[Federal Register Volume 62, Number 136 (Wednesday, July 16, 1997)]
[Rules and Regulations]
[Pages 38026-38027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18694]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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]
BILLING CODE 6116-01-M