Regulations for Bid Bond, Guarantee Bond and Other Guarantees Article 33-6

When conducting a procurement not covered by any treaty or agreement to which this nation is a party, an entity may prescribe in the tender documentation that, for globalized suppliers, the amount of bid bond, performance bond or warranty bond to be deposited by such suppliers may be reduced. The maximum amount of reduction shall be limited to 30% of the total amount that has to be deposited originally, and is additional to the reduction amount referred to in the preceding Article. This provision shall not be retroactive to any supplier that attains the aforesaid status after depositing the bonds. Where the incentive period ends before the expiry of a bond, the reduced amount needs not be deposited.The globalized supplier referred to in the preceding paragraph means any local supplier whose overseas contract value accumulated is not less than the threshold for the central government entities of this nation under the Agreement on Government Procurement (GPA) of the World Trade Organization (WTO), and the contract value has been ratified by the relevant central competent authorities and published in a database designated by the responsible entity in one year after the award of contract, and that the incentive period is still valid. The incentive period shall be one year commencing from the publishing date of the information to which the supplier is listed in the database as an globalized supplier.As regards the circumstances in which an amount may be reduced as referred to in paragraph 1, an entity shall prescribe in the tender documentation that, where there are circumstances in which a bid bond or guarantee bond shall not be released, the supplier shall make a supplemental deposit that equals the reduced portion of the unreleased amount. The same shall apply to a supplier whose globalized supplier status has been revoked by the relevant central competent authorities due to significant deficiencies in overseas contract performance, or to a supplier who has been published by any entity on the Government Gazette pursuant to paragraph 3 of Article 102 of the Act, and is still within the period prescribed in paragraph 1 of Article 103 of the Act.