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The Dairy Export Incentive Program (DEIP) helps exporters of U.S. dairy
products meet prevailing world prices for targeted dairy products and destinations. Under
the program, the U.S. Department of Agriculture pays cash to exporters as bonuses,
allowing them to sell certain U.S. dairy products at prices lower than the exporter's
costs of acquiring them. The major objective of the program is to develop export markets
for dairy products where U.S. products are not competitive because of the presence of
subsidized products from other countries.
The DEIP was announced by USDA on May 15, 1985, and was
reauthorized by the Food, Agriculture, Conservation, and Trade Act of 1990; the
Uruguay Round Agreements Act of 1995; and the Federal Agriculture Improvement
and Reform Act of 1996. The United States, as part of its World Trade
Organization commitments resulting from the Uruguay Round Agreement on
Agriculture, has established annual export subsidy ceilings by commodity with
respect to maximum permitted quantities effective July 1, 1995, and maximum
budgetary expenditures effective October 1, 1995.
REMINDER TO DEIP
PARTICIPANTS: Exporters wishing to
apply for a bonus under CCC’s DEIP
program are reminded that it is the
responsibility of all participants to
review, and fully acquaint themselves
with, all regulations, Invitations for
Offers, Program Announcements, and
Notices to Participants relating to the
DEIP program. In addition, exporters
are reminded of the following:
-Per
7 CFR 1494.401 and the applicable
Invitation for Offers, exporters
must furnish performance security
prior to applying to CCC for a
bonus;
-Per 7 CFR
1494.301(g) and the applicable
Invitation for Offers, exporters who
have not yet demonstrated their
ability to participate successfully
in the DEIP must request bonus
payment under “Option B” in their
application;
-Per the
applicable Invitation for Offers,
exporters previously qualified to
participate in DEIP must supply
their Dun and Bradstreet (DUNS)
number to CCC prior to applying for
a bonus.
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