RALINKCORP

Ralinkcorp is a full service business consortium. In addition to financial and management consulting services, Ralinkcorp is also engaged in other line of business such as investment project financing, U.S trade promotion abroad and import/export trading. We are a United States Department of Agriculture (USDA) eligible exporter authorized to participate in the Commodity Credit Corporation (CCC) Export Credit Guarantee General Sales Manager (GSM) 102 programs.

Ralinkcorp serves as an information vehicle, by providing the international community with the basic information on various programs with the Federal Government of the United States as well as other private organizations as they relate to imports, exports and projects financing. Being aware that developing countries are the fastest growing markets around the world, Ralinkcorp's foremost interest has been to focus on these emerging markets by providing the needed assistance in respond to their social, economic and development needs. By accomplishing these objectives, we will have improved the quality of life for our customers and increase customer satisfaction.

As a United States Department of Agriculture (USDA) eligible Exporter to participate in the Commodity Credit Corporation (CCC) General Sales Manager (GSM) 102 programs, Ralinkcorp is committed to assisting needed importers take advantage of these programs.

The programs are designed to provide financing guaranteed to facilitate US exports to countries where credit guarantee is necessary to maintain or increase US sales. The programs encourage exports to buyers in countries where credit is necessary to maintain or increase US sales, but where financing may not be available without CCC guarantees. Depending upon the buyer's financing and budget plan, the GSM 102 facilitates deferred payment for one to three years.
Some of the products that we export under USDA programs include, but not limited to: rice, wheat, sugar, flour, poultry, beef products, etc.

If anyone is interested in participating in the United States Department of Agriculture (USDA) Commodity Credit Corporation( CCC) GSM-102 programs, please follow the procedures below. We advise that you obtain a preliminary commitment from your bank( if it is a USDA approved bank) or any USDA approved bank to handle the planned transaction .

1. Your company must submit to Ralinkcorp a letter of intent (LOI) for the purchase of the desired commodity, quantity and your bank information. Ralinkcorp will prepare a contract for the sale of that commodity and send it to you for your acceptance and signature.

2. Your company will pay an up-front processing fee to USDA through Ralinkcorp on the contractual value. This fee is specified on the Proforma Invoice and it is non-refundable.

3. When the signed contract is received from you, we will forward it to the United States Department of Agriculture (USDA) Commodity Credit Corporation along with the processing fee you have paid for documentation processing.

4. USDA will process your request for deferred payment and send us your GSM-102 approval letter. We will then forward the letter to you. At this time, your company needs to issue a non-confirmed, irrevocable, transferable Letter of Credit in U.S. Dollar through one of the USDA approved Banks in your Country or region. Since confirmation is not necessary, conditions for issuance of the L/C should be negotiated at a low rate to your company from the issuing bank.

5. The U.S. Government, through USDA, issues 98% Credit Guarantee and your bank issues a 2% Cash/Credit Guarantee establishing the 100% deferred credit. In order word, if the loan is defaulted, USDA will pay the confirming bank only 98% of the contract value and your bank will be responsible for the remaining 2%. This 2% arrangement will be handled during the bank to bank agreement for the repayment of the loan.

6. We will then present your issued L/C to our Bank for confirmation and credit line to pay the U.S. supplier upon loading. Our Bank will sign a bank to bank agreement with your bank for the repayment of the L/C value. Under this agreement your bank does not immediately pay back the amount of the contract value, but pays back the interest per the arrangement between your bank and the confirming bank. The principal is due at the end of the term of the deferment period, which is extendable based on your need.

7. Your company sells the goods in your country and pays back the funds based on the terms your company has negotiated with the issuing bank.

Resources Accesslink Corp provides the following services to the international community:

Export rice, wheat, flour, poultry and other agricultural commodities under the USDA deferred payment-financing programs (GSM-102).
Export rice, sugar, wheat, flour, Urea, fertilizer, cement, and other agricultural as well as non-agricultural products from Europe and Asia to any African Country.
Export capital projects machinery from the U.S.
Provide information on the various programs with the Federal Government as well as other private organizations as they relate to export and import financing
Help emerging markets to find buyers for their products in the U.S.
Secure financing for Capital Projects and investment
Private Sector business process re-engineering and improvement
Public Sector business process re-engineering and improvement, and privatization benefit studies in developing countries.
Connect U.S. investors to other countries for possible investment
Promotion of US investors and products abroad
Pursue overseas business opportunities
Utilize our expertise in specialized areas to establish relationships in emerging markets ·
Assist in creating jobs in the US while promoting economic growth in developing countries Business Joint Venture
Investment in Capital Projects Building and Community
Housing Development Telecommunication Systems Development and Information Technology

Resources Accesslink Corp (Ralinkcorp) works with multilateral development banks in the United States and the United States Import-Export Bank (EXIM Bank) as well as other financial institutions overseas to secure financing for infrastructure and industrial projects that creates export opportunities for American Companies in sectors such as agriculture, energy and power, healthcare, manufacturing, mining and mineral development, telecommunications and transportation.

If you have a viable project and looking for financing sources for it, we can help you hassle free. For more details please call or email us.

U.S. Export Credit Guarantee Programs: What Every Importer Should Know About the GSM-102 Programs.

We are attempting to provide answers to commonly asked questions about how to participate in the GSM-102 export credit guarantee programs. We hope this Q&A (Question & answer) section will provide you with everything you need to know about the programs. However, we are always available for further clarifications.

In many countries, U.S. Department of Agriculture (USDA) export credit guarantee programs can help make commercial financing available for imports of U.S. food and agricultural products on deferred payment terms. The GSM-102 programs guarantee payment from approved foreign banks, normally to financial institutions in the United States that extend credit to them to finance imports of U.S. agricultural commodities. The reduction of risk to financial institutions in the United States may be reflected in lower interest rates and lower financing fees than would be the case without a USDA guarantee, or may make possible financing that would otherwise be unavailable.

Q. What are these programs?

A. USDA operates two export credit guarantee programs that guarantee payments from foreign banks. The GSM-102 Export Credit Guarantee Program provides coverage for credit periods not to exceed 3 years. Sales under these programs are commercially financed; they are not food aid or subsidy programs.

Under these programs, USDA's Commodity Credit Corporation (CCC) underwrites credit extended by eligible financial institutions in the United States to approved foreign banks that issue dollar-denominated irrevocable letters of credit in favor of U.S. exporters as a means of payment for imported U.S. agricultural commodities. These letters of credit are opened on the instructions of the importer. Importers negotiate their own credit terms, if any, from their local banks to permit them to make deferred payments for the imported commodities and products. If the importer's bank fails to make payment for any reason, the financial institution in the United States may file a claim with the CCC for amounts due and covered by the guarantee. The CCC will pay the claim and seek to collect the full overdue amount from the foreign bank.

Q. What products are covered?

A. USDA will consider announcing, for a specific country or region, the availability of guarantees for any U.S. agricultural commodity, if the market for U.S. exports will be expanded or maintained as a result. In general, agricultural commodities must be food, feed, fiber, or products thereof. Forest products, such as lumber and pulp, and also fish, which the U.S. Congress has defined as an agricultural commodity for the purposes of these programs, can be covered. Coverage has encompassed such diverse products as cotton, vegetable oil, breeding chicks, and telephone poles.

Q. Are any products excluded from coverage?

A. All products must meet the U.S. origin requirements of applicable law as stated in GSM-102 regulations, notices, and program announcements. Manufactured agricultural inputs, such as pesticides, fertilizers, and equipment, are not eligible.

Q. Are there any other program restrictions?

A. All guarantee applications are subject to review by the CCC to determine that coverage is based on a price within a prevailing market range.

Normally, eligible transactions are restricted to those where a bank in the same country as the importer issues the letter of credit. However, USDA may announce guarantee allocations for sales to a number of countries in a specific region where not all of those countries have banks approved for participation by the CCC. Exports to such countries may be covered if the importer is able to arrange letters of credit through approved banks in other countries in the region. Participants should read program announcements carefully to ensure they are aware of specific provisions or restrictions for specific countries.

Q. How does an importer become eligible to participate in these programs?

A. The CCC does not decide on importer eligibility. Any buyer located in a GSM program country may enter into a sales contract with an eligible U.S. exporter (such as Ralinkcorp) and work with a CCC-approved foreign bank to arrange for the letter of credit required for CCC coverage. Importers in some countries may be constrained by their own government's rules and regulations concerning the importation of certain products or the ability to set up the letter of credit as required by the CCC.

Q. What is covered by a guarantee?

A. The CCC guarantee typically covers 98 percent of the port value of the export item, determined at the U.S. point of export, plus a portion of interest on the financing. Guarantee coverage is usually limited to credit extended for the value of the commodity only, even though the sale may have been made on a cost and freight or cost, insurance, and freight basis. Under unusual circumstances, however, the CCC may offer coverage on credit extended for freight costs.

Q. How does an importer find out which banks can participate?

A. CCC announcements of new coverage may include the names of approved banks. This is typically the case when there are only one or two. If numerous banks are approved, announcements usually do not name specific banks, but simply refer to "any bank in (the country or region) approved by the CCC." Banks that have been approved are notified of the maximum outstanding amount the CCC is willing to guarantee for that bank. We have provided a list of approved banks in some of the African and Latin American Countries on our website. You may also contact the U.S. agricultural counselor or attache in the importing country, or the commercial or economic counselor at U.S. Embassies in countries where USDA does not have a resident agricultural counselor or attache.

Q. How is financing arranged?

A. An eligible bank for the importer's country or region establishes a credit line with an eligible financial institution in the United States, the terms of which can be made consistent with terms of coverage announced by the CCC for the importing country. The importer negotiates an agreement with the eligible bank to issue a letter of credit and finance the import transaction on credit terms to be guaranteed by the CCC. The U.S. exporter, informed of these arrangements, can then apply for the guarantee.

Importers should keep in mind that the CCC guarantee covers only the financing arrangements extended to the foreign bank. Extension of credit by the financial institution in the United States to the foreign bank does not mean that the importer will receive credit benefits from the foreign bank. Credit (perhaps in local currency) extended to the importer by the foreign bank is strictly a matter for negotiation between the importer and that bank.

Q. What paperwork is required?

A. Most of the technical details concerning the guarantee will be handled by Ralinkcorp, the financial institution in the United States, and the foreign bank. For the importer, the transaction is similar to other commercial purchases involving letters of credit.

For Ralinkcorp to arrange for a transaction to be backed by a CCC guarantee, a CCC-approved foreign bank chosen by the importer must issue an irrevocable letter of credit in favor of Ralinkcorpcovering payment for the commodity in U.S. dollars. The letter of credit, the related sales contract, and the deferred payment (credit) arrangements between the issuing bank and the financial institution in the United States will specify documentary requirements agreed to by each of the parties. Fulfilling certain CCC documentary requirements is the responsibility of Ralinkcorp, who will advise which documents, if any, may be necessary for the importer to provide. If the guarantee is assigned to a financial institution in the United States, that institution may have documentary requirements as well, but these should not affect the importer.

Q. If private financial institutions in the United States are financing shipments under letters of credit, why is a CCC guarantee necessary?

A. If financial institutions in the United States are financing exports under letters of credit, then a guarantee is not necessary. However, a CCC guarantee can encourage extension of credit in cases where financial institutions might otherwise be unwilling to finance exports on credit terms. The guarantee may also facilitate credit to foreign banks in larger amounts and on more favorable commercial terms than would otherwise be available.

Q. What are the costs of using these programs?

A. Costs to the importer can vary depending on the country in which the transaction is conducted and the particular arrangements negotiated between the parties. Normally, at a minimum, the importer can expect to pay fees for opening the letter of credit and other local bank charges related to the transaction, as well as principal plus interest, and other costs related to any credit extended by the local bank. A processing fee is paid to the CCC, in advance, to obtain each guarantee. For GSM-102 guarantees, fee rates are less than 1 percent of the value of the sale. Exact fees are based on announced CCC fee rate schedules.

Q. How is the interest rate determined?

A. The financial institutions in the United States and the approved banks opening the letters of credit negotiate their own terms. Usually, the interest rate is linked to the U.S. prime rate or the London Interbank Offered Rate (LIBOR) on a floating (periodically adjusted) basis. Interest rates on any credit extended to the importer by the local bank are a matter for the importer's negotiation with that bank.

Q. How is the interest paid?

A. Interest and principal are usually paid by routine bank transfers to the financial institution in the United States that finances the transaction. Payments are made at rates and intervals defined in the letter of credit or the related financing agreement between the financial institution in the United States and the issuing bank. The CCC requires that total accrued interest be paid no later than each principal due date, with principal payable at least annually. Agreed terms may call for interest payments at more frequent intervals than principal.

Q. Can the importer make early payments?

A. Possibly. This will depend on the importer's credit arrangements with the local bank; these arrangements are not governed by CCC rules.

Q. If the importer repays early, can some of the charges be eliminated?

A. That depends on whatever credit arrangements the importer may have with the local bank. In any event, early repayment would probably not eliminate a number of costs, such as fees already paid for the letter of credit, documentation, and foreign exchange conversion. Also, the CCC processing fee for guarantee coverage would have been calculated and prepaid based on the original credit period, and is non-refundable.

Q. Does the importer need to report the arrival of the product?

A. Possibly. Ralinkcorp will need documentation showing that the product entered the country or region of destination. Ralinkcorp is responsible for obtaining this documentation. Importing country rules governing imports may determine whether the information comes from the importer, the importer's bank, the importing country's government, or some other source. This process is required by USDA under the GSM-102 programs.

Q. How can an importer find out if credit guarantees are available or request coverage for a commodity not already included in these programs?

A. Ralinkcorp will provide this information to interested importers. You may also Contact the U.S. agricultural counselor or attache at the U.S. Embassy. In countries where USDA does not have a resident agricultural counselor or attache, contact the commercial or economic counselor.

Program requests should specify importing country, commodity, quantity, estimated value, shipping period, credit period desired, and, if available, the name of the foreign bank willing to issue the letter of credit.

Requests should be submitted as soon as possible, keeping in mind that these programs operate on a U.S. fiscal year (October 1 - September 30) basis. Sales against coverage for a given fiscal year usually must be registered by exporters no later than September 30, although the contractual arrangements between buyer and seller may permit export as late as November 30. The CCC's approval of a guarantee allocation is based on review of the economic and financial situation in the importer's country or region, the market potential for U.S. agricultural products, the existence of creditworthy foreign banks approved by the CCC to open letters of credit, and the availability of coverage within overall program levels.