[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: 22CFR228.21]

[Page 1041]
 
                       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 C_Conditions Governing the Eligibility of Commodity-Related 
                      Services for USAID Financing
 
Sec. 228.21  Ocean transportation.

    (a) The Cargo Preference Act of 1954, Section 901(b)(1) of the 
Merchant Marine Act of 1936, as amended, 46 U.S.C. 1241(b)(1), is 
applicable to ocean shipment of goods subject to this part. USAID's 
policy on implementation of the Cargo Preference Act is in USAID's 
Automated Directives System, Chapter 315.
    (b) In addition to cargo preference requirements, ocean shipments of 
USAID-financed goods must meet the requirements in paragraph (c) of this 
section in order for the freight cost to be eligible for USAID 
financing.
    (c) The eligibility of ocean transportation services is determined 
by the flag registry of the vessel.
    (1) When the authorized source for procurement is Geographic Code 
000 (U.S.A.), USAID will finance ocean transportation only on U.S. flag 
vessels.
    (2) When the authorized source for procurement is Geographic Code 
941 (selected Free World), USAID will finance ocean transportation on 
vessels under flag registry of any country in Code 935.
    (3) When commodities whose eligibility is restricted to Geographic 
Code 000 are purchased under agreements which authorize Geographic Code 
941 for the procurement of all other commodities, USAID will finance the 
ocean transportation in accordance with paragraph (c)(2) of this 
section.
    (4) USAID will finance costs incurred on vessels under flag registry 
of any Geographic Code 935 country if the costs are part of the total 
cost on a through bill of lading that is paid to a carrier for initial 
carriage on a vessel which is eligible in accordance with paragraphs 
(c)(1), (2) or (3) of this section; provided that for shipments 
originating on a U.S. flag vessel with transshipment to a non-U.S. flag 
vessel, the supplier must obtain a determination that direct serve on a 
U.S. flag vessel is not available from USAID's Office of Procurement, 
Transportation Division, 1300 Pennsylvania Avenue NW., Washington, DC 
20523-7900.

[61 FR 53616, Oct. 15, 1996, as amended at 63 FR 38751, July 20, 1998]