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NOTICE TO PROGRAM PARTICIPANTS

Notice Number: GSM-FY-96-10

EEP -FY-96-8

DEIP-FY-96-8

SUBJECT: GSM-102/103 AND EXPORT SUBSIDY PROGRAMS: TERMINATION OF THREE NOTICES TO PARTICIPANTS

WASHINGTON, Aug. 23, 1996 -- Christopher E. Goldthwait, general sales manager for the U.S. Department of Agriculture's Foreign Agricultural Service and vice president of the Commodity Credit Corporation (CCC), today announced the termination and withdrawal from circulation of three previously issued notices to participants in the CCC's Export Credit Guarantee Program (GSM-102), the Intermediate Credit Guarantee Program (GSM-103), the Export Enhancement Program (EEP) and the Dairy Export Incentive Program (DEIP).

The notices that are being terminated and withdrawn are:

1. GSM-92-9 (August 25, 1992) titled "GSM-102: GUARANTEE FEES FOR COVERAGE OF SALES TO INDEPENDENT STATES OF THE FORMER SOVIET UNION." This notice replaced CCC's earlier Notice GSM-91-5, released September 27, 1991, and updated the fee schedule for GSM-102 payment guarantees issued for sales to Independent States of the Former Soviet Union.

2. GSM-FY-93-2 (March 14, 1993) titled "ALGERIAN GOVERNMENT MONITORS IMPORTS." This notice alerted program participants to the import monitoring procedures established by Algerian authorities, and advised U.S. exporters contemplating or undertaking sales to Algeria under the GSM-102 or 103 programs to become fully informed on the status of this import monitoring, and to consider how they might best protect their interests.

3. GSM-FY-93-4 and EEP-FY-93-2 (August 6, 1993) titled "EEP AND GSM-102 WHEAT AND WHEAT FLOUR SALES TO REPUBLIC OF YEMEN." This notice alerted program participants of information received by USDA that buyers of wheat and flour for shipment to Yemen must obtain the approval of the Ministry of Supply and Trade of that country. It advised U.S. exporters under EEP or GSM-102 to assure themselves that their buyers in Yemen have been duly authorized by the Ministry.

Goldthwait said that the first notice listed above has become outdated since CCC is applying the same fee schedule to payment guarantees issued for sales to all destinations under the GSM-102 program. Goldthwait explained that the circumstances that gave rise to the second and third notices are not now, to the best of USDA's knowledge, adversely affecting CCC program exports to Algeria or Yemen. However, he stressed that circumstances can change suddenly in any country targeted under CCC programs, and urged that exporters take precautions to protect themselves against the eventuality that they may be precluded from shipping under export sales contracts, or that shipped goods may not be permitted to enter the eligible country(ies). He noted that guarantee fees paid by exporters under GSM-102/103 programs are not normally refundable, and that EEP and DEIP export bonuses are not earned, and may not be retained, by exporters until product enters an eligible country. In addition, liquidated damages may be payable to CCC under the latter two programs if product is not exported in accordance with the agreement with CCC.

For further information on these matters, contact L.T. McElvain, Director, CCC Operations Division at (202) 720-6211.

General information about CCC and USDA programs, resources, and services is available on the Internet. The address (url) for the FAS Home Page is http://www.fas.usda.gov.

PR 0356-96



 

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