(limited to

single procurements of $250,000 or less).

Administrator or his Deputy (single procurements in excess of $250,000).

group of countries or areas as listed in the Geographic Code Book, issued by the Statistics and Reports Division, AID, Washington, and filed with the AID Manual as Manual Order 302.1. Four principal codes are referred to in this subpart and standard forms in current use:

000-The United States, as defined in AIDPR 7-6.5201-6.

899-Any area or country in the Free World, excluding the cooperating country itself when used as a possible source of AID-financed purchases. 901-Any area or country in the Free World, excluding the cooperating country itself and the developed countries listed in AIDPR 7-6.5202.

935-Any area or country in the Free World, including the cooperating country itself.

"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.

§ 7-6.5201-6 United States.

"United States" means the States, the District of Columbia, Puerto Rico, American Samoa, the Canal Zone, the Virgin Islands, Guam, Ryukyu Islands under U.S. control, any areas subject to the complete sovereignty of the United States, and Trust Territories administered by the United States, including the Pacific Islands.

§ 7-6.5202 Background.

AID policy on foreign procurements has a number of roots. These include the Foreign Assets Control and Cuban Assets Control Regulations, issued by the Treasury Department, which establishes policies for the barring of procurement from sources outside the Free

World. They are published in Parts 500 and 515 of Title 31 of the Code of Federal Regulations. In addition, section 604(a) of the Foreign Assistance Act, as implemented by a Presidential determination of October 18, 1961, as amended (26 F.R. 10543, 27 F.R. 7603), limits procurement, from these developed countries:

Australia, Austria, Belgium, Canada, Denmark, France, Germany (Federal Republic), Italy, Japan, Luxembourg, Monaco, Netherlands, New Zealand, Norway, South Africa, Spain, Sweden, Switzerland, and the United Kingdom.

Subsequent Presidential directives require that no dollar be sent abroad that can be sent instead in the form of U.S. goods and services.

§ 7-6.5203 A.I.D. policy.

Commodities procured with U.S. dollars rather than with local currencies for foreign assistance projects will be of U.S. source and shall have been mined, grown, or through manufacturing, processing, or assembly produced in the United States. Exceptions to this policy may be made in accordance with M.O. 1414.1.1.

[33 F.R. 4253, Mar. 7, 1968]

§ 7-6.5204 Commodities procured under supply contracts.

The following certification must be attached to or endorsed on each invoice presented for payment under all supply contracts for procurement in the United States, and any supply contract which exceeds $2,500 for procurement outside the United States to which this subpart applies and must be signed by the supplier or his authorized representative:

I (We) hereby certify that the "source" (as defined by AID) of the commodities listed on the attached invoice or invoiced herein is as shown below and that such invoiced commodities were mined, grown, or produced in a country or countries covered by AID Geographic Code I (We) further certify that, to the best of my (our) information and belief, with respect to any produced commodity invoiced, (a) the cost of components (delivered to point of production) acquired by the producer of the commodity in the form in which imported into the country of production from Free World countries other than countries covered by AID Geographic Code does not exceed in total cost 10 percent of

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the lowest price (excluding the cost of ocean transportation and marine insurance) at which I (we) make the commodity available for export sale (whether or not financed by AID), and (b) the produced commodity does not contain any components (1) imported from countries not included under AID Geographic Code 899 or (11) prohibited by the Foreign Assets Control (FAC) or Cuban Assets Control (CAC) Regulations of the U.S. Treasury Department, or (c) if AID has excepted the commodity from any of the foregoing requirements, the commodity meets all conditions specified by AID in connection with such exception. I (We) understand that a false certification made herein may be punishable by law.

Source of commodities

Authorized signature of supplier

§ 7-6.5205 Commodities procured under service contracts.

U.S. dollar funded contracts for the performance of services will require a U.S. source for all commodities to be delivered under the contract, in whatever form and for all commodities the cost of which (including charges for use) is subject to reimbursement in U.S. dollars. With respect to any such commodities which cost more than $2,500 to procure or acquire (including charges for use), they shall have been mined, grown, or through manufacturing, processing, or assembly produced in the United States and an appropriate certificate will be required. For cost reimbursement contracts, the certification requirement is generally met by the Contractor furnishing suppliers' certificates, as provided in the contract. A form for such certification is set out in Appendix A to AID Regulation 1 published in Part 201, Title 22 of the Code of Federal Regulations, and reproduced in AID Manual Order 1456.1. If (a) the effective use of printed or audiovisual teaching materials depends upon their being in the local lan(b) guage, and such materials are intended for technical assistance projects or activities financed by AID in whole or in part, and (c) other funds, including U.S.-owned or controlled local currencies, are not readily available to finance the procurement of such materials, local language versions may be procured from the following sources, in order of pref

erence:

Countries selected from Geographic Code: (1) 000 United States, including the AID Regional Technical Aid Centers.

The relevant code shall be stated in the contract.

[32 F.R. 8468, June 14, 1967, as amended at 33 F.R. 4253, Mar. 7, 1968; 34 F.R. 7076, Apr. 30, 1969]

§ 7-6.5206 AID policy and Buy American Act.

In the case of procurements which are made solely for use within the United States and for which standard Government forms, such as Standard Form 32 (FPR 1-16.901-32), are used, the standard Buy American provision need not be supplemented or superseded by a clause or clauses implementing the more stringent AID policy. The purpose of this exception is to permit uniformity among Federal agencies procuring for domestic