GSM Export Credit Program Qualification Procedure
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Following is the procedure to obtain credit under the United States Department of Agriculture's Commodity Credit Corporation's GSM Program. Maywood International Sales, Inc. is an Officially Approved Exporter.
For more information:www.fas.usda.gov (choose "Search FAS" and enter "gsm-102")
Steps to Participate in U.S. Export Credit Guarantee Programs:
GSM 102 - Guarantee Fee Rates Until further notice , the following summary table reflects the guarantee fee rates, in cents per US$/100 of coverage (based upon guaranteed value), for the GSM-102 Program.
- Maywood will determine if United States Department of Agriculture's (USDA) Commodity Credit Corporation (CCC) has announced credit guarantee coverage for the importing country and products to be imported. Additionally, the importer's local bank may be able to provide this information.
- Maywood will advise importer which local banks have been approved in the importers country by CCC and which have credit arrangements with one or more United States financial institutions to support transactions under the GSM-102 Export Credit Guarantee Programs.
- Maywood is eligible to obtain a CCC guarantee and will negotiate the sale of the product on satisfactory terms with the importer. Importer will obtain a preliminary commitment from one of approved banks to handle the planned transaction.
- Importer enters into a credit sales contract with Maywood. Maywood then applies to CCC for a payment guarantee. The importer pays the CCC Payment Guarantee Fee directly to USDA/CCC in Washington.
- Importer arranges for the CCC approved local bank to send the U.S. financial institution an irrevocable, dollar-denominated letter of credit in favor of Maywood.
- When the U.S. financial institution confirms or advises the letter of credit to Maywood, Maywood proceeds to ship the product as agreed.
- Maywood assigns the CCC guarantee to the U.S. Financial institution and presents documents generated by the export transaction for payment. The U.S. financial institution pays Maywood and forwards required documents as instructed under the importer's letter of credit.
- Maywood's bank settles the transaction and releases any documents to the importer as agreed.
- The importer receives the product and pays the local bank according to prior agreement. The importer's payment(s) may include principal and interest, and any other fees charged by the importer's bank.
- The importer provides entry documentation to Maywood as appropriate. This usually is in the form of copies of customs import documentation evidencing receipt of the goods in importer's country.
- The importer's bank pays the principal and interest as scheduled under its financing arrangement with the U.S. financial institution.
- The importer pays his bank at end of credit term in accordance with arrangements he has made with his bank.
|Length (Term) of Coverage
(A) Full repayment at 90 days
(B) Full repayment at 4 months
(C) Full repayment at 6 months
(D) Full repayment at 7 months
(E) 2/3 at 6 months; 1/3 at 9 months
(F) Full repayment at 9 months
(G) 2/5 at 6 months; 2/5 at 12 months; 1/5 at 15 months
(H) 4/5 at 12 months; 1/5 at 15 months
(I) 2/3 at 12 months; 1/3 at 18 months
(J) 24-month fee rates also apply in case of 720 day credit terms
(K) 2/5 at 12 month; 2/5 at 24 months; 1/5 at 30 months