Commodity Credit Corporation's Export Credit Guarantee Programs

GAO discussed the Foreign Agricultural Service's (FAS) administration of the Commodity Credit Corporation's Export Credit Guarantee and Intermediate Export Credit Guarantee programs. GAO noted that FAS: (1) did not adequately manage the programs and lacked clear program regulations for defining U.S. agricultural commodities and their eligibility under the programs; (2) issued a notice clarifying commodity eligibility and changed its policy regarding the export of imported agricultural products, but did not solicit comments regarding its impact on program users; (3) did not plan to include the policy change in its program regulations; and (4) lacked procedures for ensuring that export reports complied with its requirements regarding accuracy and completeness. GAO believes that the FAS management approach, which relies on industry self-regulation, precludes: (1) adequate enforcement of compliance; and (2) accurate accounting for outstanding guarantees.