WASHINGTON, June 24, 2009 – The U.S. Department of Agriculture today amends the availability of the following credit guarantees for sales of U.S. agricultural commodities under the Commodity Credit Corporation's Export Credit Guarantee Program (GSM-102) for fiscal year 2009. Additional Amount Available: $300 million Geographical Area: South Korea
With today’s announcement, a total of $1.2 billion has been made available to South Korea during the fiscal year 2009.
The GSM-102 program helps ensure that credit is available to finance commercial exports of U.S. agricultural products to developing countries, while providing competitive credit terms in these countries. Under this program, the Commodity Credit Corporation (CCC) reduces the financial risk to lenders by guaranteeing payments due from approved foreign banks to exporters or financial institutions in the United States.
This program announcement is issued in accordance with title 7, section 1493.10(d), of the Code of Federal Regulations.
Exporters may apply for credit guarantees on a first-come, first-served basis.
These guarantees are to cover sales of any of the commodities specified in the GSM list of commodities. The latest commodity list can be obtained by accessing the Foreign Agricultural Service (FAS) Web page at http://www.fas.usda.gov/excredits/gsmcommodities.html. Applications will be accepted beginning at the following time: Beginning Time: 9:00 a.m. Eastern Time Beginning Date: June 29, 2009
The allocation does not assign dollar amounts to any of the commodities specified in the GSM list of commodities, providing buyers and sellers maximum flexibility in arranging the size of their transactions within the scope of the overall allocation.
TERMS OF COVERAGE
In accordance with 7 CFR 1493.20(v)(1), this announcement offers coverage on a free-alongside-ship or free-on-board basis. If commodities are sold on a cost-and-freight or cost-insurance-and-freight basis, coverage on a cost-and-freight basis to point of ocean transportation or international air carrier discharge is also available in accordance with 7 CFR 1493.20(v)(2). Coverage is not available under this announcement for insurance costs.
Coverage of up to 98 percent of the principal is offered on credit terms from 30 days to three years, except for solid wood products, wood pulp, and wood chips, for which coverage is offered on credit terms of up to 720 days. Adjustable interest coverage is also offered in accordance with FAS program announcement PR 0138-08 issued Sept. 4, 2008, or as superseded.
ELIGIBLE BANKS IN SOUTH KOREA
Any bank approved by CCC for this country is eligible. For a complete list of eligible banks, refer to the CCC "GSM Program Foreign Bank Obligors" Web page located at http://www.fas.usda.gov/excredits/foreignbanks.html. Exporters are advised to obtain from their foreign buyer the name of the CCC-approved foreign bank that will be opening the letter of credit.
GUARANTEE FEE RATES
Pursuant to 7 CFR 1493.70, for a complete list of fees refer to the CCC "GSM-102 Guarantee Fee Rate Schedule" Web page located at http://www.fas.usda.gov/excredits/gsm102fees.html. These fees are listed by risk category. A complete list of countries and their associated risk category is available on the CCC "Country Risk Category" Web page located at http://www.fas.usda.gov/excredits/countryrisk.html.
SPECIAL TERMS AND CONDITIONS
Sales must be registered with CCC by Sept. 30, 2009. Exporters' contractual arrangements must call for exports within 90 days of the date of registration or by Nov. 30, 2009, which ever date is earlier. Applicable federal regulations (7 CFR 1493.60(i)) provide that an exporter may request an extension of time to export. Under current market conditions, however, CCC does not anticipate granting any such request unless the exporter demonstrates to CCC that circumstances beyond the exporter’s control preclude exportation within the original time to export contemplated under the guarantee.
POINT OF CONTACT
For further information, contact the Registrations and Operations Branch of FAS at (202) 720-3224, or by e-mail at email@example.com.
For the latest updates on FAS programs and activities, go to the FAS Web page at http://www.fas.usda.gov.