[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

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

[CITE: 7CFR252.3]



[Page 507-508]

 

                          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



[[Page 508]]



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]