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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-53
Effective September 17, 2002
This Invitation,
GSM-511A-53, 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:
Asia: Bangladesh, China,
Georgia, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines,
Singapore, Sri Lanka, Taiwan, Thailand
FSU: Armenia,
Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan,
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: 757
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
that 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, 2003 [Sec. 1494.501(a)] with final submission of bids on June
27, 2003, 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-53, supersedes Invitation GSM-511A-51and 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-S1400 Independence Ave., S.W.
Washington, D.C. 20250-1035
Tel. (202) 720-6211 or 720-3224
FAX No. (202) 720-0938
/s/ September 17, 2002
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L.T. MCELVAIN
Director
Operations Division
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