Notice Number: GSM-FY-96-10
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The notices that are being terminated and withdrawn are: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Goldthwait said that the first notice listed above has become outdated since CCC is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