IV. Grant Aid for Shipment of Recycled Goods 1. Overview (1) This grant aid provides support for shipping costs for useful and good quality second-hand goods (including fire engines, ambulances, hospital beds, wheelchairs, school desks and chairs, and temporary prefabricated housing) provided by Japanese local governments, medical and educational institutions, etc. These goods shall be handled by a Japanese NGO in the developing country and be delivered to a local NGO or local government, etc. In cases where these goods will be handled by local NGOs or local government in the country, the application shall be treated under the Grant Assistance for Grassroots Human Security Projects. In this case, the NGO or local government shall submit the application to the JODM in the country. (2) It is preferable, from the viewpoint of effective use of resources, that useful and good quality second-hand goods whose registered period of usage has recently expired be recycled based on requests from the grassroots level in developing countries. The aspect of encouraging ties among NGOs and local governments in Japan is also important for the purpose of this grant. 2. Limit of Grant Aid Each project shall have an upper limit of 10 million yen. 3. Eligible Expenses In principle expenses eligible for assistance shall be the shipping costs for second-hand goods (from the site in Japan where goods are provided to the site in developing countries where they are donated) and expenses prior to shipping for repairs and modification.*18 It should be noted that customs duties, customs clearance fees, import tariffs, and personnel costs for discharge of cargoes will, not be eligible for assistance. ----- *18 Expenses for minimum repairs and modification shall be covered. Concerning spare parts, special reason is required even for small budgets to be approved. ----- 4. Points to Note (1) In order to implement assistance for shipping costs, the following criteria must be satisfied: (i) offices of the Japanese NGO in the developing country should have the capacity to effectively distribute the goods to local governments and bodies within the country; and (ii) there should be no problems for maintaining or managing the assistance goods. (2) Recycled goods*19 must be a gift from the donor in Japan. And the goods must be delivered to the recipient and utilized free of charge.*20 ----- *19 Goods to be provided should be second hand. However, new goods are also available as long as they are donated. Expenses to repair the condition of broken items shall not be provided. *20 The final recipient should be a non-profit organization which implements social economic development projects on the grassroots level in the country. The donor of goods can be a for-profit organization or its personnel. ----- (3) The recipient organization, which will be responsible for receipt, distribution or usage of the goods, must be identified prior to the application. (4) It must be confirmed in advance that the recipient organization will be satisfied with the provision of second hand goods from Japan. (5) It is a requirement that the assistance goods (in particular second-hand vehicles) function and specifications are certified in accordance with the laws and regulations of the recipient country. (6) Expenses for shipment should be lower than the expenses for purchasing new goods of the same type in the recipient country. (7) Respecting the aspect of fairness, assistance which may lead to the benefit of particular enterprises should be avoided. For example, it is not permitted to ship goods with a particular logo or trademark. (8) In principle, with the exception of instances of emergency humanitarian assistance at a time of disaster, consumable goods or goods for personal use (e.g. food, used clothing and stationary, etc.) shall not be eligible for assistance. 5. Procedure from Application to Implementation (1) The Japanese NGO that will receive the goods shall submit an application for Grant Assistance for Japanese NGO Projects to MOFA or the JODM. (2) After both MOFA and the JODM have assessed the suitability of the application, a decision will be made at MOFA to approve the application and the NGO will be duly notified. (3) MOFA or the JODM will conclude a grant contract (G/C) with the NGO, and provide the required funds to the NGO. (4) The NGO shall ship the assistance goods to the recipient developing country. (5) The NGO shall submit a report to the JODM (or MOFA) concerning the status of utilization of the goods shipped.