---
kind: "section"
citation: "22 C.F.R. § 201.46"
title: "22"
number: "201.46"
heading: "Compensation to supplier if shipment is prohibited."
url: "https://uscodex.org/cfr/22/201.46"
---

# §201.46. Compensation to supplier if shipment is prohibited.

- (a) **Payment to supplier.** USAID shall make appropriate payment to a supplier for the value of USAID-financed commodities available for immediate shipment from the United States if all the following conditions are satisfied:
  - (1) Shipment is prohibited by order of the U.S. Government and such order has general application to all shipments to the cooperating country.
  - (2) Payment may not be made by the bank under the terms of the letter of credit or payment instructions.
  - (3) **The supplier is unable to dispose of the commodities without loss.**
  - (4) The supplier tenders to USAID a negotiable warehouse receipt covering the commodities in question and presents to USAID such other documentation required by [§ 201.52](/cfr/22/201.52.md) as may be appropriate under the circumstances.
- (b) **Other settlement.** In lieu of accepting title to the commodities, USAID may negotiate with the supplier such other settlement as may be fair and equitable under the circumstances.

## Notes

### Authority

Authority: 22 U.S.C. 2381.

### Source

Source: 55 FR 34232, Aug. 22, 1990, unless otherwise noted.