42712 Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Proposed Rules

required reserve balance will be

imposed by the Reserve Bank on the

correspondent maintaining the account.

(iii) Each correspondent is required to

maintain detailed records for each of its

respondents in a manner that permits

Federal Reserve Banks to determine

whether the respondent has provided a

sufficient required reserve balance to

the correspondent. A correspondent

passing through a respondent’s reserve

balance shall maintain records and

make such reports as the Board or

Reserve Bank requires in order to insure

the correspondent’s compliance with its

responsibilities for the maintenance of a

respondent’s reserve balance. Such

records shall be available to the Reserve

Banks as required.

(iv) The Federal Reserve Bank may

terminate any pass-through relationship

in which the correspondent is deficient

in its recordkeeping or other

responsibilities.

(v) Interest paid on supplemental

reserves (if such reserves are required

under § 204.6) held by a respondent will

be credited to the account maintained

by the correspondent.

§ 204.9 [Amended]

3. In section 204.9, the reference in

paragraph (b) to ‘‘§ 204.3(a)(3)’’ is

revised to read ‘‘§ 204.3(a)(2)’’.

By order of the Board of Governors of the

Federal Reserve System, August 4, 1997.

William W. Wiles,

Secretary of the Board.

[FR Doc. 97–20957 Filed 8–7–97; 8:45 am]

BILLING CODE 6210–01–P

INTERNATIONAL DEVELOPMENT

COOPERATION AGENCY

Agency for International Development

22 CFR Part 201

[AID Reg. 1]

RIN 0412–AA–34

Rules and Procedures Applicable to

Commodity Transactions Financed by

USAID: Inspection and Price

Provisions

AGENCY: Agency for International

Development, IDCA.

ACTION: Proposed rule.

SUMMARY: The U.S. Agency for

International Development (USAID)

proposes to amend the regulation to

implement the requirement for

preshipment inspection of commodities

and to simplify the current rules on

maximum prices for commodities.

USAID previously employed post-audit

procedures to assure that commodities

and related services financed under its

programs were not over priced by

suppliers. The purpose of preshipment

inspection is to complete the price

review prior to shipment, rather than

after the fact, and when determined

necessary, to complete a physical

inspection of the commodities being

financed. The purpose of the proposed

amendment to the price rules for

commodities is to make it easier for

suppliers to understand and bring it into

line with commercial practices used by

preshipment inspection firms that will

be contracted to carry out the

preshipment inspection program.

DATES: Comment Deadline: October 7,

1997.

ADDRESSES: Send comments to Kathleen

J. O’Hara, Office of Procurement Policy

Division (M/OP/PP), USAID, Room 1600

A, Washington, DC 20523–1435.

FOR FURTHER INFORMATION CONTACT:

Kathleen J. O’Hara, Office of

Procurement, Procurement Policy

Division (M/OP/PP), USAID, Room 1600

A, Washington, DC 20523–1435.

Telephone (703) 875–1534, facsimile

(703) 875–1243.

SUPPLEMENTARY INFORMATION: As part of

USAID’s re-engineering process, a

decision has been taken to revise the

procedure it uses to assure that the

prices paid to suppliers under

transactions financed by Commodity

Import Programs are fair and reasonable.

Currently, this is being done through a

post-audit function within USAID. The

purpose of this proposed amendment is

to implement a preshipment inspection

program which would essentially

replace the post-audit function. The

preshipment inspection services will be

carried out by a private contractor,

under a contract with USAID.

The specific changes being proposed

would add a definition for

‘‘preshipment inspection,’’ amend the

coverage on responsibilities of importers

and suppliers to add requirements

concerning preshipment inspection, add

a new § 201.48 establishing the

requirement for preshipment inspection,

and add the requirement for a ‘‘clean’’

inspection report to the list of

documents that the supplier must

furnish in order to receive payment

from USAID in § 201.52(a).

Preshipment inspection will include a

price review, and USAID proposes to

revise its rules on maximum prices for

commodities to be more in line with the

commercial practices used by the

preshipment inspection firms. The basic

prevailing market price test would be

reformulated; the method for

constructing an allowable price in the

absence of comparable sales in

§ 201.63(e) would be removed since it

does not agree with commercial

practices established between

preshipment inspection firms and the

World Trade Organization; and the

supplier’s comparable export price test

in § 201.63 (c) would also be removed.

Various changes in subpart G, Price

Provisions, implement the new rules.

USAID has determined that this

proposed rule is not a significant

regulatory action under Executive Order

12866. The rule has been reviewed in

accordance with the requirement of the

Regulatory Flexibility Act. USAID has

determined that the proposed rule will

not have a significant economic impact

on a substantial number of small

entities, and, therefore, a Regulatory

Flexibility Analysis is not required. The

additional documentation requirement

will be submitted to OMB for approval

as required by the Paperwork Reduction

Act.

List of Subjects in 22 CFR Part 201

Administrative practice and

procedure, Commodity procurement—

foreign relations.

For the reasons set out in the

preamble, 22 CFR part 201 is proposed

to be amended as follows:

1. The authority citation continues to

read as follows:

Authority: 22 U.S.C. 2381.

2. Section 201.01 is amended to add

a new paragraph (dd) as follows:

§ 201.01 Definition.

* * * * *

(dd) Preshipment inspection means a

review by the designated USAID

contractor of all costs associated with a

transaction and, where applicable, a

physical inspection of the commodity,

including packaging and packing.

3. Section 201.21 is amended by

removing ‘‘and, where appropriate,’’

from the end of paragraph (c); by

removing the period from the end of

paragraph (d) and adding ‘‘; and’’ in its

place; and by adding a new paragraph

(e) as follows:

§ 201.21 Notice to supplier.

* * * * *

(e) The USAID requirement in

§ 201.31(j) for preshipment inspection,

when applicable.

4. Section 201.31 is amended to add

a new paragraph (j) as follows:

§ 201.31 Suppliers of commodities.

* * * * *

(j) Preshipment inspection. As

applicable, the supplier shall be

responsible for coordinating the

preshipment inspection of the
Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Proposed Rules 42713

commodity with the contractor

designated by USAID. In the case of a

physical inspection of the commodity,

the supplier shall make the commodity

available to the contractor’s inspector

and, when applicable, in a condition for

operational testing. The supplier shall

provide reasonable assistance to the

inspector in completing the inspection,

to include, but not limited to,

unpacking, packing, weighing, etc. Any

costs associated with making the

commodity available for inspection will

be for the account of the supplier.

5. Section 201.48 is added to read as

follows:

§ 201.48 Preshipment inspection of

commodities.

For each shipment under a purchase

contract with an f.o.b. value in excess of

$100,000, a preshipment documentary

inspection is required. For each

shipment under a purchase contract

with an f.o.b. value in excess of

$1,000,000, a full preshipment

inspection, to include a physical

inspection, is required unless USAID

determines in writing to limit the

inspection to a review of the

documentation for the transaction.

USAID may also require documentary

and/or physical inspections in other

situations.

6. Section 201.52 is amended to

remove ‘‘(8)’’ in paragraph (a),

introductory text, and add ‘‘(9)’’ in its

place and to add a new paragraph (a)(9)

to read as follows:

§ 201.52 Required documents.

(a) * * *

(9) Pre-shipment inspection report.

When required in the letter of credit,

direct letter of commitment, or other

payment document, one signed original

of the ‘‘clean’’ inspection report, issued

by the inspection firm designated by

USAID to undertake preshipment

inspections.

* * * * *

7. Section 201.60 is amended by

revising paragraph (c) as follows:

§ 201.60 Purpose and applicability of this

subpart.

* * * * *

(c) Compliance. Compliance with this

subpart G and with any additional price

requirement contained in the

implementing document shall be a

condition to the financing by USAID of

procurement transactions under this

part. Preshipment inspection of the

commodities will include a price review

for compliance. Additionally, USAID

may post-audit transactions to

determine that there has been

compliance.

8. Section 201.63 is amended by

removing paragraphs (c), (d) and (e); by

redesignating paragraphs (f) and (g) as

paragraphs (c) and (d), respectively; by

removing ‘‘(f)(1)’’ from the newly

redesignated paragraph (c)(2) and

adding ‘‘(c)(1)’’ in its place, and by

revising paragraphs (a) and (b) as

follows:

§ 201.63 Maximum prices for commodities.

(a) Prevailing export market price. (1)

The purchase price of a commodity

shall not exceed the prevailing export

price range in the country of supply for

comparable goods sold under

comparable terms of sale. If there are no

export sales of comparable goods, then

the purchase price shall not exceed the

prevailing domestic price range in the

country of supply for comparable goods,

adjusted upward or downward by the

appropriate export differential. The

prevailing price range, whether export

or domestic, shall be determined

through analysis of prices during a

reference period prior to the date the

purchase price for the USAID-financed

transaction was fixed. The analysis

identifies the applicable range of prices

which the ex-factory or f.o.b. price of

the commodity shall not exceed.

(2) The purchase price of a

commodity from a source outside the

United States shall also not exceed the

prevailing export price range in the

United States for comparable goods sold

under comparable terms of sale, as

determined in paragraph (a)(1) of this

section, adjusted for differences in the

cost of transportation to destination

when applicable.

(b) Paragraph (a) of this section shall

not apply to the purchase price:

(1) In any sale under formal

competitive bid procedures; or

(2) In any sale of a commodity

generally traded on an organized

commodity exchange.

* * * * *

9. In § 201.64, paragraph (a) is revised

to read as follows:

§ 201.64 Application of the price rules to

commodities.

(a) Calculation of commodity prices

on a common basis. In testing whether

the purchase price of a commodity

complies with the requirements of

§ 201.63(a) it is necessary to insure that

the price being tested as well as the

prices being used as a test or

measurement are calculated on the basis

of delivery alongside or on board the

vessel or other export conveyance.

Therefore, in addition to the price of the

commodity at an internal point in the

source country, prices will include

transportation from that point to the

port of export in the source country and,

to the extent not already included in the

price at the internal point, inspection,

export packing, forwarder’s fees at

customary rates, the cost of placing the

commodities on board the vessel or

export conveyance (unless this cost is

covered in the export freight), and other

necessary costs customary in the trade.

§ 201.64 [Added]

9. In § 201.64, paragraph (b)(1) is

amended by removing ‘‘(c), (d) and (e),’’

and paragraph (c) is amended by

removing ‘‘(f)(1)’’, ‘‘(f)(1)(i)’’ and ‘‘(f)(2)’’

from wherever they appear in and

adding ‘‘(c)(1)’’, ‘‘(c)(1)(i)’’ and ‘‘(c)(2)’’,

respectively, in their places.

Dated: June 26, 1997.

Marcus L. Stevenson,

Procurement Executive.

[FR Doc. 97–20718 Filed 8–7–97; 8:45 am]

BILLING CODE 6116–71–M

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 914

[SPATS No. IN–139–FOR]

Indiana Abandoned Mine Land

Reclamation Plan

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.

ACTION: Proposed rule; public comment

period and opportunity for public

hearing.

SUMMARY: OSM is announcing receipt of

a proposed amendment to the Indiana

abandoned mine land reclamation plan

(hereinafter referred to as the ‘‘Indiana

plan’’) under the Surface Mining

Control and Reclamation Act of 1977

(SMCRA). The proposed amendment

consists of revisions to the Indiana plan

pertaining to procedures for ranking and

selecting reclamation projects,

coordination with other programs,

reclamation of private land, public

participation policies, organization of

designated agency, Applicant/Violator

System (AVS) requirements, flora and

fauna of southwestern Indiana, and the

emergency reclamation program. The

amendment is intended to revise the

Indiana plan to be consistent with the

corresponding Federal regulations and

SMCRA.

DATES: Written comments must be

received by 4:00 p.m., e.s.t., September

8, 1997. If requested, a public hearing

on the proposed amendment will be