The source of all commodities financed with Federal program funds appropriated under the Foreign Assistance Act of 1961, as amended, shall be Code 937 (unless Code 935 or 110 are designated in the implementing instrument), except for essential medical supplies purchased to address the COVID-19 pandemic, the source of which must be approved by USAID prior to purchase unless otherwise directed by USAID. Procurements of agricultural commodities, motor vehicles, and pharmaceuticals must also comply with the special procurement rules in §228.19. Recipients and contractors are prohibited from engaging suppliers of commodities in an authorized country to import commodities from a country outside of the authorized principal geographic codes for the purposes of circumventing the requirements of this rule. Any violation of this prohibition will result in the disallowance by USAID of the cost of the procurement of the subject commodity.

[85 FR 67445, Oct. 23, 2020]