WASHINGTON, Dec. 1, 2004 – The U.S. Department of Agriculture today announced the availability of $20 million in credit guarantees for sales of U.S. agricultural commodities to Morocco under the Commodity Credit Corporation's Supplier Credit Guarantee Program (SCGP) for fiscal year 2005.
SCGP helps exporters offer competitive, open-account financing to foreign buyers of U.S. foods and agricultural products. Under this program, CCC reduces the financial risk to exporters by guaranteeing a large portion of the payments due from importers on short-term credit extended by the exporters or U.S. financial institutions.
This program announcement is issued in accordance with title 7, section 1493.400(d), of the Code of Federal Regulations.
Exporters may apply for credit guarantees on a first-come, first-served basis to cover sales of any of the commodities specified in the GSM list of commodities published in Foreign Agricultural Service program announcement PR 0346-02 issued Sept. 24, 2002, or as superseded. The latest commodity list can be obtained by accessing the FAS home page as specified below.
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 section 1493.410(t)(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 section 1493.410(t)(2). Coverage is not available under this announcement for insurance costs.
Coverage up to 65 percent of the principal is offered on credit terms of 15, 20, 30, 45, 60, 90, 120, 150 and 180 days. No interest coverage is offered under this announcement.
SPECIAL TERMS AND CONDITIONS
Sales must be registered with CCC by Sept. 30, 2005, and exporters’ contractual arrangements must call for exports no later than Nov. 30, 2005.
GUARANTEE FEE RATES
Guarantee fee rates are $0.45 for credit terms up to 90 days, and $0.90 for credit terms up to 180 days. The guarantee fee rates are denoted in cents per $100 of coverage, based on the guarantee value.
In accordance with section 1493.410(s), the importer is required to use one or the other of two standard promissory note forms as evidence of its obligation to pay for the U.S. agricultural commodities exported under the SCGP. These two forms, and the instructions for completing them, are available on the Web at http://www.fas.usda.gov/excredits/scgp.html at the listing for Standard Promissory Note Forms. The forms may also be obtained by contacting the Contract and Registration Branch, Export Credits, FAS-USDA, Room 4503, Stop 1035, 1400 Independence Ave. SW, Washington, DC 20250-1035; telephone (202) 720-3224; fax (202) 720-2949. When submitting a request for the SCGP standard promissory notes, please specify the release number for this program announcement.
Exporters are advised by CCC to review thoroughly the provisions of these promissory notes with the importer. No changes may be made to the promissory note form elected for use. No other form of promissory note(s) may be used.
POINTS OF CONTACT
For further information, contact the Contract and Registration Branch of FAS at (202) 720-3224.
FAS news releases are available on the Internet at http://www.fas.usda.gov. For more information about Web access, contact FAS Public Affairs Division at (202) 720-7115.
In the event of any discrepancy between the FAS Online home page version of this release and the standard FAS release (available in hard copy from FAS), the standard release shall prevail as establishing terms and conditions of any CCC payment guarantees issued pursuant to this release.