
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2354]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
          SUBCHAPTER III--GENERAL AND ADMINISTRATIVE PROVISIONS
 
                       Part I--General Provisions
 
Sec. 2354. Procurement


(a) Limitations on procurement outside United States

    (1) Funds made available for assistance under this chapter may be 
used by the President for procurement--
        (A) only in the United States, the recipient country, or 
    developing countries; or
        (B) in any other country but only if--
            (i) the provision of such assistance requires commodities or 
        services of a type that are not produced in and available for 
        purchase in any country specified in subparagraph (A); or
            (ii) the President determines, on a case-by-case basis, that 
        procurement in such other country is necessary--
                (I) to meet unforeseen circumstances, such as emergency 
            situations, where it is important to permit procurement in a 
            country not specified in subparagraph (A); or
                (II) to promote efficiency in the use of United States 
            foreign assistance resources, including to avoid impairment 
            of foreign assistance objectives.

    (2) For purposes of this subsection, the term ``developing 
countries'' shall not include advanced developing countries.

(b) Purchases in bulk

    No funds made available under this chapter 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.

(c) Agricultural commodities or products thereof available for 
        disposition under Agricultural Trade Development and Assistance 
        Act of 1954

    In providing for the procurement of any agricultural commodity or 
product thereof available for disposition under the Agricultural Trade 
Development and Assistance Act of 1954, as amended [7 U.S.C. 1691 et 
seq.], for transfer by grant under this chapter to any recipient country 
in accordance with its requirements, the President shall, insofar as 
practicable and when in furtherance of the purposes of this chapter, 
authorize the procurement of such agricultural commodity only within the 
United States except to the extent that such agricultural commodity is 
not available in the United States in sufficient quantities to supply 
emergency requirements of recipients under this chapter.

(d) Marine insurance

    In providing assistance in the procurement of commodities in the 
United States, United States dollars shall be made available for marine 
insurance on such commodities where such insurance is placed on a 
competitive basis in accordance with normal trade practice prevailing 
prior to the outbreak of World War II: Provided, That in the event a 
participating country, by statute, decree, rule, or regulation, 
discriminates against any marine insurance company authorized to do 
business in any State of the United States, then commodities purchased 
with funds provided hereunder and destined for such country shall be 
insured in the United States against marine risk with a company or 
companies authorized to do a marine insurance business in any State of 
the United States.

(e) Parity for domestic commodities prior to use of funds outside United 
        States

    No funds made available under this chapter shall be used for the 
procurement of any agricultural commodity or product thereof outside the 
United States when the domestic price of such commodity is less than 
parity, unless the commodity to be financed could not reasonably be 
procured in the United States in fulfillment of the objectives of a 
particular assistance program under which such commodity procurement is 
to be financed.

(f) Commodity eligibility

    No funds authorized to be made available to carry out subchapter I 
of this chapter shall be used under any commodity import program to make 
any payment to a supplier unless the supplier has certified to the 
agency primarily responsible for administering such subchapter I, such 
information as such agency shall by regulation prescribe, including but 
not limited to, a description of the commodity supplied by him and its 
condition, and, on the basis of such information such agency shall have 
approved such commodity as eligible and suitable for financing under 
this chapter.

(g) Construction or engineering services; applicability to advanced 
        developing country

    (1) None of the funds authorized to be appropriated or made 
available for obligation or expenditure under this chapter may be made 
available for the procurement of construction or engineering services 
from advanced developing countries, eligible under the Geographic Code 
941, which have attained a competitive capability in international 
markets for construction services or engineering services.
    (2) Paragraph (1) does not apply with respect to an advanced 
developing country which--
        (A) is receiving direct economic assistance under part I of 
    subchapter I of this chapter or part IV of subchapter II of this 
    chapter, and
        (B) if the country has its own foreign assistance programs which 
    finance the procurement of construction or engineering services, 
    permits United States firms to compete for those services.

(Pub. L. 87-195, pt. III, Sec. 604, Sept. 4, 1961, 75 Stat. 439; Pub. L. 
89-583, pt. III, Sec. 301(b), Sept. 19, 1966, 80 Stat. 804; Pub. L. 90-
554, pt. III, Sec. 301(a), Oct. 8, 1968, 82 Stat. 963; Pub. L. 96-533, 
title VII, Sec. 705, Dec. 16, 1980, 94 Stat. 3157; Pub. L. 99-83, title 
XII, Sec. 1207, Aug. 8, 1985, 99 Stat. 278; Pub. L. 102-391, title V, 
Sec. 597, Oct. 6, 1992, 106 Stat. 1694.)

                       References in Text

    This chapter, referred to in subsecs. (a) to (c) and (e) to (g)(1), 
was in the original ``this Act'', meaning Pub. L. 87-195, Sept. 4, 1961, 
75 Stat. 424, as amended, known as the Foreign Assistance Act of 1961. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 2151 of this title and Tables.
    The Agricultural Trade Development and Assistance Act of 1954, as 
amended, referred to in subsec. (c), is act July 10, 1954, ch. 469, 68 
Stat. 454, as amended, which is classified principally to chapter 41 
(Sec. 1691 et seq.) of Title 7, Agriculture. For complete classification 
of this Act to the Code, see Short Title note set out under section 1691 
of Title 7 and Tables.


References to Subchapter I Deemed To Include Certain Parts of Subchapter 
                                   II

    References to subchapter I of this chapter are deemed to include 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II of this chapter, and references 
to subchapter II are deemed to exclude such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.


           References to Part I Deemed To Include Section 2293

    References to part I of subchapter I of this chapter are deemed to 
include a reference to section 2293 of this title. See section 
2293(d)(1) of this title.


                               Amendments

    1992--Subsec. (a). Pub. L. 102-391 amended subsec. (a) generally. 
Prior to amendment, subsec. (a) read as follows: ``Funds made available 
under this chapter may be used for procurement outside the United States 
only if the President determines that such procurement will not result 
in adverse effects upon the economy of the United States or the 
industrial mobilization base, with special reference to any areas of 
labor surplus or to the net position of the United States in its balance 
of payments with the rest of the world, which outweigh the economic or 
other advantages to the United States of less costly procurement outside 
the United States, and 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.''
    1985--Subsec. (g). Pub. L. 99-83 designated existing provisions as 
par. (1) and added par. (2).
    1980--Subsec. (e). Pub. L. 96-533, Sec. 705(a), authorized use of 
funds for procurement of a commodity outside the United States when the 
commodity to be financed could not reasonably be procured in the United 
States in fulfillment of objectives of a particular assistance program 
under which such commodity procurement is to be financed.
    Subsec. (g). Pub. L. 96-533, Sec. 705(b), added subsec. (g).
    1968--Subsec. (f). Pub. L. 90-554 added subsec. (f).
    1966--Subsec. (c). Pub. L. 89-583, Sec. 301(b)(1), struck out 
``surplus'' before ``agricultural commodity'' in three places and 
inserted ``or products thereof available for disposition under the 
Agricultural Trade Development and Assistance Act of 1954, as amended,'' 
after ``commodity'' where first appearing.
    Subsec. (e). Pub. L. 89-583, Sec. 301(b)(2), added subsec. (e).


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-83 effective Oct. 1, 1985, see section 1301 
of Pub. L. 99-83, set out as a note under section 2151-1 of this title.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2151f, 2152b, 2293 of this 
title.
