GSM-102 General Terms
Complete GSM-102 program regulations can be found at 7 CFR Part 1493.
Program announcements are issued in accordance with 7CFR, Section 1493.10(c).
Exporters are reminded that a firm sale must exist between the buyer and seller prior to submission of an application for a guarantee. Exporters must limit the maximum total guarantee value of all submitted applications to the amount of coverage available under each program announcement and all applications are subject to sufficient country and bank limits.
All applications submitted must be accompanied by the full guarantee fee. Fees may be submitted with the application or submitted separately by check or wire transfer, but all application fees must be received by CCC by 11:59 p.m. (Eastern Time) on the same day that the application is received by CCC. Each fee payment should note the applicant name, the sale number, the country/region name, and the amount of fee to be allocated to each application (if one payment is submitted to cover multiple applications). CCC will not consider any applications where the fee is not submitted within this time frame.
Under a sight LC without refinancing provisions, there is typically no stipulated payment due date. To establish a final date for payment to the holder of the payment guarantee, that if not met by the foreign financial institution on a complying submission of documents would place the foreign financial institution in default, the guarantee will stipulate a “validity period” for each export under the payment guarantee. The validity period will be no later than 45 calendar days after the date of export.
Requests for extensions to the export date must be submitted in writing and will only be permitted on a case by case basis. CCC does not anticipate granting any extensions unless the exporter can demonstrate that circumstances beyond the exporter’s control precluded export by the final date to export on the guarantee.
In accordance with 7 CFR 1493.20, announcements offer coverage on a free-alongside-ship or free-on-board basis. If commodities are sold on a cost-and-freight or cost-insurance-and-freight basis, coverage on a cost-and-freight basis to point of ocean transportation or international air carrier discharge is also available in accordance with 7 CFR 1493.20. Coverage is not available under the announcements for insurance costs
Coverage of up to 98 percent of the principal is offered on credit terms based on the obligor country risk category. Adjustable interest coverage is also offered in accordance with FAS program announcement issued Sept. 4, 2008, or as superseded.
Guarantee Fee Rates
Pursuant to 7 CFR 1493.110, for applicable fees, refer to the GSM Fee webpage.
Pursuant to 7 CFR 1493.100(e), the exporter may request reserve coverage to cover contract loading tolerances. If coverage is available, CCC will grant reserve coverage of up to 10 percent of the requested guarantee value provided the sales contract allows for this loading tolerance.