FSA 

HANDBOOK 

Warehouses Operating Under the 

Sugar Storage Agreement 

For Warehouse Operators 

SHORT REFERENCE 

1-WO Sugar 

UNITED STATES DEPARTMENT OF AGRICULTURE 

Farm Service Agency 

Washington, DC 20250 
. 
 

UNITED STATES DEPARTMENT OF AGRICULTURE 

Farm Service Agency 

Washington, DC 20250 

Warehouses Operating Under the Sugar 

Storage Agreement 

1-WO Sugar Amendment 1 

Approved by: Deputy Administrator, Commodity Operations 

Amendment Transmittal 

A Reason for Issuance 

This handbook provides: 

 policy and procedures for initial and continued approval of warehouses operating under CCC 

SSA 

 proper form usage. 

2-25-14 Page 1 
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Table of Contents 

Page No. 

Part 1 Basic Provisions 

1 General Information ............................................................................................. 1-1 

2 Organizational Structure ...................................................................................... 1-2 

3 General Responsibilities ...................................................................................... 1-4 

4-10 (Reserved) 

Part 2 Storing and Receiving Sugar Subject to SSA 

11 SSA Applicability ................................................................................................ 2-1 

12 Storing Raw and Refined Sugar........................................................................... 2-2 

13 CCC-Interest Sugar Storage Locations................................................................ 2-3 

14 Redeeming Warehouse-Stored Sugar Under Loan .............................................. 2-4 

15 Warehouse Receipts ............................................................................................. 2-5 

16-30 (Reserved) 

Part 3 Price Support Sugar 

31 Deliveries for Handling Only – Immediate Shipment ......................................... 3-1 

32 Storing CCC-Interest Sugar ................................................................................. 3-2 

33 Transportation Information .................................................................................. 3-3 

34-50 Reserved 

Part 4 CCC-Interest Sugar Loadouts and Settlements 

51 Loading Orders and Shipping Instructions .......................................................... 4-1 

52-60 (Reserved) 

Part 5 Invoicing and Paying Charges 

61 CCC Policy on Making Payments and Interest on Late Payments ...................... 5-1 

62 Periodic Payments on Quarterly Invoices ............................................................ 5-2 

63 ACH Payment Process ......................................................................................... 5-4 

64 SF-3881’s............................................................................................................. 5-4 

Exhibits 

1 Reports, Forms, Abbreviations, and Redelegations of Authority 

2 Definitions of Terms Used in This Handbook 

3, 4 (Reserved) 

5 CCC-28, Sugar Storage Agreement 

6 (Reserved) 

CCC-25-1, Schedule of Warehouses Covered by Storage Agreement No. A ___ -3-CCC-___ 

2-25-14 1-WO Sugar Amend. 1 TC Page 1 

7 
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1 

Par. 1 

Part 1 Basic Provisions 

General Information 

A Purpose and Scope 

This handbook is intended to communicate to warehouse operators the procedures and 

expectations of CCC for warehouses operating under SSA (CCC-28) 

SSA means an agreement, containing terms and conditions for storage and handling of 

CCC-interest sugar, executed by a CCC contracting officer and the warehouse entity when a 

warehouse is approved. 

The warehouse examiners representing USDA make original examinations of warehouses 

requesting approval and also conduct periodic examinations of warehouses approved by 

SSA. These examinations verify that the provisions of SSA are being followed. 

Warehouse examinations do not relieve the warehouse operator of any responsibility under 

SSA. 

See Exhibit 5 for SSA (CCC-28). 

Note: Instructions contained in this handbook do not alter, modify, or otherwise supersede 

the terms and conditions of SSA. 

B Handbook Amendments 

DACO will make available all new, revised, or amended handbooks. Amendment 

transmittals shall include: 

 explanation of the reason for the issuance, revision, or amendment; 

 identification of obsolete material; 

 page control chart. 

C Accessing Forms 

Blank forms can be accessed at the USDA Service Center eForms web site at 

http://forms.sc.egov.usda.gov/eForms/welcomeAction.do?Home. New forms are 

continually being made available. Check often for updates to the eForms web site. Forms 

available on eForms are provided in Adobe Portable Document Format (PDF). 

2-25-14 1-WO Sugar Amend. 1 Page 1-1 
 

2 

Par. 2 

Organizational Structure 

A FSA Organizational Structure 

FSA is an agency of USDA that administers programs through the corporate entity of CCC, 

as authorized by law. Sugar programs are administered by DACO and FSA State and County 

Offices. 

B Washington, DC, Office 

DACO, in Washington, DC, establishes policy and procedures applicable to warehouses 

under SSA. 

C Kansas City Offices 

DACO, KCCO determines whether a warehouse operation meets the terms and conditions of 

SSA. 

D OBF 

OBF provides financial management services for KCCO and/or CCC. These services 

include SSA payments, loading order settlements, and claims-related activity. 

E Correspondence 

The following table identifies how correspondence must be addressed. Reference this table, 

and the list of key personnel provided in subparagraph F, to address all correspondence. 

IF mail is... THEN address to... AND indicate... 

 certified 

 regular 

Attention: [as applicable] 

USDA, FSA 

BEACON FACILITY 

MAIL STOP [4-digits] 

PO BOX 419205 

KANSAS CITY MO 64141-6205 

 Attention 

Example: KCCO, WLED, SCB 

 Mail Stop according to 

subparagraph F. 

 express 

 overnight 

 UPS 

 other 

Attention: [as applicable] 

USDA, FSA 

BEACON FACILITY 

MAIL STOP [4-digits] 

9240 TROOST AVE 

KANSAS CITY MO 64131-3055 

Telephone: [as applicable] 

 Attention 

Example: OBF, ICPO, PMO 

 Mail Stop and telephone number 

according to subparagraph F. 

2-25-14 1-WO Sugar Amend. 1 Page 1-2 
 

2 

Par. 2 

Organizational Structure (Continued) 

F Key Personnel List 

The following table provides key personnel of DACO and OBF. 

Office Mail Stop 

Telephone 

Number FAX Number 

DACO 

Washington, DC 

Director 0553 202-720-2121 202-690-3123 

Program Manager 202-690-2434 

KCCO 

Director 8698 816-926-6301 816-823-4034 

Deputy Director 816-926-1432 

WLED 9148 816-926-6843 816-926-1774 

Examination Branch 816-926-6582 

Licensing Branch 816-926-6474 

SCB 8748 816-926-6446 816-926-1426 

Contract Reconciliation Division 8758 816-926-6325 816-823-1805 

Financial Review Branch 816-823-1134 

OBF 

Director, FSC 8538 816-926-3250 816-823-1181 

Internal Control and Planning Office 8548 816-926-6022 816-823-1458 

Payment Management Office 8588 816-926-6772 816-926-6347 

2-25-14 1-WO Sugar Amend. 1 Page 1-3 
 

3 

Par. 3 

General Responsibilities 

A Warehouse Operator Responsibilities 

SSA warehouse operators must: 

 be knowledgeable and have an understanding of the following: 

 the terms and conditions in SSA and the documents incorporated by reference 

 this handbook 

 communicate with the CCC contracting officer about any question or item of concern not 

covered in this handbook 

 store CCC-interest sugar only in: 

 approved storage space 

 warehouse or warehouses listed on CCC-25-1 and as directed by KCCO 

 according to good commercial practices 

 bags or bulk on a commingled basis according to SSA 

 not store sugar in a basement unless the basement is approved under SSA 

 maintain the warehouse in a sound, clean condition and take all reasonable steps to keep 

it free of insects, rodents, birds, and other conditions that may adversely affect the 

condition of the sugar 

 take all reasonable steps to promptly detect any deterioration, insect infestation, rodent 

damage, mold, clumping, or any other condition that may adversely affect the condition 

of the sugar 

 have supervisory personnel and employees at the warehouse during regular business 

hours 

Note: KCCO directs its shipping instructions, inspections, telephone inquiries, etc., to 

warehouse operators during regular business hours, and personnel must be 

available for response. 

 make every effort to adhere to schedules when unloading and loading appointments are 

required 

2-25-14 1-WO Sugar Amend. 1 Page 1-4 
 

3 

Par. 3 

General Responsibilities (Continued) 

A Warehouse Operator Responsibilities (Continued) 

 not unduly delay loading or unloading when the warehouse operates on a first-come, 

first-served basis 

 be liable for loss and/or damage to CCC-interest sugar according to SSA 

 have certain warehousing responsibilities and obligations, including but not limited to, 

the following: 

 maintain records and furnish reports when requested by CCC-authorized 

representatives 

 allow inspections/audits of warehouse equipment, stored stocks, and all records by 

CCC-authorized representatives 

 maintain a stock of sugar of the same quantity, quality, and grade as deposited in the 

warehouse 

Note: The sugar must be representative of the quality the warehouse operator is 

obligated to deliver to all the depositors of sugar stored in the warehouse, or 

as required by a certifying Agency. See paragraph 12. 

 take the necessary steps to maintain the condition of the sugar in-store 

Note: If the warehouse operator cannot prevent the deterioration of the sugar after 

corrective measures have been exhausted, the warehouse operator must 

immediately telephone KCCO, WLED, SCB at 816-926-6446. 

 notify KCCO, WLED, SCB, in writing according to subparagraph 2 E, as soon as 

possible about changes in warehouse operations, such as the following: 

 operating or controlling entity 

 location or code mergers 

 storage capacity additions or deletions 

 address, ZIP Code, telephone, and/or FAX number 

 requests for termination 

2-25-14 1-WO Sugar Amend. 1 Page 1-5 
 

3 

Par. 3 

General Responsibilities (Continued) 

A Warehouse Operator Responsibilities (Continued) 

 maintain current and complete records of all sugar stored, handled, or under control of the 

warehouse operator 

 provide KCCO, on request, confirmation of audited inventory balances of stored 

CCC-interest sugar 

 provide a current financial statement to KCCO, as required 

 have a security plan that includes measures to protect the sugar handled and stored under 

SSA 

 conduct a facility vulnerability assessment and establish procedures, as required in SSA 

 be responsible for payment of fees, as required in SSA 

 provide: 

 this handbook, as necessary, to employees 

 instructions to employees about the care and handling of sugar stored under SSA 

 instructions to employees about the business practices and communications necessary 

between KCCO and the warehouse operator. 

2-25-14 1-WO Sugar Amend. 1 Page 1-6 
 

Par. 3 

3 General Responsibilities (Continued) 

B Net Worth and Financial Statements 

Warehouse operators must meet the requirements established by CCC for net worth and 

working capital, as established in SSA. 

Financial statement responsibilities are specified in SSA. 

Note: Financial statements must be submitted to KCCO, Contract Reconciliation Division, 

Financial Review Branch within 90 calendar days after the close of the warehouse 

operator’s fiscal or calendar year, according to SSA. 

C Financial Protection 

Warehouse operator may be required to furnish bonds, letters of credit, or other financial 

protection as determined by CCC. 

D Insurance 

Warehouse operators are not obligated to insure CCC-interest sugar. If the warehouse 

operator insures CCC-interest sugar, then such insurance will inure to the benefit of CCC. 

4-10 (Reserved) 

2-25-14 1-WO Sugar Amend. 1 Page 1-7 
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Par. 11 

Part 2 Storing and Receiving Sugar Subject to SSA 

11 SSA Applicability 

A Sugar Subject to SSA 

Sugar delivered by producers for storage or handling is subject to SSA if: 

 pledged as collateral for a warehouse-stored price support loan 

 delivered to satisfy a farm-stored loan under a price support program 

 stored in the warehouse and forfeited under the Price Support program. 

B Provision Applicability 

SSA provisions apply: 

 while the sugar is in storage 

 when sugar is ordered to be loaded out by CCC, until the sugar is loaded into the 

transportation conveyance and accepted by the carrier 

 until the sugar is released to either of the following: 

 warehouse operator in-store at the warehouse 

 a third party. 

SSA settlement provisions apply until final settlement is made for sugar loaded out. 

2-25-14 1-WO Sugar Amend. 1 Page 2-1 
 

Par. 12 

12 Storing Raw and Refined Sugar 

A Commingling 

Warehouse operators may commingle CCC-interest sugar on the basis of the same quality 

and grade. 

B Commodity Quality Protection 

Warehouse operators must: 

 not store sugar near odorous materials, such as detergents, perfumed products, rubber 

tires, kerosene, or volatile chemicals 

 ensure that storage facilities are clean and free of toxic materials, such as insecticide 

residues that can migrate into bagged sugar 

 maintain facilities to prevent entry of outside water, condensation, and subsurface water 

 store sugar according to good commercial practices. 

2-25-14 1-WO Sugar Amend. 1 Page 2-2 
 

Par. 13 

13 CCC-Interest Sugar Storage Locations 

A Forwarding CCC-Interest Sugar 

Warehouse operators may hold CCC-interest sugar in-store at other locations according to 

Federal and State statutes. CCC may allow forwarding when CCC determines forwarding is 

in its best interest. 

To request forwarding approval, warehouse operators must: 

 provide in writing to KCCO: 

 reason forwarding is being requested 

 total quantity to be moved 

 length of time forwarding is requested 

 name and location of the warehouse where the sugar will be stored 

Note: The storing warehouse must be approved under SSA on CCC-25-1. 

 obtain written permission from KCCO before forwarding CCC-interest sugar. 

B Approval to Forward 

If CCC grants the warehouse operator permission to forward CCC-interest sugar, in writing, 

the warehouse operator must: 

 obtain non-negotiable receipts from the receiving warehouse for the forwarded sugar 

 provide delivery of sugar to the warehouse where the sugar was first deposited 

Note: CCC will not bear any part of handling, storage, or transportation costs. 

 provide a daily position record that contains a column showing the stored sugar located in 

a forwarded position. 

Before moving producer-owned loan sugar, the warehouse operator must obtain written 

permission from the producer who owns the sugar. 

2-25-14 1-WO Sugar Amend. 1 Page 2-3 
 

Par. 14 

14 Redeeming Warehouse-Stored Sugar Under Loan 

A Repaying Warehouse-Stored Loans 

Producers may: 

 repay a warehouse-stored loan in-full or in-part before CCC acquires the sugar 

 authorize a buyer or warehouse operator to repay the loan. 

B Warehouse Operator Responsibility 

If the warehouse operator has been authorized to repay the loan, the warehouse operator 

must contact the FSA County Office for instructions to redeem the sugar. 

2-25-14 1-WO Sugar Amend. 1 Page 2-4 
 

Par. 15 

15 Warehouse Receipts 

A KC-227 or KC-227-A Instead of Warehouse Receipts 

When sugar is placed under loan, forfeited, or purchased, KC-227 (subparagraph C) or 

KC-227-A (subparagraph D) should be used instead of warehouse receipts. 

B General Requirements 

The processor must submit KC-227 or KC-227-A that meets the following guidelines. 

 All KC-227’s or KC-227-A’s must: 

 represent eligible sugar actually stored in the CCC-approved warehouse 

 be issued to the eligible processor or CCC, as applicable 

 show ownership, if sugar is owned by the processor solely, jointly, or in common 

with others. 

 KC-227 must be used for raw sugar. 

 KC-227-A must be used for refined sugar. 

 All KC-227’s or KC-227-A’s must include all of the following: 

 type of sugar 

 name and location of storing warehouse 

 CCC-assigned warehouse code 

 date issued 

 crop year 

 whether sugar was received by rail, truck, barge, or cart 

 signature of the warehouse operator or authorized agent 

 total net pounds (actual weight) 

 control number assigned by the warehouse operator. 

Notes: Zeros must be entered when in or out charges have not been prepaid. 

For in-process loans, KC-227’s or KC-227-A’s must be submitted when sugar is 

converted, as applicable. 

2-25-14 1-WO Sugar Amend. 1 Page 2-5 
 

Par. 15 

15 Warehouse Receipts (Continued) 

B General Requirements (Continued) 

 KC-227’s must include the following: 

 total net pounds 

 polarity 

 ash 

 color 

 grain size 

 percent moisture. 

 KC-227-A’s must include applicable quality factors, including gross weight and number 

of units, if bagged. 

2-25-14 1-WO Sugar Amend. 1 Page 2-6 
 

Par. 15 

15 Warehouse Receipts (Continued) 

C Example of KC-227 

The following is an example of KC-227. 

2-25-14 1-WO Sugar Amend. 1 Page 2-7 
 

Par. 15 

15 Warehouse Receipts (Continued) 

D Example of KC-227-A 

The following is an example of KC-227-A. 

16-30 (Reserved) 

2-25-14 1-WO Sugar Amend. 1 Page 2-8 
 

 

Par. 31 

Part 3 Price Support Sugar 

31 Deliveries for Handling Only – Immediate Shipment 

A General Instructions 

KCCO will issue shipping instructions on CCC-156, to the handling warehouse operator. 

CCC-156 is issued when KCCO receives information from FSA State and County Offices 

that storage space is not available within the normal delivery area of the processor. 

B Warehouse Operator Responsibilities 

A warehouse operator must not: 

 accept sugar for handling before CCC-156 has been received from KCCO 

 ship CCC-interest sugar on CCC-156 before the delivery of the sugar from a processor. 

A warehouse operator must handle a processor’s sugar on a commingled basis. 

The handling warehouse operator must: 

 obtain an official sugar inspection and analysis on receipt of sugar from a processor, 

when requested by the processor or directed, in writing, by CCC 

 immediately notify the local FSA County Office and KCCO, WLED, SCB, if it is 

determined that the sugar is of low quality 

Note: FSA County Offices may initiate a local sale of low quality sugar in the 

processing facility. 

 invoice OBF, for receiving, load out, and inspection charges for the sugar handled. 

C CCC-156 Quantity 

Loan program policies allow producers to redeem sugar through the loan maturity date. 

Therefore, the quantity of sugar to be handled that is shown on CCC-156 is only an estimate. 

The estimated quantity on a handling only CCC-156 does not obligate CCC in any way. 

CCC does not guarantee that any sugar will be delivered, nor does it guarantee revenues to 

the consignee. 

2-25-14 1-WO Sugar Amend. 1 Page 3-1 
 

Par. 32 

32 Storing CCC-Interest Sugar 

A Sugar Pledged as Loan Collateral 

Current policy governing the sugar loan program does: 

 not provide for either of the following: 

 physically moving sugar under loan to a different warehouse through reconcentration 

or transfer 

 replacing sugar that is under loan with sugar in a different location through a 

substitution paper transaction. 

 provide that sugar can be moved under all of the following conditions: 

 loan is repaid at principal plus interest 

 sugar is moved to a new warehouse that has SSA. 

 sugar is repledged as loan collateral 

Note: The maturity date for the repledged sugar loan must be the same as the 

maturity date for the original note and security agreement. 

Anyone wanting to move sugar according to this subparagraph should contact the FSA 

County Office that disbursed the original loan. 

Notes: Sugar that was not previously under loan with CCC is not eligible to be repledged. 

All repledged sugar loans mature no later than September 30. 

B Loan Sugar Forfeited 

CCC will take title to unredeemed sugar on the day following the loan maturity date if a 

producer does not repay a warehouse-stored loan before maturity. CCC will prepare a loan 

forfeiture invoice according to paragraph 62. 

C Responsibility for Sugar Condition 

The warehouse operator must take all necessary steps to maintain the quality and condition 

of all stored sugar as would a reasonably prudent owner. If the warehouse operator has taken 

all necessary steps to maintain the sugar and deterioration cannot be prevented, the 

warehouse operator must immediately notify KCCO, WLED, SCB by telephone at 

816-926-6446, and then, in writing, according to subparagraph 2 E. 

See CCC-28, Part 3 (Exhibit 5) for a complete explanation of the warehouse operator’s 

responsibilities. 

2-25-14 1-WO Sugar Amend. 1 Page 3-2 
 

Par. 32 

32 Storing CCC-Interest Sugar (Continued) 

D Additional Contract Terms 

Any services requested by KCCO that go beyond SSA terms, such as extended sugar storage, 

will generally be voluntary on the part of the warehouse operator. The terms of these 

services must be covered by supplements to SSA or by separate contracts. 

33 Transportation Information 

A General Transportation Instructions 

The warehouse must observe the carrier’s lawful tariffs and loading and unloading 

requirements as provided in SSA Part 3 L. CCC will negotiate with rail carriers, truckers, 

barge lines, and/or warehouse operators concerning the movement of sugar. 

Prepayment of freight will be allowed only when authorized, in writing, by CCC. 

B Warehouse Operator Responsibilities 

The warehouse operator must indemnify CCC on outbound shipments against: 

 excess freight charges that result from any deviation from loading order instructions on 

CCC-156 or written instructions issued by CCC to the warehouse operator 

 minimum weight penalties, detention, and demurrage charges 

Exception: Charges that are incurred because of circumstances beyond the warehouse 

operator’s control. 

 all switching charges, inbound or outbound, that can be recovered and/or are absorbed by 

the carrier. 

34-50 (Reserved) 

2-25-14 1-WO Sugar Amend. 1 Page 3-3 
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Par. 51 

Part 4 CCC-Interest Sugar Loadouts and Settlements 

51 Loading Orders and Shipping Instructions 

A Loadout Requirement 

CCC-interest sugar must not be shipped before receiving CCC-156 or written instructions 

from CCC. 

B CCC-156’s 

CCC-156’s specify the following: 

 type of loading order, commodity, quantity, and quality of sugar to be shipped 

 instructions to load and ship, if applicable 

 warehouse receipts, KC-277’s (subparagraph 15 C), or KC-277-A’s (subparagraph 15 D) 

surrendered. 

Storage start date of the balance warehouse receipt will be the day following the stop storage 

date indicated on CCC-156 or the day following the date through which storage has been 

paid. 

Note: Send the balance warehouse receipt to OBF to the address provided in 

subparagraph 2 E. 

C Contract Wire Releases 

When a warehouse operator receives a Contract Wire Release, generally sent by FAX, the 

warehouse operator must: 

 deliver the sugar according to instructions issued by KCCO 

 follow the applicable program requirements for the settlement of quality and quantity 

Note: The settlement of third party sales will be between the warehouse operator and the 

buyer, unless otherwise specified by KCCO. 

 be paid storage through the date title is transferred, or through the date specified by the 

Contract Wire Release or other documents. 

2-25-14 1-WO Sugar Amend. 1 Page 4-1 
 

 

Par. 51 

51 Loading Orders and Shipping Instructions (Continued) 

D Loadout Requirements 

Load out the sugar designated to be shipped as indicated on the loading order according to 

SSA Part 3 F. The warehouse operator is responsible to loadout sugar as directed by CCC. 

If for any reason sugar shipments cannot be made as instructed, promptly notify KCCO as 

soon as it is apparent that the shipping schedule cannot be met. 

If delays were caused by reasons beyond the control and without fault of the warehouse 

operator, the warehouse operator shall promptly furnish evidence to KCCO, of the causes 

that resulted in late shipment. 

Failure of the warehouse operator to ship according to instructions will cause serious and 

substantial damage to CCC because of its urgent need for prompt delivery. 

If a warehouse operator does not agree with the loading order requirements and/or 

provisions, the warehouse operator must immediately notify KCCO. 

The warehouse operator must ship the sugar from the same warehouse location that issued 

the warehouse receipts that are surrendered on a loading order. Warehouse operators that 

ship from merged codes must refer to special instructions issued on a loading order. 

The warehouse operator may be required to pay liquidated damages, at the rate of $0.10 per 

100 pound per day, to CCC, in addition to loss of daily storage payment. 

The weighted average quality factors of the warehouse receipts listed on the loading order are 

shown on CCC-156. 

E Requests Storage Stop Date Extension 

Warehouse operators needing an extension must submit storage stop date extension requests 

to KCCO. 

All requests must be submitted, in writing to the address provided in subparagraph 2 E, 

within 30 calendar days after completion of shipment. 

A request for extension of storage will not be approved unless failure to comply with the 

shipment completion date is due solely to circumstances beyond the warehouse operator’s 

control. 

Rail and truck shipment requests must be supported by completing and submitting 

documentation. 

Note: The warehouse operator must furnish the prescribed pertinent data and a copy of the 

requests to the carrier for cars. 

2-25-14 1-WO Sugar Amend. 1 Page 4-2 
 

Par. 51 

51 Loading Orders and Shipping Instructions (Continued) 

E Requests Storage Stop Date Extension (Continued) 

For rail and truck shipment requests, the forms used to report the required information will be 

furnished by KCCO after receiving a request for an extension of the storage stop date. 

Each storage stop date extension request is reviewed on its individual merit. The warehouse 

operator’s performance record is examined by KCCO, WLED, SCB. CCC normally expects 

to use at least 50 percent of the total warehouse’s capability to handle/loadout CCC sugar. 

This criterion is a major consideration when reviewing the warehouse operator’s 

performance to determine if an extension of storage charges will be approved. On a 

case-by-case basis, KCCO will also consider valid documentation that states either of the 

following: 

 storing warehouse entered into bona fide sales or handling agreements with a stated 

delivery period before issuance of loading orders to the warehouse operator by CCC 

 condition or quality problems facing the warehouse operator that require the prompt 

shipment of sugar owned or controlled by the warehouse operator before the issuance of 

CCC loading orders. 

If the requested time extension, or any part; thereof, is approved, the storage stop date will be 

extended. 

F Defective Rail Cars 

A shipper should not load a defective car. If a railroad offers a defective car to a shipper for 

loading, the shipper should reject that car back to the railroad. 

G Rejected Sugar That Does Not Meet CCC Loading Order Requirements 

CCC may reject sugar that does not meet the requirements of the loading order. The 

warehouse operator may replace the rejected sugar, if agreed to by CCC. If the rejected 

sugar is not replaced, CCC will sell the rejected sugar for the account of CCC. The net 

proceeds for any sale of rejected sugar will be immediately tendered to CCC, by the 

purchaser, together with an accounting of the sale. 

KCCO will contact the warehouse operator to advise that a shipment has been rejected and 

will issue documentation confirming the rejection indicating if the shipment will be replaced 

and include instructions about settlement. 

52-60 (Reserved) 

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Par. 61 

Part 5 Invoicing and Paying Charges 

61 CCC Policy on Making Payments and Interest on Late Payments 

A Making Payments 

Storage, handling, and other charges paid to warehouse operators under SSA are generally 

paid on the basis of rates in effect on the date service is performed. 

B Interest Applicability 

To meet the provisions of the Prompt Payment Act of 1988, late payment interest applies to 

the following 3 types of payments: 

 periodic payments based on quarterly invoices that cover storage and handling charges on 

CCC-interest commodities 

 storage and handling charges on price support loan commodities forfeited to CCC that the 

producer did not pay 

 payments due warehouse operators for other services provided for which warehouse 

operators invoice CCC. 

2-25-14 1-WO Sugar Amend. 1 Page 5-1 
 

Par. 62 

62 Periodic Payments on Quarterly Invoices 

A Invoice Due Dates 

Quarterly invoices are prepared and represent both of the following: 

 storage charges for CCC-interest warehouse-stored stocks already recorded into CCC’s 

inventory 

 storage and handling for sugar forfeited to CCC during the quarterly period. 

CCC will prepare the invoice within 15 calendar days following the quarterly invoice due 

date. Charges for the account of CCC for sugar forfeited will begin on the date all 

documentation is received in the FSA County Office. 

B Interest 

If the invoice and ACH payment (paragraph 63) are not issued by CCC within 30 calendar 

days following the quarterly invoice due date, CCC will pay interest on the unpaid amount. 

Interest will accrue beginning on the first day following the invoice due date. 

C Corrected Invoices 

If an invoice and an uncashed check are returned by a warehouse operator to CCC for 

correction, CCC has 30 calendar days after the date the erroneous invoice is received by CCC 

to correct the discrepancy and make payment. If payment is not made within 30 calendar 

days, interest will accrue beginning on the 31st calendar day until payment is made. 

D Interest Payment Rate 

Interest will be paid at the rate used for payment of interest penalties for the applicable period 

under the Prompt Payment Act. 

2-25-14 1-WO Sugar Amend. 1 Page 5-2 
 

Par. 62 

62 Periodic Payments on Quarterly Invoices (Continued) 

E Paying Invoices Submitted by the Warehouse Operator 

Warehouse operators provide services at the direction or with the concurrence of CCC. The 

types of charges for which warehouse operators invoice CCC include, but are not limited to 

the following: 

 freight bills 

 invoices returned with corrections 

 periodic storage 

 processing charges 

 other special services. 

If payment is not made within 30 calendar days following the receipt of a properly completed 

invoice from the warehouse operator, then interest will be paid from the 31st calendar day 

following receipt of the invoice through the date payment is made, as follows: 

 interest due will be computed automatically by CCC 

Note: There is no need for warehouse operators to invoice CCC for interest they believe 

to be due under these circumstances. 

 warehouse operators who believe there is still a discrepancy in the amounts due them 

after receiving interest payments from CCC must write to CCC, through OBF to the 

address provided in subparagraph 2 E, and include all applicable documentation. 

2-25-14 1-WO Sugar Amend. 1 Page 5-3 
 

Par. 63 

63 ACH Payment Process 

A DCIA Requirement 

DCIA requires Federal Agencies to convert from checks to electronic funds transfers for 

payments. FSA uses ACH payment system to make electronic funds transfer payments 

through the Kansas City Federal Reserve Bank to warehouse operators. The ACH payment 

process allows CCC to deposit funds directly into a warehouse operator’s checking account 

at the designated financial institution. 

B Warehouse Operator Responsibilities 

Warehouse operators receiving payments through the ACH payment process must follow all 

rules and regulations about certifying charges represented by an invoice. If the invoice and 

the ACH payment amounts are correct, the warehouse operator must sign and return the 

certified invoice to CCC documenting proper payment was due. 

64 SF-3881’s 

A Designating Financial Institution 

Warehouse operators must designate a financial institution or authorized payment agent 

through which a Federal payment may be made by providing FSA with a completed 

SF-3881. The direct deposit will continue to be received by the selected financial institution 

until a new SF-3881 is received (subparagraph C). 

B Warehouse Operator Responsibilities 

Prompt payment interest is not due if the payment was directed to the elected financial 

institution routing number and account number specified on SF-3881 and refused by the 

financial institution. Warehouse operators are responsible for notifying the Payment 

Management Office by either mail to PO Box 419205, Stop 8588, Kansas City, Missouri 

64141-6205, or telephone at 816-926-6772, about the following: 

 frozen accounts 

 closed accounts 

 change of account number 

 change of financial institution routing number 

 cancellation notice from the financial institution. 

2-25-14 1-WO Sugar Amend. 1 Page 5-4 
 

Par. 64 

64 SF-3881’s (Continued) 

C Example of SF-3881 

The following is an example of SF-3881. 

2-25-14 1-WO Sugar Amend. 1 Page 5-5 
 

Par. 64 

64 SF-3881’s (Continued) 

C Example of SF-3881 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 5-6 
 

Exhibit 1 

Reports, Forms, Abbreviations, and Redelegations of Authority 

Reports 

None 

Forms 

This table lists all forms referenced in this handbook. 

Number Title 

Display 

Reference Reference 

CCC-25-1 Schedule of Warehouses Covered by Storage Agreement 

No. A _____ -3-CCC-______ 

Ex. 7 3, 13 

CCC-28 Sugar Storage Agreement Ex. 5 1 

CCC-156 Loading Order, Trust Order and Invoice for Charge 31, 33, 51 

KC-227 Raw Sugar Certification Report 15 

KC-227-A Refined Sugar Certification Report 15 

SF-3881 ACH Vendor/Miscellaneous Payment Enrollment Form 64 

Abbreviations Used in This Handbook 

The following abbreviations are used in this handbook. 

Approved 

Abbreviation Term Reference 

ACH Automated Clearing House 62, 63 

CCC Commodity Credit Corporation Text 

DACO Deputy Administrator for Commodity Operations 1, 2 

DCIA The Debt Collection Improvement Act 63 

FSA Farm Service Agency 2, 14, 31, 62, 63 64 

ICPO Internal Control and Planning Office 2 

KCCO Kansas City Commodity Office Text 

OBF Office of Budget and Finance 2, 31, 51, 62 

PMO Payment Management Office 2 

SCB Storage Contract Branch 2, 3, 31, 32, 51 

SSA Sugar Storage Agreement Text 

USDA United States Department of Agriculture 1, 2 

WLED Warehouse License and Examination Division 2, 3, 31, 32, 51 

Redelegations of Authority 

None. 

2-25-14 1-WO Sugar Amend. 1 Page 1 
. 
 

Exhibit 2 

Definitions of Terms Used in This Handbook 

Sugar Storage Agreement (SSA) 

SSA means an agreement (CCC-28) executed by CCC contracting officer and the warehouse 

entity when a warehouse is approved. 

2-25-14 1-WO Sugar Amend. 1 Page 1 
. 
 

Exhibit 5 

(Text) 

Example of CCC-28 

The following is an example of CCC-28. 

2-25-14 1-WO Sugar Amend. 1 Page 1 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 2 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 3 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 4 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 5 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 6 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 7 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 8 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 9 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 10 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 11 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 12 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 13 
 

Exhibit 5 

(Text) 

Example of CCC-28 (Continued) 

2-25-14 1-WO Sugar Amend. 1 Page 14 
 

Exhibit 7 

(Par. 3, 13) 

Example of CCC-25-1 

The following is an example of CCC-25-1. 

2-25-14 1-WO Sugar Amend. 1 Page 1 
.