[Federal Register Volume 72, Number 123 (Wednesday, June 27, 2007)]
[Notices]
[Pages 35217-35218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-12442]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Warehouse Operators Approved Under Commodity Credit Corporation 
Storage Agreements--CCC Policy on Making Payments and Interest on 
Delayed Payments

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) pays warehouse 
operators approved under the Uniform Grain and Rice Storage Agreement, 
Peanut Storage Agreement, Cotton Storage Agreement and the Sugar 
Storage Agreement storage, handling, and other associated costs for 
commodities forfeited to CCC. Payments made by CCC are subject to the 
Prompt Payment Act of 1982, as amended; the Debt Collection Improvement 
Act of 1996; and the Federal Acquisition Regulations. To be fully 
compliant with these regulations, effective June 30, 2007, warehouse 
operators will be required to certify CCC payment invoices before the 
release of payment funds by CCC.

DATES: Effective Date: June 30, 2007.

FOR FURTHER INFORMATION CONTACT: Howard Froehlich, Chief, Program 
Development Branch, Warehouse and Inventory Division, Farm Service 
Agency, USDA, STOP 0553, 1400 Independence Avenue, SW., Washington, DC 
20250-0553. Telephone: (202) 720-2121. E-mail: 
[email protected]. Persons with disabilities who require 
alternative means for communication (Braille, large print, audiotape, 
etc.) should contact the USDA Target Center at (202) 720-2600 (voice 
and TDD).

SUPPLEMENTARY INFORMATION: CCC acquires title to agricultural 
commodities in the administration of its programs under various 
circumstances. For instance, under Title I of the Farm Security and 
Rural Investment Act of 2002, CCC makes marketing assistance loans to 
producers that can lead to forfeiture of the commodities to CCC. To 
provide for the storage of various commodities it acquires, CCC enters 
into storage agreements with private warehouse operators. Section 5 of 
the CCC Charter Act (7 U.S.C. 714c) requires that in purchasing, 
selling, warehousing, transporting, or handling agricultural 
commodities, CCC is to use, to the maximum extent practicable, the 
usual and customary channels, facilities, and arrangements of trade and 
commerce. In contracting for warehouse services, CCC must be compliant 
with the Prompt Payment Act of 1982, as amended; the Debt Collection 
Improvement Act of 1996; and the Federal Acquisition Regulations. To be 
fully compliant with these regulations, effective June 30, 2007, 
warehouse operators will be required to certify CCC payment invoices 
before the release of payment funds by CCC.
    CCC periodically prepares and issues invoices and payments for 
accrued storage and handling charges for warehouse-stored CCC-owned 
commodities recorded into CCC's inventory or forfeited to CCC through 
warehouse operators operating under the terms and conditions of a CCC 
Storage Agreement. This Notice announces a change in the method used by 
warehouse operators for invoice certification and in the timing of 
payments made by CCC. All invoices must be reviewed and certified by 
the warehouse operator before payments can be made. Endorsement of the 
certification of the invoice represents the warehouse operator's 
verification that the charges represented by the invoice and 
disbursement are due and owing. Criminal and civil penalties may be 
assessed for false certification. Periodic invoices will continue to be 
prepared by CCC; however, payments will now be made only after review, 
correction, and certification by the warehouse operator.
    Currently, quarterly invoices are prepared representing storage and 
handling charges for warehouse-stored CCC-owned grain, cotton, and 
peanut stocks already recorded into CCC's inventory or forfeited to CCC 
during the quarterly period. When issuing quarterly periodic invoices, 
CCC will provide warehouse operators access to the quarterly periodic 
invoice through a secure Web site for review and electronic 
certification of the invoice(s). Warehouse operators will receive an e-
mail notification when invoices are available for review and grain. 
Grain and peanut warehouse operators can go to the ED3 website: http://pcsd.usda.gov:3076/finance/ to review and certify the invoices for 
accuracy. Cotton warehouse operators can go to the Cotton Online 
Processing System

[[Page 35218]]

(COPS) website: http://www.fsa.usda.gov/cotton. If the warehouse 
operator believes the amount owed by CCC in the invoice is incorrect, 
the warehouse operator may note the discrepancies in the fields 
provided on the invoice.
    Monthly invoices, including grain and peanut loan forfeiture and 
loading order invoices and sugar loan forfeiture and storage invoices, 
are prepared as hard copy documents and are mailed to warehouse 
operators for certification. If the warehouse operator believes the 
amount owed by CCC in the invoice is incorrect, the warehouse operator 
may note the discrepancies on the invoice. Signed invoices must be 
returned to CCC before payment may be made.
    The Prompt Payment Act of 1982 provides that when payment is not 
made within 30 calendar days following the receipt of certified invoice 
from the warehouse operator, interest will be paid, per the terms of 
the Prompt Payment Act, from the 31st calendar day following receipt of 
the invoice through the date payment is made. CCC will continue to make 
payments via Automated Clearing House (ACH) Electronic Fund Transfers 
(EFT).

    Signed at Washington, DC, June 14, 2007.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E7-12442 Filed 6-26-07; 8:45 am]
BILLING CODE 3410-05-P