amendment to a contract which has been registered under GR-346 which affects the price shall subject the terms of sale to reexamination. (6) Sampling, Analysis, Checkweighing. Bags and Markings: (a) Ten (10) days prior to sampling the supplier must furnish contract specifications regarding quality, in duplicate, to the Program Operations Division, OGSM, USDA, Washington, D.C. 20250, together with the name and address of the persons, firms, or agency that will perform the sampling and analysis service and the location of the flour and dates available for sampling. (b) Sampling: The drawing of samples shall be performed by the Inspection Branch, Grain Division, AMS, or by an independent surveyor mutually acceptable to the importer and the supplier. The supplier shall request inspection of the flour upon arrival at port of loading to vessel. If the inspection certificate is dated more than fifteen (15) days prior to on-board date shown on the ocean bill of lading the supplier shall obtain additional inspection within fifteen (15) days of the on-board date shown on the ocean bill of lading showing that the flour was free of infestation. (c) Minimum rates for sampling: The following minimum rate applies to any delivery or portions of delivery for which a separate inspection has been requested. The minimum rate of sampling shall be one composite sample of flour for each 500,000 pounds or part thereof. A composite sample shall consist of all the products from 50 probes. Each of the 50 probes shall be obtained from a different bag of flour selected at random. When it is desired to increase the sampling rate because of nonuniformity of the flour or for other reasons, it shall be done by increasing the number (not size) of composite sample for each 500,000 pound portion. Each composite sample shall be tested separately in a laboratory to determine quality. The result of the analyses of composite samples will be averaged (weighted average) and certified on one certificate when no individual composite sample deviates from the contract specification for any factor by more than the tolerance in the following schedule: MAXIMUM DEVIATION OF A SAMPLE RESULT If one or more composite samples exceed the tolerance in the above schedule for any factor, each of these shall be certified separately. The remaining composite samples shall be averaged and certified on one certificate. (d) Recoopering: Recoopering of bags shall be the responsibility of the supplier and performed at his expense. (e) Analysis: The quality of the flour exported shall be determined by the Inspection Branch, Grain Division, AMS, or by a commercial laboratory mutually acceptable to buyer and seller. (f) Check sampling and analysis: If the services are performed by independent surveyors and commercial laboratories, OGSM may at any time request the Inspection Branch, Grain Division, AMS, to draw check samples and perform check analysis. The cost of such check sampling and analyses will be for the account of CCC. (g) Checkweighing: The flour to be exported shall be checkweighed at the mill at the time of loading to sealed cars or trucks for shipment to port of export, or at the port of export while the flour was at port under the control of the Port Authority, by the Inspection Branch, Grain Division, AMS, or by an independent weighmaster or an independent surveyor mutually acceptable to the importer and seller to determine (i) gross weight, (ii) net weight, and (iii) tare weight. (h) Bag specifications: Compliance with contract specifications and suitability of bags for export shall be determined by an independent surveyor. Each bag shall be marked with the name of the importing country and the purchase authorization number. (7) Schedule of Discounts on deficient protein and excess moisture or ash and either excess or deficient maltose: (protein, ash and maltose will be on the basis of 14% moisture). If the flour exported does not meet the contract quality specifications as shown on the Form CCC-362, the approved price shall be reduced by the following schedule of discounts: issued under reimbursement type purchase authorizations. (b) Ocean transportation. Purchase authorizations which authorize financing of ocean freight separately from the commodity cost shall authorize financing of ocean freight by the reimbursement method. CCC will reimburse the participant or assignee for dollar payments to suppliers of ocean freight on submission of the documents required by § 17.13(d). Letters of commitment will not be issued for ocean transportation purchase authorizations. (c) Assignment. (1) The right to receive reimbursement under a reimbursement type purchase authorization may be assigned by the participant to any bank, trust company or other financing institution in the United States by sending a completed Instrument of Assignment, Form CCC-335, in an original and one copy, to the assignee. (2) If the assignee accepts the assignment, the original and two copies of the Notice of Assignment, Form CCC-334, should be prepared by the assignee and together with one copy of the signed Instrument of Assignment, Form CCC-335, filed with the Controller. The copy of the signed Instrument of Assignment submitted with the Notice of Assignment must contain all of the signatures, seals, acknowledgements, etc., which appear on the original. The Controller will acknowledge receipt of the assignment. (d) Limitation on assignment. The assignment may be made only to a bank, trust company, or other financing institution in the United States. The assignment shall cover all amounts payable under the purchase authorization and not already paid, shall not be made to more than one party, and shall not be subject to further assignment, except that any such assignment may be made to one party as agent or trustee for two or more parties participating in the financing. Unless otherwise provided by the purchase authorization, the right of any such assignee to obtain reimbursement shall not be contingent on the deposit of currency by the importing country. (e) Protection of assignee. A supplement, modification, or revocation of a reimbursement type purchase authorization shall become effective as to the assignee on receipt by the assignee from the Controller of written notice of such supplement, modification, or revocation except that such supplement, modification, or revocation shall in no event affect or impair the right to obtain reimbursement to the extent of any payments made in reliance on the assignment by such assignee before receipt of such notice, or any irrevocable obligations incurred before receipt of such notice under a letter of credit issued or confirmed by such assignee in reliance on such assignment, for which the assignee has not been repaid by the participant (there shall be no obligation on the assignee's part to obtain such repayment). The term "purchase authorization", as used in any assignment of the right to receive reimbursement under a reimbursement type purchase authorization shall be deemed to include each such supplement or modification from and after receipt by the assignee from the Controller of written notice of the same, subject always, however, to the foregoing provisions preserving rights of reimbursement on behalf of the assignee. (f) Requests for reimbursement. All requests for reimbursement, supported by the required documentation, shall be submitted to the ASCS Office named in the reimbursement type purchase authorization or to the bank, trust company, or other financing institution in the United States holding an assignment acknowledged by CCC, not later than 210 days after expiration of the delivery period specified in such purchase authorization or any extension of such 210-day period granted by the General Sales Manager. When the request for reimbursement is submitted by a bank to CCC, a statement by the bank that the documents had been received within the 210-day period, and that payment to the supplier was authorized within such 210-day period, shall satisfy the requirements of this paragraph even though submission to CCC is made subsequent to the 210-day period. (g) Setoff of overpayments. Amounts improperly paid to any assignee by CCC may be set off against amounts due the assignee under the same reimbursement type purchase authorization. Such overpayments may also be set off against amounts due the same assignee under other reimbursement type purchase authorizations issued to the same participant, provided such assignee is notified of the amount to be set off at the time receipt of the assignment is acknowledged by CCC. (h) Deposit of foreign currency. When the deposit of foreign currency is required by the terms of the purchase authorization, the importing country shall provide, as hereinafter stated, for the deposit of foreign currency equivalent to dollars disbursed by CCC, except that foreign currency shall not be deposited for the amount of ocean freight differential. Deposits shall be at the rate of exchange for U.S. dollars provided in the applicable Agricultural Commodities Agreement. Documentation for each such deposit shall be furnished to the U.S. Ambassador's designee in the importing country and shall show the number of the purchase authorization, the date and amount of the related dollar disbursement, the exchange rate applicable to the deposit, and the amount of foreign currency deposited. Deposit shall be made immediately after receipt by the importing country or its designee of documentation showing the date and net amount of dollar reimbursement (after deduction of ocean freight differential, if any) by CCC to the importing country, or to its assignee if the right to receive reimbursement under the purchase authorization has been assigned. (i) Special provisions. Requirements for special documentation, and other provisions not otherwise specified in the regulations in this subpart for reimbursement type purchase authorizations will be set forth in the purchase authorizations. § 17.12 Adjustment refunds and insurance. (a) Adjustment refunds. All claims by importers for adjustment refunds arising out of terms of the contract or out of the normal customs of the trade, including arbitration and appeal awards, allowances, and claims for overpayment of ocean transportation, if such refunds relate to amounts financed by CCC, shall be settled by payment in U.S. dollars and such payment shall be remitted by the supplier to the CCC except refunds on cotton contracts. Such refunds on cotton contracts shall be made as provided in Appendix A. The remittance shall be identified with the date and amount of the original payment, the commercial letter of credit number, and the applicable purchase authorization number. (b) Insurance on c.i.f. sales for account of importer. The provisions of this paragraph (b) apply only to transactions under purchase authorizations that specifically authorize c.i.f. sales in which the cost of insurance is included in the net c.i.f. invoice price of the commodity financed. When the supplier furnishes insurance in favor of or for the account of the importer, the policies of certificates of insurance shall include a loss payable clause which provides that all claims shall be paid in U.S. dollars to the Controller except for insurance claims on cotton which shall be paid as provided in Appendix A. Such payments shall be accompanied by advice of the purchase authorization number, the names and addresses of the supplier and importer, the nature of the claim, the quantity of the commodity involved in the claim, the date of shipment, the bill of lading number, and the name of the vessel. CCC will credit the account of the participant or will refund local currency in accordance with paragraph (e) of this section. (c) Violation of Agricultural Commodities Agreements. Whenever the General Sales Manager determines that the participant has failed to comply with any agreement or committment made by it in connection with the Agricultural Commodities Agreement between the United States and the participant pursuant to which the importation took place, the participant shall pay in U.S. dollars to CCC promptly on demand by the General Sales Manager the entire amount financed by CCC or such lesser amount as the General Sales Manager shall demand. (d) Refund of ineligible amounts. If a sale has been financed and CCC determines that the sales price exceeds the maximum price permissible under § 17.7 or that the sale is otherwise in whole or in part, ineligible for financing, the supplier shall refund in dollars such ineligible amount to CCC promptly on demand. If not promptly refunded, such amount may be set off by CCC against monies it owes to the supplier. The making of any such refund to CCC, or any such setoff by CCC shall not prejudice the right of the supplier to challenge such determination in a court action brought against CCC for recovery of the amount refunded or set off. (e) Refund of local currency or reduction of amount due. Immediately after receipt by CCC of U.S. dollar payment from suppliers or from or for the account of the participant under this section, CCC will provide for payment to the importing country of the local currency equivalent of dollars received, if such local currency has been deposited for the particular transaction or will credit the participant's account as follows: (1) For payments under this section, except paragraph (c), the local currency refunded will be at the exchange rate agreed to by the Government of the United States and the government of the importing country in effect at the time the local currency is paid to or for the account of the importer except that if there has been a change in the exchange system or structure of the importing country, such payment shall be made at the agreed exchange rate which was in effect on the date of dollar disbursement for the transaction financed, and except further that local currency shall not be paid when the dollars are to be reauthorized for replacement of the commodity. (2) For payment under paragraph (c) of this section, the local currency refunded will be at the agreed exchange rate in effect on the date of the dollar disbursement for the transaction financed: Provided, That local currency will not be refunded to the extent that deposits of such currency have been made available to the importing country on a grant basis. (3) For refunds received by CCC under long-term credit agreements the participant's account shall be credited with the dollar amount refunded or otherwise recovered, and the participant notified accordingly. § 17.13 Documentation. (a) General. A request for payment submitted to a banking institution by a supplier and a request submitted to CCC for reimbursement of commodity or ocean transportation payment, or both, shall be supported, except as otherwise provided in the purchase authorization, by the documents required by this section, the purchase authorization, the letter of commitment, and Appendix B unless such documents were previously submitted to CCC. Such documents, however, need not be submitted when and to the extent that the Controller determines that the intended purpose of a document is served by documents otherwise available to or under the control of CCC or by alternate documents specified in such determination. The documents required herein are in addition to any other documents the supplier may be required to submit to a bank under the applicable letter of credit. The supplier must present documentation required by CCC to the banking institution for immediate payment or acceptance of a time draft. (b) Identification. (1) The following documents must be identified with the appropriate purchase authorization numbers or be readily identifiable therewith: (i) Documents submitted by a supplier to a bank with request for payment of commodity price (including ocean freight or ocean freight differential, as appropriate, and insurance when covered by the commodity price) and such documents when submitted to CCC for reimbursement. (ii) Documents submitted to CCC to obtain reimbursement under a purchase authorization for ocean freight, or for ocean freight differential, which shall be identified with the number thereof including the "OT" suffix, except that a copy of the ocean bill of lading may contain the related authorization commodity purchase number. (2) The supplier must put the appropriate purchase authorization number on all documents specified in this sec tion which are prepared under his control. He should arrange for the appropriate purchase authorization number to be put on all other required documents at the time of their preparation. (c) Documents required for financing commodity price. A detailed list of all documents required for each commodity is contained in Appendix B. Any additions, deletions or other changes will be stated in the purchase authorization or letter of commitment. General provisions relating to such documents are as follows: (1) Supplier's certificates. Signed originals of Form CCC-329 "Supplier's Certificate" are required for each request for payment as follows: (i) When ocean freight, or any portion of it, is financed by CCC, a Form CCC-329 is required from: (a) The supplier of the commodity covering the net invoice price for the commodity; and (b) The supplier of ocean freight covering the ocean freight or ocean freight differential, as appropriate, including any ocean freight financed on c. & f. or c.i.f. sales. (ii) When no part of the ocean freight is being financed by CCC, only one Form CCC-329 is required covering the supplier's net invoice price for the commodity. (2) Supplier's detailed invoice (2 copies). The copies of the supplier's detailed invoice submitted pursuant to Appendix B shall show quantity, description, contracted price, net total invoice price expressed in dollars, the amount for which financing is requested from CCC, the amount not eligible for financing by CCC, and basis of delivery (e.g. f.o.b. Vessel, c. & f.) of the commodity. For the reimbursement method of financing the invoice shall also be marked "paid". Whenever the Form CCC-106 provides for an ocean freight rate differential on a cost and freight or c.i.f. sale and authorizes financing of any portion of freight by CCC, the supplier's detailed invoice shall show a computation of the dollar amount of ocean freight differential. In arriving at the net invoice price there shall be deducted: ocean (i) The ocean freight, or portion thereof which is not being financed by CCC when ocean freight is included in the contracted price; (ii) All discounts from the supplier's contracted price through payments, credits, or other allowances made or to be made to the importer, his agent or consignee; (iii) All purchasing agents' commissions; (iv) All other amounts not eligible for financing. (3) Additional payment. A request for an additional payment submitted for a transaction for which all or part of the required documents have been previously submitted to the bank, shall be supported by the following documents as applicable: (i) A Form CCC-329 "Supplier's Certificate" and the supplier's detailed invoice, covering the additional amount requested. The supplier's invoice must show the date, serial number and the amount of the original invoice and the basis for the additional amount claimed; (ii) A statement signed by the ship's master or owner (or agent of either of them) showing exercise of the higherrated option, if the payment is stated to be due because of the exercise of a higher-rated option provided in a liner booking contract or charter party. or (4) Weight certificate. Whenever a copy of a weight certificate is required by these regulations in this subpart or the applicable purchase authorization, the supplier shall submit a weight certificate issued by or on authority of a State or other governmental weighing department, Chamber of Commerce, Board of Trade, Grain Exchange, or other independent organization firm providing public weighing services. Such organization or firm must have (i) qualified, impartial, paid employees who are stationed at the port facility or, if authorized under the applicable purchase authorization, other facility where weights customarily are determined, one of whom performed the weighing covered by the certificate, or (ii) qualified, independent, impartial, supervised, weighmasters stationed at the port facility or, if authorized under the applicable purchase authorization, other facility where weights are customarily determined, one of whom supervised the |