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Floor coverings, grass and straw, including Japan.

sea-grass mats and squares.

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Jade, stones, cut but not set and suitable for None.

use in jewelry.

Menthol, natural and synthetic (other than Brazil.

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6.401-4 Certain Supplies from Hong Kong, Macao, and Soviet-Controlled Areas. The following supplies, however processed, which are or were located in or transported from or through Hong Kong, Macao, or any Sovietcontrolled area (see 6.401-2), shall be presumed to have originated from Soviet-controlled (Chinese) sources, and shall not be acquired for public use unless such supplies have been lawfully imported into the United States, its possessions, or Puerto Rico:

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PURCHASES FROM SOVIET-CONTROLLED AREAS

Lace and lace articles
Linen manufactures, excluding wear-
ing apparel other than wearing
apparel made in whole or in part
of brocade, embroidery, or lace
Ores and metals:

Antimony

Bismuth

Quicksilver

Molybdenum

Tin

Tungsten

Peanuts and peanut products
Poultry, including pigeons, frozen or
otherwise prepared or preserved

Ramie
Rugs

Sea-grass and straw manufactures,
excluding floor covering
Sesame, oil and seed

Shoes, leather-soled with non-leather
upper, except ladies' high-heel shoes
Silk:

Raw and manufactures other than Western style suits and Indian saris

Waste

Skins, deer and goat

Stones, semiprecious, and manufacture thereof, including jewelry Tapestries, including needlework tapestries

Tapioca, including tapioca flour

6.401-5 Supplies from North Korea or China. All supplies, however processed, which are or were located in or transported from or through North Korea or China (as described in 6.401-2) shall be presumed to have originated from Soviet-controlled (Chinese) sources, and shall not be acquired for public use unless such supplies have been lawfully imported into the United States, its possessions, or Puerto Rico.

6.402 Exceptions.

(a) Exceptions from the general policy will be made only in accordance with (b) and (c) below. Moreover, such exceptions shall be made only in cases of emergency, or where supplies are not available from any other source and a substitute supply is not acceptable, or in other unusual situations.

(b) Supplies other than those whose procurement is prohibited by 6.401-3, 6.401-4, and 6.401-5, originating from sources within Soviet-controlled areas (see 6.401-2), may be procured only when:

(i) the purchase is for $2,500 or less and the contracting officer determines there is a need for an exception in accordance with the procedures set forth in (d)(1)(i) or (d)(2)(i) below; or

(ii) the purchase is for more than $2,500 and an exception is approved by the Administrator in accordance with the procedures set forth in (d)(1)(ii) or (d)(2) (ii) below.

(c) Supplies whose procurement is prohibited by 6.401-3, 6.401-4, and 6.401-5 may be acquired if the acquisition is approved by an authorized Treasury Department representative. Where a request for such approval has been denied by a Treasury Department representative, an appeal may be made by the Administrator to the Secretary of the Treasury when unusual circumstances appear to warrant a departure from the general policy. Such appeals, with all pertinent information, shall be submitted through the Procurement Office, NASA Headquarters (Code KDP-1).

NASA PROCUREMENT REGULATION

16.402

FOREIGN PURCHASES

(d) Procedures.

(1) When it is proposed to procure supplies originating from sources within Soviet-controlled areas for public use within the United States (as defined in 6.101 (c)), or when a construction contractor proposes to use such supplies in the performance of a contract for construction within the United States (as defined in 6.201-1), the following procedures shall be followed:

(i) If the proposed procurement of such supplies does not exceed $2,500, the contracting officer shall make a determination of nonavailability, as authorized in 6.103-2 or 6.203-1. This determination shall include, in addition to the findings outlined in the determination format set forth in 6.103-2(c), a finding to the effect that there is no known item or items from sources within non-Soviet-controlled areas which can be used as a reasonable substitute. Such determination shall be made a part of the contract file.

(ii) If the proposed procurement of such supplies exceeds $2,500, the contracting officer shall prepare a determination of nonavailability for signature by the Administrator. The format of the determination set forth in 6.103-2(c) shall be used and such determination shall include, as an additional finding, a statement to the effect that there is no known item or items from sources within nonSoviet-controlled areas which can be used as a reasonable substitute. Such determination shall be forwarded, in triplicate, to the Office of Procurement.

(2) When it is proposed to procure supplies originating from sources within Soviet-controlled areas for public use elsewhere than within the United States (as defined in 6.101 (c)), or when a construction contractor proposes to use such supplies in the performance of a contract for construction elsewhere than within the United States, the following procedures shall be followed:

(i) If the proposed procurement of such supplies does not exceed $2,500, the contracting officer shall make a written finding setting forth the unusual situation, such as an emergency or the nonavailability of acceptable substitute supplies of domestic or non-Soviet-controlled area origin, which justifies the procurement of supplies originating in a Soviet-controlled area. Such finding shall be made a part of the contract file.

(ii) If the proposed procurement of such supplies exceeds $2,500, the contracting officer shall make a written finding, as described in (d)(2)(i) above. Such finding shall be forwarded, in triplicate, to the Procurement Office, NASA Headquarters for approval by the Administrator of the exception authorizing the proposed procurement.

PURCHASES FROM SOVIET-CONTROLLED AREAS

6.403 Contract Clause.

(a) Except as provided in (b) below, in contracts for supplies, services, or construction, where acceptance is to take place outside the United States, its possessions, or Puerto Rico, the Soviet-controlled areas listed in 6.401-2 shall be set forth in the contract schedule and the following clause shall be included in the contract:

SOVIET-CONTROLLED AREAS (SEPTEMBER 1962)

(a) The Contractor shall not acquire for use in the performance of this contract any supplies or services originating from sources within Soviet-controlled areas, as listed in the Schedule of this contract, or transported from or through Hong Kong or Macao, without the written approval of the Contracting Officer.

(b) The Contractor agrees to insert the provisions of this clause, including this subparagraph (b) and the Soviet-controlled areas listed in the Schedule, in all subcontracts hereunder.

(b) The requirements of (a) above do not apply to purchase orders for small purchases (see Part 3, Subpart 6, of this Regulation) when there is other reasonable assurance of compliance with the policy set forth in this Subpart.

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