[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: 22CFR228.55]

[Page 1047-1048]
 
                       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 F_Waivers
 
Sec. 228.55  Delivery services.

    (a) Ocean transportation. A waiver to expand the flag eligibility 
requirements to allow the use of vessels under flag registry of the 
cooperating country, or Geographic Code 899 or 935 countries may be 
authorized under the circumstances provided for in this section. Any 
waiver granted under this section for a particular shipment which is not 
based on a determination of non-availability does not reduce the pool of 
cargo from which the applicable percentage required to be shipped on 
U.S.-flag vessels under 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), is determined. A waiver to expand the flag registry of any

[[Page 1048]]

Code 935 country may be authorized when:
    (1) It is necessary to assure adequate competition in the shipping 
market in order to obtain competitive pricing, particularly in the case 
of bulk cargoes and large cargoes carried by liners;
    (2) Eligible vessels provide liner service, only by transshipment, 
for commodities that cannot be containerized, and vessels under flag 
registry of countries to be authorized by the waiver provide liner 
service without transshipment;
    (3) Eligible vessels are not available, and cargo is ready and 
available for shipment, provided it is reasonably evident that delaying 
shipment would increase costs or significantly delay receipt of the 
cargo;
    (4) Eligible vessels are found unsuitable for loading, carriage, or 
unloading methods required, or for the available port handling 
facilities;
    (5) Eligible vessels do not provide liner service from the port of 
loading stated in the procurement's port of export delivery terms, 
provided the port is named in a manner consistent with normal trade 
practices; or
    (6) Eligible vessels decline to accept an offered consignment.
    (b) Air transportation. The preferences for use of United States 
flag air carriers or for use of United States, other Geographic Code 941 
countries, or cooperating country flag air carriers are not subject to 
waiver. Other free world air carriers may be used only as provided in 
Sec. 228.22.