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Notice Number:

GSM FY 96-5
EEP FY 96-6
DEIP FY 96-6
SCGP FY 96-4

WASHINGTON, July 18, 1996 -- This Notice replaces Notice Number GSM FY 92-4, EEP FY 92-1, DEIP FY 92-1, and COAP/SOAP FY 92-1, dated March 19, 1992, to include in its scope the Supplier Credit Guarantee Program (SCGP).

Christopher E. Goldthwait, general sales manager of the U.S. Department of Agriculture's Foreign Agricultural Service, today urged participants in certain USDA export programs to be aware of the importance of complying fully with the requirements of those programs concerning documentation of entry of agricultural products exported from the U.S. into an intended destination under the terms of their agreements with USDA and/or the Commodity Credit Corporation (CCC). This Notice is effective as of today's date, except for the SCGP, in which case this Notice is effective on August 30, 1996.

Under the Export Credit Guarantee Program (GSM-102), the Intermediate Export Credit Guarantee Program (GSM-103), and the SCGP, exporters are required to maintain such documentation for a period of 5 years after the date of expiration of the payment guarantee (7 C.F.R. 1493.140(e) for GSM-102/103 and 1493.530(e) for SCGP). Failure by the exporter to maintain and provide access to the required entry documentation (which meets the requirements of 7 C.F.R. 1493.100 for GSM-102/103 and 1493.490 for SCGP) could result in the exporter being held liable for the amount of any claims paid by CCC under the guarantee, or being subject to other administrative actions.

Under the Export Enhancement Program (EEP), the Dairy Export Incentive Program (DEIP), the Cottonseed Oil Assistance Program (COAP), and the Sunflowerseed Oil Assistance Program (SOAP), the required entry documentation (which meets the requirements of 7 C.F.R. 1494.401(f)(2) for EEP and DEIP and the applicable Announcements for SOAP and COAP) must be provided to USDA or CCC before agreements can be determined to be completed and exporters' performance security released. Failure to provide such documentation could result in the recoupment of any bonus paid to the exporter, the assessment of liquidated damages against the exporter, and/or other administrative actions.

Goldthwait urged exporters to understand the importance of paying careful attention to entry documentation requirements when shipping to a country specified as eligible under the governing GSM-102/103 and SCGP program announcement, EEP invitation, etc. following transshipment through a non-eligible country. For example, prior to December 27,1991 under applicable USDA/CCC program announcements and invitations, documented entry into Estonia, Lithuania, or Latvia met the original requirements under export programs in which the Soviet Union was the targeted destination for exports.

However, since that date, new GSM-102 announcements and EEP invitations have been issued specifically naming the eligible destination(s) for entry documentation purposes. Exports can transit Estonia, Lithuania, Latvia, or other countries that were not eligible destinations, but exporters, with respect to such shipments, are required to obtain documents reflecting entry into those destinations specified in the applicable announcement or invitation.

CCC announcements/invitations are designed to meet specific objectives and to take account of differing circumstances in different countries. It is imperative that exporters take note of the specific terms and conditions governing each agreement with USDA/CCC concerning entry documentation requirements.

Exporters having questions may call the CCC Operations Division (FAS) at (202) 720-2150.

General information about CCC and USDA programs, resources, and services is available on the Internet. The address (url) for the FAS Home Page is

PR 0308-96


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