§789.16. Changes or cancellations of priority ratings and rated orders.
7 C.F.R. § 789.16
The priority rating on a rated order may be changed or canceled by:
An official action of USDA; or
Written notification from the person who placed the rated order.
If an unrated order is amended so as to make it a rated order, or a DO rating is changed to a DX rating, the supplier must give the appropriate preferential treatment to the order as of the date the change is received by the supplier.
An amendment to a rated order that significantly alters a supplier's original production or delivery schedule constitutes a new rated order as of the date of its receipt. The supplier must accept or reject the amended order according to the provisions of § 789.13.
The following amendments do not constitute a new rated order—
A change in shipping destination;
A reduction in the total amount of the order;
An increase in the total amount of the order that has a negligible impact upon deliveries;
A minor variation in size or design; or
A change that is agreed upon between the supplier and the customer.
If a person no longer needs items or services to fill a rated order, any rated orders placed with suppliers for the items or services, or the priority rating on those orders, must be canceled.
When a priority rating is added to an unrated order, or is changed or canceled, all suppliers must be promptly notified in writing.
Notes, amendments, and revision history
Authority
Authority: 50 U.S.C. App. 2061-2170, 2171, and 2172; 42 U.S.C. 5195-5197h.
Source
Source: 80 FR 63898, Oct. 22, 2015, unless otherwise noted.