Regulations for the Implementation of Price Preference by Local Suppliers Article 5

In conducting a particular procurement, an entity shall specify in the tender documentation the specific item of the subject of the procurement to which the preferential bid price is applicable, and prescribe that all suppliers specify the bid price of such item in their tenders.Where a foreign supplier’s bid is the lowest tender and its bid price satisfies the principle of contract award for the lowest tender prescribed in paragraph 1 of Article 52 of the Act, the preferential bid price which is applicable to local suppliers shall be calculated by the bid price of said foreign supplier for the applicable item referred to in the preceding paragraph times the preferential rate. This provision does not apply where the bid price of the local supplier for the said item does not exceed that of the foreign supplier for the same item.In the circumstance set out in the preceding paragraph, where it is a property of the local supplier which falls within the scope of application specified in tender documentation, the local value-added thereof must reach 50% of the price. In case that it is a construction work or service, it shall be supplied locally.Where the bid price of the foreign supplier referred to in paragraph 2 is denominated in a foreign currency, it shall be converted to New Taiwan Dollars based on the closing spot selling rate quoted by the Bank of Taiwan on the business day prior to the date of award, and the applicable preferential price shall be calculated in New Taiwan Dollars.