Food Donation Programs (Food for Progress & Section 416(b)) and McGovern-Dole International Food for Education and Child Nutrition Program

U.S. FOOD AID BOOKING NOTE
For Packaged Commodities – Part II

Page 1 of 4

Dated Novermber 1, 2004

The terms and conditions contained herein have been reviewed and recommended by the U.S. Agency for International Development (hereinafter “USAID”) and the U.S.
Department of Agriculture (hereinafter “USDA”) as the standard terms and conditions applicable to mark and count cargo bookings under U.S. Government funded food
aid programs administered by these agencies. This document, when incorporated by reference or as an attachment to the U.S. FOOD AID BOOKING NOTE for
Packaged Commodities Part I (hereinafter “PART I”), forms an integral part of the contract of carriage of the cargoes described in PART I. The terms and conditions
contained herein apply to such shipments, except to the extend there are exemptions, modifications, or additional terms added in PART I, which supercede the terms
and conditions contained herein.

1
2
3
4
5

1.
LOAD/DELIVERY TERMS
Cargo to be loaded at Carriers time, risk and expense with no demurrage/ no
despatch/no detention in accordance with the following provisions. The
applicable load / delivery terms for each parcel are to be noted in PART I of
this booking note:

6
7
8
9
10
11
12
13
14
15
16
17

(A) FAS VESSEL NAMED PORT OF LOADING (POL)
Cargo will be delivered to the Carrier at the first point of rest within a USDA
approved transport terminal within the commercial limits of the named port of
loading free of expense to carrier including any wharfage assessed against
the cargo by the governing port authority and/or receiving terminal. The
Carrier is to nominate the transport terminal in writing within 3 business days
after the Carrier has received written notification from the Shipper or its agent
that all subjects on the booking have been lifted. Carrier is to be liable for all
costs incurred due to the failure to provide this information. The transport
terminal can be a freight station, a container terminal or yard, a multipurpose
cargo terminal, on the quay along side the vessel at the FAS port or any
similar receiving point.

18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

(B) INTERMODAL – PLANT – POINT OF ORIGIN (POO)
(As designated by letter “R” preceding point of origin) — The cargo shall be
delivered to the Carrier and loaded on the Carrier supplied conveyance
(containers, trucks, trailers or rail cars) at named point of origin, free of
expense to the Carrier. The Carrier shall be responsible for the costs of
transportation from said named point of loading to the U.S. port of export and
the cost of loading the cargo on board the ocean going vessel. Carrier must
provide suitable conveyances to comply with the loading capabilities and
capacity at the intermodal plant. Any costs incurred including but not limited
to liquidated damages and storage, for failing to provide suitable
conveyances will be for Carrier’s account. If containers are to be placed at
the point of origin, Carrier must ensure that the containers are placed at the
commencement of the shipping period and containers are supplied on a
continuous basis, or as otherwise mutually agreed between parties, until the
contract quantity is fulfilled.

33
34
35
36
37
38
39
40
41
42

(C) INTERMODAL – BRIDGE – POINT OF ORIGIN (POO)
(As designated by Letter “B“ preceding point of origin) — Carrier is to provide
Shipper with the exact location for delivery of cargo at the named bridge
point. Cargo shall be delivered to the Carrier on rail cars, trucks or Carrier
supplied conveyance at the named bridge point, free of expense to the
Carrier. Carrier shall be responsible for all cargo handling and transportation
expenses incurred to move the cargo from said bridge point of delivery to onboard the nominated ocean going vessel at a USDA approved U.S. port of
export. If trucks are to be used to transport the cargo to the bridge point, then
the freight tender must provide this information.

43
44
45
46
47
48
49
50
51
52
53
54
55

(D) INTERMODAL- LAKES – POINT OF ORIGIN (POO)
(MSA Sec. 17 cargo and as designated by Letter “L” preceding point of
origin) — Carrier is to nominate the marine cargo terminal at the named
Lakes Point. The Carrier’s named terminal must be approved by USDA for
handling MSA Section 17 Lakes cargo. The cargo shall be delivered to the
Carrier in rail cars, trucks or trailers at the Carrier’s named marine cargo
terminal free of cost to Carrier. The Carrier is responsible for unloading the
cargo from the conveyances at the named marine cargo terminal and loading
the cargo onto an oceangoing vessel or barge or trans-loading the cargo into
oceangoing containers. If the cargo is trans-loaded into containers, then the
Carrier is also responsible for transporting the containers to the declared
USA port of exit and the cost of loading the containers onto the oceangoing
vessel or barge.

56
57
58
59
60
61
62
63
64
65
66
67

(E) PRE-POSITIONED CARGO – PORT OF LOADING (POL)
(As designated by Letter “P “preceding pre-position port) Cargo to be made
available to the Carrier at the location as specified in the freight tender (or in
the case of Lake Charles as provided herein). Upon notification to
USDA/KCCO of vessel contract award, carrier will be notified by the
Shipper’s Agent within (2) working days as to the exact location of all cargo
contracted for carriage. The Carrier will then have four (4) working days to
accept or reject the commodity as contracted giving reasons in writing, for
any rejections. The commodity parcels rejected shall be identified to the port
and to USDA/KCCO. Cargoes rejected by the Carrier will be subject to
inspection by FGIS to determine final disposition. Rejected cargo may be
replaced by USDA/KCCO and, upon notification that same has been

68
69
70
71
72
73
74

accomplished; the Carrier will have 24 hours to inspect the replaced
commodity. The Carrier (or it’s agents or stevedores) shall sign nonnegotiable dock receipts, indicating acceptance of the cargoes in good order.
Upon this acceptance, cargo is deemed to be in a delivered position and
becomes the full responsibility of the contracted Carrier. The cargoes moving
directly from rail cars or trucks to the performing vessel or containers are
considered to be FAS cargoes.

75
76
77
78
79
80

For pre-position cargo loading in Lake Charles, LA the cargo will be made
available for loading from one to two safe berths with the following to apply:
Sheds 1, 2, 3, and 150 are to be considered as one berth. Sheds 4, 5, and 6
are to be considered as one berth. Shed 7 is to be considered as one berth.
Shed 8 and 9 are to be considered as one berth. Shed 15 is to be considered
as one berth.

81
82
83
84
85
86

2.
DISCHARGE/DELIVERY TERMS
Cargo to be discharged at Carriers time, risk and expense with no
demurrage/ no despatch/no detention, with the cargo being delivered to
Receivers in accordance with the following provisions. The applicable
discharge / delivery terms for each parcel are to be noted in PART I of this
booking note:

87
88
89
90
91
92
93
94
95
96
97
98
99

(A)

Delivered to place of rest at discharge port:
(i) Breakbulk: The cargo is to be delivered to Receiver/Consignee at
place of rest end of hook, along side vessel. If cargoes have been
containerized for Carrier convenience, the containers are to be
discharged and moved to a shed designated by the port or the Carrier’s
container freight station (CFS), where the Carrier is responsible to devan the cargo and to make it available to the Receiver at a place of rest
in the CFS.
(ii) Containerized: Containers are to be delivered to the
Receiver/Consignee at place of rest at the Carrier’s or port’s container
yard (CY), as applicable. Unless otherwise stipulated in PART I of this
booking note, the amount of free time on containers is ten (10)
calendar days.

100
101
102
103
104
105

(B)

Delivered to port warehouse or CFS:
(i)
Breakbulk: The cargo is to be placed into the warehouse(s)
within the port area.
(ii) Containerized: Containers are to be discharged and moved to
the Carrier’s CFS where the Carrier is responsible to de-van the cargo
and to make it available to the Receiver at a place of rest in the CFS.

106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126

(C)

Warehouse delivery (Breakbulk or Containerized):
Delivery will be made in accordance with 2.(C)(i) or 2.(C)(ii), as
specified in PART I, to the Receiver/’s/Consignee’s
warehouse(s),
such warehouse(s) to be specified in PART I, or if the
Receiver’s/Consignee’s warehouse(s) are not specified in PART I, then
such warehouse(s) are to be within a radius of 25 kilometers from the
center point of the city or town specified as the delivery point in the
contract. Should a nominated warehouse exceed the distance limitation
as per above, Shippers may designate another warehouse within the
distance limitation without penalty or make arrangements with the
Carrier to deliver the cargo to the nominated warehouse with any
additional expenses incurred by the Carrier to be for the Shipper’s
account and payable directly to the Carrier by the Shipper. After the
warehouse(s) has been nominated, the Carrier must advise the
Shipper within 3 working days if the warehouse is outside the distance
limitation. If the Carrier does not advise the Shipper in writing within 3
working days, then Carrier forfeits its rights under this clause to request
an alternate warehouse(s) that is within the distance limitation or to be
paid for any additional expenses incurred there from. The terms
contained in this paragraph apply to either of the delivery options listed
below.

127
128
129
130
131

(i)
Door Delivery: The cargo is to be delivered in Carrier’s
conveyance at the door of the Receiver’s/Consignee’s warehouse(s)
located outside the port area. The Receiver/Consignee is responsible
for the unloading of Carrier’s conveyance at the nominated
warehouse(s).

U.S. FOOD AID BOOKING NOTE
For Packaged Commodities – Part II

Page 2 of 4

Dated November 1, 2004

132
133
134

(ii) Floor Delivery: The cargo is to be unloaded from Carrier’s
conveyance and stacked into Receiver’s/Consignee’s warehouse(s)
located outside of the port area at the Carrier’s expense.

135
136
137

3.
STOWAGE
Break bulk cargo shall be stowed and carried below deck unless otherwise
provided herein or authorized in writing by the Shipper.

138
139
140
141
142
143
144
145
146
147
148

4.
PORT OF EMBARKATION
The cargo to be transported under this contract must be loaded on board the
vessel in a United States port of embarkation, or as authorized by
USDA/USAID, as applicable.

149
150
151
152

6.
CARGO DISPOSAL
The Carrier shall not dispose of the cargo in any manner except by delivery
to receiver/consignee at the scheduled port(s) of discharge without the prior
written approval of the Shipper.

153
154
155
156

7.
SUBSTITUTION
Vessel substitutions must be approved by the Shipper and USDA/USAID, as
applicable, and cargo shall not be loaded onto unapproved substitute
vessels.

157
158
159
160
161
162
163
164

8.
TRANSSHIPMENT
Goods shall be carried by named vessel, or approved substitute as per
Clause 7, from loading port to destination and shall not be transshipped
unless said service was contracted for under this booking note or prior
written permission is received from the Shipper. If the cargo is to be
transshipped, the originating Carrier shall issue a through bill of lading to
cover the entire movement and agree to assume all risk and expense to final
destination notwithstanding any provision of the bill of lading to the contrary.

165
166
167

9.
CARGO RE-LET
Carrier may re-let the cargo to other carriers or operators with the approval of
the Shipper and USDA / USAID (as applicable).

168
169
170
171
172

10. DEVIATION IN MODE OF DELIVERY
Any deviation in mode of delivery (direct, relay or transshipment), without the
prior approval of the Shipper, may result in an ocean freight revision to the
lowest rate offered for an acceptable mode of delivery complying with the
freight tender under which this contract was made.

173
174
175
176
177
178
179
180

For U.S. flag vessels only: If service provided under this contract is deemed
by the U.S. Maritime Administration not to be U.S. flag service for cargo
preference purposes, the contracted rate to be reduced to the lowest
responsive foreign flag rate complying with the freight tender under which
this contract was made. Carrier also agrees to refund the reduction, or to
permit the deduction from any sums remaining to be paid. In the event that a
deviation is discovered after payment is made, in whole or in part
reimbursement is to be made to USAID or USDA (as applicable).

181
182
183

11. AGENTS
Carriers are to have the right to appoint their own agents at both load and
discharge ports.

184
185
186
187
188
189
190

12. CUSTOM CLEARANCE AT DISCHARGE PORT
The Shippers/Receivers/Consignees are fully responsible for custom
clearance of the cargo at the discharge port. If the cargo is to be delivered
under a through bill of lading, the Carrier is to be responsible for any transit
and/or cross border clearances; however, Shipper/Receiver/Consignee is to
remain responsible for the final customs clearance of the cargo for the
destination country.

191
192
193
194
195
196

13. DELAY AT DESTINATION
Any expense which the Carrier may incur in connection with delivery of this
shipment at destination as a result of delay to the vessel and/or Carrier’s
equipment due to the receiver/consignee negligence shall be for the account
of the receiver/consignee and the Carrier shall have no recourse against the
Shipper on that account.

197
198
199

14. NOTICES
The Carrier shall notify the Shipper of the vessels position, status and ETA
21, 14, 7, 5 days and 24 hours prior to the scheduled load date or in

5.
FAILURE TO LIFT CARGO
In the event the vessel fails to lift all or part of the shipment as originally
booked due to the fault or negligence of the Carrier, the carrier shall be
responsible for all expenses resulting from such failure including but not
limited to pier or warehouse storage, rail, truck and/or barge demurrage,
inspection, fumigation and deterioration and re-procurement costs.

200
201
202
203
204

accordance with any other schedule as the Shipper may otherwise direct in
PART I of this Booking Note. Failure to provide such reports will be
considered a breach of this contract, and may result in cancellation of the
booking including application of clause 5 (in the case of the 14 and 7 day
notices) at the Shipper’s sole discretion.

205
206
207
208
209
210

On completion of loading the contracted cargo and upon the vessel sailing
from the load port, Carrier shall provide Shipper or Shipper’s agent a sailing
notice, stating vessel’s name, commodity, quantity loaded, bill of lading date,
load port and estimated date of arrival at discharge port. The sailing notice is
to be followed by the following notices of vessel ETA at discharge port of 10,
7, 3 days and 24 hours.

211
212
213

For containerized shipments, Carrier is to provide Shipper with the container
location information within twenty four (24) hours of the request made by the
Shipper.

214
215
216
217
218
219
220
221
222
223
224
225
226
227

15. DELAY ASSESSMENTS
If the Carrier determines that the vessel originally scheduled, or a substitute
vessel approved by the Shipper, will be unable to lift urgent cargo within five
(5) days of the contracted vessel’s ETA at load port as per PART I of this
booking note, or for non-urgent cargo within ten (10) days, the Carrier shall
promptly notify the Shipper and propose a later load date. If such notice is
received not less than twenty-one (21) days before the contracted vessel
ETA, the Shipper shall either accept the later ETA or cancel the booking
without cost to the Carrier. If the notice is received less than twenty-one (21)
days before the contracted vessel ETA, the shipper shall either cancel the
booking with the Carrier and the Carrier shall be responsible for all charges
in accordance with clause 5 of this contract or, the Shipper may accept the
later vessel ETA and apply the loading delay assessment, if applicable as
per PART I of the Booking Note.

228
229
230
231
232
233
234
235

The Shipper may impose a loading delay assessment (LDA) in the form of a
U.S. $ per metric ton per day reduction in the freight rate for each and every
day beyond the contracted load date (the contracted load date is defined as
the date that the vessel is estimated to arrive at the specified loading port),
plus a ten (10) day grace period that the vessel fails to present at the first or
sole loading port to load the cargo as specified in PART I of this Booking
Note. If a LDA is to be imposed for any parcels under this booking note, then
the LDA is to be specified in PART I of this Booking Note.

236
237
238
239
240
241

Fixed Day DDA – The Shipper may elect to impose a delivery delay
assessment (DDA) in the amount stipulated in PART I of this Booking Note
as a per metric ton reduction in the freight rate for each day (or pro-rata of a
day) for that quantity of cargo which arrives at the discharge port or final
delivery point, as applicable, beyond the latest delivery date specified in
PART I of the Booking Note.

242
243
244
245
246

Transit Time DDA – Alternatively, the Shippers may elect to impose a DDA in
the amount stipulated in PART 1 of this booking note, for all cargo which
arrives at the first port within the discharge port range, beyond the allocated
number of days for transit, as stipulated below from the time that the vessel
has sailed foreign from the last U.S. load port.

247
248
249

In either the Fixed or Transit Time DDA’s, the DDA shall continue to be
assessed until the cargo arrives at the discharge port or alternately at the
final delivery point, whichever is applicable.

250
251
252
253
254
255
256
257
258
259
260
261

The following transit times are to apply to Transit Time DDA:
Discharge Port Range
Transit Time
Central America and Caribbean 15 Days
South America
25 Days
West Africa
40 Days
North Europe
25 Days
Mediterranean
25 Days
Black Sea
35 Days
Red Sea
40 Days
South/East Africa
45 Days
Middle East and South Asia
45 Days
Far East
40 Days

262
263

If the Shipper elects to impose a Fixed Day DDA, then no LDA can be
imposed under this clause.

264
265
266
267
268

For non-urgent cargoes, the LDA and/or the DDA shall be U.S. $1.00 per
metric ton per day or pro-rata and for urgent cargoes, the LDA and/or the
DDA shall be U.S. $2.00 per metric ton per day or pro rata. Alternatively, the
Shipper may assess a different amount provided the amount is specified in
PART I of the Booking Note.

U.S. FOOD AID BOOKING NOTE
For Packaged Commodities – Part II

Page 3 of 4

Dated November 1, 2004

269
270
271

Any LDA and/or DDA will be deducted from the freight payment or
reimbursed to USDA or USAID as applicable if the freight has already been
paid.

272
273
274

16. FUMIGATION
(A) For any flour covered under this Booking Note, the provisions of
USDA/KCCO Notice EOD-83 are to apply.

275
276
277

(B) If Shippers require the cargo covered under this Booking Note to be
fumigated, then the fumigation requirements must be specified in PART I of
this Booking Note.

278
279
280

(C) If the cargo and/or the vessel is found to be infested at the discharge
port and provided clean bills of lading were issued, fumigation to be at
Carriers time, risk and expense.

281
282
283
284
285
286

17. FREIGHT
(A) Except as stipulated in Clause 18, paragraph A. (v), freight is earned
upon loading of cargo and Carrier signing/releasing to shipper or shipper’s
agent, the relevant ocean bill of lading, vessel lost or not lost. The freight is
payable as per the freight payment clause that follows, less any deductions
that may apply under this Booking Note.

287
288
289
290
291
292
293
294
295

(B) If there is any failure on the part of the Ocean Carrier to perform the
contract after the vessel tendered at the loading port, the Shippers or their
designated agent shall be entitled to incur all expenses which, in the
judgment of the U.S. Department of Agriculture or USAID as applicable are
required to enable the vessel to undertake and carry out her obligations
under the booking note, including the expenses for any liens asserted
against the vessel. Such expenses may be deducted from the freight earned
under this booking note notwithstanding any prior assignments of freight
made by the owners or operators.

296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340

18.
(A)

FREIGHT PAYMENT
FOR SECTION 416(b), Food for Progress and Food for Education
Cargoes:
(i) For Delivery at Discharge Port: Payment will be made in accordance
with the terms of the Booking Note upon presentation of the required
documents stipulated in paragraph (iii) below.
(ii) For Inland Destination Delivery or services provided after discharge:
(a) Payment of not more than Eighty Five Percent (85%) of freight or as
specified in the freight tender will be made in accordance with the
terms of this Booking Note upon presentation of the required
documents stipulated in paragraph (iii) below.
(b) Payment of the balance of freight will be payable upon presentation
of a confirmation from Shipper that inland destination delivery or
services provided after discharge has been satisfactorily provided
under this Booking Note.
(iii) Documents required to receive payment for ocean freight:
(a) One (1) signed copy of completed Form CCC- 512
(b) Four (4) copies of the original clean, unclaused on-board
bills of lading indicating the freight rate and signed by the
originating carrier
(c) For all non-containerized grain cargoes:
(1) One (1) signed copy of the Federal Grain inspection
Service (FGIS) Official Stowage Examination Certificate
(Vessel Hold Certificate);
(2) One (1) signed copy of National Cargo Bureau (NCB)
Certificate of Readiness (Vessel Hold inspection
Certificate); and
(3) One (1) signed copy of the National Cargo Bureau
(NCB) Certificate of Loading
(d) For all containerized grain and grain product cargoes:
One (1) signed copy of the FGIS Container Condition inspection
Certificate
(e) One signed copy of this liner booking note Parts I and II.
(iv) Payment of freight is to be direct payment by USDA/CCC, all
documents must be submitted to:
The Director/Operation Division
Foreign Agricultural Service
U.S Department of Agriculture
1400 Independence Ave., SW, Stop 1035
Washington DC 20250-1035
Telephone (202) 720-7736:
Accompanied by a four copies of a request for direct payment on the
carriers letterhead. All direct payments by USDA/CCC will be by
electronic transfer and must include on carrier’s letterhead, signed by
an official or agent of their company:

341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363

(a)
(b)
(c)
(d)

Payee’s email address to receive payment advice
(SF1166);
Payee‘s bank name, address, account number, type of
account being used and ABA routing code number;
Payee’s bank swift code number, as applicable;
The company’s taxpayer identification number.

(v) To receive payment in cases where the General Sales Manager
determines that circumstances of force majeure have prevented the
vessel’s arrival at the first port of discharge, the Cooperating Sponsor
and/or the Carrier shall submit all documents required by paragraph (iii)
above of this section except that USDA/CCC will not pay any remaining
balance where this booking note requires Inland Destination Delivery or
services provided after discharge and circumstances of force majeur
have prevented the vessel’s arrival at the first port of discharge or the
completion of the services.
(B)

FOR PL 480 Title II Cargoes
Payment will be made against the documentation specified below. The
Shipper will submit this documentation to USAID as promptly as is
administratively feasible after receipt from the Carrier. Further, payment
to the Carrier shall be as prompt as is administratively feasible
following receipt by the Shipper or their forwarder of freight amounts
from USAID.

364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384

(i) Clean, dated, unclaused, rated, on-board bill of lading meeting the
requirements of USAID Regulation 2, 22 CFR Part 202, Section 202.7;
(ii) Copy of vessel hold and/or inspection certificate;
(iii) Invoice for payment of commission to Carrier’s broker (if any)
marked “paid” by Carrier’s broker;
(iv) Invoice for payment of commission to Shipper’s agent marked
“paid” by Shipper’s agent;
(v) Fully signed copy of the Booking Note/Contract of Carriage;
(vi) Letter from the Shipper stating that the Carrier has paid (or made
satisfactory arrangements to pay) all charges and expenses including
Loading Delay Assessments (LDA) and/or Delivery Delay Assessments
(DDA), if any, resulting from the Carrier’s failure to lift cargo as
scheduled in accordance with this booking note or authorizing the
shipper to deduct such expenses and charges from the freight
amounts;
(vii) Form AID 1550-1 signed by the carrier;
(viii) Fumigation certificate when required;
(ix) NCB Certificate of Cleanliness;
(x) One copy of Vessel Loading Observation Procedure (VLOP)
Certificate;
(xi) Copy of Carrier’s applicable tariff pages covering this shipment.

385
386
387
388
389
390
391
392
393
394
395

19. U.S. CARRIAGE OF GOODS BY SEA ACT
It is mutually agreed that this contract is subject to all the terms and
provisions of the Carriage of Goods by Sea Act (46 U.S.C. 1300 et seq.)
unless otherwise provided in this contract. However, in case of claims for
loss, damage or shrinkage in transit, or any other claims against the Carrier,
the rules and conditions governing commercial shipments and provisions of
the Carriage of Goods by Sea Act of 1936 shall not apply as to the period
within which notice thereof shall be given to the Carriers or to the period
within which the claim shall be made or suit instituted. Nevertheless any
claim must be made or suite instituted within six (6) years of the bill of lading
date of the subject shipment.

396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411

20. GENERAL AVERAGE
Provided the Carrier has used due diligence to make the vessel seaworthy,
then in the event of accident, danger, damage or disaster before or after
commencement of the voyage resulting from any cause whatsoever, whether
due to negligence or not, for which, or for the consequences of which the
Carrier is not responsible by statute, contract or otherwise, the goods, the
shipper and/or consignees or owners of the goods will assign all rights and
responsibilities for general average and marine salvage to the Commodity
Credit Corporation (CCC), and CCC shall contribute with the Carrier in
general average to the payment of any sacrifices, losses or expenses of a
general average nature that may be made or incurred including salvage and
special charges incurred in respect to the goods. If a salving ship is owned or
operated by the carrier, salvage shall be paid for as fully as if the said salving
ship or ships belonged to strangers. General Average shall be payable
according to York/Antwerp Rules (1994). Cargo is to be released without
requiring deposits, the posting of a bond or general average security.

U.S. FOOD AID BOOKING NOTE
For Packaged Commodities – Part II

Page 4 of 4

Dated November 1, 2004

412
413
414
415
416
417
418
419
420

21. PROVISIONS OF US LEGISLATIVE ACTS
All the terms and conditions of this contract are subject to the applicable
provisions of the Agricultural Trade Development and Assistance Act of
1954, as amended for PL 480 cargoes; Section 416 of the Agricultural Act of
1949, as amended for Sec 416(b) cargoes; Section 1110 of the Food
Security Act of 1985, as amended for Food for Progress cargoes; McGovernDole International Food for Education and Child Nutrition Program, Section
3107 of the Farm Security and Rural Investment Act of 2002 for Food for
Education cargoes and regulations issued there under, as amended.

421
422
423
424
425
426
427

22. US CUSTOMS COMPLIANCE
In accordance with the enforced compliance program for outbound
documentation of the U.S. Customs Service, Carrier is hereby informed that
Carrier is responsible for the payment of any penalty assessed against the
cargo due in whole or in part to delay by Carrier in verifying final load count
and providing said final load count to the Freight forwarder/Shipping Agent
concerned.

428
429
430
431
432
433
434
435
436
437
438
439
440

23. ISM AND ISPS CODE COMPLIANCE
Carrier guarantees that this vessel, if required by the ISM (Non self-propelled
barges are exempt), and ISPS code issued in accordance with International
Convention for the Safety of Life at Sea (1974) as amended (SOLAS)
complies fully with the International Safety Management (ISM) Code and the
International Ship and Port Facilities Security (ISPS) Code and will remain so
for the entirety of her employment under this booking note. Upon request,
Carriers to provide Shippers with a copy of the relevant document of
compliance (DOC) and Safety Management Certificate (SMC) in regard to
the ISM Code and the International Ship Security Certificate (ISSC) in regard
to the ISPS Code. Carriers are to remain fully responsible for any and all
consequences from matters arising as a result of the Carrier or the vessel
being out of compliance with the ISM and ISPS code.

441
442
443
444
445
446
447
448
449
450

24. COMPLIANCE WITH SECTION 408 OF THE U.S. COAST GUARD
AUTHORIZATION ACT OF 1998
Public Law 105-383 (46 U.S.C. Section 2302 (e), establishes, effective
January 1, 1999, with respect to non-U.S. flag vessels and operators /
owners, that substandard vessels and vessels operated by operators of
substandard vessels are prohibited from the carriage of government impelled
(preference) cargo(es) for up to one year after such substandard
determination has been published electronically. As this cargo is preference
cargo, carrier must warrant that vessel(s) and owner / operators are not
disqualified to carry such cargo(es).

451
452
453
454

25 WAR RISK PREMIUM
The Carrier is to be fully responsible for any and all War Risk Insurance
Premium that may be assessed against the vessel during the duration of this
contract.

455
456
457
458
459
460
461

26. USDA / USAID NOTICES
The following USDA and USAlD “Notice to the Trade” are hereby
incorporated into this booking note. The complete text of these Notices can
be obtained at the USDA or USAID web site. In addition to the specific
notices referenced below, any cargo booked under this booking note is
subject to all relevant notices to the trade that have been issued by USDA
and/or USAID prior to the date of this booking note as specified in PART I.

462
463
464

(A) The USDA Kansas City Commodity Office’s “Container, Barge, and
Vessel Hold Inspection Requirements Title II, PL 480 and Section 416 Export
Donations” is fully incorporated in this contract.

465
466
467
468

(B) USDA Kansas City Commodity Office Notice to the trade EOD-110 dated
May 10, 2002 "Recoopering Packaged Commodities for Food Aid Programs"
is incorporated herein. A copy of the notice can be obtained from the
following FTP site: www.fsa.usda.gov/daco/eod_notices/eod110.pdf.

469
470
471
472
473

(C) USDA Kansas City Commodity Office Notice to the trade EOD-68
dated May 5, 2000 “Change in VLO Requirements and Procedures” is
incorporated herein. A copy of the notice can be obtained from the following
FTP site: ftp://fsa.usda.gov/public/export/eod68txt. A copy of the VLO
Certificate must be submitted as part of the freight payment package.

474
475
476
477

(D) USDA Kansas City Commodity Office notice to the trade and USAID
modifications to booking guidelines dated July 5, 1996, regarding changes in
vessel loading observations procedure and clarification of FAS delivery are
hereby incorporated into this booking note.

478
479
480
481

27. DISPUTE RESOLUTION
Except where USDA/CCC has retained the right to file or pursue claims,
including but not limited to marine cargo loss and damage and General
Average, Shippers to have the option of selecting one of the following dispute

482
483
484
485
486

resolution procedures which is to be specified in PART I of this Booking
Note. In the event that the Shipper does not select one of the following
procedures, any dispute arising out of this Booking Note can be adjudicated
by the Shipper or Carrier to any court of appropriate jurisdiction located in the
United States.

487
488
489
490
491
492
493
494
495

(A) Arbitration: All disputes arising out of this contract shall be arbitrated at
New York in the following manner, and be subject to U.S. Law:
One Arbitrator is to be appointed by each of the parties hereto and a third by
the two so chosen. Their decision or that of any two of them shall be final and
for the purpose of enforcing any award, this agreement may be made a rule
of the court. The Arbitrators shall be commercial men, conversant with
shipping matters. Such Arbitration is to be conducted in accordance with the
rules of the Society of Maritime Arbitrators Inc. (All World Food Program
bookings will be subject to this arbitration clause)

496
497

(B) Federal Acquisition Regulations procedure as defined under FAR:
52.233.

498
499
500

(C) Mediation to be in accordance with the rules and procedures of the
Society of Maritime Arbitrators or the American Arbitration Association as
mutually agreed between Shipper and Carrier.

501
502

Disputes involving marine loss and damage claims and related matters are
subject to the American Carriage of Goods by Sea Act.

503
504
505
506
507
508
509
510
511
512
513

28. PERFORMANCE BOND
Shipper reserves the right to require the Carrier to post a Performance Bond.
Said Bond to be in the form of a certified check only, drawn on a U.S. bank,
equivalent to five (5) percent of the gross freight, in favor of the Agency for
International Development or the United States Department of Agriculture.
The Bond to be held until the vessel completes loading and the Carrier has
released clean, un-claused original bills of lading or at the Shippers option
until the vessel arrives at the discharge port. The Shipper has the right to
cancel this booking in the event that the Carrier fails to post the Performance
Bond within 2 working days after the cargo has been booked and all subjects
lifted.

514
515
516
517
518
519
520
521
522
523
524

29. BANNER CLAUSE
USAID require that all vessels transporting food assistance cargo display a
banner and/or flag as follows:
For USAID Title II cargoes – Vessel is to display a USAID standard large size
USAID flag and a USAID banner with the revised USAID emblem. The
banner is approximately 16 feet wide by 16 feet tall and is to be displayed on
vessels carrying USAID funded cargoes. Both the banner and flag are to be
flown while the vessel enters the load/discharge ports and during cargo
operations. Carriers are to ensure that any lightering vessel(s) employed is
also to display the flag and banner during discharging operations. Carrier is
to comply with this requirement at its expense.

525
526
527
528

30. BOOKING NOTE CHANGES
Any terms or provisions inserted in or deleted from this contract by the
Carrier or Shipper or their agents shall be null and void unless approved in
writing by both the Shipper and Carrier.
----- End -----