A firm export sale must exist before an exporter may submit an application for a payment guarantee. An application for a payment guarantee may be submitted in writing or may be made by telephone, but, if made by telephone, it must be confirmed in writing to the office specified in the Contacts P/R. An application must identify the name and address of the exporter and include the following information:

Name of the destination country;

Name and address of the importer;

Name and address of the intervening purchaser, if any, and a statement that the commodity will be shipped directly to the importer in the destination country;

Date of sale;

Exporter's sale number;

Delivery period as agreed between the exporter and the importer;

A full description of the commodity (including packaging, if any);

Mean quantity, contract loading tolerance and, if the exporter chooses, a request for CCC to reserve coverage up to the maximum quantity permitted by the contract loading tolerance;

Unit sales price of the commodity, or a mechanism to establish the price, as agreed between the exporter and the importer. If the commodity was sold on the basis of CFR or CIF, the actual (if known at the time of application) or estimated value of freight and, in the case of sales made on a CIF basis, the actual (if known at the time of application) or estimated value of marine and war risk insurance, must be specified;

Description and value of discounts and allowances, if any;

Port value (includes upward loading tolerance, if any);

Guaranteed value;

Guarantee fee;

The term length for the credit being extended and the intervals between principal payments for each shipment to be made under the export sale;

A statement indicating whether any portion of the export sale for which the exporter is applying for a payment guarantee is also being used as the basis for an application for participation in any of the following CCC or USDA export programs: Export Enhancement Program, Dairy Export Incentive Program, Sunflowerseed Oil Assistance Program, or Cottonseed Oil Assistance Program. The number of the Agreement assigned by USDA under one of these programs should be included, as applicable;

Other information as requested by CCC or specified in Program Announcements and Notices to Participants, as applicable; and

The exporter's statement, “ALL SECTION 1493.440 CERTIFICATIONS ARE BEING MADE IN THIS APPLICATION” which, when included in the application by the exporter, will constitute a certification that it is in compliance with all the requirements set forth in § 1493.440.

An application for a payment guarantee may be approved as submitted, approved with modifications agreed to by the exporter, or rejected by the GSM. In the event that the application is approved, the GSM will cause a payment guarantee to be issued in favor of the exporter. Such payment guarantee will become effective at the time specified in § 1493.450(b). If, based upon a price review, the unit sales price of the commodity does not fall within the prevailing commercial market level ranges, as determined by CCC, the application will not be approved.

Ineligible exporter. An exporter will be ineligible to obtain a payment guarantee if such exporter:

Directly or indirectly owns or controls the importer;

Is directly or indirectly owned or controlled by the importer; or

Is directly or indirectly owned or controlled by a person(s) or entity(ies) which also owns or controls the importer.