[Code of Federal Regulations]
[Title 7 Volume 4]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR252.3]

[Page 467]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 252--NATIONAL COMMODITY PROCESSING PROGRAM--Table of Contents
 
Sec. 252.3  Administration.

    (a) Role of FNS. The Secretary will designate those commodities 
which will be available under the NCP Program. Only commodities made 
available without charge or credit under any nutrition program 
administered by USDA will be available under NCP. FNS will act as the 
distributing agency and the contracting agency under the NCP Program. 
The Department will pay costs for delivering donated commodities to 
participating NCP Program processors.
    (b) Food orders. When NCP Program processors request donated food, 
FNS will determine whether the quantities ordered are consistent with 
the processor's ability to sell end products and/or the processor's past 
demonstrated performance under the Program. If the quantities are 
appropriate, FNS will request from CCC the donated food for transfer of 
title to FNS and delivery to a mutually agreed upon location for use by 
the NCP Program processor. The title to these commodities transfers to 
FNS upon their acceptance by the processor. FNS retains title to such 
commodities until:
    (1) They are distributed to eligible recipient agencies in processed 
form, at which time the recipient agency takes title;
    (2) They are disposed of because they are damaged or out-of-
condition; or
    (3) Title is transferred to the NCP Program processor upon 
termination of the agreement.
    (c) Substituted food. When the processor substitutes commercial food 
for donated food in accordance with Sec. 252.4(c)(7) of this part, title 
to the substituted food shall transfer to FNS upon the initiation of the 
processing of the end product containing the substituted food. Title to 
the equivalent amount of donated food shall transfer to the processor at 
the same time (except when the substitution is necessary to meet the 100 
percent yield requirement or to otherwise replace missing or out-of-
condition donated food). Once title has transferred, the processor shall 
use the substituted food in accordance with the terms and conditions of 
this part.
    (d) Inventory levels. FNS will monitor the inventory of each food 
processor to ensure that the quantity of donated food for which a 
processor is accountable is at the lowest cost-efficient level. In no 
event shall a processor hold in inventory more than a six-month supply, 
based on average monthly usage under the NCP Program, unless a higher 
level has been specifically approved by FNS on the basis of 
justification submitted by the processor. Under no circumstances should 
the amount of donated food requested by the processor be more than the 
processor can accept and store at any one time. FNS will make no further 
distribution to a processor whose inventory exceeds these limits until 
such time as the inventory is reduced.
    (e) Recipient agency registration. FNS will register, upon request, 
eligible recipient agencies. FNS will make available to food processors 
a listing of registered eligible recipient agencies for marketing 
purposes. Any processor desiring additional listings will be charged a 
fee for the listing which is commensurate with the Department's policy 
on user fees.

[51 FR 23518, June 30, 1986, as amended at 52 FR 24978, July 2, 1987; 59 
FR 62986, Dec. 7, 1994]

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