modity Office, Wirth Building, 120 Marais Street, New Orleans 16, La. (hereinafter referred to as the "New Orleans office"). The New Orleans office will issue a sales announcement (identified as announcement No. NO-C-9) which, together with this announcement, will contain the terms and conditions under which the cotton will be sold and exported. A catalog showing stocks of cotton available for sale will be issued and distributed by the New Orleans office, and may be obtained for a nominal fee from that office. Information pertaining to the operation of the program may be obtained from the New Orleans office. Warehouse receipts will not be available to purchasers, and cotton cannot be exported under the program, prior to August 16, 1957. A. Exportation of cotton II. EXPORT CONDITIONS All cotton sold hereunder is sold upon the condition that the purchaser exports or causes to be exported to a destination, other than Alaska, Hawaii, or Puerto Rico, outside the continental United States either the identical bales of cotton purchased from CCC or in substitution therefor an equal quantity of cotton (the cotton exported or caused to be exported by the purchaser is hereinafter referred to as "the cotton"). It is the policy of CCC not to sell cotton for export to countries or areas for which a general or specific export license will not be issued by the Bureau of Foreign Commerce. Accordingly, in purchasing cotton for export under this announcement, the purchaser makes the warranty contained in subsection E below. While the purchaser may arrange to have some other person or firm export the cotton, the responsibility for such exportation cannot be transferred. CCC will hold the purchaser solely responsible for its export. Satisfactory evidence of exportation of the cotton must be submitted by the purchaser. If the purchaser causes the cotton to be exported by some other person or firm so that the cotton would be exported. B. Exportation of substitute cotton 1. If other than the identical bales of cotton purchased from CCC are exported in fulfillment of the export requirements of this announcement, the unpatched gross weight of the cotton exported (including any identical bales in the shipment) must equal the gross weight of the cotton purchased from CCC, and the cotton exported must be of grades within the universal standards for American upland cotton, must have a staple length of thirteen-sixteenths inch or longer, and must have been produced in the continental United States. Cotton exported in substitution must not be reginned, loose, or pickery cotton or any other such irregular cotton. 2. Cotton shipped as offset cotton in connection with Proclamation 2544 of the President of the United States will not fulfill the export requirements of this announcement. C. Time for export The cotton must be exported after August 15, 1957, and not later than (1) 9 months after the date the warehouse receipts covering the cotton purchased from CCC are made available to the purchaser or the cotton is delivered by CCC to the purchaser, or (2) July 31, 1958, whichever is earlier. Cotton exported in substitution for cotton purchased from CCC hereunder must be exported after the date of purchase of such cotton from CCC. D. Satisfactory evidence of exportation Evidence of exportation of the cotton, to be satisfactory hereunder, must meet the following requirements: 1. Separate documents must be submitted for each export shipment, and all documents covering any one such shipment must be submitted at the same time. Each document must identify, by the CCC sales number, the sale against which the export is being made. If the export sale is financed under Public Law 480, the purchase authorization number must also be shown on the documents evidencing exportation. Where exportation or transshipment has been made to one or more of the countries or areas described in subsection E below under license issued by the United States Department of Commerce, Bureau of Foreign Commerce, evidence of exportation shall identify, in addition to the name and address of the consignee, the license issued by that Bureau. In the case of an exportation or transshipment to Hong Kong not requiring a specific license, the document evidencing exportation shall contain a statement by the purchaser that a specific license was not required. 2. If the cotton is exported to Canada or Mexico, the purchaser shall furnish a copy of the railroad bill of lading under which the cotton is shipped and an authenticated landing certificate issued by an official of the government of the country to which the cotton is exported, showing the number of bales, marks, the place and date of entry, and gross landed weight of the cotton, and the name and address of both the persons who exported the cotton from the United States and the person to whom it is shipped. 3. If the cotton is exported to any country other than Canada or Mexico, the purchaser shall furnish a nonnegotiable copy of either an on-board ocean bill of lading or a port of custody bill of lading with on-board endorsement. The bill of lading must show the number of bales, marks, and gross weight of the cotton, the date and place of loading, the name of the vessel, the destination of the cotton, and the name and address of both the person who exported the cotton and the person to whom it is shipped. 4. The purchaser shall furnish a copy of a tag list showing the warehouse receipt numbers under which the cotton is exported and containing a certification that the cotton was produced in the continental United States, is of grades within the universal standards for American upland cotton, is of staple lengths of 13/16 inch or longer, and is not reginned, loose, or pickery cotton, or any other such irregular cotton. Such tag list shall so indiacte if only identical bales purchased from CCC are shown thereon. Such tag list shall be sworn to by the purchaser as true and correct. 5. If other than identical bales of cotton purchased from CCC are included in a shipment, the purchaser shall furnish an affidavit reflecting, in relation to each ocean bill of lading, the actual gross weight of the cotton shipped, exclusive of any franchised weight and exclusive of patches. The affidavit covering the last shipment against any sale must also state that the total unpatched gross weight of the cotton exported is equal to the gross weight of the cotton purchased from CCC under such sale. 6. If the purchaser causes exportation of the cotton to be made by some other person or firm, there shall be furnished a certification by the purchaser that his sale of the cotton to or through such other person or firm caused the export to be made, and a certification on or attached to the bill of lading evidencing export, by the person or firm making the export shipment that such sale of the cotton by such purchaser caused the export to be made. The exporter named in the bill of lading under which the cotton is exported must warrant that the purchaser is the proper person who may utilize proof of exportation of the cotton under this announcement. 7. The documents specified above must be filed with the New Orleans office not later than 30 days after the date of the landing certificate, on-board ocean bill of lading, or on-board endorsement of port or custody bill of lading. An extension of time for submission of such documents may be granted by the director of the New Orleans office if he determines that the purchaser has been or will be delayed in submitting such documents by a cause which the director of the New Orleans office determines to be beyond the control of the purchaser. Failure of the purchaser to furnish such satisfactory evidence of exportation within 30 days after the final date for exportation, determined in accordance with subsection C above, shall constitute prima facie evidence of failure to export. 8. The purchaser shall also furnish promptly any additional evidence of exportation which may be requested by the director of the New Orleans office. 9. If the cotton is loaded on board a vessel for shipment to a destination, other than Alaska, Hawaii, or Puerto Rico, outside the continental United States and is destroyed or damaged while on board such vessel, and the cotton or salvage therefrom does not reenter the United States, for the purposes of fulfilling the export requirements of this announcement, the cotton shall be regarded as having been exported. E. Warranty In submitting a bid, the purchaser represents and warrants that the cotton exported pursuant to this announcement will not be exported by anyone or transshipped by the purchaser or caused to be transshipped by the purchaser: 1. To any country or area listed in subgroup A of group R of the comprehensive export schedule issued by the Bureau of Foreign Commerce, United States De partment of Commerce, unless a license for such exportation or transshipment thereto has been obtained from such Bureau; 2. To Macao unless specific license for such exportation or transshipment thereto has been obtained from the Bureau of Foreign Commerce, United States Department of Commerce; or 3. To Hong Kong if a specific license for such exportation or transshipment is required by regulations of the United States Department of Commerce under the Export Control Act of 1949, unless such specific license for such exportation or transshipment thereto has been obtained from the Bureau of Foreign Commerce, United States Department of Commerce.1 III. PERFORMANCE GUARANTY As a guaranty of performance, the purchaser shall furnish, prior to delivery of cotton by CCC, a cash deposit, performance bond, or letter of credit, acceptable to CCC. Such deposit, bond, or letter of credit shall be in an amount at least equivalent to $30 for each bale of cotton delivered by CCC for which, at any one time, satisfactory evidence of exportation has not been submitted. Failure of the purchaser to furnish the acceptable performance guaranty as provided above by the time CCC is in position to invoice the cotton shall entitle CCC to add accrued carrying charges, as determined by CCC, to the invoice price of the cotton purchased; and in the event the purchaser is consistently delinquent in submission of performance guaranty, as determined by CCC, CCC shall be entitled to require the purchaser to furnish acceptable guaranty prior to acceptance of bids or at CCC's election to cancel the sale of such cotton. In the event of cancellation of sales, CCC will incur costs in removing and returning cotton to the catalog, and the purchaser shall pay to CCC as liquidated damages and not as a penalty the sum of $1 per bale. IV. PRICE ADJUSTMENT CCC sells cotton for unrestricted use at not less than the statutory minimum sales price for sales for unrestricted use (105 percent of the current support price for such cotton plus reasonable carrying charges) or the domestic maket price, whichever is the higher. Sales of cotton by CCC for export are not subject to the statutory price restriction. Sales of cotton under this program may be made at reduced prices and are made upon the condition that the purchaser exports or causes to be exported in conformity with the requirements of this announcement either the identical bales purchased or in substitution therefor an equal quantity of cotton. If (1) any cotton sold hereunder, or in substitution therefor an equal number of pounds (unpacked gross weight) of cotton is not exported in conformity with the requirements of this announcement, or (2) exportation is made and (a) any of the cotton is exported by anyone or transshipped or caused to be transshipped by the purchaser, to any Soviet-bloc destination or Communistcontrolled area in the Far East unless a Department of Commerce license for such shipment or transshipment has been obtained, or to Macao, without specific Department of Commerce license, or to Hong Kong if such license is required and is not obtained, or (b) any of the cotton so exported is reentered into the continental United States or Alaska, Hawaii, or Puerto Rico (unless such cotton reenters pursuant to proclamation 2544 of the President of the United States), whether or not such reentry is caused by the purchaser, the sales price of the quantity of cotton which is not so exported, which is exported or transshiped in contravention of (2) (a) of this section, or which is reentered (or if such cotton was exported in substitution, the cotton for which such cotton was substituted) shall be adjusted upward by the amount that such sales price is exceeded by the higher of CCC's highest statutory minimum sales price for unrestricted use, as determined by CCC, or the highest domestic market price, as determined by CCC, for such cotton between August 16, 1957, or the date of sale, whichever is later, and the final date for exportation hereunder (where the purchaser fails to export in accordance herewith or exports or transships in contravention of (2) (a) of this section) or the date of reentry of such cotton where the cotton is reentered). The total amount of any such upward adjustment of the sales price shall be paid by the purchaser to CCC promptly upon demand. Upon payment of such amount, the cotton shall be available to the purchaser for unrestricted use. 1 Information to purchaser: The Department of Commerce regulations prohibit exportation or reexportation by anyone, including a foreign exporter, of the cotton exported pursuant to the terms of this announcement, to Soviet bole countries and other prohibited areas except under license. The attention of the purchaser is invited to the notice to exporters which accompanies this announcement. V. RECORDS AND REPORTS The purchaser shall make available to CCC, from time to time, upon CCC's request, such information and reports and such of the purchaser's and such of his affiliates' and subsidiaries' books, records, and accounts, and other documents and papers, as CCC may deem pertinent to any transaction hereunder. Specific reporting requirements subsequently prescribed shall be subject to approval of the Bureau of the Budget pursuant to the Federal Reports Act of 1942. Approved: F. MARION RHODES, WALTER W. SIKES, Acting Vice President, Commodity Credit Corporation. NOTICE TO EXPORTERS The Department of Commerce, Bureau of Foreign Commerce (BFC), pursuant to regulations under the Export Control Act of 1949, prohibits the exportation or reexportation by anyone of any commodities to Macao, Hong Kong, the Soviet bloc, or Communist-controlled areas of the Far East including Communist China, North Korea, and Communist-controlled areas of Vietnam and Laos, except under license issued by the United States Department of Commerce, Bureau of Foreign Commerce. Those regulations further require that persons exporting, in the form acquired or in a processed form, under general license to friendly countries, commodities which are obtained directly or indirectly from the Commodity Credit Corporation (CCC) or commodities which are in substitution for commodities so obtained from CCC or commodities which are subsidized for export by CCC either through cash payment or payments in kind file with the collector of customs (in addition to any copies required for other purposes) 1 copy of the shipper's export declaration for forwarding to BFC and send to BFC, Washington, D. C., 1 copy of the on-board ocean bill of lading (for exportations by rail, 1 copy of the railroad bill of lading), for each shipment, regardless of value, involving sales of cotton textiles, other than cotton waste, of $10,000 or more and involving sales of all other commodities, including cotton waste, of $100,000 or more: Provided, That copies of the shipper's export declaration and the bill of lading for BFC are not required to be submitted covering any shipments to group O countries of cotton textiles other than cotton waste. In the case of commodities purchased from CCC, or commodities being exported as "substitute" for such commodities, the $100,000 figure applies to the sales contract between the CCC and the United States purchaser. For commodities being exported under CCC export subsidy programs, the $10,000 figure for cotton textiles (other than cotton waste) and the $100,000 figure for all other commodities (including cotton waste) apply to the sales contract between the United States seller and the foreign purchaser. Each of the documents for BFC must bear the notation “FC-2610" in the upper right-hand corner. The bill of lading for BFC must also bear the number of the corresponding shipper's export declaration and the CCC identification number (CCC sales contract number or CCC subsidy registration number). For all exportations of commodities covered by the program announcement, instrument, or document which this notice accompanies, the following statement is required to be placed on all copies of the shipper's export declaration, all copies of the bill of lading and all copies of the commercial invoice to the foreign purchaser: "United States law prohibits disposition of these commodities to the Soviet bloc, Communist China, North Korea, Communist-controlled areas of Vietnam and Laos, Macao, or Hong Kong, except as authorized by the United States." The United States Commerce Department export-control regulations also require that exporters, in or in connection with their contracts with foreign purchasers, where the contract involves $10,000 or more and exportation is to be made to a group R country, obtain from the foreign purchaser a written acknowledgment of his understanding of (1) United States Commerce Department prohibitions (comprehensive export schedule, secs. 371.4 and 371.8) against sale or resale for reexport of said commodities, or any part thereof, without express Commerce Department authorization, to Macao, Hong Kong, the Soviet bloc, a Communist-controlled area in the Far East including Communist China, North Korea, and Communist-controlled areas of Vietnam and Laos, and (2) the sanetion of denial of future United States export privileges that may be imposed against any foreign purchaser for violation of the Commerce Department regulations. Exporters who have a continuing and regular relationship with a foreign purchaser may obtain a blanket acknowledgment from such purchaser covering all transactions involving surplus agricultural commodities and manufactures thereof purchased from CCC or subsidized for export by that agency. Where commodities are to be exported by a party other than the original purchaser of the commodities from the CCC the original purchaser should inform the exporter in writing of the requirement for (1) obtaining the signed acknowledgment from the foreign purchaser, and (2) for submitting the additional copy of the shipper's export declaration and the bill of lading. UNITED STATES DEPARTMENT OF AGRICULTURE COMMODITY STABILIZATION SERVICE NEW ORLEANS, LA., March 6, 1957. AMENDING NO. 1 TO ANNOUNCEMENT NO. NO-C-9 SALE OF UPLAND COTTON (Cotton export program, 1957-58 marketing year) To all catalog holders and other interested parties. GENTLEMEN: Announcement No. NO-C-9 is hereby amended, effective immediately, as follows: Section 4 (c) (1) is hereby amended to read as follows: “4. (c) (1) Original and one copy of certified reweight sheet, signed by the superintendent or manager of the compress or warehouse storing the cotton at time of sale, reflecting the gross reweight of each bale of cotton on a particular sale. All cotton in a warehouse sold as one grade and staple must be on a separate reweight sheet from other grades and staples. The following certificate executed by the superintendent or manager of the compress or warehouse must appear on each reweight sheet: ""This cotton was not resampled or reconditioned before reweighing and has been weighed on scales which were tested for accuracy within 10 hours prior to weighing. The weights recorded herein are actual weights shown by the scales and do not reflect dockage for any cause whatsoever. The said weights if obtained on a beam-type scale are weights determined by weighing the cotton on a level beam.'" Other than as provided herein, the provisions of announcement No. NO-C-9, as amended, remain unchanged. Very truly yours, F. P. BIGGS, Director, CSS Commodity Office. |