[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: 22CFR228.31]

[Page 1043-1044]
 
                       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 D_Conditions Governing the Nationality of Suppliers of Services 
                           for USAID Financing
 
Sec. 228.31  Individuals and privately owned commercial firms.

    (a) In order to be eligible for USAID financing as a supplier of 
services, whether as a contractor or subcontractor at any tier, an 
individual must meet the requirements of paragraph (a)(1) of this 
section (except that individual personal services contractors are not 
subject to this requirement), and a privately owned commercial firm must 
meet the requirements in paragraph (a)(2) of this section. In the case 
of the categories described in paragraphs (a)(2) (i) and (ii) of this 
section, the certification requirements in paragraph (b) of this section 
must be met.
    (1) An individual must be a citizen of and have a principal place of 
business in a country or area included in the authorized geographic 
code, or a non-U.S. citizen lawfully admitted for permanent residence in 
the United States whose principal place of business is in the United 
States;
    (2) A privately owned commercial (i.e., for profit) corporation or 
partnership must be incorporated or legally organized under the laws of 
a country or area included in the authorized geographic code, have its 
principal place of business in a country or area included in the 
authorized geographic code, and meet the criteria set forth in either 
paragraph (a)(2)(i) or (ii) of this section:
    (i) The corporation or partnership is more than 50 percent 
beneficially owned by individuals who are citizens of a country or area 
included in the authorized geographic code or non-U.S. citizens lawfully 
admitted for permanent residence in the United States. In the case of 
corporations, ``more than 50 percent beneficially owned'' means that 
more than 50 percent of each class of stock is owned by such 
individuals; in the case of partnerships, ``more than 50 percent 
beneficially owned'' means that more than 50 percent of each category of 
partnership interest (e.g., general, limited) is owned by such 
individuals.

(With respect to stock or interest held by companies, funds or 
institutions, the ultimate beneficial ownership by individuals is 
controlling.)
    (ii) The corporation or partnership:
    (A) Has been incorporated or legally organized in the United States 
for more than 3 years prior to the issuance date of the invitation for 
bids or requests for proposals,
    (B) Has performed within the United States administrative and 
technical, professional, or construction services, similar in 
complexity, type and value to the services being contracted (under a 
contract, or contracts, for services) and derived revenue therefrom in 
each of the 3 years prior to the date described in paragraph 
(a)(2)(ii)(A) of this section,
    (C) Employs United States citizens and non-U.S. citizens lawfully 
admitted for permanent residence in the United States in more than half 
its permanent full-time positions in the United States and more than 
half of its principal management positions, and
    (D) Has the existing technical and financial capability in the 
United States to perform the contract.
    (b) A duly authorized officer of a firm or nonprofit organization 
shall certify that the participating firm or nonprofit organization 
meets either the requirements of paragraph (a)(2) (i) or (ii) of this 
section or Sec. 228.32. In the case of corporations, the certifying 
officer shall be the corporate secretary. With respect to the 
requirements of paragraph (a)(2)(i) of this section, the certifying 
officer may presume citizenship on the basis of the stockholders' record

[[Page 1044]]

address, provided the certifying officer certifies, regarding any 
stockholder (including any corporate fund or institutional stockholder) 
whose holdings are material to the corporation's eligibility, that the 
certifying officer knows of no fact which might rebut that presumption.