Procedures for Reimbursing Offshore Transportation Costs of Processed Foods
This memorandum establishes the policy and procedures to compensate offshore destinations for the marine shipping costs associated with further processed end products. Offshore destinations are defined as those State agencies that are not located in the 48 contiguous United States. The high cost of transportation to offshore destinations has been borne by the Department for raw commodities. We have determined that the title to raw commodities passes to the State agency when they are delivered to a processor to be converted into more usable end products. Therefore, many offshore destinations have not participated in the State processing program because the offshore destination would have to pay excessive transportation costs to get the further processed foods to their offshore location.