[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: 15CFR700.14]



[Page 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. 700.14  Preferential scheduling.



    (a) A person must schedule operations, including the acquisition of 

all needed production items, in a timely manner to satisfy the delivery 

requirements of each rated order. Modifying production or delivery 

schedules is necessary only when required delivery dates for rated 

orders cannot otherwise be met.

    (b) DO rated orders must be given production preference over unrated 

orders, if necessary to meet required delivery dates, even if this 

requires the diversion of items being processed or ready for delivery 

against unrated orders. Similarly, DX rated orders must be given 

preference over DO rated orders and unrated orders.



    Examples: If a person receives a DO rated order with a delivery date 

of June 3 and if meeting that date would mean delaying production or 

delivery of an item for an unrated order, the unrated order must be 

delayed. If a DX rated order is received calling for delivery on July 15 

and a person has a DO rated order requiring delivery on June 2 and 

operations can be scheduled to meet both deliveries, there is no need to 

alter production schedules to give any additional preference to the DX 

rated order.



    (c) Conflicting rated orders. (1) If a person finds that delivery or 

performance against any accepted rated orders conflicts with the 

delivery or performance against other accepted rated orders of equal 

priority status, the person shall give preference to the conflicting 

orders in the sequence in which they are to be delivered or performed 

(not to the receipt dates). If the conflicting rated orders are 

scheduled to be delivered or performed on the same day, the person shall 

give preference to those orders which have the earliest receipt dates.

    (2) If a person is unable to resolve rated order delivery or 

performance conflicts under this section, the person should promptly 

seek special priorities assistance as provided in Sec. Sec. 700.50 

through 700.54. If the person's customer objects to the rescheduling of 

delivery or performance of a rated order, the customer should promptly 

seek special priorities assistance as provided in Sec. Sec. 700.50 

through 700.54. For any rated order against which delivery or 

performance will be delayed, the person must notify the customer as 

provided in Sec. 700.13(d)(2).

    (d) If a person is unable to purchase needed production items in 

time to fill a rated order by its required delivery date, the person 

must fill the rated order by using inventoried production items. A 

person who uses inventoried items to fill a rated order may replace 

those items with the use of a rated order as provided in Sec. 

700.17(b).



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

amended at 63 FR 31922, June 11, 1998]