Nov 28,2007
Chapter I General Provisions
Article 1 This Law is enacted for purposes of regulating government procurement activities, improving efficiency in the use of government procurement funds, safeguarding the interests of the State and the public, protecting the legitimate rights and interests of the parties to government procurements and promoting honest and clean government.
Article 2 This Law is applicable to government procurement activities conducted within the territory of the People's Republic of China.
For purposes of this Law, "Government Procurement" refers to the purchasing activities conducted with fiscal funds by government departments, institutions and public organizations at all levels, where the goods, construction and services concerned are in the centralized procuremnt catalogue complied in accordance with law or the value of the goods, construction or services exceeds the respective prescribed procurement thresholds.
The centralized procurement catalogue and the prescribed procurement thresholds mentioned above shall be complied within the limits of powers defined by this Law.
For purposes of this Law, "Procurement" refers to activities conducted by means of contract for the acquirement of goods, construction or services for consideration, including but not limited to purchase, lease, entrustment and employment.
For purposes of this Law, "Good" refer to objects of every kind and form, including but not limited to raw and processed materials, fuel, equipment and products.
For purposes of this Law, "Construction" refers to all construction projects, including construction, reconstruction, expansion, fitting up ,demolition and repair and renovation of a building or structure.
For Purposes of this Law, "Services" refer to any object of government procurement other than goods and construction.
Article 3 The principles of openness and transparency, fair competition, impartiality and good faith shall be adhered to in government procurement activities.
Article 4 Where public invitation or invited bidding is adopted for government procurement of construction, the Law on Bid Invitation and Bidding shall apply.
Article 5 No entity or individual may, by any means, deny or restrict free access by outside suppliers to the local markets or the market of the same industry for government procurement.
Article 6 Government procurement shall be conducted strictly in accordance with the budget approved.
Article 7 Government procurement shall be conducted by both centralized and decentralized procurement. The items of centralized Procurement shall be determined in accordance with the centralized procurement catalogue published by people's governments at or above the provincial level.
The centralized procurement catalogue for government procurement items that come under the central budget shall be determined and published by the State Council; the centralized procurement catalogue for government procurement items that come under the local budgets shall be determined and published by the people's governments of provinces, autonomous regions or municipalities directly under the Central Government the departments authorized by them.
Centralized procurement shall be made for government procurement items that are included in the centralized procurement catalogue.
Article 8 The thresholds for government procurement items that come under the central budget shall be prescribed and published by the State Council; the thresholds for items that come under local budgets shall be prescribed and published by the people's government of provinces, autonomous regions or municipalities directly under the Central Government or the department authorized by them.
Article 9 Government procurement shall be conducted in such a manner as to facilitate achievement of the goals designed by State policies for economic and social development, including but not limited to environmental protection, assistance to underdeveloped or ethnic minority areas, and promotion of the growth of small and medium-sized enterprises.
Article 10 The government shall procure domestic good, construction and services, except in one of the following situations:
(1)where the goods, construction or services needed are not available within the territory of the People's Republic of China or ,though available, cannot be acquired on reasonable commercial terms;
(2)where the items to be procured are for use abroad;
(3)where otherwise provided for by other laws and administrative regulations.
The definitions for the domestic goods, construction or services mentioned in the preceding paragraph shall be applied in accordance with the relevant regulations of the State Council.
Article 11 Information ,with the exception of information related to business secrets, regarding government procurements shall be announced to the public in a timely manner through the media designated by the department for supervision over government procurement.
Article 12 Where in government procurement the procuring person or the person concerned has an interest in the suppliers, he shall withdraw from the procurement proceeding. Where a supplier believes that the person doing the procuring or the person concerned has an interest in other suppliers, it may apply for withdrawal of the said person.
The person concerned as mentioned in the preceding paragraph means any of the members of the bid evaluation committee for procurement through public invitation, of the negotiation team for procurement through competitive negotiations, or the inquiry team for procurement through inquiry of quotations.
Article 13 The finance departments of the governments at all levels are departments for supervision over government procurement, performing the duty of supervision over government procurement activities in accordance with law.
The departments concerned in the government at all levels shall, in accordance with law, perform the duty of supervision over activities related to government procurement.
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