Section Text
(a) Payment (1) Dollars
Except as provided in paragraph (2), agreements under this subchapter shall require that payment for agricultural commodities be made in dollars.
(2) Local currencies (A) In general
The Secretary may permit payment under an agreement under this subchapter in the local currency of the appropriate country in order to use the proceeds from such payments to carry out activities under section 1704 of this title.
(B) Rates of exchange
Payments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the country and that are no less favorable than the highest exchange rate obtainable by any other country.
(b) Interest
Such agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary.
(c) Duration
Payments required under such agreements may be made in reasonable annual amounts over the period (not more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement.
(d) Deferral of payments
The Secretary may defer the date on which the developing country or private entity is required to begin making payment, under such agreements, for a period of not in excess of 5 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery.
(e) Delivery of commodities
Delivery of the commodities shall be made in accordance with the terms of the agreement.
Editorial Notes
AMENDMENTS 1996—Subsec. (a)(2)(A). Pub. L. 104–127, §204(1), struck out "a recipient country to make" after "may permit" and substituted "the appropriate country" for "such country". Subsec. (c). Pub. L. 104–127, §204(2), struck out "less than 10 nor" before "more than 30". Subsec. (d). Pub. L. 104–127, §204(3), substituted "developing country or private entity" for "recipient country" and "5 years" for "7 years". 1990—Pub. L. 101–624 amended section generally, substituting present provisions for provisions requiring President to consider efforts of recipients to increase agricultural production, determine amount needed in foreign currencies, protect other markets for United States commodities, make sales only to friendly countries, use private trade channels whenever practicable, consider expansion of markets, prevent resale by recipients, obtain favorable exchange rates, emphasize production of food crops, assist friendly countries in avoiding Communist domination, require payment of at least 5 per centum of purchase price upon delivery in dollars or convertible currency, obtain commitments from recipients to publicize source of food, require convertibility of foreign currencies, avoid displacement of sales that would otherwise have been made, assure United States obtains fair share in increase of commercial purchases by recipients, assure convertibility of foreign currencies at uniform exchange rates, and favor countries promoting private sector in allocation of commodities. 1987—Subsec. (r). Pub. L. 100–202 added subsec. (r). 1985—Subsec. (b). Pub. L. 99–198, §1111(d)(1), inserted ", in section 1708 of this title," after "section 1704 of this title". Subsec. (d). Pub. L. 99–198, §1111(d)(2), struck out "for dollars on credit terms" after "agricultural commodities". Subsec. (m). Pub. L. 99–198, §1111(d)(3), inserted introductory text "except as provided in section 1708 of this title," substituted a period for the semicolon at end of cl. (2), and inserted provisions respecting period for convertibility of foreign currencies into dollars and establishment in the agreement for sale of a schedule for conversion without specifying the exchange rate. Subsec. (n). Pub. L. 99–198, §1111(d)(4), struck out "for dollars on credit terms" after "sales" and "for cash dollars" after "made". Subsec. (o). Pub. L. 99–198, §1111(d)(5), substituted "take" for "Take". Subsecs. (p), (q). Pub. L. 99–198, §1111(d)(6), (7), substituted "except as provided in section 1708 of this title, assure convertibility" for "Assure convertibility". 1981—Subsec. (b). Pub. L. 97–113, §401(2), struck out requirement that President take steps to assure a progressive transition from sales for foreign currencies to sales for dollars (or to the extent that transition to sales for dollars under the terms applicable to such sales is not possible, transition to sales for foreign currencies on credit terms no less favorable to the United States than those for development loans made under section 2151t of title 22, and on terms which permit conversion to dollars at the exchange rate applicable to the sales agreement) at a rate whereby the transition can be completed by Dec. 31, 1971; and struck out reference to subsec. (c) of section 1704 of this title. Subsec. (d). Pub. L. 97–113, §401(3), in defining "friendly country", struck out provision excluding from term "for the purpose only of sales of agricultural commodities for foreign currencies under this subchapter, any country or area dominated by a Communist government". Subsec. (l). Pub. L. 97–113, §401(4), struck out requirement that President obtain commitments from friendly purchasing countries that will insure, insofar as practicable, that food commodities sold for foreign currencies under this subchapter shall be marked or identified at point of distribution or sale as being provided on a concessional basis to the recipient government through the generosity of the people of the United States of America. 1979—Subsec. (f). Pub. L. 96–53 substituted provisions requiring Presidential consideration to the development and expansion of markets for United States agricultural commodities and local foodstuffs, for provisions requiring special Presidential consideration to the development and expansion of foreign markets for United States agricultural commodities. 1978—Subsec. (b). Pub. L. 95–424 substituted "section 2151t of title 22" for "section 2161 of title 22". 1977—Subsec. (b). Pub. L. 95–88, §211(b)(1), substituted "and in subchapters I and III–A of this chapter" for "and in section 1706(b)(2) of this title" after "uses specified in subsections (a), (b), (c), (e), and (h) of section 1704". Subsec. (d). Pub. L. 95–88, §201(b), struck out provisions that "friendly country" not include, for the purpose only of sales of agricultural commodities under this subchapter, any nation which sold or furnished or permitted ships or aircraft under its registry to transport to or from Cuba or North Vietnam (excluding United States installations in Cuba) any equipment, materials, or commodities so long as they were governed by a Communist regime: Provided, That this exclusion from the definition of "friendly country" could be waived by the President if he determined that such waiver was in the national interest and reported such determination to the Congress within 10 days of the date of such determination, and struck out provisions that "friendly country" also not include, for the purposes only of sales under this subchapter, the United Arab Republic, unless the President determined that such sale was in the national interest of the United States, that no sales to the United Arab Republic be based upon the requirements of that nation for more than one fiscal year, and that the President keep the President of the Senate and the Speaker of the House of Representatives fully and currently informed with respect to sales made to the United Arab Republic under this subchapter. 1975—Subsec. (a). Pub. L. 94–161, §203(1), substituted "efforts to increase their own agricultural production, especially through small, family farm agriculture, to improve their facilities for transportation, storage, and distribution of food commodities, and to reduce their rate of population growth" for "efforts to meet their problems of food production and population growth". Subsec. (b). Pub. L. 94–161, §203(2), substituted "section 1704 and in section 1706(b)(2) of this title" for "section 1704 of this title". Subsec. (d). Pub. L. 94–161, §203(3), substituted second proviso "Provided, That this exclusion from the definition of ‘friendly country’ may be waived by the President if he determines that such waiver is in the national interest and reports such determination to the Congress within 10 days of the date of such determination" for "Provided, That with respect to furnishing, selling, or selling and transporting to Cuba medical supplies, non-strategic raw materials for agriculture, and non-strategic agricultural or food commodities, sales agreements may be entered into if the President finds with respect to each such country and so informs the Senate and the House of Representatives of the reasons therefor, that the making of each such agreement would be in the national interest of the United States and all such findings and reasons therefor shall be published in the Federal Register". 1973—Subsec. (o). Pub. L. 93–125 made technical correction to Pub. L. 93–86, see 1973 Amendment note below. Pub. L. 91–524, §703, as added by Pub. L. 93–86 as amended by Pub. L. 93–125, inserted "and that commercial supplies are available to meet demands developed through programs carried out under this chapter." before the semicolon at end. 1968—Subsec. (b). Pub. L. 90–436, §4, made mandatory, except when determined by President to be inconsistent with objectives of this chapter, proviso that President, in agreements for credit sales, require immediate payment in dollars or in foreign currencies upon delivery of agricultural commodities, such payment to be considered as an advance payment of earliest obligations. Subsecs. (o) to (q). Pub. L. 90–436, §5, added subsecs. (o) to (q). 1966—Subsec. (a). Pub. L. 89–808 substituted provisions respecting self-help measures for meeting problems of food production and population growth for former provisions for appropriations for reimbursement of Commodity Credit Corporation, advance use of other funds, and classification of expenditures, now provided for in part by section 1733 of this title. Subsec. (b). Pub. L. 89–808 substituted provisions respecting taking steps to assure a progressive transition from sales for foreign currencies to sales for dollars (such transition to be completed by December 31, 1971) but authorizing payment in foreign currencies for purposes of section 1704(a) to (c), (e), and (h) of this title for former limitation on transactions, now provided for by section 1710 of this title. Subsec. (c). Pub. L. 89–808 redesignated provisions of former section 1701(a) of this title as subsec. (c), substituting "subchapter" for "chapter". Subsec. (d). Pub. L. 89–808 redesignated provisions of former section 1707 of this title as subsec. (d), provided for sales agreements only with friendly countries and for periodic reports to Congress of status of such countries, deleted from definition of "friendly country" (formerly "friendly nation") clause "(1) the U.S.S.R.", redesignated cls. (2) to (4) as (1) to (3), substituted "country" for "nation", struck out "or controlled" after "dominated" in cl. (2), amended cl. (3) to include North Vietnam, insert selling or furnishing ships or aircraft, substitute "so long as they are governed by a Communist regime" for ", so long as Cuba is governed by the Castro regime", and provided for entry into sales agreements when in the national interest for furnishing, selling, or selling and transporting to Cuba medical supplies, etc., upon information to Congress and publication in Federal Register, designated existing provisions as cl. (4), and substituted requirement of information to the President of the Senate of sales to United Arab Republic rather than the Foreign Relations Committee and Appropriations Committee of the Senate. Subsec. (e). Pub. L. 89–808 redesignated provisions of former section 1701(b) of this title as subsec. (e), inserting provision for the taking of steps to assure that small business has adequate and fair opportunity to participate in sales made under authority of this chapter. Subsec. (f). Pub. L. 89–808 redesignated provisions of former section 1701(c) of this title as subsec. (f), substituting "the development and expansion of foreign markets for United States agricultural commodities" for "utilizing the authority and funds provided by this chapter, in order to develop and expand continuous market demand abroad for agricultural commodities" and "emphasis on more adequate storage, handling, and food distribution facilities as well as long-term development of new and expanding markets by encouraging economic growth" for "emphasis on underdeveloped and new market areas". Subsec. (g). Pub. L. 89–808 redesignated provisions of former section 1701(d) of this title as subsec. (g), substituted "obtain", "purchasing countries", and "subchapter" for "seek and secure", "participating countries", and "chapter" and struck out "surplus" before "agricultural commodities". Subsec. (h). Pub. L. 89–808 redesignated provisions of former section 1701(f) of this title as subsec. (h). Subsec. (i). Pub. L. 89–808 added subsec. (i). Subsec. (j). Pub. L. 89–808 incorporated in provisions added as subsec. (j) former section 1693 of this title, substituting "to be independent of domination or control by any world Communist movement" for "to be independent of trade with the Union of Soviet Socialist Republics or the Communist regime in China and with nations dominated or controlled by the Union of Soviet Socialist Republics" and "sales agreements under this subchapter with any government or organization controlling a world Communist movement or with any country with which the United States does not have diplomatic relations" for "transactions under this subchapter or subchapter I of this title with the Union of Soviet Socialist Republics or any of the areas dominated or controlled by the Communist regime in China" and struck out provision for prevention of increased availability of commodities to unfriendly nations. Subsec. (k). Pub. L. 89–808 added subsec. (k). Subsec. (l). Pub. L. 89–808 added subsec. (l). Subsec. (m). Pub. L. 89–808 redesignated provisions of former section 1701(g) of this title as par. (1) and added par. (2). Subsec. (n). Pub. L. 89–808 incorporated in provisions added as subsec. (n) part of former section 1734 of this title requiring the Secretary to take such reasonable precautions as he determines necessary to avoid replacing any sales which the Secretary found and determined would otherwise be made for cash dollars. 1964—Subsec. (a). Pub. L. 88–638, §1(4), directed the President to classify expenditures under this chapter as for international affairs and finance rather than for agriculture and agricultural resources. Subsec. (b). Pub. L. 88–638, §1(5), substituted "1965" for "1962", "1966" for "1964", and "$2,700,000,000 plus any amount by which agreements entered into in prior years have called or will call for appropriations to reimburse the Commodity Credit Corporation in amounts less than authorized for such prior years by this chapter as in effect during such years" for "$4,500,000,000". 1961—Subsec. (b). Pub. L. 87–128 substituted authorization provision of $4,500,000,000 for period beginning January 1, 1962, and ending December 31, 1964, with a limitation of $2,500,000,000 for any one calendar year, for authorization provision of $1,500,000,000 plus any amount by which agreements entered into in the preceding calendar year called for appropriations in amount less than authorized for such preceding year by this chapter as in effect during the preceding year for period beginning January 1, 1960, and ending December 31, 1961. Pub. L. 87–28 authorized agreements during the calendar year 1961 calling for appropriations of not more than $3,500,000,000 plus any unused authority carried over from 1960. 1959—Subsec. (b). Pub. L. 86–341 substituted "in any calendar year during the period beginning January 1, 1960, and ending December 31, 1961" for "during the period beginning July 1, 1958, and ending December 31, 1959", "$1,500,000,000" for "$2,250,000,000", "in the preceding calendar year" for "in prior fiscal years", "for such preceding year" for "for such prior fiscal years", and "during such preceding year" for "during such fiscal years". 1958—Subsec. (b). Pub. L. 85–931 amended subsec. (b) generally, substituting "Agreements entered into" for "Transactions carried out", providing for $2,250,000,000 for sales between July 1, 1958, and Dec. 31, 1959, and for carrying over unused authorizations from one fiscal to succeeding fiscal years, and striking out clause that limitation on sales shall not be apportioned by year or by country and shall be considered as an objective to be reached as rapidly as possible within the safeguards of this chapter. 1957—Subsec. (b). Pub. L. 85–128 substituted "$4,000,000,000" for "$3,000,000,000". 1956—Subsec. (a). Act May 28, 1956, authorized appropriations equal to all Commodity Credit Corporation funds expended for ocean freight costs. Subsec. (b). Act Aug. 3, 1956, increased from $1,500,000,000 to $3,000,000,000 the limitation on sales. 1955—Subsec. (b). Act Aug. 12, 1955, increased from $700,000,000 to $1,500,000,000 the limitation on sales, and provided that this limitation shall not be apportioned by year or by country.EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–424 effective Oct. 1, 1978, see section 605 of Pub. L. 95–424, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95–88 effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as a note under section 1702 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–638, §1(5), Oct. 8, 1964, 78 Stat. 1035, provided that the amendment made by section 1(5) is effective Jan. 1, 1965. EFFECTIVE DATE OF 1961 AMENDMENT Pub. L. 87–128, title II, §201(2), Aug. 8, 1961, 75 Stat. 306, provided that the amendment made by section 201(2) is effective Jan. 1, 1962. EFFECTIVE DATE OF 1959 AMENDMENT Pub. L. 86–341, title I, §2, Sept. 21, 1959, 73 Stat. 606, provided that the amendment made by section 2 is effective Jan. 1, 1960.
Citation
7 U.S.C. § 1703 (2018)