ATTENTION SHIPPERS, THEIR FREIGHT FORWARDERS, AND OCEAN TRANSPORTATION COMPANIES
March 24, 2005
Effective Immediately -
In accordance with USAID Regulation 11 (Title 22 - Foreign Relations, Chapter II, Part 211, section 211.4 - Availability and Shipment of Commodities) ocean freight costs paid to vessel owners by cooperating sponsors are reimbursable. Within the ocean freight costs, USAID will reimburse cooperating sponsors up to a maximum of 2½ percent commission, paid by vessel owners to freight forwarders, as a result of booking PL 480, Title II cargo. Any fees or payments from vessel owners to cooperating sponsors or their agents, in excess of the 2½ percent maximum rate, will not be reimbursed by USAID.
In that regard, cooperating sponsor outport agent services or charterer protection agent services are considered to be the responsibility of cooperating sponsors or their freight forwarder. Title II ocean freight charter party agreements or bookings which require vessel owners to reimburse freight forwarders for these, or similar, services are effectively increasing the total commission payable under the freight agreement. Should the combined commission payments for any charter or booking exceed the maximum permitted commission, USAID will only reimburse the cooperating sponsor the maximum commission permitted by regulation.
Any inquiries regarding this notice should be directed to this office.
John Abood
Contracting Officer
Office of Acquisition and Assistance
U.S. Agency for International Development
Phone (202) 712-1779
Fax (202) 216-3051
