54 



COMMERCIAL FISHERIES REVIEW 



Vol. 13, No. 7 



Sec. 



14. Changes In customers' orders. 



15. Delivery or performance dates. 



16. Mandatory orders and directives. 



17. Use or disposition of material acquired 



under this order. 



18. Delivery for unlawful purposes prohib- 



ited. 



19. Intracompany deliveries. 



20. Inventory restrictions on materials ac- 



quired with a rating. 



21. Scope of regulations and orders. 



22. Defense against claims for damages. 



23. Records. 



24. Audit and inspection. 



25. Reports. 



26. Applications for adjustment or excep- 



tion. 



27. Communications. 



28. Violations. 



AtTTHOEiTT: Sections 1 to 28 issued under 

 sec. 704, Pub. Law 774, 81st Cong.. Pub. Law 

 69. 82d Cong. Interpret or apply sec. 101, 

 Pub. Law 774, 81st Cong.. Pub. Law 69. 82d 

 Cong.; sec. 101, E. O, 10161, Sept. 9, 1950, 15 

 P. B. 6105 3 CFR, 1950 Supp.; sec. 2, E. O. 

 10200. Jan. 3, 1951, 16 F. B. 61. 



Section 1. What this order does. This 

 order states the basic rules of the priori- 

 ties system to be administered by the 

 National Production Authority. It states 

 what kind of orders are rated orders, 

 how to place them, and the preference 

 status of such orders. These rules apply 

 to all business transactions within the 

 iurisdiction of NPA unless more specific 

 regulations, orders, or directives of NPA 

 state otherwise. 



Sec 2. Definitions^ (a) "Person" 

 means any individual, corporation, 

 partnership, association, or any other 

 organized group of persons, and includes 

 any agency of the United States or any 

 other government. 



(b) "Materials" means any raw, in- 

 process, or manufactured commodity, 

 equipment, component, accessory, part, 

 assembly, or product of any kind. 



(c) "NPA" means the National Pro- 

 duction Authority. 



(d) "Rated order" means any pur- 

 chase order, contract, or other form of 

 procurement for materials or services 

 bearing an authorized rating and the cer- 

 tification required by this regulation or 

 any other apphcable regulation or order 

 of NPA. 



(e) "Assignment" of a rating. A rat- 

 ing is assigned when NPA, or a Govern- 

 ment agency that it has authorized, 

 grants a person the right to use the 

 rating. 



Cf ) "Application" of a rating, A rat- . 

 ing is applied when the person to whom 

 it is assigned uses the rating. 



(g) "Extension" of a rating, A rating 

 is extended when it is used by the per- 

 son to whom it was applied or when it 

 is further used by another person to 

 whom it was extended. 



Sec. 3. Rating authorized, (a) 'Only, 

 a single rating is authorized, to be known 

 as a "DO rating." This rating will be 

 Indicated by the prefix DO and an iden- 

 tification of the program, which must be 

 furnished a supplier by the person who 

 is using the rating. All VO rated orders 



will have equal preferential status as pro- 

 vided in this regulation,, except that (sub- 

 ject to contrary written directives issued 

 by the NPA) a DO rated order with a 

 program identification consisting of a 

 letter and one digit <for example, DO-K 

 5) or consisting of two or more letters 

 (for example, DO-SU) , which calls for 

 delivery during the third calendar quar- 

 ter of 1951, takes priority over a DO 

 rated order with a program identifica- 

 tion consisting of two digits (for example, 

 DO-39). A DO rated order with a pro- 

 gram identification consisting of a let- 

 ter and one digit or consisting of two 

 or more letters constitutes a "rating with 

 an allotment number or symbol" as re- 

 ferred to in CMP regulations. 



(b) A DO rating shall have no effect 

 on deliveries on orders calling for de- 

 livery of controlled materials (as de- 

 fined in CMP Regulation No. 1) after 

 September 30, 1951. 



Sec. 4. When ratings may be assigned 

 or applied, (a) A claimant agency, or 

 other person designated by NPA, may be 

 authorized by NPA to assign or apply a 

 DO rating. 



(b) When a regulation, order, or cer- 

 tificate assigns a DO rating to any per- 

 son either by naming him or by describ- 

 ing the class of persons to which he 

 belongs, that person may apply the DO 

 rating to get deUvery of material or the 

 performance of certain services. 



(c) No person may place rated orders 

 for more material than he is authorized 

 to rate even though he intends to cancel 

 some of the orders or reduce the quan 

 tity of material ordered to the authorized 

 amount before it is all delivered. 



Sec 5. When ratings may be extended 

 for material, (a) When a person has re 

 ceived a rated order for the delivery of 

 material, he may extend the rating to 

 get the material which he will deliver 

 on that order, or which will be physi- 

 cally incorporated in the material which 

 he will deliver, including containers and 

 packaging materials required to make 

 the delivery, and including also chem- 

 icals directly used in the production of 

 the material. If the material is to be 

 processed, this includes the portion of 

 it which would normally be consumed or 

 converted into scrap or byproducts in 

 the course of processing. However, he 

 may not extend such a rating to get ma 

 terial for plant improvement, expansion, 

 or construction, or to get machine tools 

 or other items which he will carry as 

 capital equipment, or to get mainte- 

 nance, repair, or operating applies. 



(b) If a person has made delivery of 

 material or has incorporated it into the 

 material which he has delivered on a 

 rated order, he may extend the rating 

 to Ireplace it in his inventory subject to 

 the inventory provisions of any NPA reg- 

 ulation or order. Any material ordered 

 with a rating as replacement in inven- 

 tory must be substantially the same as 

 the material which the person delivered 

 or incorporated in the material which he 

 delivered, except for minor variations in 

 ize. shape, or design. 



Sec 6. Additional restrictions upon 

 the use of ratings for certain materials. 

 The ratings established by this regula- 

 tion shall have no effect upon deliveries 

 of any of the items listed or referred to 

 in List A at the end of this regulation. 

 No person shall use ratings to obtain any 

 of such items, and no person selling any 

 such items shall require a rating as a 

 condition of sale. Any rating purport- 

 ing to be used to obtain any such items 

 on a preferred basis shall be void. 



Sec. 7. Use of ratings for services. 

 (a) When a person is entitled to use a 

 rating to get processed material, he may 

 furnish the unprocessed material to a 

 processor and use the same rating to get 

 the material processed. 



(b) If NPA specifically authorizes 

 a person to use a rating to get services, 

 he may use it for that purpose. 



(c) Except as provided in paragraphs 

 (a) and (b) of this section, no person 

 may use a rating to get services. 



(d) A person to whom a rating for 

 services, as distinct from the production 

 or delivery of material, has been applied 

 or extended may not extend the rating 

 for any purpose. 



Sec. 8. How to apply or extend a rat- 

 ing, (a) When a person applies or ex- 

 tends a rating, he must put the prefix 

 DO and an identification of the program 

 supplied to him, for example DO-39, 

 or DO-K2 or DO-SU on his purchase 

 order, or on a separate piece of paper 

 attached to the order or clearly identi- 

 fying it, together with the words "Certi- 

 fied under NPA Reg. 2," signed as 

 prescribed in this section This certifi- 

 cate constitutes a representation to the 

 supplier and to NPA that the pur- 

 chaser is authorized under the provi- 

 sions of this regulation or CMP regula- 

 tions to use the rating for the delivery 

 of the materials covered by the purchase 

 order. A certification under any CMP 

 regulations shall be deemed to be a cer- 

 tification under this regulation. 



(b) Certifications on purchase or de- 

 livery orders must be signed by the per- 

 son placing the order or by a responsible 

 individual who is duly authorized to sign 

 for that purpose. The signature must 

 be either by hand or in the form of a 

 rubber stamp or other facsimile repro- 

 duction of a handwritten signature If 

 a facsimile signature is used, the indi- 

 vidual who uses it must be duly author- 

 ized in writing to use it for this purpose 

 by the person whose signature it is, and 

 a written record of the authorization 

 must be kept. 



(c) When a rated order is placed by 

 telegram, the rating identification and 

 certificate must be set out in full in the 

 telegram. It will be sufficient if the file 

 copy of the telegram is signed in the 

 manner required for certification by this 

 order. 



Id) On rated orders requiring ship- 

 ment within 7 days, the substance 

 of the certification may be stated ver- 

 bally or by telephone. However, the fol- 

 lowing rules must be complied with: 



