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INVITATION FOR OFFERS TO ACQUIRE A CCC BONUS
DAIRY EXPORT INCENTIVE PROGRAM
7 CFR Part 1494
INVITATION FOR OFFERS FOR NONFAT DRY MILK
INVITATION NO. GSM-511A-55
Effective August 15, 2003
This Invitation, GSM-511A-55, is hereby issued pursuant to 7 CFR Part 1494, Subpart D, Dairy Export Incentive Program (DEIP) Operations. Subpart D states that, unless otherwise provided therein, the program operations provisions of 7 CFR Part 1494, Subpart B, will also apply to DEIP. In the event of any inconsistency between the terms and conditions of this Invitation and the terms and conditions of Subparts B or D, this Invitation will prevail for the purposes of Agreements entered into pursuant to this Invitation. Any section references are to sections within Subpart B.
Interested exporters must qualify under Sec. 1494.301 prior to submitting an offer to CCC and must furnish performance security to CCC as provided in Sec. 1494.401 and this Invitation.
The following are the requirements of and the specific terms and conditions applicable to this Invitation:
A. ELIGIBLE COUNTRIES: This Invitation includes 3 regional groups listed below. The list also indicates which Eligible Countries are included within each regional group [Sec. 1494.201(o)]. The Eligible exporter may elect to offer for the whole regional group, or name one or more ports or countries within the region. Item 10 of the offer must clearly state the region, if the offer is for the whole region, or the named countries or ports, if the offer is for one or more countries in a region. If the exporter elects to offer for the whole region, or more than (1) named country within the region, the exporter must include, as item 21 of their offer to CCC for a bonus, to the best of their knowledge, the intended destination(s) and the approximate quantities for each destination, when multiple destinations are selected. [Sec. 1494.501(c)(10) and (c)(15)].
REGIONAL GROUPS
Caribbean, Central and South America:
Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, Cayman Islands, Chile, Colombia, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, St. Lucia, St. Vincent, Trinidad and Tobago, Venezuela
Africa and Middle East:
Algeria, Angola, Bahrain, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Canary Islands, Cape Verde, Central African Republic, Chad, Congo, Cote d'Ivoire, Cyprus, Djibouti, Egypt, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Israel, Jordan, Kenya, Kuwait, Lebanon, Lesotho, Madagascar, Malawi, Mali, Malta, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Oman, Qatar, Republic of Congo, Rwanda, Sao Tome & Principe, Saudi Arabia, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Tunisia, Turkey, Uganda, United Arab Emirates, Yemen, Zambia, Zimbabwe
Asia and Former Soviet Union:
Asia: Bangladesh, China, Hong Kong, India, Indonesia, South Korea, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Vietnam
FSU: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan
B. ELIGIBLE COMMODITIES: Non-fat dry milk, meeting the U.S. Standards for Grades of Nonfat Dry Milk (spray process) under 7 CFR Part 58 [Sec. 1494.201(p) and (gg)]. The Nonfat Dry Milk must be no more than 90 days old at time of shipment as evidenced by the Dry Milk Grading
Certificate and bills of lading. The exporter's offer to CCC for a bonus must clearly state if the nonfat dry milk to contains any of the additives list in the following provisions:
(1) Non-fat dry milk may contain up to 0.5 percent added edible, food grade starch provided the Dry Milk Grading Certificate, DA-201 issued by AMS contains the following statement. "The nonfat dry milk with added starch covered by this certificate meets all of the composition requirements of U.S. Extra Grade".
(2) Non-fat dry milk may contain added Vitamin B2/Riboflavin, Vitamin B12/Clanocobalamin, Folic Acid, Vitamin C, Iron, and /or Zinc provided the Dry Milk Grading Certificate, DA201 issued by AMS Contains the following statement, “ The non-fat dry milk with the added Vitamin B2/Riboflavin, Vitamin B12/Clanocobalamin, Folic Acid, Iron, and /or Zinc covered by this certificate meets all of the composition requirements of U.S. Extra Grade.”
C. ELIGIBLE BUYER: Any buyer as per Sec. 1494.201(n) except as provided below.
(1) The Eligible Buyer may be located in any country within or outside the specified regional group in Paragraph A.
D. MAXIMUM QUANTITY: As specified in paragraph (A) exclusive of tolerances [Sec. 1494.501(a)].
Global Allocation: 22,733 metric tons
E. SPECIFICATIONS: Offers may contain any single grade of nonfat dry milk powder and must include any additional specifications agreed to by the Eligible Exporter and the Eligible Buyer.
F. UNIT OF MEASURE: Metric tons of 2,204.623 pounds [Sec. 1494.201(ee)].
G. COASTS OF EXPORT: For shipments by ocean vessel, the exporters should report the coasts of export as "All US Coasts." However, if transshipped through a Canadian port on the St. Lawrence River, the port must be specified. Furthermore, if shipped overland, the point of export must be specified. [Sec. 1494.501(c)(8)].
H. TRANSSHIPMENT: Allowed. Proposed transshipment routes must be stated in the offer to CCC. Transshipment routes are subject to the following requirements:
(1) Transshipment through a Canadian port on the St. Lawrence is allowed if the eligible commodity has been shipped from the customs territory of the U.S. via the Great Lakes coastal range and its identity has been preserved until shipped from Canada.
(2) Transshipment through one or more Eligible Country(s) to another Eligible Country as defined in paragraph A, is allowed.
(3) Transshipment through an Ineligible Country to an Eligible Country is allowed if the transshipment route in the offer to CCC is approved. If approved, the eligible exporter must furnish to CCC original certifications from the eligible buyer or its duly authorized customs or port official showing: (a) the transshipment port, export carrier, date of discharge of the eligible commodity at the transshipment port and the quantity discharged; and (b) the date of entry into the Eligible Country and the mode of shipment from the transshipment port to the Eligible Country. If the information required in (a) and (b) is provided in two separate certifications, the certification of entry into the Eligible Country must reference the discharge certification at the transshipment port.
I. OFFICIAL INSPECTION CERTIFICATE: Dry Milk Grading Certificate, DA-201, original or original copy only, issued by the USDA, Agricultural Marketing Service, showing all the specifications and grade contained in the offer to CCC.
The certificate must indicate that the grading and sampling was performed by the
Agricultural Marketing Service prior to the date of export for nonfat dry milk. Lots of nonfat dry milk covered by an original grading certificate shall not be subdivided unless the delivered lots are accompanied by a "take-off" certificate issued by the Agricultural Marketing Service on either form DA-201 and dated subsequent to the original certificate [Sec. 1494.201(y)].
J. OFFICIAL WEIGHT CERTIFICATE: Dry Milk Grading Certificate, form DA-201, original or original copy only, issued by USDA, Agricultural Marketing Service, showing clearly that the lots represented by the certificate were sampled and check weighed by the Agricultural Marketing Service and showing clearly a "net weight" certified by the Agricultural Marketing Service. Official grade and weight can be certified on the same certificate. Lots of nonfat dry milk covered by an original grading certificate shall not be subdivided unless the delivered lots are accompanied by a "take-off" certificate issued by the Agricultural Marketing Service on either form DA-201 and dated subsequent to the original certificate [Sec. 1494.201(z)].
K. PERFORMANCE SECURITY REQUIREMENT: The amount of performance security under either "Option A," which allows the eligible exporter to request the bonus after export of the eligible commodity from the U.S. but before entry into the eligible country, or "Option B," which allows the eligible exporter to request the bonus only after the eligible commodity has entered into the eligible country, is the product of: 10 percent of the sales contract unit price multiplied by 95 percent of the quantity of the eligible commodity for which the eligible exporter wishes to receive a CCC bonus.
Example: If an exporter requests a bonus to cover an export sale of 500 metric tons with a sales contract unit price of $1,900.00 per metric ton, the performance security calculation is as follows:
Option A & B Formula: (.10 x unit price) x (quantity x .95)
Example: (.10 x $1,900.00) x (500 MT x .95) = $90,250
When calculating performance securities, please drop all cents, do not round up.
L. OTHER REQUIREMENTS:
(1) In the event shipment is made in a container, the certification of entry required by Sec. 1494.401(f)(2) must include the container number, and in the event of relay of the container to another vessel, the name of the vessel on which the container was loaded at the U.S. port and the name of the vessel on which the container arrived to the destination country.
(2) For regional groups, the certification of entry required by Sec. 1494.401 (f)(2) must show entry into the country(ies) or port(s) of discharge stated in the offer to CCC where the offer by the Eligible Exporter has specified delivery to specific countries or port(s) of discharge within the regional group. Otherwise, the certificate of entry may show entry into any of the Eligible Countries within that regional group.
(3) Where the Eligible Buyer is not located in any of the countries within the regional group, a certification of entry issued by the Eligible Buyer is not acceptable to satisfy Sec. 1494.401(f)(2).
M. LIQUIDATED DAMAGES: The rate for liquidated damages is 10% of the sales contract unit price. [Sec. 1494.801(c)]. Liquidated damages will be assessed against the exporter unless the exporter can establish that such failure to perform was due to actions taken by the U.S. Government or that the dairy product was lost after leaving the United States.
N. PAYMENT OF BONUS VALUE: An electronic transfer of funds issued in U.S. dollars. [Sec. 1494.701(a)]
O. EXPIRATION DATE: June 30, 2004 [Sec. 1494.501(a)] with final submission of bids on June 27, 2004, unless this Invitation is formally withdrawn by CCC.
P. OTHER TERMS AND CONDITIONS:
(1) Offers based on sales contracts dated prior to the issuance of this Invitation are eligible for consideration, subject to a case-by-case review by CCC.
(2) Under this invitation, exporters that have furnished performance security under "Option A" will not be required, as a matter of routine, to provide CCC evidence of entry under Sec. 1494.401(f)(2) to support a request for cancellation of performance security. However, exporters must still obtain the certification of entry provided for in Sec. 1494.401(f)(2) and maintain it and provide CCC access to it if requested, as required by Sec. 1494.1001(b)(2). For the purposes of this Invitation, an exporter that has furnished performance security under "Option A" need not submit to CCC evidence of entry as a condition of earning or retaining a bonus, unless CCC specifically requests the exporter to submit such evidence of entry [Sec. 1494.701(b) and 1494.801(a)(3)].
(3) Exporters intending to use the CCC Export Credit Guarantee Programs, under 7CFR1493, for a DEIP region must comply with all CCC Export Credit Guarantee program requirements.
(4) Where determined appropriate by CCC, CCC may notify an exporter that CCC will grant such exporter a grace period for shipping outside the delivery period (shipment basis) established in a particular DEIP Agreement between CCC and the exporter. In the event that CCC determines that it is appropriate to allow for a grace period in connection with a particular Agreement, CCC will notify the exporter of the grant of such a grace period (and the length thereof) in CCC's written confirmation of its acceptance of the exporter's offer for a DEIP bonus.
If CCC has granted a grace period in connection with a DEIP Agreement, and the shipment date shown in the documents required under Sec. 1494.701 is outside the delivery period (shipment basis) established in the Agreement between the exporter and CCC, but within the grace period specified in CCC's confirmation of acceptance, the exporter may submit, and CCC will accept, a request for bonus payment, provided the request is otherwise in accordance with Sec. 1494.701.
In the event that the shipment date is outside the delivery period (shipment basis) established in the Agreement, and CCC has not granted a grace period or the shipment date is also outside the specified grace period, then the exporter must request an amendment of the Agreement with CCC in accordance with Sec. 1494.801(I).
Any grace period granted by CCC shall apply only to the original delivery period (shipment basis) established in an Agreement. Should an Agreement subsequently be amended, in accordance with Sec. 1494.801(I), CCC will notify the exporter if the grace period will no longer remain in effect. Irrespective of any grace period specified in CCC's written confirmation of acceptance, the date of shipment may not be prior to the effective date of the Agreement.
(5) CCC may accept a Dry Milk Grading Certificate, DA-201, which does not show that the lots represented by the certificate were sampled and check weighed by the Agricultural Marketing Service (AMS) and/or which does not clearly show a "net weight" certified by AMS. If CCC accepts the certificate under these circumstances, its obligation shall be to pay the bonus on 95 percent of the weight determined in accordance with 7 C.F.R. 1494.701(b).
(6) On rail and truck shipments of milk powder to Mexico, compliance with delivery periods will be based on the date the carrier received the railcar or truck/trailer as documented by the relevant bill of lading. In accordance with Section 1494.501 "Submission of offers to CCC" paragraph (c)(16), offers to CCC for a bonus must state the delivery period in the sales contract. If the exporter has a sales contract that specifies a delivery period based on bill of lading dates the exporter must note that in their offer to CCC for a bonus. If the exporter has a sales contract that specifies a delivery period based upon entry into Mexico, the exporter must provide the anticipated bill of lading dates for the railcars or truck/trailers in addition to the contractual delivery period. All other documentary requirements for payment and compliance with the Agreements remain unchanged.
This Invitation, GSM-511A-55, supersedes Invitations, GSM-511A-52 and any amendments thereto.
REQUESTS FOR PAYMENT OF THE BONUS:
Exporters submitting requests to CCC for payment of the bonus must comply with requirements of Sec. 1494.701(c), (d), and (g) and this Invitation. Exporters shall submit request to the address listed below. Further information is available by calling (816) 823-1151 or (816) 823-1155.
CCC
CRD/FRD
6501 Beacon Drive
Stop 8758
Kansas City, MO 64133-4676
SUBMISSION OF OFFERS AND INQUIRIES:
Exporters submitting offers to CCC in response to this Invitation must comply with the requirements of Sec. 1494.501. All offers must follow the format specified in Sec. 1494.501(c).
Exporters shall submit offers or modifications or withdrawals thereof to the address, telephone, or facsimile numbers specified below. Telephonic offers must be confirmed in writing immediately thereafter by facsimile. The deadline for submitting offers, modifications or withdrawals is 3:00 p.m., Washington, D.C. time, on the day the offer is to be considered.
Export Credits
Foreign Agricultural Service
U.S. Department of Agriculture
Room 4528-S
1400 Independence Ave., S.W.
Washington, D.C. 20250-1035
Tel. (202) 720-6211 or 720-3224
/s/ Aug. 15, 2003
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Martha Keplinger
Acting Director
Operations Division
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