As used in this part, the following terms shall have the meanings indicated below:

(a) The Act. "The Act" means the Foreign Assistance Act of 1961, as amended from time to time.

(b) A.I.D. "A.I.D." means the Agency for International Development or any successor agency, including, when applicable, each US AID.

(c) A.I.D. geographic code. "A.I.D. geographic code" means a code in the A.I.D. Geographic Code Book which designates a country, a group of countries, or an otherwise defined area.

(d) AID/W. "AID/W" means the A.I.D. in Washington, D.C., 20523, including any office thereof.

"Approved

(e) Approved applicant. applicant" means the person or organization designated by the borrower/ grantee to establish credits with banks in favor of suppliers or to instruct banks to make payments to suppliers, and includes any agent acting on behalf of such approved applicant.

(f) Bank. "Bank" means a banking institution organized under the laws of the United States, or any State, territory or possession thereof, or Puerto Rico or the District of Columbia.

(g) Borrower/grantee. "Borrower/ grantee" means the government of any cooperating country, or any agency, instrumentality or political subdivision thereof, or any private entity to which A.I.D. directly makes funds available by loan or grant.

(h) Commodity. "Commodity" means any material, article, supply, goods or equipment.

(i) Commodity-related services. "Commodity-related services" means delivery services and/or incidental services.

(j) Cooperating country. "Cooperating country" means any country to which A.I.D. provides any form of assistance under the Act.

(k) Delivery. "Delivery" means the transfer to, or for the account of, an importer of the right to possession of a commodity, or the rendering to, or for the account of, an importer of any commodity-related service.

(1) Delivery services. "Delivery services" means any service customarily performed in a commerical export trans

action which is necessary to effect a physical transfer of commodities from the country of export to the cooperating country. Examples of such services are the following: export packing, local drayage in the source country (including waiting time at the dock), ocean and other freight, loading, heavy lift, wharfage, tollage, switching, dumping and trimming, lighterage, insurance, commodity inspection services, and services of a freight forwarder. "Delivery services" may also include work and materials necessary to meet A.I.D. marking requirements.

"Im

(m) Implementing document. plementing document” means any document issued by A.I.D. which authorizes the use of A.I.D. funds for the procurement of commodities and/or commodityrelated services and which specifies conditions which will apply to such procurement.

(n) Importer. "Importer" means any person or organization, governmental or otherwise, in the cooperating country who is authorized by the borrower/ grantee to use A.I.D. funds under this Regulation for the procurement of commodities, and includes any borrower/ grantee who undertakes such procurement.

(0) Incidental services. "Incidental services" means the installation or erection of A.I.D.-financed equipment, or the training of personnel in the maintenance, operation and use of such equipment.

(p) Purchase contract. "Purchase contract" means any contract or similar arrangement under which a supplier furnishes commodities and/or commodity-related services financed under this Part 201.

(q) Source. "Source" means the country from which a commodity is shipped to the cooperating country, or the cooperating country if the commodity is located therein at the time of the purchase. Where, however, a commodity is shipped from a free port or bonded warehouse in the form in which received therein, "source" means the country from which the commodity was shipped to the free port or bonded warehouse.

(r) Supplier. "Supplier" means any person or organization, governmental or otherwise, who furnishes commodities and/or commodity-related services financed under this part.

(s) Supplier's Certificate. "Supplier's Certificate" means AID Form 282, "Sup

plier's Certificate and Agreement with the Agency for International Development", including the "Invoice-and-Contract Abstract" on the reverse of such form (Appendix A to this Part 201), or any substitute form which may be prescribed in the letter of commitment, request for the opening of a special letter of credit, or other pertinent implementing document.

(t) United States. "United States" means the United States of America, any State, territory or possession thereof, Puerto Rico and the District of Columbia.

(u) US AID. "US AID" means the A.I.D. mission or representative to any cooperating country.

(v) Certificate and Agreement Regarding Concerted Pricing. "Certificate and Agreement Regarding Concerted Pricing" means A.I.D. Form 285 (Appendix D to this Part 201).

[A.I.D. Reg. 1, 29 F.R. 12896, Sept. 12, 1966, as amended by A.I.D. Reg. 1, 31 F.R. 15195, Dec. 3, 1966; A.I.D. Reg. 1, 31 F.R. 16693, Dec. 30, 1966]

§ 201.02 Scope.

The appropriate implementing document will indicate whether and the extent to which this part shall apply to the procurement of commodities or commodity-related services or both.

(a) The borrower/grantee is responsible for compliance with the applicable provisions of this part by importers and suppliers, and for assuring that importers and suppliers are informed of the extent to which this part applies.

(b) Subpart B sets forth conditions governing the eligibility for A.I.D.-financing of transactions covering commodities and commodity-related services.

(c) Subpart C prescribes procedures which importers shall follow in purchasing commodities.

(d) Subpart D sets forth the responsibilities of suppliers.

(e) Subpart E contains provisions relating to

(1) The diversion of shipments and the vesting in A.I.D. of title to commodities;

(2) The effect of termination or modification of any loan, grant or implementing document; and

(3) A.I.D. audit and inspection rights. (f) Subpart F describes the financing process and prescribes the documents which shall be submitted to banks and to A.I.D.

This subpart sets forth requirements for A.I.D. financing applicable to transactions for the procurement of commodities and/or commodity-related services. § 201.11 Eligibility of commodities.

To qualify for A.I.D. financing, a commodity procurement transaction shall satisfy the following requirements:

(a) Description and condition of the commodity. The commodity shall conform to the description in the implementing document. Unless otherwise authorized by AID/W in writing, the commodity shall be unused, and may not have been disposed of as surplus by any governmental agency.

(b) Source-(1) General rule. The source of the commodity shall be a country authorized in the implementing document by name or by reference to an A.I.D. geographic code. In addition, the commodity shall have been mined, grown, or through manufacturing, processing, or assembly produced in a source country authorized in the implementing document.

(2) Exceptions. A produced commodity will not be eligible for A.I.D. financing if

(i) It contains any component from countries other than free world countries as listed in A.I.D. geographic code 899; or

(ii) It contains components which were imported into the country of production from such free world countries other than authorized source countries; and