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INVITATION
FOR OFFERS TO ACQUIRE A CCC BONUS
DAIRY
EXPORT INCENTIVE PROGRAM
7
CFR Part 1494
INVITATION
FOR OFFERS FOR CHEESE
INVITATION
NO. GSM-511A-56
January 5, 2004
This
Invitation, GSM-511A-56, 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 Subpart 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.
Depending
upon the packaging and the type of cheese to be exported, this Invitation
provides interested exporters two methods to obtain a CCC bonus. For cheese that
qualifies under the varietal cheese option, exporters may apply for an announced
bonus. For other eligible cheese, bonuses are available on a bid basis.
For
purposes of the varietal cheese option under this Invitation, announced bonus
levels and terms will be stated periodically by CCC Program Announcement.
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 that are 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 a region. Item 10 of the
offer must clearly state the region, if the offer is for the whole regional
group, or the named countries or ports, if the offer is for one or more
countries in a regional group. 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 its offer to CCC for a bonus, to the best of its
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
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, Israel, Jordan, Kenya, Kuwait, Lebanon, Lesotho, Madagascar, Malawi,
Mali, Malta, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger,
Nigeria, Oman, Qatar, Rwanda, Sao Tome & Principe, Saudi Arabia, Senegal,
Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Tunisia, Turkey, Uganda,
United Arab Emirates, Yemen, Zambia, Zimbabwe
Caribbean,
Central and South America:
Argentina, Bahamas, Belize, Bermuda, Bolivia, Brazil, Cayman Islands, Chile,
Colombia, Dominica, Dominican Rep., Ecuador, El Salvador, Grenada, Guatemala,
Guyana, Haiti, Honduras, Jamaica, Mexico, Netherlands Antilles, Nicaragua,
Panama, Peru, St. Lucia, St. Vincent, Trinidad & Tobago, Venezuela
Asia
and Former Soviet Union:
Armenia,
Azerbaijan, Bangladesh, Belarus, China,
Georgia, Hong Kong, India, Indonesia, Kazakhstan, Kyrgyzstan, Malaysia, Moldova,
Pakistan, Philippines, Russia,
Singapore, Sri Lanka, Taiwan, Tajikistan, Thailand, Turkmenistan, Ukraine, Uzbekistan
B.
ELIGIBLE COMMODITY:
VARIETAL
CHEESE OPTION
- U.S. produced cow's milk mozzarella cheese and cow's milk cheeses that conform
to the description for Harmonized Tariff Schedule code 0406.90. Eligible cheeses
may contain added food. The food must be entirely produced in the United States
and must be added to the curd during cheese production. Such cheeses cannot be
"cold-packed" or processed.
Added
food must be safe and wholesome, and free from undesirable flavors. They must
impart the desired characteristic to the finished cheese. Such added food may
include properly prepared fresh, cooked, canned or dried vegetables or fruits;
cooked or canned meats, relishes, pickles, or other suitable foods.
Eligible
cheddar cheese must be aged for at least 9 months.
Offers
submitted for varietal cheese must be packaged as follows:
For
cheddar cheese: packs of 4 kilograms and under.
For all other cheese varieties: packs of 1 kilogram and under.
BID
BONUS OPTION -
U.S. produced cheeses that meet Food and Drug Administration Standard and
Identity as referenced in the Code of Federal Regulations, Title 21 for:
Cheddar
cheese: Part 133, Section 113;
Colby cheese: Part 133, Section 118;
Cream cheese: Part 133, Section 133 and 134;
Gouda cheese: Part 133, Section 142;
Monterey jack cheese: Part 133, Section 153 and 154;
Mozzarella cheese: Part 133, Section 155, 156, 157 and 158;
Processed American cheese: Part 133, Section 169; and
Swiss and Emmentaler cheese: Part 133, Section 195
In
addition, Cheddar cheese shall be U.S. Grade A or better Cheddar cheese that
meets the U.S. Standards for Grades of Cheddar cheese issued May 1, 1956.
Colby
cheese shall be U.S. Grade A or better Colby cheese that meets the U.S.
Standards for Grades of Colby cheese issued March 31, 1995.
Monterey
jack cheese shall be U.S. Grade A or better Monterey jack cheese which meets the
U.S. Standards for Grades of Monterey jack issued May 10, 1996.
Swiss
and Emmentaler cheese shall be U.S. Grade A or better Swiss and Emmentaler
cheese which meets the U.S. Standards for Grades of Swiss and Emmentaler cheese
issued September 28, 1987.
Mozzarella
cheese shall meet the USDA specifications for Mozzarella cheese as issued
January 7, 1980.
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 allocation in Paragraph A.
D.
MAXIMUM QUANTITY:
As specified in (A) exclusive of tolerances [Sec. 1494.501 (a)].
Global
Allocation
- Bid Bonus Option:
3,030 metric tons
- Varietal
Cheese Option:
0 metric tons
E.
SPECIFICATIONS:
Varietal
Cheese Option
- offers must include the type of cheese and the specifications agreed to by the
Eligible Exporter and the Eligible Buyer, including specifications for labeling.
Bid
Bonus Option
- offers may contain only one variety of cheese, and must include the
specifications agreed to by the Eligible Exporter and the Eligible Buyer. Offers
for Mozzarella cheese must state the type of mozzarella as defined by the USDA
specifications for Mozzarella cheese issued January 7, 1980. For Cream, Gouda or
processed American cheeses, the offer must include, at a minimum, the moisture
and fat content of the cheese.
F.
UNIT OF MEASURE: Metric
tons of 2,204.623 pounds [Sec. 1494.201(ee)].
G.
COAST 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 maintain and, if requested, provide 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.
QUALITY AND WEIGHT CERTIFICATION REQUIREMENTS:
VARIETAL
CHEESE OPTION
- when submitting documentation for payment of CCC bonus under varietal cheese,
exporters must provide the following signed certified statement on company
letterhead for each export shipment:
"I
certify, to the best of my knowledge and belief, that the cheese product
exported in accordance with DEIP Agreement (insert agreement number) and
Bill of Lading # (insert B/L number):
(1)
conforms to the description for Harmonized Tariff Schedule code 0406.90, and is
safe and wholesome, and free from undesirable characteristics and flavors; OR
(1)
is mozzarella cheese that is safe and wholesome, and free from undesirable
characteristics and flavors;
(2)
comprises (number) cases containing (number) packs of (insert
package weight) each with a total weight, net packaging, of (insert
weight net packaging); and
(3)
conforms to the quality specifications as given in Item 9 of the Offer. [Sec. 1494.501(c)] Further, certifications of entry as
covered in Section P. of this Invitation are required to be obtained by
exporters.
BID
BONUS OPTION -
when submitting documentation for payment of CCC bonus under bid bonus offers,
exporters must provide the following weights and grades certificates:
Official
Inspection Certificate, Cheese 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 not more than 180 days prior to the date of the export for
cheese. Lots of cheese 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 form DA-201 and
dated subsequent to the original certificate [Sec. 1494.201(y)].
Official
weight certificate, Cheese 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 cheese covered by an
original grading certificate shall not be subdivided unless the delivered lots
are accompanied by a "take-off" certificates issued by the
Agricultural Marketing Service on form DA-201 and dated subsequent to the
original certificate [Sec. 1494.201(z)].
J.
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 or 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.
K.
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 port(s) of discharge stated in the offer to CCC where
the offer by the Eligible Exporter has specified delivery to specific
country(ies) and 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).
L.
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 the dairy product was lost after leaving the United States.
M.
PAYMENT OF BONUS VALUE:
An electronic transfer of funds issued in U.S. dollars [Sec. 1494.701 (a)].
N.
EXPIRATION DATE:
June 30, 2004 [Sec. 1494.501(a)] with final submission of bids on June
29, 2004, unless this Invitation is formally withdrawn by CCC.
O.
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 7 CFR
Part 1493 for DEIP sales covered under a DEIP region must comply with all CCC
Export Credit Guarantee Program requirements.
(4)
(Applies only to Bid Bonus Offers) CCC may accept a Cheese 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 Sec.
1494.701(b).
(5)
On rail and truck shipments of butterfat 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(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 its 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-56, supersedes Invitation GSM-511A-53 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). Varietal cheese offers shall state in item 6 the dollar
amount of the Announced CCC Bonus in effect at the time of submission of the
varietal cheese offer to CCC. 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) 720-3224 or 720-6211
FAX No. (202) 720-0938
/s/
January 5, 2004
----------------------- ------------------
P.
Mark Rowse
Director
Operations Division
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