56 



COMMERCIAL FISHERIES REVIEW 



Vol. 13, No. 7 



(e) If a rated order or a rating ap- 

 plicable to ar. order is cancelled when 

 the supplier has material in production 

 to fill it. he need not immediately stop 

 processing in order to put other rated 

 orders into production. He may con- 

 tinue to process the material which he 

 had put into production for the can- 

 celled order to a stage of completion 

 which will avoid a substantial loss of 

 total production, but he may not incor- 

 porate any material which he needs to 

 All any rated orders on hand. He may 

 not. however, delay putting other rated 

 orders into production for more than 15 

 days. 



Sec 14. Changes in customers' orders. 

 (a) The general rule is that any change 

 In a customer's rated order constitutes 

 a cancellation of the order and must be 

 considered as a new order received on 

 the date of the change, if the change will 

 require the manufacturer to interfere 

 with his production. For example: 



(1) A change in shipping destination 

 does not constitute the placing of a new 

 order. 



(2) An Increase in the total amount 

 ordered is a new order to the extent of 

 the increase unless it can be filled with 

 only a negligible interference with the 

 filling of later rated orders. 



(3) A change in the date of the de- 

 livery, whether advanced or deferred, 

 when made by the customer, is a new 

 rated order i.' it interferes with produc- 

 tion or delays delivery on another rated 

 order. 



(4) A reduction In the total amount 

 ordered will presumably not require a 

 change in the manufacturer's schedule 

 and will not constitute a new rated 

 order. If the quantity is reduced below 

 a minimum production quantity, the 

 manufacturer may insist on the delivery 

 of not less than a minimum production 

 quantity. If the customer is not willing 

 to order that amount, the manufacturer 

 may reject the order. The manufacturer 

 may not discriminate between customers 

 in requiring delivery of minimum pro- 

 duction amounts. 



(5) When the customer directs the 

 manufacturer to hold or suspend pro- 

 duction without specifying a new de- 

 livery date, the rated order must be con- 

 sidered cancelled. If requested to do so 

 within 10 days after receiving such an 

 instruction, the manufacturer must re- 

 instate the order as nearly as possible to 

 its former place in his proposed schedule 

 of delivery as long as the reinstatement 

 does not cause loss of production or de- 

 lay in the scheduled deliveries bf other 

 rated orders. Any request for reinstate- 

 ment made after 10 days shall be 

 treated as the placing of a new rated 

 order. 



(6) Where minor viariations in size, 

 design, capacity, etc., are requested by 

 the customer and can be arranged by the 

 manufacturer without interfering with 

 his production, such changes do not 

 constitute a new rated order. 



(b> Where a change in an order con- 

 stitutes a new rated order, the condi- 

 tions existing at the time the change is 



received govern the acceptance of the 

 rated order and its sequence in delivery 

 under the rules of this regulation. 



Sec 15. Delivery or performance 

 dates, (a) Every rated order must 

 specify delivery or performance on a par- 

 ticular date or dates or during a particu- 

 lar month, which, in no case, may be ear- 

 lier than required by the person placing 

 the order. Any order which fails to com- 

 ply with this requirement shall not be 

 treated as a rated order. The words 

 "immediately" or "as soon as possible" 

 or other words to that effect do not meet 

 the requirements of this paragraph. 



(b) The required delivery or perform- 

 ance date, for purposes of determining 

 the sequence of deliveries or perform- 

 ance pursuant to section 13 of this 

 regulation, shall be the date on which 

 delivery or performance is actually 

 required. The person with whom the 

 rated order is placed may assume 

 that the required delivery or perform- 

 ance date is the date specified in 

 the order or contract unless he knows 

 either (1) that the date so specified was 

 earlier than required at the time the 

 order was placed, or (2) that delivery or 

 performance by the date originally speci- 

 fied is no longer required by reason of 

 any change of circumstances. A delay 

 in the scheduled receipt of any other 

 material which the person placing the 

 order requires prior to or concurrently 

 with the material ordered, shall be 

 deemed a change of circumstances. 



(c) If, after accepting a rated order 

 which specifies the time of delivery, the 

 person with whom it is placed finds that 

 he cannot fill it approximately on time, 

 he must promptly notify the customer, 

 telling him when he expects to be able 

 to fill the order. 



Sec. 16. Mandatory orders and direc- 

 tives. Every person shall comply with 

 each mandatory order and directive is- 

 sued to him by the NPA. Mandatory 

 orders and directives issued by the NPA 

 take precedence ever rated orders pre- 

 viously or subsequently received, iinless 

 a contrary instruction appears in the 

 mandatory order or directive. 



Sec. 17. Use or disposition of material 

 acquired under this order, (a) Any per- 

 son who gets material with a rating or 

 through a specific authorization or a di- 

 rective of NPA must, if possible, use 

 or dispose of it (or of the product into 

 which it has been incorporated) for the 

 purpose for which the assistance was 

 given. Physical segregation is not re- 

 quired as long as the restrictions appli- 

 cable to any specific lot of material or 

 product are observed with respect to an 

 equivalent amount of the same mate- 

 rial or product. 



(b) The restriction In paragraph (a) 

 of this section does not apply when a 

 material, or a product into which it has 

 been incorporated, can no longer be used 

 for the purpose for which the priority 

 assistance was given, for example, when 

 the assistance was given to fill a particu- 

 lar order and the material or product 

 does not meet the customer's specifica- 



tions or the contract order Is cancelled. 

 In such cases the rules on further use 

 or disposition in paragraph (c) of this 

 section must be observed. 



'c) The holder of a material or prod- 

 uct subject to paragraph (b) of this 

 section may sell it as long as he complies 

 with all requirements of other applicable 

 section of this order and of other orders 

 and regulations of NPA, or he may 

 use it himself in any manner or for any 

 purpose as long as he complies with such 

 requirements. 



Sec 18. Delivery for unlawful pur- 

 poses prohibited. No person shall de- 

 liver any material which he knows or 

 has reason to believe will be accepted, 

 redelivered, held, or used in violation of 

 any order or regulation of NPA. 



Sec. 19. Intracompany deliveries. The 

 provisions of this regulation apply not 

 only to deliveries to other persons, in- 

 cluding afBliates, and subsidiaries, but 

 also to deliveries from one branch, divi- 

 sion, or section of a single enterprise to 

 another branch, division, or section of 

 the same or any other enterprise under 

 common ownership or control. 



Sec 20. Inventory restrictions on ma- 

 terials acquired with a rating. The In- 

 ventory restrictions described in all 

 NPA regulations and orders (including 

 CMP Regulation No. 2) apply to all ma- 

 terials subject thereto. 



Sec 21. Scope of regulations and or- 

 ders, (a) All regulations and orders of 

 NPA (including directions, directives, 

 and other instructions) apply to 

 all subsequent transactions even though 

 they are covered by contracts previously 

 entered into. Regulations and orders 

 apply to transactions in the territories or 

 insular possessions of the United States 

 unless the regulation or order specifically 

 states that it is limited to the continen- 

 tal United States or to the 48 States and 

 the District of Columbia However, re- 

 strictions of NPA orders or regulations 

 on the use of material or on the amount 

 of inventory shall not apply when the 

 material is used or the inventory is held 

 directly by the Department of Defense 

 outside the 48 States and the District of 

 Columbia, unless otherwise specifically 

 provided. 



(b) All orders and regulations of 

 NPA which control the sale, transfer, or 

 delivery of any material, product, or 

 equipment, apply to sales made by any 

 person, whether for his own account or 

 for the account of others, and all re- 

 strictions upon accepting delivery apply 

 to acceptance of delivery at any type of 

 sale, including sales made by auctioneers, 

 receivers, and trustees in bankruptcy, and 

 in other cases where the assets of a 

 business are being liquidated. 



Sec. 22. Defense against claims for 

 damages. No person shall be held liable 

 for damages or penalties for any default 

 under any contract or order which shall 

 result directly or indirectly from compli- 

 ance with any regulation or order of 

 NPA (including any direction, directive, 



