[Code of Federal Regulations] [Title 22, Volume 1] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 22CFR228.01] [Page 1037-1038] TITLE 22--FOREIGN RELATIONS CHAPTER II--AGENCY FOR INTERNATIONAL DEVELOPMENT PART 228_RULES ON SOURCE, ORIGIN AND NATIONALITY FOR COMMODITIES AND SERVICES FINANCED BY USAID--Table of Contents Subpart A_Definitions and Scope of This Part Sec. 228.01 Definitions. Subpart A_Definitions and Scope of This Part Sec. 228.01 Definitions. 228.02 Scope and application. 228.03 Identification of principal geographic code numbers. Subpart B_Conditions Governing Source and Nationality of Commodity Procurement Transactions for USAID Financing 228.10 Purpose. 228.11 Source and origin of commodities. 228.12 Long-term leases. 228.13 Special source rules requiring procurement from the United States. 228.14 Nationality of suppliers of commodities. Subpart C_Conditions Governing the Eligibility of Commodity-Related Services for USAID Financing 228.20 Purpose. 228.21 Ocean transportation. 228.22 Air transportation. 228.23 Eligibility of marine insurance. 228.24 Other delivery services. 228.25 Incidental services. Subpart D_Conditions Governing the Nationality of Suppliers of Services for USAID Financing 228.30 Purpose. 228.31 Individuals and privately owned commercial firms. 228.32 Nonprofit organizations. 228.33 Foreign government-owned organizations. 228.34 Joint ventures. 228.35 Construction services from foreign-owned local firms. 228.36 Ineligible suppliers. 228.37 Nationality of employees under contracts or subcontracts for services. 228.38 Miscellaneous service transactions. 228.39 Special source rules for construction and engineering services. Subpart E_Conditions Governing Source and Nationality of Local Procurement Transactions for USAID Financing 228.40 Local procurement. Subpart F_Waivers 228.50 General. 228.51 Commodities. 228.52 Suppliers of commodities. 228.53 Suppliers of services--privately owned commercial suppliers and nonprofit organizations. 228.54 Suppliers of services--foreign government-owned organizations. 228.55 Delivery services. 228.56 Authority to approve waivers. Authority: Sec. 621, Pub. L. 87-195, 75 Stat. 445 (22 U.S.C. 2381), as amended, E.O. 12163, Sept. 29, 1979, 44 FR 56673: 3 CFR 1979 Comp., p. 435. Source: 61 FR 53616, Oct. 15, 1996, unless otherwise noted. As used in this part, the following terms shall have the following meanings: (a) Commodity means any material, article, supply, goods, or equipment. (b) Commodity-related services means delivery services and/or incidental services. (c) Component means any good that goes directly into the production of a produced commodity. (d) Cooperating country means the country receiving the USAID assistance subject to this part 228. (e) Delivery means the transfer to, or for the account of, an importer of the right to possession of a commodity, or, with respect to a commodity-related service, the rendering to, or for the account of, an importer of any such service. (f) Delivery service means any service customarily performed in a commercial export transaction which is necessary to effect a physical transfer of commodities to the cooperating country. Examples of such services are the following: export packing, local drayage in the source country (including waiting time at the dock), ocean and other freight, loading, heavy lift, wharfage, tollage, switching, dumping and trimming, lighterage, insurance, commodity inspection services, and services of a freight forwarder. ``Delivery services'' may also include work and materials necessary to meet USAID marking requirements. (g) Implementing document means any document, such as a contract, grant, [[Page 1038]] letter of commitment, etc., issued by USAID which authorizes the use of USAID funds for the procurement of services or commodities and/or commodity related services, and which specifies conditions which apply to such procurement. (h) Incidental services means the installation or erection of USAID- financed equipment, or the training of personnel in the maintenance, operation and use of such equipment. (i) Mission means the USAID Mission or representative in a cooperating country. (j) Origin means the country where a commodity is mined, grown or produced. A commodity is produced when, through manufacturing, processing, or substantial and major assembling of components, a commercially recognized new commodity results that is significantly different in basic characteristics or in purpose of utility from its components. (k) Services means the performance of identifiable tasks, rather than the delivery of an end item of supply. (l) Source means the country from which a commodity is shipped to the cooperating country, or the cooperating country if the commodity is located therein at the time of the purchase. Where, however, a commodity is shipped from a free port or bonded warehouse in the form in which received therein, ``source'' means the country from which the commodity was shipped to the free port or bonded warehouse. (m) State means the District of Columbia or any State, commonwealth, territory or possession of the United States. (n) Supplier means any person or organization, governmental or otherwise, who furnishes services, commodities and/or commodity related services financed by USAID. (o) United States means the United States of America, any State(s) of the United States, the District of Columbia, and areas of U.S. associated sovereignty, including commonwealths, territories and possessions. (p) USAID means the U.S. Agency for International Development or any successor agency, including when applicable, each USAID Mission abroad. (q) USAID Geographic Code means a code in the USAID Geographic Code Book which designates a country, a group of countries, or an otherwise defined area. The principal USAID geographic codes are described in Sec. 228.03. (r) USAID/W means the USAID in Washington, DC 20523, including any office thereof.