Commodity Credit Corporation's Export Credit Guarantee Programs
T-NSIAD-89-2: Published: Oct 6, 1988. Publicly Released: Oct 6, 1988.
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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.
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