[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: 22CFR228.23]

[Page 1042]
 
                       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. 228.23  Eligibility of marine insurance.

    The eligibility of marine insurance is determined by the country in 
which it is ``placed''. Insurance is ``placed'' in a country if payment 
of the insurance premium is made to, and the insurance policy is issued 
by, an insurance company office located in that country. Eligible 
countries for placement are governed by the authorized geographic code. 
However, if Geographic Code 941 is authorized, the cooperating country 
is also eligible to provide such services, unless the implementing 
document specified otherwise based on the following:
    (a) If a cooperating country discriminates against marine insurance 
companies authorized to do business in any State of the United States, 
then all USAID-financed goods for that country must be insured in the 
United States against marine risk. The term ``authorized to do business 
in any State of the United States'' means that foreign-owned insurance 
companies licensed to do business in the United States (by any State) 
are treated the same as comparable U.S.-owned companies.
    (b) The prima facie test of discrimination is that a cooperating 
country takes actions which hinder private importers in USAID-financed 
transactions from making cost, insurance and freight (C.I.F.) or cost 
and insurance (C.&I.) contracts with United States commodity suppliers, 
or which hinder importers in instructing such suppliers to place marine 
insurance with companies authorized to do business in the United States.
    (c) When discrimination is found to exist and the cooperating 
country fails to correct the discriminatory practice, USAID requires 
that all commodities procured with USAID funds be insured in the United 
States against marine loss. The decision of any cooperating country to 
insure all public sector procurements locally with a government-owned 
insurance agency is not considered discrimination.