Implementing Regulations of the Government Procurement Law of the People's Republic of China

Implementing Regulations of the Government Procurement Law of the People's Republic of China


Implementing Regulations of the Government Procurement Law of the People's Republic of China

Order of the State Council No.658

January 30, 2015

The Implementing Regulations of the Government Procurement Law of the People's Republic of China, adopted at the 75th executive meeting of the State Council on December 31, 2014, are hereby promulgated and shall come into force as of March 1, 2015.

Li Keqiang, Premier

Implementing Regulations of the Government Procurement Law of the People's Republic of China

Chapter I General Provisions

Article 1 The Implementing Regulations of the Government Procurement Law of the People's Republic of China (hereinafter referred to as the "Regulations") are formulated in accordance with the Government Procurement Law of the People's Republic of China (hereinafter referred to as the "Government Procurement Law").

Article 2 Fiscal funds as mentioned in Article 2 of the Government Procurement Law refer to the funds included in the budget management.
Loan funds that are repaid by means of fiscal funds are deemed as fiscal funds.
Where state departments, public institutions and incorporations use both fiscal funds and non-fiscal funds to carry out the procurement items, the Government Procurement Law and the Regulations shall apply to the items procured using fiscal funds as well as items using both fiscal funds and non-fiscal funds which cannot be separated from each other.
Services as mentioned in Article 2 of the Government Procurement Law shall include services necessary for the government and public services provided to the public by the government.

Article 3 The catalogue for centralized government procurement shall include procurement items of centralized procurement agency and centralized procurement items by department.
Procurement items with unified standards (such as technical standards and service standards) and which are commonly used by procuring entities shall be classified as procurement items of centralized procurement agency; procurement items used by the department or system of procuring entities exclusively for special purposes on account of their business which may be procured in a centralized manner shall be classified as centralized procurement items by department.

Article 4 Centralized procurement as mentioned in the Government Procurement Law shall refer to the behaviors that a procuring entity entrusts the items included in the catalogue for centralized government procurement to a centralized procurement agency for procurement or carries out centralized procurement items by department; decentralized procurement as mentioned in the Government Procurement Law shall refer to the behaviors that a procuring entity conducts by itself the procurement items that are not included in the catalogue for centralized government procurement and above the procurement thresholds or entrusts a centralized procurement agency to conduct such procurement by itself.

Article 5 The people's government of a province, autonomous region or municipality directly under the Central Government as well as the organization with proper authority may determine the centralized procurement catalogues and the procurement thresholds applicable to the province, cities divided into districts and counties of its own administrative region based on actual conditions.

Article 6 The finance department under the State Council shall, according to the national economic and social development polices, prepare the government procurement policies in concert with the related departments of the State Council, formulate procurement demand standards, reserved procurement share, price review preference, procurement privilege, and take other necessary measures, so as to realize energy saving, protect the environment, support underdeveloped areas and minority areas, promote the development of small and medium-sized enterprises and achieve other objectives.

Article 7 The Law of the People's Republic of China on Bid Invitation and Bidding and the Implementing Regulations of the Law of the People's Republic of China on Bid Invitation and Bidding shall apply to the government procurement of engineering works and the commodities and services related to engineering construction taking the form of bidding; the Government Procurement Law and the Regulations shall also apply to other engineering works and related engineering construction taking other procurement form.
For the purpose of the preceding paragraph, engineering shall refer to construction engineering which includes the new construction, reconstruction and extension of buildings and structures and the related decoration, dismantlement and repair, etc.; commodities related to engineering construction shall refer to the equipment and materials, etc. which are integral parts of the engineering and necessary for the fundamental functions of the engineering; services related to engineering construction shall refer to the investigation, design, supervision and other services necessary for the completion of the engineering.
Government procurement of engineering works and the commodities and services related to engineering construction shall be subject to government procurement policies.

Article 8 Information of government procurement items shall be published at the media designated by the finance department of a people's government at or above provincial level. If the procurement item budget meets the standard specified by the finance department under the State Council, the information of government procurement items shall be published at the media designated by the finance department under the State Council.

Article 9 The procurement personnel and related personnel shall not participate in a government procurement activity if they have any of the following interest relationships with the supplier:
1. having labor relationships with the supplier within three years before they participate in the procurement activity;
2. acting as the directors or supervisors of the supplier with three years before they participate in the procurement activity;
3. being the controlling shareholders or actual controllers of the supplier within three years before they participate in the procurement activity;
4. being the spouse, lineal relative, collateral relative by blood (within three generations) or in-law of the supplier's legal representatives or persons in charge; or
5. having other relationships with the supplier which may affect the fairness and impartiality of the government procurement activity.
If the supplier thinks that the procurement personnel and related personnel have interest relationships with other suppliers, such supplier may file a written withdrawal request to the procuring entity or the procurement agency, together with a statement of the grounds for such withdrawal. The procuring entity or the procurement agency shall inquire the personnel whose withdrawal is requested in a timely manner, and such personnel having interest relationships with other suppliers shall avoid participating in the government procurement.

Article 10 The State shall implement unified standards for the construction of e-commerce platform for government procurement and promote the progress of electronic government procurement activities by using information networks.

Chapter II Parties to Government Procurement

Article 11 In government procurement activities, procuring entities shall safeguard national interests and public interests, be impartial and honest as well as in good faith, enforce the government procurement policies, establish the internal control system for government procurement, practice strict economy and determine procurement demands in a scientific and reasonable manner.
Any procuring entity shall not ask for or accept gifts, kickbacks or other commodities and services irrelevant to the procurement from any supplier.

Article 12 Procurement agencies as mentioned in the Government Procurement Law shall refer to the centralized procurement agencies and other procurement agencies other than the centralized procurement agencies.
A centralized procurement agency refers to a legal person of non-profit public institution established by a people's government at or above the level of city divided into districts in accordance with the law acting as the agency of centralized procurement items. A centralized procurement agency shall prepare the implementation program for the centralized procurement items, specify the procurement procedures and organize government procurement activities according to the procuring entity's entrustment, and shall not sub-entrust the centralized procurement items to other person. Procurement agencies other than centralized procurement agencies refer to the social intermediaries conducting procurement agency business.

Article 13 A procurement agency shall establish a perfect internal supervision and management system for government procurement and have the evaluation conditions and facilities necessary for the government procurement.
A procurement agency shall improve the specialized service level related to procurement demand confirmation, preparation of bidding documents, negotiation documents and inquiry notices, contract text conclusion and procurement procedure optimization, and shall timely organize the signing of government procurement contract between the procuring entity and the supplier winning the bid or the conclusive supplier within the specified time according to the procuring entity's entrustment and timely assist the procuring entity to check and accept the procurement items.

Article 14 A procurement agency shall not acquire the government procurement agency business by using improper means, and shall not conduct malicious collusion with the procuring entity and the supplier to control government procurement.
The staff of a procurement agency shall not accept the fete, travelling or entertainment activities organized by the procurement party or the supplier, and shall not accept any gift, cash, securities and other things from the procurement party or the supplier, and shall not ask the procurement party or the supplier for reimbursement of expenses which shall be borne by the procurement agency itself.

Article 15 Procurement parties and procurement agencies shall prepare procurement documents according to government procurement policies, budgets and demands.
The procurement demands shall meet laws and regulations as well as the requirements specified under the government procurement policies in respects of technique, service and safety, etc.
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