What payment terms are available?
When GSM-102 is used, credit terms of up to 18 months can be available. The term for a sale is the term the Commodity Credit Corporation sets. The guarantee covers most of the principal owed to the U.S. lender against the foreign bank’s default. Payment flows through the letter of credit upon shipment documents. Our exporter qualification application is pending. If the program is not used, the payment terms are whatever the contract for that shipment says.
Which banks qualify?
When GSM-102 is used, the buyer’s bank must be on the CCC-approved foreign bank list and must issue an irrevocable letter of credit. We do not decide which banks are on that list. The list is published by the Foreign Agricultural Service: approved foreign financial institutions.
What is the minimum order?
Minimum order sizes depend on commodity and program rules. They also depend on what a producer will sell for that shipment. This page does not state a minimum tonnage or a minimum value.
Which documents are required?
The invoice, the packing list, and the transport documents named in the contract and in the letter of credit. Other documents are those the contract adds. We do not issue government certificates.