[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: 22CFR228.13]

[Page 1040]
 
                       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 B_Conditions Governing Source and Nationality of Commodity 
              Procurement Transactions for USAID Financing
 
Sec. 228.13  Special source rules requiring procurement from the United States.

    (a) Agricultural commodities and products thereof must be procured 
in the United States if the domestic price is less than parity, unless 
the commodity cannot reasonably be procured in the United States in 
fulfillment of the objectives of a particular assistance program under 
which such commodity procurement is to be financed. (22 U.S.C. 2354)
    (b) Motor vehicles must be manufactured in the United States to be 
eligible for USAID financing. Also, any vehicle to be financed by USAID 
under a long-term lease or where the sale is to be guaranteed by USAID 
must be manufactured in the United States. (22 U.S.C. 2396) For purposes 
of this section, motor vehicles are defined as self-propelled vehicles 
with passenger carriage capacity, such as highway trucks, passenger cars 
and buses, motorcycles, scooters, motorized bicycles and utility 
vehicles. Excluded from this definition are industrial vehicles for 
materials handling and earthmoving, such as lift trucks, tractors, 
graders, scrapers, off-the-highway trucks (such as off-road dump trucks) 
and other vehicles that are not designed for travel at normal road 
speeds (40 kilometers per hour and above).
    (c) Pharmaceutical products must be manufactured in the United 
States in order to be eligible for USAID financing. USAID shall not 
finance any pharmaceutical product manufactured outside the United 
States if the manufacture of such product in the United States would 
involve the use of, or be covered by, a valid patent of the United 
States unless such manufacture is expressly authorized by the owner of 
such patent. (22 U.S.C. 2356)

[61 FR 53616, Oct. 15, 1996; 62 FR 314, Jan. 3, 1997, as amended at 63 
FR 72181, Dec. 31, 1998]