(B) in any other country but only if—

(i) the provision of such assistance requires commodities or services of a type that are not produced in and available for purchase in any country specified in subparagraph (A);

or

(ii) the President determines, on a case-by-case basis, that procurement in such other country is necessary

(I) to meet unforeseen circumstances, such as emergency situations, where it is important to permit procurement in a country not specified in subparagraph (A); or

(II) to promote efficiency in the use of United States foreign assistance resources, including to avoid impairment of foreign assistance objectives.

(2) For purposes of this subsection, the term "developing countries" shall not include advanced developing countries.

(b) No funds made available under this Act shall be used for the purchase in bulk of any commodities at prices higher than the market price prevailing in the United States at the time of purchase, adjusted for differences in the cost of transportation to destination, quality, and terms of payment.

(c) 873 In providing for the procurement of any agricultural commodity or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954 as amended, for transfer by grant under this Act to any recipient country in accordance with its requirements, the President shall, insofar as practicable and when in furtherance of the purposes of this Act, authorize the procurement of such agricultural commodity only within the United States except to the extent that such agricultural commodity is not available in the United States in sufficient quantities to supply emergency requirements of recipients under this Act.

(d) In providing assistance in the procurement of commodities in the United States, United States dollars shall be made available for marine insurance on such commodities where such insurance is placed on a competitive basis in accordance with normal trade practice prevailing prior to the outbreak of World War II: Provided, That in the event a participating country, by statute, decree, rule, or regulation, discriminates against any marine insurance company authorized to do business in any State of the United States, then commodities purchased with funds provided hereunder and destined for such country shall be insured in the United States against marine risk with a company or companies authorized to do a marine insurance business in any State of the United States.

(e) 874 No funds made available under this Act shall be used for the procurement of any agricultural commodity or product thereof outside the United States when the domestic price of such commodity is less than parity, unless the commodity to be financed could not reasonably be produced in the United States in fulfill

873 Sec. 301(b)(1) of the FA Act of 1966 (Public Law 89-583) struck out "surplus" before “agricultural" and inserted "or product thereof available for disposition under the Agricultural Trade Development and Assistance Act of 1954, as amended,". For text of the Agricultural Trade Development and Assistance Act, see Legislation on Foreign Relations Through 2004, vol. I-B. 874 Sec. 301(b)(2) of the FA Act of 1966 (Public Law 89-583) added subsec. (e).

ment of the objectives of a particular assistance program under which such commodity procurement is to be financed.875

(f)876 No funds authorized to be made available to carry out part I of this Act shall be used under any commodity import program to make any payment to a supplier unless the supplier has certified to the agency primarily responsible for administering such part I, such information as such agency shall by regulation prescribe, including but not limited to, a description of the commodity supplied by him and its condition, and on the basis of such information such agency shall have approved such commodity as eligible and suitable for financing under this Act.

(g) 877 (1) None of the funds authorized to be appropriated or made available for obligation or expenditure under this Act may be made available for the procurement of construction or engineering services from advanced developing countries, eligible under the Geographic Code 941, which have attained a competitive capability in international markets for construction services or engineering serv

ices.

(2) 878 Paragraph (1) does not apply with respect to an advanced developing country which

(A) is receiving direct economic assistance under chapter 1 of part I or chapter 4 of part II of this Act, and

(B) if the country has its own foreign assistance programs which finance the procurement of construction or engineering services, permits United States firms to compete for those services.

Sec. 605.879 Retention and Use of Certain Items and Funds. (a) Any commodities and defense articles procured to carry out this Act shall be retained by, or upon reimbursement, transferred to, and for the use of, such agency of the United States Government as the President may determine in lieu of being disposed of to a foreign country or international organization, whenever in the judgment of the President the best interests of the United States will be served thereby or whenever such retention is called for by concurrent resolution. Any commodities or defense articles so retained may be disposed of without regard to provisions of law relating to the disposal of property owned by the United States Government, when necessary to prevent spoilage or wastage of such commodities or defense articles or to conserve the usefulness thereof. Funds realized from any disposal or transfer shall revert to the respective appropriation, fund, or account used to procure such commodities or defense articles or to the appropriation, fund, or account currently available for the same general purpose. (b) Whenever commodities are transferred to the United States Government as repayment of assistance under this Act, such com

*75 Sec. 705(a) of the International Security and Development Cooperation Act of 1980 (Public Law 96-593; 94 Stat. 3157) inserted “, unless the commodity to be financed could not reasonably be produced in the United States in fulfillment of the objectives of a particular assistance program under which such commodity procurement is to be financed".

*76 Sec. 301(a) of the FA Act of 1968 (Public Law 90–554) added subsec. (f).

877 Sec. 705(b) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533, 94 Stat. 3158) added subsec. (g).

78 Sec. 1207 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 278) added para. (2).

67922 U.S.C. 2355. Sec. 301(a)(1) of the FA Act of 1965 (Public Law 89-171) struck out "Items" and inserted in lieu thereof "Certain Items and Funds".

modities may be used in furtherance of the purposes and within the limitations of this Act.

(c) 880 Funds realized as a result of any failure of a transaction financed under authority of part I of this Act to conform to the requirements of this Act, or to applicable rules and regulations of the Únited States Government, or to the terms of any agreement or contract entered into under authority of part I of this Act, shall revert to the respective appropriation, fund, or account used to finance such transaction or to the appropriation, fund, or account currently available for the same general purpose.

(d) 880 Funds realized by the United States Government from the sale, transfer, or disposal of defense articles returned to the United States Government by a recipient country or international organization as no longer needed for the purpose for which furnished shall be credited to the respective appropriation, fund, or account used to procure such defense articles or to the appropriation, fund, or account currently available for the same general purpose.

Sec. 606.881 Patents and Technical Information.-(a) Whenever, in connection with the furnishing of assistance under this Act

(1) an invention or discovery covered by a patent issued by the United States Government is practiced within the United States without the authorization of the owner, or

(2) information, which is (A) protected by law, and (B) held by the United States Government subject to restrictions imposed by the owner, is disclosed by the United States Government or any of its officers, employees, or agents in violation of such restrictions,

the exclusive remedy of the owner, except as provided in subsection (b) of this section, is to sue the United States Government for reasonable and entire compensation for such practice or disclosure in the district court of the United States for the district in which such owner is a resident, or in the United States Court of Federal Claims 882 within six years after the cause of action arises. Any period during which the United States Government is in possession of a written claim under subsection (b) of this section before mailing a notice of denial of that claim does not count in computing the six years. In any such suit, the United States Government may plead any defense that may be pleaded by a private person in such an action. The last paragraph of section 1498(a) of title 28 of the United States Code shall apply to inventions and information covered by this section.

(b) Before suit against the United States Government has been instituted, the head of the agency of the United States Government concerned may settle and pay any claim arising under the circumstances described in subsection (a) of this section. No claim may be paid under this subsection unless the amount tendered is accepted by the claimant in full satisfaction.

880 Sec. 301(a)(2) of the FA Act of 1965 (Public Law 89-171) added subsecs. (c) and (d). 881 22 U.S.C. 2356.

882 Sec. 160(a)(6) of the Federal Courts Improvement Act (Public Law 97-164; 96 Stat. 48) struck out "Court of Claims" and inserted in lieu thereof "United States Claims Court". Subsequently, sec. 902(b) of Public Law 102-572 (106 Stat. 4516) provided that any reference, in law or in Federal documents, to the United States Claims Court should be deemed to be a reference to the United States Court of Federal Claims.

(c) Funds appropriated pursuant to this Act shall not be expended by the United States Government for the acquisition of any drug product or pharmaceutical product manufactured outside the United States if the manufacture of such drug product or pharmaceutical product in the United States would involve the use of, or be covered by, an unexpired patent of the United States which has not previously been held invalid by an unappealed or unappealable judgment or decree of a court of competent jurisdiction, unless such manufacture is expressly authorized by the owner of such patent. Sec. 607.883 Furnishing of Services and Commodities.-(a) Whenever the President determines it to be consistent with and in furtherance of the purposes of part I and within the limitations of this Act, any agency of the United States Government is authorized to furnish services and commodities on an advance-of-funds or reimbursement basis to friendly countries, international organizations, the American Red Cross, and voluntary nonprofit relief agencies registered with and approved by the Agency for International Development 884 (including foreign voluntary nonprofit relief agencies so registered and approved when no United States voluntary nonprofit relief agency is available).885 Such advances or reimbursements may be credited to the currently applicable appropriation, account, or fund of the agency concerned and shall be available for the purposes for which such appropriation, account, or fund is authorized to be used, under the following circumstances:

(1) Advances or reimbursements which are received under this section within one hundred and eighty days after the close of the fiscal year in which such services and commodities are delivered.

(2) Advances or reimbursements received pursuant to agreements executed under this section in which reimbursement will not be completed within one hundred and eighty days after the close of the fiscal year in which such services and commodities are delivered: Provided, That such agreements require the payment of interest at the current rate established pursuant to section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (59 Stat. 526), and repayment of such principal and interest does not exceed a period of three years from the date of signing of the agreement to provide the service: Provided further, That funds available for this paragraph in any fiscal year shall not exceed $1,000,000 of the total funds authorized for use in such fiscal year by chapter 1 of part I of this Act, and shall be available only to the extent provided in appropriation Acts. Interest

883 22 U.S.C. 2357. Sec. 301(b) of the FA Act of 1968 (Public Law 90–554) added subsec. designation "(a)". Presidential authority in sec. 607 was delegated to the Secretary of State and to the Administrator of the Agency for International Development, respectively, for matters within their respective areas of responsibility, pursuant to a Presidential memorandum of February 16, 1995 (60 F.R. 10793).

584 Sec. 121 of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 366) struck out "Advisory Committee on Voluntary Foreign Aid” and inserted in lieu thereof "Agency for International Development".

Sec. 122(a) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 541) inserted the parenthetical phrase. Subsec. (b) of sec. 122 further instructed the President to issue regulations "governing registration with and approval by the Advisory Committee on Voluntary Foreign Aid of foreign nonprofit agencies.".

shall accrue as of the date of disbursement to the agency or organization providing such services.886

(b) 887 When any agency of the United States Government provides services on an advance-of-funds or reimbursable basis under this section, such agency may contract with individuals for personal service abroad or in the United States to perform such services or to replace officers or employees of the United States Government who are assigned by the agency to provide such services. Such individuals shall not be regarded as employees of the United States Government for the purpose of any law administered by the Civil Service Commission.888

(c) 887 (1) Except as provided in subsection (d),889 no Governmentowned excess property shall be made available under this section, section 608, or otherwise in furtherance of the purposes of part I of this Act, unless, before the shipment of such property for use in a specified country (or transfer, if the property is already in such country), the agency administering such part I has approved such shipment (or transfer) and made a written determination

(A) 889 that there is a need for such property in the quantity requested and that such property is suitable for the purpose requested; (B) 889 as to the status and responsibility of the designated end-user and his ability effectively to use and maintain such property; and

(C) 889 that the residual value, serviceability, and appearance of such property would not reflect unfavorably on the image of the United States and would justify the costs of packing, crating, handling, transportation, and other accessorial costs, and that the residual value at least equals the total of these costs. (d) 890 The Secretary of State, acting through the Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, is authorized to transfer to any friendly country, international organization, the American Red Cross, or other voluntary nonprofit relief agency described in subsection (a), Government-owned excess property made available under this section or section 608 in order to support activities carried out under part I of this Act which are designed to enhance environmental protection in foreign countries if the Secretary of State makes a written determination

886 Sec. 315 of Public Law 94-161 (89 Stat. 849) struck out "current" and inserted in lieu thereof "currently"; struck out "Such advances or reimbursements which are received under this section within one hundred and eighty days after the close of the fiscal year in which such services and commodities are delivered, may be credited to the current applicable appropriation, account, or fund of the agency concerned and shall be available for the purposes for which such appropriation, account, or fund is authorized to be used." and inserted in lieu thereof the last sentence in main body of subsec. (a), and paras. (1) and (2).

887 Sec. 522 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 959) redesignated subsec. (b) (as added by FA Act of 1968) as subsec. (c) and added a new subsec. (b).

888 Sec. 102 of the Reorganization Plan No. 2 of 1978 (43 F.R. 36037; 92 Stat. 3783) transferred all functions vested by statute in the Civil Service Commission to the Director of the Office of Personnel Management.

889 Sec. 129(1)(B) of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 (Public Law 99-93; 99 Stat. 419) inserted "except as provided in subsec. (d),”. Sec. 129(1)(A) of the Act also redesignated paras. (1), (2) and (3) as (A), (B) and (C).

890 Sec. 129(2) of the Foreign Relations Authorization Act, Fiscal Years 1986 and 1987 (Public Law 99-93; 99 Stat. 419) added subsec. (d).