[Federal Register: June 27, 2007 (Volume 72, Number 123)]
[Notices]
[Page 35217-35218]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jn07-40]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Warehouse Operators Approved Under Commodity Credit Corporation
Storage Agreements--CCC Policy on Making Payments and Interest on
Delayed Payments
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: The Commodity Credit Corporation (CCC) pays warehouse
operators approved under the Uniform Grain and Rice Storage Agreement,
Peanut Storage Agreement, Cotton Storage Agreement and the Sugar
Storage Agreement storage, handling, and other associated costs for
commodities forfeited to CCC. Payments made by CCC are subject to the
Prompt Payment Act of 1982, as amended; the Debt Collection Improvement
Act of 1996; and the Federal Acquisition Regulations. To be fully
compliant with these regulations, effective June 30, 2007, warehouse
operators will be required to certify CCC payment invoices before the
release of payment funds by CCC.
DATES: Effective Date: June 30, 2007.
FOR FURTHER INFORMATION CONTACT: Howard Froehlich, Chief, Program
Development Branch, Warehouse and Inventory Division, Farm Service
Agency, USDA, STOP 0553, 1400 Independence Avenue, SW., Washington, DC
20250-0553. Telephone: (202) 720-2121. E-mail:
Howard.Froehlich@wdc.usda.gov. Persons with disabilities who require
alternative means for communication (Braille, large print, audiotape,
etc.) should contact the USDA Target Center at (202) 720-2600 (voice
and TDD).
SUPPLEMENTARY INFORMATION: CCC acquires title to agricultural
commodities in the administration of its programs under various
circumstances. For instance, under Title I of the Farm Security and
Rural Investment Act of 2002, CCC makes marketing assistance loans to
producers that can lead to forfeiture of the commodities to CCC. To
provide for the storage of various commodities it acquires, CCC enters
into storage agreements with private warehouse operators. Section 5 of
the CCC Charter Act (7 U.S.C. 714c) requires that in purchasing,
selling, warehousing, transporting, or handling agricultural
commodities, CCC is to use, to the maximum extent practicable, the
usual and customary channels, facilities, and arrangements of trade and
commerce. In contracting for warehouse services, CCC must be compliant
with the Prompt Payment Act of 1982, as amended; the Debt Collection
Improvement Act of 1996; and the Federal Acquisition Regulations. To be
fully compliant with these regulations, effective June 30, 2007,
warehouse operators will be required to certify CCC payment invoices
before the release of payment funds by CCC.
CCC periodically prepares and issues invoices and payments for
accrued storage and handling charges for warehouse-stored CCC-owned
commodities recorded into CCC's inventory or forfeited to CCC through
warehouse operators operating under the terms and conditions of a CCC
Storage Agreement. This Notice announces a change in the method used by
warehouse operators for invoice certification and in the timing of
payments made by CCC. All invoices must be reviewed and certified by
the warehouse operator before payments can be made. Endorsement of the
certification of the invoice represents the warehouse operator's
verification that the charges represented by the invoice and
disbursement are due and owing. Criminal and civil penalties may be
assessed for false certification. Periodic invoices will continue to be
prepared by CCC; however, payments will now be made only after review,
correction, and certification by the warehouse operator.
Currently, quarterly invoices are prepared representing storage and
handling charges for warehouse-stored CCC-owned grain, cotton, and
peanut stocks already recorded into CCC's inventory or forfeited to CCC
during the quarterly period. When issuing quarterly periodic invoices,
CCC will provide warehouse operators access to the quarterly periodic
invoice through a secure Web site for review and electronic
certification of the invoice(s). Warehouse operators will receive an e-
mail notification when invoices are available for review and grain.
Grain and peanut warehouse operators can go to the ED3 website: http://pcsd.usda.gov:3076/finance/
to review and certify the invoices for
accuracy. Cotton warehouse operators can go to the Cotton Online
Processing System
[[Page 35218]]
(COPS) website: http://www.fsa.usda.gov/cotton. If the warehouse
operator believes the amount owed by CCC in the invoice is incorrect,
the warehouse operator may note the discrepancies in the fields
provided on the invoice.
Monthly invoices, including grain and peanut loan forfeiture and
loading order invoices and sugar loan forfeiture and storage invoices,
are prepared as hard copy documents and are mailed to warehouse
operators for certification. If the warehouse operator believes the
amount owed by CCC in the invoice is incorrect, the warehouse operator
may note the discrepancies on the invoice. Signed invoices must be
returned to CCC before payment may be made.
The Prompt Payment Act of 1982 provides that when payment is not
made within 30 calendar days following the receipt of certified invoice
from the warehouse operator, interest will be paid, per the terms of
the Prompt Payment Act, from the 31st calendar day following receipt of
the invoice through the date payment is made. CCC will continue to make
payments via Automated Clearing House (ACH) Electronic Fund Transfers
(EFT).
Signed at Washington, DC, June 14, 2007.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E7-12442 Filed 6-26-07; 8:45 am]
BILLING CODE 3410-05-P