[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: 22CFR228.51]

[Page 1046]
 
                       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. 228.51  Commodities.

    (a) Waiver criteria. Any waiver must be based upon one of the 
criteria listed in this section. Waivers to Geographic Code 899 or Code 
935 which are justified under paragraph (a)(2) or (3) of this section 
may only be authorized on a case-by-case basis. A waiver may be 
authorized when:
    (1) A commodity required for assistance is of a type that is not 
produced in or available for purchase in the United States; in addition, 
for waivers to any country or Geographic code beyond Code 941 and the 
cooperating country, the commodity is of a type that is not produced in 
or available for purchase in any country in Code 941 or the cooperating 
country.
    (2) It is necessary to permit procurement in a country not otherwise 
eligible in order to meet unforeseen circumstances, such as emergency 
situations.
    (3) It is necessary to promote efficiency in the use of United 
States foreign assistance resources, including to avoid impairment of 
foreign assistance objectives.
    (4) For waivers to authorize procurement from Geographic Code 941 or 
the cooperating country:
    (i) For assistance other than commodity import programs, when the 
lowest available delivered price from the United States is reasonably 
estimated to be 50 percent or more higher than the delivered price from 
a country or area included in Geographic Code 941 or the cooperating 
country.
    (ii) For assistance other than commodity import programs, when the 
estimated cost of U.S. construction materials (including transportation 
and handling charges) is at least 50 percent higher than the cost of 
locally produced materials.
    (iii) For commodity import programs or similar sector assistance, an 
acute shortage exists in the United States for a commodity generally 
available elsewhere.
    (iv) Persuasive political considerations.
    (v) Procurement in the cooperating country would best promote the 
objectives of the foreign assistance program.
    (vi) Such other circumstances as are determined to be critical to 
the success of project objectives.
    (b) Additonal requirements. A waiver to authorize procurement from 
outside the United States of agricultural commodities, motor vehicles, 
or pharmaceuticals (see Sec. 228.13, ``Special source rules requiring 
procurement from the United States,'') must also meet requirements 
established in USAID directives on commodity eligibility. (USAID's 
Automated Directives System Chapter 312.)
    (c) Any individual transaction not exceeding $5,000 (not including 
transportation) does not require a waiver. In no event, however, shall 
procurement be from a non-Code 935 source.

[61 FR 53616, Oct. 15, 1996; 62 FR 314, Jan. 3, 1997, as amended at 63 
FR 38751, July 20, 1998]

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