[Code of Federal Regulations] [Title 7, Volume 10] [Revised as of January 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR1493.240] [Page 825-827] TITLE 7--AGRICULTURE CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE PART 1493--CCC EXPORT CREDIT GUARANTEE PROGRAMS--Table of Contents Subpart C--CCC Facility Guarantee Program (FGP) Operations Sec. 1493.240 Initial application and letter of preliminary commitment. (a) Initial application. An exporter may apply for a facility payment guarantee by submitting the following information: (1) A cover sheet with the title: ``Application for a Facility Payment Guarantee--Preliminary Commitment''; (2) The program announcement number; (3) The emerging market; (4) The name, contact person, address, and telephone number and, if applicable, facsimile number and E-mail address of: (i) The exporter; (ii) The exporter's registered agent for service of process in the United States; (iii) The exporter's assignee, if applicable; (iv) The importer; (v) The end-user of the goods or services if other than the importer; (vi) The foreign bank expected to issue the letter of credit or related obligation; and (vii) The financial institution in the United States expected to provide financing; (5) A statement on letterhead from a: (i) Foreign bank indicating an interest in guaranteeing payment, in U.S. dollars, for goods or services to be exported under the facility payment guarantee at least equal to the net contract value listed in paragraph (a)(14) of this section, less the initial payment requirement listed in paragraph (a)(15) of this section; and (ii) Financial institution in the U.S. indicating an interest in financing the export sales of goods or services under [[Page 826]] the facility payment guarantee for an amount at least equal to the net contract value listed in paragraph (a)(14) of this section less the initial payment requirement listed in paragraph (a)(15) of this section. The financial institution must state that such financing would not otherwise be available without an FGP payment guarantee; (6) The period for which credit is being extended to finance the sale of goods or services covered by the facility payment guarantee; (7) The exporter's sales number pertinent to this application and a description of the status of the intended sale; (8) A description (e.g., a process flow diagram) of the agriculture- related facility that will use the goods or services to be covered by the facility payment guarantee and an explanation of how these goods and services will be used to improve handling, marketing, processing, storage, or distribution of agricultural commodities or products; (9) A brief description of each good or service to be covered by the facility payment guarantee including, where applicable, brand name, model number, Standard Industrial Classification (SIC) or the North American Industry Classification System (NAICS) code, and contract specifications; (10) The final date for export of goods or services. If applicable, include construction start date, milestones (e.g., installation), and contractual deadline for completion of project; (11) The contract value for the sale of goods or services and the basis of sale for goods to be exported (e.g., FOB, CFR, CIF); (12) The description and value of the goods or cost of services listed in paragraph (a)(11) of this section that are not U.S. goods or services; (13) Identification and cost of, and justification for, those services listed in paragraph (a)(12) of this section for which the exporter requests CCC to provide coverage; (14) The net contract value in Sec. 1493.260(b)(1) obtained by subtracting paragraph (a)(12) of this section from paragraph (a)(11) of this section, and adding paragraph (a)(13) of this section; (15) The amount to be paid in accordance with the initial payment requirement (Sec. 1493.230(c)); (16) The description and dollar amount of discounts and allowances provided in connection with the sale of goods or services covered by the facility payment guarantee; (17) The facility base value in Sec. 1493.260(b)(2) obtained by subtracting paragraphs (a)(15) and (a)(16) of this section from paragraph (a)(14) of this section; (18) The maximum guaranteed value under the facility payment guarantee determined by multiplying the facility base value listed in paragraph (a)(17) of this section by the guarantee rate of coverage announced by CCC in Sec. 1493.260(b)(3); (19) A map or other description of the facility's location and distance from major population centers of neighboring countries; (20) For all principal agricultural commodities or products (inputs) to be handled, marketed, processed, stored, or distributed, by the proposed project after completion, provide: (i) A list or table identifying such principal inputs; (ii) The likely countries of origin for each input; (iii) Estimated annual quantities, in metric tons, of each input listed in paragraph (a)(20)(i) of this section to be used by the project for five years from the final date of export or until the expiration of the facility payment guarantee, whichever comes first; and (iv) An analysis, including price, cost, and other assumptions (the reasons why U.S. agricultural commodities or products will be more competitive inputs than commodities or products from other sources, and whether the projected use of U.S. agricultural commodities or products depends on the availability of U.S. export bonus or credit guarantee programs), of which inputs listed in paragraph (a)(20)(i) of this section will represent increased imports of U.S. agricultural commodities or products: (A) To a greater degree than imports of agricultural commodities or products from other countries; (B) To or at levels significantly above those expected in the absence of the project; and [[Page 827]] (C) For a period of five years from the final date of export or until expiration of the facility payment guarantee, whichever comes first. (21) If applicable, a list of agricultural outputs or final products of the proposed project and: (i) Projected annual quantities (for five years or until the expiration of the facility payment guarantee, whichever comes first), in metric tons, of each output to be marketed; (A) Within the emerging market; and (B) In any other country; (ii) Quantities, by country of origin, of products imported into the emerging market during the past year which would compete with such outputs; and (iii) An analysis of whether products of the project will significantly displace U.S. exports of similar agricultural commodities or products in any market; (22) If applicable, a description of any arrangements or understandings with other U.S. or foreign government agencies, or with financial institutions or entities, private or public, providing financing to the exporter in connection with this export sale, and copies of any documents relating to such arrangements; (23) A description of the exporter's experience selling goods or providing services similar to those for which the exporter seeks to obtain facility payment guarantee coverage; (24) A statement of how this project may encourage privatization of the agricultural sector, or benefit private farms or cooperatives, in the emerging market. Include in the statement the share of private sector ownership of the project; (25) The exporter's signature. (b) Application fee. The exporter shall pay the application fee specified in the program announcement at the time the application is submitted. An application will not be considered without payment of the specified fee. The application fee is nonrefundable. (c) Letter of preliminary commitment. CCC will determine whether, in its judgment, the project in connection with which the exporter seeks a facility payment guarantee is likely to increase exports of U.S. agricultural commodities or products to an emerging market; and whether the project is likely to benefit primarily U.S. agricultural commodities or products as opposed to commodities or products originating in other countries. If necessary, CCC may seek additional information from an applicant prior to making its determination. If CCC determines that an application meets these standards and appears to represent, in CCC's judgment, the best use of available resources, CCC will respond to the applicant with a letter of preliminary commitment indicating CCC's interest in issuing a facility payment guarantee conditioned on its approval of the exporter's final application.