The program, administered by USDA’s Commodity Credit
Corporation (CCC), promotes commercial exports of U.S.
agricultural products by helping U.S. exporters offer direct,
short-term credit to foreign buyers. Under the SCGP, CCC reduces
the financial risk to U.S. exporters by guaranteeing 65 percent
of the payments due from foreign buyers for credit periods of up
to 180 days. USDA is inviting suggestions on changes that would
improve program operations and efficiency.
Several factors are behind the effort to improve program
operations. As the SCGP has grown, defaults have also increased.
Although CCC has improved its claims recovery process, further
changes may be necessary. In addition, the World Trade
Organization ruling in a dispute brought by Brazil against the
United States stated that CCC must charge fees adequate to cover
the long-term operating costs and losses of the program as a
whole. On July 1, 2005, CCC revised its fee structure to reflect
program default risk and operating costs. However, CCC is
interested in exploring potential revisions to the structure,
design and operation of the SCGP that can further help meet this
on-going "break-even" goal.
Comments must be submitted by: Thursday, Feb. 23, 2006
Comments may be submitted by:
- E-mail:
SCGP.ANPR@fas.usda.gov
- Fax: (202) 690-1595 Attention: "SCGP/ANPR Comments"
- Mail: William S. Hawkins, Director, Program
Administration Division, Export Credits, Foreign
Agricultural Service, U.S. Department of Agriculture, 1400
Independence Ave., S.W., Stop 1031, Washington, DC
20250-1031
- Hand Delivery/Courier: 1400 Independence Ave., S.W.,
Room 4083, Washington, DC, 20250-1031
USDA will consider all comments and determine what changes,
if any, should be made to the SCGP. Some changes may require
additional notice and consideration of comments via the
rulemaking process. Other changes may be adopted by changing
internal policies and procedures. Comments received will help
USDA determine the extent and scope of any future rulemaking.
All comments will be available for public inspection at the
above address during regular business hours.
For further information, contact William S. Hawkins,
Director, Administration Division, Foreign Agricultural Service,
at the above address, or by telephone: (202) 720-3241.
