USDA PROPOSES OCEAN FREIGHT CLAIMS ADMINISTRATIVE APPEAL PROCESS
The U.S. Department of Agriculture’s Commodity Credit Corp. proposes to establish an ocean freight claims administrative appeal process in cases involving transportation-related loss or damage to food-aid shipments.
The agency currently does not have an administrative appeal process to handle the internal review of these cargo claims before the claims are referred to the Justice Department for collection through litigation.
“Whether or not title to the commodities has passed from CCC to a cooperating sponsor, which may be a foreign government, private voluntary organization, or private entity, CCC either retains the right or may be assigned the right to initiate, prosecute, and, with certain limited exceptions, retain the proceeds of cargo loss and damage claims,” the agency said.
The rule would require recipients of CCC-donated commodities to include in their ocean transportation contracts a provision that the ocean carrier agrees to participate in this administrative appeal process.
In addition, for CCC claims initiated on behalf of the U.S. Agency for International Development, the rule would require consultations between agencies and the crediting of funds collected into USAID accounts.
USDA will take comments from the industry regarding the proposed rule through April 2. All comments should be sent to Steve Mikkelsen, director of procurement and donations division, USDA/FSA/PDD/STOP 0551, 1400 Independence Ave., S.W., Washington, D.C. 20250-0551, or sent electronically to steve_mikkelsen@wdc.fsa.usda.gov.