[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR201.60]

[Page 753]
 
                       TITLE 22--FOREIGN RELATIONS
 
            CHAPTER II--AGENCY FOR INTERNATIONAL DEVELOPMENT
 
PART 201--RULES AND PROCEDURES APPLICABLE TO COMMODITY TRANSACTIONS FINANCED BY USAID--Table of Contents
 
                       Subpart G--Price Provisions
 
Sec. 201.60  Purpose and applicability of this subpart.


    This subpart prescribes rules relating to prices, discounts, 
commissions, credits, allowances, and other payments. These rules shall 
be observed in the procurement of commodities and commodity-related 
services financed under this part. The rules implement and supplement 
the requirements of the Act relating to prices in such procurement. The 
general purpose of these rules is to assure the prudent use of USAID 
funds.
    (a) Statutory price limitations. (1) Section 604(a) of the Act 
provides inter alia that funds made available under this Act may be used 
for procurement outside the United States only if the price of any 
commodity procured in bulk is lower than the market price prevailing in 
the United States at the time of procurement adjusted for differences in 
the cost of transportation to destination, quality, and terms of 
payment.
    (2) Section 604(b) of the Act provides that 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.
    (b) Transactions covered. The rules and conditions prescribed by 
this subpart apply to all USAID-financed transactions subject to this 
regulation, whether or not the commodities are purchased in bulk.
    (c) Compliance. Compliance with this subpart G and with any 
additional price requirement contained in the implementing document 
shall be a condition to the financing by USAID of procurement 
transactions under this part. Post-audit of transactions will be made by 
USAID to determine whether there has been such compliance.