due the assignee under the same reimbursement type purchase authorization. Such overpayments may also be set off against amounts due the same assignee under other reimbursement type purchase authorizations issued to the same participant, provided such assignee is notified of the amount to be set off at the time receipt of the assignment is acknowledged by CCC.

(h) Deposit of foreign currency. When the deposit of foreign currency is required by the terms of the purchase authorization, the importing country shall provide, as hereinafter stated, for the deposit of foreign currency equivalent to dollars disbursed by CCC, except that foreign currency shall not be deposited for the amount of ocean freight differential. Deposits shall be at the rate of exchange for U.S. dollars provided in the applicable Agricultural Commodities Agreement. Documentation for each such deposit shall be furnished to the U.S. Ambassador's designee in the importing country and shall show the number of the purchase authorization, the date and amount of the related dollar disbursement, the exchange rate applicable to the deposit, and the amount of foreign currency deposited. Deposit shall be made immediately after receipt by the importing country or its designee of documentation showing the date and net amount of dollar reimbursement (after deduction of ocean freight differential, if any) by CCC to the importing country, or to its assignee if the right to receive reimbursement under the purchase authorization has been assigned.

(i) Special provisions. Requirements for special documentation, and other provisions not otherwise specified in the regulations in this subpart for reimbursement type purchase authorizations will be set forth in the purchase authorizations.

§ 17.12 Adjustment refunds and insurance.

(a) Adjustment refunds. All claims by importers for adjustment refunds arising out of terms of the contract or out of the normal customs of the trade, including arbitration and appeal awards, allowances, and claims for overpayment of ocean transportation, if such refunds relate to amounts financed by

CCC, shall be settled by payment in U.S. dollars and such payment shall be remitted by the supplier to the CCC except refunds on cotton contracts. Such refunds on cotton contracts shall be made as provided in Appendix A. The remittance shall be identified with the date and amount of the original payment, the commercial letter of credit number, and the applicable purchase authorization number.

(b) Insurance on c.i.f. sales for account of importer. The provisions of this paragraph (b) apply only to transactions under purchase authorizations that specifically authorize c.i.f. sales in which the cost of insurance is included in the net c.i.f. invoice price of the commodity financed. When the supplier furnishes insurance in favor of or for the account of the importer, the policies of certificates of insurance shall include a loss payable clause which provides that all claims shall be paid in U.S. dollars to the Controller except for insurance claims on cotton which shall be paid as provided in Appendix A. Such payments shall be accompanied by advice of the purchase authorization number, the names and addresses of the supplier and importer, the nature of the claim, the quantity of the commodity involved in the claim, the date of shipment, the bill of lading number, and the name of the vessel. CCC will credit the account of the participant or will refund local currency in accordance with paragraph (e) of this section.

(c) Violation of Agricultural Commodities Agreements. Whenever the General Sales Manager determines that the participant has failed to comply with any agreement or committment made by it in connection with the Agricultural Commodities Agreement between the United States and the participant pursuant to which the importation took place, the participant shall pay in U.S. dollars to CCC promptly on demand by the General Sales Manager the entire amount financed by CCC or such lesser amount as the General Sales Manager shall demand.

(d) Refund of ineligible amounts. If a sale has been financed and CCC determines that the sales price exceeds the maximum price permissible under

§ 17.7 or that the sale is otherwise in whole or in part, ineligible for financing, the supplier shall refund in dollars such ineligible amount to CCC promptly on demand. If not promptly refunded, such amount may be set off by CCC against monies it owes to the supplier. The making of any such refund to CCC, or any such setoff by CCC shall not prejudice the right of the supplier to challenge such determination in a court action brought against CCC for recovery of the amount refunded or set off.

(e) Refund of local currency or reduction of amount due. Immediately after receipt by CCC of U.S. dollar payment from suppliers or from or for the account of the participant under this section, CCC will provide for payment to the importing country of the local currency equivalent of dollars received, if such local currency has been deposited for the particular transaction or will credit the participant's account as follows:

(1) For payments under this section, except paragraph (c), the local currency refunded will be at the exchange rate agreed to by the Government of the United States and the government of the importing country in effect at the time the local currency is paid to or for the account of the importer except that if there has been a change in the exchange system or structure of the importing country, such payment shall be made at the agreed exchange rate which was in effect on the date of dollar disbursement for the transaction financed, and except further that local currency shall not be paid when the dollars are to be reauthorized for replacement of the commodity.

(2) For payment under paragraph (c) of this section, the local currency refunded will be at the agreed exchange rate in effect on the date of the dollar disbursement for the transaction financed: Provided, That local currency will not be refunded to the extent that deposits of such currency have been made available to the importing country on a grant basis.

(3) For refunds received by CCC under long-term credit agreements the participant's account shall be credited with the dollar amount refunded or

otherwise recovered, and the participant notified accordingly.

§ 17.13 Documentation.

(a) General. A request for payment submitted to a banking institution by a supplier and a request submitted to CCC for reimbursement of commodity or ocean transportation payment, or both, shall be supported, except as otherwise provided in the purchase authorization, by the documents required by this section, the purchase authorization, the letter of commitment, and Appendix B unless such documents were previously submitted to CCC. Such documents, however, need not be submitted when and to the extent that the Controller determines that the intended purpose of a document is served by documents otherwise available to or under the control of CCC or by alternate documents specified in such determination. The documents required herein are in addition to any other documents the supplier may be required to submit to a bank under the applicable letter of credit. The supplier must present documentation required by CCC to the banking institution for immediate payment or acceptance of a time draft.

(b) Identification. (1) The following documents must be identified with the appropriate purchase authorization numbers or be readily identifiable therewith:

(i) Documents submitted by a supplier to a bank with request for payment of commodity price (including ocean freight or ocean freight differential, as appropriate, and insurance when covered by the commodity price) and such documents when submitted to CCC for reimbursement.

(ii) Documents submitted to CCC to obtain reimbursement under a purchase authorization for ocean freight, or for ocean freight differential, which shall be identified with the number thereof including the "OT” suffix, except that a copy of the ocean bill of lading may contain the related commodity purchase authorization number.

(2) The supplier must put the appropriate purchase authorization number on all documents specified in this sec

tion which are prepared under his control. He should arrange for the appropriate purchase authorization number to be put on all other required documents at the time of their preparation.

(c) Documents required for financing commodity price. A detailed list of all documents required for each commodity is contained in Appendix B. Any additions, deletions or other changes will be stated in the purchase authorization or letter of commitment. General provisions relating to such documents are as follows:

(1) Supplier's certificates. Signed originals of Form CCC-329 "Supplier's Certificate" are required for each request for payment as follows:

(i) When ocean freight, or any portion of it, is financed by CCC, a Form CCC-329 is required from:

(a) The supplier of the commodity covering the net invoice price for the commodity; and

(b) The supplier of ocean freight covering the ocean freight or ocean freight differential, as appropriate, including any ocean freight financed on c. & f. or c.i.f. sales.

(ii) When no part of the ocean freight is being financed by CCC, only one Form CCC-329 is required covering the supplier's net invoice price for the commodity.

(2) Supplier's detailed invoice (2 copies). The copies of the supplier's detailed invoice submitted pursuant to Appendix B shall show quantity, description, contracted price, net total invoice price expressed in dollars, the amount for which financing is requested from CCC, the amount not eligible for financing by CCC, and basis of delivery (e.g. f.o.b. Vessel, c. & f.) of the commodity. For the reimbursement method of financing the invoice shall also be marked "paid". Whenever the Form CCC-106 provides for an ocean freight rate differential on a cost and freight or c.i.f. sale and authorizes financing of any portion of

ocean

freight by CCC, the supplier's detailed invoice shall show a computation of the dollar amount of ocean freight differential. In arriving at the net invoice price there shall be deducted:

(i) The ocean freight, or portion thereof which is not being financed by

CCC when ocean freight is included in the contracted price;

(ii) All discounts from the supplier's contracted price through payments, credits, or other allowances made or to be made to the importer, his agent or consignee;

(iii) All purchasing agents' commissions;

(iv) All other amounts not eligible for financing.

(3) Additional payment. A request for an additional payment submitted for a transaction for which all or part of the required documents have been previously submitted to the bank, shall be supported by the following documents as applicable:

(i) A Form CCC-329 "Supplier's Certificate" and the supplier's detailed invoice, covering the additional amount requested. The supplier's invoice must show the date, serial number and the amount of the original invoice and the basis for the additional amount claimed;

(ii) A statement signed by the ship's master or owner (or agent of either of them) showing exercise of the higherrated option, if the payment is stated to be due because of the exercise of a higher-rated option provided in a liner booking contract or charter party.

(4) Weight certificate. Whenever a copy of a weight certificate is required by these regulations in this subpart or the applicable purchase authorization, the supplier shall submit a weight certificate issued by or on authority of a State or other governmental weighing department, Chamber of Commerce, Board of Trade, Grain Exchange, or other independent organization or firm providing public weighing services. Such organization or firm must have (i) qualified, impartial, paid employees who are stationed at the port facility or, if authorized under the applicable purchase authorization, other facility where weights customarily are determined, one of whom performed the weighing covered by the certificate, or (ii) qualified, independent, impartial, supervised, weighmasters stationed at the port facility or, if authorized under the applicable purchase authorization, other facility where weights are customarily determined, one of whom supervised the

employee of such a facility in the performance of the weighing covered by the certificate.

(5) Federal appeal inspection certifi cate. A Federal appeal inspection certificate, when included in the documents presented for payment, shall supersede any other inspection certificate required by this subpart, the applicable purchase authorization, or the letter of commitment. Appendix B or the applicable purchase authorization will specify the particulars of any required inspection certificate.

(6) Notice of price approval. (i) The document required for each commodity to show that the price is approved for financing (see Appendix B) shall be submitted to the bank with the documents covering the first transaction under the contract. The unit price shown on the supplier's invoice must not exceed the approved unit price shown on the price approval document.

(7) Transshipment, certification required on invoice. If the Form CCC106 requires grain to be exported from a Canadian transshipment point in a U.S.-flag vessel, and if it authorizes financing of ocean freight or ocean freight differential by CCC, the following certification is required on the supplier's invoice:

The undersigned hereby certifies that an equivalent quantity of the same kind of grain covered by this invoice has been shipped in U.S.-flag vessels from U.S. Great Lakes ports via the St. Lawrence Seaway and received by the undersigned at Canadian transshipment points and such quantity was not previously applied by the undersigned to any government program to which the provisions of Pub. L. 664, 83d Congress are applicable.

"Kind of grain" as used in the above certification is defined as the same kind of grain covered by the invoice without regard to grade or class.

(8) Other required documents. The other required documents are as follows:

(i) Four copies of the ocean bill of lading.

(ii) Signed original of Form CCC106-1 or 106-3.

(iii) One nonnegotiable copy of the insurance certificate or policy where the cost of insurance is included in the price of the commodity to be financed by CCC.

(d) Documents required for reimbursement of ocean freight financed separately from commodity price. To obtain reimbursement for ocean freight, or for ocean freight differential for any portion thereof which is financed separately from the commodity price, the following documentation shall be submitted:

(1) Signed original of Form CCC329, "Supplier's Certificate", to be executed by the carrier or its agent, covering the dollar cost of ocean freight or ocean freight differential.

(2) One copy of the ocean bill of lading and, if required by the related Form CCC 106-2, a notice of arrival at the first port of discharge of the vessel named in the Form CCC 106-2. In lieu of a notice of arrival the carrier may present a waiver of the notice of arrival signed by the General Sales Manager or Controller.

(3) One copy of the carrier's invoice marked "paid" which shows the total freight costs paid, the amount not eligible for financing by CCC, and the amount for which financing is requested from CCC. Such invoice shall contain the following typed or stamped certification, executed by the supplier:

The undersigned hereby certifies that the vessel named herein and for which ocean freight is claimed, qualifies as a privately owned U.S.-flag commercial vessel within the requirements of Pub. L. 87-266 and is an eligible U.S.-flag vessel for the purposes of Pub. L. 664, 83d Congress.

(4) Signed original of Form CCC 106-2 (or Form CCC-106-3 in the case of cotton).

(5) One copy of the charter party for shipment by dry bulk carrier or tanker.

(6) A request for reimbursement of any balance claimed on a shipment

after initial reimbursement of 90 percent of ocean freight or ocean freight differential as provided in § 17.9(m), shall be supported by the following documents:

(i) One copy of the carrier's invoice as described in paragraph (d)(3) of this section except for the certification required therein. When the freight contract does not provide for despatch and the supplier certifies this fact on his final invoice the documents in paragraphs (d)(6)(iii) and (iv) of this section are not required.

(ii) A notice of arrival, if required by the Form CCC-106 and not previously presented to support the 90 percent payment.

(iii) A copy of loading and discharging laytime statement and statement of fact signed by the ship's master or owner and the charterer or consignee. Agents' signatures are acceptable.

(iv) If a copy of the charter party was not presented pursuant to paragraph (d)(5) of this section, a copy of the freight contract showing the terms of despatch and demurrage.

(v) The Form CCC-329, Supplier's Certificate the balance claimed.

covering

(7) A request for payment of any amounts claimed because of the exercise of a higher rated option following payment of a lower rated option pursuant to § 17.9(j)(1) shall be supported by the following documents:

(i) One copy of the carrier's invoice as described in paragraph (d)(3) of this section except for the certification required therein.

(ii) The Form CCC-329, Supplier's Certificate, for the balance claimed;

(iii) A statement signed by the ship's master, owner, or owner's agent, and signed laytime statements or other written concurrence of charterer or his agent showing the exercise of the higher rated option.

(e) Documentary requirements. In addition to the general requirements set forth in paragraphs (a) through (c) of this section, each purchase authorization or letter of commitment (1) will refer to a specific section of Appendix B for documentary requirements for the commodity, and (2) will specify any additions to or changes from Appendix B.

[31 FR 16818, Dec. 31, 1966; 32 FR 921, Jan. 26, 1967, as amended at 32 FR 5978, Apr. 14, 1967; 33 FR 5138, Mar. 29, 1968; 33 FR 10005, July 12, 1968; 35 FR 592, Jan. 16, 1970]

§ 17.14 Documents in support of drafts drawn on CCC by banking institutions. Drafts drawn on CCC by banking institutions under letter of commitment for reimbursement of amount disbursed to suppliers shall be supported by the following documents:

(a) Documents obtained from suppliers. Documents specified in § 17.13 and such additional or substitute documents as may be required with respect to any particular transaction as specified in the purchase authorization or in the letter of commitment. A banking institution holding a letter of commitment is not required by CCC to obtain any other documents from suppliers.

(b) Documents originated by banking institutions. (1) Form CCC-331 'Advice of Payment or Acceptance of Draft" in duplicate, the original containing an authorized signature for the banking institution.

(2) A copy of the advice of payment for ocean freight differential when required by § 17.15(a)(7).

(c) Documents originated by ASCS Offices. Form CCC-339, Advice of Receipt of Documents, signed for CCC when documentation was previously submitted to and acknowledged by CCC.

[31 FR 16818, Dec. 31, 1966, as amended at 32 FR 5978, Apr. 14, 1967; 33 FR 10005, July 12, 1968]

§ 17.15 Responsibilities of banking institutions for transactions under letters of commitment.

The responsibilities of banking institutions under the regulations in this subpart for transactions under letters of commitment are limited to the responsibilities stated under paragraphs (a) and (b) of this section and as stated in §§ 17.10 and 17.14.

(a) Full responsibilities. The banking institution shall have full responsibility for the following:

(1) Delivery of documents. The banking institution shall deliver to the Federal Reserve Bank named in the letter