WASHINGTON, Nov. 13, 2009 - The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) today announced changes to the GSM-102 Program for fiscal year (FY) 2010, which began Oct. 1, 2009. These changes will also be noted in individual FY 2010 country and regional program announcements.
On certain program announcements, the total amount available may be restricted by commodity type. If applicable, the program announcement will clearly show the allocated coverage available by commodity type.
Effective Oct. 1, 2009, application fees associated with GSM-102 registration applications must be received by the Commodity Credit Corporation (CCC) on the same day as receipt of the application. The regulations for GSM-102 state in 7 CFR 1493, Subpart B, 1493.70(c) Payment of fee: “The exporter shall remit, with his written application, the full amount of the guarantee fee.” Effective Oct. 1, 2009, CCC will not consider any GSM-102 application unless CCC also receives the full guarantee fee no later than 11:59 p.m. (Eastern Time) of the same day that CCC received the application. Fees may be submitted to CCC via check or wire transfer. In order to facilitate the matching of the fee payment with the application, the payer must submit the name of the applicant, the sales number, the country/region name, and the amount to be applied to each application (if one payment is submitted to cover multiple applications).
This Notice supersedes the Notice to Participants (PR-0127-08) issued on July 23, 2008.
For the FY 2010 program, exporters’ contractual arrangements must call for exports within 90 calendar days of the date of registration or by Nov. 30, 2010, whichever date is earliest. Extensions to the export date will only be permitted on a case-by-case basis and must be applied for in writing. Under current market conditions, however, CCC does not anticipate granting any extensions unless the exporter can demonstrate that circumstances beyond the exporter’s control precluded exporting by the final date to export on the guarantee.
For the FY 2010 program, maximum credit terms will be based on the risk category of the obligor country associated with the CCC payment guarantee. The chart below outlines the maximum terms available:
Obligor (Foreign Bank) Country Risk Category
0, 1, 2, or 3
30 days up to 2.5 years (30 months)
30 days up to 2 years
30 days up to 1.5 years (18 months)
30 days up to 1 year
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. Credit terms for solid wood products, wood pulp, and wood chips will be limited to the lesser of 720 days or the maximum tenor as determined by the table above.
For further information, contact Jonathan Doster, Branch Chief, Registrations and Operations, Office of Trade Programs at (202) 720-3277. More information on USDA’s GSM-102 program can be found at http://www.fas.usda.gov/exportprograms.asp.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272(voice), or (202) 720-6382 (TDD).