(f) The term "program" includes any program, project, or activity for the provision of services, financial aid, or other benefits to individuals whether provided through employees of the recipient of Federal financial assistance or provided by others through contracts or other arrangements with the recipient.

(g) The term "recipient" means any State, political subdivision of any State, or instrumentality of any State or political subdivision, any public or private agency, institution, or organization, or other entity, or any individual, in any State, to whom Federal financial assistance is extended directly or through another recipient, for any program, including any successor, assign, or transferee thereof, but such term does not include any ultimate beneficiary under any such program.

(h) The term "primary recipient" means any recipient which is authorized or required to extend Federal financial assistance to another recipient for the purpose of carrying out a program.

(i) The term "applicant" means one who submits an application, request, or

plan required to be approved by a responsible Department official, or by a primary recipient, as a condition to eligibility for Federal financial assistance, and the term "application" means such an application, request, or plan.

APPENDIX A

PROGRAMS AND ACTIVITIES TO WHICH THIS PART

APPLIES

1. Mutual understanding between people of the United States and the people of other countries by educational and cultural exchange studies, research, instruction and other educational activities-cultural exchanges (Mutual Educational and Cultural Exchange Act of 1961-75 Stat. 527-538).

2. Center for Cultural and Technical Interchange Between East and West-grant to State of Hawaii (Public Law 86-472, 74 Stat. 141).

3. Assistance to or in behalf of refugees designated by the President (Migration and Refugee Assistance Act of 1962-76 Stat. 121124).

4. Donations of certain foreign language tapes and other training material to public and private institutions (Regulations of Administrator of General Services relating to surplus property-41 CFR 101-6.2).

As used in this part, the following terms shall have the meanings indicated below:

(a) The Act. "The Act" means the Foreign Assistance Act of 1961, as amended from time to time.

(b) A.I.D. "A.I.D." means the Agency for International Development or any successor agency, including, when applicable, each US AID.

(c) A.I.D. geographic code. “A.I.D. geographic code" means a code in the A.I.D. Geographic Code Book which designates a country, a group of countries, or an otherwise defined area. (d) AID/W. "AID/W" means the A.I.D. in Washington, D.C. 20523, including any office thereof.

(e) Approved applicant. "Approved applicant" means the person or organization designated by the borrower/ grantee to establish credits with banks in favor of suppliers or to instruct banks to make payments to suppliers, and includes any agent acting on behalf of such approved applicant.

(f) Bank "Bank" means a banking institution organized under the laws of the United States, or any State, territory, or possession thereof, or Puerto Rico or the District of Columbia.

(g) Borrower/grantee. "Borrower/ grantee" means the government of any cooperating country, or any agency, instrumentality or political subdivision thereof, or any private entity to which A.I.D. directly makes funds available by loan or grant.

(h) Commodity. "Commodity" means any material, article, supply, goods, or equipment.

(i) Commodity-related

services.

"Commodity-related services" means delivery services and/or incidental services.

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(j) Cooperating country. “Cooperating country" means the country receiving the A.I.D. assistance subject to provisions of this Part 201.

(k) Delivery. "Delivery" means the transfer to, or for the account of, an importer of the right to possession of a commodity, or the rendering to, or for the account of, an importer of any commodity-related service.

(1) Delivery services. "Delivery services" means any service customarily performed in a commercial export transaction which is necessary to effect a physical transfer of commodities from the country of export to the cooperating country. Examples of such services are the following: Export packing, local drayage in the source country (including waiting time at the dock), ocean and other freight, loading, heavy lift, wharfage, tollage, switching, dumping and trimming, lighterage, insurance, commodity inspection services, and services of a freight forwarder. "Delivery services" may also include work and materials necessary to meet A.I.D. marking requirements.

(m) Implementing document. "Implementing document" means any document issued by A.I.D. which authorizes the use of A.I.D. funds for the procurement of commodities and/or commodityrelated services and which specifies conditions which will apply to such procurement.

(n) Importer. "Importer" means any person or organization, governmental or otherwise, in the cooperating country who is authorized by the borrower/ grantee to use A.I.D. funds under this Regulation for the procurement of commodities, and includes any borrower/ grantee who undertakes such procurement.

(0) Incidental services. "Incidental services" means the installation or erection of A.I.D.-financed equipment, or the training of personnel in the maintenance, operation and use of such equipment.

(p) Purchase contract. “Purchase contract" means any contract or similar arrangement under which a supplier furnishes commodities and/or commodityrelated services financed under this part.

(q) Source. "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.

(r) Supplier. "Supplier" means any person or organization, governmental or otherwise, who furnishes commodities and/or commodity-related services financed under this Part 201.

(s) Supplier's Certificate. "Supplier's Certificate" means AID Form 282, "Supplier's Certificate and Agreement with the Agency for International Development", including the "Invoice-and-Contract Abstract" on the reverse of such form (Appendix A to this Part 201), or any substitute form which may be prescribed in the letter of commitment, request for the opening of a special letter of credit, or other pertinent implementing document.

(t) United States. "United States" means the United States of America, any State, territory or possession thereof, Puerto Rico and the District of Columbia.

(u) US AID. "US AID" means the A.I.D. mission or representative to any cooperating country.

(v) [Reserved]

(x) Commodity Approval Application. "Commodity Approval Application" means the Application for Approval by the Agency for International Development of Commodity Eligibility (A.I.D. Form 11) which appears as Appendix E to this Part 201.

(y) Schedule B. "Schedule B" means "Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States" issued and amended from time to time by the U.S. Bureau of the Census, Department of Commerce, and published in 15 CFR 30.92.

[A.I.D. Reg. 1, 32 F.R. 7672, May 25, 1967, as amended at 33 F.R. 6769, May 3, 1968; 33 F.R. 12139, Aug. 28, 1968; 34 F.R. 9418, June 17, 1969; 35 F.R. 19754, Dec. 24, 1970]

§ 201.02 Scope.

The appropriate implementing document will indicate whether and the extent to which this part shall apply to the procurement of commodities or commodity-related services or both.

(a) The borrower/grantee is responsible for compliance with the applicable provisions of this part by importers and suppliers and for assuring that importers and suppliers are informed of the extent to which this part applies.

(b) Subpart B sets forth conditions governing the eligibility for A.I.D.-financing the transactions covering commodities and commodity-related services.

(c) Subpart C prescribes procedures which importers shall follow in purchasing commodities.

(d) Subpart D sets forth the responsibilities of suppliers.

(e) Subpart E contains provisions relating to

(1) The diversion of shipments and the vesting in A.I.D. of title to commodities.

(2) The effect of termination or modification of any loan, grant or implementing document; and

(3) A.I.D. audit and inspection rights.

(f) Subpart F describes the financing process and prescribes the documents which shall be submitted to banks and to A.I.D.

(g) Subpart G contains the price tests which shall be met and limitations on amounts and types of payments which A.I.D. will finance.

(h) Subpart H defines the rights and responsibilities of banks.

(i) Subpart I sets out the rights and remedies which are reserved to A.I.D. and provides for the waiver under special circumstances of the provisions of this part. The subpart also contains necessary transitory provisions.

(j) Unless otherwise indicated, references in this part to subparts or to sections relate to subparts or sections of this Part 201.

Subpart B-Conditions Governing the Eligibility of Procurement Transactions for A.I.D. Financing

§ 201.10 Purpose.

This subpart sets forth requirements for A.I.D. financing applicable to trans