC (or such lesser amount as the Administrator may demand) whenever the Administrator determines that the importing country has failed to comply with any agreement or commitment made by it in connection with the transaction financed.

(f) Extension of delivery periods in purchase authorizations. Requests for extensions of delivery periods will be considered by the Administrator only if submitted by the importing country. Such requests should be submitted as far as possible in advance of the expiration of the delivery period and in any event as soon as the importing country has knowledge that there is a possibility that delivery will not be completed within the