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Subpart B-Conditions Governing the ment from a geographic code other than

Eligibility of Procurement Transac- A.I.D. Geographic Code 000, 001, or 002, tions for A.I.D. Financing

and shall include all A.I.D. Geographic

Code 941 countries whenever A.I.D. has 201.10 Purpose.

authorized procurement from A.I.D. GeoThis subpart sets forth requirements

graphic Code 910. for A.I.D. financing applicable to trans

(3) Waiver provision. AID/W may actions for the procurement of commodi

from time to time waive or modify the ties and/or commodity-related services.

requirements of subparagraph (2) (ii) of

this paragraph if in its view such action 201.11 Eligibility of commodities.

is necessary to achieve A.I.D.'s objective To qualify for A.I.D. financing, a com

of conformity with normal industry modity procurement transaction shall practices. satisfy the following requirements:

(4) Identification of principal geo(a) Description and condition of the graphic code numbers. The A.I.D. Geocommodity. The commodity shall con

graphic Code Book sets forth the official form to the description in the imple

description of all geographic codes used menting document. Unless otherwise

by A.I.D. in authorizing or implementing authorized by AID/W in writing, the

documents to designate authorized commodity shall be unused, and may

source countries or areas. The following not have been disposed of as surplus by

are summaries of the principal codes: any governmental agency.

Code 000—The States of the United States, (b) Source-(1) General rule. The the District of Columbia, areas of U.S.source of the commodity shall be a coun- associated sovereignty (including trust try authorized in the implementing doc

territories), and the Ryukyu Islands under ument by name or by reference to an

U.S. control.

Code 940—"The Americas": The United A.I.D. geographic code. In addition, the

States and areas of U.S. associated sovercommodity shall have beeen mined,

eignty (excluding the Ryukyu Islands) and grown, or through manufacturing, proc- all independent countries in the Americas essing, or assembly produced in a source south of the United States, except the cocountry authorized in the implementing operating country itself and Cuba. document.

Code 901—“Limited Free World": Any area (2) Exceptions. A produced commod

or country in the Free World, excluding ity will not be eligible for A.I.D. financ

the cooperating country itself and the fol

lowing developed countries: Australia, ing if

Austria, Belgium, Canada, Denmark, (i) It contains any component from

France, Germany (Fed. Rep.), Italy, Japan, countries other than free world countries

Luxembourg, Monaco, Netherlands, New as described in A.I.D. Geographic Code Zealand, Norway, South Africa, Spain, 935; or

Sweden, Switzerland, and the United (ii) It contains components which

Kingdom. were imported into the country of pro

Code 899—"Free World": Any area or country duction from such free world countries

excluding the cooperating country itself other than authorized source countries;

and the following countries: Albania, Bul

garia, China (Mainland) and other Chinese and

Communist-controlled Areas, Cuba, Czech(a) Such components were acquired oslovakia, Estonia, East Germany, Hungary, by the producer in the form in which North Korea, Latvia, Lithuania, Outer they were imported; and

Mongolia, Poland, Romania, North Viet(6) The total cost of such components

nam, and the Union of Soviet Socialist

Republics (USSR). (delivered at the point of production)

Code 935—“Special Free World”: Any area or amounts to more than 50 percent, or

country in the Free World, including the such other percentage as A.I.D. may pre- cooperating country itself. scribe, of the lowest price (excluding the Code 941–“Selected Free World": Any indecost of ocean transportation and marine pendent country in the Free World, exinsurance) at which the supplier makes cept Algeria, Andorra, Australia, Austria, the commodity available for export sale

Belgium, West Berlin, Canada, Cyprus, (whether or not financed by A.I.D.).

Denmark, Finland, France, West Germany, (c) For the purpose of calculating eli

Greece, Hong Kong, Iceland, Iraq, Ire

land, Israel, Italy, Japan, Kuwait, Libya, gible components under this subdivision,

Liechtenstein, Luxembourg, Malta, Monaco, "authorized source countries” shall in

Netherlands, New Zealand, Norway, Porclude the cooperating country itself tugal, Qatar, Southern Rhodesia, San whenever A.I.D. has authorized procure- Marino, Somali Republic, South Africa,

South Yemen, Spain, Syria, Sweden, Swit-
zerland, United Arab Emirates, United Arab
Republic, United Kingdom, Vatican City,
Yugoslavia, and the cooperating country

itself. Code 910—"Selected Less Developed Coun

tries": India, Morocco, Pakistan, the Philippines, Taiwan, South Korea, Singapore, Tunisia, and Thailand. Code 000 shall also be included within this Code.

(c) Date of shipping documents. The documents required as evidence of shipment under $ 201.52(a) (4) shall show that the date of shipment was within the shipping period, if any, specified in the implementing document.

(d) Medium of transportation, Shipment shall not be effected.

(1) By a transportation medium owned, operated or under the control of any country not included within A.I.D. Geographic Code 935; or

(2) On a vessel which A.I.D. has designated ineligible; or

(3) Under any ocean or air charter which has not received prior approval by AID/W.

(e) Marine insurance. If A.I.D. determines that the government of a cooperating country, by statute, decree, rule, or regulation, discriminates with respect to A.I.D.-financed procurement against any marine insurance company authorized to do business in any State of the United States, then any A.I.D.-financed commodity shipped to the cooperating country shall be insured against marine risks and such insurance shall be placed in the United States with a company or companies authorized to do a marine insurance business in a State of the United States. “Discrimination” within the meaning of this paragraph may be found to exist whenever the effect of governmental action by a cooperating country is to hinder an importer in entering into a c.i.f. contract with a U.S. supplier or in instructing a U.S. supplier to place marine insurance in the United States.

(f) Timely submission of documents. All documents required under $201.52 to be submitted by a supplier in order to receive payment or reimbursement shall be submitted to A.I.D. or to a designated bank, whichever is appropriate, on or before the terminal date specified in the letter of commitment, the request for the opening of a special letter of credit, or other implementing document.

(g) U.S. Treasury Department regulations. Procurement transactions shall comply with the requirements of the Foreign Assets Control Regulation and Cuban Assets Control Regulation of the U.S. Treasury Department.

(h) Commodities shipped out of free port or bonded warehouse. No commodity shipped out of a free port or bonded warehouse is eligible for A.I.D. financing if it was shipped to the free port or bonded warehouse without compliance with the requirements set forth in paragraphs (d) (1) and (2) of this section or if it was shipped from the free port or bonded warehouse without compliance with the requirements set forth in paragraphs (d) (1), (2) and (3) of this section,

(i) Purchase price. The purchase price for the commodity shall satisfy the requireinents of Subpart G.

(j) Purchases from eligible suppliers. Commodities procured with funds made available under this part 201 shall be purchased from eligible suppliers. A supplier shall not be eligible to receive A.I.D. funds if:

(1) The supplier has been suspended or debarred by A.I.D. pursuant to A.I.D. Regulation 8, Part 208 of this chapter; or

(2) The supplier has been placed by A.I.D. on prior review and approval pursuant to $ 201.33 of this part and A.I.D. has not, in fact, given its prior approval to the supplier for the furnishing of spécific goods; or

(3) The Supplier is not an individual, resident in a country included in the authorized source code; a nonresident citizen of a country included in the authorized source code; a corporation or partnership organized under the laws of a country included in the authorized source code; or a controlled foreign corporation (within the meaning of section 957 et seq. of the Internal Revenue Code) as attested by current information on file with the Internal Rvenue Service of the United States (on IRS Form 959, 2952, 3646, or on substitute or successor forms) submitted by shareholders of the corporation.

(k) Determination of commodity eligibility. The commodity shall be approved in writing by A.I.D. for each sale transaction as eligible for A.I.D. financing. Such approval shall be indicated on

the Commodity Approval Application submitted to A.I.D. by the supplier. (A.I.D. Regulation 1, 36 F.R. 7096, Apr. 14, 1971, as amended at 37 F.R. 12792, June 29, 1972; 37 F.R. 18192, Sept. 8, 1972; 37 F.R. 26516, Dec. 13, 1972] 201.12 Eligibility of incidental serv

ices. Incidental services may be financed under the same implementing document which makes funds available for the procurement of equipment if

(a) The supplier does not procure such services with local currency in the cooperating country; and

(b) Such services are specified in the purchase contract relating to the equipment. $201.13 Eligibility of delivery services.

Delivery services will be financed by A.I.D. in the manner provided in this section.

(a) General. Delivery services which relate to A.I.D.-financed commodities may be financed under the implementing document which authorizes the purchase of the commodities or under a separate implementing document.

(b) Conditions and limitations-(1) Transportation costs. Unless otherwise authorized, A.I.D. will not finance transportation costs

(i) For shipment beyond the point of entry in the cooperating country; or

(ii) On any aircraft or ocean vessel under flag registry of the cooperating country or of any country not included within the geographic code authorized by A.I.D. for the transaction, except when such cost is part of the total cost on a through bill of lading paid to a carrier under flag registry of a country included within the geographic code authorized by A.I.D. for the transaction; or

(iii) On any vessel designated by A.I.D. as ineligible to carry A.I.D.financed cargo; or

(iv) On any liner vessel for which the rate applicable to the commodity shipped and applying to both A.I.D.financed and non-A.I.D.-financed cargo has not been filed (a) with the Federal Maritime Commission for any voyages originating in the United States (whether or not such filing is required by the Federal Maritime Commission), or (b) with AID/W (Resources Transportation Division) for voyages originating outside the United States; or

(v) 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 AID/W (Resources Transportation Division); or

(vi) Which are attributable to brokerage commissions which exceed the limitations specified in § 201.65(1)

or to address commissions, dead freight, or demurrage.

(2) Inspection services. A.I.D. will finance inspection of A.I.D.-financed commodities if such inspection is performed by independent inspectors at the request of the importer and is either customary in export transactions for the commodity involved or is necessary to determine conformity of the commodities to the contract.

(3) Insurance. (i) Unless otherwise authorized, A.I.D. will finance premiums for marine insurance including war risk on A.I.D.-financed commodities only if

(a) The insurance is placed within a country included in the authorized geographic code: Provided, That if the authorized geographic source code is any other than A.I.D. Geographic Code, 000, 001, or 002, the cooperating country itself shall be recognized as an eligible source; and

(b) Such insurance is placed either in accordance with the terms of the commodity purchase contract or by, or on the written instructions of, the importer; and

(c) Insurance coverage relates only to the period during which the commodities are in transit to the cooperating country, except that it may include coverage under a so-called "warehouse-to-warehouse" clause; and

(d) The premiums do not exceed the limitations contained in $ 201.68; and

(e) The insurance provides that loss payment proceeds shall be paid in U.S. dollars.

(ii) Within 15 days after payment of an amount exceeding $6,000 in value by a supplier of marine insurance to the assured or to his assignee under any marine insurance policy financed by A.I.D. pursuant to this part, the supplier of marine insurance notifies AID/W, Office of the Controller, of the amount and date of the payment, a description of the commodity, the A.I.D. number, name of carrier, vessel, and voyage number (alternatively, flight or inland carrier run number), date of the bill of lading, the



identity and address of the assured, and arrangements with suppliers as will asthe identity and address of any assignee sure discharge of this responsibility. of the assured to whom payment has Such compliance shall be achieved duractually been made.

ing each U.S. fiscal year (July 1-June (iii) Within the meaning of g 201.11(e) 30) as well as each quarterly period as well as of this subparagraph, insur- thereof, or during such other period or ance is "placed" in a country only if pay- periods as may be specified by A.I.D. in ment of the insurance premium is made agreements or implementing documents. to, and the insurance policy is issued by, (c) Nonavailability of U.S.-flag vesan insurance company office located in sels. Upon application of the borrower/ said country.

grantee, AID/W (Resources Transporta(A.I.D. Regulation 1, 36 F.R. 7096, Apr. 14, tion Division) will determine and advise 1971, as amended at 37 F.R. 12792, June 29, the borrower/grantee whether or not a 1972]

privately owned U.S.-flag commercial 8 201.14 Eligibility of bid bonds and

vessel is available for a specific shipment performance guaranties.

of commodities at fair and reasonable

rates. Such determination and advice of The cost of any bid bond posted by a

nonavailability does not relieve the borsuccessful bidder or of any guaranty of

rower/grantee of the obligation to comperformance posted by a supplier is

ply with the requirements of paragraphs eligible for financing under the imple

(a) and (b) of this section except to the menting docuinent to the extent that the

extent that A.I.D. after reviewing shipprincipal amount of the bond or guar

ments by the borrower/grantee during anty does not exceed the amount cus

the fiscal year, quarterly period thereof, tomary in international trade for the

or other relevant time period, determines type of transaction and commodity in

that such compliance has not been posvolved: Provided, That the bid bond and

sible. Any such determination and adguarantee of performance must be pay

vice will not in any way affect the eligiable in U.S. dollars and must conform to

bility for A.I.D. financing of transportathe requirements of the invitation for bids or the contract, as applicable.

tion costs on foreign fiag vessels.

(d) Privately owned U.S.-flag com8 201.15 U.S.-flag vessel shipping re- mercial vessels. For, purposes of this quirement.

section the term “privately owned U.S.(a) General requirements. At least 50 flag commercial vessels” shall not include percent of the gross tonnage of all com- any vessel which, subsequent to Septemmodities financed with A.I.D. dollar

ber 21, 1961, shall have been either built funds and transported to the cooperat

outside the United States, rebuilt outside ing country on ocean vessels shall be

the United States, or documented under transported on privately owned U.S.-flag commercial vessels. The foregoing re

any foreign registry until such vessel quirement shall apply separately for

shall have been documented under the shipments on dry bulk carriers, dry cargo

laws of the United States for a period of liners, and tankers from each of the fol

3 years. lowing geographical areas: United States, (A.I.D. Reg. 1, 36 F.R. 7096, Apr. 14, 1971, as Europe and Africa, Near East and South

amended at 36 F.R. 21190, Nov. 4, 1971; 37 F.R.

12792, June 29, 1972) Asia, Latin America and Canada, and Far East. Additionally, at least 50 per- Subpart C-Procurement Procecent of the gross freight revenue gener- dures Responsibilities of Imated by all shipments financed with A.I.D. dollar funds and transported to

porters. the cooperating country on dry cargo 8 201.20 Purpose. liners shall be paid to or for the benefit

This subpart prescribes procurement of privately owned U.S.-flag commercial

procedures which shall apply to an imvessels.

porter whenever a commodity procure(b) Responsibility of borrower/grantee.

ment is to be financed by A.I.D. The borrower/grantee shall be responsible for assuring compliance with the

8 201.21

Notice to supplier. requirements of paragraph (a) of this The importer is responsible for provid§ 201.15 and for imposing upon sub- ing the supplier with the following inborrowers, contractors and importers formation (either through the invitation such requirements regarding shipping for bids or otherwise)*:

(a) Notice that the transaction is to no bid received at the address designated be financed by A.I.D. under this part in the invitation after closing hour and 201;

date for submission will be considered (b) The identification number of the for award unless its late arrival at that implementing document;

address is attributable to mishandling (c) All additional information prereq- of the bid documents by the purchaser uisite to A.I.D. financing and contained or any of his agents directly associated in the instructions from the borrower/ with receiving or processing bids. In no grantee to the importer (for example, case will the purchaser consider a bid eligible source of commodity, periods which was not received at the place of during which deliveries must be made, public opening before the award was shipping provisions, and documentation made. requirements); and, where appropriate, (b) Advertising the invitation for bids.

(d) Notice relative to the marking re- The invitation for bids shall be adverquirements of $ 201.31(d) that the im- tised in the manner described in porter is the government of the cooper- $ 201.24(a) (1). ating country or any of its subdivisions (c) Handling bids. Bids received shall or instrumentalities.

be held intact and sealed and shall be (36 F.R. 11921, June 23, 1971)

safeguarded against disclosure of con$201.22 Formal competitive bid proce

tents prior to bid opening. The bids shall

be opened publicly as specified in the bid dures.

invitation, and all properly submitted If the implementing document re- bids shall be considered. Direct submisquires, or if the importer elects procure- sion of a bid by a prospective supplier, ment through formal competitive bid rather than through an agent or other procedures, the following minimum re- representative of the supplier in the coquirements shall apply:

operating country, shall not be cause for (a) Contents of the invitation for bids. rejection. Every invitation for bids and every at- (d) Awards. Every award shall be tachment or amendment to an invitation made to that responsible bidder whose shall be in the English language. The bid, conforming to the invitation for bids, invitation shall contain the following: is lowest in price, unless another bid is

(1) Statement of requirements. The demonstrably more advantageous to the invitation shall state specifically that importer because of any factor (other formal competitive bid procedures apply. than price) set forth in the invitation The terms and conditions which apply for bids as a factor to be considered in to the procurement shall be clearly indi- the evaluation of bids. cated, including any factors other than (e) Submission of award information price to be used in evaluation. Com- to A.I.D. The importer shall complete modity specifications shall be stated in Form A.I.D. 11-83 "Abstract of Bids”, terms of U.S. standards, in a nonrestric- identifying thereon the successful bidder, tive manner, and in sufficient detail to and noting any two or more identical permit maximum response from pro- bids or any evidence of suspected colluspective suppliers.

sion. If the lowest bid has not been ac(2) Statement regarding submission of cepted, the importer shall justify the bids. Invitations for bids shall state the award and shall append to the Abstract applicable invitation number, the address a statement of reasons for rejecting all to which bids are to be sent, the closing

lower bids. The Abstract and any justihour and date for submission and the

fication statement shall be sent in triplidate, hour, and place for public opening

cate to the Office of the Controller, of bids. If additional drawings, details,

A.I.D., Washington, D.C. 20523, to arrive

within 20 days after the award of the or regulations or forms are necessary for

contract. bidding, the invitation shall state where such material may be obtained.

& 201.23 Other procurement procedures. (3) Statement regarding this Part (a) General requirements. In the 201. Invitations for bids shall expressly absence of a clear statement concerning indicate the extent to which any result- the applicability of formal competitive ing contract is subject to the require- bid procedures, a solicitation by an ments of this Part 201.

importer requesting an offer or quotation (4) Statement regarding late bids. from a supplier to furnish commodities The invitation for bids shall state that shall be understood as a representation

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