[Code of Federal Regulations]
[Title 7, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR17.7]

[Page 446-447]
 
                          TITLE 7--AGRICULTURE
 
PART 17_SALES OF AGRICULTURAL COMMODITIES MADE AVAILABLE UNDER TITLE I 
 
Sec. 17.7  Notice of sale procedures.

    (a) Telephonic notice of sale. The supplier shall, immediately upon 
making a firm sale, telephone a notice of sale to Pub L. 480 Operations 
Division, FAS. A sale is considered firm when the supplier has been 
notified by the importer of an award, even though the contract is 
conditioned on approval by FAS (see Sec. 17.5(b)(1).) If the supplier 
fails to furnish a notice of sale within 3 working days after the date 
of sale, CCC has the right to refuse to finance the sale.
    (b) Sale approval. (1) Pub. L. 480 Operations Division will notify 
the supplier by telephone of approval of the notice of sale.
    (2) The supplier will prepare Form FAS-359, ``Declaration of Sale,'' 
and submit it to Pub. L. 480 Operations Division promptly as soon as FAS 
has provided the CCC Registration Number to the supplier. The supplier 
or the supplier's authorized representative must sign the form.
    (3) Each Form FAS-359 shall cover only a single sale contract. If a 
sale is made under two or more purchase authorizations, the supplier 
will prepare separate forms for each purchase authorization.
    (4) If any correction is needed to the Form FAS-359, the supplier 
must immediately notify FAS. If a contract is amended, the supplier 
should present the original Form FAS-359 for payment along with a copy 
of the written USDA approval of the contract amendment.
    (c) Sale disapproval. (1) Pub. L. 480 Operations Division, FAS, will 
notify the supplier by telephone when a sale is disapproved for 
financing. The related contract between the supplier and importer shall, 
for purposes of financing, be considered null and void.
    (2) On receipt of a notice of disapproval, the supplier shall 
promptly notify the importer.
    (d) Contract delivery period. Price approval is limited to exports 
made during the delivery period stated in the notice of sale or any 
contract amendment approved by the Pub. L. 480 Operations Division, FAS. 
If the supplier cannot complete delivery by the terminal delivery date 
of the contract delivery period, the supplier and the participant or 
importer shall submit a notice of contract amendment as provided in 
paragraph (e) of this section. If the supplier fails to comply, Sec. 
17.10(d) shall apply.
    (e) Contract amendments. (1) The supplier and the participant or 
importer shall each submit a written notice of each contract amendment 
to the Director immediately after the amendment to the contract is made. 
This includes not only any change in the contract delivery period or any 
other terms and conditions of the contract as provided in the 
information given in the original notice of sale or any amendment 
thereto, but also any change in any other terms and conditions of the 
contract.
    (2) The notice of contract amendment must contain the following:
    (i) A request that USDA approve an amendment to the specifically 
identified sale contract between (the participant or importer) and (the 
commodity supplier).
    (ii) A statement of what the amendment consists of (as, extension of 
delivery period through (date)) and a detailed explanation of the 
reasons for the amendment.
    (iii) A statement that the contract amendment has been agreed to by 
both buyer and seller.
    (3) Pub. Law 480 Operations Division, FAS, will notify the supplier 
as to whether the amendment is approved or disapproved.
    (4) The supplier shall furnish a copy of the USDA approval of the 
amendment with other documentation submitted to obtain payment.
    (5) If the supplier fails to furnish notice of a contract amendment 
to Pub. L. 480 Operations Division, FAS, within 3 working days after the 
date of such

[[Page 447]]

amendment, CCC has the right to refuse to finance the sale or any 
portion of the sale.
    (6) Any amendment must be consistent with the provisions of the 
purchase authorization and this part and must otherwise be acceptable to 
Pub. L. 480 Operations Division, FAS.