July 1951 



CO^iMKRCIAL FISHERIES HEVIEW 



53 



FEDERAL 



ACTIONS 



Department of Commerce 



NATIONAL PRODUCTION AUTHORITY 



BASIC RULES OF THE PRIORITIES SYSTM'l AJyiEMDED ; By issuing NPA Reg. 2 as amended 

 on July 17, the National Production Authority has brought up to date the basic rules 

 of the priorities system and liberalized the provisions concerning the use of DO 

 ratings to replace materials taken from inventory. 



Section 3 (which establishes the DO rating) was revised to explain the new iden- 

 tification method ;vhich replaces the present two-digit program identification system. 

 Regulation 2 as amended states that DO ratings with the nevj identification (one let- 

 ter and one digit, or two or more letters) will take precedence over DO ratings with 

 the old two-digit identification during the third quarter, except for 11 ratings 

 listed in Direction 2 to CMP Regulation 3. 



In addition, outstanding small orders pooled under the rating DO-99 for third- 

 quarter delivery automatically will be considered as converted to the new program 

 identification, DO-Z-B. 



NPA said that new program identifications will be supplied manufacturers at the 

 same time the manufacturers receive their authorized controlled materials allotments. 

 For this reason, NPA explained, no list has been issued designating the new symbols 

 or digits which will identify present two-digit DO ratings for existing programs. 



The amendment emphasizes that rated orders for manufactured items may not be 

 extended to obtain materials for improvement, expansion, or construction; for machine 

 tools or other capital equipment; or for maintenance, repair or operating supplies. 



The regulation as amended permits a manufacturer to extend a rating to replace 

 inventory three months after receipt of the order bearing the rating, or one month 

 after using materials from inventory to fill the order. 



Reg. 2 — Basic Rules of the Priorities 

 System 



This amendment to NPA Reg. 2 is 

 found necessary and appropriate to pro- 

 mote the national defense and is issued 

 pursuant to the authority granted by sec- 

 tion 101 of the Defense Production Act 

 of 1950. Consultation with industry 

 representatives, including trade associ- 

 ation representatives, in advance of the 

 issuance of this amendment has been 

 rendered impracticable by the fact that 

 this amendment applies to all trades and 

 industries. 



This amendment affects NPA Reg. 2. 

 as amended Feb. 27. 1951, as follows: It 

 amends paragraph id) of section 2; 

 amends section 3 and adds a new para- 



graph designated (b) ; amends the title 

 of section 4; redesignates paragraphs (a) 

 and (b) of section 4 and inserts a new 

 paragraph (a) ; amends paragraphs (a) 

 and (b) of section 5 and deletes a sen- 

 tence in said paragraph (b) ; amends 

 section 6, and paragraph Ca) of section 

 8; amends paragraphs (a), (c), and (d) 

 of section 9; adds subparagraph (5) to 

 paragraph (c) of section 10; amends 

 paragraph (d) of section 10; amends sec- 

 tions 16 and 20; amends section 27; re- 

 numbers sections 26 and 27 and inserts 

 a new section 27; deletes section 31; and 

 adds List A at the end of the regulation. 

 As amended, NPA Reg. 2 reads as 

 follows: 



What this order does. 



Definitions. 



Rating authorized. 



When ratings may be assigned or ap- 

 plied. 



When ratings may be extended for ma- 

 terial. 



Additional restrictions upon the use of 

 ratings for certain materials. 



Use of ratings for services. 



How to apply or extend a rating. 



Special provisions applicable to exten- 

 sions; grouping of orders. 



Rules for acceptance and rejection of 

 rated orders. 



Report to NPA of Improperly rejected 

 orders. 



Cancellation of ratings. 



Sequence of SlUng rated orders. 



