Rules and Procedures Applicable to Commodity Transactions Financed by A.I.D.: Source, Origin and Nationality

INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

Agency for International Development

22 CFR Part 201

[A.I.D. Reg. 1]

RIN 0412-AA-33

Rules and Procedures Applicable to Commodity Transactions

Financed by A.I.D.: Source, Origin and Nationality

AGENCY: Agency for International Development, IDCA.

ACTION: Final rule.

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SUMMARY: The U.S. Agency for International Development (USAID) is

amending its Regulation 1 to replace the coverage on source, origin and

nationality of commodities and commodity-related services with

references to the ``Rules on Source, Origin and Nationality For

Commodities and Services'' in part 228 of chapter II of Title 22 of the

Code of Federal Regulations. Also, the acronym ``USAID'' is replacing

``A.I.D.'' throughout the regulation.

EFFECTIVE DATE: August 15, 1997.

FOR FURTHER INFORMATION CONTACT:

Kathleen J. O'Hara, Office of Procurement, Procurement Policy Division

(M/OP/PP), USAID, Room 1600 A, Washington, DC 20523-1435. Telephone

(703) 875-1534, facsimile (703) 875-1243.

SUPPLEMENTARY INFORMATION: USAID published a notice of proposed

[[Page 38027]]

rulemaking on February 5, 1996 (61 FR 4240) which covered rules on

source, origin and nationality of commodities and services.

The final rule was published on October 15, 1996 (61 FR 53615),

effective November 14, 1996, adding part 228 to Title 22 of the Code of

Federal Regulations. The substantive changes made to Regulation 1 in

this notice incorporate the applicable rules of part 228 by reference.

USAID has determined that this rule is not a significant regulatory

action under Executive Order 12866. The rule has been reviewed in

accordance with the requirement of the Regulatory Flexibility Act.

USAID has determined that the rule will not have a significant economic

impact on a substantial number of small entities, and, therefore, a

Regulatory Flexibility Analysis is not required. There are no

information collection requirements in this rule as contemplated by the

Paperwork Reduction Act.

List of Subjects in 22 CFR Part 201

Administrative practice and procedure, Commodity procurement--

foreign relations.

For the reasons set out in the preamble, 22 CFR part 201 is amended

as follows.

1. The authority citation continues to read as follows:

Authority: 22 U.S.C. 2381.

PART 201--[AMENDED]

2. Part 201 is amended by removing ``A.I.D.'' wherever it appears

and adding ``USAID'' in its place; by removing ``A.I.D.-financed''

wherever it appears and adding ``USAID-financed'' in its place; and by

removing ``A.I.D./W'' wherever it appears and adding ``USAID/W'' in its

place.

3. Section 201.11, is amended by revising paragraphs (b), (e) and

(j) to read as follows:

Sec. 201.11 Eligibility of commodities.

* * * * *

(b) Source. The authorized source for procurement shall be a

country or countries authorized in the implementing document by name or

by reference to a USAID geographic code. The source and origin of a

commodity must be an authorized source country. The applicable rules on

source, origin and nationality for commodities and commodity-related

services are in subparts (B), (C), and (F) of part 228 of this chapter.

* * * * *

(e) Marine insurance. In accordance with the provisions of

Sec. 228.23 of this chapter, USAID may require that any USAID-financed

commodity shipped to the cooperating country shall be insured against

marine risks and that such insurance shall be placed in the United

States with a company or companies authorized to do marine insurance

business in a State of the United States.

* * * * *

(j) Purchases from eligible suppliers. Commodities procured with

funds made available under this part 201 shall be purchased from

eligible suppliers. The rules on the nationality of suppliers of

commodities are in section 228.14 of this chapter.

* * * * *

4. Section 201.12 is amended by revising paragraph (d) and adding a

new paragraph (e) as follows:

Sec. 201.12 Eligibility of incidental services.

* * * * *

(d) The supplier of such services, prior to approval of the USAID

Commodity Approval Application, has neither been suspended or debarred

by USAID under part 208 of this chapter, nor has been placed on the

``Lists of Parties Excluded from Federal Procurement or Nonprocurement

Programs,'' published by the U.S. General Services Administration.

(e) The supplier of such services meets the requirements of

Sec. 228.25 of this chapter.

5. Section 201.13 is amended by revising paragraphs (a), (b) and

(c) as follows:

Sec. 201.13 Eligibility of delivery services.

(a) General. Delivery of USAID-financed commodities may be financed

under the implementing document provided the delivery services meet the

requirements of this section and the applicable provisions in part 228,

subpart C of this chapter.

(b) Transportation costs. USAID will not finance transportation

costs:

(1) For shipment beyond the point of entry in the cooperating

country except when intermodal transportation service covering the

carriage of cargo from point of origin to destination is used, and the

point of destination, as stated in the carrier's through bill of

lading, is established in the carrier's tariff; or

(2) On a transportation medium owned, operated or under the control

of any country not included in Geographic Code 935; or

(3) Under any ocean or air charter covering full or part cargo

(whether for a single voyage, consecutive voyages, or a time period)

which has not received prior approval by USAID/W, Office of

Procurement, Transportation Division); or

(4) Which are attributable to brokerage commissions which exceed

the limitations specified in Sec. 201.65(h) or to address commissions,

dead freight, demurrage or detention.

(c) Inspection services. USAID will finance inspection of USAID-

financed commodities when inspection is required by USAID, or in those

cases where inspection is required by the importer and such inspection

is specified in the purchase contract, performed by independent

inspectors and is either customary in export transactions for the

commodity involved or is necessary to determine conformity of the

commodities to the contract. Section 228.24 of this chapter covers the

nationality requirements for suppliers of inspection services.

* * * * *

6. Section 201.14 is amended by adding a sentence at the end of the

paragraph as follows:

Sec. 201.14 Eligibility of bid and performance bonds and guaranties.

* * * Nationality requirements for sureties, insurance companies or

banks who issue bonds or guaranties under A.I.D.-financed transactions

are set forth in Sec. 228.38(b) of this chapter.

Dated: May 12, 1997.

Marcus L. Stevenson,

Procurement Executive.

[FR Doc. 97-18694 Filed 7-15-97; 8:45 am]

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