[Code of Federal Regulations]

[Title 15, Volume 2]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR700.13]



[Page 86-87]

 

                  TITLE 15--COMMERCE AND FOREIGN TRADE

 

  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE

 

PART 700_DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents

 

                     Subpart D_Industrial Priorities

 

Sec. 700.13  Acceptance and rejection of rated orders.



    (a) Mandatory acceptance. (1) Except as otherwise specified in this 

section, a person shall accept every rated order received and must fill 

such orders regardless of any other rated or unrated orders that have 

been accepted.

    (2) A person shall not discriminate against rated orders in any 

manner such as by charging higher prices or by imposing different terms 

and conditions than for comparable unrated orders.

    (b) Mandatory rejection. Unless otherwise directed by Commerce:

    (1) A person shall not accept a rated order for delivery on a 

specific date if unable to fill the order by that date. However, the 

person must inform the customer of the earliest date on which delivery 

can be made and offer to accept the order on the basis of that date. 

Scheduling conflicts with previously accepted lower rated or unrated 

orders are not sufficient reason for rejection under this section.

    (2) A person shall not accept a DO rated order for delivery on a 

date which would interfere with delivery of any previously accepted DO 

or DX rated orders. However, the person must offer to accept the order 

based on the earliest delivery date otherwise possible.

    (3) A person shall not accept a DX rated order for delivery on a 

date which would interfere with delivery of any previously accepted DX 

rated orders, but must offer to accept the order based on the earliest 

delivery date otherwise possible.

    (4) If a person is unable to fill all the rated orders of equal 

priority status received on the same day, the person must accept, based 

upon the earliest delivery dates, only those orders which can be filled, 

and reject the other orders. For example, a person must accept order A 

requiring delivery on December 15 before accepting order B requiring 

delivery on December 31. However, the person must offer to accept the 

rejected orders based on the earliest delivery dates otherwise possible.

    (c) Optional rejection. Unless otherwise directed by Commerce, rated 

orders may be rejected in any of the following cases as long as a 

supplier does not discriminate among customers:

    (1) If the person placing the order is unwilling or unable to meet 

regularly established terms of sale or payment;

    (2) If the order is for an item not supplied or for a service not 

performed;

    (3) If the order is for an item produced, acquired, or provided only 

for the supplier's own use for which no orders have been filled for two 

years prior to the date of receipt of the rated order. If, however, a 

supplier has sold some of these items, the supplier is obligated to 

accept rated orders up to that quantity or portion of production, 

whichever is greater, sold within the past two years;

    (4) If the person placing the rated order, other than the U.S. 

Government, makes the item or performs the service being ordered;

    (5) If acceptance of a rated order or performance against a rated 

order would violate any other regulation, official action, or order of 

the Department of Commerce issued under the authority of the Defense 

Production Act or the Selective Service Act and related statutes [See 

Sec. 700.75].

    (d) Customer notification requirements. (1) A person must accept or 

reject a rated order and transmit the acceptance or rejection in writing 

(hard copy), or in electronic format, within fifteen (15) working days 

after receipt of a DO rated order and within ten (10) working days after 

receipt of a DX rated order. If the order is rejected, the



[[Page 87]]



person must also provide the reasons for the rejection, pursuant to 

paragraphs (b) and (c) of this section, in writing (hard copy) or 

electronic format.

    (2) If a person has accepted a rated order and subsequently finds 

that shipment or performance will be delayed, the person must notify the 

customer immediately, give the reasons for the delay, and advise of a 

new shipment or performance date. If notification is given verbally, 

written or electronic confirmation must be provided within five (5) 

working days.



(The information collection requirements in paragraphs (d)(1) and (d)(2) 

are approved by the Office of Management and Budget under OMB control 

number 0694-0053)



[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 

amended at 63 FR 31922, June 11, 1998; 70 FR 10864, Mar. 7, 2005]