International Trade

Commodity Credit Corporation's Refunds of Export Guarantee Fees Gao ID: NSIAD-87-185 August 19, 1987

In response to a congressional request, GAO reviewed the Commodity Credit Corporation's (CCC) export credit guarantee fee refund policies and procedures to determine why it failed to refund a firm over $270,000 in failed export sales.

GAO found that: (1) the CCC denial of the firm's refund request was consistent with its policy to retain guarantee fees when exporters did not have a firm sale at the time they obtained coverage; (2) CCC determined that the firm had obtained coverage in anticipation of a later sale, since the firm could not demonstrate that it had a firm export sale; (3) although CCC claimed to have informed the exporter that a firm sale was required and that the fees were nonrefundable, CCC could not ensure that the exporter understood those policies when it applied for coverage; (4) CCC incurred financial risk, since the guarantee never became effective; and (5) it was not clear that CCC provided adequate information to the exporter.

Recommendations

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