ganization shall reimburse CCC for such expenses or take such action as directed by CCC.

(b) Fault of others prior to loading on ocean vessel. Upon the happening of any event creating any rights against a warehouseman, carrier, or other person for the loss of or damage to a commodity occurring between the time title is transferred to a voluntary agency or intergovernmental organization and the time the commodity is loaded on board vessel at designated port of export, the voluntary agencies or intergovernmental organizations shall immediately notify CCC and promptly assign to CCC any rights to claims which may accrue to them as a result of such loss or damage and shall promptly forward to CCC all documents pertaining thereto. CCC shall have the right to initiate and prosecute, and retain the proceeds of all claims for such loss or damage.

(c) Ocean carrier loss and damage(1) Survey and outturn reports. (i) Cooperating sponsors shall arrange for an independent cargo surveyor to attend the discharge of the cargo and to prepare a survey report unless such survey is determined not to be feasible by USAID or the Diplomatic Post. In all cases, including those where a survey report is submitted, cooperating sponsors shall obtain an outturn report. The outturn report shall show the quantity and condition of the commodities delivered and the amount of any shortage or damage, certified wherever possible by an independent cargo surveyor. If practicable, the outturn shall be conducted jointly by the consignee and ocean carrier. The cooperating sponsor shall obtain a certification by a public health official or similar competent authority as to (a) the condition of the commodity in any case when a damaged commodity appears to be unfit for its intended use; and (b) a certificate of disposition in the event the commodity is determined to be unfit for its intended use.

(ii) In the event of cargo loss and damage, the cooperating sponsor shall provide the names and addresses of individuals who were present at the time of discharge and during survey and can verify the quantity lost or damaged. In the case of bulk grain shipments, the cooperating sponsor shall, in addition, provide certificates of the accuracy of the scale weights used to determine the quantity offloaded, and the moisture content of the grain when unloaded. If there

is no facility in the recipient country to determine the moisture content of the grain, a representative sample of the grain discharged shall be obtained and transmitted in airtight containers to USAID or Diplomatic Posts.

(iii) Voluntary agencies and intergovernmental organizations shall send copies of all reports and documents pertaining to the discharge of commodities to USDA.

(iv) Cooperating sponsors other than voluntary agencies and intergovernmental organizations shall promptly furnish the above-described reports and documents to the USAID or Diplomatic Post.

(2) Claims against ocean carriers. (i) Irrespective of transfer of title to the commodities, CCC shall have the right to initiate and prosecute, and retain the proceeds of, all claims against ocean carriers for cargo loss and damage on cargos for which CCC contracts for ocean transportation.

(ii) (a) Unless otherwise provided in the Food for Peace Program Agreement or other program document, voluntary agencies and intergovernmental organizations shall file notice of any cargo loss and damage with the carrier immediately upon discovery of any such loss and damage and shall promptly initiate claims against the ocean carriers for cargo loss and damage, and shall take all necessary action to obtain restitution for losses within any applicable periods of limitations. However, the voluntary agencies or intergovernmental organizations need not file a claim where the cargo loss is not in excess of $25, or in any case when the loss is in excess of $25 but not in excess of $100 and it is determined by the voluntary agencies or intergovernmental organizations that the cost of filing and collecting the claim will exceed the amount of the claim. The voluntary agencies or intergovernmental organizations will take no action to collect claims when there is loss or damage to commodities and general average had been declared. (See subdivision (iii) of this subparagraph (2).)

(b) Amounts collected by voluntary agencies and intergovernmental organizations on claims against ocean carriers not in excess of $50 may be retained by the voluntary agencies or intergovernmental organizations. On claims involving loss or damage in excess of $50, the voluntary agencies or intergovernmental organizations may retain from the amount collected on the claim either $50,

or actual administrative expenses incurred in collecting the claim, whichever is larger: Provided, That approval for retention of collection costs in excess of $50 is obtained in writing from CCC. Collection costs shall not be deemed to include attorneys fees, fees of collection agencies, and the like. In no event will collection costs in excess of the amount collected on the claim be paid by CCC. The voluntary agencies and intergovernmental organizations may also retain the actual cost of a survey conducted by an independent surveyor from claim recoveries remaining after allowable deductions for administrative expenses of collection. If survey costs exceed $50, the voluntary agencies and intergovernmental organizations shall furnish CCC a copy of the surveyor's invoice, or other document that will establish the survey cost. The voluntary agencies or intergovernmental organizations may also retain from claim recoveries remaining after allowable deductions, for administrative expenses of collection and costs of an independent survey, as above, the amount of any special charges, such as handling, packing, and insurance costs, which the voluntary agency or intergovernmental organization has incurred on the lost or damaged commodity and which are included in the claim and paid by the liable party.

(c) All compromise settlements for claims in excess of $100 must be approved by CCC. When a claim is compromised, the voluntary agency or intergovernmental organization may retain an amount representing the percentage of the special charges above described as the compromised amount is to the full amount of the claim.

(d) All amounts collected in excess of the amounts authorized herein to be retained shall be remitted to CCC. For the purpose of determining the amount to be retained by the voluntary agencies or intergovernmental organizations from the proceeds of claims filed against ocean carriers, the word "claim" shall refer to the loss and damage to commodities which are shipped on the same voyage of the same vessel to the same port destination, irrespective of the kinds of commodities shipped or the number of different bills of lading issued by the carrier. If a voluntary agency or intergovernmental organization is unable to effect collection of a claim or negotiate a compromise settle

ment acceptable to CCC within the applicable period of limitation or any extension thereof granted in writing by the liable party or parties, the rights of the voluntary agencies or intergovernmental organizations to the claim shall be assigned to CCC in sufficient time to permit the filing of legal action prior to the expiration of the period of limitation or any extension thereof. In the event CCC effects collection or other settlement of the claim after the rights of the voluntary agency or intergovernmental organization to the claim have been assigned to CCC, CCC shall make payment to the voluntary agency or intergovernmental organization of the amount authorized in this subdivision (ii) to be retained by the voluntary agency or intergovernmental organization.

(iii) If a cargo loss is incurred on a voluntary agency or intergovernmental organization shipment, and general average has been declared, the voluntary agency or intergovernmental organization shall furnish to the Treasurer, CCC, in Washington, D.C. (a) copies of the applicable on-board bill(s) of lading, (b) the related outturn or survey report(s), (c) evidence showing the amount of ocean transportation charges paid to the carrier (s), and (d) an assignment to CCC of the cooperating sponsor's rights to the claim (s) for such loss.

(d) Fault of cooperating sponsor in country of distribution. If the cooperating sponsor improperly distributes a commodity or knowingly permits it to be used for a purpose not permitted under the Food for Peace Program Agreement or this part, or causes loss or damage to a commodity through any act or omission or fails to provide proper storage, care, and handling, the cooperating sponsor shall pay to the United States the value of the commodities lost, damaged, or misused (or may, with prior USAID approval, replace such commodities with similar commodities of equal value), unless it is determined by AID that such improper distribution or use, or such loss or damage, could not have been prevented by proper exercise of the cooperating sponsor's responsibility under the terms of the agreement. Normal commercial practices in the country of distribution shall be considered in determining that there was a proper exercise of the cooperating sponsor's responsibility. Payment by the coop

erating sponsor shall be made in accordance with paragraph (g) of this section.

(e) Fault of others in country of distribution and in intermediate country. Upon the happening of any event creating any rights against a warehouseman, carrier or other person for the loss of, damage to, or misuse of any commodity, the cooperating sponsor shall make every reasonable effort to pursue collection of claims against the liable party or parties for the value of the commodity lost, damaged, or misused and furnish a copy of the claim and related documents to the USAID or Diplomatic Post. Cooperating sponsors who fail to file or pursue such claims shall be liable to AID for the value of the commodities lost, damaged, or misused: Provided, however, That the cooperating sponsor may elect not to file a claim if the loss is less than $100 and such action is not detrimental to the program. Cooperating sponsors may retain $25 of any amount collected on a claim. In addition, cooperating sponsors may, with the written approval of the USAID or Diplomatic Post, retain special costs such as legal fees that they have incurred in the collection of a claim. Any proposed settlement for less than the full amount of the claim must be approved by the USAID or Diplomatic Post prior to acceptance. When the cooperating sponsor has exhausted all reasonable attempts to collect a claim, it shall request the USAID or Diplomatic Post to provide further instructions.

(f) Reporting losses to USAID or Diplomatic Post. The cooperating sponsor shall promptly notify USAID or the Diplomatic Post in writing of the circumstances pertaining to any loss, damage, or misuse occurring within the country of distribution or intermediate country and shall include information as to the name of the responsible party; kind and quantities of commodities; size, and type of containers; the time and place of misuse, loss, or damage; the current location of the commodity; and the Food for Peace Program

Agreement

number, the CCC contract numbers, if known, or if unknown, other identifying numbers printed on the commodity containers; the action taken by the cooperating sponsor with respect to recovery or disposal; and the estimated value of the commodity. If any of the above information is not available, an explanation of its unavailability shall be made

by the cooperating sponsor. Proceeds from sale and the disposition of the proceeds if any, should also be reported.

(g) Determination of value. (1) Where payment is made for commodities misused, lost or damaged, the value shall be determined on the basis of the domestic market price at the time and place the misuse, loss or damage occurred, or, in case it is not feasible to obtain or determine such market price, the f.o.b. or f.a.s. commercial export price of the commodity at the time and place of export, plus ocean freight charges and other costs incurred by the United States in making delivery to the cooperating sponsor: Provided, however, That with respect to claims other than ocean carrier loss and/or damage claims, at the request of the cooperating sponsor and/or upon the recommendation of the USAID or Diplomatic Post, AID/W may determine that such value may be determined on some other justifiable basis. Where replacements are made, the value of commodities misused, lost or damaged, shall be their value at the time and place the misuse, loss, or damage occurred and the value of the replacement commodities shall be their value at the time and place replacement is made.

(2) In the settlement of general average and marine salvage claims, the value of the cargo and the commodities lost or damaged, shall be determined by CCC on such basis as may be legally applicable.

(h) Handling claims proceeds. Claims against ocean carriers shall be collected in U.S. dollars (or in currency in which freight is paid, or a pro rata share of each) and shall be remitted (less amounts authorized to be retained) by voluntary agencies and intergovernmental organizations to CCC. Claims against voluntary agencies and intergovernmental organizations shall be paid to AID/W in U.S. dollars. Amounts paid by other cooperating sponsors and third parties in the country of distribution shall be deposited with the U.S. Disbursing Officer, American Embassy, preferably in U.S. dollars with instructions to credit the deposit to CCC Account No. 12X4336, or in local currency at the official exchange rate applicable to dollar imports at the time of deposit with instructions to credit the deposit to Treasury sales account 20FT401.

[A.I.D. Reg. 11, 33 F.R. 2918, Feb. 13, 1968, as amended at 35 F.R. 15751, Oct. 7, 1970]

§ 211.10 Records and reporting requirements of cooperating sponsor. (a) Records. Cooperating sponsors shall maintain records and documents in a manner which will accurately reflect all transactions pertaining to the receipt, storage, distribution, and inspection of commodities. This shall include a periodic summary report and records of receipt and disbursement of any funds accruing from the operation of the program. Such records shall be retained for a period of 3 years from the close of the U.S. fiscal year to which they pertain.

(b) Reports. Cooperating sponsors shall submit reports to the USAID or Diplomatic Post, at such times and on such forms as prescribed by AID. The following is a list of the principal types of reports that are to be submitted:

(1) Periodic summary reports showing receipt, distribution, and inventory of commodities and proposed schedules of shipments or call forwards.

(2) Reports relating to progress and problems in the implementation and operation of the program, and inspection reports, as may be required from time to time by AID/W, or as may be agreed upon between the USAID or Diplomatic Post and the cooperating sponsor and approved by AID/W.

(3) Reports of all comprehensive internal audit examinations prepared in accordance with § 211.5 (c) shall be submitted to the USAID or Diplomatic Post for review as soon as completed and in advance of submission of estimates of requirements submitted in accordance with § 211.5(d) and in sufficient detail to enable the USAID or Diplomatic Post to assess and to make recommendations as to the ability of the cooperating sponsors to manager and control the Food for Freedom programs under their administration.

(c) Inspection and audit. Cooperating sponsors shall cooperate with and give reasonable assistance to USAID/ Controller and other U.S. Government representatives to enable them at any reasonable time to examine activities of the cooperating sponsors, processors, or others, pertaining to the receipt, distribution, processing, repackaging, and use of commodities; to inspect commodities in storage, or the facilities used in the handling or storage of commodities; to inspect and audit records, including financial records and reports pertaining to

storage, transportation, processing, repackaging, distribution and use of commodities; the deposit of and use of any local currencies; and to review or audit the procedures and methods used in carrying out the requirements of this part.

§ 211.11

Termination of program.

All or any part of the assistance provided under the program, including commodities in transit, may be terminated by AID at its discretion if the cooperating sponsor fails to comply with the provisions of the Food for Freedom Program Agreement, this part, or if it is determined by AID that the continuation of such assistance is no longer necessary or desirable. Under such circumstances title to commodities which have been transferred to the cooperating sponsor shall at the written request of USAID, the Diplomatic Post, or AID/W, be retransferred to the U.S. Government by the cooperating sponsor. Any excess commodities on hand at the time the program is terminated shall be disposed of in accordance with § 211.5(1). If it is determined that any commodity to be supplied under the Food for Freedom Program Agreement is no longer available for Food for Freedom Programs, such authorization shall terminate with respect to any commodities which, as of the date of such determination have not been delivered f.o.b. or f.a.s vessel, provided every effort will be made to give adequate advance notice to protect cooperating sponsors against unnecessarily booking vessels. § 211.12

Waiver and amendment au

thority.

AID may waive, withdraw, or amend, at any time, any or all of the provisions of this Part 211 if such provision is not statutory and if AID determines it is in the best interest of the U.S. Government to do so. Any cooperating sponsor which has failed to comply with the provisions of this part or any instructions or procedures issued in connection herewith, or any agreements entered into pursuant hereto may at the discretion of AID be suspended or disqualified from further participation in any distribution program. Reinstatement may be made at the option of AID. Disqualification shall not prevent AID from taking other action through other available means when considered necessary.

212.35 Schedule of fees and method of payment for services rendered.

Subpart E-Exemptions From Disclosure 212.41 Exemptions from the publication and disclosure requirements of Subparts B, C, and D.

212.42 Guidance in application of exemptions.

Subpart F-Access to Classified Foreign Policy Records for Nonofficial Research Purposes

212.51 General policy.

AUTHORITY: The provisions of this Part 212 issued under sec. 621, 75 Stat. 445, as amended; 22 U.S.C. 2402, 5 U.S.C. 552, E.O. 10501, 18 F.R. 7049, 3 CFR 1949-1953 Comp., page 979, E.O. 10816, 23 F.R. 3777, 3 CFR 1959-1963 Comp., page 351.

SOURCE: The provisions of this Part 212 contained in A.I.D. Regulation 12, 32 F.R. 9652, July 4, 1967, unless otherwise noted. Subpart A-General

§ 212.1 Statement of policy.

(a) It is the policy of the Agency for International Development that information about its objectives and operations be freely available to the public, in accordance with the provisions of Public Law 89-487 (80 Stat. 250). The Director, Information Staff is responsible for administration of the provisions of the regulations of this part.

(b) All identifiable records of the Agency for International Development shall be made available to the public upon compliance with the procedures

established in this regulation, except to the extent a record is determined to be exempt from disclosure by the Director, Information Staff or the Assistant Administrator for Administration.

Subpart B-Publication in the
Federal Register

§ 212.11

Materials to be published.

(a) The Agency separately states and currently publishes in the FEDERAL REGISTER for the guidance of the public:

(1) Descriptions of its central and field organization and the established places at which, the officers from whom, and the methods whereby, the public may secure information, make submittals or requests, or obtain decisions;

(2) Statements of the general course and method by which its functions are channelled and determined, including the nature and requirements of all formal and informal procdurees available;

(3) Rules of procedure, descriptions of forms available or the place at which forms may be obtained, and instructions as to the scope and contents of all papers, reports, or examinations;

(4) Substantive rules of general applicability adopted as authorized by law, and statements of general policy or interpretations of general applicability formulated and adopted by the Agency; and

(5) Every amendment, revision or repeal of the foregoing.

(b) A.I.D. Public Notice No. 1 and the A.I.D. Regulations published in Chapter II of Title 22, and in Sub-Title A, Chapter 7 of Title 41 of the Code of Federal Regulations, implement the provisions of this section.

§ 212.12 Effect of nonpublication.

Except to the extent that a person has actual and timely notice of the terms thereof, no person shall in any manner be required to resort to, or be adversely affected by any A.I.D. matter required to be published in the FEDERAL REGISTER and not so published.

§ 212.13 Incorporation by reference.

For purposes of this Subpart B, A.I.D. matter which is reasonably available to the class of persons affected thereby is deemed to be published in the FEDERAL REGISTER When it has been incorporated by reference therein with the approval of the Director of the Federal Register.