On November 13, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) announced the credit guarantees for export sales of U.S. agricultural commodities under the Commodity Credit Corporation’s (CCC) Export Credit Guarantee Program (GSM-102) for fiscal year 2010.
The GSM-102 program helps ensure that credit is available to finance commercial exports of U.S. agricultural products to developing countries, while providing competitive credit terms in these countries. Under the program, the CCC reduces the financial risk to lenders by guaranteeing payments due from approved foreign banks to exporters or financial institutions in the United States.
The credit guarantees include the following:
Caribbean - Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, British Virgin Islands, Cayman Islands, Dominica, Dominican Republic, Grenada, Guadeloupe, Guyana, Haiti, Jamaica, Montserrat, Netherlands Antilles, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago
All commodities: $75 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million
Total allocated amount: $100 million.
Central America - Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama
All commodities: $75 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million
Total allocated amount: $100 million.
China/Hong Kong
Total allocated amount: $50 million.
Eurasia Region - Kazakhstan, Russia, Ukraine
All commodities: $100 million.
All commodities except poultry meat (frozen or chilled including parts thereof, muscle meat) and processed poultry meat products (products from poultry and mixtures thereof): $25 million
Total allocated amount: $125 million.
Mexico
All commodities: $75 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million.
Total allocated amount: $100 million.
Middle East and North Africa - Afghanistan, Algeria, Bahrain, Egypt, Iraq, Israel, Lebanon, Libya, Jordan, Kuwait, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Tunisia, United Arab Emirates
All commodities: $50 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million.
Total allocated amount: $75 million.
South America Region - Argentina, Bolivia, Chile, Colombia, Ecuador, Paraguay, Peru, Uganda, Venezuela
All commodities: $75 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million.
Total allocated amount: $100.
South Asia Region - Bangladesh, India, Sri Lanka
Total allocated amount: $25 million.
South Korea
Total allocated amount: $200 million.
Southeast Asia Region - Cambodia, Timor-Leste, Indonesia, Malaysia, Papua New Guinea, Philippines, Singapore, Thailand, Vietnam
All commodities: $75 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million.
Total allocated amount: $100 million.
Sub-Saharan Africa Region - Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Cote d’Ivoire, Republic of the Congo, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Gabon, Ghana, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierre Leone, South Africa, Swaziland, Tanzania, Togo, Uganda, Zambia, Zimbabwe
All commodities: $50 million.
All commodities except cotton, feed grains, meat and meat products (beef, poultry, and pork), oilseeds, protein meals, rice, vegetable oils, and wheat: $25 million.
Total allocated amount: $75 million
Turkey
Total allocated amount: $125 million.
COMMODITY ALLOCATIONS
Exporters may apply for credit guarantees on a first-come, first-served basis beginning at 9 a.m. EST on November 20. The guarantees are to cover sales of any of the commodities specified in the GSM list of commodities.
The allocation does not assign dollar amounts to any of the commodities specified in the GSM list of commodities, providing buyers and sellers maximum flexibility in arranging the size of their transactions within the scope of the overall allocation.
TERMS OF COVERAGE
In accordance with 7 CFR 1493.20(v)(1), this announcement offers coverage on a free-alongside-ship or free-on-board basis. If commodities are sold on a cost-and-freight or cost-insurance-and-freight basis, coverage on a cost-and-freight basis to point of ocean transportation or international air carrier discharge is also available in accordance with 7 CFR 1493.20(v)(2). Coverage is not available under this announcement for insurance costs.
Coverage of up to 98% of the principal is offered on credit terms from 30 days to 3 years, except for solid wood products, wood pulp, and wood chips, for which coverage is offered on credit terms of up to 720 days. Adjustable interest coverage is also offered in accordance with FAS program announcement PR 0138-08 issued September 4, 2008, or as superseded.
ELIGIBLE BANKS
Any bank approved by CCC for the countries listed above is eligible. A complete list of eligible banks is available online. Exporters are advised to obtain from their foreign buyer the name of the CCC-approved foreign bank that will be opening the letter of credit.
GUARANTEE FEE RATES
Pursuant to 7 CFR 1493.70, for a complete list of fees refer to the CCC GSM-102 Guarantee Fee Rate Schedule. The fees are listed by risk category. A complete list of countries and their associated risk category is available online.
SPECIAL TERMS AND CONDITIONS
Sales must be registered with CCC by September 30, 2010. Exporters’ contractual arrangements must call for exports within 90 days of the date of registration or by November 30, 2010, which ever date is earlier. Applicable federal regulations (7 CFR 1493.60(i)) provide that an exporter may request an extension of time to export. Under current market conditions, however, CCC does not anticipate granting any such request unless the exporter demonstrates to CCC that circumstances beyond the exporter’s control preclude exportation within the original time to export contemplated under the guarantee.
POINT OF CONTACT
For further information, contact: FAS, Registrations and Operations Branch; phone: (202) 720-3224; e-mail:
gsm.registrations@fas.usda.gov.
This entry was posted on Tuesday, November 17, 2009 at 9:42 am and is filed under Europe, Hong Kong, South Asia, Central America, Sub-Saharan Africa, South America, Middle East, GSM-102, South Korea, China, USDA, Turkey, Africa, Caribbean, Mexico. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Source: usda.com
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